# **WHA-FAS-2025-10-21** ## --- ## Module 1 — Basic Information ### Meeting Overview **Meeting Title:** Whatcom County Council Finance and Administrative Services Committee **Meeting Duration:** 15m 13s **Key Officials Present:** - Todd Donovan (Committee Chair) - Tyler Byrd (Committee Member) - Barry Buchanan (Committee Member) **Location:** County Courthouse, Council Chambers (Hybrid) **Meeting Date:** October 21, 2025 **Meeting Time:** 11:00 AM **Staff Present:** - Cathy Halka, Council Clerk - Kayla Schott-Bresler, Executive Office - Aly Pennucci, Executive Office - Andrew Hester, Public Works Department - Bennett Knox, Parks and Recreation Director --- ## Module 2 — Agenda Overview **Total Agenda Items:** 9 ### Consent Agenda Items (3) 1. **AB2025-727** — Interlocal grant agreement with Washington State Department of Commerce for elevation grants ($600,000) 2. **AB2025-728** — Contract amendment with Opportunity Council for Housing and Essential Needs Program ($1,813,929) 3. **AB2025-730** — Three-year contract with Correctional Healthcare Partners Inc. for jail healthcare services ($22,896,000) ### Discussion Items (2) 1. **AB2025-714** — River Road property lease declaration (Flood Control Zone District) 2. **AB2025-716** — East Main Street property lease declaration (Flood Control Zone District) ### Action Items (4) 1. **AB2025-678** — Public Health Safety Justice Facility budget amendment 2. **AB2025-680** — Flood Control Zone District budget amendment ($49,400) 3. **AB2025-682** — Silver Lake Lagoon Project Fund establishment 4. **AB2025-685** — County budget amendment ($517,671) --- ## Module 3 — Voting Record ### Consent Agenda Items 1 & 2 **Motion:** Recommend approval of AB2025-727 and AB2025-728 **Result:** PASSED (3-0) - Donovan: YES - Byrd: YES - Buchanan: YES ### Jail Healthcare Contract Hold **Motion:** Hold AB2025-730 until November 5th **Result:** PASSED (3-0) - Donovan: YES - Byrd: YES - Buchanan: YES ### Public Health Facility Budget Amendment **Motion:** Recommend adoption of substitute ordinance AB2025-678 **Result:** PASSED (3-0) - Donovan: YES - Byrd: YES - Buchanan: YES ### Flood Control Budget Amendment **Motion:** Recommend approval of AB2025-680 **Result:** PASSED (3-0) - Byrd: YES (moved) - Donovan: YES - Buchanan: YES ### Silver Lake Lagoon Project Fund **Motion:** Recommend adoption of AB2025-682 **Result:** PASSED (3-0) - Buchanan: YES (moved) - Donovan: YES - Byrd: YES ### County Budget Amendment **Motion:** Recommend adoption of AB2025-685 **Result:** PASSED (3-0) - Buchanan: YES (moved) - Donovan: YES - Byrd: YES **Total Actions:** 6 **Passed:** 6 **Failed:** 0 --- ## Module 4 — Financial Summary ### Financial Actions by Category **Budget & Finance** - AB2025-678: Public Health Safety Justice Facility amendment (~$2.9 million for wetlands mitigation) - AB2025-680: Flood Control Zone District budget amendment ($49,400) - AB2025-685: County budget amendment ($517,671) **Social Services** - AB2025-728: Housing and Essential Needs Program contract amendment ($1,813,929 amendment, $5,223,812 total) - AB2025-730: Jail healthcare services contract (held) ($22,896,000 over three years) **Parks & Recreation** - AB2025-682: Silver Lake Lagoon Project Fund establishment (amount not specified) **Environmental** - AB2025-727: Elevation grants match funding ($600,000) ### Property Leases (Discussion Only) - River Road property lease (20 acres, minimum bid $4,180) - East Main Street property lease (18 acres, minimum bid $3,656) **Total Financial Impact Approved:** ~$3.96 million in various budget amendments and contracts **Largest Item Held:** $22.9 million jail healthcare contract --- ## Module 5 — Policy Topics ### Primary Policy Domain: Budget & Finance **Significance:** Committee processed multiple budget amendments and major service contracts **Key Items:** - Public Health Safety Justice Facility wetlands mitigation funding - Flood control zone budget adjustments - Healthcare services contract review process ### Secondary Policy Domain: Social Services **Healthcare Services:** Major jail healthcare contract consideration with cost savings tracking requirements ### Secondary Policy Domain: Housing **Housing Support:** Housing and Essential Needs Program contract expansion ### Secondary Policy Domain: Parks & Recreation **Infrastructure:** Silver Lake Lagoon bridge safety issue requiring new project fund ### Secondary Policy Domain: Environmental **Flood Control:** Property acquisitions and leasing for flood-prone areas and future infrastructure projects **Cross-Cutting Themes:** - Public safety facility development - Flood risk management - Healthcare cost containment - Property management efficiency --- ## Module 6 — Public Engagement ### Public Participation Summary **Public Comment Period:** None scheduled for committee meeting **Public Input Opportunities:** None during this session **Future Public Engagement:** - Public hearings scheduled for November for property lease declarations - River Road lease public hearing (second November council meeting) - East Main Street lease public hearing (second November council meeting) ### Accessibility and Notice - Hybrid meeting format (in-person and remote) - Remote participation via website and phone - 96-hour advance notice required for special assistance - Meeting properly noticed and recorded **Public Transparency Measures:** - All votes recorded with individual member positions - Financial amounts clearly stated - Contract details discussed in public session - Future meeting dates provided for continued items **Notable:** Committee chair noted expectation for longer discussion on jail healthcare contract, indicating public interest in the topic. --- ## Module 7 — Notable Issues ### Major Issue: Jail Healthcare Contract Delay **Background:** $22.9 million three-year contract with Correctional Healthcare Partners held until November 5th **Key Concerns:** - Medical records transition timing on New Year's Day - Operational coordination with Sheriff's Office - Cost savings tracking mechanisms requested **Quote:** Kayla Schott-Bresler: "We are sorting out an operational issue related to the timing of transitioning the medical records on New Year's day. So we're working closely with the sheriff's office, and need a couple more weeks to sort out those details with CHP." **Accountability Measures Requested:** - Tracking of extraordinary medical costs - Monitoring of pharmacy expenses - Risk liability assessment - Annual review of contract performance ### Wetlands Mitigation for New Jail **Significant Expense:** $2.9 million appropriation for wetlands mitigation **Quote:** Kayla Schott-Bresler explained this "funding would be used to purchase essentially, wetlands mitigation, a wetlands mitigation opportunity for the construction of the new jail." **Context:** Part of new public safety sales tax revenue utilization ### Property Management Strategy **Flood Control District Leasing:** Two agricultural properties generating revenue while maintaining flood management capacity **Strategic Approach:** Leasing previously acquired flood-prone properties for agricultural use while preserving options for future flood infrastructure projects --- ## Module 8 — Agreements & Contracts ### Approved Contracts **AB2025-728 — Housing and Essential Needs Program** - **Contractor:** Opportunity Council - **Value:** $1,813,929 (amendment), $5,223,812 (total amended contract) - **Status:** Recommended for authorization by consent - **Purpose:** Administration of Housing and Essential Needs Program **AB2025-727 — Elevation Grants Agreement** - **Partner:** Washington State Department of Commerce - **Value:** $600,000 - **Status:** Recommended for authorization by consent - **Purpose:** Reimburse 5% match obligation for elevation grants - **Special Note:** Council acting as Flood Control Zone District Board ### Held Contracts **AB2025-730 — Jail Healthcare Services** - **Contractor:** Correctional Healthcare Partners Inc. - **Value:** $22,896,000 (three-year term) - **Status:** Held until November 5th - **Issues:** Medical records transition timing, operational coordination - **Oversight:** Sheriff's Office Correctional Health Services Manager position ### Future Property Leases **River Road Property (AB2025-714)** - **Size:** 20 acres - **Minimum Bid:** $4,180 - **Term:** 5 years - **Use:** Agricultural (haying or annual crops) - **History:** Continuously leased since 2008 **East Main Street Property (AB2025-716)** - **Size:** 18 acres - **Minimum Bid:** $3,656 - **Term:** 5 years - **Use:** Agricultural - **Background:** Recently acquired flood buyout properties --- ## Module 9 — Follow-up & Next Steps ### Immediate Actions Required **November 5th Finance Committee Meeting:** - Review revised jail healthcare contract (AB2025-730) - Address medical records transition issues - Present cost tracking mechanisms **Tonight's Council Meeting:** - Introduction of River Road lease resolution (AB2025-713) - Introduction of East Main Street lease resolution (AB2025-715) - Final consideration of approved budget amendments ### Upcoming Public Processes **November Council Meetings:** - Public hearings for both property lease declarations - Final approval votes on lease authorizations - Property bidding process through Finance Department ### Contract Implementation Timeline **January 2026 Targets:** - New jail healthcare contract effective January 1st - Agricultural lease awards completed - Silver Lake Lagoon project analysis begun ### Ongoing Monitoring Requirements **Healthcare Contract Oversight:** - Annual review of cost savings performance - Tracking of extraordinary medical costs - Assessment of risk liability impacts - Per diem rate adjustments for interlocal partners **Quote:** Council Member Scanlon: "So let's just put a marker for that council that we come back and review this work. I fully support this. It makes sense to consolidate all of our contracts and then to see in a year or so, how are things going?" ### Administrative Notes **Meeting Efficiency:** Committee completed agenda in 15 minutes, enabling early start of Public Works Committee **Process Note:** Committee chair indicated expectation of longer discussion on jail healthcare item, suggesting significant public interest in healthcare cost management. --- ## Module 10 — Context & Significance ### Civic Significance This Finance Committee meeting demonstrated efficient municipal governance while addressing substantial public investments. The committee processed nearly $26 million in contracts and budget amendments in just 15 minutes, reflecting both prepared staff work and clear committee priorities. ### Key Governance Themes **Fiscal Responsibility:** The committee's careful attention to the jail healthcare contract, particularly cost tracking mechanisms, illustrates commitment to accountability in major service contracts. Council Member Scanlon's insistence on monitoring cost savings shows elected officials taking stewardship seriously. **Public Safety Infrastructure:** The $2.9 million wetlands mitigation appropriation represents a significant step in the new jail construction process, funded through dedicated public safety sales tax revenue. **Dual-Role Governance:** Multiple items required the Council to act as the Flood Control Zone District Board of Supervisors, illustrating the complex governmental structure managing regional flood issues. ### Policy Integration **Flood Management Strategy:** The property lease discussions revealed sophisticated flood management policy—acquiring flood-prone properties for public safety while generating revenue through agricultural leasing until needed for infrastructure projects. **Healthcare Cost Management:** The jail healthcare contract delay, while procedurally necessary, demonstrates the complexity of transitioning essential services and the importance of operational coordination between county departments. ### Regional Impact **Housing Support:** The Housing and Essential Needs Program contract amendment of $1.8 million reflects ongoing commitment to social services despite fiscal constraints. **Environmental Stewardship:** The elevation grants partnership with state commerce demonstrates multi-level government cooperation on climate resilience. ### Democratic Process The meeting exemplified effective committee governance—brief but thorough, with clear accountability measures requested by elected officials. The committee's efficiency allowed early commencement of the next committee meeting, maximizing use of public officials' time while maintaining transparency through recorded votes and public discussion of all financial decisions.

### Meeting Overview The Whatcom County Council Finance and Administrative Services Committee met on October 21, 2025, with all three committee members present. The brief 15-minute meeting focused on routine budget matters, contract approvals, and property lease discussions, with the major item being a $22.9 million jail healthcare contract that was held for further review. ### Key Terms and Concepts **Consent Agenda:** Items that are considered routine and can be approved together without individual discussion, unless a committee member requests separate consideration. **Flood Control Zone District:** A special district within Whatcom County that manages flood control infrastructure and properties, with the County Council serving as its Board of Supervisors. **Agricultural Lease:** A rental agreement allowing farmers to use county-owned land for crop production or hay farming, typically generating revenue while maintaining the land. **Wetlands Mitigation:** The process of creating, restoring, or preserving wetlands to offset unavoidable impacts from development projects, required for environmental compliance. **Project Budget Amendment:** A formal change to allocated funding for a specific project, requiring council approval when amounts exceed certain thresholds. **Correctional Healthcare Partners (CHP):** A private company contracted to provide medical and nursing services to inmates in county detention facilities. **Public Safety Sales Tax:** A voter-approved tax specifically dedicated to funding public safety infrastructure and services, including the new jail facility. ### Key People at This Meeting | Name | Role / Affiliation | |---|---| | Todd Donovan | Committee Chair, County Council Member | | Tyler Byrd | Committee Member, County Council Member District 1 | | Barry Buchanan | Committee Member, County Council Member | | Kayla Schott-Bresler | Deputy Executive, Whatcom County | | Aly Pennucci | Deputy Executive, Whatcom County | | Andrew Hester | Public Works Department Staff | | Bennett Knox | Parks and Recreation Director | ### Background Context This committee serves as the County Council's financial oversight body, reviewing contracts, budget amendments, and property transactions before they go to the full council. The meeting occurred during the county's preparation for its new jail facility, which requires significant infrastructure planning and environmental compliance. The flood control properties discussed represent the county's ongoing flood mitigation strategy, particularly relevant given recent flood events in the region. These properties are often acquired through federal disaster funds (FEMA) or state ecology grants after flooding damages homes, then leased for agricultural use to generate revenue while serving flood management purposes. ### What Happened — The Short Version The committee quickly approved two consent items: a $600,000 grant agreement for flood control projects and a $5.2 million contract amendment with Opportunity Council for housing services. However, they held the major item—a $22.9 million, three-year jail healthcare contract—until November 5th due to unresolved issues with medical records transition timing. The committee discussed two agricultural property leases on River Road and East Main Street that will go out for competitive bidding. They also approved four budget-related items totaling over $3.5 million, including $2.9 million for wetlands mitigation for the new jail and establishment of a fund to address safety issues with the Silver Lake lagoon bridge. ### What to Watch Next • November 5th Finance Committee meeting will reconsider the $22.9 million jail healthcare contract once operational issues are resolved • Public hearings scheduled for the second November council meeting on the two agricultural property leases • Full council votes tonight (October 21st) on the approved budget amendments and Silver Lake bridge fund ---

**Q:** What was the total value of the jail healthcare contract that was held? **A:** $22,896,000 over three years with Correctional Healthcare Partners Inc. **Q:** Why was the jail healthcare contract held until November 5th? **A:** The county needed to resolve operational issues related to timing of medical records transition on New Year's Day. **Q:** How many committee members voted, and what were the vote results? **A:** Three members voted (Donovan, Byrd, Buchanan), with all items receiving unanimous 3-0 approval or holds. **Q:** What is the minimum bid amount for the River Road property lease? **A:** $4,180 for approximately 20 acres of agricultural land. **Q:** What is the minimum bid amount for the East Main Street property lease? **A:** $3,656 for approximately 18 acres composed of recently purchased flood-prone properties. **Q:** How long has the River Road property been leased for agriculture? **A:** Since 2008, making this a continuation of an existing agricultural lease arrangement. **Q:** What will the $2.9 million in AB2025-678 be used for? **A:** Purchasing wetlands mitigation for the construction of the new jail facility. **Q:** What funding source is being used for the wetlands mitigation purchase? **A:** Revenue from the new public safety sales tax approved by voters. **Q:** What safety issue is the Silver Lake lagoon bridge fund addressing? **A:** A maintenance issue that creates a public safety hazard for park visitors accessing the bridge structure. **Q:** Who serves as the Flood Control Zone District Board of Supervisors? **A:** The Whatcom County Council members acting in their capacity as the district board. **Q:** What types of crops are allowed under the agricultural leases? **A:** Annual crops or hay farming, with specific regulations the lessees must follow. **Q:** How long will the agricultural lease terms be? **A:** Five years for both the River Road and East Main Street properties. **Q:** What happens next with the property leases after council approval? **A:** They go through a competitive bid process administered by the Finance Department. **Q:** When do the current agricultural leases expire? **A:** The River Road lease is expiring, while East Main Street properties haven't been leased yet. **Q:** What was the total amount of the budget amendment in AB2025-685? **A:** $517,671 for various county budget adjustments. **Q:** What was the flood control zone budget amendment amount? **A:** $49,400 for the 2025 Flood Control Zone District and Subzones Budget. **Q:** When will the new agricultural leases likely start? **A:** January 2026, pending council approval and completion of the bid process. **Q:** What will Council Member Scanlon be tracking regarding the healthcare contract? **A:** Cost savings mentioned in the contract and requesting a progress report within a year. **Q:** How will the jail healthcare contract affect interlocal agreements? **A:** It will impact per diem rates charged to cities and expense-sharing agreements. **Q:** What position will help monitor the healthcare contract performance? **A:** A Correctional Health Services Manager within the Sheriff's Office. ---