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JEFFERSON COUNTY
BOARD OF COUNTY COMMISSIONERS
REGULAR AGENDA REQUEST
TO: Board of County Commissioners
FROM: Philip Morley, County AdminiMtrator:
DATE: April 9, 2012
RE: Interlocal Agreement Regarding Revenue to Service Bonded Indebteduess
for Jeff Com
STATEMENT OF ISSUE:
The attached Interloca1 Agreement is between all seven parties affiliated with JeOCom. The
Agreement provides that the l/lOth of 1 % sales tax collected for emergency communications in
Jefferson County per RCW 82.14.420, be dedicated first to pay JeOCom bond debt previously
inClllTed by the County on behalf of JeOCom. This includes three bond issues: one from 2007
and two from 2011. Under the proposed Interloca1 Agreement, all three bonds will be paid off
using the sales tax, with the last bond payment being due in 2030.
FISCAL IMPACT:
This Interloca1 Agreement ensures that there is guaranteed annual revenue stream to payoff
bonds used for capital upgrades of the JeOCom emergency management system. Any excess
sales tax collected will be transferred to JeOCom for use by JeOCom as allowed by RCW.
RECOMMENDATION:
Sign the proposed Interloca1 Agreement dedicating emergency communications sales tax to pay
bond debt with excess distributed to JeOCom.
REVIEWED BY:
~ /3I.Y.z-
Date
Interloca1 Agreement Regarding Revenue to Service Bonded Indebtedness
for JeffCom
WHEREAS, this Interlocal Agreement is entered into for the mutual benefit of
Jefferson County (County), the City of Port Townsend (City), Jefferson County
Fire District 1 East Jefferson Fire & Rescue, Jefferson County Fire District 2
Quilcene, Jefferson County Fire District 3 Port Ludlow Fire & Rescue, Jefferson
County Fire District 4 Brinnon; and Jefferson County Fire District 5 Discovery
Bay, hereinafter "the parties," and is specifically authorized by the Interlocal
Cooperation Act set forth in Chapter 39.34 of the Revised Code of Washington;
and
WHEREAS, in 2007, the parties entered into an Interlocal Agreement
Authorizing Jeff Com 911 Communications to provide Emergency Dispatching,
Communications and Other Services; and
WHEREAS, the parties, through Jeff Com, recognize the need to upgrade the
infrastructure of the radio and communications systems when needed; and
WHEREAS, in recognition that the upgrades are vital to the fire and law
enforcement agencies, the parties agree to fund and repay loans and bonds
equitably among the five fire districts, County and City of Port Townsend; and
WHEREAS, Historically Jefferson County has proved financing for the
infrastructure and software upgrades through Limited Tax General Obligation
Bonds; and the parties wish to provide a guaranteed revenue stream for the life
of the bonds as outlined above; and
WHEREAS, to date Jefferson County has provided bond financing in 2007 and
2011 for Jeff Com's Radio Tower Project and Software Upgrades to Law and Fire
Records Management Systems.
NOW, THEREFORE, in consideration of the mutual covenants contained
herein, it is hereby agreed as follows:
1. The Bonded indebtedness for all bonds financed through Jefferson
County on behalf of JeffCom as of 12-31-11 is:
March 26, 2012
Bond
Average Annual Debt
Payment
$186,300
Bond Paid-off
Bond 1:
2007 Bond for Tower Site
$2,500,000
Bond 2:
2011 Bond for Tower Site
$880,000
Bond 3:
2011 Special Purpose
Bond for Law/Fire
RMS Systems
$328,000
2026
$39,510 interest only
until 2021 then
$114,510
$50,571
2030
2018
2. Revenue to service 2007 and 2011 bonded indebtedness for the Tower
Site Enhancement project and the 2011 bonded indebtedness for the
JeffCom Radio System, Law and Fire Records Management System.
The parties agree that the revenue of the 1/ 10th of 1% Sales Tax pursuant
to RCW 82.14.420 collected in Jefferson County shall be first dedicated to
pay the annual debt service for the 2007 (Bond #1) and for 2011 (Bond #2)
for the JeffCom Radio Tower System, and also for the annual payment on
the 2011 RMS bonds (Bond #3). The Treasurer will collect the sales tax
revenue into Jefferson County Fund 119 and process semi-annual
payments for bond principal and interest.
3. Budget for Fund 119 - JeffCom Bond payment fund
i) Each year an annual budget will be prepared for fund 119 estimating
Sales Tax revenues and debt service payments.
il) The required fund balance of Fund 119 will be 5% of total annual
bond debt for cash flow purposes. The County Treasurer shall retain
in Fund 119 each month an amount equal to 1/12 of the total annual
debt service payment amounts, depositing the monthly revenue in
excess thereof into Jeff Com's operating fund or account.
ill) If in October of each year, the sales tax revenue received is below the
budgeted amount needed to make the periodic debt service payments,
the County Treasurer will reduce the transfer to Jeff Com to reflect the
decrease.
iv) All such funds must be used as specified in RCW 82.14.420.
4. Term. This Interloca1 Agreement shall be effective 90 days after the date of
filing as provided by RCW 39.34.040, and shall remain effective until the
2007 and 2011 bonded indebtedness for the Jeff Com Radio System and the
March 26, 2012
2011 bonded indebtedness for the Jeff Com RMS and MRMS are all paid in
full and retired.
5. Severability. If any provision of this Agreement or the application thereof
to any person or circumstances is held invalid, such invalidity shall not
affect other provisions or applications of the Agreement, which can be given
effect without the invalid provision or application, and to this end the
provisions of the Agreement are declared to be severable.
6. Filing. As provided by RCW 39.34.040, this Agreement shall be filed prior
to its entry in force with various entities as required by law.
7. Execution of Agreement. Each party to this Agreement may bind itself
with all other parties to this Agreement by signing a duplicate original of
this Agreement and submitting such signed duplicate original to County. It
is understood that such execution shall not require that one original
Agreement be signed by all parties to this Agreement, but that there will be
several duplicate originals signed by each party to this Agreement. The
purpose of this provision is to facilitate the signing of the Agreement and to
avoid the undue delay in the execution of the Agreement. This Agreement,
however, shall be executed on behalf of each member by its authorized
representative and pursuant to the appropriate motion, resolution or
ordinance of each local government or other entity as the case may be.
Each party to this agreement shall be bound to it as of the date it is signed
by that member.
8. Ad".t"fAtration. The terms and conditions agreed to by the parties in
furtherance of this Agreement shall be administered by the Jefferson
County Treasurer or his or her designee. Any party to this Agreement
aggrieved by a decision of the Jefferson County Treasurer may appeal that
decision pursuant to section ten of this agreement.
9. Acquired property. All purchases to include towers, radio equipment,
LERMS and FRMS system (including all equipment, hardware and software)
shall become upon delivery and installation the personal property of
Jeff Com, and be included in the schedule of assets of Jeff Com. No LERMS
or FRMS system assets shall be discarded, replaced or discontinued in use
by any party to this Agreement without the express written consent of the
Jeff Com 9-1-1 Administrative Board. Upgrades, fixes and other technical
improvements to the hardware and software purchased in 2011 as well as
any changes, improvements or fixes installed in or made part of the
personal property as part of or during the annual maintenance of said
personal property shall not be considered to constitute the discarding,
replacing or discontinuing of a system for purposes of this section.
March 26, 2012
10. Dispute Resolution: If any party is aggrieved by another a written
grievance may be filed with the Executive Director within 14 days of the
occurrence and the implementation of the action shall be stayed until resolved
as described herein. Any such grievances should be resolved as promptly and
amicably as reasonably practicable, by conciliation between the Grievant and
the Aggrieved. If such conciliation is not successful or the grievance is not
abandoned within 15 business days, the matter shall proceed to mediation
with one disinterested mediator chosen jointly by the parties, and the cost of
the mediator shall be borne by the grievant. If such mediation is not
successful within 25 business days, then arbitration before one disinterested
arbitrator shall take place. The arbitrator may be jointly agreed to, or chosen
from a list provided by the American Arbitration Association or other jointly
acceptable dispute resolution firm or agency. The non-prevai1ing party in
arbitration shall pay all of the arbitrator's fees and charges. The arbitrator
shall be empowered to determine the .prevailing party" if any. If neither party is
deemed to be the prevailing party then each party shall bear its own portion of
the arbitrator's fees and charges. In any event each party involved in the
dispute resolution shall bear their own attorneys fees and other costs. All time
periods called for in the sections may be extended by mutual written
agreement.
March 26, 2012
CITY OF PORT TOWNSEND (for Port Townsend Police Department):
Date:
CITY MANAGER
ATTEST:
City Clerk
March 26, 2012
JEFFERSON COUNTY (for Jefferson County Sheriffs Office):
Commissioner
Commissioner
Commissioner
ATTEST:
Clerk of Board of County Commissioners
APPROVED AS TO FORM:
dL
David Alvarez, Deputy Pro
March 26, 2012
4J3JZblL
uting Attorney
Date:
Jefferson County Sheriff
JEFFERSON COUNTY FIRE DISTRICT # 1 (East Jefferson Fire & Rescue):
Date:
Commissioner
Commissioner
Commissioner
ATTEST:
District Secretary
March 26, 2012
JEFFERSON COUNTY FIRE DISTRICT #2 (Quilcene):
Date:
Commissioner
Commissioner
Commissioner
ATTEST:
District Secretary
March 26, 2012
JEFFERSON COUNTY FIRE DISTRICT #3 (port Ludlow):
Date:
Commissioner
Commissioner
Commissioner
ATTEST:
District Secretary
March 26, 2012
JEFFERSON COUNTY FIRE DISTRICT #4 (Brinnon):
Date:
Commissioner
Commissioner
Commissioner
ATTEST:
District Secretary
March 26, 2012
JEFFERSON COUNTY FIRE DISTRICT #5 (Gardiner):
Date:
Commissioner
Commissioner
Commissioner
ATTEST:
District Secretary
March 26, 2012