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HomeMy WebLinkAboutM022112 ~1 COMAtJ.n... ~~. ~4.~~~ ~(:; ~~, .... ~ ~ ..0:1 . I , ; \ ~ -?:/ ~IN~ District No.1 Commissioner: Phil Johnson District No.2 Commissioner: David W. Sullivan District No.3 Commissioner: John Austin County Administrator: Philip Morley Clerk of the Board: Erin Lundgren MINUTE S Week of February 21, 2012 Chairman John Austin called the meeting to order at the appointed time in the presence of Commissioner David Sullivan and Commissioner Phil Johnson. PUBLIC COMMENT PERIOD: The following are a summary of comments made by citizens in attendance at the meeting and reflect their personal opinions: . A citizen stated a Quilcene Community meeting will be taking place on St. Patrick's Day and would like to see more businesses open before a Sexually Oriented Business opens; . A citizen thanked the Board for Lodging Tax Advisory Committee (L T AC) funding on behalf of South County and stated the Quilcene gas station will be inspected by the Health Department to be able to sell food; . A citizen stated the County is allocating funding for representation of a judge which seems odd and is puzzling; they also thanked the Board of Health for sending a letter for additional air quality monitoring; . A citizen stated a newspaper article reported gas may be up to $5.00 per gallon and they would like to know why Clallam County is up $1.6 million dollars in tax revenue and Jefferson County is down $1 million? . A citizen thanked the Board for L T AC funds and stated Jefferson County Treasurer Judi Morris is a godsend because she is willing to go to bat for the citizens and checked things out at the Port Hadlock Inn in person. APPROVAL AND ADOPTION OF CONSENT AGENDA: Commissioner Johnson moved to approve all items on the Consent Agenda as presented. Commissioner Sullivan seconded the motion which carried by a unanimous vote. 1. BID CALL: Spruce Creek Culvert Replacement, Upper Hoh Road MP 9.70, Federal Project No. ER-0902(340), County Project No. X01821; Bids Accepted Until 9:30 a.m. and Opened and Read Publicly at 9:45 a.m. on Monday, March 12, 2012 in the Commissioners' Chamber 2. AGREEMENT: Exploratory Regional Parks and Recreation Committee Facilitation Services (ERPRC); In the Amount of $22,841.88; Jefferson County Public Works; Triangle Associates, Inc. 3. AGREEMENT: 2012-2013 Supply of Aggregate for Bituminous Surface Treatment Program; In the Amount of$106,200; Jefferson County Public Works; Port Orchard Sand and Gravel Company, Inc. 4. AGREEMENT: 2012 Community Services Grant Funding; In the Amount of$12,500; Port TovvTIsend Senior Association 5. AGREEMENT NO. G1200380: Coordinated Prevention Grant - Education; In the Amount of $126,666.67; Jefferson County Public Health; Washington State Department of Ecology Page 1 Commissioners Meeting Minutes: Week of February 21, 2012 6. AGREEMENT NO. 1163-27310, Amendment No.1: Substance Abuse Prevention; Additional Amount of $2,000 for a Total of$68,430; Jefferson County Public Health; Washington State Department of Social and Health Services 7. AGREEMENT: Provide Public Health Nurse Consultation to Licensed Daycare Centers; Not to Exceed the Amount of$I,500; Jefferson County Public Health; Olympic Educational Service District 114 8. AGREEMENTS (4): 2012 Lodging Tax Advisory Committee (LTAC) Grant Funding; 1) In the Amount of$51,900; Jefferson County Historical Society; 2) In the Amount of$56,120.00; Jefferson County Historical Society - Gateway Visitor Center; 3) In the Amount of $88,601.47; Jefferson County Tourism Coordinating Council; and 4) In the Amount of$44,790; North Hood Canal Chamber and Visitor Center 9. AGREEMENT: Legal Representation; Not to Exceed the Amount of$15,000; Tolman Kirk Clusas, PLLC 10. AGREEMENT: Maintenance for Audio Recording System Located in Superior Court Chambers; In the Amount of $3, 165 Plus Tax; Jefferson County Superior Court; Jefferson Audio Video Systems (JA VS), Inc. II. Advisory Board Appointment (3): Conservation Futures Advisory Board; To Serve Four Year Terms Expiring on February 21,2016; Open Interest Representative; Scott Brinton, Ray Hunter, and Lorna Smith 12. Payment of Jefferson County Vouchers/Warrants: Dated February 13,2012 Totaling $1,084,438.72 COMMISSIONERS BRIEFING SESSION: The Commissioners each provided updates on the following items: Chairman Austin will be representing the Board of Health regarding the pertussis (whooping cough) outbreak at a meeting Tuesday afternoon and stated the Jefferson County Solid Waste Advisory Committee (SW AC) meeting scheduled for this week is canceled. Commissioner Sullivan stated the Resource Conservation and Development Council (RC&D) meeting scheduled for this week has been canceled and he will be attending a Peninsula Development District (PDD) meeting this week. He attended a meeting on Monday at the WSU Extension with local farmers. Commissioner Johnson went to a Hood Canal Coordinating Council (HCCC) meeting and a Legislative Steering Committee meeting where both groups unanimously approved an Atlantic fish farm moratorium. He will be in Olympia on Wednesday for a legislative meeting and out oftown for the rest of the week. County Administrator Morlev: reported that the Exploratory Regional Parks and Recreation Committee will be meeting this week. He also presented to the Board a draft schedule of Community Workshop meetings for consideration and input. The meeting was recessed at 10:06 a.m. and reconvened at 10: 18 a.m. with all three Board members present. Also present was County Administrator Philip Morley, Treasurer Judi Morris, Deputy Prosecuting Attorney David Alvarez, and Financial Consultant Anne Sears. Page 2 Commissioners Meeting Minutes: Week of February 21,2012 DRAFT JEFFCOM INTERLOCAL AGREEMENTS: County Administrator Philip Morley explained that the "Jeff Com Interlocal Agreement Committee" met earlier this month to discuss proposed changes to the JeffCom Interlocal Agreement (ILA). Significant changes focused on voting requirements and adding a section on dispute resolution. The Board reviewed how the agreement will deal with grievance issues and discussed the difference between mediation and arbitration. County Administrator Morley presented a copy ofthe draft agreement and noted that the changes regarding dispute resolution, specifically the issue of "staying," are not included in this draft. He asked if the Commissioners feel this issue is important to discuss with the JeffCom Board? The Commissioners agreed that it is important and needs to be addressed in the agreement. With regard to equipment, there was agreement by the Committee to include an "Exhibit 1" to identifY what assets belong to JeffCom. Exhibit I would be a snapshot in time entering into the ILA and would evolve over time. It was agreed that it needs to be made clear that Exhibit I will be updated and the contract should reflect language to that effect. County Administrator Morley noted language was left out of the agreement relating to the fact that Jeff Com acknowledges that as of the date of this agreement, JeffCom has no ownership interest in the real property where JeffCom currently operates at 81 Elkins Road. However, there was no real discussion or understanding whether real property includes the towers or whether it means the land and buildings only. Deputy Prosecuting Attorney Alvarez stated that it could be legally argued either way. Treasurer Morris explained that the towers are considered personal property for tax purposes. County Administrator Morley asked ifit would be prudent to include this language (section XI, item 'C') in the agreement? The Commissioners agreed that it should be included in the agreement. Commissioner Austin called for a motion to accept all the language changes to the draft ILA noted in red and that the changes be presented to the JeffCom Board as the County's desired amendment to the ILA consistent with the general direction ofthe Jeff Com Interlocal Agreement Committee on February 9, 2012. Commissioner Johnson moved that the new language under section VIII. Equipment, section XI. Withdrawal and Termination, and section XX. Dispute Resolution, be added to the ILA. Commissioner Sullivan seconded the motion which carried by a unanimous vote. County Administrator Morley explained there are two additional issues with the ILA that need to be addressed. The first deals with Exhibit 1 and what assets or equipment need to be included. The second issue relates to additional language the Treasurer may want included in the ILA regarding sales tax revenue. Financial Consultant Anne Sears discussed the first issue and explained that she prepared the County's asset schedule which shows approximately $4.6 Million of equipment inventory for JeffCom. Approximately $1 Million of software equipment is not included on the County asset list, as well as $1.6 Million in propertylsite improvements. Both of these items can be depreciated over time and should be included not only for an accurate inventory, but for future planning purposes. County Administrator Morley asked if there are suggestions on how to create a complete Exhibit 1 and how to engage the Jeff Com Board on this issue? Treasurer Morris suggested all the equipment and assets be itemized on one list with a column which identifies what is bonded. IdentifYing what is bonded does Page 3 Commissioners Meeting Minutes: Week of February 21, 2012 not necessarily have to be on the list included with the agreement, but it needs to be included on a list. Chairman Austin stated there needs to be agreement on whether or not approval of the ILA is contingent upon the completion of Exhibit 1. Ms. Sears stated that the ILA approved in 2007 contained an Exhibit I listing the inventory, however, it did not include the towers. The Board agreed that any assets not currently included on Exhibit 1, need to be added so it reflects a complete inventory list. County Administrator Morley stated there are three towers that, arguably, the County may own. Those towers are located at Elkins Road, Coyle Peninsula, and Maynard Peak. The other towers are either owned by other entities or were purchased and built by JeffCom as part of the recent tower improvement project and the County would assert ownership of those towers. Discussion ensued regarding which entities own the property where the towers are located and the ground leases which allow for locating the towers on the property. County Administrator Morley reported that research is being conducted to locate copies of the ground leases. Additionally, he has met with Deputy Prosecuting Attorney Alvarez who suggested that regardless of who owns the towers, it is in the interest of both JeffCom and the County to have reciprocal agreements that guarantee the ability to co-exist in perpetuity, so the issue of ownership is less of a concern. He is also inquiring about other towers used by JeffCom that are not owned by the County to see if there is any County equipment at any ofthose towers. Deputy Prosecuting Attorney Alvarez explained the concept of the co-location agreement which outlines the list of towers covered by the agreement, as well as the responsibilities of the parties entering into the agreement. The agreement would also be open to future tenants and co-locators such as cell phone companies, KPTZ, etc. Discussion ensued regard language that may be included in the agreement relating to space or location on a tower. Ms. Sears stated she has conducted research on the three towers owned by the County and she has been unable to locate any documentation showing the towers were transferred by the County to Jeff Com. The last agreed upon inventory was included as Exhibit 1 to the 2007 ILA and as stated previously, the Exhibit does not include the three towers owned by the County, nor are they mentioned anywhere in the 2007 agreement. The Board would need to take formal action in order to transfer or sell assets. In 2002, there was another JeffCom ILA that was approved which states "Jeff Com shall own and maintain all equipment and assets previously obtained or purchased by the County for purposes of establishing and maintaining operations. This includes all office furniture as well as office, radio, data telephone and computer equipment". Commissioner Johnson said the sentence seems to say that the towers are included and the second sentence delineates what is included. The 2007 agreement states "Jeff Com shall own and maintain all equipment and assets as provided in Exhibit I". Ms. Sears stated that the agreement approved later in 2007 does not include the towers in the asset list in Exhibit 1. County Administrator Morley stated there needs to be a legal analysis of the relationship between the Page 4 Commissioners Meeting Minutes: Week of February 21, 2012 2007 agreement that specifically references Exhibit 1 that does not include the towers, and the 2002 agreement which includes a general statement which may, arguably, include the towers. He requested Deputy Prosecuting Attorney Alvarez provide a legal analysis of these two agreements in terms of whether or not the three towers are County property and if it is determined that they are County property, whether or not the County may want to transfer them to JeffCom. Relating to the second issue dealing with sale tax revenue, Ms. Sears explained that there needs to be language included in this agreement or in the Jeff Com Bonded Indebtedness ILA that states the County should be the collector of the sales tax for E911 because the County is the authorized agency to receive the tax. Treasurer Morris added that the Washington State Department of Revenue has authorized the County, not Jeff Com, to receive this tax funding. The sales tax funding for E911 is used to pay the bonds and then any excess is provided to Jeff Com for E911 purposes. This was suggested by City Manager David Timmons several months ago and specific language delineating that the County will collect the sales tax for E911 had been included in a previous draft of this agreement, but somehow it has been taken out. It is important that this language be included in the [mal ILA. Treasurer Morris stated that last November Jeff Com failed to make their bond payments, resulting in the County paying the bonds for them and deducting the amount of the bond payments from the Jeff Com fund. The County needs to insure that does not happen in the future as it is the responsibility of the Jefferson County Treasurer to pay those bonds on time. County Administrator Morley noted a second ILA is being drafted for JeffCom relating to the Bond Indebtedness and he asked if this language could be added to that ILA? Treasurer Morris agreed, as long as the ILA' s are signed together. Commissioner Johnson moved to request Jeff Com add the missing asset items to Exhibit I ofthe draft ILA. Commissioner Sullivan suggested the motion be amended to state "it is requested that Exhibit 1 be complete and accurate, or consistent with internal County inventory" rather than merely stating "add the missing items". Commissioner Johnson accepted the amended motion. Commissioner Sullivan seconded the motion as amended which carried by a unanimous vote. County Administrator Morley will continue both legal and historic research on the ownership of the three County-owned towers and work with the various departments to clarifY the County's interest in retaining ownership of any of the towers. He will also coordinate with the Chair in potentially bringing forward proposals for transferring the towers to JeffCom. He suggested it would be in the County's interest to retain ownership of the tower located on Elkins Road given the fact that Jeff Com may relocate at some point in the future and given how critical it is to the EOC, sheriff, jail, and LT. operations, but still allow for perpetual Jeff Com use. At this point in time, he does not have an opinion regarding the other two towers. The second ILA for Bond Indebtedness and a resolution establishing a defeasement fund are being drafted for review. Treasurer Morris and Ms. Sears suggested simplifYing the process by combining the two. A defeasement fund is not needed if sales tax funds are allocated for the bond payments. Approximately $360,000 in sales tax is collected annually and the annual bond payment totals $274,000. Without a defeasement fund any remaining funds could be provided to Jeff Com by the Treasurer, Page 5 . Commissioners Meeting Minutes: Week of February 21,2012 ,~< ~ '.\', ~"" otherwise, JeffCom will need to make payments and get reimbursed from sales tax funds. Deputy Prosecuting Attorney Alvarez stated that defeasement fund may be necessary in the event that there is not enough sales tax funding to cover the bond payment. It might be a good reason to establish the fund and have that protection in place. County Administrator Morley explained the defeasement fund was prefunded with $150,000 allocated for JeffCom bond payments. Treasurer Morris believes there will be enough sales tax funding to cover the bond payment. It is not necessary to manage both funds when the County has the ability to obtain the funds from JeffCom if the amount of sales tax collected is too low. Ms. Sears stated that way it is set up will work, but there needs to be clear language in the ILA that the Treasurer will collect the sales tax and pay the bonds. Treasurer Morris added that the State Auditor has requested this language be included in the agreement. County Administrator Morley asked Treasurer Morris if she is available to attend the next J effCom Board meeting on Thursday to discuss this matter? Treasurer Morris replied yes. Chairman Austin asked the Treasurer if she has a preference regarding whether or not to have a separate defeasement fund? Treasurer Morris replied she can manage it either way, but for simplicity purposes her preference is to use sales tax funding and not have a defeasement fund. County Administrator Morley asked if the Treasurer could prepare proposed language combining the defeasement policy with the Bond Indebtedness ILA that could be considered by the Jeff Com Board at their next meeting? Treasurer Morris replied yes. She will talk with Jeff Com Director Janet Silvus and City Manager David Timmons about this issue and work with Ms. Sears on drafting the language. NOTICE OF ADJOURNMENT: Commissioner Johnson moved to adjourn the meeting at 11 :44 a.m. until the next regular Monday meeting or special meeting as properly noticed. Commissioner Sullivan seconded the motion which carried by a unanimous vote. MEETING ADJOtJRNEt>"', . , .. li.'~-...' j' -'!'- ~9' SEAL: '" \t .. .' '. '. .~. ~1t3'j) I. \\111.. '. '. ~ -~.c:: . . J. . /.' ''\ \V'.,...: ~ \-....../ .' .' - j ATTEST: ;;'!c~;'i'" '.t\)~" ~~<. so, .~~_~v: ></,<~ ~~\~ Raina Randall Deputy Clerk of the Board JEFFERSON COUNTY BO ~CS;;ISSIONERS Austin, Chair Page 6