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HomeMy WebLinkAbout050817_ra02JEFFERSON COUNTY BOARD OF COUNTY COMMISSIONERS AGENDA REQUEST TO: Board of County Commissioners FROM: Philip Morley, County Administrator DATE: May 8, 2017 SUBJECT: Update by EDC Team Jefferson and Authorization to Designate the Economic Development Council of Jefferson County as the Associated Development Organization for Jefferson County STATEMENT OF ISSUE: EDC Team Jefferson (the Economic Development Council of Jefferson County) is the designated Associate Development Organization (ADO) for Jefferson County. EDC Team Jefferson Executive Director Brian Kuh will provide an annual report on 2016 activities, as well as Team Jefferson's focus for 2017 and beyond. This presentation will be followed by an opportunity to designate EDC Team Jefferson as Jefferson County's Associate Development Organization (ADO) for the next State biennium. The designation will be submitted to the Washington State Department of Commerce. ANALYSIS: A copy of the planned presentation materials is enclosed. EDC Team Jefferson is registered in Washington State under the name "Economic Development Council of Jefferson County," and is registered as a 501(c)6 with the United States IRS. EDC Team Jefferson's work as the Associate Development Organization is defined by RCW 43.330.080, by its Strategic Plan, and by its contracts with the Port of Port Townsend and the County. FINANCIAL ANALYSIS: Under a separate county contract with EDC Team Jefferson, EDC Team Jefferson presently receives $26,400 per year of support from Jefferson County to perform its ADO responsibilities, appropriated annually in the county's adopted budget. Other funding is provided by the Port of Port Townsend, the Washington State Department of Commerce, in kind office support from the City of Port Townsend, grants and class fees. RECOMMENDATION: Hear the EDC Team Jefferson presentation and dialogue with Mr. Kuh and county staff regarding re -designation, and adopt a motion authorizing the BoCC Chair to execute the Associate Development Organization Certification/Designation Form for the Washington State Department of Commerce. RE ED BY: 1 ip Morle unty Admiittisn or ATTACHMENTS: Date • EDC Team Jefferson Presentation Materials • Associate Development Organization Certification/Designation Form www.commerce.wa.gov Departmentof Commerce Associate Development Organizations Building a prosperous economy through local economic development initiatives and support Services Washington's Department of Commerce maintains a contracted partnership with 35 associate development organizations (ADOs), serving 39 counties, providing both technical assistance and funding for local economic development activities. Each county in the state has designated an organization as its ADO to partner with Commerce and to serve as the primary partner in local economic development activities in their county. Commerce provides: • Grant management for 35 Associate Development Organizations (ADO). • Technical assistance to county commissioners regarding ADO designation. • Policy direction for ADO deliverables. • Consulting, education and mentoring to ADOs. Strategic Goal Retain, grow and attract businesses by improving and communicating Washington's competitive advantages. Results and Achievements Between July 1, 2014, and June 30, 2016, ADO partners have: • Assisted in the creation and retention of 8,584 jobs via business retention, expansion and creation. • Reported new private investments in land acquisition, buildings and equipment created by businesses they assisted, totaling a little over $1 billion. • Retained, recruited or expanded 244 companies. • Provided assistance to 103 new startups. Fast Facts There are 35 ADOs serving all 39 counties. ADOs are designated by county commissioners or executives. Commerce contracts with ADOs to serve as the local provider of economic and business services. Statutory Authority Agency Representative Karen McArthur RCW 43.330.080 - Coordination of community and economic Finance and Grant Services Manager development services 360.725.4027 RCW 43.330.082 - Contracting associate development organizations 360.7 5.402 ur@commerce.wa.gov RCW 43.30.086 - Contracts with associate development organizations - schedule of awards 1011 Plum Street SE I Olympia, WA 98504-2525 www.commerce.wa.gov 121 RCW 43.330.086: Contracts with associate development organizations—Schedule of awa... Page 1 of 1 RCW 43.330.086 Contracts with associate development organizations—Schedule of awards. To the extent that funds are specifically appropriated therefor, contracts with associate development organizations for the provision of services under *RCW 43.330.080(1) shall be awarded according to the following annual schedule: (1) For associate development associations serving urban counties, which are counties other than rural counties as defined in RCW 82.14.370, a locally matched allocation of up to ninety cents per capita, totaling no more than three hundred thousand dollars per organization; and (2) For associate development associations in rural counties, as defined in RCW 82.14.370, a per county base allocation of up to forty thousand dollars and a locally matched allocation of up to ninety cents per capita. [ 2008 c 131 § 3; 2007 c 249 § 5.] NOTES: *Reviser's note: RCW 43.330.080 was amended by 2012 c 195 § 1, changing the subsection numbering. Effective date -2008 c 131: See note following RCW 43.160.020. Findings—Intent-2007 c 249: See note following RCW 43.330.080. http://app.leg.wa.gov/RCW/default.aspx?cite=43.330.086 3/14/2017 Associate Development Organizations Eligibility & Designation Guidelines 4 Department of Commerce Innovation is incur nature, Overview Washington's Department of Commerce (Commerce) maintains a contracted partnership with 34 Associate Development Organizations (ADOs), serving 39 counties, through both technical assistance and funding for local economic development activities. Each county in the state has designated an organization as their ADO to partner with Commerce and serve as the lead on local economic development activities in their county. This guide is provided to assist county leaders in the process of designating the most effective organization to serve as the ADO for their county. The criteria that Commerce uses to approve and negotiate a contract with a county -designated ADO is also covered. The origins of ADOs date back to Governor Booth Gardner's Team Washington strategy that was initiated in 1985 to develop a public-private, state -local partnerships across the state. At first the Local Economic Development Assistance Program (LEDA) provided administrative grants to 33 ADOs that served the state's 39 counties. ADOs were to become the principal contact for the department and all county economic development elements (chambers, towns, ports, businesses, etc.) would coordinate their efforts through their local ADO. Expectations of ADOs The broad role of an Associate Development Organization is that of advocacy and leadership, serving as the point of contact for local economic activities, recruiting/hosting new businesses, and coordinating business retention and expansion efforts within its service area. The ADO serves as the principal contact for Commerce regarding economic activity in their area. ADOs help Commerce gather data about community profiles, industrial sites, plans for business development and retention, reports on business activities, and proposals for other economic activities in their service areas. ADOs are described in more detail in RCW 43.330.080, and a copy of that code is provided in the reference section of this guide. Specific expectations of the ADO, as assessed by Commerce for contracting purposes include: Partner with Commerce: The designated ADO organizations shall partner with Commerce as the lead local economic development organization in their service area to deliver economic development services at the local level. Through a contracted partnership, Commerce determines the scope of services delivered under the ADO grant/contract in collaboration with the ADO. The ADO works closely with Commerce to develop and carry out strategies and show potential for long-term sustainable g rowth. 2. Contracting Organizations (ADOs) in each Community or Regional Area Must Be "broadly representative of community and economic interests... capable of identifying key problems... and mobilizing broad support for recommended initiatives." The code lists key players as: • local governments • chambers of commerce • workforce development councils • port districts • labor groups • institutions of higher education • community action programs • other appropriate private, public, or nonprofit community and economic development groups. Best Practice Sharing ADOs must meet and share best practices with other ADOs at least two times a year. 3. Resources and Services Provided to Local Businesses: ADOs shall provide direct assistance, including business planning, to companies throughout the county who need support to stay in business, expand, or relocate to Washington from out of state or other countries. Assistance must comply with business recruitment and retention protocols established in RCW 43.330.062. 4. Regional Planning: Support for regional economic research and regional planning efforts to implement target industry sector strategies and other economic development strategies including cluster -based strategies. 5. Reports to Commerce: ADOs report quarterly on activity outcomes; i.e., Business Retention and Expansion assistance; Business Recruitment, Entrepreneurial Business Start-ups, etc. They also provide information on how they coordinate and collaborate with other organizations and jurisdictions in their counties, as well as other significant accomplishments. Timelines for reporting are in each grant/contract. 6. Formal designation by Count : The County's Board of Commissioners must formally designate an organization to serve as its ADO, providing Commerce with a signed statement of designation along with a certification of eligibility. References RCW 43.330.080 Coordination of community and economic development services — Contracts with county - designated associate development organizations — Scope of services -- Business services training. (1)(a) The department must contract with county -designated associate development organizations to increase the support for and coordination of community and economic development services in communities or regional areas. The contracting organizations in each community or regional area must.- (i) ust:(i) Be broadly representative of community and economic interests; (ii) Be capable of identifying key economic and community development problems, developing appropriate solutions, and mobilizing broad support for recommended initiatives; (iii) Work closely with the department to carry out state -identified economic development priorities; (iv) Work with and include local governments, local chambers of commerce, workforce development councils, port districts, labor groups, institutions of higher education, community action programs, and other appropriate private, public, or nonprofit community and economic development groups; and (v) Meet and share best practices with other associate development organizations at least two times each year. (b) The scope of services delivered under the contracts required in (a) of this subsection must include two broad areas of work: (i) Direct assistance, including business planning, to companies throughout the county who need support to stay in business, expand, or relocate to Washington from out of state or other countries. Assistance must comply with business recruitment and retention protocols established in RCW 43.330.062, and includes: (A) Working with the appropriate partners throughout the county including, but not limited to, local governments, workforce development councils, port districts, community and technical colleges and higher education institutions, export assistance providers, impact Washington, the Washington state quality award council, small' business assistance programs, innovation partnership zones, and other federal, state, and Iecal programs to facilitate the alignment of planning efforts and the seamless delivery of business support services within the entire county; (B) Providing information on state and local permitting processes, tax issues, export assistance, and other essential information for operating, expanding, or locating a business in Washington; (C) Marketing Washington and local areas as excellent locations to expand or relocate a business and positioning Washington as a globally competitive place to grow business, which may include developing and executing regional plans to attract companies from out of state; (D) Working with businesses on site location and selection assistance; (E) Providing business retention and expansion services throughout the county. Such services must include, but are not iimited to. business outreach and monitoring efforts to identify and address challenges and opportunities faced by businesses, assistance to trade impacted businesses in applying for grants from the federal trade adjustment assistance for firms program, and the provision of information to businesses on: (1) Resources available for microenterprise development; (11) Resources available on the revitalization of commercial districts; and (111) The opportunity to maintain jobs through shared work programs authorized under chapter 50.60 RCW; (F) Participating in economic development system -wide discussions regarding gaps in business start-up assistance in Washington; (G) Providing or facilitating the provision of export assistance through workshops or one-on-one assistance; and (H) Using a web -based information system to track data on business recruitment, retention, expansion, and trade; and (ii) Support for regional economic research and regional planning efforts to implement target industry sector strategies and other economic development strategies, including cluster -based strategies. Research and planning efforts should support increased living standards and increased foreign direct investment, and be aligned with the statewide economic development strategy. Regional associate development organizations retain their independence to address local concerns and goals. Activities include: (A) Participating in regional planning efforts with workforce development councils involving coordinated strategies around workforce development and economic development policies and programs. Coordinated planning efforts must include, but not be limited to, assistance to industry clusters in the region; (B) Participating with the state board for community and technical colleges as created in RCW 28B.50.050, and any community and technical colleges in the coordination of the job skills training program and the customized training program within its region; (C) Collecting and reporting data as specified by the contract with the department for statewide systemic analysis. In cooperation with other local, regional, and state planning efforts, contracting organizations may provide insight into the needs of target industry clusters, business expansion plans, early detection of potential relocations or layoffs, training needs, and other appropriate economic information; (D) In conjunction with other governmental jurisdictions and institutions, participating in the development of a countywide economic development plan. (2) The department must provide business services training to the contracting organizations, including but not limited toy (a) Training in the fundamentals of export assistance and the services available from private and public export assistance providers in the state; and (b) Training in the provision of business retention and expansion services as required by subsection (1)(b)(i)(E) of this section. [2014c112§111; 2012c195§1; 2011c286§2; 2009c151§10;2007c249§2.1997c50§1.1993c280§11.] Notes: Findings -- intent -- 2007 c 245: "The legislature finds that economic development success requires coordinated state and local efforts. The legislature further finds that economic development happens at the local level. County -designated associate development organizations serve as a networking tool and resource hub for business retention, expansion, and relocation in Washington. Economic development success requires an adequately funded and coordinated state effort and an adequately funded and coordinated local effort. The legislature intends to bolster the partnership between state and local economic development efforts, provide increased funding for local economic development services, and increase local economic development service effectiveness, efficiency, and outcomes." [2007 c 249 § 1.] RCW 43.330.082 Contracting associate development organizations — Performance measures and summary of best practices — Remediation plans — Reports — Information for the comprehensive statewide economic development strategy and progress report. 1)(a) Contracting associate development organizations must provide the department with measures of their performance and a summary of best practices shared and implemented by the contracting organizations. Annual reports must include the following information to show the contracting organization's impact on employment and overall changes in employment. Current employment and economic information for the community or regional area produced by the employment security department; the net change from the previous year's employment and economic information using data produced by the employment security department; other relevant information on the community or regional area; the amount of funds received by the contracting organization through its contract with the department; the amount of funds received by the contracting organization through all sources; and the contracting organization's impact on employment through all funding sources. Annual reports may include the impact of the contracting organization on wages, exports, tax revenue, small business creation, foreign direct investment, business relocations, expansions, terminations, and capital investment. Data must be input into a common web -based business information system managed by the department. Specific measures, data standards, and data definitions must be developed in the contracting process between the department and the contracting organization every two years. Except as provided in (b) of this subsection, performance measures should be consistent across regions to allow for statewide evaluation. (b) In addition to the measures required in (a) of this subsection, contracting associate development organizations in counties with a population greater than one million five hundred thousand persons must include the following measures in reports to the department: (i) The number of small businesses that received retention and expansion services, and the outcome of those services: (ii) The number of businesses located outside of the boundaries of the largest city within the contracting associate development organization's region that received recruitment, retention, and expansion services, and the outcome of those services. (2)(a) The department and contracting associate development organizations must agree upon specific target levels for the performance measures in subsection (1) of this section. Comparison of agreed thresholds and actual performance must occur annually. (b) Contracting organizations that fail to achieve the agreed performance targets in more than one-half of the agreed measures must develop remediation plans to address performance gaps. The remediation plans must include revised performance thresholds specifically chosen to provide evidence of progress in making the identified service changes. (c) Contracts and state funding must be terminated for one year for organizations that fait to achieve the agreed upon progress toward improved performance defined under (b) of this subsection. During the year in which termination for nonperformance is in effect, organizations must review alternative delivery strategies to include reorganization of the contracting organization, merging of previous efforts with existing regional partners, and other specific steps toward improved performance. At the end of the period of termination, the department may contract with the associate development organization or its successor as it deems appropriate. (3) The department must submit a final report to the legislature by December 31st of each even -numbered year on the performance results of the contracts with associate development organizations. [2014 c 112 § 112; 2012 c 195 § 2; 2011 c286 § 3; 2009 c518 § 15; 2x47 c 249 § 3.) Notes: Findings -- Intent — 2007 c 249: See note following RCW 43.330.080. EacTEAM Ujefferson 2016 Outreach & Community Impact Report DeveiopmEll Year Quarter Type 2016 Q2 Development Year Quarter Type Activity Participants EDC Hours 2016 Q1 1:1 Consulting Business Consulting Q1 2016 20 21 2016 Q2 1:1 Consulting Business Consulting Q2 2016 26 32 2016 Q3 1:1 Consulting Business Consulting Q3 2016 26 27 2016 Q4 1:1 Consulting Business Consulting Q4 2017 42 49 2016 Q4 Development 2016 Subtotal 114 129 Classes Meeting with Bob Hamlin / JeffCo Emergency Management Re: Resiliency Measur( W IMF - Activity Participants EDC Hours Year Quarter Type 2016 Q1 focusPLAN focusPLAN Spring 2016 - Planning, Marketing and Registering 3 30 2016 Q1 Lean Lean Spring 2016 - Planning, Marketing and Registering 5 30 2016 Q1 Lean LEAN SuitcaseWorkshop @ Food Co-op Jan 2016 21 20 2016 Q1 Lean LEAN SuitcaseWorkshop Planning, Marketing and Registering 5 30 2016 Q2 focusPLAN focusPLAN Business Planning Class Spring 2016 21 44 2016 Q2 Lean LEAN Class Spring 2016 23 20 2016 Q3 focusPLAN focusPLAN Fall 2016 - Planning, Marketing and Registering 4 30 2016 Q3 Lean LEAN Strategy Meeting 5 1 DeveiopmEll Year Quarter Type 2016 Q2 Development 2016 Q2 Development 2016 Q2 Development 2016 Q3 Development 2016 Q3 Development 2016 Q3 Development 2016 Q3 Development 2016 Q3 Development 2016 Q3 Development 2016 Q3 Development 2016 Q4 Development 2016 Q4 Development 2016 Q4 Development Activity Next 5 Things - Spring 2016 Capacity Grant Application - LEAN Community Resource Semi -Annual ADO Meeting - Moses Lake Meeting with WSU Extension Re: Business Plan Classes Meeting with Port of Port Townsend Re: IDD Initiative Jefferson & Clallam County SWOT Planning and Prep (With NODC) Clallam County SWOT Meeting (With NODC) Meeting with Elizabeth Courte Re: Workforce Development Jefferson County SWOT Meeting (With NODC) Meeting with Dept. of Commerce Next 5 Things - Fall 2016 Meeting with Howard Street Consultants Semi -Annual ADO Meeting - Olympia Subtotal 87 205 Subtotal wmm=•�� EDC Hours 18 5 Year Quarter Type Activity 2016 Q2 Outreach Sea Level Rising Summit Planning & Prep 2016 Q2 Outreach Sea Level Rising Summit 2016 Q2 Outreach Port Townsend High School Senior Symposium - Panelist 2016 Q3 Outreach Olympic Region Workforce Consortium 2016 Q3 Outreach Meeting with Clallam EDC Staff 2016 Q3 Outreach Meeting with Sam Gibboney Port of Port townsend 2016 Q3 Outreach Meeting with Sequim School District Superintendent 2016 Q3 Outreach Meeting with Caleb Anderson / Anderson Homes Re: Affordable Housing 2016 Q3 Outreach Meeting with Bob Hamlin / JeffCo Emergency Management Re: Resiliency Measur( 2016 Q3 Outreach Global Entreprenuership Week Workshop Planning & Strategy 2016 Q4 Outreach Global Entreprenuership Week Workshops 2016 Q4 Outreach Presentation to PT Kiwanis 2016 Q4 Outreach Meeting with COIN Planning Committee Participants EDC Hours 18 5 4 3 1 10 3 1 2 6 3 16 35 8 3 2 32 4 3 1 19 5 4 2 1 8 128 71 Participants EDC Hours 7 20 55 6 55 10 15 4 6 2 3 2 3 2 2 2 2 3 6 4 42 10 20 3 4 2 Subtotal 220 69 ED.CTEAM Ujefferson 2016 Outreach & Community Impact Report Year Quarter Type Activity Participants EDC Hours 2016 Q1 Programs CEO Breakfast 25 6 2016 Q1 Programs LION Business Applicants 4 4 2016 Q2 Programs CEO Breakfast 30 6 2016 Q2 Programs Focus CEO 1 2 2016 Q2 Programs LION Business Applicants 5 5 2016 Q2 Programs LION Presentations 2 6 2016 Q2 Programs LION Program Development & Survey 38 9 2016 Q3 Programs CEO Breakfast 10 2 2016 Q3 Programs LION Business Applicants 4 4 2016 Q3 Programs LION Member Development & Survey 30 13 2016 Q3 Programs LION Presentations 3 9 2016 Q3 Programs LION Strategy Meeting 5 1 2016 Q4 Programs CEO Breakfast 27 9 2016 Q4 Programs LION Applicants 4 4 2016 Q4 Programs LION Member Reception 21 5 2016 Q4 Programs LION Presentations 3 9 Subtotal 212 94 ILII 'Q . im 9