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HomeMy WebLinkAbout082718_cabs01 JEFFERSON COUNTY BOARD OF COUNTY COMMISSIONERS AGENDA REQUEST TO: Board of County Commissioners FROM: Philip Morley, County Administrator ` Ar DATE: August 27, 2018 RE: Continued City and County Discussion re: Fund 148 and Interlocal Agreement on Document Recording Fees for Homeless Housing and Affordable Housing STATEMENT OF ISSUE: County Commissioners and the City of Port Townsend's Ad Hoc Committee on Affordable Housing will continue discussion regarding Jefferson County Fund 148 and a potential new Interlocal Agreement on Document Recording Fees for Homeless Housing and Affordable Housing in preparation for ongoing discussions with the City of Port Townsend. ANALYSIS: On July 2, 2018, the County received notice from the City of the City's intent to terminate after 90 days of providing notice two Interlocal Agreements (ILAs)adopted in 2003 and 2005 regarding the use of recording fees for affordable housing and homeless housing authorized by RCWs 36.22.178, .179 and .1791 which are managed out of Jefferson County Fund 148. On July 30, 2018, the County Commissioners held a special meeting with the City of Port Townsend's Ad Hoc Committee on Affordable Housing and Olympic Community Action Programs (OIyCAP)to begin joint discussion of a potential new Interlocal Agreement(ILA)to replace the two existing ILAs adopted in 2003 and 2005. A potential draft replacement ILA, prepared by the County,was discussed at the July 30 meeting, and is attached to this Agenda Request as Exhibit 1. On August 9, 2018, Commissioner Kate Dean and county staff participated in a special meeting of the City's Ad Hoc Committee on Affordable Housing to continue discussions of a potential new Interlocal Agreement. On August 22,2018, following that meeting,the City provided for consideration its own alternative draft ILA,which is attached to this Agenda Request as Exhibit 2. Continued discussions between the County and the City on preparing a potential new ILA are scheduled in the afternoon sessions of the regular BoCC meetings on August 27 at 1:30 pm, September 4 at 3:00 pm, and September 10, 2018 at 3:00 pm. FISCAL IMPACT: None from the discussion. A new ILA,yet to be prepared and finalized,will potentially impact the collection and distribution of the recording fees. An ILA is required to collect recording fees under RCW 36.22.178. RECOMMENDATION: Continue Board discussions in preparation for meetings with the City. ' EW D BY:-- '/7 6--- -f21. ?/:"-C/,0 Philip More,,e oun Adminisrat, Date EXHIBIT 1 - County Draft rev. 07 29 18 AMENDED INTERLOCAL COOPERATION AGREEMENT ON FUNDING FOR AFFORDABLE HOUSING AND HOMELESS HOUSING This agreement is entered into between Jefferson County (County) and the City of Port Townsend (City) on the terms and conditions stated below. WHEREAS, the Interlocal Cooperation Act (Chapter 39.34 RCW) provides authority for governmental entities to exercise their respective powers jointly through intergovernmental agreements; WHEREAS,RCW 36.22.178, RCW 36.22.179(4)and RCW 36.22.1791 created a document recording fees, a portion of which are to be utilized by local jurisdictions for affordable housing for extremely low and very low-income residents (RCW 36.22.178) and to reduce homelessness (RCW 36.22.179 and RCW 36.22.1791); WHEREAS,the parties entered in to the 2003 ILA on October 10,2003,for the sharing and administration of SHB 2060 funds and entered in to the 2005 ILA, effective December 12, 2005 for the sharing and administration of ESSHB 2163 funds; and, WHEREAS,considering subsequent changes in the law there,the parties are updating their interlocal agreements contained in 2003 ILA and the 2005 ILA; NOW THEREFORE, in consideration of the mutual housing benefits for extremely low income and very low-income persons and homeless persons living throughout the entire Jefferson County area,the above parties agree as follows: I. Definitions. a. "2003 ILA" means the Interlocal Agreement between the parties effective October 10, 2003 for the sharing and administration of SHB 2060 funds. b. "2005 ILA" means the Interlocal Agreement effective December 12, 2005 for the sharing and administration of ESSHB 2163 funds. c. "Agreement" means this Amended Interlocal Cooperation Agreement on Funding for Affordable Housing and Homeless Housing. d. "Annual report" means the annual report required by RCW 42.185C.045(3), as it now exists or may be amended. e. "City" means the City of Port Townsend. f. "Community action agency"has the same meaning as in RCW 43.185C.010(3), as it now exists or may be amended. g. "County" means Jefferson County. h. "Department" means the Washington Department of Commerce. 1 i. "ESSHB 2163"means Engrossed Second Substitute House Bill 2163 passed by the Washington Legislature on August 1, 2005. j. "ESSHB funds" means funds collected under RCW 36.22.179 and RCW 36.22.1791. k. "Effective date" means the date all parties have signed this agreement. 1. "Eligible recipients" means community action agencies, housing authorities, non- profit organizations, county departments or city departments that are authorized to receive funds from ILA revenue and to carry out the purposes of RCW 36.22.178, RCW 36.22.179 or RCW 36.22.1791. m. "Facilitator" means UGN or such other organization that may be designated by the parties through amendment of this agreement. n. "Fund 148"means the single fund used by the Jefferson County Auditor to segregate ILA revenue from the County's other funds. o. "Homeless housing grants" means grants pursuant to RCW 43.185C.070, as it now exists or may be amended. P. "Homeless housing strategic plan" means the state's homeless housing strategic plan in RCW 43.185C.010(11) and RCW43.185C.040, as they now exists or may be amended. The current version of the state's homeless housing strategic plan is dated January 2018 and can be found at: http://www.commerce.wa.gov/wp-content/uploads/2018/02/hau-strategic- plan-2018.pdf. q. "Homeless person" has the same meaning as in RCW 43.185C.010(12), as it now exists or may be amended. r. "Housing continuum" has the same meaning as in RCW 43.185C.010(15), as it now exists or may be amended. s. "ILA revenue" means collectively the local share of all revenue generated in Jefferson County from the surcharges authorized by RCW 36.22.178, RCW 36.22.179 and RCW 36.22.1791. For the avoidance of doubt"ILA revenue does not include shares allocated to the state or the County Auditor under RCW 36.22.178, RCW 36.22.179 or RCW 36.22.1791. t. "Local five-year homeless housing plan" means the plan required by Section 7.c.i. u. "Local homeless housing task force" has the same meaning as in RCW 43.185C.010(18) and RCW 43.185C.160, as they now exists or may be amended. 2 v. "Peninsula Housing Authority" or PHA means the Peninsula Housing Authority, 2603 S. Francis, Port Angeles, WA 98362. w. "Parties" means all of the parties. x. "Party" means one of the parties. Y. "Person" has the same meaning as in RCW 1.16.080, as it exists now or may be amended. z. "OlyCap"means Olympic Community Action Programs, 823 Commerce Loop, Port Townsend, WA 98368, a community action agency. aa. "Or" means or and and/or. bb. "RFP" means request for proposal. cc. "SHB 2060" means Substitute House Bill 2060 passed by the Washington Legislature on June 13, 2002. dd. "SHB 2060 funds" means funds collected under RCW 36.22.178. ee. "Shelter and housing continuum provider" means OlyCap or such other entity as may be designated through amendment of this agreement. ff. "State" means the State of Washington. gg. "Statewide guidelines" means the department's statewide guidelines issued by December 1, 2018, and the department's five-year homeless housing strategic plan. hh. "Ten-year Plan" means the ten-year plan to end homelessness in Jefferson County developed by the homeless task force and facilitated by OlyCap, as adopted by the Jefferson County Board of Commissioners on June 11, 2018. ii. "UGN"means United Good Neighbors of Jefferson County, 201-B W. Patison, Port Hadlock, WA 98339, a non-profit organization. 2. Purposes of this Agreement. The purposes of this agreement are to: a. Provide for the administration of the ILA revenue, consistent with the requirements of RCW 36.22.178, RCW 36.22.179(4) and RCW 36.22.1791. b. Provide stable funding for services for homeless persons by the shelter and housing continuum provider, consistent with available ILA revenues, as described in this agreement. c. Provide funding to eligible recipients for additional homeless and affordable housing services allowed by RCW 36.22.178, RCW 36.22.179(4) and RCW 3 36.22.1791, as funding allows, with allocations approved by Jefferson County Board of Commissioners,and administered by the facilitator as described in this agreement. d. Assist homeless persons in moving along the housing continuum. e. Assure continued operations of services for homeless persons by buffering the impacts of future downturns in the number of recorded documents by establishing a revenue stabilization reserve goal of twenty percent of projected annual revenue, established in 2018 using the existing unencumbered Fund 148 balance, and maintained thereafter using available revenues and fund balance. f. Facilitate the submittal by the County to the State reports as required by RCW 42.185C.045 or otherwise required by the department. g. Provide for enhanced accountability and transparency about the administration and use of ILA revenues from recording fees through regular reports to the State, and to the City and County in formats jointly agreed (and as may be updated) by the City and the County. h. Facilitate the requirement in RCW 43.185C.050 and RCW 43.185C.160 that either: (i) a local homeless housing task force; or, (ii) an existing governmental or nonprofit body with substantially conforms to RCW 43.185C.160 and which includes at least one homeless or formerly homeless individual to serve as its homeless representative, shall prepare and recommend to the Jefferson County Board of Commissioners a local five-year homeless housing plan for Jefferson County, which shall be not inconsistent with the statewide guidelines and thereafter the department's five-year homeless housing strategic plan, and which shall be aimed at eliminating homelessness. i. Facilitate compliance with the ten-year plan, while it remains in effect. j. Facilitate the use of additional resources in addition to ILA revenue for the development of projects that will reduce homeless populations in Jefferson County. k. Enhance existing homeless programs and develop new homeless facilities that are consistent with the needs of the ten-year plan or the planned five-year homeless housing plan for Jefferson County. 3. Term of this Agreement. The term of this agreement shall be five years from the effective date and shall automatically renew for successive two-year terms, unless one of the parties gives notice to the other party of its intention not to renew the agreement one-year prior to the expiration of the term or extended term of this agreement. 4. Limitation on Use of ILA Revenue. Use of ILA revenue must be consistent with the requirements of RCW 36.22.178, RCW 36.22.179, RCW 36.22.1791, the homeless housing strategic plan, the local five-year homeless housing plan, and this agreement. 4 5. Financing and Budget. a. The Jefferson County Auditor shall collect and distribute recording fees pursuant to RCW 36.22.178, RCW 36.22.179, and RCW 36.22.1791. b. The Jefferson County Auditor shall retain five percent of the affordable housing surcharge pursuant to RCW 36.22.178 and two percent of the homeless housing surcharge pursuant to RCW 36.22.179. c. ILA revenue shall be collected by the Jefferson County Auditor and held in Fund 148 by the Jefferson County Treasurer, to be budgeted by the Jefferson County Board of Commissioners for use by the facilitator and the shelter and housing continuum provider under the terms of this agreement. d. Annually, the County shall estimate separately ILA revenues for allocation in the following year from each of the following sources: RCW 36.22.178, RCW 36.22.179, and RCW 36.22.1791. e. Revenue Stabilization Reserve Goal. i. In 2018, an initial revenue stabilization line item shall be established in Jefferson County Fund 148 of$10,000 associated with RCW 36.22.178 and $60,000 associated with RCW 36.22.179, and RCW 36.22.1791 using the unencumbered fund balance existing on the effective date of this agreement. ii. The revenue stabilization reserve goal shall be twenty percent of projected annual ILA revenue received after the effective date during 2018. iii. For 2019 and subsequent years, revenue stabilization funds shall be budgeted and funded from available revenues or fund balance on an on- going basis. iv. The County may budget to use the revenue stabilization funds to maintain levels of service in years when ILA revenues decline, and thereafter shall seek opportunities to rebuild revenue stabilization funds to meet the revenue stabilization goal as revenues or available fund balance allows. f. Annual budgeting by the Jefferson County Board of Commissioners of the ILA revenue shall be in accordance with the table in Appendix A. 6. The Shelter and Housing Continuum Provider. The duties of the shelter and housing continuum provider are to: 5 a. Within the funds provided by the ILA revenues and such other revenues as the shelter and housing continuum provider can obtain,consistent with state law for use of the ILA revenues, and only on a reimbursement basis: i. Operate a year-round homeless shelter currently located at the American Legion in Port Townsend for adult men and women, using the funds budgeted pursuant to the table in Appendix A; ii. Operate the Haines Street Cottages for homeless people not suited for the Homeless Shelter, such as women or families with children,referrals from the therapeutic courts, or others, using the funds budgeted pursuant to the table in Appendix A; and; iii. Operate a Housing Assistance Program to help homeless people transition into permanent housing, to help people avoid becoming homeless, and provide related support to those individuals, using the funds budgeted pursuant to the table in Appendix A. b. Assist homeless persons in moving along the housing continuum. c. Administer the ILA revenue it receives pursuant to this agreement to serve homeless persons and families in need throughout the incorporated and unincorporated areas of Jefferson County. d. Apply for grants and other funding sources at its discretion to further support and enhance its homeless housing and affordable housing services within incorporated and unincorporated Jefferson County. e. At least annually,provide the County,the City, and the facilitator with a written summary of the funds expended by the shelter and housing continuum provider under the terms of this agreement in a format and schedule as may jointly be determined by the City and the County. f. To receive the benefits of this agreement the shelter and housing continuum provider must: i. Confirm in writing that for valuable consideration the shelter and housing continuum provider agrees to perform all the duties of the shelter and housing continuum provider under this agreement and shall comply with all terms and conditions of this agreement; and, ii. Enter into a separate agreement with the County to receive funds from Fund 148 that incorporates by reference all the terms and conditions of this agreement. 6 7. The Facilitator. The duties of the facilitator are to: a. Assist the shelter and housing continuum provider with the preparation of reports that the shelter and continuum of housing provider must prepare. b. Convene annually an advisory committee of residents and business representatives plus a representative of the City government and County government to: i. Prepare and submit to eligible recipients an annual RFP for use of ILA revenue in Jefferson County to provide eligible services; ii. Evaluate the proposals and qualifications of eligible recipients and the merits of their proposals, consistent with the revised code of Washington, local homeless housing plan, and community needs; and, iii. Make recommendations for funding awards to eligible recipients for final approval by the Board of County Commissioners. c. Convene a standing local homeless housing task force that meets the requirements in RCW 43.185C.010(18) and RCW 43.185C.160, as they now exists or may be amended, in order to: i. Develop a local five-year homeless housing plan addressing short-term and long-term housing for homeless persons as required by RCW 43.185C.160(1). The local five-year homeless housing plan shall be recommended to the Jefferson County Board of Commissioners on or before October 1, 2019 for adoption by the Jefferson County Board of Commissioners by December 1, 2019. ii. Develop programs for affordable housing for extremely low and very low-income residents (RCW 36.22.178) and to reduce homelessness (RCW 36.22.179 and RCW 36.22.1791) in Jefferson County. iii. Establish guidelines consistent with the statewide homeless housing strategic plan as needed pursuant to RCW 43.185C.160(2) for: 1. Emergency shelters; 2. Short-term housing needs; 3. Temporary encampments; 4. Supportive housing for chronically homeless persons; and, 5. Long-term housing. The guidelines must include, when appropriate, standards for health and safety and notifying the public of proposed facilities to house the homeless. 7 d. Prepare reports for the County and the City as follows: i. Annual Report Required by RCW 43.185C.045(3). By November 1 of each year,the facilitator shall provide to the County and the City, a draft annual report required by RCW 43.185C.045(3), as it now exists or may be amended. ii. Report Due March 31 Each Year. No later than March 31 of each year, in a format jointly determined by the City and the County,the facilitator shall provide to the City and the County a that shall identify categories of people served, types of services provided, and outcomes. This report shall also include information detailing the ILA revenue and detailing all funding sources. iii. Other Reports During Each Year. The facilitator shall provide to the City and the County such other reports as may be jointly determined by the City and County. e. Provide the County with all information necessary for the County to comply with the requirements of RCW 43.185C.240(1), when housing vouchers are issued using funds collected pursuant to RCW 36.22.178,RCW 36.22.179(4)or RCW 36.22.1791. f. Pursuant to RCW 43.1850.080,only the County is eligible to receive a homeless housing grant. The facilitator shall identify and prepare for the County applications for homeless housing grants. Any homeless housing grants obtained by the County shall be administrated by the facilitator. g. Preparation of applications for grants which may be agreed to under a separate agreement between the City, the County, and the facilitator. h. At least annually, provide the County with a written summary of the funds expended by the facilitator under the terms of this agreement. To receive the benefits of this agreement a facilitator must: i. Confirm in writing that for valuable consideration the facilitator agrees to perform all the duties of the facilitator under this agreement and shall comply with all terms and conditions of this agreement. ii. Enter into a separate agreement with the County to receive funds from Fund 148 that incorporates by reference all the terms and conditions of this agreement. 8. Liabilities. 8 a. Each party shall indemnify, defend and hold harmless the other parties, their officers, agents, employees, and volunteers, from and against any and all claims, demands, damages,judgments, losses, liability and expense (including, attorney's fees), including but not limited to those for personal injury, death or property damage suffered or incurred by any person, by reason of or in the course of performing this agreement which is or alleged to be caused by or may directly or indirectly arise out of any act or omission of the party,its officers,employees,agents and volunteers. b. Except as provided above, in the event more than one party is responsible or negligent, each party shall be responsible in proportion to its negligence. c. Nothing contained in this agreement shall be considered as in any way constituting a partnership between the City and the County. 9. Disputes Between the Parties. a. Disputes shall be resolved by first attempting to negotiate a settlement between the parties. If settlement cannot be reached within 30 days of written notice of the dispute,the parties agree to submit the matter to non-binding mediation through the Peninsula Dispute Resolution Center. The mediator shall be selected by agreement of the parties and the cost of mediation shall be shared equally between the parties. b. If the parties are unable to negotiate a resolution or refuse to accept a mediated resolution to a dispute,then the parties agree to binding arbitration by a three-person arbitration panel. c. The prevailing party shall be entitled to reasonable attorney's fees and costs regardless of whether the party uses in-house or outside counsel. d. The venue for any legal action shall be solely in the appropriate state court in Jefferson County, Washington, subject to the venue provisions for actions against counties in RCW 36.01.050. 10. Modification, Withdrawal and Termination. This agreement may be modified, withdrawn, or terminated as follows: a. This agreement may be modified or extended by the written agreement of the parties. b. This agreement only may be terminated at the end of five-years after the effective date or any date thereafter by either party with one-years prior written notice by its legislative body to the other party. 11. Administrator of this Agreement. For the purposes of RCW 39.34.030(4)(a), the Jefferson County Board of Commissioners is designated as the administrator responsible for overseeing and administering the joint or cooperative undertaking contemplated by this agreement(i.e.,the joint designation of an administering agency 9 to administer and expend the revenues generated by the recording surcharge as provided in this agreement). 12. No Acquisition of Property. a. The parties by reason of this joint or cooperative undertaking shall acquire no property. b. If, for any reason, either party wishes to utilize ILA revenue in their acquisition of property, such use shall only be allowed subject to a prior separate written agreement between the parties. 13. Termination of the 2003 and the 2005 ILAs. The 2003 ILA and the 2005 ILA shall be terminated upon approval of this agreement by both the County and the City. Notwithstanding the City's notice of termination of the 2003 ILA and the 2005 ILA, those agreements shall remain in effect until approval of this agreement by both the County and the City. 14. General Terms. a. It is understood and agreed that this agreement is entered into in the State of Washington. This agreement shall be governed by and construed in accordance with the laws of the United States,the State of Washington, and the County of Jefferson, as if applied to transactions entered into and to be performed wholly within Jefferson County, Washington between Jefferson County residents. No party shall argue or assert that any state law other than Washington law applies to the governance or construction of this agreement. b. This agreement contains terms and conditions agreed upon by the parties. c. No representation or promise not expressly contained in this agreement has been made. d. The parties re not entering into this agreement based on any inducement, promise or representation, expressed or implied, which is not expressly contained in this agreement. e. This agreement supersedes all prior or simultaneous representations, discussions, negotiations, and agreements, whether written or oral, within the scope of this agreement. f. The headings of the sections of this agreement are for convenience of reference only and are not intended to restrict, affect, or be of any weight in the interpretation or construction of the provisions of the sections or this agreement. g. No term or provision of this agreement will be considered waived by either party, and no breach excused by either party, unless such waiver or consent is in writing signed on behalf of the party against whom the waiver is asserted. Failure of a party 10 to declare any breach or default immediately upon the occurrence thereof, or delay in taking any action in connection with, shall not waive such breach or default. h. Provided it does not result in a material change in the terms of this agreement, if any provision of this agreement or the application of this agreement to any person or circumstance shall be invalid, illegal, or unenforceable to any extent,the remainder of this agreement and the application this agreement shall not be affected and shall be enforceable to the fullest extent permitted by law. This agreement shall be binding upon and inure to the benefit of the parties' successors in interest, heirs, and assigns. j. Nondiscrimination; Equal Employment Opportunity. In the performance of this agreement, the parties and their employees and agents shall at all times comply with all federal, state, or local laws, ordinances, rules, or regulations with respect to nondiscrimination and equal employment opportunity which may at any time be applicable. ii. Without limiting the generality of the foregoing, the parties shall not discriminate against any employee or applicant for employment because of age, sex, marital status, sexual orientation,race, creed, color, national origin, honorably discharged veteran or military status, or the presence of any sensory, mental, or physical disability or the use of a trained dog guide or service animal by a person with a disability as required by law. iii. The parties shall take affirmative action to ensure that the facilitator and the shelter and homeless housing continuum prover do not discriminate on the basis of age, sex, marital status, sexual orientation, race, creed, color, national origin,honorably discharged veteran or military status, or the presence of any sensory, mental, or physical disability or the use of a trained dog guide or service animal by a person with a disability. iv. The parties and their employees and agents shall not at any time discriminate against any other persons or entity because age, sex,marital status, sexual orientation, race, creed, color, national origin, honorably discharged veteran or military status, or the presence of any sensory, mental, or physical disability or the use of a trained dog guide or service animal by a person with a disability. k. The parties shall keep and maintain all records which may be required by law in connection with compliance with this section. 1. The parties agree that this agreement has been negotiated at arms-length, with the assistance and advice of competent, independent legal counsel. (SIGNATURES FOLLOW ON NEXT PAGE) 11 CITY OF PORT TOWNSEND JEFFERSON COUNTY BOARD OF COMMISSIONERS David Timmons, City Manager Date David Sullivan, Chair Date SEAL: SEAL: ATTEST: ATTEST: Name: Date Carolyn Gallaway Date Title: Deputy Clerk of the Board APPROVED AS TO LEGAL FORM: APPROVED AS TO LEGAL FORM: Heidi Greenwood, Date Philip C. Hunsucker, Date City Attorney Chief Civil Deputy Prosecuting Attorney 12 APPENDIX A I.bs4utC+lra� A losibt F oehu t Ncltr� b Ho risia*r .706,140/304478r. T9 Cash Flow Reserve Goal $5,000 $30,000 10%of Budgeted New 10%of Budgeted New Revenue Revenue Revenue Stabilization Reserve $10,000 $60,000 20%of Budgeted New 20%of Budgeted New Goal Revenue Revenue Budgeted for Shelter Provider $35,055 5253,588 N/A $255,000 in 2019, increasing by CPI each year thereafter** Amount to Facilitator for $806 $4,858 1.75%of New Revenue 1.75%of New Revenue Allocation,Reporting& Coordination(1.75%of New Revenue) Amount to Facilitator for N/A $22,000 N/A N/A Preparing 2019 Five Year Plan (placeholder figure pending negotiations with UGN) Amount Eligible for Allocation $31,000 $159,340 N/A Remaining balance to Other Non-Profits&/or Peninsula Housing Authority via Facilitator per RA Amount Eligible for Allocation Remaining balance Remaining balance Remaining balance— N/A to Any Non-Profits&/or PHA via Facilitator per itA •s In 2019,approximate allocations shall be$200,000 for Shelter,$30,000 for Haines St.Cottages,and$25,000 for Housing Assistance 13 EXHIBIT 2 - City Draft rev. 08 22 18 INTERLOCAL COOPERATION AGREEMENT BETWEEN JEFFERSON COUNTY AND THE CITY OF PORT TOWNSEND TO SUPPORT AFFORDABLE HOUSING AND HOMELESS HOUSING PROGRAMS PURUSANT TO RCW 36.22.178, RCW 36.22.179, AND RCW 36.22.1791. This Agreement is entered into by and between Jefferson County("County")and the City of Port Townsend ("City") to jointly support affordable housing and housing homeless programs pursuant to RCW 36.22.178, RCW 36.22.179, and RCW 36.22.1791. WHEREAS, RCW 36.22.178 authorizes surcharges on each recorded document to support affordable housing for extremely low and very low-income households; and WHEREAS, RCW 36.22.178 requires an interlocal agreement between the City and the County to establish the housing needs and policies for housing activities to serve extremely low and very low-income households. WHEREAS, RCW 36.22.179 and RCW 36.22.1791 authorize surcharges on each recorded document to support housing homeless programs; and WHEREAS, RCW 36.22.179,and RCW 36.22.1791 allow the City and the County to jointly support affordable housing and housing homeless programs; and WHEREAS, the City and County desire to cooperatively support affordable housing and housing homeless programs; NOW THEREFORE, in consideration of the mutual benefits throughout the entire Jefferson County area, the City and the County agree as follows: A. The purpose of this agreement shall be to provide for the administration of the revenue generated from the recording surcharge authorized under the provisions RCW 36.22.178, RCW 36.22.179, and RCW 36.22.1791, as amended. B. Nonprofit and housing providers means public or private charitable organizations dedicated to assisting individuals with no or inadequate housing find emergency shelter or permanent housing. Assisting homeless or individuals with inadequate or unsafe housing need not be the organizations sole focus but should be a significant part of the organization's mission. C. RCW 36.22.178 Revenue. 1. That portion of the revenue generated for the surcharge that is allocable to affordable housing for very low-income individuals, as defined by RCW 36.22.178, as amended, in Jefferson County shall be collected by the Jefferson County Auditor and held in a single fund by the Jefferson County Treasurer. This fund will be separate from the fund for revenue generated by the surcharges authorized in RCW 36.22.179 and RCW 36.22.1791. 2. Representatives of the City and County, acting as a joint oversight board, will meet not less than twice per calendar year to discuss the expenditure of the revenue generated by RCW 36.22.178 and the affordable housing goals of the City and County. This meeting will constitute the joint board as required by RCW 39.34.030(4). a. The City and the County will each designate one elected official to serve on the joint oversight board. City and County staff members may support the board as requested by their respective elected officials. The City and the County representatives shall appoint a representative of the non-profit and housing providers to act as a third member of the board. The joint oversight board may establish its own rules and procedures for conducting meetings and add additional members provided that the joint oversight board will retain the balance of membership between the City and County. The joint oversight board will be subject to all Washington state laws, including the Open Public Meetings Act. b. The joint oversight board will cooperatively establish the county- wide housing needs and policies documents and will review and update those documents annually. The joint oversight board may cooperate with the local housing providers and non-profit organizations in establishing and reviewing the county-wide housing needs and policies documents. c. The joint oversight board will establish a policy for the amount and use of reserve RCW 36.22.178 funds. d. The joint oversight board will recommend a budget to the County Board of Commissioners for expending the RCW 36.22.178 funds consistent with requirements of RCW 36.322.178. The joint oversight board may establish this budget through a request for proposals or other public process. e. The County will provide the City and the joint oversight board with a detailed accounting of all expenditures of RCW 36.22.178 revenue. f. The City and the County will be responsible for their respective public records according the Public Records Act. D. RCW 36.22.179 and RCW 36.22.1791 Revenue. 1. The revenue generated by the surcharge on recorded documents that is allocable to homeless needs per RCW 36.22.179 and 36.22.1791 within Jefferson County shall be collected by the Jefferson County Auditor and held in a single fund by the Jefferson County Treasurer. This fund will be separate from the fund for revenue generated by the surcharge authorized by RCW 36.22.178 2. The City and the County will jointly contract with an administering agency or non-profit corporation or multiple such organizations to provide the following services using the funds: a. Create a homeless task force that will develop and implement a five-year homeless housing plan for Jefferson County's jurisdictional area, consistent with RCW 43.185C.050 and RCW 43.185C.160, as amended. i. The task force will include at least one elected representative from the City and one representative from the County. ii. The task force will meet not less than two times per year to discuss the operations of the emergency shelter and other homeless housing programs in Jefferson County. b. Operate an emergency shelter for homeless individuals in Jefferson County. c. Enhance existing homeless housing programs and develop new homeless facilities that are consistent with the needs of the five-year plan homeless housing plan. d. Facilitate the use of additional resources funds as they relate to the development of projects that will reduce homeless populations in Jefferson County. e. Ensure that any reports required by RCW 42.185C.045, as amended, or otherwise required by the State of Washington are submitted per the State guidelines. D. Each party shall indemnify, defend and hold harmless the other parties,their officers, agents, employees, and volunteers, from and against any and all claims, demands, damages,judgments, losses, liability and expense (including, attorney's fees), including but not limited to those for personal injury, death or property damage suffered or incurred by any person, by reason of or in the course of performing this agreement which is or alleged to be caused by or may directly or indirectly arise out of any act or omission of the party, its officers, employees, agents and volunteers. Except as provided above, in the event more than one party is responsible or negligent, each party shall be responsible in proportion to its negligence. E. Disputes Between the Parties. 1. Disputes shall be resolved by first attempting to negotiate a settlement between the parties. If settlement cannot be reached within 30 days of written notice of the dispute, the parties agree to submit the matter to non- binding mediation through the Peninsula Dispute Resolution Center. The mediator shall be selected by agreement of the parties and the cost of mediation shall be shared equally between the parties. 2. If the parties are unable to negotiate a resolution or refuse to accept a mediated resolution to a dispute,then the parties agree to binding arbitration by a three-person arbitration panel. 3. The prevailing party shall be entitled to reasonable attorney's fees and costs regardless of whether the party uses in-house or outside counsel. 4. The venue for any legal action shall be solely in the Kitsap County Superior Court. G. Modification, Withdrawal and Termination. This agreement may be modified, withdrawn, or terminated as follows: 1. This agreement may be modified or extended by the written agreement of the parties. 2. This agreement may be terminated upon ninety day's written notice by a party's legislative body to the other party. 3. The term of this agreement is for five years and will automatically renew for additional five year terms unless terminated as above. H. The parties do not anticipate acquiring any property in furtherance of this agreement. Signature Block