HomeMy WebLinkAbout111918_ra04 JEFFERSON COUNTY
BOARD OF COUNTY COMMISSIONERS
AGENDA REQUEST
TO: Board of County Commissioners
FROM: Philip Morley, County Administrator App
DATE: November 19, 2018
RE: Public Hearing on a Proposed Ordinance Regarding the Public Infrastructure Fund,
Repealing And Replacing Chapters 3.28 and 3.29 of Jefferson County Code, And
Amending Section 3.36.030 of Jefferson County Code
STATEMENT OF ISSUE: The Board of County Commissioners will conduct a public hearing on
Monday, November 19 at 11:00 A.M. in the Commissioners' Chambers, on a proposed
ordinance to revise existing County code governing the Public Infrastructure Fund in Chapter
3.28 of the Jefferson County Code (JCC), Chapter 3.29 JCC and Chapter 3.36 JCC.
ANALYSIS: A hearing notice was published twice in The Leader newspaper on November 7 and
November 14, 2018. A hearing notice was also posted on the County's web site.
State law (RCW 82.14.370) allows counties to impose a sales and use tax to finance public
facilities serving economic development purposes in rural counties and to finance personnel in
economic development offices. When imposed by a county, the local sales and use tax is deducted
from the amount of state sale and use tax, so the local tax has no impact on the buyer's total sales
tax bill at point of sale.The State law was first enacted in 1997, and was amended most recently in
2012. In 1998 Jefferson County opted to collect this local sales and use tax, and dedicated it to a
Public Infrastructure Fund, County Fund #306.
Jefferson County Code (JCC) directs the collection and expenditure of this sales and use tax for
public facilities in three chapters of the Code:
• Chapter 3.28 JCC- Distressed County Sales and Use Tax,
• Chapter 3.29 JCC- Public Infrastructure Fund, and
• Chapter 3.36 JCC -Tri-Area Sewer Fund.
Jefferson County has undertaken revising our code provisions to bring them into alignment with
changes in state statute, and to clarify, simplify and streamline the code. The proposed
ordinance that makes these revisions is enclosed as ATTACHMENT 1.
Updating county code is a county undertaking. However, in doing so, the county consulted with
sister jurisdictions on the Public Infrastructure Fund Board. Existing County Code created a
Public Infrastructure Fund Board comprised of citizen and government representatives to
advise the Board of County Commissioners on PIF expenditures, and as a means to fulfill the
1 of 3
County's responsibility under state statute to consult with those jurisdictions on PIF
expenditures.
The PIF Board met on August 29, October 1, and October 24, 2018, at which times county staff
presented potential PIF code revisions for feedback from the PIF Board members. During
discussions at the October 1 and October 24 meetings, members of the PIF Board suggested
refinements, a number of which have been incorporated into the proposed ordinance now
before the Board of County Commissioners. The ordinance now before the County
Commissioners was prepared by county staff—the PIF Board was not asked to make a
recommendation.
On October 15, 2018, staff briefed the Board of County Commissioners on a draft of the code,
and incorporated Commissioner feedback into the proposed ordinance.
The proposed ordinance would repeal Chapters 3.28 and 3.29 of County Code and replace them
with a new Chapter 3.28 of County Code, and modify Section 3.36.030 of County Code. The
proposed ordinance accomplishes the following major changes:
• Revise County Code to mirror State Statute, by:
o Update the use of funds to also allow financing personnel in economic development
offices, as provided in RCW 82.14.370;
o Update the definition of"Public Facility" to mirror the definition in state statute, by
adding "electrical facilities, natural gas facilities, research, testing, training, and
incubation facilities in innovation partnership zones designated under RCW
43.330.270" to the definition, as provided in RCW 82.14.370; and
o Add a seat to the PIF Board for a representative of the associate development
organization (ADO) serving the county to fulfill the requirement in RCW 82.14.370
that the county must consult with the ADO.
• Consolidate & shorten Chapters 3.28 and 3.29 into just one chapter;
• Incorporate current practice of how 50%of PIF funds are directed to the tri-area sewer
project, while clarifying that the tri-area sewer project can compete for additional PIF
fund awards as a "public facility."
• Require annual meetings of the PIF Board to review the status of prior awards and to
consider whether to invite additional project funding applications, and meet on other
occasions as necessary as determined by the chair of the PIF Board, who is a County
Commissioner.
• Allow PIF awards to be up to 80% of a project's cost.
• Remove administrative details from Code, allowing the PIF Board and the County the
ability to tailor project solicitations and evaluation criteria over time to match evolving
community needs and priorities, and defer the technical provisions of PIF grant and loan
agreements to the expertise of the PIF Administrator, legal staff and the County
Treasurer.
2 of 3
The proposed ordinance includes other streamlining changes and clarifications by staff, as well
as additional suggested changes reflecting comments offered by members of the PIF Board
during their reviews on October 1 and October 24, County Commissioner feedback on October
15, 2018, and subsequent legal review by the prosecuting attorney's office.
After the proposed ordinance was set for a public hearing, staff discovered a need to align
Section 3.28.030 "Use of Funds" with Section 3.28.120 "Eligible Projects," and recommends
adding in Section 3.28.030 that eligible public facilities and public facility projects are "of local
public agencies." A definition of"local public agency" should also be added to Section 3.28.050
"Definitions." ATTACHMENT 2 includes these recommended edits to the proposed ordinance,
and shows them in tracked changes.
Enclosed with this Agenda Request are the following materials:
• ATTACHMENT 1: Proposed Ordinance
• ATTACHMENT 2: Staff's Recommended Edits in Tracked Changes
FISCAL IMPACT: Insignificant.
RECOMMENDATION: Conduct the public hearing, deliberate on the full hearing record
including staff's recommended edits and the public testimony, and approve the proposed
ordinance, with or without changes.
REVIEWED BY:
///_57e
Philip Morey, County Admir�istc tor Date
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ATTACHMENT 1: Proposed Ordinance
COUNTY OF JEFFERSON
STATE OF WASHINGTON
An Ordinance Regarding the Public Infrastructure
Fund, Repealing And Replacing Chapters 3.28 and ]1— ORDINANCE NO.
3.29 of Jefferson County Code,And Amending
Section 3.36.030 of Jefferson County Code
WHEREAS, State law(RCW 82.14.370) allows counties to impose a sales and use tax to
finance public facilities serving economic development purposes in rural counties, and to finance
personnel in economic development offices; and,
WHEREAS, when imposed by a county, the local sales and use tax is deducted from the
amount of state sale and use tax, so the local tax has no impact on the buyer's total sales tax bill at
point of sale; and,
WHEREAS, the State law was first enacted in 1997, and was amended most recently in
2012; and,
WHEREAS, Jefferson County first elected to collect the local sales and use tax finance
public facilities in 1998 by enacting Ordinance No. 1-98, with subsequent amendments in 1999,
2007 and 2016, and since August 1, 2007 through July 31, 2032, the county continues to collect
the tax at a rate of 0.09 percent; and,
WHEREAS, Jefferson County wishes to revise county code provisions to bring county
code into alignment with changes in state statute, and to clarify, simplify and streamline the code;
and,
WHEREAS,Jefferson County consulted on the code revisions with members of the Public
Infrastructure Fund Board which includes representatives of the governments of the City of Port
Townsend, Port of Port Townsend, and Jefferson County Public Utility District No. 1; and also
consulted with a representative of EDC Team Jefferson;
NOW, THEREFORE, be it ordained by the county board of commissioners as follows:
Section 1. Repealing Chapter 3.28 and Chapter 3.29 of Jefferson County Code, and adopting a
new Chapter 3.28 Sales and Use Tax for Economic Development–Public Infrastructure Fund.
a. Chapter 3.28 of the Jefferson County Code entitled "Distressed County Sales And Use
Tax," and Jefferson County Ordinance Numbers 1-98, 4-99, 5-07, and 4-16, hereby are
repealed in their entirety
b. Chapter 3.29 of the Jefferson County Code entitled "Public Infrastructure Fund," and
Jefferson County Ordinance Number 9-06, hereby are repealed in their entirety.
Proposed Ordinance 1 of 10
c. A new Chapter 3.28 of the Jefferson County Code entitled "Sales and Use Tax for
Economic Development—Public Infrastructure Fund," as set forth in Appendix A, hereby
is adopted.
Section 2. Amending Section 3.36.030 of the Jefferson County Code entitled"PIF set aside for tri-
area sewer." Section 3.36.030 of the Jefferson County Code entitled "PIF set aside for tri-area
sewer," and Section 3 of Jefferson County Ordinance Number 19-04, hereby are amended as set
forth below.
3.36.030 PIF set aside for tri-area sewer.
Of the funds provided to the county under RCW 82.14.370 fifty percent (50%) shall be
dedicated to the tri-area sewer fund for the planning, design and construction of the tri-area
sewer system. In addition, after consultation with the Public Infrastructure Fund Board,
additional funds provided to the county under RCW 82.14.370 may be awarded for the tri-
area sewer system as an eligible public facility, pursuant to JCC 3.28.030(2)(a).
Section 3. Severability. The provisions of this Ordinance are declared separate and severable. If
any provision of this ordinance or its application to any person or circumstances is held invalid,
then the remainder of this ordinance or application of its provisions to other persons or
circumstances shall remain valid and unaffected.
Section 4. SEPA Categorical Exemption. This ordinance is categorically exempt from the State
Environmental Policy Act under WAC197-11-800(14)(b) and WAC 197-11-800(19).
Section 5. Effective Date. This ordinance is effective immediately upon adoption.
ADOPTED this day of 2018, at : a.m.
JEFFERSON COUNTY
BOARD OF COMMISSIONERS
David Sullivan, Chair
SEAL:
Kathleen Kler, Member
Kate Dean, Member
ATTEST: APPROVED AS TO FORM:
Carolyn Gallaway, Philip C. Hunsucker, Date
Deputy Clerk of the Board Chief Civil Deputy Prosecuting Attorney
Proposed Ordinance 2 of 10
APPENDIX A
Chapter 3.28 SALES AND USE TAX FOR ECONOMIC DEVELOPMENT—
PUBLIC INFRASTRUCTURE FUND
Sections:
Article I. Sales and Use Tax & Creation of Public Infrastructure Fund
3.28.010 Imposed.
3.28.020 Establishment of Public Infrastructure Fund.
3.28.030 Use of Funds.
3.28.040 Effective Date—Expiration Date.
Article II. Administration of Public Infrastructure Fund
3.28.050 Definitions.
3.28.060 Administration of Fund.
3.28.070 Consultation.
3.28.080 Public Infrastructure Fund Board.
3.28.090 Composition of Public Infrastructure Fund Board.
3.28.100 Public Infrastructure Fund Board Meetings.
3.28.110 Project Evaluation Criteria for Use By Public Infrastructure Fund Board.
3.28.120 Eligible Projects.
3.28.130 Grant and Loan Parameters.
3.28.140 Modifying Grant and Loan Terms.
3.28.150 Application Review Process— Staff Functions.
3.28.160 Severability.
3.28.170 Venue.
Proposed Ordinance 3 of 10
Article 1. Sales and Use Tax and Creation of Public Infrastructure Fund
3.28.010 Sales and Use Tax Imposed.
(1) There hereby is imposed by this chapter a sales and use tax for economic development
pursuant to RCW 82.14.370 upon every taxable event, as defined in Chapter 82.14 RCW,
occurring within the county. The tax shall be imposed upon and collected from those
persons from whom the state sales or use tax is collected pursuant to Chapters 82.08 and
82.12 RCW. This tax shall be in addition to other sales and use tax imposed by the county.
(2) The rate of tax imposed by this chapter shall be 0.09 percent of the selling price in the case
of a sales tax or the value of the article used in the case of a use tax, or if state statute is
revised, the rate of tax shall be the maximum rate authorized by statute.
(3) The tax imposed by this chapter shall be collected by the state, and shall be credited against
the amount of sales or use tax due to the state upon the same taxable event under Chapter
82.08 RCW or Chapter 82.12 RCW.
(4) The tax imposed by this chapter shall be administered and collected in accordance with
RCW 82.14.050. The chair of the board of county commissioners is hereby authorized to
and directed to execute contracts with the Washington State Department of Revenue that
may be necessary to provide for the administration or collection of the tax.
3.28.020 Establishment of Public Infrastructure Fund.
There hereby is created the Public Infrastructure Fund. Monies collected pursuant to this chapter
shall be deposited in the PIF by the county treasurer and shall be administered and dispersed as
provided for by law. The fund balance in the PIF may be invested by the county treasurer and
any interest earned,net after the county treasurer's fees as provided for by law, shall be
deposited in the PIF as well.
3.28.030 Use of Funds.
(1) Monies deposited in the PIF only shall be used for purposes as authorized by the laws of
the state of Washington and this Chapter.
(2) PIF funds may be used for the following purposes:
(a) To finance eligible public facilities serving economic development purposes;
(b) To finance the planning, design and construction of the tri-area sewer system using
50 percent of monies collected under this chapter to the tri-area sewer fund,
pursuant to JCC 3.36.030. In addition, after consultation with the Public
Infrastructure Fund Board, additional Public Infrastructure Funds may be awarded
to the tri-area sewer system as an eligible public facility, pursuant to JCC
3.28.030(2)(a).
(c) To pay or secure the payment of bonds issued for eligible public facility projects
under this chapter;
(d) To finance personnel in economic development offices; and
(e) To pay the County's cost for administering the PIF, charged to the PIF in
accordance with the County's administrative policies and cost allocation plan, not
to exceed five percent of annual PIF revenues.
Proposed Ordinance 4 of 10
(3) No new projects funded with money collected under this section may be for justice system
facilities.
3.28.040 Effective Date—Expiration Date.
The sales and use tax codified in this chapter took effect August 1, 2007, and, unless extended by
a change in state law, shall expire as provided in RCW 82.14.370(4)(b) 25 years after the date
the 0.09 percent tax rate was first imposed by the county, namely on July 31, 2032. If extended
by state law, the expiration date shall be extended to the latest date authorized by the extension
per state law.
Article II. Administration of Public Infrastructure Fund
3.28.050 Definitions.
(1) "Economic development purposes"has the same meaning as in RCW 82.14.370(3)(c)(ii).
(2) "EDC"means the Economic Development Council Team Jefferson or the Associate
Development Organization designated by the county to Washington State.
(3) "Emergent opportunity" means a project tied to an opportunity to attract or retain
businesses or jobs or to leverage other funding for a project in Jefferson County, that has a
short time window for being successful in that opportunity.
(4) "In-kind expenses"means donated or loaned real or personal property, volunteer services,
and employee services.
(5) "Local government pool rate" means the rate of interest charged for loans as determined by
the Local Government Investment Pool (LGIP) enacted by RCW 43.250.010.
(6) "PIF" means the Public Infrastructure Fund.
(7) "PIF Administrator"means the county administrator, or his/her designee, who shall carry
out the duties assigned within this chapter as the administrator, and any other duties
relating to the PIF assigned by the board of commissioners.
(8) "PIF Board" means the public infrastructure fund board.
(9) "Project" means the planned design, permitting and/or construction of a public facility that
meets the eligibility criteria of RCW 82.14.370.
(10) "Public facility" means bridges, roads, domestic and industrial water facilities, sanitary
sewer facilities, earth stabilization, storm sewer facilities, railroads, electrical facilities,
natural gas facilities, research, testing, training, and incubation facilities in innovation
partnership zones designated under RCW 43.330.270, buildings, structures,
telecommunications infrastructure, transportation infrastructure, or commercial
infrastructure, and port facilities, if listed as an item in the officially adopted county overall
economic development plan, or the economic development section of the county's
comprehensive plan, or the comprehensive plan of the incorporated area(s) located within
Jefferson County.
(11) "RCW" means the Revised Code of Washington as it now exists or may be amended in the
future.
Proposed Ordinance 5 of 10
3.28.060 Administration of Fund.
The PIF shall be administered by the board of county commissioners through the PIF
Administrator or designee in conformance with state law and the Jefferson County Code.
However, the Jefferson County treasurer shall assume the responsibility for administering loans.
3.28.070 Consultation.
In implementing this chapter, the county shall consult with all cities, towns, and port districts
within the county, and the associate development organization serving the county. This may be
accomplished by consulting with the PIF Board.
3.28.080 Public Infrastructure Fund Board
(1) Prior to awarding PIF funds to any project , the county shall consult with the PIF Board for
its recommendations to ensure that the expenditure meets the goals and the requirements of
RCW 82.14.370 and this Chapter. The PIF Board's recommendations shall be forwarded
to the board of county commissioners, who shall have final authority to approve, modify or
deny any project applications and the terms of any PIF grant or loan.
(2) The PIF Board may make recommendations for improving the administration of the PIF to
the board of county commissioners.
3.28.090 Composition of the Public Infrastructure Fund Board.
(1) The PIF Board shall consist of up to eight members:
(a) The Jefferson County Public Utility District No. 1, the City of Port Townsend, the
Port of Port Townsend, and Jefferson County shall each have the right to have one
elected official or their designee to serve on the PIF Board.
(b) The associate development organization (ADO) serving the county shall have the
right to recommend a member of the ADO board or ADO staff to serve on the PIF
Board.
(c) Each entity may each also recommend appointment of one alternate to participate in
the absence of their designated member.
(d) The remaining three seats shall be considered at-large positions and will be filled by
the board of county commissioners as follows: one representative from each
commissioner district will be appointed by the board of county commissioners.
(e) The board of county commissioners shall have final authority to approve and
appoint all members and alternates of the PIF Board. The Jefferson County
representative shall chair the PIF Board.
(2) Additional Criteria for PIF Board Membership. Members of the PIF Board should possess
the technical knowledge necessary to evaluate project proposals based on their technical
and economic development merits. Any person acting pursuant to the PIF Board shall
comply with all state and local ethical requirements and conflict of interest laws.
Proposed Ordinance 6 of 10
3.28.100 Public Infrastructure Fund Board Meetings.
(1) Meetings of the PIF Board shall be conducted in accordance with state law including the
Open Public Meetings Act.
(2) The PIF Board shall meet at least annually to review the status of prior awards and to
consider whether to invite additional project funding applications, and shall meet on other
occasions as necessary as determined by the chair of the PIF Board.
(3) All actions by the PIF Board shall be expressed by adoption of a motion and/or resolution.
All resolutions, once adopted in final written form, shall be signed as approved by the chair
on behalf of the PIF Board. Meeting minutes of all actions taken shall be kept, subject to
approval by the PIF Board at a subsequent meeting.
(4) The PIF Board may transact business via teleconference. Teleconference meetings shall be
announced in accordance with state law. A speakerphone shall be utilized during the public
meeting to allow members of the public to hear PIF Board proceedings and, at the
discretion of the chair, participate in discussions by PIF Board members.
(5) No representations utilizing the name of the public infrastructure fund board to endorse or
oppose any issue shall originate from any member of the PIF Board, unless a motion or
resolution passed by a majority of the members of the PIF Board approves such position.
(6) Quorum. A quorum shall be considered present for a PIF Board meeting when at least five
members are present.
(7) Voting. Voting shall be by voice vote. In lieu of voice vote, any member may request a roll
call vote. A majority of affirmative votes by PIF Board members present at the meeting
that has a quorum is necessary for the exercise of any power or function of the PIF Board.
3.28.110 Project Evaluation Criteria for Use by PIF Board.
The priority of the PIF is to create an environment that encourages the creation and retention of
jobs and businesses by stimulating private investment that will, in turn, improve the economy of
the residents of the incorporated and unincorporated areas of Jefferson County. Grants and loans
for projects shall only be given for public facilities that serve an economic development purpose
in the county. The PIF Board shall consider the following criteria to evaluate projects:
(1) Public facility projects that have a higher probability of successfully creating or retaining
significant numbers of jobs including unskilled, semi-skilled, and skilled jobs; or that have
a large job creation-to-PIF funding ratio.
(2) Projects that leverage significant outside funding and/or partnerships.
(3) Projects that would develop, re-develop, in-fill or expand existing or planned infrastructure
systems necessary to create or retain jobs.
(4) Projects with a higher match percentage. The match may include project-related
expenditures for a period up to one year prior to the request for funding.
(5) Projects that will retain or create jobs or benefit the economy in priority economic sectors
or economic centers in the incorporated or unincorporated areas of Jefferson County.
(6) Projects that also successfully mitigate for significant adverse environmental impacts, if
applicable.
Proposed Ordinance 7 of 10
(7) Consideration may be given for critical timing; emergent opportunities;
(8) Consistency with and implementation of an adopted countywide economic development
plan or strategy, the economic element of an adopted Comprehensive Plan, or an adopted
Comprehensive Economic Development Strategy (CEDS);
(9) Other criteria as the PIF Board may determine, consistent with RCW 82.14.370, and the
adopted Comprehensive Economic Development Strategy (CEDS) or the adopted
Comprehensive Plan of the jurisdiction where a project is located.
When recommending for and against projects for funding from the PIF for consideration by the
board of county commissioners, the PIF Board will report its criteria, and its evaluation of each
project.
3.28.120 Eligible Projects.
To be eligible for PIF financing, projects must:
(1) Meet the requirements of RCW 82.14.370;
(2) Comply with federal, state and local laws;
(3) Be consistent with the economic development section of the county comprehensive plan, or
the comprehensive plan of the incorporated area(s) of Jefferson County;
(4) Be a project of a local public agency within Jefferson County, and that agency shall also be
the recipient of PIF financing. All project applications shall include a resolution of support
adopted by the governing body of the public agency applying for the PIF funds.
3.28.130 Grant and Loan Parameters.
Project grants and loans shall meet the following parameters:
(1) PIF funds provided for public facility project applications shall not exceed eighty percent
(80%) of the project cost. The cost may include in-kind expenses.
(2) If a loan, the loan term of the loan shall not exceed the useful life of the asset.
(3) Subject to final approval by the board of county commissioners, the terms for all grant
and/or loan agreements are subject to negotiation with the applicant, in a form approved by
the county prosecuting attorney, and in the case of loans, the county treasurer as well.
(4) The rate of interest for a loan will be a mutually agreed rate, which may consider the local
government pool rate and the US Department of the Treasury daily Treasury bill yield
curve rates for the term of the intended loan. The loan may be subject to a reasonable loan
origination fee. PIF loan principal and interest payments will be reinvested in the PIF,
provided that the interest shall first be subject to a Treasurer's Investment Service Fee in
accordance with RCW 36.29.020.
(5) All customary and usual loan fees may be charged to applicants including, but not limited
to, title insurance, escrow, attorney fees, recording fees, and loan origination fee.
(6) Loans will be general obligations of the eligible PIF fund recipient, committing its full faith
and credit. Care will be taken that proper borrowing or grant-funding resolutions are
obtained. Loans shall not be made which will cause the jurisdiction to exceed its legal
borrowing limits.
Proposed Ordinance 8 of 10
(7) Grant funds may be disbursed upon completion of the project, or as draws upon completion
of pre-determined phases of the project, and disbursements should be consistent with
progress of the project including the commitment of other necessary funding sources.
(8) The PIF funds may be used by eligible public entities as a local match against other grants
and loans, such as the Public Works Assistance Account, provided the project fulfills the
requirements of RCW 82.14.370.
3.28.140 Modifying grant and loan terms.
(1) There may be circumstances that warrant modification of the original terms of the grant or
loan. The grantee or borrower may apply for modification with supporting information
justifying the request for modification and supporting documentation. Final approval rests
with the board of county commissioners.
(2) The PIF Administrator or the county treasurer may recommend corrective action to the
terms of a loan or grant to the board of county commissioners without a request from the
borrower or grantee, but shall give the borrower or grantee 14 days' notice of any such
corrective action.
3.28.150 Application review process— Staff functions.
(1) The PIF Administrator, or his/her designee, shall help prepare application forms and review
submitted proposals for program objectives, eligibility requirements, selection criteria, and
loan terms with any potential applicant. Project applicants submitting incomplete
documentation will be noticed within 10 business days of receipt. The PIF Administrator
may request any additional information not submitted with the application that the PIF
Administrator deems necessary for the PIF Board to review the application.
(2) A recommendation by the PIF Board to approve or deny a loan or grant application is not
appealable; however, an applicant may submit a proposal more than once.
(3) Treasurer's Office Services. The county treasurer's office shall be responsible for
monitoring all loan repayment schedules and performance and for reporting delinquent
loans. Any loan that is in excess of 30 days past due must be brought to the attention of the
PIF Administrator. In the case that the county treasurer's office learns of adverse
circumstances that may affect the loan, the county treasurer's office shall notify the PIF
Administrator.
(4) In the event of serious failure to comply with the terms and conditions of the program or
financial default, the PIF Administrator shall call an emergency meeting of the PIF Board
to consider remedial steps. Recommendations of the PIF Board regarding noncomplying
loans and grants shall be in writing and appealable to the board of county commissioners.
Proposed Ordinance 9 of 10
3.28.160 Severability.
If any provision of this chapter or its application to any person or circumstance is held invalid,
the remainder of this chapter or the application of the provisions to other persons or
circumstances are not affected.
3.28.170 Venue.
For any lawsuit arising from this chapter, any loan granted by the county board of commissioners
from PIF funds, or any decision of the PIF Board, venue shall lie only in the superior court in
and for Jefferson County.
Proposed Ordinance 10 of 10
ATTACHMENT 2: Staff's Recommended Edits in Tracked Changes
COUNTY OF JEFFERSON
STATE OF WASHINGTON
An Ordinance Regarding the Public Infrastructure
Fund, Repealing And Replacing Chapters 3.28 and ORDINANCE NO.
3.29 of Jefferson County Code, And Amending
Section 3.36.030 of Jefferson County Code
WHEREAS, State law(RCW 82.14.370) allows counties to impose a sales and use tax to
finance public facilities serving economic development purposes in rural counties, and to finance
personnel in economic development offices; and,
WHEREAS, when imposed by a county, the local sales and use tax is deducted from the
amount of state sale and use tax, so the local tax has no impact on the buyer's total sales tax bill at
point of sale; and,
WHEREAS, the State law was first enacted in 1997, and was amended most recently in
2012; and,
WHEREAS, Jefferson County first elected to collect the local sales and use tax finance
public facilities in 1998 by enacting Ordinance No. 1-98, with subsequent amendments in 1999,
2007 and 2016, and since August 1, 2007 through July 31, 2032, the county continues to collect
the tax at a rate of 0.09 percent; and,
WHEREAS, Jefferson County wishes to revise county code provisions to bring county
code into alignment with changes in state statute, and to clarify, simplify and streamline the code;
and,
WHEREAS,Jefferson County consulted on the code revisions with members of the Public
Infrastructure Fund Board which includes representatives of the governments of the City of Port
Townsend, Port of Port Townsend, and Jefferson County Public Utility District No. 1; and also
consulted with a representative of EDC Team Jefferson;
NOW, THEREFORE, be it ordained by the county board of commissioners as follows:
Section 1. Repealing Chapter 3.28 and Chapter 3.29 of Jefferson County Code, and adopting a
new Chapter 3.28 Sales and Use Tax for Economic Development—Public Infrastructure Fund.
d. Chapter 3.28 of the Jefferson County Code entitled "Distressed County Sales And Use
Tax," and Jefferson County Ordinance Numbers 1-98, 4-99, 5-07, and 4-16, hereby are
repealed in their entirety
e. Chapter 3.29 of the Jefferson County Code entitled "Public Infrastructure Fund," and
Jefferson County Ordinance Number 9-06, hereby are repealed in their entirety.
Recommended Edits—Tracked Changes 1 of 10
f. A new Chapter 3.28 of the Jefferson County Code entitled "Sales and Use Tax for
Economic Development—Public Infrastructure Fund," as set forth in Appendix A, hereby
is adopted.
Section 2. Amending Section 3.36.030 of the Jefferson County Code entitled"PIF set aside for tri-
area sewer." Section 3.36.030 of the Jefferson County Code entitled "PIF set aside for tri-area
sewer," and Section 3 of Jefferson County Ordinance Number 19-04, hereby are amended as set
forth below.
3.36.030 PIF set aside for tri-area sewer.
Of the funds provided to the county under RCW 82.14.370 fifty percent (50%) shall be
dedicated to the tri-area sewer fund for the planning, design and construction of the tri-area
sewer system. In addition, after consultation with the Public Infrastructure Fund Board,
additional funds provided to the county under RCW 82.14.370 may be awarded for the tri-
area sewer system as an eligible public facility, pursuant to JCC 3.28.030(2)(a).
Section 3. Severability. The provisions of this Ordinance are declared separate and severable. If
any provision of this ordinance or its application to any person or circumstances is held invalid,
then the remainder of this ordinance or application of its provisions to other persons or
circumstances shall remain valid and unaffected.
Section 4. SEPA Categorical Exemption. This ordinance is categorically exempt from the State
Environmental Policy Act under WAC 197-11-800(14)(b) and WAC 197-11-800(19).
Section 5. Effective Date. This ordinance is effective immediately upon adoption.
ADOPTED this day of 2018, at : a.m.
JEFFERSON COUNTY
BOARD OF COMMISSIONERS
David Sullivan, Chair
SEAL:
Kathleen Kier, Member
Kate Dean, Member
ATTEST: APPROVED AS TO FORM:
Carolyn Gallaway, Philip C. Hunsucker, Date
Deputy Clerk of the Board Chief Civil Deputy Prosecuting Attorney
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APPENDIX A
Chapter 3.28 SALES AND USE TAX FOR ECONOMIC DEVELOPMENT—
PUBLIC INFRASTRUCTURE FUND
Sections:
Article I. Sales and Use Tax & Creation of Public Infrastructure Fund
3.28.010 Imposed.
3.28.020 Establishment of Public Infrastructure Fund.
3.28.030 Use of Funds.
3.28.040 Effective Date—Expiration Date.
Article II. Administration of Public Infrastructure Fund
3.28.050 Definitions.
3.28.060 Administration of Fund.
3.28.070 Consultation.
3.28.080 Public Infrastructure Fund Board.
3.28.090 Composition of Public Infrastructure Fund Board.
3.28.100 Public Infrastructure Fund Board Meetings.
3.28.110 Project Evaluation Criteria for Use By Public Infrastructure Fund Board.
3.28.120 Eligible Projects.
3.28.130 Grant and Loan Parameters.
3.28.140 Modifying Grant and Loan Terms.
3.28.150 Application Review Process— Staff Functions.
3.28.160 Severability.
3.28.170 Venue.
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Article I. Sales and Use Tax and Creation of Public Infrastructure Fund
3.28.010 Sales and Use Tax Imposed.
(5) There hereby is imposed by this chapter a sales and use tax for economic development
pursuant to RCW 82.14.370 upon every taxable event, as defined in Chapter 82.14 RCW,
occurring within the county. The tax shall be imposed upon and collected from those
persons from whom the state sales or use tax is collected pursuant to Chapters 82.08 and
82.12 RCW. This tax shall be in addition to other sales and use tax imposed by the county.
(6) The rate of tax imposed by this chapter shall be 0.09 percent of the selling price in the case
of a sales tax or the value of the article used in the case of a use tax, or if state statute is
revised, the rate of tax shall be the maximum rate authorized by statute.
(7) The tax imposed by this chapter shall be collected by the state, and shall be credited against
the amount of sales or use tax due to the state upon the same taxable event under Chapter
82.08 RCW or Chapter 82.12 RCW.
(8) The tax imposed by this chapter shall be administered and collected in accordance with
RCW 82.14.050. The chair of the board of county commissioners is hereby authorized to
and directed to execute contracts with the Washington State Department of Revenue that
may be necessary to provide for the administration or collection of the tax.
3.28.020 Establishment of Public Infrastructure Fund.
There hereby is created the Public Infrastructure Fund. Monies collected pursuant to this chapter
shall be deposited in the PIF by the county treasurer and shall be administered and dispersed as
provided for by law. The fund balance in the PIF may be invested by the county treasurer and
any interest earned, net after the county treasurer's fees as provided for by law, shall be
deposited in the PIF as well.
3.28.030 Use of Funds.
(4) Monies deposited in the PIF only shall be used for purposes as authorized by the laws of
the state of Washington and this Chapter.
(5) PIF funds may be used for the following purposes:
(f) To finance eligible public facilities of local public agencies serving economic
development purposes;
(g) To finance the planning, design and construction of the tri-area sewer system using
50 percent of monies collected under this chapter to the tri-area sewer fund,
pursuant to JCC 3.36.030. In addition, after consultation with the Public
Infrastructure Fund Board, additional Public Infrastructure Funds may be awarded
to the tri-area sewer system as an eligible public facility, pursuant to JCC
3.28.030(2)(a).
(h) To pay or secure the payment of bonds issued for eligible public facility projects of
local public agencies under this chapter;
(i) To finance personnel in economic development offices; and
(j) To pay the County's cost for administering the PIF, charged to the PIF in
accordance with the County's administrative policies and cost allocation plan, not
to exceed five percent of annual PIF revenues.
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(6) No new projects funded with money collected under this section may be for justice system
facilities.
3.28.040 Effective Date—Expiration Date.
The sales and use tax codified in this chapter took effect August 1, 2007, and, unless extended by
a change in state law, shall expire as provided in RCW 82.14.370(4)(b) 25 years after the date
the 0.09 percent tax rate was first imposed by the county, namely on July 31, 2032. If extended
by state law, the expiration date shall be extended to the latest date authorized by the extension
per state law.
Article H. Administration of Public Infrastructure Fund
3.28.050 Definitions.
(12) "Economic development purposes" has the same meaning as in RCW 82.14.370(3)(c)(ii).
(13) "EDC"means the Economic Development Council Team Jefferson or the Associate
Development Organization designated by the county to Washington State.
(14) "Emergent opportunity" means a project tied to an opportunity to attract or retain
businesses or jobs or to leverage other funding for a project in Jefferson County, that has a
short time window for being successful in that opportunity.
(15) "In-kind expenses" means donated or loaned real or personal property, volunteer services,
and employee services.
(16) "Local government pool rate" means the rate of interest charged for loans as determined by
the Local Government Investment Pool (LGIP) enacted by RCW 43.250.010.
(17) "Local public agency" means any agency, political subdivision, or unit of local government
of this state including, but not limited to, municipal corporations, quasi-municipal
corporations, special purpose districts, and local service districts; and any Indian tribe
recognized as such by the federal government.
(17)(18) "PIF"means the Public Infrastructure Fund.
(-1-8)(19) "PIF Administrator"means the county administrator, or his/her designee, who
shall carry out the duties assigned within this chapter as the administrator, and any other
duties relating to the PIF assigned by the board of commissioners.
(-1-9)(20) "PIF Board" means the public infrastructure fund board.
(20-)(21) "Project" means the planned design, permitting and/or construction of a public
facility that meets the eligibility criteria of RCW 82.14.370.
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(21)(22) "Public facility" means bridges, roads, domestic and industrial water facilities,
sanitary sewer facilities, earth stabilization, storm sewer facilities, railroads, electrical
facilities, natural gas facilities, research, testing, training, and incubation facilities in
innovation partnership zones designated under RCW 43.330.270, buildings, structures,
telecommunications infrastructure, transportation infrastructure, or commercial
infrastructure, and port facilities, if listed as an item in the officially adopted county overall
economic development plan, or the economic development section of the county's
comprehensive plan, or the comprehensive plan of the incorporated area(s) located within
Jefferson County.
(22)(23) "RCW"means the Revised Code of Washington as it now exists or may be
amended in the future.
3.28.0100 Administration of Fund.
The PIF shall be administered by the board of county commissioners through the PIF
Administrator or designee in conformance with state law and the Jefferson County Code.
However, the Jefferson County treasurer shall assume the responsibility for administering loans.
3.28.0110 Consultation.
In implementing this chapter, the county shall consult with all cities, towns, and port districts
within the county, and the associate development organization serving the county. This may be
accomplished by consulting with the PIF Board.
3.28.0120 Public Infrastructure Fund Board
(3) Prior to awarding PIF funds to any project , the county shall consult with the PIF Board for
its recommendations to ensure that the expenditure meets the goals and the requirements of
RCW 82.14.370 and this Chapter. The PIF Board's recommendations shall be forwarded
to the board of county commissioners, who shall have final authority to approve, modify or
deny any project applications and the terms of any PIF grant or loan.
(4) The PIF Board may make recommendations for improving the administration of the PIF to
the board of county commissioners.
3.28.0130 Composition of the Public Infrastructure Fund Board.
(3) The PIF Board shall consist of up to eight members:
(f) The Jefferson County Public Utility District No. 1, the City of Port Townsend, the
Port of Port Townsend, and Jefferson County shall each have the right to have one
elected official or their designee to serve on the PIF Board.
(g) The associate development organization (ADO) serving the county shall have the
right to recommend a member of the ADO board or ADO staff to serve on the PIF
Board.
(h) Each entity may each also recommend appointment of one alternate to participate in
the absence of their designated member.
(i) The remaining three seats shall be considered at-large positions and will be filled by
the board of county commissioners as follows: one representative from each
commissioner district will be appointed by the board of county commissioners.
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(j) The board of county commissioners shall have final authority to approve and
appoint all members and alternates of the PIF Board. The Jefferson County
representative shall chair the PIF Board.
(4) Additional Criteria for PIF Board Membership. Members of the PIF Board should possess
the technical knowledge necessary to evaluate project proposals based on their technical
and economic development merits. Any person acting pursuant to the PIF Board shall
comply with all state and local ethical requirements and conflict of interest laws.
3.28.140 Public Infrastructure Fund Board Meetings.
(8) Meetings of the PIF Board shall be conducted in accordance with state law including the
Open Public Meetings Act.
(9) The PIF Board shall meet at least annually to review the status of prior awards and to
consider whether to invite additional project funding applications, and shall meet on other
occasions as necessary as determined by the chair of the PIF Board.
(10) All actions by the PIF Board shall be expressed by adoption of a motion and/or resolution.
All resolutions, once adopted in final written form, shall be signed as approved by the chair
on behalf of the PIF Board. Meeting minutes of all actions taken shall be kept, subject to
approval by the PIF Board at a subsequent meeting.
(11) The PIF Board may transact business via teleconference. Teleconference meetings shall be
announced in accordance with state law. A speakerphone shall be utilized during the public
meeting to allow members of the public to hear PIF Board proceedings and, at the
discretion of the chair, participate in discussions by PIF Board members.
(12) No representations utilizing the name of the public infrastructure fund board to endorse or
oppose any issue shall originate from any member of the PIF Board, unless a motion or
resolution passed by a majority of the members of the PIF Board approves such position.
(13) Quorum. A quorum shall be considered present for a PIF Board meeting when at least five
members are present.
(14) Voting. Voting shall be by voice vote. In lieu of voice vote, any member may request a roll
call vote. A majority of affirmative votes by PIF Board members present at the meeting
that has a quorum is necessary for the exercise of any power or function of the PIF Board.
3.28.150 Project Evaluation Criteria for Use by PIF Board.
The priority of the PIF is to create an environment that encourages the creation and retention of
jobs and businesses by stimulating private investment that will, in turn, improve the economy of
the residents of the incorporated and unincorporated areas of Jefferson County. Grants and loans
for projects shall only be given for public facilities that serve an economic development purpose
in the county. The PIF Board shall consider the following criteria to evaluate projects:
(10) Public facility projects that have a higher probability of successfully creating or retaining
significant numbers of jobs including unskilled, semi-skilled, and skilled jobs; or that have
a large job creation-to-PIF funding ratio.
(11) Projects that leverage significant outside funding and/or partnerships.
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(12) Projects that would develop, re-develop, in-fill or expand existing or planned infrastructure
systems necessary to create or retain jobs.
(13) Projects with a higher match percentage. The match may include project-related
expenditures for a period up to one year prior to the request for funding.
(14) Projects that will retain or create jobs or benefit the economy in priority economic sectors
or economic centers in the incorporated or unincorporated areas of Jefferson County.
(15) Projects that also successfully mitigate for significant adverse environmental impacts, if
applicable.
(16) Consideration may be given for critical timing; emergent opportunities;
(17) Consistency with and implementation of an adopted countywide economic development
plan or strategy, the economic element of an adopted Comprehensive Plan, or an adopted
Comprehensive Economic Development Strategy (CEDS);
(18) Other criteria as the PIF Board may determine, consistent with RCW 82.14.370, and the
adopted Comprehensive Economic Development Strategy (CEDS) or the adopted
Comprehensive Plan of the jurisdiction where a project is located.
When recommending for and against projects for funding from the PIF for consideration by the
board of county commissioners, the PIF Board will report its criteria, and its evaluation of each
project.
3.28.160 Eligible Projects.
To be eligible for PIF financing, projects must:
(5) Meet the requirements of RCW 82.14.370;
(6) Comply with federal, state and local laws;
(7) Be consistent with the economic development section of the county comprehensive plan, or
the comprehensive plan of the incorporated area(s) of Jefferson County;
(8) Be a project of a local public agency within Jefferson County, and that agency shall also be
the recipient of PIF financing. All project applications shall include a resolution of support
adopted by the governing body of the public agency applying for the PIF funds.
3.28.170 Grant and Loan Parameters.
Project grants and loans shall meet the following parameters:
(9) PIF funds provided for public facility project applications shall not exceed eighty percent
(80%) of the project cost. The cost may include in-kind expenses.
(10) If a loan, the loan term of the loan shall not exceed the useful life of the asset.
(11) Subject to final approval by the board of county commissioners, the terms for all grant
and/or loan agreements are subject to negotiation with the applicant, in a form approved by
the county prosecuting attorney, and in the case of loans, the county treasurer as well.
(12) The rate of interest for a loan will be a mutually agreed rate, which may consider the local
government pool rate and the US Department of the Treasury daily Treasury bill yield
curve rates for the term of the intended loan. The loan may be subject to a reasonable loan
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origination fee. PIF loan principal and interest payments will be reinvested in the PIF,
provided that the interest shall first be subject to a Treasurer's Investment Service Fee in
accordance with RCW 36.29.020.
(13) All customary and usual loan fees may be charged to applicants including, but not limited
to, title insurance, escrow, attorney fees, recording fees, and loan origination fee.
(14) Loans will be general obligations of the eligible PIF fund recipient, committing its full faith
and credit. Care will be taken that proper borrowing or grant-funding resolutions are
obtained. Loans shall not be made which will cause the jurisdiction to exceed its legal
borrowing limits.
(15) Grant funds may be disbursed upon completion of the project, or as draws upon completion
of pre-determined phases of the project, and disbursements should be consistent with
progress of the project including the commitment of other necessary funding sources.
(16) The PIF funds may be used by eligible public entities as a local match against other grants
and loans, such as the Public Works Assistance Account, provided the project fulfills the
requirements of RCW 82.14.370.
3.28.140 Modifying grant and loan terms.
(3) There may be circumstances that warrant modification of the original terms of the grant or
loan. The grantee or borrower may apply for modification with supporting information
justifying the request for modification and supporting documentation. Final approval rests
with the board of county commissioners.
(4) The PIF Administrator or the county treasurer may recommend corrective action to the
terms of a loan or grant to the board of county commissioners without a request from the
borrower or grantee, but shall give the borrower or grantee 14 days' notice of any such
corrective action.
3.28.150 Application review process— Staff functions.
(5) The PIF Administrator, or his/her designee, shall help prepare application forms and review
submitted proposals for program objectives, eligibility requirements, selection criteria, and
loan terms with any potential applicant. Project applicants submitting incomplete
documentation will be noticed within 10 business days of receipt. The PIF Administrator
may request any additional information not submitted with the application that the PIF
Administrator deems necessary for the PIF Board to review the application.
(6) A recommendation by the PIF Board to approve or deny a loan or grant application is not
appealable; however, an applicant may submit a proposal more than once.
(7) Treasurer's Office Services. The county treasurer's office shall be responsible for
monitoring all loan repayment schedules and performance and for reporting delinquent
loans. Any loan that is in excess of 30 days past due must be brought to the attention of the
PIF Administrator. In the case that the county treasurer's office learns of adverse
circumstances that may affect the loan, the county treasurer's office shall notify the PIF
Administrator.
(8) In the event of serious failure to comply with the terms and conditions of the program or
financial default, the PIF Administrator shall call an emergency meeting of the PIF Board
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to consider remedial steps. Recommendations of the PIF Board regarding noncomplying
loans and grants shall be in writing and appealable to the board of county commissioners.
3.28.160 Severability.
If any provision of this chapter or its application to any person or circumstance is held invalid,
the remainder of this chapter or the application of the provisions to other persons or
circumstances are not affected.
3.28.170 Venue.
For any lawsuit arising from this chapter, any loan granted by the county board of commissioners
from PIF funds, or any decision of the PIF Board, venue shall lie only in the superior court in
and for Jefferson County.
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