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HomeMy WebLinkAbout012120_ra01 JEFFERSON COUNTY BOARD OF COUNTY COMMISSIONERS AGENDA REQUEST TO: Board of Commissioners ,„/-7 ';t FROM: Philip Morley, County Administrator "I" DATE: January 21, 2020 RE: Potential Adoption of Amendment No. 1 to the Interlocal Agreement with City of Port Townsend on Homeless Housing and Affordable Housing to Incorporate Revenue from Substitute House Bill 1406 STATEMENT OF ISSUE: County Commissioners will consider a motion to approve proposed Amendment No. 1 to the existing Interlocal Agreement (ILA)with the City of Port Townsend on Homeless Housing and Affordable Housing to incorporate revenue for Affordable Housing authorized by Substitute House Bill 1406, and authorize the Chair of the Commissioners to sign the amendment to the ILA on the Board's behalf. ANALYSIS: In 2019, the Washington State Legislature approved Substitute House Bill 1406 (Chapter 338, Laws of 2019) ("SHB 1406") authorizing a city or county to impose a local sales and use tax for the acquisition, construction or rehabilitation of affordable housing or facilities providing supportive housing, and for the operations and maintenance costs of affordable or supportive housing, or, for providing rental assistance to tenants to assist persons whose income is at or below sixty percent of the County median income. The tax is credited against state sales taxes collected within the County and, therefore, will not result in higher taxes. On December 16, 2019, the Jefferson Board of County Commissioners (BoCC) held a public hearing and adopted County Ordinance No. 16-1216-19 levying a County 0.0146% local sales tax in unincorporated Jefferson County, and a County 0.0073% local sales tax within the City of Port Townsend, both for affordable and supportive housing per SHB 1406, and credited against the state's sales and use tax, thus having no impact on retail prices to the consumer. On January 6, 2020 the Port Townsend City Council adopted City Ordinance No. 3244 also levying a City 0.0073% sale tax within the City for affordable housing per SHB 1406, and credited against the state's sales and use tax. Under the proposed Amendment No. 1, Jefferson County and the City of Port Townsend would pool these tax monies in collaboration with the City of Port Townsend as a means to fully leverage the resources under SHB 1406 for affordable housing. SHB 1406 authorizes the County to enter into an interlocal agreement for purposes of pooling the tax monies received, and allocating the proceeds. County and City staff have worked together to prepare language to fold SHB 1406 revenues into an existing interlocal agreement (ILA) through which the County 1 of 2 and City already cooperate on using recording fee revenues for homeless housing and affordable housing. On November 26, 2018, the County and City entered into an ILA to support affordable housing and homeless programs. This agreement specifies that a Joint Oversight Board and a Task Force be created to evaluate and recommend approval of housing and homeless program expenditures to the Board of County Commissioners.The original agreement applies to the use of recording fee funds which have also been referred to as 178 funds (for affordable housing) and 179 funds (for homeless housing). Amendment No. 1 to the 2018 ILA would manage the SHB 1406 revenues and expenditures using the same Joint Oversight Board, Task Force and procedures and structures as the 2018 ILA uses for managing and distributing recording fee revenues for affordable housing. The proposed ILA allows the SHB 1406 funds to be deposited within County Fund 148 where 178 recording fee funds are also deposited; however, the SHB 1406 sales tax funds will be accounted for separately from the 178 recording fee funds. The County will provide annual reporting to the City on the revenues and expenditures related to SHB 1406 funds. The City of Port Townsend has already executed Amendment No. 1. FISCAL IMPACT: The Washington State Department of Revenue has calculated the maximum capacity (cap) of$61,855.33 for County revenue from SHB 1406. The City's cap is currently estimated to be approximately $21,000. Together the County and City revenues would total approximately $83,000 added to Fund 148 for use for affordable and supportive housing. This would supplement approximately$46,000 per year in recording fee revenue that currently flows into Fund 148 for affordable housing. The combined revenues from sales tax credits through Amendment No. 1 and ongoing recording revenues would be almost $130,000 per year to support affordable housing, if the economy remains stable. RECOMMENDATION: Staff recommends the Board of County Commissioners pass a motion to approve proposed Amendment No. 1 to the 2018 Interlocal Agreement with the City of Port Townsend on Homeless Housing and Affordable Housing to incorporate revenue for Affordable Housing authorized by Substitute House Bill 1406, and authorize the Chair of the Commissioners to sign the amendment to the ILA on the Board's behalf. ATTACHMENTS: • Proposed Amendment No. 1 • Original 2018 ILA R IE lUED_ Y: ---; , ' -,,,.,„, " i 7 /7/1 7 - Philip Mor - , e . - , , • istrator Date 2 of 2 ATTACHMENT 1—AMENDMENT NO. 1 TO ILA ON AFFORDABLE&HOMELESS HOUSING AMENDMENT NO. 1 TO INTERLOCAL COOPERATION AGREEMENT BETWEEN JEFFERSON COUNTY AND THE CITY OF PORT TOWNSEND TO SUPPORT AFFORDABLE HOUSING AND HOMELESS HOUSING PROGRAMS PURSUANT TO RCW 36.22.178, RCW 36.22.179, AND RCW 36.22.1791 This Amendment No. 1 is entered into by and between Jefferson County("County") and the City of Port Townsend("City"). WHEREAS, on November 26, 2018 the County and the City entered into an Interlocal Cooperation Agreement Between Jefferson County and the City of Port Townsend To Support Affordable Housing and Homeless Housing Programs Pursuant to RCW 36.22.178, RCW 36.22.179, and RCW 36.22.1791 (the"2018 Affordable Housing/Homeless Housing ILA"); and WHEREAS, the 2018 Affordable Housing/Homeless Housing ILA established a Joint Oversight Board and a Task Force to evaluate and recommend for approval by the Board of County Commissioners the budget and all expenditures of all funds subject to the ILA for affordable housing and homeless housing; and WHEREAS, the Washington State Legislature subsequently adopted Substitute House Bill 1406 ("SHB 1406"), which became effective on July 28, 2019, allowing qualified counties and cities to impose a sales and use tax to be deducted from Washington State's share of the sales and use tax otherwise required to be collected or paid to the Washington State Department of Revenue under chapter 82.08 or 82.12 RCW; and WHEREAS, the revenue to counties or cities under SHB 1406 may be used for acquiring, rehabilitating, or constructing affordable housing, which may include new units of affordable housing within an existing structure or facilities providing supportive housing services under RCW 71.24.385; or funding the operations and maintenance costs of new units of affordable or supportive housing; or for providing rental assistance to tenants; where the persons' income is at or below sixty percent of the median income of the county or city imposing the tax; and WHEREAS, Jefferson County is qualified under SHB 1406 to impose and receive the maximum rate of 0.0146 percent sales and use tax to be deducted from the State's share of sales and use tax revenue, both within the City and in unincorporated Jefferson County, which, based on 2018 sales figures, would generate a total of approximately$80,000 per year for affordable housing; and WHEREAS, as an alternative to the maximum rate of 0.0146 percent that can be imposed and received by the County countywide, the City has the option for imposing a lesser rate of 0.0073 percent sales and use tax within the City to be deducted from the State's share of sales and use tax revenue, which, based on 2018 sales figures, would generate a total of approximately $21,000 per year to the City for affordable housing, and the County would also impose 0.0073 percent sales and use tax within the City while continuing to impose 0.0146 in unincorporated County, generating a total of approximately $59,000 per year to the County for affordable housing; and WHEREAS, the Jefferson County Board of Commissioners adopted County Resolution No. 52-19 on October 14, 2019 declaring the County's intent to levy the maximum capacity of the sales and use tax authorized by SHB 1406,to be credited against state sales taxes collected within the County; and 1 ATTACHMENT 1—AMENDMENT NO. 1 TO ILA ON AFFORDABLE&HOMELESS HOUSING WHEREAS, the Jefferson County Board of Commissioners adopted County Ordinance No. 16-1216-19 imposing a sales and use tax to be levied at the maximum levy rate authorized by SHB 1406 in unincorporated Jefferson County, and a sales and use tax to be levied by the County at the maximum levy rate authorized by SHB 1406 in the City of Port Townsend, and directing the funds so levied be collected in County Fund 148 Jefferson County Affordable Housing, which is the same fund where "178 Funds" are collected pursuant to the 2018 Affordable Housing/Homeless Housing ILA; and WHEREAS, on November 12, 2019 the Port Townsend City Council adopted City Resolution No. 19- 087, declaring its intent to adopt legislation to authorize the maximum capacity of the sales and use tax authorized by SHE 1406 within the City limits which will be deducted from the State's share of sales and use tax revenue; and WHEREAS, the County and City find that it can be efficient and effective for the City and County's SHB 1406 revenue to be managed jointly for expenditure for affordable housing purposes authorized by SHB 1406; and WHEREAS, the County and the City also desire the SHB 1406 revenue and expenditures to be managed through the same process and structures created under the 2018 Affordable Housing/Homeless Housing ILA, and wish to amend the ILA to accomplish this goal; NOW THEREFORE, in consideration of mutual benefits, the City and the County agree to amend the 2018 Affordable Housing/Homeless Housing ILA as follows: 1. The Whereas statements in this Amendment No. 1 are added to the Whereas statements of the 2018 Affordable Housing/Homeless Housing ILA. 2. A new paragraph is added to Section 6.i. that reads: i. The joint oversight board will recommend a budget and any and all allocations of 1406 Funds as defined by Section 16 that are in the same County fund as 178 Funds to the County Board of Commissioners for expending consistent with this Agreement and the requirements of Substitute House Bill 1406, Chapter 338, Laws of 2019, as may be subsequently amended. 3. A new Section 16. is hereby added to the 2018 Affordable Housing/Homeless Housing ILA as follows: 16. Revenues pursuant to SHB 1406. Sales and use tax revenue received by Jefferson County and the City of Port Townsend pursuant to Substitute House Bill 1406, Chapter 338, Laws of 2019, as may be subsequently amended ("1406 Funds"), and which get deposited in a County fund, are incorporated into this Agreement, and shall be managed as follows: a. 1406 Funds collected by the County shall be deposited in the same County fund as 178 Funds. b. 1406 Funds collected by the City for each calendar year shall be deposited by the City into the County fund for 178 Funds for budgeting and allocation 2 ATTACHMENT 1-AMENDMENT NO. 1 TO ILA ON AFFORDABLE&HOMELESS HOUSING pursuant to this ILA, provided that the City may retain all or some of its 1406 Funds for any calendar year by providing written notice to the County by July 1 in the preceding calendar year, and any such funds retained by the City shall be administered independently by the City. c. All 1406 Funds in the County fund shall be accounted for separately from other 178 Funds, and the County shall maintain any required records and reports needed to ensure the appropriate expenditure of the City and County 1406 Funds in the County fund. The County will provide the City with an annual report showing the amount and expenditures of the 1406 Funds in the County fund. d. Use of 1406 Funds must be consistent with the requirements of Substitute House Bill 1406, Chapter 338, Laws of 2019, as it now exists and may be subsequently amended. e. 1406 Funds levied by the County shall not be subject to any retainage by the County for the collection, administration, or local distribution of the 1406 Funds, unless authorized by state law. f. City1406 Funds deposited in the Countyfund for 178 Funds shall not P be subject to any retainage by the City or the County for the administration or local distribution of the 1406 Funds, unless authorized by state law. g. Except as otherwise required in this Agreement or as required by law, 1406 Funds shall be administered by the County in the same manner as 178 Funds and shall be subject to all provisions of this Agreement pertaining to 178 Funds, such as, but not limited to, budget and expenditure oversight and recommendations by the Joint Oversight Board, and any responsibilities properly delegated or assigned by the Joint Oversight Board to a Local Homeless Housing Task Force or other entity. 4. Effective Date of Amendment No. 1. Amendment No. 1 shall be effective as soon as it is fully executed in writing by both parties. 5. Savings. All other provisions of the 2018 Affordable Housing/Homeless Housing ILA remain unchanged and in effect. (SIGNATURES ON NEXT PAGE) 3 ATTACHMENT 1-AMENDMENT NO. 1 TO ILA ON AFFORDABLE&HOMELESS HOUSING CITY OF PORT TOWNSEND JEFFERSON COUNTY BOARD OF COMMISSIONERS John Mauro, City Manager Date Greg Brotherton, Chair Date SEAL: ATTEST: ATTEST: Joanna Sanders Date Carolyn Gallaway Date City Clerk 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 4 AttAca-fr/EiorZ — ���� ( '' - LA-INTERLOCAL COOPERATION AGREEMENT BETWEEN JEFFERSON COUNTY AND THE CITY OF PORT TOWNSEND TO SUPPORT AFFORDABLE HOUSING AND HOMELESS HOUSING PROGRAMS PURSUANT 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 support jointly 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 use these funds to support the housing needs and policies for housing activities to serve extremely low and very low-income households; and WHEREAS, RCW 36.22.179 and RCW 36.22.1791 authorize surcharges on each recorded document to support homeless housing 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 Interlocal Cooperation Act (Chapter 3934 RCW) provides authority for governmental entities to exercise their respective powers jointly through intergovernmental agreements; and WHEREAS,the parties entered into an interlocal agreement on October 10,2003,for the sharing and administration of funds generated by Substitute House Bill 2060 passed by the Washington Legislature on June 13,2002 for Affordable Housing programs;and WHEREAS,the parties entered into an interlocal agreement effective December 12,2005,for the sharing and administration of funds for housing the homeless generated by Engrossed Second Substitute House Bill 2163 passed by the Washington Legislature on August 1,2005;and WHEREAS,considering subsequent changes in the law,the parties are updating the two interlocal agreements into a single consolidate agreement; NOW THEREFORE, in consideration of the mutual benefits throughout the entire Jefferson County area,the City and the County agree as follows: 1. Definitions. a. "178 Funds" means the local share of all revenue generated in Jefferson County from the surcharges authorized by RCW 36.22.178. For the avoidance of doubt, "178 Funds"does not include shares allocated to the state under RCW 36.22.178. 1 b. "179 Funds" means the local share of all revenue generated in Jefferson County from the surcharges authorized by RCW 36.22.179 and RCW 36.22.1791. For the avoidance of doubt, "179 Funds" does not include shares allocated to the state or the County Auditor under RCW 36.22.179 or RCW 36.22.1791. c. "Affordable Housing"means residential housing that is rented or owned by a person or household whose monthly housing costs,including utilities other than telephone, do not exceed thirty percent of the household annual income. RCW 36.22.178 prioritizes Affordable Housing for extremely low-income households with incomes less than thirty percent of the County median income and very low-income households with incomes less than fifty percent of the County median income. d. "Eligible Recipients" means community action agencies as defined by RCW 43.185C.010(3),housing authorities,or other non-profit organizations dedicated to assisting individuals with no or inadequate housing, operating emergency shelters, or securing Affordable Housing for extremely low income and very low income households and that also are authorized to receive funds from ILA Revenues and to carry out the purposes of RCW 36.22.178, RCW 36.22.179 or RCW 36.22.1791. Assisting homeless or individuals with inadequate or unsafe housing need not be the eligible recipient's sole focus but should be a significant part of the eligible recipient's mission. e. "Facilitator"means the Facilitator as described in Section 8 of this Agreement. f. "ILA Revenues"means collectively 178 Funds and 179 Funds. g. "Or"means or and and/or. h. "RCW"means the Revised Code of Washington, as it now exists or may hereafter be amended. i. "Statewide Guidelines" means the Washington State Department of Commerce's statewide guidelines issued by December 1, 2018, and the department's five-year Homeless Housing Strategic Plan. j. "Ten-year Plan"means the ten-year plan to end homelessness in Jefferson County developed by the Local Homeless Housing Task Force and facilitated by Olympic Community Action Programs, as adopted by the Jefferson County Board of Commissioners on June 11,2018. 2. Purposes of this Agreement. The purposes of this Agreement are to: a. Provide for the administration of the revenue generated from the recording surcharge authorized under the provisions RCW 36.22.178,RCW 36.22.179,RCW 36.22.1791. b. Provide funding for an interim homeless shelter service agreement. 2 c. Facilitate the submittal by the County to the Washington State Department of Commerce all required reports. d. Provide for enhanced accountability and transparency about the administration and use of ILA Revenues. e. Facilitate compliance with 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 that substantially conforms to RCW 43.185C.160 shall prepare and recommend to the Jefferson County Board of Commissioners a local five-year homeless housing plan for Jefferson County consistent with the Y Statewide Guidelines. f. Facilitate compliance with the Ten-Year Plan while it remains in effect. g. 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. h. Develop programs and strategies for Affordable Housing. 3. Term of this Agreement. The term of this Agreement is for two years and will automatically renew for additional two-year terms,unless terminated pursuant to Section 12. 4. Limitation on Use of 178 Funds and 179 Funds. a. Use of 178 Funds must be consistent with the requirements of RCW 36.22.178 and this Agreement. b. Use of 179 Funds must be consistent with the requirements of RCW 36.22.179,and RCW 36.22.1791, the Statewide Guidelines, the planned local five-year homeless housing plan,and this Agreement. 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 County shall retain five percent of the funds collected pursuant to RCW 36.22.178. c. The County Auditor shall retain two percent of the homeless housing surcharge pursuant to RCW 36.22.179. d. Pursuant to Section 6(h), the County may retain up to six percent of 179 Funds pursuant to RCW 36.22.179 and RCW 36.22.1791 for the administration work required for this Agreement. 3 e. 178 Funds shall be held in a single fund by the Jefferson County Treasurer. This fund will be separate from the fund for 179 Funds. f. 179 Funds shall be held in a single fund by the Jefferson County Treasurer. This fund will be separate from the fund for 178 Funds. g. Funds currently held in County Fund 148 by the Jefferson County Treasurer shall be segregated into two separate funds according to their sources, consistent with Sections 5(e)and 5(f). h. Annually, the County shall provide a preliminary estimate to the joint oversight board for both the 178 Funds and the 179 Funds that may be available for allocation. i. Annually, the County shall provide the joint oversight board with a detailed accounting of all expenditures of 178 Funds and 179 Funds. 6. Joint Oversight Board Required by RCW 39.34.030(4). a. One elected representative of the City and one elected representative of the County, acting as a joint oversight board, will meet not less than twice per calendar year to discuss and recommend the expenditure of the revenue generated by RCW 36.22.178,RCW 36.22.179, RCW 36.22.1791,the Ten-Year Plan and the planned local five year homeless housing plan required by RCW 43.185C.050, the operations of the emergency shelter and other homeless housing programs in Jefferson County, 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). b. The Local Homeless Housing Task Force as convened by the Facilitator pursuant to and meeting the requirements of RCW 43.185C.010(18) and RCW 43.185C.160 shall recommend an additional three members for the joint oversight board subject to the approval of the City and County joint oversight board members. The members recommended by the Local Homeless Housing Task Force will serve for two-years from the date of their appointment and will be eligible for reappointment at the end of their terms. The Local Homeless Housing Task Force will recommend new members for appointment whenever there is a vacancy on the joint oversight board. c. All members of the joint oversight board, prior to their appointment, shall fully disclose all potential interests and involvement with Eligible Recipients. d. The joint oversight board shall perform their responsibilities under this Agreement in a manner that addresses the needs of homeless persons and Affordable Housing throughout the Jefferson County, both inside and outside of the city limits of the City of Port Townsend. e. The joint oversight board may establish rules and procedures for conducting its meetings, including taking public comment, and conducting any requests for proposals for expending ILA Revenues. 4 f. The joint oversight board will be subject to all Washington state laws,including the Open Public Meetings Act,Chapter 42.30 RCW. g. The joint oversight board will cooperatively review the documents prepared by the Facilitator and the Local Homeless Housing Task Force and shall make timely recommendations to the Board of County Commissioners when local legislative action is required by Chapter 43.185C RCW, so the Board of County Commissioners is able to take action consistent with the requirements of Chapter 43.185C RCW. The joint oversight board shall cooperate with Eligible Recipients in establishing and reviewing the county-wide housing needs and policies documents. The joint oversight board will recommend to the Board of County Commissioners a policy for the amount and use of reserves for the 178 Funds and 179 Funds. h. The joint oversight board will recommend a budget and any and all allocations to the County Board of Commissioners for expending the 178 Funds and 179 Funds consistent with requirements of RCW 36.22.178, RCW 36.22.179, and RCW 36.22.1791. 7. Interim Homeless Shelter Service Agreement. a. The County shall enter into an Interim Homeless Shelter Service Agreement for the purpose of providing funding for the operation of the homeless shelter program through April 30,2020. b. By July 1, 2019, the Joint Oversight Board shall review the provider's budget for the Interim Homeless Shelter Service Agreement and recommend any potential amendments to the budget for negotiation by the County with the provider. 8. The Facilitator. a. The City and the County shall agree on an entity to act as the Facilitator as described herein. The County shall enter into and administer a contract with the Facilitator in contract may be formagreed to bythe Cityand the County. The Facilitator'sy a gr Y funded using ILA Revenues as authorized by law or by using other funding sources. b. The Facilitator,in addition to other duties that may be negotiated in the contract: i. Shall convene a standing Local Homeless Housing Task Force pursuant to RCW 43.185C.010(18) and RCW 43.l 85C.160(1) to perform duties pursuant to RCW 43.185C.160, and other duties pursuant to this Agreement or as delegated or assigned by the joint oversight board.The membership of the standing Local Homeless Housing Task Force shall meet the requirements in RCW 43.185C.010(18) (including that it must include at least one elected representative from the City and one elected representative 5 from the County) and RCW 43.1.85C.160(1), and shall also include representatives from Affordable Housing interests. ii. Shall provide facilitation and assistance to the Local Homeless Housing Task Force in developing 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. iii. May perform other duties as delegated or assigned by the joint oversight board as time or budget allow. 9. Public Records Act and Open Public Meeting Act Compliance. The City and the County will be responsible separately for their respective public records pursuant to the Public Records Act,Chapter 42.56 RCW. The City and the County shall be responsible separately for their respective compliance with the Open Public Meetings Act,Chapter 42.30 RCW. 10. Liabilities. 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 that 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. Nothingcontained in this Agreement shall be considered as in any way constituting gre a partnership between the City and the County. 11. 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. 6 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. 12. Modification,Withdrawal and Termination. This Agreement may be modified,withdrawn, or terminated as follows: a. This Agreement may be modified or extended only by the written agreement of the parties. b. Either party may terminate this Agreement by serving a written notice to the other by June 30th of any calendar year following 2019. The termination will not take effect until January 1 of the next calendar year. For example, a termination notice delivered on June 29,2020 will take effect January 1,2021. 13. No Acquisition of Property. The parties do not anticipate acquiring any property in furtherance of this Agreement. 14. Termination of the 2003 and the 2005 ILAs. The interlocal agreement on October 10,2003, for the sharing and administration of funds generated by Substitute House Bill 2060 passed by the Washington Legislature on June 13,2002 for Affordable Housing programs;and the interlocal agreement effective December 12, 2005, for the sharing and administration of funds for housing the homeless generated by Engrossed Second Substitute House Bill 2163 passed by the Washington Legislature on August 1,2005 are terminated. 15. General Terms. a. 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 all the terms and conditions agreed upon by the parties. No representation or promise not expressly contained in this Agreement has been made. The parties are not entering into this Agreement based on any inducement, promise or representation, expressed or implied, which is not expressly contained in this agreement. This Agreement supersedes all prior or simultaneous representations,discussions,negotiations, and agreements,whether written or oral, within the scope of this Agreement,including the ILAs referenced in Section 14. 7 c. 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. d. 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 partyagainst whom the waiver is asserted. Failure of a party g g 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. e. Nondiscrimination;Equal Employment Opportunity. i. 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, equal rules,or regulations with respect to nondiscrimination and 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. f. The parties shall keep and maintain all records that may be required by law in connection with compliance with this section. g. The parties agree that this Agreement has been negotiated at arms-length, with the assistance and advice of competent, independent legal counsel. (SIGNATURES ON NEXT PAGE) 8 CITY OF PORT TOWNSEND JEFFERSON COUNTY BOARD OF COMMISSIO RS IWO4,,,, „'.:, ',; '7, ///914 ate David Ihv ,Chair Date DAJ C mmol � 't�r Stall Ag ;✓ tY .c c . �"off � SEAL: c4.t • "V* * 1 }i n ATTEST: vA 4, .. • 1 04•1,•••14---••-_2°-- t ( 6kaht 71/4 / Joanna Sanders Date Car Galaway Date City Clerk Deputy Clerk of the Board APPROVED AS TO LEGAL FORM: APPROVED AS TO LEGAL FORM: f 1 O C' 1 / 1 Heidi Green ood, Date Philip C. Hunsucker, ate City Attorney Chief Civil Deputy Prosecuting Attorney 9