HomeMy WebLinkAbout56 20COUNTY OF JEFFERSON
STATE OF WASHINGTON
In the matter of }
Authorization and Funds Commitment I RESOLUTION NO. 5 6— 2 0
EDA FY2019 Supplemental Grant
Port Hadlock UGA Sewer Project
WHEREAS, Jefferson County is subject to the planning requirements of the State of
Washington's 1990 Growth Management Act (GMA) which requires that in order for urban
densities and styles of growth to occur, urban levels of services must be provided by
transportation and utility infrastructure; and
WHEREAS, municipal sewer service is a required utility service to be in place under GMA in
order for commercial, industrial, and multi -family housing to expand. Until the sewer is built,
rural zoning remains in place and stifles land use, job creation and capital investment; and
WHEREAS, in 2002 Jefferson County established through an extensive public planning process
an Urban Growth Area (UGA) in the unincorporated Port Hadlock and Irondale area which is the
only UGA in the County outside of its one incorporated city (Port Townsend); and
WHEREAS, the economic health and vitality of the region will be stronger and more resilient
when areas where growth and opportunity can occur are geographically diversified and possible
not only in the City of Port Townsend but also in the unincorporated County as well; and
WHEREAS, the Port Hadlock-Irondale UGA includes adopted commercial, light industrial, and
medium to high -density housing zoning, but under the State's Growth Management Act, must
operate with interim rural low -density zoning until a sewer is built, and this rural zoning stifles
development of properties, businesses and job creation within the UGA; and
WHEREAS, the Port Hadlock UGA sewer will not only "turn on" adopted urban zoning,
allowing for significant economic development, but it will remove restrictions on acreage
currently dedicated to septic systems and reserve drainfields, opening additional acreage within
the UGA to economic development; and
WHEREAS, Jefferson County developed and adopted a Sewer Facility Plan for the Port
Hadlock UGA in 2008 and said Plan was approved by the Washington State Department of
Ecology and Department of Health; and
WHEREAS, Jefferson County has worked since that time to advance the Port Hadlock UGA
Sewer project by spending over $2.5 million of locally derived funds, State revolving loans, and
bonds to pay for necessary items and work including but not limited to:
• Sewer Facility Planning
• Acquisition of all property required to site the treatment and wastewater re -use facilities
• Subsurface exploration and hydro -geologic modeling of the wastewater re -use site
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• NEPA and Section 106 cultural resources permitting work
• Development of wetlands mitigation plans
• Site and sewer design work
• Other special studies required for the advancement of the project
• Public outreach and involvement efforts to engage public input and support; and
WHEREAS, other funding partners including the Washington State Department of Ecology,
U.S. Environmental Protection Agency (EPA), and the U.S. Department of Agriculture — Rural
Development (USDA-RD) have also demonstrated a long-standing commitment to this project
by providing over $500,000 to this project previously, and indicate that they intend to be a part
of additional funding for constructing the Port Hadlock sewer; and
WHEREAS in 2020 the Washington State legislature awarded the County $1.422 million to
complete the design of the Port Hadlock UGA sewer system including updating the design for
the treatment and wastewater re -use facilities and final design of the sewer collection system and
this work is in progress; and
WHEREAS, in 2018 property and business owners in the core commercial district of the Port
Hadlock UGA petitioned the Board of County Commissioners to advance the sewer project,
demonstrating interest in and demand for business expansion, increased density and development
in the area, and these same stakeholders have remained engaged in ongoing outreach and
planning efforts to date; and
WHEREAS, this project is Jefferson County's number one priority infrastructure project due to
its critical role in creating the density of service and workforce necessary to support a thriving
rural economy less vulnerable to disasters or disruptions; and
WHEREAS, the Port Hadlock UGA Sewer project is integral to the long-term economic
resilience of this region, and mitigates the county's current economic vulnerability from storms,
high seas or tsunamis; and many jobs will be created by allowing for additional and intensified
land uses, particularly commercial and light industrial, in the service area; and
WHEREAS, it should be noted that the Presidentially Declared disaster (FEMA 4418)
underscored the County's existing efforts to develop other business districts in addition to
downtown Port Townsend, which is endangered by storm surges and sea level rise, to serve its
constituents, and stressed the urgency for the County to advance this critical project; and
WHEREAS, the Port Hadlock Irondale UGA is currently served by hundreds of aging septic
systems many of which fail before replacement, and this project will retain the jobs that are
currently dependent on aging septic systems, allow for business expansion to create new jobs;
and removing these aging septic systems will also improve water quality in a community
surrounded by marine shorelines, commercial shellfish beds, and the salmon -bearing Chimacum
Creek; and
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WHEREAS, the County is applying for a $10 million grant through the EDA-2019-DISASTER,
FY 2019 EDA Disaster Supplemental, Department of Commerce, Economic Development
Administration (EDA) to develop the sewer infrastructure necessary to allow the commercial
growth, economic development, and associated job retention and creation that the UGA was
intended to promote; and
WHEREAS, the project meets the goals outlined in both the Jefferson County Comprehensive
Plan and the North Olympic Development Council's Comprehensive Economic Development
Strategy (CEDS) and is highlighted as a significant project in the CEDS; and
WHEREAS, the project meets four of the five investment priorities for the Economic
Development Administration:
o Located in an Opportunity Zone;
o Contributes to recovery and resilience;
o Supports workforce development; and
o Improves critical infrastructure; and
WHEREAS, the EDA-eligible project costs are estimated at $16,377,000 to provide sewer
service to the commercial and light industrial zoned land within the UGA Phase I "Core Area";
NOW THEREFORE BE IT RESOLVED that the County commits as matching and
companion funds to the EDA's $10 million grant the following to fund complete construction of
the Hadlock Sewer Project:
• Local matching funds of $2.5 million in established Jefferson County revenue streams,
including a combination of capital improvement funds, dedicated Public Infrastructure
Fund sales tax dollars, and sewer connection fees; and
• Jefferson County will continue to work with the State legislative delegation that has
sponsored previous support for the Port Hadlock sewer, most recently including a
successful appropriation of $1.422 million for design and engineering in FY 2020, to
secure an additional $3.9 million to complete funding for the project. The delegation has
indicated that it will support efforts to secure the additional funding from the legislature
and state agencies to complete this priority project.
In addition, Jefferson County commits to securing additional funding through local sources,
USDA Rural Development, Department of Ecology's Clean Water Program, Washington State's
Public Works Assistance Account and other state and federal programs to fund the residential
capacity within the Hadlock Sewer's Core Area.
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5r
PASSED AND ADOPTED THIS -? / - DAY OF Zt' a itS-t_ , 2020.
Carolyn 6ballaway
Deputy Clerk of the Board
JEFFERSON COUNTY
BOARD OF ('OMMISSIONERS
Chair
0--
Kate Dean, Member
David Sullivan, Member
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Department of Public Works
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Jefferson County
Board of Commissioners
Agenda Request
To: Board of Commissioners
Philip Morley, County Administrator
From: Monte Reinders, Public Works Director/County Engineer
Agenda Date: August 31, 2020
Subject: Resolution - Authorization and Commitment
Economic Development Administration (EDA)
FY2019 Disaster Supplemental Grant
Port Hadlock Wastewater Project
Statement of Issue: The Economic Development Administration (EDA), part of the U.S.
Department of Commerce, has made infrastructure development grants available through its
FY2019 Disaster Supplemental Notice of Funding Opportunity. EDA's role in disaster recovery
is to facilitate the timely and effective delivery of Federal economic development assistance
to support long-term community economic recovery planning and project implementation,
redevelopment and resiliency. The attached resolution authorizes an application to this
program for construction funding to be applied to the Port Hadlock sewer and identifies and
commits sources of revenue as match for this grant.
Analysis/Strategic Goals/Pro's Et Con's: The Port Hadlock wastewater system is currently
under design for the commercial core area using funding provided by the Washington state
legislature earlier this year. This EDA grant represents an opportunity to compete for a
potentially sizable portion of the funding necessary to construct this project. Significant
grant assistance is necessary to bring costs down so that the system is more affordable for the
sewer customers, and lack of availability of large grants has been the primary reason the
sewer project has not been constructed. This EDA grant is focused on developing economic
resiliency in communities that have had federally declared disasters in 2018/19, which
Jefferson County did. The EDA focuses on supporting infrastructure related to commercial
and industrial development that will create or retain jobs. The Port Hadlock sewer project
will allow development to occur that is not possible with septic systems only, and as a result
will create job opportunities and a stronger economic foundation in the County.
Fiscal Impact/Cost Benefit Analysis: The EDA eligible portion of this project is estimated to
have a construction cost of $16.4 million. Note that this excludes the costs associated with
sewering the residential areas within the Port Hadlock Core area as these elements are not
eligible for funding under this program. With the Disaster Program, EDA typically funds
projects at a maximum of $10 million and requires a minimum 20% non-federal match. The
attached resolution identifies sources of local and state funds that will be used to match the
EDA grant. Typically, projects constructed with EDA funds must be completed in five years.
Department of Public Works
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Recommendation: Please approve the attached Resolution authorizing application to the
EDA for the Port Hadlock Wastewater project and identifying and committing matching funds
for this project should the grant application be successful.
Department Contact: Monte Reinders x242
Reviewed By:
Philip Morl un y ministrator
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Date