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REGIONAL'lNTERGOVERNMENT AL MEETING
Friday, February 13, 2004
10:00 AM
CITY HALL COUNCIL CHAMBERS
City of Port Townsend
Port of Port Townsend
Public Utility District #1 of Jefferson County
Jefferson County
Call to Order and Pledge of Allegiance
The meeting was called to order at 10:05 AM by City Councilor Michelle Sandoval
The following representatives were present:
City of Port Townsend Councilmembers: Michelle Sandoval, Laurie Medlicott,
Frank Benskin
Port Commissioners: Bob Sokol, Herb Beck, and Conrad Pimer
PUD Commissioners: David Sullivan, Wayne King, and Dana Roberts
Jefferson County Commissioners: Dan Tittemess and Glen Huntingford
Changes to the Agenda
There were no changes proposed to the agenda.
Minutes
Minutes ofthe September 25 and November 18, 2003 meetings were approved
unanimously.
Announcements
Dana Roberts noted it might be useful to make certain all of the bodies represented at the
meeting agree to encourage the Forest Service to take the best approach to divesting the
Qui1cene water system; he added he would like the Forest Service to also be encouraged
to review the cost alternatives to cost plus interest.
Dan Tittemess gave a elF (Community Infrastructure Fund) update. He said that the CIF
Committee recommended approval of maximum funding for all the applications,
including the PUD's purchase ofthe Quil water system. With the exception ofthe Port's
request, which was funded entirely by a grant, all other projects were funded 50% by loan
and 50% by grant.
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February 13, 2004
Wayne King provided further information on his tour of the Qui1cene water operation.
Ms. Sandoval suggested that the Capital Infrastructure Fund Committee write a letter to
the Forest Service encouraging them to transfer ownership of the water system to the
PUD. Mr. Titterness offered to call the committee chair, Jerry Spieckerman.
Mr. Huntingford suggested that the elected officials draft a letter from all entities
showing support for the transfer.
Mr. Titterness stated that County staff will be asked to draft the letter for
representatives of each entity to sign.
Dana Roberts added that an alder mill looking at locating in Qui1cene found one problem
was that adequate fire flow was not available; having the Quil water system would
eliminate that sort of difficulty for businesses locating in the Quilcene area.
Public Comment
There was no public comment.
Meeting schedule/or 2004
The proposed meeting schedule for the following three quarters is:
Second quarter: PUD
Third quarter: Port
Fourth quarter: County
Consensus was that meetings will be scheduled by each host group at a time which fits
schedules the best.
Final MOU Establishing Regional Intergovernmental Meetings
Additional changes suggested to the MOD included:
Understanding #3: Each participating government may bring eftly a maximum of three
items to the agenda for each meeting.
Understanding #4: The agenda items shall be submitted to the hosting government fe#y-
!P.<e twenty-one days prior to the meeting, for distribution to the other governments at
least tftH:ty fourteen days prior to the meeting.
On the signature page, signature ofthe PUD representative should read "Chair" not
"President."
Draft Economic Development Strategy:
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February 13, 2004
Ms. Sandoval introduced Interim EDC Director Marty Gay.
Mr. Gay stated he is interested in understanding what the intent of the larger group of
government entities is with regard to the EDC strategy which was produced through a
contract between the County and the EDC.
Mr. Titterness noted that, generally speaking, the strategy meets the County's goals and
added that it would help ifthe other government entities agreed to support it.
Mr. Gay stated that the County has a strategic plan. He said that at some point everyone
wants to be on the same page about these issues; the last time the elected officials group
met, it was decided there would be a discussion of the definition of "sustainable" and that
could take a great deal of time. He expressed concern about how quickly a consensus can
be achieved for an economic development plan.
He said the County document was Whatcom County's model plan which was created for
an economic development agency in order to funnel funds from the Federal government
to their county. An important part of the process was buy-in from community and he
stated it would be possible to initiate a Comprehensive Economic Development Strategy
(CEDS) process where Jefferson County could be in line for this type of funding. He
also noted the value of this process in creating as much buy-in from stakeholders all over
the diverse parts of the county as possible.
Whatcom County developed an overarching umbrella partnership which included
community meetings and those who took part mentioned there was real leadership on the
part of electeds who said everyone had to get on the same page and quit the sniping about
what economic development is. He urged the entity representatives to get on the same
page, talk about issues important to people and create some definitions so people know
what they are talking about. He added that all must also be willing to change the
document when necessary, in response to new information and changing perceptions.
Mr. Gay stated that EDC is willing to be the lead on the process but all the government
entities involved need to develop a shared vision.
Mr. Sokol noted that the report listed one of the challenges to unified economic
development as differing value systems of leadership among the government entities.
Port Commissioner Herb Beck noted that the government has limited methods for raising
money and must create some way to subsidize tax money; he believes developing within
the community would be the method. He stated that now there are 100 million dollars a
year leaving the county and if development is encouraged and assisted, that money could
be recaptured. He noted the Port is like a corporation - the more value is has, the more
goods and services it can provide.
Port Commissioner Conrad Pimer agreed that there is nothing the government can do to
raise money but impose property or sales taxes.
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February 13. 2004
Mr. Titterness stated that he believes the leadership for this project is sitting at the table
today. Jefferson County took leadership action and asked for the development of a
strategy. He added that the organization at the table today is perfectly capable of being
the access point for the public and community and another committee is not needed. He
stated the community elected leaders are out there every day listening to constituents to
find what the issues are. He said that an analysis was done, and showed that the
Whatcom strategies are parallel to servicing Jefferson County's needs. He recommended
that this organization as individual entities could approve the EDC outline and say that
strategy number one is goal number one for us and move forward.
Mr. Sokol stated that the definition of "economic development" is like the definition of
"sustainability" and will have many different meanings to different people. He stated the
County is way over the state average in the number of sole proprietors conducting
business. He added it is not clear from the study whether these are businesses such as
bed and breakfasts which employee 1.5 - 2 full time equivalent employees; at another
point, reference is made to the state definition of small business, which is fewer than 500
employees - by that definition, nearly every business in the County would be a small
business. "Economic development" can mean numbers of jobs, income levels,
employers, telecommuters, shops, licensed or unlicensed businesses. There are many
ideas of what economic development is and a definition must go back to the basis and
foundation of what we are talking about when we use the term.
Mr. Gay noted that the definition of economic development should be based on what the
community decides is economic development; therefore mission and vision is needed.
Mr. Titterness said that a public dialogue has been ongoing for several years now and that
the Commissioners think Strategy #1 is something that each ofthe agencies agrees is
something we need to do. He stated his recommendation that each of the elected
officials encourage their own entities to adopt that as a goal for the group.
Ms. Sandoval stated she does not necessary disagree with the development strategy, but
that the Sommers report contains strategies very specific to Jefferson County. She
suggested looking at the strategies from the EDC study and the Sommers study in
conjunction. She recommended taking a step back before coming to any agreement on
the development strategy. She agreed that small businesses are predominant because that
is what is available to us at this time. She suggested that the EDC plan be evaluated to
see if any of the strategies from the Sommers assessment are missing from it.
She stated that strategy #1 regarding provision of infrastructure is in action and stated
people are quite aware that we can't have more jobs or affordable housing with that basis.
Mr. Huntingford said he agreed to a point but also believes that if we don not concentrate
on infrastructure the entire process will slow down while re-examining the two studies.
He said we should get ahead of the game to start with and keep the intergovernmental
group on track, supporting each other. He related a conversation with a citizen, who was
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February 13, 2004
surprised when told the many ways in which the city and county do work together. He
said the more we stay together and support each other (ie if city, county and port support
the PUD in their Quilcene water project) it goes a long way to build community. He
stated the biggest challenge is to encourage growth and development; and anticipate
events that could take place, such as the bottom falling out of the housing industry.
He stated that he doesn't care ifthe two strategies are merged somehow, but still believes
infrastructure is the key, and if it is not in place, everything else slows down.
Mr. Roberts commented on the differing value systems of leadership; he said he thinks it
is important to be able to expand tolerance in mind, even ifit doesn't line up too closely.
If everyone is not able to tolerate some ofthe particular values that push something into
the mix, then each will have more trouble promoting their own issues. He stated that
what he liked about the Sommers report was that they dealt in a small way with the retail
leakage issue, identifying the real problem as the isolation of the county. Jefferson
County is forced to look at niche businesses, which are not as dependent on costs of
transportation, etc. There are elements and features due to this isolation that are attractive
for some activities but which do not provide the economies of scale necessary for many
larger enterprises.
Ms. Sandoval noted that certain factors continue to come up in the various studies and
surveys and these are that people who are running small businesses don't have the skills,
such as marketing skills and technical assistance, to make their businesses work.
According to one study, 60% of the businesses in the county have said they wanted to
grow and what was holding them back was tack of technical expertise. She stated we
should help figure out how to give these skills to people in that situation. She would like
to see that strategy worked in. A discouraging result was that small business owners
didn't feel they had community support for their small businesses. She believes
strategies including incubators, skills centers, etc. are critical.
Mr. Huntingford said that if you have people who don't know how to help themselves,
how much of this problem is tied to a climate where governments aren't willing to help
them grow. He stated it is not that we are intentionally getting in their way, but there are
many times when potential business people run up against the process. He asked how
can we change and say that we, as governments, are business friendly; he stated the
atmosphere up front must be changed somehow.
Mr. Sokol stated that we can say we are open and accessible, but you must have a track
record which shows you are open and accessible. There are challenges and some
resources that people just don't know about. The ClF is a start; however he noted that
many more people come and look at the area than we ever know about. We talk about
an unskilled work force, but many are skilled enough to go to the other side of the Sound
and find jobs. He also cited a lack of high speed access to the internet and a lack of
affordable retail space. He stated the County has an interesting list of challenges, but not
necessarily ones which can't be overcome.
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February 13, 2004
Ms. Sandoval stated what she likes about the Sommers strategies is the specific steps
which are laid out, for example organizing networks like the marine trades. She stated
these strategies should be used to help us foster an economically viable, business friendly
county. She suggested that the documents be merged, and perhaps EDC could merge the
documents. She added that people become frustrated with a lack of action.
Mr. Huntingford stated we need something to implement the strategies; he added that the
BRFSS study is also an excellent document, showing the relationship between economic
factors and the health of citizens in the County. He stated he does not want to sit on the
economic development study and not move forward with implementation strategies.
Mr. Gay stated he was not suggesting a full blown community process, but that the study
must be taken to the community and adjusted according to their input. The
intergovernmental group needs to be that entity ofleadership and come out with the
commitment that we all understand the importance ofthese strategies. He stated that
EDC will help develop those objectives; he acknowledged hearing questions about the
priority of the EDC. He said that no matter how we define economic development, it is
not any single priority but all elements must be in place. He added that the County
Infrastructure Fund will be very successful and that success needs to be measured. There
should be agreement on a document which will put everyone on the same page.
Ms. Medlicott asked that a representative from each entity describe what they would do it
they heard of a business or industry wanting to come to Jefferson County to locate.
Mr. Roberts stated he would let the person know where the PUD has water and other
related service and say there is a process and a board who will listen to proposals; it is
difficult to say we will just "fix you up."
Mr. Tittemess stated that ifthe County were approached, via the staff building &
development department, the director would give the best information available regarding
zoning, etc. and initiate a process which would include communications with other
agencies. He stated that the County currently addresses these inquiries in regard to
economic development, through a contract with the EDC. He stated that he didn't know
ifthere are restrictions in state law that would prevent the EDC from actually being under
the direction of a government entity.
Mr. Huntingford stated that in the last few months, an interested business person would
have been directed to the EDC. He added that the County has asked the EDC to put
together an inventory of all lands available in county and city so we know what the
zoning is, what utilities are available, etc., so that wherever potential business people are
directed, they get the same information.
Mr. Beck stated that when a business entity comes to him, her refers that party to the
Executive Director, who is then able to contact the city manager, and county
administrator. He stated that he would not deal with it personally and that the
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February J 3, 2004
administrators have a better handle on the process involved than the electeds and they
need to be given the opportunity to do their job.
Mr. Pimer added that a Port Commissioner alone is powerless - the group itself has
power; he concurred that the issue would be forwarded to the executive director.
Ms. Sandoval noted she often has frustration with the process and lack of action and
stated the goal here today was to identify and discuss a strategy; one task ofEDC is they
need to have a strategy but can't bypass this agreement. She stated we want to get a
process in place and get it done soon but need to discuss strategy.
Mr. Beck stated that the process that hurts us the most is water and we need to let the
PUD do their job.
Ms. Sandoval stated that the main difficulty is infrastructure, of which water is one
element. It is going to be a huge issue in the future for the peninsula, both in terms of
how to get it and how to keep it.
Mr. Tittemess stated his recommendation is to go back to each entity and say we would
like to direct the EDC to meld these plans and move forward with something more than a
strategic plan, more like a technical or action plan and bring forward action items that
meet the goals and recommended prioritization - so it would be a directive from the
respective agencies.
Ms. Medlicott stated she believes the immediate priority of this group is to agree on a
plan of action.
Mr. King stated one of the biggest issues is to hold the next meeting when business
people are able to attend, in the evening. He stated the Sommers assessment is a good
job and there needs to be more emphasis on helping small businesses expand as that is the
quickest boost to economic development. He added that EDC needs to be pro-active in
assisting businesses.
Mr. Huntingford said he has no objection to merging the documents, but he would rather
not wait until the next intergovernmental meeting to have the issue resolved. He
suggested tasking the EDC and managers to get together and take on the project.
There were no objections and consensus was to have the meeting take place as soon
as possible.
Mr. Beck asked for an explanation of the difference between "light" and "heavy"
industry. It was decided to have staff weigh in on that discussion.
Public comment
There was no public comment.
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February 13, 2004
Adjourn
There being no further business, the meeting was adjourned at 11 :30 p.m.
Minutes submitted by
Pam Kolacy
Port Townsend City Clerk
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