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Home My WebLink About041221_cabs01 JEFFERSON COUNTY BOARD OF COUNTY COMMISSIONERS AGENDA REQUEST TO: Board of County Commissioners FROM: Philip Morley, County Administrator DATE: April 12, 2021 RE: Presentation and Interview with EDC Team Jefferson on its Associate Development Organization Proposal STATEMENT OF ISSUE: The Board of County Commissioners will hear a presentation by EDC Team Jefferson about a Proposal to perform economic development services as Jefferson County's Associate Development Organization (see attached Proposal). Following the presentation, County Commissioners and staff will interview EDC Team Jefferson about its Proposal and engage in discussion with the organization. Following the presentation and interview on April 12, the Commissioners may give direction to staff to negotiate a pre-designation agreement with EDC Team Jefferson, in preparation for the County Commissioners to formally designate to the Washington Department of Commerce that EDC Team Jefferson shall be the Associate Development Organization for the coming state biennium (July 1, 2021 through June 30, 2023) ANALYSIS: Every two years, the Jefferson County Commissioners must designate an Associate Development Organization (ADO) to the Washington State Department of Commerce for the next biennium. Following that designation, Commerce enters into a funding agreement with the ADO that includes a detailed scope of work of economic development services the ADO will perform, consistent with the requirements of state statute. EDC Team Jefferson has been Jefferson County's ADO for approximately 14 years, and now seeks to be designated as the ADO for the coming biennium. In anticipation of the next designation,Jefferson County reached out to a number of community organizations, including the City of Port Townsend, Port of Port Townsend, Public Utility District, and others, for input on what we would wish economic development to look like in the coming two years and beyond, especially in the face of recovering from the economic impacts from the COVID-19 Pandemic, a growing disparity between working wages and housing costs, and other economic challenges, and a desire to harness the collaboration of the Intergovernmental Collaborative Group to align common efforts on a shared vision for economic development in the future. In response to this, the County issued a Final Concept Paper on the ADO for the next biennium. A copy of the Concept Paper is attached. 1 of Both the Port of Port Townsend and EDC Team Jefferson initially expressed interest in submitting proposals for performing ADO services for the coming biennium, but the Port ultimately chose not to ask to be designated, and instead would work as a partner organization in support of the economic development mission. On April 9, EDC Team Jefferson submitted a Proposal for ADO Designation in Jefferson County. The Proposal is intended to address the state's requirements for an ADO, as well as the expanded economic development mission and enhanced proactive services outlined in the County's Concept Paper. On April 12, EDC Team Jefferson will present their Proposal, and be interviewed by the County Commissioners and county staff. Here is a summary of next steps for the Board's consideration: • 4/9 EDC Team Jefferson submits a draft proposal to Jefferson County • 4/12 EDC Team Jefferson presents draft proposal and interviews with BoCC • 4/12-5/21 County & EDC negotiate refined scope, budget, & pre-designation agreement • 4/26 BoCC takes action on pre-designation agreement, and ADO designation • 4/28 County transmits designation to WA Commerce FISCAL IMPACT: None from the briefing and interview. However, the County and other local governments will need to consider funding commitments to fund the economic development activities of the ADO. To accomplish an expanded economic development mission and increased services, sufficient funding must be identified from the County, sister jurisdictions and others. RECOMMENDATION: Staff recommends that the Board of County Commissioners hear EDC Team Jefferson's presentation, interview its representatives, and direct county staff to negotiate refined scope, budget, & pre-designation agreement. Y: ze 411/4421 ilip Morle , C n Ad ' • r Date 2 of 3 EDC Team Jefferson Proposal for ADO Designation in Jefferson County April 9th, 2021 Version 1.0; Release to BoCC ● Introduction & Summary Background EDC Team Jefferson, hereafter referred to as EDC, has been the Associate Development Organization for Jefferson County, hereafter referred to as JeffCo, since 2012. This proposal seeks to maintain ADO designation in JeffCo, address economic issues related to the COVID- 19 pandemic, collaborate on a county-wide economic framework, and respond directly to BoCC priorities. This proposal is submitted with the goal of enhancing economic development in JeffCo through shared priorities between key stakeholders in JeffCo and through significant structural changes in the EDC. Context The EDC has provided meaningful economic assistance throughout the COVID-19 pandemic and continues to support local businesses and economic development in JeffCo. While the full extent of the pandemic on the JeffCo economy is not known at this time, it is clear that economic recovery will be a multi-year process. This includes supporting both existing and new businesses and organizations. There is potential economic growth in JeffCo from new residents and potential investors interested in rural areas with lower and less dense populations. Anxieties around COVID-19 and climate change make JeffCo a very attractive alternative to urban centers in the Puget Sound and elsewhere. Local Culture As economic recovery brings opportunities, it also raises concerns about the environmental and cultural impact of development. JeffCo is a unique geographic area with a rich history of Indigenous and settler cultures. Ignoring the historical and cultural concerns of long-term residents is not an effective strategy to encourage or support economic development. As an organization committed to respecting and promoting history and culture throughout JeffCo, the EDC is in a strong position to support new economic opportunities that work with, rather than against, the interests of diverse communities around JeffCo. The economic challenges within JeffCo at this time are strong: issues such as affordable housing, living-wage jobs, wealth inequality, structural racism, climate change, food security, and more will continue to influence and impact our economic health and future vitality. Collaborative Input The need for better working relationships between economic stakeholders in JeffCo has been clearly stated. The EDC is committed to improving those relationships and effectively th April 9, 2021 EDC Team Jefferson Biennium ADO Proposal Page 1 of 6 communicating with all of the stakeholders identified in this proposal. A more interactive, personal, and supportive connection between the EDC and partner organizations is sought. Ongoing COVID Response The economic challenges of the COVID-19 pandemic have provided sufficient evidence of the need for local government and community organizations to work together for economic prosperity and sustainability. Communication about funding opportunities to our local businesses and grant application assistance will be key throughout 2021. These challenges require hands-on effort, commitment, and collaboration. The purpose of the ADO designation as described by state law are as follows: 1) Providing direct business assistance and 2) Supporting regional economic research and planning. In addition to maintaining operations to fulfill ADO designation, the EDC is proposing internal changes to the organization to satisfy concerns from all of our stakeholders committed to economic development. The sections below outline these changes and align the EDC’s mission with BoCC Priorities. ● Work Scope & Approach EDC Team Jefferson current activities include: ● Conducting business classes, ● Targeted, proactive outreach to local businesses, ● Representation of multiple business sectors by board members, ● Managing local area investment opportunities (LION), ● Assistance and communication of immediate COVID Stimulus Funding, ● Collaboration with key stakeholders (Chamber, Port, NODC, Clallam EDC, WSU- Extension) ● Convening of community focus groups. This proposal allows for tighter interaction with our public partner agencies: City, County, Port, PUD. It also allows for additional input and support for the development of a broader county-wide comprehensive economic framework. A. ADO State Requirements Mandated elements of RCW 43.330.080 are extensive and cover a wide range of economic development tasks that map onto the current activities (listed above) of the EDC as the ADO for JeffCo. Many of the mandates stipulate conditions of collaboration with key stakeholders to establish and share best practices. This proposal highlights the areas in which the EDC is focused and committed to improving communication and ADO services. In Section III. this proposal addresses budget and staffing considerations to provide enhanced services. th April 9, 2021 EDC Team Jefferson Biennium ADO Proposal Page 2 of 6 It is important to note that the mandates in RCW 43.330.080 emphasize language of “work with” and “participating in/with” other key entities and partners. Even with increased budget and staff resources, the designated JeffCo ADO cannot meet all of the mandates alone. For this reason it is imperative to enter into this next phase of economic development, especially during a post- COVID pandemic recovery, with a renewed commitment to the shared priorities of the EDC, JeffCo BoCC, ICG members, and other partners identified herein. RCW 43.330.082. requires the ADO to provide “measures of their performance and summary of best practices shared and implemented by the contracting organizations,” among other metrics of performance submitted in the Annual Report. While the EDC has been meeting the mandates therein as the current Jeffco ADO, this proposal seeks to augment performance metrics, data standards, and web-based business information systems to better serve economic development in JeffCo. As much as possible, the EDC will seek partnerships (i.e. with county libraries) and grants to develop better data and information systems. An agreed upon frequency and audience for regular communications will be described in the forthcoming Work Plan. Proposed New EDC Board Structure: ● 8 private sector seats & 4 public agency designated seats ○ Public seats appointed by agency administrators ○ Private sector seat count is a minimum of but not limited to 8 seats ● Elected officials invited to all Board meetings (agency maintains responsibility for Open Public Meeting requirements if present) ● Business Sector / Diversity / Geographic representation with mandatory District II and District III participation. ● Working Committees: ○ Legislative - directs and investigates local leg advocacy ○ Data Resource - stewardship of the EDC data resource library ○ Communication - crafts content, monitors schedule and efficacy ○ Local Barriers to Economic Growth - aids improvement of policy ○ Nomination - staff and board seat allocation, assignment Public Sector Cabinet (PSC) Relationship: ● Monthly to quarterly meetings with EDC Director and Board Chair ● Participation/presentation at 2 EDC Board meetings per year ● Included in all EDC Board meeting invitations and prep materials ● Oversight of work plan, deliverables, and quarterly review ● Collaborative and mutual support for implementing the Jefferson County Economic Framework Proposed Multi-Year Agreement: ● Based on a two-year biennium agreement th April 9, 2021 EDC Team Jefferson Biennium ADO Proposal Page 3 of 6 ● PSC approved annual work plan, deliverables, and review ● Balance of individual and systemic improvements (defined by role) ● Engage with and support the Entrepreneurial Activities throughout the County ● Agreed class and community engagement quotas ● Legislative advocacy (NOLA and SBDC support) ● Combined viewpoints of public / private and business / demographic ● In conjunction with the PSC, support the development of the County Economic Framework with the ICG ● Full support of all public partners (County, City, Port, PUD) ● Agreed upon communications audience, frequency, and methods Partners and Stakeholders (including but not limited to…) ● Public Sector Cabinet ● Board of County Commissioners ● Port of Port Townsend / PUD / City ● ICG ● Jefferson Community Foundation ● NODC ● WEDA ● Olympic Development Workforce Council ● PT Marine Trades ● WSU Extension ● Tribal Nations ● Chambers of Commerce / Mainstreet ● LION ● Jefferson Broadband Action Team ● Local Service Organizations (Rotary, Kiwanis, Lions, Elks) ● Local Libraries and 4 School Districts ● Local Safety-net Organizations (OlyCAP, Juvenile Services, Dove/Recovery House) B. BoCC Priorities EDC Team Jefferson recognizes BoCC Priorities for ADO designation and commits to the following: ● Creation of a shared Economic Development Framework: EDC will work with the ICG and other relevant stakeholders to define and later implement a shared economic development framework. EDC looks to build on the experience and expertise of board members and staff, alongside consistent collaboration with stakeholders, to represent “the unique character of our different communities and economic centers” (Final Concept Paper). ● Increased communication & accountability: EDC recognizes the importance of communication to meet aforementioned RCW mandated elements and is committed to improving communication between staff, board members, and all relevant stakeholders th April 9, 2021 EDC Team Jefferson Biennium ADO Proposal Page 4 of 6 referenced herein. Structural and staff changes are described in this proposal to address this priority. ● Diverse representation: Structural changes to the EDC board are described above (II.A). EDC remains committed to diverse representation on the board and will encourage diversity through economic partners. This includes geographic and demographic representation--from all three commissioner districts--along with a sincere (non-performative) effort to represent marginalized communities throughout JeffCo. ● Bring added capacity: Proposed multi-year agreement includes increased funding from partners and addresses staff concerns with enhanced Executive Director, Business Services, and Administrative roles. ● Enhance partnerships: EDC will work with the business community, alongside new and existing partners and stakeholders (public, private, nonprofit) to enhance collaboration and a culture of volunteerism, with the goal of catalyzing an Economic Development Network. ● Communicate a clear vision for economic development: EDC will work with ICG and key stakeholders to implement the Economic Development Framework. EDC will support existing sectors, while also exploring new economic priorities in the post-COVID recovery and beyond. Economic success needs to be measured on a scale that includes diverse representation and with a keen eye to the future. ● Expanded scope: EDC will continue to perform activities identified herein and work to increase offerings and participation in responsive assistance and proactive services. EDC will encourage enhanced access to business financing through existing partnerships (LION, state agencies, etc.) and use the emerging Economic Development Network to help address needs and gaps to local business services. EDC will collaborate in regional efforts to improve affordable housing, living-wage jobs, and childcare for working families, and strive to cultivate an incubator-model of economic development that increases access to resources and supports important investments in infrastructure and workforce recruitment. ● Provide economic data: EDC will work to improve economic data for JeffCo and seek partnerships and grants to invest in better tools, data capture, and access. A. Additional Priorities & Enhancements EDC Team Jefferson is focused on three key priorities to address the pandemic recovery: 1. COVID-19 Response: As the current ADO, the EDC has been proactive in assisting businesses throughout JeffCo with relief funding. As additional funding becomes available, the EDC is dedicated to ensuring JeffCo businesses get the support they need to be successful during the economic recovery. 2. Communications: As described in this proposal, the EDC is committed to improving relations with economic and community stakeholders. A large part of that commitment is a new communications strategy and enhanced accountability within the organization and with our partners. th April 9, 2021 EDC Team Jefferson Biennium ADO Proposal Page 5 of 6 3. Increased Budget & Build-Out: An increased budget is necessary to improve staffing and implement structural changes to the organization for greater success. This includes adding staff positions and moving into a new space to better facilitate collaboration through an incubator environment. 4. Entrepreneurial Network: Efforts are underway to foster a climate of creative entrepreneurship around JeffCo to offer living wage jobs and opportunities for working families outside of tourism. The EDC will partner with organizations such as the Jefferson Community Foundation to help lead these efforts and bring together representatives across multiple sectors: maritime, manufacturing, arts & design, food products & agriculture, environmental & green technology, education, digital services & software, media, etc. 5. Branding: While a complete “rebrand” is not desired at this time, the EDC will revise websites, social media, and other platforms as necessary to reflect this proposal and a renewed commitment to economic development in Jefferson County. ● Staffing & Budget Budget Structure and Overview 1. Reflects initial half-year in 2021, then full year, then a half year in 2023 2. Includes one-time relocation & moving expenses on separate tab 3. Depicts two funding models, “Low Floor” and “Higher Floor” See attached Excel document. Staffing Positions: Overview of Roles & Duties Executive Director As the de facto face for the organization, the Executive Director will be the primary interface to all partner/stakeholder organizations. This work will focus around strategic alignment with county goals and initiatives, legislative tracking of policy and opportunities, as well as the day to day oversight of ongoing opportunities and funding development needs for the EDC Team Jefferson Organization. Business Services The goal of this role is to be the “go to” person in the county for business assistance and to organize the outward activities of the organization such as training classes, workshops, board meetings, and all outbound communications. This role is particularly key during the COVID pandemic recovery in assisting local businesses with access to stimulus grants and loan applications. Administrative Assistant It is still unclear if this is a full time, part time, or shared resource across several groups. The person is responsible for managing the incoming communications to the organization, tracking follow through (grant requests, LION, etc), assisting with facilities needs and meeting operations. The calendar and website of EDC Team Jefferson is managed by this person as well as the social media posting and tracking. th April 9, 2021 EDC Team Jefferson Biennium ADO Proposal Page 6 of 6 EDC Team Jefferson Proposal for ADO Designation in Jefferson County April 9th, 2021 Version 1.0; Release to BoCC ● Introduction & Summary Background EDC Team Jefferson, hereafter referred to as EDC, has been the Associate Development Organization for Jefferson County, hereafter referred to as JeffCo, since 2012. This proposal seeks to maintain ADO designation in JeffCo, address economic issues related to the COVID- 19 pandemic, collaborate on a county-wide economic framework, and respond directly to BoCC priorities. This proposal is submitted with the goal of enhancing economic development in JeffCo through shared priorities between key stakeholders in JeffCo and through significant structural changes in the EDC. Context The EDC has provided meaningful economic assistance throughout the COVID-19 pandemic and continues to support local businesses and economic development in JeffCo. While the full extent of the pandemic on the JeffCo economy is not known at this time, it is clear that economic recovery will be a multi-year process. This includes supporting both existing and new businesses and organizations. There is potential economic growth in JeffCo from new residents and potential investors interested in rural areas with lower and less dense populations. Anxieties around COVID-19 and climate change make JeffCo a very attractive alternative to urban centers in the Puget Sound and elsewhere. Local Culture As economic recovery brings opportunities, it also raises concerns about the environmental and cultural impact of development. JeffCo is a unique geographic area with a rich history of Indigenous and settler cultures. Ignoring the historical and cultural concerns of long-term residents is not an effective strategy to encourage or support economic development. As an organization committed to respecting and promoting history and culture throughout JeffCo, the EDC is in a strong position to support new economic opportunities that work with, rather than against, the interests of diverse communities around JeffCo. The economic challenges within JeffCo at this time are strong: issues such as affordable housing, living-wage jobs, wealth inequality, structural racism, climate change, food security, and more will continue to influence and impact our economic health and future vitality. Collaborative Input The need for better working relationships between economic stakeholders in JeffCo has been clearly stated. The EDC is committed to improving those relationships and effectively th April 9, 2021 EDC Team Jefferson Biennium ADO Proposal Page 1 of 6 communicating with all of the stakeholders identified in this proposal. A more interactive, personal, and supportive connection between the EDC and partner organizations is sought. Ongoing COVID Response The economic challenges of the COVID-19 pandemic have provided sufficient evidence of the need for local government and community organizations to work together for economic prosperity and sustainability. Communication about funding opportunities to our local businesses and grant application assistance will be key throughout 2021. These challenges require hands-on effort, commitment, and collaboration. The purpose of the ADO designation as described by state law are as follows: 1) Providing direct business assistance and 2) Supporting regional economic research and planning. In addition to maintaining operations to fulfill ADO designation, the EDC is proposing internal changes to the organization to satisfy concerns from all of our stakeholders committed to economic development. The sections below outline these changes and align the EDC’s mission with BoCC Priorities. ● Work Scope & Approach EDC Team Jefferson current activities include: ● Conducting business classes, ● Targeted, proactive outreach to local businesses, ● Representation of multiple business sectors by board members, ● Managing local area investment opportunities (LION), ● Assistance and communication of immediate COVID Stimulus Funding, ● Collaboration with key stakeholders (Chamber, Port, NODC, Clallam EDC, WSU- Extension) ● Convening of community focus groups. This proposal allows for tighter interaction with our public partner agencies: City, County, Port, PUD. It also allows for additional input and support for the development of a broader county-wide comprehensive economic framework. A. ADO State Requirements Mandated elements of RCW 43.330.080 are extensive and cover a wide range of economic development tasks that map onto the current activities (listed above) of the EDC as the ADO for JeffCo. Many of the mandates stipulate conditions of collaboration with key stakeholders to establish and share best practices. This proposal highlights the areas in which the EDC is focused and committed to improving communication and ADO services. In Section III. this proposal addresses budget and staffing considerations to provide enhanced services. th April 9, 2021 EDC Team Jefferson Biennium ADO Proposal Page 2 of 6 It is important to note that the mandates in RCW 43.330.080 emphasize language of “work with” and “participating in/with” other key entities and partners. Even with increased budget and staff resources, the designated JeffCo ADO cannot meet all of the mandates alone. For this reason it is imperative to enter into this next phase of economic development, especially during a post- COVID pandemic recovery, with a renewed commitment to the shared priorities of the EDC, JeffCo BoCC, ICG members, and other partners identified herein. RCW 43.330.082. requires the ADO to provide “measures of their performance and summary of best practices shared and implemented by the contracting organizations,” among other metrics of performance submitted in the Annual Report. While the EDC has been meeting the mandates therein as the current Jeffco ADO, this proposal seeks to augment performance metrics, data standards, and web-based business information systems to better serve economic development in JeffCo. As much as possible, the EDC will seek partnerships (i.e. with county libraries) and grants to develop better data and information systems. An agreed upon frequency and audience for regular communications will be described in the forthcoming Work Plan. Proposed New EDC Board Structure: ● 8 private sector seats & 4 public agency designated seats ○ Public seats appointed by agency administrators ○ Private sector seat count is a minimum of but not limited to 8 seats ● Elected officials invited to all Board meetings (agency maintains responsibility for Open Public Meeting requirements if present) ● Business Sector / Diversity / Geographic representation with mandatory District II and District III participation. ● Working Committees: ○ Legislative - directs and investigates local leg advocacy ○ Data Resource - stewardship of the EDC data resource library ○ Communication - crafts content, monitors schedule and efficacy ○ Local Barriers to Economic Growth - aids improvement of policy ○ Nomination - staff and board seat allocation, assignment Public Sector Cabinet (PSC) Relationship: ● Monthly to quarterly meetings with EDC Director and Board Chair ● Participation/presentation at 2 EDC Board meetings per year ● Included in all EDC Board meeting invitations and prep materials ● Oversight of work plan, deliverables, and quarterly review ● Collaborative and mutual support for implementing the Jefferson County Economic Framework Proposed Multi-Year Agreement: ● Based on a two-year biennium agreement th April 9, 2021 EDC Team Jefferson Biennium ADO Proposal Page 3 of 6 ● PSC approved annual work plan, deliverables, and review ● Balance of individual and systemic improvements (defined by role) ● Engage with and support the Entrepreneurial Activities throughout the County ● Agreed class and community engagement quotas ● Legislative advocacy (NOLA and SBDC support) ● Combined viewpoints of public / private and business / demographic ● In conjunction with the PSC, support the development of the County Economic Framework with the ICG ● Full support of all public partners (County, City, Port, PUD) ● Agreed upon communications audience, frequency, and methods Partners and Stakeholders (including but not limited to…) ● Public Sector Cabinet ● Board of County Commissioners ● Port of Port Townsend / PUD / City ● ICG ● Jefferson Community Foundation ● NODC ● WEDA ● Olympic Development Workforce Council ● PT Marine Trades ● WSU Extension ● Tribal Nations ● Chambers of Commerce / Mainstreet ● LION ● Jefferson Broadband Action Team ● Local Service Organizations (Rotary, Kiwanis, Lions, Elks) ● Local Libraries and 4 School Districts ● Local Safety-net Organizations (OlyCAP, Juvenile Services, Dove/Recovery House) B. BoCC Priorities EDC Team Jefferson recognizes BoCC Priorities for ADO designation and commits to the following: ● Creation of a shared Economic Development Framework: EDC will work with the ICG and other relevant stakeholders to define and later implement a shared economic development framework. EDC looks to build on the experience and expertise of board members and staff, alongside consistent collaboration with stakeholders, to represent “the unique character of our different communities and economic centers” (Final Concept Paper). ● Increased communication & accountability: EDC recognizes the importance of communication to meet aforementioned RCW mandated elements and is committed to improving communication between staff, board members, and all relevant stakeholders th April 9, 2021 EDC Team Jefferson Biennium ADO Proposal Page 4 of 6 referenced herein. Structural and staff changes are described in this proposal to address this priority. ● Diverse representation: Structural changes to the EDC board are described above (II.A). EDC remains committed to diverse representation on the board and will encourage diversity through economic partners. This includes geographic and demographic representation--from all three commissioner districts--along with a sincere (non-performative) effort to represent marginalized communities throughout JeffCo. ● Bring added capacity: Proposed multi-year agreement includes increased funding from partners and addresses staff concerns with enhanced Executive Director, Business Services, and Administrative roles. ● Enhance partnerships: EDC will work with the business community, alongside new and existing partners and stakeholders (public, private, nonprofit) to enhance collaboration and a culture of volunteerism, with the goal of catalyzing an Economic Development Network. ● Communicate a clear vision for economic development: EDC will work with ICG and key stakeholders to implement the Economic Development Framework. EDC will support existing sectors, while also exploring new economic priorities in the post-COVID recovery and beyond. Economic success needs to be measured on a scale that includes diverse representation and with a keen eye to the future. ● Expanded scope: EDC will continue to perform activities identified herein and work to increase offerings and participation in responsive assistance and proactive services. EDC will encourage enhanced access to business financing through existing partnerships (LION, state agencies, etc.) and use the emerging Economic Development Network to help address needs and gaps to local business services. EDC will collaborate in regional efforts to improve affordable housing, living-wage jobs, and childcare for working families, and strive to cultivate an incubator-model of economic development that increases access to resources and supports important investments in infrastructure and workforce recruitment. ● Provide economic data: EDC will work to improve economic data for JeffCo and seek partnerships and grants to invest in better tools, data capture, and access. A. Additional Priorities & Enhancements EDC Team Jefferson is focused on three key priorities to address the pandemic recovery: 1. COVID-19 Response: As the current ADO, the EDC has been proactive in assisting businesses throughout JeffCo with relief funding. As additional funding becomes available, the EDC is dedicated to ensuring JeffCo businesses get the support they need to be successful during the economic recovery. 2. Communications: As described in this proposal, the EDC is committed to improving relations with economic and community stakeholders. A large part of that commitment is a new communications strategy and enhanced accountability within the organization and with our partners. th April 9, 2021 EDC Team Jefferson Biennium ADO Proposal Page 5 of 6 3. Increased Budget & Build-Out: An increased budget is necessary to improve staffing and implement structural changes to the organization for greater success. This includes adding staff positions and moving into a new space to better facilitate collaboration through an incubator environment. 4. Entrepreneurial Network: Efforts are underway to foster a climate of creative entrepreneurship around JeffCo to offer living wage jobs and opportunities for working families outside of tourism. The EDC will partner with organizations such as the Jefferson Community Foundation to help lead these efforts and bring together representatives across multiple sectors: maritime, manufacturing, arts & design, food products & agriculture, environmental & green technology, education, digital services & software, media, etc. 5. Branding: While a complete “rebrand” is not desired at this time, the EDC will revise websites, social media, and other platforms as necessary to reflect this proposal and a renewed commitment to economic development in Jefferson County. ● Staffing & Budget Budget Structure and Overview 1. Reflects initial half-year in 2021, then full year, then a half year in 2023 2. Includes one-time relocation & moving expenses on separate tab 3. Depicts two funding models, “Low Floor” and “Higher Floor” See attached Excel document. Staffing Positions: Overview of Roles & Duties Executive Director As the de facto face for the organization, the Executive Director will be the primary interface to all partner/stakeholder organizations. This work will focus around strategic alignment with county goals and initiatives, legislative tracking of policy and opportunities, as well as the day to day oversight of ongoing opportunities and funding development needs for the EDC Team Jefferson Organization. Business Services The goal of this role is to be the “go to” person in the county for business assistance and to organize the outward activities of the organization such as training classes, workshops, board meetings, and all outbound communications. This role is particularly key during the COVID pandemic recovery in assisting local businesses with access to stimulus grants and loan applications. Administrative Assistant It is still unclear if this is a full time, part time, or shared resource across several groups. The person is responsible for managing the incoming communications to the organization, tracking follow through (grant requests, LION, etc), assisting with facilities needs and meeting operations. The calendar and website of EDC Team Jefferson is managed by this person as well as the social media posting and tracking. th April 9, 2021 EDC Team Jefferson Biennium ADO Proposal Page 6 of 6 EDC Team Jefferson 2021 Biennium Budget Proposal revision 1.0 to BOCC Jul '21 - Dec '21Jan '22 - Dec '22Jan '23 - Jun '23Jul '21 - Dec '21Jan '22 - Dec '22 Low FloorLow FloorLow FloorHigher Floor Income6 Months12 Months6 Months6 Months Business Activites Income Tuition Income Business Classes - Lean 2,000 4,000 2,100 2,000 Business Classes - focusPLAN 2,500 5,000 2,625 2,500 Tuition Income - Other - - - - Total Tuition Income 4,500 9,000 4,725 4,500 Business Activites Income - Other - - - - Total Business Activites Income 4,500 9,000 4,725 4,500 Non Profit Funding Grants 10,000 20,000 10,000 10,000 ADO - Dept. of Commerce 25,000 50,000 25,000 25,000 ADO - Supplemental Funding (Post COVID) - - - - Jefferson PIF 25,000 50,000 25,750 25,000 Jefferson County 15,000 30,000 15,450 25,000 Port of Port Townsend 15,000 30,000 15,450 25,000 City of Port Townsend 15,000 30,000 15,450 25,000 PUD 15,000 30,000 15,450 25,000 Total Non Profit Income 120,000 240,000 122,550 160,000 Total Income 124,500 249,000 127,275 164,500 Expense Advertising & Marketing 1,250 2,500 1,250 1,250 Bank Charges 125 250 125 125 Business Classes Rebate - focusPLAN 75 150 75 75 Facility Rental - Lean 100 200 100 100 Materials - focusPLAN 400 800 400 400 Materials - Lean 250 500 250 250 Instructors - Lean 100 200 100 100 Instructors - focusPLAN 4,000 8,000 4,000 4,000 Total Business Classes 4,925 9,850 4,925 4,925 Continuting Education 500 1,000 500 500 Legal & Professional Fees Bookkeeping and Accounting 1,225 2,450 1,262 1,225 Legal & Professional Fees - Other 600 1,200 618 600 Total Legal & Professional Fees 1,825 3,650 1,880 1,825 Meals and Entertainment 500 1,000 500 750 Office Expenses Dues & Subscriptions 750 1,500 750 750 Furniture, Fixtures & Equipment 500 1,000 500 500 Insurance 1,200 2,400 1,236 1,200 Postage 50 100 50 50 Software 390 780 390 390 Supplies & Printing 850 1,700 850 850 Office Expenses - Other - - - - Total Office Expenses 3,740 7,480 3,776 3,740 Payroll Expenses Wages Executive Director 42,500 85,000 43,775 47,500 Business Services Director 22,500 45,000 23,175 32,500 Administrative Assistant 10,400 20,800 10,712 22,500 Total Wages 75,400 150,800 77,662 102,500 Payroll Taxes 9,425 18,850 9,708 12,813 Health Insurance - - - 7,200 Total Payroll Expenses 84,825 169,650 87,370 122,513 Programs Community Lean Resource 2,500 5,000 2,500 2,500 LION 400 800 400 400 North Olympic Legislative Alliance 6,000 12,000 6,000 6,000 SBDC Advisor 3,750 7,500 3,750 3,750 Total Programs 12,650 25,300 12,650 12,650 Rent 4,500 9,000 4,500 4,500 Repairs & Maintenance 500 1,000 500 500 Travel 1,000 2,000 1,000 1,000 Utilities Electricity 1,200 2,400 1,200 1,200 Telephone 600 1,200 600 600 Internet 600 1,200 600 600 Water & Sewer 600 1,200 600 600 Total Utilities 3,000 6,000 3,000 3,000 Uncategorized Expense - - - - Total Expense 126,090 252,180 128,780 164,028 Net Income (1,590) (3,180) (1,505) 472 EDC Team Jefferson 2021 Biennium Budget Proposal revision 1.0 to BOCC Jan '22 - Dec '22Jan '23 - Jun '23 Comparison Notes Higher FloorHigher Floor 12 Months6 Months Note: business planning classes operate on a break even basis 4,000 2,100 Add'l classes on Success Planning, and Large Growth have 5,000 2,625 been requested and are currently under evaluation. - - 9,000 4,725 - - 9,000 4,725 20,000 10,000 50,000 25,000 There may be $20k here from new grant sources in 2021 - - 50,000 25,750 Funding increase of $20k/y from 'low floor' 50,000 25,750 Funding increase of $20k/y from 'low floor' 50,000 25,750 Funding increase of $20k/y from 'low floor' 50,000 25,750 Funding increase of $20k/y from 'low floor' 50,000 25,750 320,000 163,750 329,000 168,475 2,500 1,250 250 125 150 75 200 100 800 400 500 250 200 100 8,000 4,000 Classes operate at a small loss 9,850 4,925 1,000 500 2,450 1,262 1,200 618 3,650 1,880 Minor increases from 'low floor' 1,500 750 1,500 750 1,000 500 2,400 1,236 100 50 780 390 1,700 850 One time moving expenses in separate tab - - 7,480 3,776 Reduced payrate in 'low floor' 95,000 48,925 Reduced payrate / hours in 'low floor' 65,000 33,475 Halftime in 'low foor', full time in 'high floor' 45,000 23,175 205,000 105,575 25,625 13,197 No benefits offered in 'low floor' 14,400 7,560 245,025 126,332 Jay Bakst / Earll Murman 5,000 2,500 Could move to a service model (2,000 difference) 800 400 Potential savings with PoPT 12,000 6,000 As required by PIF 7,500 3,750 25,300 12,650 2 offices and conference area at Nomura 9,000 4,500 1,000 500 Conferences and meetings 2,000 1,000 2,400 1,200 1,200 600 1,200 600 1,200 600 6,000 3,000 - - 328,055 167,992 945 483 EDC Team Jefferson Moving & Expansion Costs Budget Moving Expenses Kitchen expansion and door security Tenant Improvements for Port Office 8,000 Internet Hardware 500 Office Supplies 500 Kitchen area hardware 400 Other Moving Expenses 500 Physical move and reprinting Relocation Expenses 600 Total Moving Expenses 10,500 Expansion Costs Admin Desk 400 Admin Computer & Monitor 1,200 Admin Office Chair 200 BSD Computer & Monitor 1,200 BSD Office Chair 200 General office/desk supplies Other Expansion Costs 500 Total Expansion Costs 3,700 Meeting Space 20 Folding Chairs 500 Conference Table 850 Total Meeting Space 1,350 Total Moving & Expansion Costs 15,550 Final Concept Paper - County Request For Proposals (rev 3/22/21) Issue: The County must designate an Associate Development Organization (ADO) to the Washington State Department of Commerce to perform economic development services in Jefferson County -. We must make the designation by the end of April or shortly thereafter. In the event the Port of Port Townsend notifies the County it seeks ADO designation in lieu of the EDC Team Jefferson, the existing ADO, Commissioners and staff will be preparing a Request For Proposals (RFP) which outlines the decision-making process and timeline, priorities for consideration of proposals and application components required. If the County determines it needs to issue an RFP, it anticipates receiving at least two requests for the ADO designation - one from EDC Team Jefferson (the current ADO) and one from the Port of Port Townsend. Other proposals would be welcome as well. The Board of County Commissioners (BOCC) is pleased that two or more organizations are committed to economic development. Additionally, we see a need to implement changes and improvements to current economic development efforts. We would prefer to receive joint proposals from entities, which draws from the different strengths of each and demonstrates a willingness to collaborate, by maintaining the current strong base of business volunteers from across economic sectors (such as those that have been working with the EDC), and adding additional capacity and organizational infrastructure (such as could be provided by the Port or other larger organization). An RFP can help guide the shape of ADO proposals and services to best meet community needs. Current Priorities of the BOCC: In discussions throughout February and early March - and informed by separate joint staff discussions between the County, City, PUD, Port and EDC - the BOCC has identified priorities that it wishes to carry into the upcoming ADO biennium. We welcome additional input on these by COB Friday, March 19. In addition to compliance with RCWs (included below) and Commerce contracting, these priorities include: /ƩĻğƷźƚƓ ƚŅ ğ ƭŷğƩĻķ 9ĭƚƓƚƒźĭ 5ĻǝĻƌƚƦƒĻƓƷ CƩğƒĻǞƚƩƉʹ The ADO will work with the Intergovernmental Collaborative Group (ICG) and Administrators to develop a shared framework for economic development that supports and builds upon the unique character of our different communities and economic centers that will guide and align the work of the ADO and other governmental and community organizations. A multi-party agreement between the ADO and funding organizations may be amended to reference and incorporate the Economic Development Framework once it has been adopted; LƓĭƩĻğƭĻķ ĭƚƒƒǒƓźĭğƷźƚƓ ε ğĭĭƚǒƓƷğĬźƌźƷǤʹ Create a governance structure with input and reporting to key stakeholders and funders. Demonstrate leadership free from conflicts of interest. Maintain transparency, including recurring reports of business projects/prospects while protecting confidential business information utilizing code names, if appropriate; strengthen communication and metrics out of the ADO on its activities, its effectiveness and outcomes, such as number of family-wage jobs created or retained; 1 of 6 5źǝĻƩƭĻ ƩĻƦƩĻƭĻƓƷğƷźƚƓʹ Ensure that key economic sectors from the privateand non-profit business community are involved in decision-making. Include geographic representation from throughout the county including some from each of the three county commissioner districts. Strive for diverse demographic participation in governance and services. Expand the ADO Board to maintain broad business sector representation as the majority of the Board, adding a seat each for the County, City, Port and PUD. Maintain the Public Sector Cabinet; .ƩźƓŭ ğķķĻķ ĭğƦğĭźƷǤʹ Demonstrate a plan to increase budget, staffing, collaborations & partnerships, and services beyond those existing today, better sized to deliver on an expanded mission and suite of services. Work with the County to forge a multi-party agreement on funding, work program and accountability, aligned to the Economic Development Framework to align resources and expectations; 9ƓŷğƓĭĻ ƦğƩƷƓĻƩƭŷźƦʹ Build on existing programs and volunteerism, - the business community, identify opportunities to enhance partnerships with the Port, Chambers, Main Street, NODC, CIE, Jefferson Community Foundation and other economic development partners, with a goal of catalyzing an Economic Development Network of economic development partners, each with a clearly defined role; /ƚƒƒǒƓźĭğƷĻ ğ ĭƌĻğƩ ǝźƭźƚƓ ŅƚƩ ĻĭƚƓƚƒźĭ ķĻǝĻƌƚƦƒĻƓƷʹ While the ICG and key stakeholders will work with the ADO to develop an Economic Development Framework, the ADO should be able to articulate a clear vision for the economic future of Jefferson County in its Proposal, including post-COVID recovery. 9ǣƦğƓķ ƭĭƚƦĻʹ Identify emergent opportunities in economic development. Partner on key regional efforts identified as priorities by governing board; o wĻƭƦƚƓƭźǝĻ ğƭƭźƭƷğƓĭĻ responding to requests from businesses and non-profits with BRE meetings; respond to requests for help in navigating financing, permitting and other activities o tƩƚğĭƷźǝĻ ƭĻƩǝźĭĻƭ continue to offer classes (Lean, Business Plans, etc) and expand the offerings to address business needs, equip small established businesses to take the next steps to grow to become mid-sized, proactively identify and contact retiring or closing businesses to offer assistance in finding new owners; convene related businesses to enhance local supplies chains and promote value added processing of local products. Create and maintain an updated portfolio of business opportunities in the different regions of the County. Concentrate on proactive and strategic opportunities for specific business sectors, including ways for public agencies to unlock, enhance and/or accelerate economic development; be future focused and anticipate trends in the economy, businesses, and employment. o 9ǣƦğƓķ ĬǒƭźƓĻƭƭ źƓŅƩğƭƷƩǒĭƷǒƩĻͲ ƭǒƦƦƚƩƷƭ ğƓķ ƭĻƩǝźĭĻƭ seek to expand LION and work with local financial institutions to offer enhanced access to business financing; cultivate lists of local business supports (legal, accounting, etc) and seek to fill gaps in those services. Participate in regional efforts to increase the supply of worker housing and childcare for working families. o tǒƩƭǒĻ ƚƦƦƚƩƷǒƓźƷźĻƭ Ʒƚ ğĭƷźǝĻƌǤ ğƷƷƩğĭƷ ƚƩ źƓĭǒĬğƷĻ ĬǒƭźƓĻƭƭĻƭ in accordance with an adopted Economic Development Framework, work with planning departments and local governments, realtors and property owners to identify and ready buildings and land for businesses to expand or locate, including incubators for compatible 2 of 6 start-ups, help coordinate opportunities to marshal public and private infrastructure investments to ripen those opportunities . Develop a strategic approach to compliment local business creation and expansion with strategic efforts to recruit businesses that will fit the surrounding community to locate here from elsewhere. tƩƚǝźķĻ ĻĭƚƓƚƒźĭ ķğƷğʹ Be an accessible resource for current economic data both on-line and in person. Increase partnerships with the Jefferson County Library and Port Townsend Library to share and increase access to business information resources. CRITERIA: the next Biennium will be evaluated using the following criteria: 1. Quality and thoroughness of the Proposal. 2. Degree to which Proposal demonstrates an ability to meet all of the mandated elements of RCW 43.330.080 and RCW 43.330.082. 3. Degree to which 4. The organization has a demonstrated history in economic development, consistent with the responsibilities of an ADO 5. Proposals where the organization seeking the ADO designation can demonstrate a partnership commitment for the biennium with one or more economic development organizations with complementary strengths is strongly preferred. TIMELINE: Draft Schedule Week Date/Activity 1 M 3/15 BoCC Discussion w/ Karen Affeld of NODC T 3/15-16 Preliminary Concept Draft for RFP distributed to stakeholders F 3/19 feedback on Preliminary Concept Paper for RFP is due 2 M 3/22 Meeting of the BoCC to consider the feedback & finalize Concept Paper W 3/24 Port meeting to consider whether to submit its previously approved letter requesting ADO designation F 3/26 (only if the Port affirms its intent to request ADO designation) RFP sent out, published on 3/28 4 F 4/9 Proposal Responses due 5 M 4/12 BoCC interviews each applicant, deliberates W 4/14 Special Meeting BoCC sets terms for award 7 M 4/26 Report back on negotiations, motion to award ADO designation 3 of 6 State Statutes on Associate Development Organizations RCW 43.330.080 Coordination of community and economic development services Contracts with county-designated associate development organizationsScope of services Business services training. (1)(a) The department must contract with county-designated associate development organizations to increase the support for and coordination of community and economic development services in communities or regional areas. The contracting organizations in each community or regional area must: (i) Be broadly representative of community and economic interests; (ii) Be capable of identifying key economic and community development problems, developing appropriate solutions, and mobilizing broad support for recommended initiatives; (iii) Work closely with the department to carry out state-identified economic development priorities; (iv) Work with and include local governments, local chambers of commerce, workforce development councils, port districts, labor groups, institutions of higher education, community action programs, and other appropriate private, public, or nonprofit community and economic development groups; and (v) Meet and share best practices with other associate development organizations at least two times each year. (b) The scope of services delivered under the contracts required in (a) of this subsection must include two broad areas of work: (i) Direct assistance, including business planning, to companies throughout the county who need support to stay in business, expand, or relocate to Washington from out of state or other countries. Assistance must comply with business recruitment and retention protocols established in RCW 43.330.062, and includes: (A) Working with the appropriate partners throughout the county including, but not limited to, local governments, workforce development councils, port districts, community and technical colleges and higher education institutions, export assistance providers, impact Washington, the Washington state quality award council, small business assistance programs, innovation partnership zones, and other federal, state, and local programs to facilitate the alignment of planning efforts and the seamless delivery of business support services within the entire county; (B) Providing information on state and local permitting processes, tax issues, export assistance, and other essential information for operating, expanding, or locating a business in Washington; (C) Marketing Washington and local areas as excellent locations to expand or relocate a business and positioning Washington as a globally competitive place to grow business, which may include developing and executing regional plans to attract companies from out of state; (D) Working with businesses on-site location and selection assistance; (E) Providing business retention and expansion services throughout the county. Such services must include, but are not limited to, business outreach and monitoring efforts to identify and address challenges and opportunities faced by businesses, assistance to trade impacted businesses in applying for grants from the federal trade adjustment assistance for firms program, and the provision of information to businesses on: 4 of 6 (I) Resources available for microenterprise development; (II) Resources available on the revitalization of commercial districts; and (III) The opportunity to maintain jobs through shared work programs authorized under chapter 50.60 RCW; (F) Participating in economic development system-wide discussions regarding gaps in business start-up assistance in Washington; (G) Providing or facilitating the provision of export assistance through workshops or one-on-one assistance; and (H) Using a web-based information system to track data on business recruitment, retention, expansion, and trade; and (ii) Support for regional economic research and regional planning efforts to implement target industry sector strategies and other economic development strategies, including cluster- based strategies. Research and planning efforts should support increased living standards and increased foreign direct investment, and be aligned with the statewide economic development strategy. Regional associate development organizations retain their independence to address local concerns and goals. Activities include: (A) Participating in regional planning efforts with workforce development councils involving coordinated strategies around workforce development and economic development policies and programs. Coordinated planning efforts must include, but not be limited to, assistance to industry clusters in the region; (B) Participating with the state board for community and technical colleges as created in RCW 28B.50.050, and any community and technical colleges in the coordination of the job skills training program and the customized training program within its region; (C) Collecting and reporting data as specified by the contract with the department for statewide systemic analysis. In cooperation with other local, regional, and state planning efforts, contracting organizations may provide insight into the needs of target industry clusters, business expansion plans, early detection of potential relocations or layoffs, training needs, and other appropriate economic information; (D) In conjunction with other governmental jurisdictions and institutions, participating in the development of a countywide economic development plan. (2) The department must provide business services training to the contracting organizations, including but not limited to: (a) Training in the fundamentals of export assistance and the services available from private and public export assistance providers in the state; and (b) Training in the provision of business retention and expansion services as required by subsection (1)(b)(i)(E) of this section. \[ 2014 c 112 § 111; 2012 c 195 § 1; 2011 c 286 § 2; 2009 c 151 § 10; 2007 c 249 § 2; 1997 c 60 § 1; 1993 c 280 § 11.\] 5 of 6 RCW 43.330.082 Contracting associate development organizationsPerformance measures and summary of best practicesRemediation plansReport. (1)(a) Contracting associate development organizations must provide the department with measures of their performance and a summary of best practices shared and implemented by the contracting organizations. Annual reports must include the following information to show the contracting organization's impact on employment and overall changes in employment: Current employment and economic information for the community or regional area produced by the employment security department; the net change from the previous year's employment and economic information using data produced by the employment security department; other relevant information on the community or regional area; the amount of funds received by the contracting organization through its contract with the department; the amount of funds received by the contracting organization through all sources; and the contracting organization's impact on employment through all funding sources. Annual reports may include the impact of the contracting organization on wages, exports, tax revenue, small business creation, foreign direct investment, business relocations, expansions, terminations, and capital investment. Data must be input into a common web-based business information system managed by the department. Specific measures, data standards, and data definitions must be developed in the contracting process between the department and the contracting organization every two years. Except as provided in (b) of this subsection, performance measures should be consistent across regions to allow for statewide evaluation. (b) In addition to the measures required in (a) of this subsection, contracting associate development organizations in counties with a population greater than one million five hundred thousand persons must include the following measures in reports to the department: (i) The number of small businesses that received retention and expansion services, and the outcome of those services; (ii) The number of businesses located outside of the boundaries of the largest city within the contracting associate development organization's region that received recruitment, retention, and expansion services, and the outcome of those services. (2)(a) The department and contracting associate development organizations must agree upon specific target levels for the performance measures in subsection (1) of this section. Comparison of agreed thresholds and actual performance must occur annually. (b) Contracting organizations that fail to achieve the agreed performance targets in more than one-half of the agreed measures must develop remediation plans to address performance gaps. The remediation plans must include revised performance thresholds specifically chosen to provide evidence of progress in making the identified service changes. (c) Contracts and state funding must be terminated for one year for organizations that fail to achieve the agreed upon progress toward improved performance defined under (b) of this subsection. During the year in which termination for nonperformance is in effect, organizations must review alternative delivery strategies to include reorganization of the contracting organization, merging of previous efforts with existing regional partners, and other specific steps toward improved performance. At the end of the period of termination, the department may contract with the associate development organization or its successor as it deems appropriate. (3) The department must submit a final report to the legislature by December 31st of each even-numbered year on the performance results of the contracts with associate development organizations. \[ 2014 c 112 § 112; 2012 c 195 § 2; 2011 c 286 § 3; 2009 c 518 § 15; 2007 c 249 § 3.\] 6 of 6