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HomeMy WebLinkAbout050321_ca19 JEFFERSON COUNTY BOARD OF COUNTY COMMISSIONERS AGENDA REQUEST TO: Board of County Commissioners FROM: Philip Morley, County Administrator DATE: May 3 2021 RE: Pre-Designation Agreement Between EDC Team Jefferson &Jefferson County For Becoming the County's Associate Development Organization for the 2021-2023 Biennium (July 1, 2021—June 30, 2023) STATEMENT OF ISSUE: The Board of County Commissioners will consider approving a Pre- Designation Agreement Between EDC Team Jefferson &Jefferson County for Becoming the County's Associate Development Organization for the 2021-2023 Biennium (July 1, 2021—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 the proposed ADO Pre-Designation Agreement is the result of consultations with the City of Port Townsend, Port of Port Townsend, Public Utility District and EDC Team Jefferson, and sets common expectations for the ADO for the coming biennium. Early in this process, Jefferson County reached out to a number of community organizations, including the City, Port, PUD, 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. Initially, both the Port of Port Townsend and EDC Team Jefferson 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. 1 of 2 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 presented their proposal to the Board of Commissioners, and was interviewed by the Commissioners and county staff. Following the interview, County staff has worked with the administrators of the City, Port, PUD and EDC Team Jefferson to develop an ADO Pre-Designation Agreement, now presented for Board approval. Among other things, the ADO Pre-Designation Agreement sets the stage for the County and EDC Team Jefferson to negotiate a subsequent multi-party Economic Development Services Agreement with the Port, City, PUD, and possibly others. FISCAL IMPACT: None. 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 approve the proposed ADO Pre-Designation Agreement, and authorize Chair Dean to execute it on the Board's behalf. R W Y: er-4 Philip Morle ounty Administrator Date 2 of 2 PRE-DESIGNATION AGREEMENT BETWEEN EDC TEAM JEFFERSON &JEFFERSON COUNTY FOR BECOMING THE COUNTY'S ASSOCIATE DEVELOPMENT ORGANIZATION FOR THE 2021-2023 BIENNIUM (July 1, 2021—June 30, 2023) This Pre-Designation Agreement ("Agreement") is entered into by Jefferson County, a political subdivision and municipal corporation of the State of Washington, having its principal offices at P.O. Box 1220, Port Townsend, WA 98368 ( "County") and Economic Development Council Team Jefferson, a 501(c)(6) tax exempt organization registered with Washington State as a non-profit corporation and having its principal offices at 2409 Jefferson Street, Suite A; Port Townsend, WA 98368 ("EDC Team Jefferson") to articulate a mutual understanding of the economic development services and associate development activities EDC Team Jefferson will perform as a condition of being designated by the County to Washington State as Jefferson County's Associate Development Organization ("ADO") for the State's 2021-2023 Biennium (July 1, 2021 through June 30, 2023). 1. Term. The term of this Agreement shall commence upon execution by both parties, and shall continue through June 30, 2023, or until replaced by a subsequent Economic Development Services Agreement, described below, whichever is sooner. 2. Scope of Services to be performed by EDC Team Jefferson. Consistent with total revenue and in-kind support from the Washington State Department of Commerce ("Commerce"), Jefferson County including its Public Infrastructure Fund,the Port of Port Townsend ("Port"), Jefferson County PUD No. 1 ("PUD"), the City of Port Townsend ("City"), and other sources, EDC Team Jefferson will provide the following ADO and economic development services during the 2021-2023 Biennium: A. Activities required by RCW 43.330.080 and by Commerce per its contract with EDC Team Jefferson, including Business Retention and Expansion (BRE) meetings, for example. B. Administer COVID stimulus grants to local businesses. C. Participate in developing an Economic Development Framework, for adoption by the Intergovernmental Collaborative Group ("ICG"), which is intended to align the work of EDC Team Jefferson and other economic development partners. D. Participate in negotiating and executing a subsequent Economic Development Services Agreement of EDC Team Jefferson,the Port, PUD, City, County, and potentially others, as described in Section 5 below. E. Develop and implement a work program that expands upon the work program from the prior biennium and includes pro-active services. The work program shall be developed in consultation with the Public Sector Cabinet for adoption by the EDC Team Jefferson Board. It may subsequently be modified to align with the Economic Development Framework once the framework has been adopted. 1 of 6 F. Participate in a Mid-Term Check-Up and Adjustment as described in Section 4, below and as may be further refined in the subsequent Economic Development Services Agreement. The following are examples of services that might be included in an EDC Team Jefferson work program, scaled to EDC Team Jefferson's staffing and available resources: • Business Services targeted to: o Start-ups; o Retaining& Expanding Existing Businesses; o Business Recruitment, Marketing&Advertising; o Assistance to Businesses Relocating to Jefferson County; o Provide expanded portfolio of business classes — coordinate with the Chamber, CIE, and others, on class offerings among the different organizations, and expand the types of class offerings for additional economic development purposes; and, o Provide easy access to economic data and business information resources, in coordination with local libraries and other organizations. • Proactive Services consistent with the Economic Development Framework, such as: o Pursue opportunities to actively attract or incubate businesses in existing buildings or on developable land; o Help convene, encourage and support partners to pursue developing sites and associated infrastructure to promote economic development; o Develop a profile of Jefferson County's existing economy, to identify trends and opportunities for reducing barriers and promoting economic development o Economic development advocacy; o Proactively contacting retiring or closing businesses to help find new owners; o Convene related businesses to improve local supply chains; o Promote value-added processing of local products; o Identify growth impediments and growth opportunities within different business sectors, and help find solutions; o Recommend actions that public agencies can take to support economic development; o Develop & implement plans to expand business infrastructure, supports & services; o Administer& seek to expand the Local Investing Opportunities Network(LION), work to provide access and expand other financing options through banks, CRAFT 3, and others; and, o Create a network with other partners - catalyze an economic development network of organizations working in coordination with each other to foster economic development in Jefferson County. 2 of 6 3. Governance Structure. A. EDC Team Jefferson will amend its board structure as follows, or as may be subsequently agreed through a multi-party agreement as described in Section 5 of this Agreement: • 13 or more board members: 9 or more business sector seats, 4 government seats o 9+ business seats appointed by the EDC Team Jefferson Board; o 4 government seats set by a 5-party agreement, or determined by the legislative body of each organization. • Of 9+business seats, at least 1 seat from each Jefferson County Commissioner District. Strive for racial and gender diversity on the EDC Team Jefferson Board. • 9+ business seats with representatives from business sectors, experience and skills to support the mission and success of EDC Team Jefferson. • Initial sectors on the EDC Team Jefferson Board might be drawn from (but not be limited to): o Marine Trades; o Technology; o Broadband/Information Technology; o Real estate development; o Entrepreneurs; o Healthcare; o Chamber of Commerce o Non-profit organizations; o Agriculture; and, o Aquaculture. B. EDC Team Jefferson will continue convening the Public Sector Cabinet, generally consistent with the provisions of the December 21, 2020 Agreement for Economic Development Services of EDC Team Jefferson and Jefferson County(and as may be refined by a subsequent Economic Development Services Agreement), including the chief administrative officers of the County, the City, the Port, the PUD, and other public sector entities as may mutually be agreed, plus the EDC Team Jefferson's Executive Director and Board President. The Public Sector Cabinet is not a substitute for the EDC Team Jefferson Board. Rather,the Public Sector Cabinet will help EDC Team Jefferson staff develop work programs, strategies and recommendations for consideration by the EDC Team Jefferson Board, or as directed by the EDC Team Jefferson Board. 4. Metrics, Communication and Accountability. EDC Team Jefferson and the County agree on the need to develop improved performance and outcome metrics of EDC Team Jefferson's ADO and economic development work, the need to develop an effective strategy for communicating EDC Team Jefferson's activities and metrics, and the need for a strategy for enhanced accountability so corrections can be timely made to enhance performance. 3 of 6 This may include: • Quarterly Reports. EDC Team Jefferson shall provide detailed reporting of quantitative information on services rendered & outcomes in economic development, including (among others) a Business Recruitment — Active Business Report (modeled on the one done by the Port of Walla Walla); • The semi-annual reports to Commerce will be shared; • Other meaningful reports as may be mutually agreed with the Public Sector Cabinet, which may include, but are not limited to: o An annual Economic Vitality Index report, if available; o Business Retention and Expansion (BRE) activities; o Business Assistance activities; o Community Readiness and Capacity Building activities; and, o Classes offered, attendance rates, feedback reports/rates; • Annual Public Presentation. EDC Team Jefferson will present and discuss EDC Team Jefferson's performance measure report once annually to the legislative bodies of the jurisdictions in the subsequent Economic Development Services Agreement, demonstrating to the public the return on investment; • Meet with the Public Infrastructure Fund (PIF) Board annually, or as requested by the PIF Board Chair, to report on EDC Team Jefferson's economic development activities, outcomes and staffing (including identifying all staff financed in part with the PIF funds) in the prior twelve months, and to outline activities and staffing planned for the coming year; • Provide regular financial updates, and half-yearly financial reports, including a financial statement detailing actual versus budgeted revenues and expenses, and a staffing summary to the Public Sector Cabinet; • Mid-term Check-up and Adjustment. At the 9 month mark, an evaluation will be made of whether EDC Team Jefferson's economic development strategy and services are hitting the mark, whether staffing, structure, and budget are effective, and whether any adjustments need to be made before entering into year two of the ADO biennium. 5. Subsequent Economic Development Services Agreement between EDC Team Jefferson and the Port, PUD, City, and County. It is the intent of the County and EDC Team Jefferson to negotiate a subsequent multi-party Economic Development Services Agreement with the Port, the PUD, the City, and potentially others, detailing ADO and economic development services during the State's 2021-2023 Biennium (and potentially beyond), which would include: • Funding Commitments by the local governments; • EDC Team Jefferson's projected budget and staffing plan; • A Refined Work Scope; • Refined Metrics, Communication and Accountability; and, • Other provisions as may be mutually negotiated and agreed 4 of 6 6. ADO Designation by Jefferson County. Upon execution of this Agreement by both parties, the County will transmit to Commerce the County's designation of EDC Team Jefferson as Jefferson County's ADO for the 2021-2023 Biennium (July 1, 2021-June 30, 2023). 7. Schedule: �ITa�� `� �Ivr^ ��, #�Y� ��VP hvv G�I� !!IoIIIGIq��v�°'���Illa PI _iiil r e, Il N „r.;lu vl' Activity illyhl 1I0h1V1�.�1! In 77ill�a�lll d IIIV illllllliilillal�lir 7 lug ,GPG�piII II�G�IIUai ulti�i�i�lm"??,��ryplN°d? "e�,H�iu9!Il 1pl!�l iipg iaNi lii iai i�ua In tliduiil�i� iDd��Liid��. �r;�!1�-e�'+iliise�,"�141N1q(�ii�1�,�,' x-r.r� o�ll!�r<!�v ,bn -,i .r, ,,-„�� i t �G ii-ria 3tiaNIm18�Ilumlu IPlliafl6�IIII��GPI*4;'i�nr�U. —,o i im iiivami"ailiUitinllauMulu 4/15 15Y Draft Pre-designation agreement circulated to EDC Team Jefferson/City/Port/PUD 4/19 Review Comments 4/22 2"d Draft 4/23 Meeting: County with EDC Team Jefferson, City, Port, PUD 4/28 Pre-designation draft finalized 5/3 BoCC takes action on pre-designation agreement, and ADO designation 5/5 County transmits designation to Commerce on or before this date 5/20 ADO Update to ICG 5/18 Draft multi-party Economic Development Services Agreement circulated to the governments and EDC Team Jefferson for review—comments due June 2 6/1 Staff recruitment begins 6/2 Due date for Comments on Economic Development Services Agreement 6/9 Proposed Final Draft of Economic Development Services Agreement distributed 6/30 Economic Development Services Agreement fully executed 7/1/21 2021-2023 ADO Biennium begins 6/30/23 2021-2023 ADO Biennium ends (SIGNATURES FOLLOW ON NEXT PAGE) 5 of 6 DATED this day of May, 2021. EDC TEAM JEFFERSON JEFFERSON COUNTY BOARD OF COMMISSIONERS Ben Baue meister, Board President Date Kate Dean, Chair Date Attest: Carolyn Gallaway Date Deputy Clerk of the Board Approved as to form only: O41/4 yo Z/ Philip Hunsucker at Chief Civil Deputy Prosecuting Attorney 6 of 6