HomeMy WebLinkAboutDISCUSSION re Resolution re TBD ILA JEFFERSON COUNTY
BOARD OF COUNTY COMMISSIONERS
REGULAR AGENDA REQUEST
TO: Board of County Commissioners
FROM: Mark McCauley, County Administrator
DATE: January 6, 2025
SUBJECT: Resolution by the BoCC Authorizing the County Administrator to Execute
Interlocal Agreement with the Transportation Benefit District for Staff Support
Services.
STATEMENT OF ISSUE:
As discussed with the BoCC on December 16, 2024, and previously,the collection of taxes for
the county road fund has been decreasing for years, making it increasingly more difficult to
maintain county roads.
Therefore,the BoCC adopted Ordinance No. 10-1216-24 on December 16, 2024, which created
the Jefferson County Transportation Benefit District(JCTBD). The JCTBD is a separate legal
entity, authorized by the state legislature in chapter 36.73 RCW to generate additional funds for
county road maintenance by collecting from the state up to up to $20 of the vehicle fee
authorized in RCW 82.80.140 and up to one-tenth of one percent of the sales and use tax in
accordance with RCW 82.14.0455. See RCW 36.73.065(4)(a).
By majority vote of its governing board, the JCTBD may authorize the collection of the funds
discussed above from the State Department of Licensing and the State Department of Revenue.
However,the JCTBD has no staff and no funds until it can begin to collect under RCW
36.73.065(4)(a). As an independent government entity,the JCTBD has authority to enter into
interlocal agreements for things like staff support, including legal, clerk support for the JCTBD
public meetings, and financial services. Most TBDs contract with the with the municipality that
created them for these services rather than hiring staff.
Once the JCTBD holds its first meeting, it may elect a Board Chair, who may be authorized by
the JCTBD Board to sign an interlocal agreement for these services. Since the governing board
of the JCTBD currently is the BoCC acting in an ex officio and independent capacity, each
governmental entity—the BoCC and the JCTBD—will need to delegate authority to a
representative from their entity to sign an ILA for the use of county staff support services.
Staff recommend that the BoCC authorize the County Administrator to approve and sign an
interlocal agreement with the JCTBD for these staff and administrative support services on
behalf of the county so there are separate signatories on the ILA—the County Administrator for
Jefferson County as authorized by the BoCC and the JCTBD Board Chair representing the
JCTBD Board.
ANALYSIS: The proposed interlocal agreement(ILA) will authorize Jefferson County staff to
provide necessary services to the JCTBD as well as authorize charging appropriate overhead
amounts. This is not a conflict of interest for staff, as the JCTBD is a funding entity for county
road projects. The proposed resolution would also ratify any actions by county staff in forming
and supporting the JCTBD prior to signing the interlocal agreement—for the example, staff time
setting up the Special Meeting for the JCTBD meeting to properly occur on January 6, 2025, and
drafting proposed documents for consideration during that meeting.
If Jefferson County assumes the JCTBD pursuant to chapter 36.74 RCW,this interlocal
agreement would no longer be needed and would terminate. This is because the assumption
process changes the governing body of the JCTBD from the BoCC serving in an ex officio status
to being the BoCC. The BoCC would then be the governing body for both Jefferson County and
the JCTBD. The JCTBD would still exist as a separate quasi-municipal corporation funding
entity, but the governing body would no longer be the BoCC acting in an ex officio and
independent status, and would just be the governing body of the BoCC in its normal BoCC
capacity. The procedural steps for assumption are outlined in chapter 36.74 RCW.
FISCAL IMPACT: The proposed interlocal agreement will authorize Jefferson County staff to
provide the necessary services to the TBD, as well as authorizing appropriate charges for
allowable overhead amounts.
RECOMMENDATION:
Move to approve the proposed Resolution Authorizing the County Administrator to execute the
proposed Interlocal Agreement with the JCTBD for reasonable staff support and related
administrative services.
REVIEWED BY:
Of
G �/mil?s�
Mark McCaule3&tounty Administrator Date
STATE OF WASHINGTON
County of Jefferson
In the Matter of Authorizing the Jefferson
County Administrator to Execute an RESOLUTION NO.
Interlocal Agreement with The Governing
Body of the Newly Formed Jefferson County
Transportation Benefit District
WHEREAS,chapter 39.34 RCW(Interlocal Cooperation Act)permits local governmental
units to make the most efficient use of their powers by enabling them to cooperate on the basis of
mutual advantage; and
WHEREAS, the county is empowered to operate, maintain, construct, and reconstruct,
public street infrastructure within unincorporated Jefferson County in accordance with the powers
granted pursuant to state law, including without limitation chapter 36.75 RCW; and
WHEREAS, pursuant to Ordinance No. 10-1216-24, codified in Chapter 3.90 of the
Jefferson County Code(JCC),the county established the Jefferson County Transportation Benefit
District (JCTBD) for any purpose allowed by law, including to operate the JCTBD and to make
transportation improvements consistent with existing state, regional, and local transportation
plans; and
WHEREAS,the county and the JCTBD desire to coordinate their efforts in order to pursue
their individual,joint,and mutual rights and obligations to maintain and preserve county roads and
related transportation infrastructure within unincorporated Jefferson County; and
WHEREAS, the Board of County Commissioners hereby authorizes the County
Administrator to work with appropriate staff and legal to prepare an interlocal agreement for said
services and execute on behalf of Jefferson County; and
NOW, THEREFORE, THE BOARD OF COUNTY COMMISSIONERS OF
JEFFERSON COUNTY,WASHINGTON,HEREBY RESOLVE AS FOLLOWS:
Section 1. Whereas Clauses are Findings of Fact. The Jefferson County Board of Commissioners
hereby adopts the above"Whereas"clauses as Findings of Fact.
Section 2.Authority to Execute an Interlocal Agreement with the Jefferson Cogpty Transportation
Benefit District. The County Administrator is authorized to execute the Interlocal Agreement with
the JCTBD for staff support and staff services.
Section 3.Actions confirmed and ratified.Actions by Jefferson County staff to support the JCTBD
prior to signing the Interlocal Agreement are confirmed and ratified.
Section 4. Severability. If any section, subsection, sentence,clause,or phrase of this Resolution or
its application to any person or circumstance is held invalid,the remainder of this resolution or its
application to other persons or circumstances shall be fully valid and shall not be affected.
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Section 5. SEPA Categorical Exemption. This resolution is categorically exempt from the State
Environmental Policy Act under WAC 197-11-800(19).
Section 6. Effective Date. This resolution shall take effect and be in full force immediately upon
approval and adoption by the Board of County Commissioners.
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ADOPTED and APPROVED this day of , 2025.
JEFFERSON COUNTY BOARD OF
SEAL: COUNTY COMMISSIONERS
Heidi Eisenhour, Chair
Commissioner, District 2
Greg Brotherton, Member
Commissioner, District 3
Heather Dudley-Nollette, Member
Commissioner, District 1
ATTEST: APPROVED AS TO FORM:
Carolyn Gallaway, CMC Date Philip C. Hunsucker, Date
Clerk of the Board Chief Civil Deputy Prosecuting Attorney
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INTERLOCAL AGREEMENT
BETWEEN THE JEFFERSON COUNTY AND
THE JEFFERSON COUNTY TRANSPORTATION BENEFIT DISTRICT
This Interlocal Agreement (Agreement) between Jefferson County (County), a political
subdivision under the laws of the State of Washington and the Transportation Benefit District for
unincorporated Jefferson County (JCTBD), a quasi-municipal corporation under the laws of the
State of Washington,(collectively the Parties)is hereby dated and made effective this
day of 2025.
WHEREAS,chapter 39.34 RCW(Interlocal Cooperation Act)permits local governmental
units to make the most efficient use of their powers by enabling them to cooperate on the basis of
mutual advantage; and
WHEREAS, Jefferson County is empowered to operate, maintain, construct, and
reconstruct,public street infrastructure within unincorporated Jefferson County in accordance with
the powers granted pursuant to state law, including without limitation chapter 36.75 RCW; and
WHEREAS, pursuant to Ordinance No. 10-1216-24, to be codified in Chapter 3.90
Jefferson County Code(JCC),the County established a Transportation Benefit District consisting
of unincorporated Jefferson County for any purpose allowed by law, including to operate the
JCTBD and to make transportation improvements consistent with existing state,regional,and local
transportation plans; and
WHEREAS, Jefferson County and the JCTBD desire to better coordinate their efforts in
order to pursue their individual,joint, and mutual rights and obligations to maintain and preserve
road and related transportation infrastructure within unincorporated Jefferson County;
NOW, THEREFORE,the Parties have entered into this Agreement in consideration of
the mutual benefits to be derived and to coordinate their efforts through the structure provided by
the Interlocal Cooperation Act.
1. Purpose and Interpretation
Jefferson County is empowered by chapter 36.75 RCW to construct,reconstruct,maintain,
and preserve county roads and other related public infrastructure either by contract or through the
use of county forces. The JCJCTBD has been constituted in accordance with state law to provide
a source of funding for transportation improvements that preserve, maintain, and improve the
transportation infrastructure and related infrastructure in unincorporated Jefferson County. The
JCTBD has no employees and its officers are the Jefferson County Board of County
Commissioners serving in an ex officio capacity. In order to make the most efficient use of public
monies,to avoid duplication of effort,and to coordinate their efforts,the Parties have entered into
this Agreement. In the event of ambiguity or the need for guidance arises,this Agreement shall be
interpreted in accordance with the provisions of Chapter 3.90 Jefferson County Code, Chapter
36.73 RCW, and the provisions of the Governmental Accounting Act, RCW 43.09.200 et seq. as
the same exists or shall hereafter be amended.
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2. Obligations of the Transportation Benefit District.
In accordance with the requirements of the Chapter 36.73 RCW and Chapter 3.90
JCC, the JCTBD agrees to:
A. Provide to the county all funding received for any and all lawful sources that the
JCTBD, in its sole discretion, may receive for the purpose of completing the
JCTBD's authorized projects.
B. Continue the annual provision of funding for transportation improvements
approved by the JCTBD, so long as the JCTBD remains in existence. Such
funding shall be in accordance with and limited by the provisions in Chapter 3.90
JCC and Chapter 36.73 RCW.
C. Develop an annual work plan and designate projects within its jurisdiction for
funding.
3. Obligations of Jefferson County.
The County shall:
A. Provide all staff and necessary related support to the JCTBD. The costs of
such support shall be accounted for as part of the County's annual report to
the JCTBD. JCTBD funding shall first be applied to the reasonable charges
incurred in establishing and staffing the JCTBD. Annual services provided
may include the services provided by the Prosecuting Attorney's Office, the
Clerk of the Board of County Commissioners when serving as the Clerk for
the JCTBD, the County Treasurer when serving as its Treasurer, the
Department of Public Works, the Central Services Department, and
employees of the County that serve the JCTBD and any associated costs
including but not limited to, the preparation of an annual work plan,
reporting, advertising, design, contracting, construction management,
accounting, and any and all other actual charges or agreed upon percentage
of charges associated with the proper application of JCTBD funding in
accordance with law and ordinance. In consideration of the benefits derived
by the County, overhead charges such as utilities, information technology,
office supplies, and equipment shall be a contribution of the County to the
Parties' joint goals and objectives and need not be directly charged to the
JCTBD.
B. Maintain for the period established by the State Archivist retention schedule,
financial records, kept in accordance with general accepted accounting
practice and governmental accounting requirements, as necessary to
document that any and all funding received through the JCTBD is used only
for the projects in accordance with law and ordinance.
C. Immediately alert the JCTBD of any material changes in scope, schedule, or
cost increases of 20% or greater to improvements funded in part or whole
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with JCTBD funds.
D. Utilize funding provided for projects shown on the JCTBD's annual work
plan in accordance with the JCTBD's material change policy, law, and
ordinance. In doing so, it is the intent of the Parties that this funding
supplement, not replace, existing County funding sources for road
improvements.
4. Ownership.
Roads and related transportation infrastructure preserved,maintained, and improved
with JCTBD funds are and shall remain the property of the County. No joint property
ownership is contemplated under the terms of this Agreement.
5. No Joint Board.
No provision is made for a joint board.The JCTBD shall exercise its function in accordance
with Chapter 36.73 RCW and Chapter 3.90 JCC, including any future amendments thereto, using
staff as provided by the County,pursuant to aw and to this Agreement.
6. Mutual Indemnity.
For its comparative liability, each Party agrees to indemnify, defend and hold the
other Party, its officers, officials, employees, agents and volunteers (and their marital
communities), harmless from and against any claims, damages, losses and expenses,
including but not limited to court costs, attorney's fees and alternative dispute resolution
costs, for any personal injury, for any bodily injury, sickness, disease or death and for any
damage to or destruction of any property (including the loss of use resulting therefrom)
which are alleged or proven to be caused by an act or omission, negligent or otherwise, of
its officers, officials, employees, agents or volunteers (and their marital communities). A
Party shall not be required to indemnify, defend, or hold the other Party or its officers,
officials, employees, agents and volunteers (and their marital communities)harmless if the
claim, damage, loss or expense for personal injury, for any bodily injury, sickness, disease
or death or for any damage to or destruction of any property (including the loss of use
resulting therefrom) is caused by the sole act or omission of the other Party or its officers,
officials, employees, agents or volunteers. If any concurrent act occurs or omission of the
Parties and their officers, officials, employees, agents and volunteers, negligent or
otherwise, these indemnity provisions shall be valid and enforceable only for the
comparative liability of each Party and its officers, officials, employees, agents or
volunteers. The Parties agree to maintain a consolidated defense to claims made against
them and to reserve all indemnity claims against each other until after liability to the
claimant and damages are adjudicated. If any claim is resolved by voluntary settlement and
the Parties cannot agree upon apportionment of damages and defense costs, they shall
submit apportionment to binding arbitration. The indemnification obligations of the Parties
shall not be limited by the Washington State Industrial Insurance Act, title 51 RCW, or by
application of any other workmen's compensation act, disability benefit act or other
employee benefit act. Each Party expressly waives any immunity afforded by such acts to
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the extent required by a Party's obligations to indemnify, defend and hold harmless
the other Party, its officers, officials, employees, agents and volunteers (and their
marital communities).A Parry's waiver of immunity does not extend to claims made
by its own employees directly against that Party as employer. The indemnity
provisions of this section are a material inducement to enter into this Agreement and
have been mutually negotiated. This section shall survive the expiration or
termination of this Agreement.
7. Compliance ii ith Laws.
Each Party accepts responsibility for compliance with federal, state or local laws
and a regulation including, in particular, that Parry's bidding requirements applicable to
the acquisition of any goods, services, or equipment obtained through the cooperative
process agreed to herein.
8. Effective Date.
This Agreement shall be effective upon the last authorizing signature affixed hereto and
when filed with the county auditor as required by RCW 39.34.040.
9. Termination.
This Agreement shall terminate or expire as follows:
A. This Agreement shall automatically expire upon the JCTBD being assumed by
Jefferson County pursuant to RCW 36.74.
B. This Agreement may be terminated by either Party upon the provision of ten (10)
calendar days' notice. A Resolution by the Jefferson County Board of
Commissioners indicating its intent to assume the Jefferson County Transportation
Benefit District pursuant to RCW 36.74 also serves as sufficient notice of
termination under this section.
C. A final reconciliation of costs, payments, and a current report of completed
activities to date shall be completed by both Jefferson County and the JCTBD
within such period following notice by either Party.
C. Unless sooner terminated by either Party, this Agreement shall expire on the date
the JCTBD is automatically dissolved in accordance with the provisions of RCW
36.73.170 and Chapter 3.90 JCC, as the same exists or are hereafter amended.
10. Survival.
Those provisions of this Agreement that by their sense and purpose should survive
the term of this Agreement. Without limiting the generality of the preceding sentence, and
for the avoidance of doubt,the provisions that survive the term of this Agreement include:
controlling law and indemnification.
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11. Severability.
Any provision of this Agreement held to be prohibited or unenforceable shall be ineffective
only to the extent of such prohibition or unenforceability, without invalidating the remaining
provisions or affecting the validity or enforcement of such provisions.
12. Contact Persons:
The Parties stipulate that the following persons shall be the contact person for their
respective jurisdiction.
JEFFERSON COUNTY:
Mark McCauley
County Administrator
Jefferson County
1820 Jefferson St., Port Townsend, WA 98368
Phone: (360) 385-2130
TRANSPORTATION BENEFIT DISTRICT:
JCTBD Chair
1820 Jefferson Street
Port Townsend, WA 98368
Phone: 360-385-9100
13. Recording.
A copy of this Agreement shall be recorded by Jefferson County in the Jefferson County
Auditor's Office.
14. General Provisions.
A. No new or separate legal or administrative entity is created to administer the
provisions of this Agreement.
B. This Agreement contains all of the agreements of the Parties with respect to any
matter covered or mentioned in this Agreement.
C. No provision of this Agreement may be amended or modified except by written
agreement signed by the Parties.
D. This Agreement shall be binding upon and inure to the benefit of the Parties'
successors in interest, heirs and assigns.
E. The Parties do not intend, and nothing in this Agreement shall be construed to
mean,that any provision in this Agreement is to benefit any person or entity who is not a Party.
F. This Agreement may be amended or supplemented only by a writing signed by duly
authorized representatives of all the Parties.
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G. This Agreement may be executed in one or more counterparts, each of
which shall be deemed an original, and all of which counterparts together shall constitute
the same instrument which may be sufficiently evidenced by one counterpart. Execution
of this Agreement at different times and places by the Parties shall not affect the validity
of this Agreement, so long as all the Parties execute a counterpart of this Agreement.
H. The Parties agree that facsimile and electronic signatures shall have the
same force and effect as original signatures.
I. Any provision of this Agreement or either Party places the enforcement
of this Agreement in the hands of an attorney, or files a lawsuit, each Party shall pay all
it sits own attorneys' fees, costs and expenses.
J. It is understood and agreed this Agreement is entered into in the State of
Washington. This Agreement shall be governed by and construed under the laws of the
United States, the State of Washington and the County of Jefferson, as if applied to
transactions entered into and to be performed wholly within Jefferson County,Washington
between Jefferson County residents. No Party shall argue or assert that any state law other
than Washington law applies to the governance or construction of this Agreement.
K. The venue for any legal action shall be solely in the appropriate state court
in Jefferson County, Washington, subject to the venue provisions for actions against
counties in RCW 36.01.050.
L. The County shall be responsible for compliance with the Washington Public
Records Act, Chapter 42.56 RCW(as may be amended)for both Parties. This Agreement,
once executed, will be a "public record" subject to production to a third-party if it is
requested under the Chapter 42.56 RCW.
M. No Party may sell, transfer or assign any rights or benefits under this
Agreement without the written approval of all the Parties.
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JEFFERSON COUNTY TRANSPORTATION BENEFIT
DISTRICT
By: By:
Mark McCauley, County Administrator Heidi Eisenhour, Chair
Date: Date:
SEAL:
ATTEST:
Carolyn Galloway, CMC Date
Clerk of the Board
Approved as to form only:
Philip C. Hunsucker, Date
Chief Civil Deputy Prosecuting Attorney
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