HomeMy WebLinkAboutWORKSHOP re PFD Draft Ordinance and presentation JEFFERSON COUNTY
BOARD OF COUNTY COMMISSIONERS
AGENDA REQUEST
TO: Board of County Commissioners
FROM: Mark McCauley,County Administrator
DATE: February 10,2025
SUBJECT: Pubic Facilities District (PFD)Workshop
STATEMENT OF ISSUE:
Chapter 3 6.100 authorizes the county to create a public facilities district(PFD). This workshop is intended
to discuss next steps in that process.
ANALYSIS:
This workshop provides an update on public aquatic facility efforts involving the county currently underway
and discuss some considerations regarding the timing of forming a PFD.
The BoCC will review the proposed ordinance and timeline and provide feedback accordingly.
FISCAL IMPACT:
While it is still difficult to determine the exact fiscal impact, there will be costs associated with the PFD
formation and process. The county's intention is that the actual costs for the construction, maintenance and
operation of a public aquatic facility would be provided by the PFD—including but not limited to grant
funding for design, private donations by Jefferson County Aquatic Association, and taxes(2/10ths of 1%
sales tax, if approved by the voters).
Once created,the PFD will be a separate legal entity from the county. The financial impact by providing the
overhead and administrative costs associated with the formation of the PFD—staff support, legal services,
and financial planning will be expense of the PFD. An estimate of these PFD expenses is in Appendix E to
the proposed ordinance.
The county and possibly the Chimacum School District will expend some resources related to securing the
site at Chimacum Creek Elementary for the public aquatic facility prior to the formation of the PFD. These
resources likely include work by the PAO in preparing necessary documents and work by the county on
grant funding. It is not possible at this time to precisely quantify those expenses but we expect the expenses
will not be financially material to the county.
RECOMMENDATION:
Consider formation of a PFD and provide feedback to staff as desired.
REVIEWED BY:
Mark McCauley, ounty Administrator Date
STATE OF WASHINGTON
County of Jefferson
In the Matter of Creating a Countywide
Public Facilities District for Jefferson County,
Washington, including the City of Port
Townsend,as Authorized by RCW 36.100 and ORDINANCE NO.
Adopting a New Chapter 3.100 of the
Jefferson County Code, "Public Facilities
District."
WHEREAS, RCW 36.100.010(1) authorizes the creation of a public facilities district
(PFD) in any county with the boundaries of such district coextensive with the boundaries of the
county; and
WHEREAS, RCW 36.100.010(2) provides that such public facilities district shall be
created upon adoption of a resolution providing for the creation of such district by the county
legislative authority; and
WHEREAS, pursuant to RCW 36.100.030, public facilities districts are authorized to
acquire, construct, own, remodel, maintain, equip, reequip, repair, and operate sports facilities,
entertainment facilities, convention facilities, and recreational facilities, together with contiguous
parking facilities; and
WHEREAS,the creation of a public facilities district within Jefferson County will promote
the best interests of the county and its residents by facilitating the potential future development of
a public facility or public facilities that have the potential to promote economic development and
community health and wellness, including but not limited to an aquatic and wellness facility; and
WHEREAS,in February 2023,Jefferson County,City of Port Townsend,Jefferson County
Public Hospital District #2, Port Townsend School District, Port of Port Townsend, Jefferson
County Aquatic Coalition, and the Olympic Peninsula YMCA formed a Steering Committee to
undertake a planning effort and to support development of a proposed public aquatic facility; and
WHEREAS, the Steering Committee conducted a feasibility study, called the Healthier
Together Center Feasibility Study, that resulted in a final report dated September 18, 2023,
attached as ATTACHMENT A (Healthier Together Feasibility Study); and
WHEREAS, the Steering Committee's final report recommended forming a county-wide
public facilities district as part of the funding strategy; and
WHEREAS, the submission of the Healthier Together Feasibility Study and its
recommendations generated additional interest in looking at sites for a public aquatic facility
outside of the city limits of the City of Port Townsend and other project or construction approaches,
which could change the proposed capital and operating costs of a public aquatic facility; and
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WHEREAS, the county agreed to lead a new Healthier Together Task Force (HTTF) to
review potential sites outside of the city limits of the City of Port Townsend and explore alternative
construction methods that may reduce project costs; and
WHEREAS, the HTTF met twice a month between April and August 2024 and consisted
of eight (8) community residents, including two appointments each from Commissioner Districts
1, 2, and 3, and two at-large members representing the Jefferson County Aquatic Coalition(JAC)
chosen by the JAC President who reside outside the City of Port Townsend; and
WHEREAS, on August 27, 2024, the HTTF presented their separate Findings and
Recommendations, attached as ATTACHMENT B (Task Force Findings& Recommendations),
recommending the creation of a county-wide public facilities district(PFD) as one of the primary
funding mechanisms necessary to support capital construction costs, as well as operations and
maintenance for any potential public aquatic facility; and
WHEREAS,pursuant to City Council Resolution No.24-033,on October 7,2024,the City
Council of the City of Port Townsend passed a resolution supporting a county-wide PFD; and
WHEREAS,the Jefferson County Board of County Commissioners(BoCC)have
committed to developing tourism infrastructure and a potential year-round public aquatic facility
not only achieves that goal,but it also can be built as an amenity that extends the shoulder
seasons even into the winter months as a pool designed for year-round tourists will add amenities
that complement the natural, but seasonal, amenities that draw most visitors currently; and
WHEREAS, scientific analysis of tourism infrastructure and facilities also supports that
developing tourism facilities increases tourism. Mandi, et al, in the scientific paper from 2018,
concludes:
Empirical research results in Croatia have demonstrated a statistically significant
correlation between the stage of tourism development and a number of arrivals,
overnights and state of the infrastructure, tourism infrastructure and recreational
facilities. Moreover, positive coefficients suggest that growing demands and
expectations regarding quality of all forms of infrastructure and facilities in
examined destinations can be related to destinations position in TALC (Tourism
Development in the Destination).Findings support conclusions made by Seetannah
et al. (2011) proving tourism to be sensitive to and influenced by infrastructural
development.
A. Mandi, 2. Mmjavac, L. Kordi: Tourism Infrastructure, Recreational Facilities, and
Tourism Development, Vol. 24, No. 1, 2018, p. 57, attached as ATTACHMENT C
(Tourism); and
WHEREAS, pursuant to RCW 36.100.025, Jefferson County has obtained an
independent financial feasibility review for a county-wide PFD, which was submitted to
the Washington Department of Commerce, attached as ATTACHMENT D (Independent
Feasibility Review), satisfying the requirements of RCW 36.100.025(1)(a); and
WHEREAS,the Independent Feasibility Review stated:
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It is not the goal of this review to create, test or otherwise opine on the costs for
capital or operations, but rather to identify costs specific to the formation of the
PFD by the County. The PFD is expected to request a separate review that will
focus on operating and capital costs,prior to the issuance of any debt, as required
by RCW 36.100.025.
Susan Musselman LLC, Independent Financial Feasibility Review Proposed PFD
Formation by Jefferson County, Washington (April 3, 2024),prepared for the Washington
Department of Commerce,p. 3; and
WHEREAS,the Independent Feasibility Review also stated:
The potential costs to be incurred relative to the proposed formation of the PFD by
Jefferson County are summarized as follows. Additional detail, integral to this
review, is included in this report.
1. The PFD will need start-up funding to enable it to operate.
2. The PFD will need money to pay costs to undertake an election to
seek approval for voter approved funding.
3. The PFD is likely to incur costs for additional studies, planning or
review prior to seeking a vote on PFD-imposed taxes.
4. As proposed, the project requires significant fundraising for capital
in addition to any capital financing by the PFD.
5. As proposed, the operational analysis indicates that the project will
require an annual operating subsidy, which may be provided by the
City.
6. The City is anticipated to incur costs related to the proposed PFD.
7. The County is anticipated to incur costs related to the proposed PFD.
Start-up and ongoing costs should be expected for any PFD. It will not be possible
for the PFD to do meaningful work without a source of start-up funding as they are
required to seek voter approval prior to receiving direct revenue. For many newly-
formed PFDs,this cost is covered by the forming entity or other stakeholders.
Susan Musselman LLC, Independent Financial Feasibility Review Proposed PFD
Formation by Jefferson County, Washington (April 3, 2024),prepared for the Washington
Department of Commerce, p. 3; and
WHEREAS, the initial startup funding for the PFD, as recommended in the
Independent Feasibility Review, has been obtained by private donations through the
Jefferson Aquatic Coalition and may be utilized by the newly created PFD as outlined in
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the county's initial PFD Budget Estimates in ATTACHMENT E (Initial PFD Budget
Estimates); and
WHEREAS, after formation, and if there is voter approval for a sales tax, the PFD
must request a separate review by the Washington Department of Commence that will
focus on operating and capital costs,prior to the issuance of any debt,as required by RCW
36.100.025(1)(b); and
WHEREAS, the BoCC finds it is in the best interests of the county and residents to create
the Jefferson County Public Facilities District(JCPFD), and that this step is necessary in moving
the good work previously done by the Steering Committee, HTTF, and other community
stakeholders forward towards a shared goal promoting community health, safety, and wellness;
and
WHEREAS,the BoCC finds it is in the best interests of the county and residents to create
the JCPFD now because partnering with the Chimacum School District (CSD) to place the
proposed public aquatic facility on CSD would mutually benefit Jefferson County, the CSD, and
the JCPFD by saving capital costs and promoting an immediately available grant funding
opportunity; and
WHEREAS,the governing board of directors of any public facilities district shall comply
with the requirements set forth in RCW 36.100.020;
NOW THEREFORE, BE IT ORDAINED BY THE BOARD OF COUNTY
COMMISSIONERS OF JEFFERSON COUNTY, STATE OF WASHINGTON, 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. JCPFD Created. The JCPFD is hereby created as authorized by, and subject to the
provisions of chapter 3 6.100 RCW, as currently written or subsequently amended.
Section 3. Geog_raphic Boundary of the JCPFD. The geographic boundary for the JCPFD is
countywide, comprised of all of Jefferson County, including the City of Port Townsend.
Section 4. JCPFD's Powers and Authority. The JCPFD shall have all powers and authority
conferred on such districts by statute, including but not limited to, RCW 36.100.010 and RCW
36.100.030. Without limiting the forgoing, the BoCC specifically acknowledges that such
authority includes the JCPFD's authority to acquire, construct, own, remodel, maintain, equip,
reequip,repair, and operate public facilities as defined in RCW 36.100.030,which can include an
aquatic facility.
Section 5. Adoption of Chapter 3.100 Jefferson County Code(JCCZ Chapter 3.100 JCC,attached
as ATTACHMENT F. which regulates the JCPFD, is hereby adopted.
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Section 6. JCPFD's Governing_Board. The JCPFD shall be governed by a board of directors as
provided for in RCW 36.100.020. Based on 2024 population estimates of the State of Washington
Office of Financial Management, the largest(and only)city in Jefferson County has a population
of less than forty percent of the total county population. The board of directors of the JCPFD shall
therefore be established with seven members, who shall be appointed hereafter by the BoCC to
reflect the interests of the unincorporated area of Jefferson County and the City of Port Townsend.
Section 7. JCPFD Eligible Projects. The JCPFD is authorized to develop and approve eligible
projects as authorized by chapter 36.100 RCW as currently written or subsequently amended.
Section 8. Revenue. The JCPFD shall consider the implementation of the various revenue sources
provided in chapter 36.100 RCW as currently written or subsequently amended. The JCPFD may
pursue any and all funding options available under chapter 36.100 RCW and authorized by law.
Section 9. 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.
Section 10. SEPA Categorical Exemption. This ordinance is categorically exempt from the State
Environmental Policy Act under WAC 197-11-800(19).
Section 11. Effective Date. This ordinance shall take effect and be in full force immediately upon
approval and adoption by the Board of County Commissioners.
(SIGNATURES FOLLOW ON THE NEXT PAGE)
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APPROVED AND ADOPTED this day of 2025.
JEFFERSON COUNTY
BOARD OF COUNTY COMMISSIONERS
SEAL:
Heidi Eisenhour, Chair
Greg Brotherton, Member
Heather Dudley-Nollette, Member
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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ATTACHMENT F
CHAPTER 3.100 JEFFERSON COUNTY CODE
ESTABLISHING A JEFFERSON COUNTY
PUBLIC FACILITIES DISTRICT
Sections:
3.100.010 Creation and purpose.
3.100.020 Board of directors.
3.100.030 Ex officio treasurer.
3.100.040 Powers, duties,and limitations.
3.100.050 Organization.
3.100.060 Liberal construction.
3.100.010 Creation and purpose.
(1) Pursuant to chapter 36.100, the Jefferson County Public Facilities District Code is hereby
created and shall be called the Jefferson County Public Facilities District(JCPFD)with its
boundaries coextensive with the boundaries of Jefferson County, and with the powers and
authority set forth in this chapter. The JCPFD is established for the purpose of pursuing the
planning, financing, development, ownership, and operation of public facilities as defined
by chapter 36.100 RCW, individually or in cooperation with any other public or private
entity as allowed by law.
(2) The JCPFD is a municipal corporation, an independent taxing "authority" within the
meaning of Article VII, section 1 of the Washington State Constitution and a "taxing
district"within the meaning of Article VII, section 2 of the Washington State Constitution.
3.100.020 Board of directors.
(1) Compliance with RCW 36.100.020 Required. The JCPFD board of directors
membership composition shall comply with RCW 36.100.020.
(2) Number of Directors. Pursuant to RCW 36.100.020(1)(c)(i),the JCPFD board of
directors shall consist of seven members.
(3) Appointment of Directors. The members of the JCPFD board of directors shall be
appointed by the Jefferson County Board of Commissioners as follows:
(a) Five of the members shall be recommended by the Board of County
Commissioners and shall be referred to as Position 1, Position 2 and Position 3,
Position 4, and Position 5;
(b) Two of the members shall be recommended by the City of Port Townsend and
shall be referred to as Position 6, and Position 7.
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(4) Four-Year Staggered Terms. The members shall serve four-year staggered terms, after
the appointment of the initial members.
(5) Terms of Initial Members.
(a) Positions 1, 3, 4 and 6 shall be appointed for four-year terms.
(b) Positions 2, 5, and 7 shall be appointed for two-year terms.
(6) Board of Director Member Section Criteria. The Jefferson County Board of
Commissioners shall appoint the members of the board of directors to reflect the interests
of cities and towns in the county, as well as the unincorporated area of the county.
(7) Representative of Lodging Industry on Board of Directors Required. Position 5 on the
board of directors shall be representative of the lodging industry in the public facilities
district before the public facilities district imposes the excise tax under RCW
36.100.0400).
(8) Vacancies of Directors. A vacancy on the board of directors shall be filled in the same
manner as the original appointment of the position was made and the person appointed to
fill a vacancy shall serve for the remainder of the unexpired term of the office for the
position to which they were appointed.
(9) Removal of Directors Any member of the board of directors may be removed from office
for any reason or for no reason by at least a two-thirds vote of the members of the
legislative authority that appointed the director, or in the case where appointment of the
member was not by a legislative authority, a two-thirds vote of the board of directors.
3.100.030 Ex officio treasurer.
Pursuant to RCW 36.100.100,the Jefferson County Treasurer is the ex officio treasurer of the
JCPFD.
3.90.040 Powers,duties, and limitations.
The JCPFD shall have all of the powers,duties, and limitations as authorized by, and subject to,
chapter 3 6.100 RCW as written or subsequently amended. These include but are not limited to:
(1) To exercise those powers of a corporation for public purposes including, but not limited
to,the power to hire employees, staff, to enter into contracts, and sue and be sued;
(2) To plan, finance, acquire, construct, own, remodel, maintain, equip, reequip, repair, and
operate public facilities or Regional Centers;
(3) To enter into interlocal agreements under chapter 39.34 RCW for the joint provision and
operation of public facilities or Regional Centers, and the organization and operation of
the JCPFD;
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(4) To contract with public or private entities for the operation or management of its public
facilities;
(5) To impose charges and fees for the use of its facilities, and may accept and use gifts,
grants, and donations for the benefit of the JCPFD;
(6) Except as specifically provided in an interlocal agreement between the JCPFD and
Jefferson County, the JCPFD shall take no action that might impose liability upon
Jefferson County or the City of Port Townsend. All liabilities incurred by the JCPFD
shall be satisfied exclusively from the assets, credit, and properties of the JCPFD, and no
creditor or other person shall have any right of action against or recourse to Jefferson
County or the City of Port Townsend, their assets, credit, or services, on account of any
debts,obligations, liabilities, or acts or omissions of the JCPFD;
(7) The JCPFD shall prepare, maintain, and provide the Jefferson County administrator a
financial and activities report not less than quarterly, and otherwise as directed by the
Jefferson County board of commissioners; and
(8) To engage in those activities specified in Chapter 3 6.100 RCW that are consistent with
the establishing ordinance or any interlocal agreement the JCPFD enters into with
Jefferson County.
3.90.050 Organization.
(1) The JCPFD shall take final action on any decision of the JCPFD by a majority vote of
the JCFD board of directors held in open session in full compliance with the Washington
Public Meetings Act, chapter 42.30 RCW.
(2) The JCPFD shall maintain rules of procedure and governance of its activities through its
bylaws,which shall be adopted by the JCPFD board of directors within 60 days of
formation of the JCPFD. The power to alter, amend, or repeal the bylaws or adopt new
bylaws shall be vested in the JCPFD, except the bylaws shall be consistent with the
formation ordinance and any interlocal agreement entered into with Jefferson County.
(3) The bylaws may be amended by the board of directors upon at least ten-days' notice and
any action of the board of directors shall be taken at an open public meeting subject to the
Washington Open Public Meetings Act, Chapter 42.30 RCW.
3.100.060 Liberal construction.
As authorized under chapter 36.100 RCW,this chapter shall be liberally construed to permit the
accomplishment of its purposes.
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Public Facilities District
(PFD)
February 18, 2025
Presented by Mark McCauley
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Jefferson County Administrator
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' What is a PFD?
• Authorized by RCW 36. 100
• A public facilities district is a municipal corporation, an independent taxing "authority"
within the meaning of Article VII, section 1 of the state Constitution, and a "taxing
district" within the meaning of Article VII , section 2 of the state Constitution.
• PFDs can acquire, construct, own, remodel, maintain, equip, reequip, repair, finance,
and operate one or more public facilities.
• Learn more at: MRSC - Public Facilities Districts (PFDs)
February 10,2025
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What are the benefits to a PFD?
1 . Funding
• Recommended by both the Healthier Together Steering Committee (2023) and
County's Healthier Together Task Force (2024) as necessary for funding a new public
aquatic facility;
• Taxing authority to generate revenue to support a new public aquatic facility;
2. Best use of resources; clear path forward
Specific entity focused on, and accountable for, the public-private partnerships
necessary to acquire, construct, own, remodel, maintain, equip, reequip, repair, finance,
and operate a new public aquatic facility; and,
• Governing board members will have time, talent, and expertise devoted to the
completion (and on-going success) of this project.
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Recommended Timeline?
BoCC Workshop 02/18 sffING\
Notice Hearing (Consent Agenda) 02/24/25
Publication 02/26/25
Public Hearing on Formation Ordinance 03/10/25
BoCC Appoints JCPFD Board Members
JCPFD Board Members hold their first meeting
y JCPFD Board Adopts Bylaws
February 10,2025 8
a � N CO
-ESN I T _
Discussion ♦ Next Steps Summary
• Formation Ordinance Timeline
• Hearing Notice 02/24/25
• Publication 02/26/25
• Public Hearing 03/10/25
• JCPFD Governing Board Appointed
• RCW 36. 100.020
• PFD's Initial Meeting
• ILA with JCPFD
• Provide staff support
• Bylaws for JCPFD Board Adopted (within 60 days of formation)
• Rules of procedure and governance of its activities
February 10,2025
1
Discussion & Next Steps — Summary
• Once formed, PFD will assess funding options and is required to obtain a 2nd feasibility
review by Department of Commerce prior to issuance of any indebtedness (RCW
36. 100.025(1 )(b)).
• If funding is obtained and project moves forward at Chimacum Creek Primary School
Project Site Location, County & Chimacum School District will enter into a long-term
lease agreement with the PFD.
• PFD will be responsible for the designing, planning, construction, maintenance, repair,
financing, and operation of the public aquatic facility.
February 10,2025
•
Questions?
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February 18,2025 12