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HomeMy WebLinkAboutC20130315 Interlocal Agreement SKAGIT COUNTY Contract # C20130315 Page 1 of 24 JAIL FACILITY USE AGREEMENT This Jail Facility Use Agreement ("Agreement") is by and between Skagit County ("County"); the City of Sedro-Woolley ("Sedro-Woolley"); the City of Anacortes ("Anacortes"); the City of Mount Vernon ("Mount Vernon"); and the City of Burlington ("Burlington"), pursuant to RCW Chapters 70.48 and 39.34. RECITALS A. The County and its Sheriff are charged by State law with the operation and maintenance of the Skagit County Jail and related correctional facilities (hereinafter, the "Jail"), the costs of which are independently accounted for in the "Jail Fund" further described below. B. The existing Jail (hereinafter, the "Existing Jail") requires additional capacity in order to safely incarcerate the combined volume of city and county inmates expected over the course of the next thirty years. The city governments party to this Agreement (hereinafter, collectively, the "Cities") desire to continue use of the Jail for detention of city inmates. C. The County intends to build, own and operate a new Jail consisting of approximately 400 beds at a cost of approximately $60,000,000 (hereinafter, the "New Jail"), to service the needs of the community for the foreseeable future. D. The parties agree that the community and its taxpayers are best served by a cooperative, collective approach to public infrastructure, including the New Jail, through joint planning and financing, to maximize efficiency and promote economies of scale. E. On April 29, 2013, the Skagit County Board of Commissioners adopted Resolution No. R20130102, which found that the Existing Jail could not meet the demand of the combined volume of city and County inmates. The Resolution placed a proposition before Skagit County voters that, if passed, would authorize an additional sales and use tax at the rate of 0.3% to be used for the construction, maintenance, and operation of jail facilities, and for police and fire protection, all pursuant to RCW 82.14.450. F. On May 9, 2013, the parties entered a Provisional Agreement (the "Provisional Agreement"), providing that Skagit County would propose a ballot measure to the voters to authorize a 0.3% sales tax pursuant to RCW 82.14.450, a copy of which statute, in its form as of the date of this Agreement, is attached hereto as Exhibit A (hereinafter, the "Sales Tax Measure"), intended to service limited tax general obligation bonds to be issued by Skagit County for the construction of the New Jail, together with any refunding bonds which may be issued by Skagit County to refund the original bonds (hereinafter, the "Bonds"), jail operations, and other public safety requirements as permitted by law. The Provisional Agreement envisions the negotiation and execution of a definitive, long-term interlocal agreement to globally address jail financing and certain operational matters. G. The parties to this Agreement are willing to make financial concessions in order to obtain access to the Jail. Subject to the terms and conditions herein, the County agrees to make the Jail available for the confinement of City inmates. NOW, THEREFORE, in consideration of the foregoing, the parties agree and contract as follows: AGREEMENT 1. NEW AGREEMENT. This Agreement shall become effective when all parties set forth above have duly executed this Agreement and the conditions set forth in paragraph 2 have occurred. Until this Agreement becomes effective, the existing jail use agreements between and among the parties (or between any of the parties) shall remain in force and effect pursuant to the terms thereof. Consistent with paragraph 2 below, the County will provide prompt written notice to the parties notifying the parties that this Agreement is operative and in effect. Once this Agreement becomes effective, and as set forth herein, it shall entirely replace and supersede any and all previous agreements between the parties regarding use of the Jail, including the Provisional Agreement. 2. SALES TAX MEASURE AND EFFECTIVE DATE OF AGREEMENT. The County has placed the Sales Tax Measure on the August 6, 2013 election. In the event the Sales Tax Measure fails to pass at the August 6, 2013 election, the Sales Tax Measure will be placed on the ballot for the November 5, 2013 election. In the event that the Sales Tax Measure fails to pass at either election, (a) this Agreement shall be immediately null and void without further action by the parties; (b) the existing jail use agreements (Skagit County Contract Nos. 03186, 03187, 03188, 03189, dated September 16, 1996) between the parties shall remain in effect pursuant to the terms thereof; and (c) the County, before seeking to place an additional sales tax proposition on the ballot pursuant to RCW 82.14.450, shall afford the parties hereto ten (10) days' written notice prior • to taking legislative action to place such sales tax measure on the ballot. In the event the Sales Tax Measure passes at either election, this Agreement will become fully effective and immediately binding on the parties on the date the election is certified by the Skagit County Auditor (the "Effective Date"), consistent with its terms, without further action or consent by the parties hereto. 2 PART I —JAIL FINANCING 3. JAIL FUNDING SOURCES. Upon voter approval of the Sales Tax Measure, the parties agree that funds derived therefrom will be paid to Skagit County by the Washington State Department of Revenue, principally to (1) service the Bonds; and (2) cover increased costs associated with operation of the New Jail. Skagit County agrees to place all such funds in the Jail Fund established below in Section 4. The parties will prepare and submit a joint letter to the State Department of Revenue expressing support for the distribution formula and allowable uses set forth in this section. The following interparty adjustments shall be effective upon voter approval of the Sales Tax Measure: a. Burlington Rebate. Skagit County will remit to the City of Burlington $220,000 (the "Burlington rebate") in the first year of receipt of revenues by Skagit County, prorated if the first date of receipt is later than January. The Burlington rebate will increase (or decrease) each year thereafter, for the effective period of this Agreement, by the countywide percentage of Sales Tax Measure revenue increase (or decrease) above (or below) the preceding year. b. Anacortes Rebate. Skagit County will remit to the City of Anacortes $103,000 (the "Anacortes rebate") in the first year of receipt of revenues by Skagit County, prorated if the first date of receipt is later than January. The Anacortes rebate will increase (or decrease) each year thereafter, for the effective period of this Agreement, by the countywide percentage of Sates Tax Measure revenue increase (or decrease) above (or below) the preceding year. c. Sedro-Woolley Additional Payment. For the effective period of this Agreement, Sedro-Woolley will pay Skagit County an amount equal to 65% of actual receipts derived from Sedro-Woolley's existing 0.1% sales tax (2012 estimate is $77,513), commencing in the year .following voter approval of the Sales Tax Measure, prorated based on the actual start date of receipt of proceeds from the Sales Tax Measure, which amount will increase (or decrease) each year thereafter by 50% of the countywide percentage of Sales Tax Measure revenue increase (or decrease) above (or below) the preceding year. In no event will Sedro-Woolley pay more than an amount equal to sixty-five percent (65%) of what Sedro-Woolley actually collects in a year. d. For the purposes of a - c above, the measurement period will be based on the first 12 months of funds actually received from the State of Washington Department of Revenue ("DOR"), and annually 3 • thereafter. For example, if the sales tax is imposed beginning January 1, revenue will be received beginning in March, and therefore the measurement period in this example would be March of each year through February of the following year, e. Payments will be sent by the County to the cities of Burlington and Anacortes and by the City of Sedro-Woolley to the County in the following manner: i. Sedro Woolley will remit 100% of the balance due by February 28'h of the following year. ii. For the first calendar year in which revenue is received from DOR, the Burlington Rebate and Anacortes Rebate will be prorated for the number of months revenue is received in the calendar year, and paid out 60 days after the end of the first month that the County receives revenue from DOR. In future years, payments will be made within 90 days of the end of the measurement period (the "Payment Date"). iii. For the second year, the full rebate amount will be paid on the Payment Date. iv. For the third and-subsequent years, the rebate amount of the prior year, adjusted to reflect the percentage increase or decrease between the current year and the prior year, will be paid on the Payment Date. Example: City of Anacortes; assuming sales tax is approved in November 2013, with first revenue received June 2014. Assume countywide taxable revenue receipts for the tax decrease 10% between 2014 and 2015; and increase 5% between 2015 and 2016. The following graph is merely an example and is not intended to reflect actual rebate amounts in future years. Payment Date _ Rebate Amt August 31, 2014 $60,083 August 31, 2015 _ $103,000 August 31, 2016 $92,700 August 31, 2017 _ $97,335 4 4. JAIL FUND. Skagit County agrees to establish the Jail Fund to account for the construction and operations of the New Jail. The Jail Fund shall consist of "Total Revenues," defined as (1) bond revenues; (2) the direct funding by the County set out in paragraph 4(a) below; (3) the Sedro-Woolley payment, as set out in paragraph 3(c) above; and (4) the revenue received from the countywide Sales Tax Measure after payment of the rebates described in Sections 3 (a) and (b); and (5) all other revenues derived from or associated with the Jail enterprise and its operation. Operational expenses of the Jail will be paid by the Jail Fund. Notwithstanding any other provision of this Agreement, the first priority for payment from the Jail Fund shall be Bond Payments. a. Direct Funding by County. Skagit County agrees to place into the Jail Fund for Jail operations $5,500,000 per annum beginning January 1, 2014, from revenue sources separate from the revenue generated by the Sales Tax Measure. This amount will increase (or decrease) by the annual percentage increase (or decrease) in the Jail base operating budget from a baseline year of 2014, as defined in Exhibit B hereto. b. The Revenue Stabilization Account. Skagit County agrees to establish a fund balance to be known as the Revenue Stabilization Account (hereinafter, the "RSA"), a subcomponent of the ending fund balance of the Jail Fund. i. The RSA will be funded by all revenues deposited into the Jail Fund in excess of debt service ("Bond Payments") and other permitted expenditures from the Jail Fund. ii. During construction of the New Jail, Sales Tax Measure and other revenues in excess of that required for Bond Payments and the Operating Budget may either be applied toward New Jail project costs or applied to the RSA, at the discretion of the Finance Committee established pursuant to paragraph 5 herein. iii. There is hereby established a Minimum Funding Threshold (hereinafter, the "MFT") for the RSA, in the amount of $3,900,000 as of December 31 of each year. The intent of the MFT is to serve as a hedge against potential fluctuations in revenue derived from the Sales Tax Measure from year to year. iv. After the MFT first has been fully met, then, should the year- end RSA balance in any year thereafter be below the MFT, the difference between the MFT and the year-end RSA balance shall be considered an excess cost to be covered by 5 the parties hereto through additional financial contribution. Except for initial funding of the MFT, for the year in which the RSA is below the MFT and additional financial contribution is required, the Cities will budget for the required additional financial contribution in the following year, with payment of the additional financial contribution to the Jail Fund to occur by May 31 of the year thereafter. 1. By way of illustration, if the RSA falls below the MET in Year 1 requiring additional financial contribution, the Cities will budget for the additional financial contribution during Year 2, paying the additional financial contribution to the Jail Fund no later than May 31 of Year 3. In the interim between the year in which the additional financial contribution is identified (end of Year 1) and the payment (not later than May 31 of Year 3), the Jail Fund may utilize funds from the • RSA up to the amount of the additional financial contribution due and owing. v. If the year-end RSA balance is at or above the MFT, it may be utilized consistent with paragraph 5 of this Agreement, including distributions to parties, provided that in no event may the RSA be utilized for purposes other than Bond Payments and Operating Budget shortfalls prior to the third full year of operation of the New Jail. vi. Additional financial contribution required from, and distributions to, the parties shall be calculated according to the following formula: USAGE TOTAL USAGE "Usage" means, for any party, for the Calendar Year or portion thereof against which additional financial contribution is assessed or distribution is made from the RSA (hereinafter, the "Measurement Period"), the total number of inmate days on behalf of that party, as determined by Jail staff. An inmate day may be counted as a fraction if an inmate is held on behalf of multiple parties. For example, an inmate held on charges from two jurisdictions will be counted as for each of the two jurisdictions. "Total Usage" means the total of Usage for all of the parties for the Measurement Period. 6 vii. When the RSA is below the MFT, the RSA may be used only to fund Bond Payments (first priority) and Operating Budget shortfalls (second priority), which use will be promptly reported to the Finance Committee. c. The parties acknowledge that the County intends to issue the Bonds in reliance upon the commitments and agreements of the parties reflected in this Agreement. The Bonds, when issued, will have a term not to exceed thirty (30) years, and may be refinanced by the County, without limitation, for the purpose of debt service savings so long as the term is not extended, and Bond Payments due in any year are not increased. All references to Bond Payments include any refunding bonds that may be issued to refinance the Bonds initially issued. In the event the Department of Revenue determines that it is not able or willing to distribute the Sales Tax Measure revenues as set forth herein, the parties agree to work cooperatively to achieve the intended revenue distribution. d. The net proceeds derived by the County from the sale of the Bonds shall be deposited into the Jail Fund and used only for expenses related to the construction of the New Jail (including those pre- construction costs incurred by the County no earlier than Jan 1, 2012 and which are identified in the attached Exhibit C) and all related soft and hard costs of construction. Once the project is complete, any remaining bond proceeds will be used only as allowed by the bond documents. 5. FINANCE COMMITTEE. There is hereby established a Finance Committee, charged with oversight of Jail finances, as set forth below. a. Composition. The Finance Committee is comprised of eight members, which shall include one representative from Sedro- Woolley, one representative from Anacortes, one representative from Burlington, one representative from Mount Vernon, three representatives from Skagit County, and the Skagit County Sheriff or designee. i. The eight appointed members of the Finance Committee shall, within one-hundred twenty (120) days of the Effective Date of this Agreement, propose and select by vote an additional Finance Committee member to serve as Finance Committee Chair for a period of thirty-six (36) months from selection, after which period the Chair may be reaffirmed or a new Chair may be selected by the eight appointed members of the Finance Committee. Any member of the Finance Committee may propose a Chair. The Chair shall be selected by affirmative vote of at least six (6) appointed members of the Finance Committee. In the event the Finance Committee is unable to agree on a Chair within one- hundred twenty (120) days of the Effective Date of this agreement, the Presiding Judge, Snohomish County Superior Court, shall make the selection from the slate of candidates proposed by the Finance Committee, on application of any member of the Finance Committee. ii. Each party shall have absolute discretion to select their representative(s) and/or alternates to the Finance Committee. The executive of each party to this Agreement will promptly inform the other parties in writing of their designated representatives. The intent of this Agreement is for the parties to designate representatives with technical and subject matter expertise as necessary to exercise sound business judgment and advance the purposes of the Finance Committee as set forth herein. iii. For the purposes of this Agreement, without creating any third party beneficiary to this Agreement, Skagit County shall be considered the representative of the entire population and entities within Skagit County (other than the population within the municipal limits of the Cities party to this Agreement), including the towns of Concrete, Lyman • Hamilton, La Conner, tribal entities, and unincorporated Skagit County. b. Authority. The following matters shall be submitted to the Finance • Committee for deliberation and decision. i. Establish booking fee rates. The initial fee will be set at $40. The County shall not pay booking fees. The rate shall not change more than once annually. ii. Review preliminary annual Jail budget including any administrative charges. • iii. Review operating costs and establish resultant bed rates for third parties. iv. Determine appropriate use of the RSA after meeting the MFT, which uses may include but are not limited to establishment of a reserve fund for jail-related capital requirements; pro rata distributions to parties to this 8 Agreement to be utilized consistent with the law; jail inmate medical costs; or other uses as may be permitted by law. v, The Finance Committee shall have opportunity to review and approve any Significant Financial Decision involving the Jail Fund. For the purposes of this Agreement, "Significant Financial Decision" is defined as any single financial obligation or transaction of the Jail Fund that exceeds ten percent (10%) of the annual Jail Fund budget, exclusive of salaries and benefits. Any decision to issue refunding bonds that will not extend the term of the debt when there are Bond Payment savings shall not be considered a Significant Financial Decision. vi. When the Sheriff in his or her reasonable judgment believes the New Jail is within forty-eight (48) months of reaching Capacity, the Finance Committee shall promptly commence planning activities aimed at addressing the anticipated jail space requirement. For the purposes of this Agreement, "Capacity" is when the Jail average daily population is at or above 85% of the available number of beds for a continuous twelve (12) month period. vii. At least five (5) years prior to the expiry of this Agreement, the Finance Committee will initiate discussion of specific terms and conditions under which this Agreement could be renewed or modified. c. Powers Not Enumerated. Any authority regarding the Jail not specifically enumerated herein and assigned to the Finance Committee shall be retained by Skagit County. The Finance Committee shall not be considered as a separate legal entity. The members of the Finance Committee shall obtain all necessary legal and professional advice from the municipal entity they represent. Reasonable administrative expenses of the Finance Committee shall be paid by the Jail Fund. d. Meetings. The Finance Committee shall meet at least two (2) times per calendar year, or more frequently as otherwise required to adequately deliberate upon and decide matters delegated to the Finance Committee herein. The Finance Committee shall meet within fourteen (14) days of a request by any three (3) members of the Finance Committee. e. Procedures. The Finance Committee shall establish and publish internal rules, procedures for its meetings and operations, 9 • consistent with this Agreement, the Open Public Meetings Act, RCW Chapter 42.30, the Public Records Act, RCW Chapter 42.56, and other applicable laws. Minutes shall be kept of each meeting, and made publicly available by, at minimum, prompt publication on • • the Skagit County government website. f. Finance Committee Voting. A quorum shall consist of five (5) or more members of the Finance Committee, excluding the Chair. All decisions of the Finance Committee envisioned by this Agreement shall be done by majority vote, and immediately reduced to writing and furnished to the County. In the event of deadlock unresolved after two meetings of the Finance Committee, the Chair of the Finance Committee shall cast the deciding vote. Absent deadlock of the eight appointed members of the Finance Committee, the Chair shall not vote. g. Extraordinary Veto by Board of Commissioners. The Skagit County Board of Commissioners (by regularly convened action of the Skagit County Board of Commissioners) may veto any final decision of the Finance Committee within thirty (30) days of any final decision by the Finance Committee on grounds that a final decision of the Finance Committee (a) will jeopardize the long-term financial viability of the Jail; (b) will materially impair the ability of the County to meet then existing contractual or bond obligations; (c) is contrary to State or Federal law governing operation of the Jail; or (d) will substantially impair the safety or security of the Jail. Any final decision of the Finance Committee vetoed by the Board of Commissioners pursuant to this paragraph shall be returned to the Finance Committee for further deliberation. In the event that the Finance Committee and Skagit County Board of Commissioners cannot agree after veto and remand of any final decision within thirty (30) days, the matter shall be submitted to final, binding arbitration before a single arbitrator to be selected within thirty (30) days by the Presiding Judge, Snohomish County Superior Court. The arbitration shall be held at a mutually convenient time and location within Skagit County, not less than sixty (60) days after the selection of the arbitrator. The arbitrator shall faithfully apply the laws of the State of Washington and United States in rendering a decision. Each party shall bear its own costs and fees in the event of arbitration under this section. The arbitrator's decision may be entered in any court of competent jurisdiction. The arbitrator's decision may be appealed to the Superior Court, Snohomish County, within twenty (20) days of the arbitrator's decision, applying the scope and standard of appeal established by RCW Chapter 7.04. zo • PART II — JAIL OPERATIONS 6. CONTROL OF JAIL. The Cities acknowledge the County's statutory responsibility, ownership, and operational control over the Jail. The Jail will be administered by the County in accordance with the ordinances, policies, procedures, rules, and regulations of the County (including any emergency security rules imposed by the Sheriff), and in accordance with the rules and regulations of any agency of the State of Washington empowered to make rules governing the administration of county corrections facilities, The Cities hereby consent and agree that inmates committed to the Jail by the Cities are subject to all rules and regulations applicable to County inmates incarcerated therein, including but not limited to all terms and conditions of this Agreement. Prior to adopting new Jail operational policies that touch or concern acceptance, transfer, handling or other issues pertaining to city inmates and this Agreement, the Sheriff will reasonably consult with the chiefs of police of the parties to this Agreement. 7. AVAILABILITY OF JAIL FACILITIES. a. Capacity Operations. The New Jail will be made available to parties to this Agreement on an equal priority basis. The County will not accept non-party inmates when the New Jail is at Capacity, except as required by law or the safety of the Skagit County community, in which event the Sheriff will seek alternative accommodation for such inmate as soon as is reasonably practicable. In the event the New Jail reaches Capacity, the parties shall operate in a relationship of equality, and will pursue joint contracting for outsourcing or other alternative accommodation, to be reviewed and approved by the Finance Committee. b. Outsourcing. When the New Jail reaches Capacity, the costs of outsourcing or other accommodation for inmates of parties to this Agreement will be allocable to the Jail Fund, and, if a budget shortfall results, may be funded by the RSA pursuant to paragraph 3(c) of this Agreement, with excess cost proportionally allocable to the parties based on Usage as set forth in paragraph 4(b)(vi) of this Agreement. The Sheriff and Chiefs of Police will cooperate to utilize existing inmate outsourcing arrangements until the New Jail is operational, the costs of which will be paid by the Jail Fund, with the Cities responsible for transportation costs associated with their respective inmates. c. Interim Provisions. The foregoing provisions of this paragraph 7 shall take effect upon actual receipt of revenues from the Sales Tax Measure. The Cities shall thereupon have the right to continue to use the Existing Jail pursuant to the terms of this Agreement. 11 8. INMATE CONFINEMENT FEES. Upon actual receipt of funds from the Sales Tax Measure, the parties to this Agreement shall pay no bed rates. 9. INMATES DEFINED. a. City Inmate. As used herein, "City Inmate" shall mean those inmates originally charged in municipal courts of the Cities, and those inmates arrested by a city law enforcement officer while subject to an investigative hold. b. County Inmate. As used herein, "County Inmate" shall mean those inmates originally charged in Skagit County District Court on gross misdemeanor and misdemeanor offenses, and persons arrested for, or once charged with, any felony offense charged in Skagit County Superior Court, or held by magistrate warrant. c. Third Party Inmates. For the purposes of this Agreement, County Inmate and City Inmate shall not include those inmates who are committed to the Jail by entities that pay a contract rate to house their inmates in the Jail, or other inmates arrested by state and federal agencies. d. Material Witnesses Held In Jail. Inmate days arising from a material witness warrant shall be allocated to the party issuing the material witness warrant. 10. ARREST WARRANT OR CITATION. City law enforcement officers placing inmates in the Jail shall, in every instance, furnish an arrest warrant, probable cause affidavit, citation or other charging document to the County jailer on duty at the time. 11. TRANSFER OF CUSTODY. When custody of a City Inmate is transferred to the County, the City Inmate shall be subject to all applicable rules, regulations, and standards governing the operation of the Jail, including any emergency security rules imposed by the Jail administrator, subject to applicable law. For the purposes of this Agreement, "Custody" shall be defined as the point in time at which Jail staff accepts physical custody and control of an inmate. Any City law enforcement officer delivering an inmate to the Jail shall comply with all rules and regulations of the County Jail. 12. TRANSPORTATION. The City shall be solely responsible for transportation of its inmates to and from the Jail including but not limited to initial booking, medical services, and court appearances, PROVIDED, that in the event the County determines, in its sole discretion, that emergency transportation is necessary in order to secure medical treatment for a City Inmate, the County 12 shall provide such transportation and the responsible City shall reimburse the costs thereof. Cities may contract with the Sheriff to provide custody and/or transportation services for court appearances. 13. MEDICAL CARE AND COSTS. All inmates shall receive such medical and dental treatment when emergent and necessary to safeguard their health while in custody as required by law. Medical costs shall be allocated per state law or by subsequent agreement. The Jail Fund will absorb medical costs from injuries to inmates once in Custody. 14. CITY ACCESS TO INMATES. All City law enforcement officers and • defense attorneys shall have the right to interview City Inmates at any time inside the confines of the Jail, subject to Jail security rules and regulations. Interview rooms will be made available to City law enforcement officers as available. 15. POSTING OF BAIL. The County agrees to act as agent for City Inmates with respect to bail bonds. The County will deliver bail bonds or monies to the Municipal Court in a timely manner. 16. INMATE WORKERS. At the discretion of the Sheriff, City Inmates may be permitted to work outside the Jail when serving out a sentence. Such City Inmates may be directed to perform work on municipal property, including City Hall or the County Courthouse. City Inmates assigned to work as trustees on the public property of the City may be released to the City's Chief of Police or their agent, upon initiated receipts, and during such period shall be the sole . responsibility of the Chief of Police. 17. RELEASE OF CITY INMATE FROM COUNTY JAIL. No City Inmate confined in the Jail shall be released therefrom, except by order of the court in those matters in which said courts have jurisdiction. The Sheriff may in his or her discretion transfer inmates to another facility as necessary to effectively operate the Jail. 18. RECORD KEEPING. a. Informational Project Updates. Prior to the construction of the New Jail, the County and its Project Manager will provide reasonably regular updates to the parties to this Agreement. b. Form of Records. The County agrees to maintain a system of record keeping relative to the booking and confinement of each City Inmate in such style and manner as equivalent to County records pertaining to County Inmates. • c. City Access to Records. Records of services provided to City Inmates shall be available for review by the applicable City, unless 13 their release is expressly prohibited by applicable law concerning the confidentiality of medical records (including the federal Health Insurance Portability and Accountability Act, "HIPAA"). The parties may enter business associate agreements under the HIPAA as necessary to implement the intent of this Agreement. d. County Inmate Day Reporting. At least quarterly the County shall report to the parties the number of inmate days allocated to each party in the previous quarter, and the total number of inmate days. Such reports shall be deemed accurate unless challenged within 60 days of receipt. 19. INDEMNIFICATION. a. County Indemnification. The County shall indemnify and hold harmless the other parties to this Agreement, their officers, agents, and employees from any and all claims, actions suits, liability, loss, costs, expenses and damages of any nature whatsoever, by any reason of or arising out of any intentional or negligent act or omission of the County, its officers, agents and employees, or any of them relating to or arising out of the performance of services pursuant to this Agreement. In the event that any such claim, action, loss or damages is brought against the other parties to this Agreement, the County shall defend the same at its sole cost and expense, including attorney fees. • b. City Indemnification. Each City party to this Agreement shall indemnify and hold harmless the County and its officers, agents, and employees from any and all claims, actions, suits liability, loss, costs, expenses, and damages of any nature whatsoever, by any reason or arising out of any intentional or negligent act or omission • of the indemnifying City, its officers, agents, and employees, or any of them relating to or arising out of the performance of service pursuant to this Agreement. In the event that any such claims, action, loss or damages is brought against the other parties to this Agreement, the indemnifying City shall defend the same at its sole cost and expense, including attorney fees. 20. TERM. This Agreement shall be effective for the life of the Bonds, which shall not be more than 30 years in duration from the date of their issuance. This Agreement shall not automatically terminate, but shall be terminable by any party to this Agreement on one (1) year's written notice to each of the other parties to this Agreement. The County shall give written notice ("Bond Maturity Notice") to the Parties one year prior to the Bond Maturity (i.e. the date on which the principal amount of all bonds will be paid in full). The County will not extend or renegotiate the initial Bonds beyond their original term without the consent of the 14 parties, but may refund the Bonds without the consent of the parties when the term will not be extended and there will be Bond Payments savings. Upon receiving the Bond Maturity Notice the Parties shall meet and confer regarding the use of revenues from the Sales Tax Measure, continuation of this Agreement, and continued use of the Jail by the parties hereto. In the event the parties are unable to reach agreement after the Bonds are fully paid or defeased, the revenue derived from the Sales Tax Measure shall be distributed pro rata to each City as if it had in place a 1/10 of 1% sales tax in place (pursuant to RCW Chapter 82.14.450(2)(a) as it exists as of the Effective Date of this Agreement, see Exhibit A hereto), with the balance of the revenue derived from the Sales Tax Measure distributed pursuant to then-current law. The parties to this Agreement shall cooperate to take such actions to disburse funds in accordance with this Agreement and/or as necessary to direct the Washington Department of Revenue to disburse funds in accordance with this Agreement. 21. SURVIVAL. The provisions of paragraphs 19, 20, and 22 shall survive the termination or expiry of this Agreement. 22. VENUE AND DISPUTE RESOLUTION. No party to this Agreement shall have standing to dispute the County's use of sales tax revenues for Bond Payments done consistent with this Agreement. This paragraph establishes the sole and exclusive remedy for disputes arising under this Agreement, except as otherwise set forth herein. In the event of any dispute arising under this Agreement, the parties shall, as a material condition precedent to any suit under this Agreement, provide formal written notice of the dispute to the other party, and engage in formal mediation using a mutually agreed upon mediator. If the parties are unable to agree on a mediator within fifteen (15) days of written notice, either party may bring suit in Snohomish County Superior Court for the sole purpose of seeking appointment of a mediator. If the parties are unable to resolve their differences within thirty (30) days after mediation, venue and jurisdiction for any action arising under this Agreement shall lie in the Courts of Snohomish County, Washington.. In the event of any dispute arising under this Agreement, the Court shall award attorney fees, costs, expert witness fees, mediation costs, and all other costs related to the dispute to the prevailing party. 23. NO THIRD PARTY BENEFICIARIES. This Agreement is not intended to benefit any person, entity or municipality not a party to this Agreement, and no other person, entity or municipality shall be entitled to be treated as beneficiary of this Agreement. This Agreement is not intended to nor does it create any third party beneficiary or other rights in any third person or party, including, but limited to, any agent, contractor, subcontractor, consultant, volunteer, or other representative of either party. No agent, employee, contractor, subcontractor, consultant, volunteer or other representative of the parties hereto shall be deemed an agent, employee, contractor, subcontractor, consultant, volunteer or other representative of any other party hereto. 15 24. SEVERABILITY. In the event any term or condition of this Agreement or application thereof to any person or circumstances is held invalid by a court of competent jurisdiction, such invalidity shall not affect other terms, conditions or applications of this Agreement which can be given effect without the invalid term, condition or application. To this extent and end the terms and conditions of this Agreement are declared severable. 25. COMPLIANCE WITH LAWS. The parties to this Agreement shall comply with all applicable federal, state and local laws, rules and regulations in carrying out the terms and conditions of this Agreement. The parties shall obtain and comply with any and all necessary permits, approvals, consents and notice from or to all applicable jurisdictions prior to commencing any work or action related to this Agreement. 26. CAPTIONS AND COUNTERPARTS. The captions in this Agreement are for convenience and reference only, and do not define, limit, or describe the scope or intent of this Agreement. This Agreement may be executed in any number of counterparts, and each such counterpart hereof shall be deemed to be an original instrument, but all such counterparts together shall constitute one Agreement. 27. NO SEPARATE LEGAL ENTITY. This Agreement establishes a cooperative'undertaking, and it is not the intention of the parties to create a new or separate legal entity by this Agreement. This Agreement does not establish or create a joint venture or partnership between the parties, and no party shall be responsible for the liabilities and debts of the other parties hereto. 28. INTEGRATED AGREEMENT, This is an integrated agreement. Neither party has relied on any representation other than those expressly set forth herein in entering this Agreement. 29. NEUTRAL AUTHORSHIP. Each of the terms and conditions of this Agreement have been reviewed and negotiated with resort to legal counsel, and represents the combined work product of the parties hereto, and this Agreement shall not interpreted for or against party hereto. The parties represent that they have had a full and fair opportunity to seek legal advice with respect to the terms of this Agreement, and have either done so or have voluntarily chosen not to do so. The parties represent and warrant that they and their authorized representatives executing this Agreement have fully read this Agreement, that they understand its meaning and effect, and that they enter into this Agreement with full knowledge of its terms. 30. FURTHER ACTS. The parties agree to take such further actions and to execute documents as in their reasonable judgment may be necessary or desirable in order to carry out the terms of, and complete the transactions contemplated by, this Agreement. 16 DATED this R3 day of J&AJJ) 2013. BOARD OF COUNTY COMMISSIONERS SKAGIT COUNTY, WASHINGTON ____6Ada),-)4,0--,,adeez_A.L.) Sharon D. Dillon, Chair ‘242?- 1937-e2.0v.. Ron Wesen, Commissioner \.4A4M/X 0 ballittkL A st: Kenneth A. Dahlstedt, Commissioner • r ck...\ 1iJ Linda Harnmons, Clerk of the Board Recommen /CM Sheriff Will Reichardt Tim Holloran County Administrator Approved as to f m: Will Honea Chief Civil Deputy Prosecuting Attorney Approved as to indemnification: C ica Neill Hoyson, Risk Manage Approved as to budget: ,. :4,;(bou Trisha Logue, Budge Finance Director 17 DATED this 1 day of TY,L.1 2013 CITY OF ANACORTES '7/601,44,1 At1,41/ Mayor Dean MamieII Approved as to budget: _ A4/1_0 Steve Hoglund, Finance Director Approved as to form: Bradford E. Furlon " BA# 12924 City Attorney 18 ik DATED this C t day of 3 Lai 2013 CITY OF BURLINGTON Ma or teve Sexton Approved as to budget: _C-LltAO • Qcf,G:civ4sIn Crystil obinson, Finance Director Approved as to form: Sco o , City Attorney 19 DATED thisAj day of Ju 2013 CITY OF MOUNT VERNON t4.),,fr .. May a Jill Boudreau Approved as to budget: G' ) kt r = [lam Alicia Huschka, Finance Director Approved as to form: Kevin Rogerson, City Attorney 20 DATED this d3" day of %4J) 2013 CITY OF SEDRO-WOOLLEY Y or ik Ande on Approved as to budget: ( LJ. / died Patsy N f on, Finance Director Approved as to form: on erg, City Att r ey 21 Exhibit A RCW 82.14.450 Sales and use tax for counties and cities. (1)A county legislative authority may submit an authorizing proposition to the county voters at a primary or general election and, if the proposition is approved by a majority of persons voting, impose a sales and use tax in accordance with the terms of this chapter. The title of each ballot measure must clearly state the purposes for which the proposed sales and use tax will be used. The rate of tax under this section may not exceed three-tenths of one percent of the selling price • in the case of a sales tax, or value of the article used, in the case of a use tax. (2)(a)A city legislative authority may submit an authorizing proposition to the city voters at a primary or general election and; if the proposition is approved by a majority of persons voting, impose a sales and use tax in accordance with the terms of this chapter. The title of each ballot . measure must clearly state the purposes for which the proposed sales and use tax will be used. The rate of tax under this subsection may not exceed one-tenth of one percent of the selling price in the case of a sales tax, or value of the article used, in the case of a use tax. A city may not begin imposing a tax approved by the voters under this subsection prior to January 1, 2011. (b) If a county adopts an ordinance or resolution to submit a ballot proposition to the voters to impose the sales and use tax under subsection (1) of this section prior to a city within the county adopting an ordinance or resolution to submit a ballot proposition to the voters to impose the tax under this subsection, the rate of tax by the city under this subsection may not exceed an amount that would cause the total county and city tax rate under this section to exceed three-tenths of one percent. This subsection (2)(b) also applies if the county and city adopt an ordinance or resolution to impose sales and use taxes under this section on the same date. (c) If the city adopts an ordinance or resolution to submit a ballot proposition to the voters to impose the sales and use tax under this subsection prior to the county in which the city is located, the county must provide a credit against its tax under subsection (1) of this section for the city tax under this subsection to the extent the total county and city tax rate under this section would exceed three-tenths of one percent. (3)The tax authorized in this section is in addition to any other taxes authorized by law and must be collected from those persons who are taxable by the state under chapters 82.08 and 82.12 RCW upon the occurrence of any taxable event within the county. (4)The retail sale or use of motor vehicles, and the lease of motor vehicles for up to the first thirty-six months of the lease, are exempt from tax imposed under this section. (5) One-third of all money received under this section must be used solely for criminal justice purposes, fire protection purposes, or both. For the purposes of this subsection, "criminal justice purposes" has the same meaning as provided in RCW 82.14.340. (6) Money received by a county under subsection (1) of this section must be shared between the county and the cities as follows: Sixty percent must be retained by the county and forty percent must be distributed on a per capita basis to cities in the county. (7)Tax proceeds received by a city imposing a tax under this section must be shared between the county and city as follows: Fifteen percent must be distributed to the county and eighty-five percent is retained by the city. [2010 c 127 § 1; 2009 c 551 § 1; 2007 c 380 § 1; 2003 1st sp.s. c 24 § 2.] 22 EXHIBIT B For purposes of calculating the percentage increase or decrease in the contribution by the County's General Fund to the Jail Fund, actual expenses from one calendar year to the next will be used. The calculations will be: Total Salary/Benefit Expenses Year A =Average FTE Cost Year A Total FTE's Year A • • Total Salary/Benefit Expenses Year B =Average FTE Cost Year B Total FTE's Year B Avq FTE Cost Year B—Avg FTE Cost Year A= Percentage change in that portion Avg FTE Cost Year A of the $5.5 million attributable to Salaries/Benefits Year B Other —Year A Other = Percentage change in portion of$5,5 million Year A Other attributable to"Other" "Other" is defined as Supplies, Services, and Interfund • The following numbers are for example purposes only. Year A Year B % of Budget % Change Salaries $2,700,000 $2,900,000 Benefits 1,180,000 1,300,000 Total Sal/Ben $3,880,000 $4,200,000 FTE's 45 46.9 Avg FTE Cost $ 86,222 $ 89,552 82.87% + 3.86% Supplies $ 460,000 $ 467,500 • Services 322,000 330,000 Interfund 19,900 22,000 Total $. 801,900 $ 819,500 17.13% + 2.19% • When calculating the `Other" percentage change from one year to the next, any new or removed programs will be excluded from the calculation so there is a fair comparison of the change. Year C Contribution ($5,500,000*82.87%*(1+3.86%)) + ($5,500,000*17.13%*(1+2.19%)) = $5,696,711 Year A Contribution = $5,500,000 Year B Contribution = $5,500,000 Year C Contribution = $5,696,711 (Per example) FTE Counts will be averaged by month for the calendar year. 23 EXHIBIT C Calendar Year 2012 Salaries/Benefits - $3,425 Professional Services - $195,567 Advertising -$274 2012 Total - $199,266 Calendar Year 2013 through May 30 Salaries/Benefits - $1,869 Professional Services - $86,767 Advertising - $110 2013 Total through May 31 - $88,746 Additional expenses incurred after May 31, 2013. will also be reimbursed to County. 24