HomeMy WebLinkAbout20-089-PLN-001 Interlocal Agreement DOCUMENT TITLE: Interlocal Cooperative Agreement between Skagit County and the
Cities and Towns in Skagit County for the Joint Establishment of
the Skagit County Tourism Promotion Area
DATE SIGNED: (p l CI I 2-02.0 ("Effective Date")
PARTIES: Skagit County, a political subdivision of the State of Washington
City of Anacortes,a Washington municipal corporation
City of Burlington, a Washington municipal corporation
City of Mount Vernon, a Washington municipal corporation
City of Sedro-Woolley, a Washington municipal corporation
Town of La Conner, a Washington municipal corporation
Town of Hamilton, a Washington municipal corporation
Town of Concrete, a Washington municipal corporation
Town of Lyman, a Washington municipal corporation
SKAGIT COUNTY
SKAGIT COUNTY CONTRACT NO.: Contract# C20200219
Page 1 of 27
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INTERLOCAL COOPERATIVE AGREEMENT
FOR THE JOINT ESTABLISHMENT OF THE SKAGIT COUNTY
TOURISM PROMOTION AREA
THIS INTERLOCAL COOPERATIVE AGREEMENT FOR THE JOINT
ESTABLISHMENT OF A TOURISM PROMOTION AREA ("Agreement") is made and
entered into by and among Skagit County, a political subdivision of the State of Washington
("Skagit County"), the City of Anacortes, a municipal corporation of the State of Washington,
the City of Burlington, a municipal corporation of the State of Washington, the City of Mount
Vernon, a municipal corporation of the State of Washington, and the City of Sedro-Woolley, a
municipal corporation of the State of Washington(collectively "Cities"), and the Town of La
Conner,a municipal corporation of the State of Washington,the Town of Hamilton,a municipal
corporation of the State of Washington, the Town of Concrete, a municipal corporation of the
State of Washington, and the Town of Lyman, a municipal corporation of the State of
Washington (collectively "Towns"), under the Interlocal Cooperation Act, chapter 39.34
RCW, and the Tourism Promotion Area Act, chapter 35.101 RCW, for the purpose of
establishing a joint tourism promotion area. The purpose of the joint tourism promotion area
is to levy lodging charges to fund tourism promotion in the area of Skagit County,the Cities,
and the Towns. Skagit County,the Cities, and the Towns are collectively referred to herein as
the "Parties" and individually as a"Party."
RECITALS
WHEREAS, the tourism and recreation industry is a vital and substantial component
of Skagit County's economy and tourism promotion increases the number of visitors to the
region, increasing regional sales and supporting the local economy; and
WHEREAS,the Legislature of the State of Washington has recognized the importance
of tourism promotion in the State of Washington. In 2003 the Legislature passed Engrossed
Substitute Senate Bill No. 6026, codified at chapter 35.101 RCW (the "TPA Act"),
authorizing counties,cities,and towns to enter into interlocal agreements under chapter 39.34
RCW to establish tourism promotion areas. The purpose of tourism promotion areas is to
generate revenue to be used exclusively to promote tourism in the specific promotion area;
and
WHEREAS, the Operators of Lodging Businesses, as those terms are defined below,
who would pay sixty percent(60%)or more of the proposed Lodging Charges throughout the
Cities, Towns, and Skagit County, are preparing to initiate the formation of a tourism
promotion area pursuant to the TPA Act. The Operators of Lodging Businesses expect to
commence the process by presenting to Skagit County an•Initiation Petition, as provided for
in RCW 35.101.020, to form the Skagit County TPA. The proposed boundaries of the area
will be Skagit County, Anacortes, Burlington, Mount Vernon, Sedro-Woolley, La Conner,
Hamilton, Concrete, and Lyman(the "Skagit County TPA"); and
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WHEREAS, depending on occupancy rates, the Operators of the Lodging Businesses
project that on an annual basis, the proposed Skagit County TPA will generate approximately
$500,000.00 in revenue for tourism promotion. This amount is an estimate. The amount will vary
from year to year depending upon the fluctuating occupancy rates of Lodging Businesses; and
WHEREAS, the revenue stream from the Lodging Charges, as defined below, will
establish and promote a Skagit County tourism promotion program to bring more visitors to
the area, bolster occupancy at Lodging Businesses, retain current jobs and create new jobs,
increase business at restaurants and retail stores, and increase patronage in the arts, cultural,
recreational, entertainment, and sporting venues in an increasingly competitive marketplace;
and
WHEREAS,Skagit County,as the Legislative Authority as defined below,will impose
the Lodging Charges. Skagit County will also contract with the State of Washington,
Department of Revenue for the administration and collection of the Lodging Charges; and
WHEREAS,Lodging Charges received from the proposed Skagit County TPA will be
remitted to Skagit County as provided for in chapter 35.21 RCW. These resources, under the
advisement of the Skagit TPA Advisory Board,will be used by Skagit County to contract with
tourism destination marketing organizations, and other such organizations, to promote the
area of Skagit County, the Cities, and the Towns, with an increase in tourism throughout the
area. The promotion of the region is expected to provide economic benefit to businesses and
industries that are connected to the Lodging Business industry and important to the health of
the local economy; and
WHEREAS, the Parties now wish to enter into this Agreement for the purpose of
appointing a Legislative Authority to receive the Initiation Petition and otherwise carry out
the terms of the TPA Act and this Agreement,in order to facilitate the formation and operation
of the Skagit County TPA.
NOW, THEREFORE, in consideration of the mutual covenants, conditions, and
promises contained herein, the Parties agree:
AGREEMENT
1. Defmitions.
In addition to the terms defined in the Recitals above, the following terms shall have the
meanings set forth below:
1.1 "Agreement" means this Interlocal Agreement for the Joint
Establishment of a Tourism Promotion Area within the boundaries of Skagit County,
Burlington, Mount Vernon, Sedro-Woolley, La Conner, Concrete, Hamilton, and Lyman by
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and among the Parties entered into pursuant to the TPA Act and the Interlocal Cooperation
Act, as they may be amended from time to time. Notwithstanding the foregoing, it is
acknowledged and agreed that if Hamilton, Concrete, or Lyman("Small Towns")elect not to
enter into this Agreement, it shall not nullify this Agreement. Rather, in the event one or more
of the Small Towns opt not to enter into this Agreement, the Agreement will continue in full
force and effect except to the extent: 1) those Small Towns that do not enter into this
Agreement shall not be a party to this Agreement; 2) the Skagit County Tourism Promotion
Area shall not include the geographic area of those Small Towns, if any, that are not a party
to this Agreement; and 3) the Small Towns not a party to this Agreement will not be eligible
to be a representative, or appoint a designee,to the Skagit TPA Advisory Board.
1.2 "Anacortes"means the City of Anacortes, a municipal corporation of the
State of Washington, organized under the laws and statutes of the State.
1.3 "Annual Budget"means the annual budget approved pursuant to Section
8 of this Agreement.
1.4 "Annual Business Plan" means the annual business plan approved
pursuant to Section 8 of this Agreement.
1.5 "Burlington"means the City of Burlington,a municipal corporation of the
State of Washington, organized under the laws and statutes of the State.
1.6 "Concrete" means the Town of Concrete, a municipal corporation of the
State of Washington, organized under the laws and statutes of the State.
1.7 "Consultant" mean one or more consultants, organizations including
tourism destination marketing organizations or other similar organizations, that Skagit
County, as the Legislative Authority of the Skagit County TPA, may contract with and/or
consult with, under the advisement of the Skagit TPA Advisory Board, on matters relating to
the Skagit County TPA, including but not limited to the operation and management of the
Skagit County TPA. When used in this Agreement, the defined term Consultant refers to the
particular consultant(s)that Skagit County,as the Legislative Authority,contracts with for the
operation and management of the Skagit County TPA.
1.8 "Hamilton" means the Town of Hamilton, a municipal corporation of the
State of Washington, organized under the laws and statutes of the State.
1.9 "Initiation Petition" means the initiation petition presented to the
Legislative Authority pursuant to the TPA Act meeting the requirements set forth in RCW
35.101.020.
1.10 "Interlocal Cooperation Act" means chapter 39.34 RCW, as may be
amended from time to time.
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1.11 "La Conner" means the Town of La Conner, a municipal corporation of
the State of Washington, organized under the laws and statutes of the State.
1.12 "Legislative Authority" means the Legislative Authority of the Skagit
County TPA appointed pursuant to Section 3 of this Agreement and having the duties and
responsibilities as set forth in the TPA Act.
1.13 "Lodging Business"means a business located within the Skagit County
TPA that furnishes lodging taxable by the State under chapter 82.08 RCW that has 40 or more
lodging units. Lodging facilities with fewer than 40 rooms are not considered a Lodging
Business for the purpose of this Agreement and are exempt from any charges imposed under
chapter 35.101 RCW or this Agreement.
1.14 "Lodging Charges" means the charges set forth in the Lodging
Businesses' Initiation Petition to the Legislative Authority as provided for in RCW
35.101.020 and .050, and adopted by the Legislative Authority. The Legislative Authority
will, in turn, impose the Lodging Charges on the Operators of Lodging Businesses within the
Skagit County TPA. These charges will be passed on by the Operators to the guests of the
Lodging Businesses,under the authority of the TPA Act,for the purpose of providing funding
for tourism promotion in the boundaries of the Skagit County TPA.
1.15 "Lyman"means the Town of Lyman, a municipal corporation of the State
of Washington, organized under the laws and statutes of the State.
1.16 "Management Agreement" means the agreement(s) for the operation
and management of the Skagit County TPA, including but not limited to,agreements entered
into between Skagit County and Consultant.
1.17 "Mount Vernon" means the City of Mount Vernon, a municipal
corporation of the State of Washington, organized under the laws and statutes of the State.
1.18 "Operator"or"Operator of a Lodging Business"means an operator of a
Lodging Business, whether in the capacity of owner, general manager, lessee, sublessee,
mortgagee in possession, licensee, or any other similar capacity that has the authority to act
on behalf of, and bind,the Lodging Business.
1.19 "Partners" means a third-party partner that the Skagit County TPA may
collaborate and partner with, share resources with, and advance common goals, consistent with
the objectives of the Skagit County TPA and considering the recommendations and input from
the Skagit TPA Advisory Board all as set forth in this Agreement. Skagit County, as the
Legislative Authority, shall be authorized to enter into Memoranda of Understanding and other
agreements with such Partners, after considering the recommendations and input from the Skagit
TPA Advisory Board. Partners may include, but are not limited to: a) any of the Parties to this
Agreement; b) Tribal Communities located within Skagit County, including, but not limited to
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the Swinomish Tribe, Samish Indian Nation,the Upper Skagit Indian Tribe,and the Sauk-Suiattle
Indian Tribe; c)the Port of Skagit,the Port of Anacortes, and other ports that may be established
within Skagit County; and d) individuals,businesses and organizations.
1.20 Sedro-Woolley" means the City of Sedro-Woolley, a municipal
corporation of the State of Washington, organized under the laws and statutes of the State.
1.21 "Skagit County" means Skagit County, a political subdivision of the
State of Washington.
1.22 "Skagit County Lodging Association PS"means the nonprofit professional
service corporation formed March 17,2017 comprised of lodging business professionals in Skagit
County for the purpose of providing tourism industry and marketing expertise, or its successor;
1.23 "Skagit County Tourism Promotion Area" means the geographic area
identified in the Initiation Petition, subject to the provisions of Section 1.1.
1.24 "Skagit County TPA" means the Skagit County Tourism Promotion
Area.
1.25 "Skagit TPA Advisory Board" means an advisory board created by the
Legislative Authority pursuant to Section 7 of this Agreement.
1.26 "State" means the State of Washington.
1.27 "Tourism Promotion" means actions and expenditures designed to
increase domestic and international tourism and convention business, including, but not
limited to, promotion, branding, advertising, publicizing, marketing, and the preparation and
distribution of information for the purpose of encouraging and welcoming travelers, visitors,
and tourists to the Skagit County TPA. Such activities include,but are not limited to,strategic
planning, market research, creative development, media placement, metrics, sales activities,
and designing,hosting and communicating about events relating to promotion and marketing
of the Skagit County TPA, operating tourism destination marketing organizations, or
contracting with such organizations or other similar organizations, to administer the
operation of the Skagit County TPA, and administration, operation, start-up costs, and
management support for such services, including, but not limited to, overhead costs
(including office rent, supplies, equipment and administrative costs incurred by the
Legislative Authority arising out of its role as the Legislative Authority for the Skagit County
TPA), staff costs, public notice advertising, legal and accounting costs, and auditing costs,
including audits of the Parties and Consultant relating to or arising from this Agreement.
2. Purpose of Agreement.
The purpose of this Agreement is to: (1)promote tourism within the boundaries of the
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Skagit County TPA by appointing a Legislative Authority for the purpose of accepting an
Initiation Petition for the formation of the Skagit County TPA; (2)memorialize the agreement
among the Parties relating to the Skagit County TPA; and (3) provide for the structure,
governance, and administration of the Skagit County TPA. Once created,the Skagit County
TPA will permit the collection of Lodging Charges from Lodging Businesses in order to fund
Tourism Promotion.As provided for in RCW 35.101.020,the Initiation Petition must describe
the boundaries of the proposed tourism promotion area, the proposed uses and projects to
which the proposed revenue from the Lodging Charges will be used and the total estimated
costs, the estimated rate for the Lodging Charges with a proposed breakdown by class of
Lodging Businesses, if such classification is to be used, and the signatures of the Operators of
the Lodging Businesses in the proposed area who would pay sixty percent or more of the
proposed Lodging Charges.
3. Appointment of Legislative Authority.
Skagit County is hereby appointed as the Legislative Authority of the Skagit
County TPA for purposes of this Agreement and the TPA Act. References in this Agreement
to the Legislative Authority shall mean Skagit County, serving in its capacity as the
Legislative Authority of the Skagit County TPA. Skagit County shall, in turn, act through its
legislative authority,the Board of County Commissioners ("Commissioners").
It is hereby understood and agreed by the Parties that Skagit County, serving in its
capacity as the Legislative Authority, shall, after receiving the Initiation Petition, proceed
with considering and adopting a resolution of intention, as provided for in RCW
35.101.030,to establish the Skagit County Tourism Promotion Area designated to include
the jurisdictional boundaries of Skagit County, the Cities, and the Towns, subject to the
provisions of Section 1.1, and hold a public hearing to consider the establishment of the
Skagit County TPA, as provided for in RCW 35.101.030(1), after providing proper notice
under the terms of the TPA Act, including those set forth in RCW 35.101.060.
It is understood and agreed to by the Parties that the purpose of forming the Skagit
County TPA is to provide an additional source of revenue to be used to fund Tourism
Promotion within the boundaries of the Skagit County TPA.
Notwithstanding anything herein to the contrary, if the Skagit County TPA is not
formed by September 1, 2020, this Agreement shall terminate and shall be of no further
force or effect. Provided the Skagit County TPA is formed by September 1, 2020, Skagit
County shall proceed in the manner described in this Agreement and as provided for in
the TPA Act, acting as the Legislative Authority of the Skagit County TPA.
4. Powers and Obligations of the Legislative Authority.
The Parties acknowledge and agree Skagit County is being appointed solely to serve
as the Legislative Authority for purposes of the TPA Act. The day to day operations of the
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Skagit County TPA, including but not limited to,the management,planning, and expenditure
of collected Lodging Charges, shall be governed and administered as provided for in this
Agreement and shall be managed by a Consultant appointed by, and contracted with Skagit
County, as manager and operator of the Skagit County TPA, as provided for in Section 8
below. Skagit County, when acting in its capacity as Legislative Authority, shall have the
authority to:
a) Receive the Initiation Petition from the Lodging Businesses,
adopt a resolution of intent to form the Skagit County TPA, hold a public hearing as required
by the TPA Act, and otherwise carry out the terms of the TPA Act;
b) Pursuant to the authority of chapter 35.101 RCW, by ordinance
establish and form a Tourism Promotion Area, known as the Skagit County Tourism
Promotion Area, to include the unincorporated area of Skagit County and the entire area
within the corporate limits of the Cities and Towns, establish rates of Lodging Charges and
levy Lodging Charges pursuant to the terms of this Agreement, the Initiation Petition,and the
TPA Act;
c) In accordance with RCW 35.101.130(1), may create a Skagit
TPA Advisory Board to make recommendations to Skagit County as the Legislative Authority
regarding the use of Lodging Charges collected pursuant to this Agreement;
d) As provided for in RCW 35.101.130(2), enter into agreements
with third parties, including Consultant and Partners, as necessary or appropriate to fully
implement the purposes of this Agreement and the Skagit County TPA, including but not
limited to, agreements with tourism destination marketing organizations, or other similar
organizations, to administer the operation of the Skagit County TPA;
e) Adopt an Annual Budget and an Annual Business Plan for the Skagit
County TPA. The Annual Budget and Annual Business Plan shall be prepared and proposed
by the Consultant and presented to the Skagit TPA Advisory Board for review and
consideration and recommendation to the Legislative Authority, Skagit County, as provided
for in Section 8;
0 Conduct regular and special meetings regarding the Skagit
County TPA;
g) Enter into agreements with the State of Washington, Department
of Revenue,as provided for in RCW 35.101.090,and receive funds from federal,state or local
agencies and distribute such funds to parties and organizations administering the operation of
the Skagit County TPA;
h) Receive and account for all funds allocated to the Skagit County
TPA; and
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i) Engage in any and all other acts necessary or appropriate to
further the goals of this Agreement and to form the Skagit County TPA.
5. Levy of Lodging Charges on Lodging Businesses within the Skagit County TPA.
5.1 Adoption of Ordinance. By adoption of ordinance, Skagit County as the
Legislative Authority under the authority of chapter 35.101 RCW, will levy Lodging Charges
on the Operators of Lodging Businesses within the Skagit County TPA in accordance with the
classifications as set forth in the Initiation Petition. The Parties acknowledge and agree,
Lodging Charges shall not apply and shall not be imposed upon rooms: a) in which the
occupant has stayed 30 or more continuous days as provided for in WAC 58-20-166, as may
be amended; b) in which the United States government is directly paying for the rooms as
provided for in WAC 458-20-166(5)(h), as may be amended; and c) as provided for in RCW
35.101.055, consisting of temporary medical housing exempt under RCW 82.08.997, as may
be amended.
5.2 Contract with the Department of Revenue. The Legislative Authority
shall contract with the State Department of Revenue for the administration and collection of
the Lodging Charges pursuant to the provisions of RCW 35.101.090.As provided for in RCW
35.101.100, Lodging Charges shall be deposited into the local tourism promotion account
created in the custody of the State Treasurer. In accordance with the provisions of RCW
35.101.100, the State Treasurer will have the authority to distribute the revenue allocable to
the Skagit County TPA, to the Legislative Authority, on a monthly basis. Skagit County, as
the Legislative Authority, shall act as fiscal agent for the Skagit County TPA and shall be
responsible for receiving Lodging Charges from the State Treasurer and holding such funds
in a segregated account(s) until remitted to the Skagit County TPA and/or its Consultant
pursuant to Section 8 of this Agreement.
5.3 Change in Rates. Any change in the Lodging Charges rates, or
classification as set in the resolution of the Legislative Authority, shall be made only by
amendment of the ordinance by the Legislative Authority, and only upon written request by
the Operators of Lodging Businesses in the proposed area who would pay sixty percent or
more of the proposed charges.
5.4 Nature of Lodging Charges. It is understood and agreed by the Parties
that the Lodging Charges imposed in the Skagit County TPA are not a tax on the "sale of
lodging" for the purposes of chapter 82.14 RCW. It is further understood and agreed by the
Parties the Lodging Charges imposed under this Agreement are in addition to the special
assessments that may be levied under chapter 35.87A RCW.
6. Use of Revenue Generated.
The revenue generated from the Lodging Charges collected by the State Department
of Revenue and remitted to the Legislative Authority will be held in a designated account to
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fund Tourism Promotion of the Skagit County TPA in accordance with the Annual Budget
and Annual Business Plan adapted by the Legislative Authority. Included within the scope of
Tourism Promotion is the administration, operation, formation, and start-up costs associated
with the Skagit County TPA and the ongoing management and maintenance of the Skagit
County TPA.
7. Establishment of a Skagit TPA Advisory Board. The Parties to this Agreement agree
that Skagit County, as the Legislative Authority, has the authority under the TPA Act to establish
the Skagit TPA Advisory Board as provided for herein. The Skagit TPA Advisory Board may
make recommendations to the Legislative Authority regarding the way in which revenue derived
from the Lodging Charges is to be used to promote tourism within the Skagit County TPA and
work with the Consultant in reviewing, considering, and recommending the Annual Budget and
Annual Business Plan to the Legislative Authority for consideration and adoption.
a) The members of the Skagit TPA Advisory Board will include,to the
extent practical, the following: (i) a representative, or designee, recommended by each of the
Parties to this Agreement except that the towns of Lyman, Hamilton, and Concrete shall jointly
recommend one member to the Skagit TPA Advisory Board, subject to the provisions of Section
1.1; (ii) seven members recommended by the Skagit County Lodging Association PS or its
successor; (iii) one member recommended by the Economic Development Alliance of Skagit
County ("EDASC") or its successor; (iv) one member recommended by the Skagit County
Chamber Executive Directors' Association ("SCCEDA") or its successor; and (v) one additional
member selected by the Legislative Authority. In the event Skagit County Lodging Association
PS, EDASC, or SCCEDA no longer exist and do not have a successor, the Legislative Authority
will designate other designees to serve on the Skagit TPA Advisory Board representative of the
interests of the original member that is no longer in existence.
b) The initial members of the Skagit TPA Advisory Board shall serve
staggered terms,with one-third of the members serving one-year terms,one-third of the members
serving two-year terms,and one-third of the members serving three-year terms as set by Resolution
of the Legislative Authority.At the initial meeting of the Skagit TPA Advisory Board,its Members
shall appoint a chair to provide and coordinate notice of future meetings of the Skagit TPA
Advisory Board and to chair the meetings. The Skagit TPA Advisory Board will consider and
adopt standing rules, intended to supplement those set out herein, regarding notices, meetings,
attendance,member terms,minutes,and decision-making of the Skagit TPA Advisory Board. The
affirmative vote of a majority of a quorum of the Skagit TPA Advisory Board will be required to
carry any motion,to adopt any rule,or to pass any measure.A quorum shall consist of forty percent
(40%)of the appointed membership.
c) Each member of the Skagit TPA Advisory Board will serve to the
best of their ability,working on behalf of the goals and objectives of the Skagit County TPA. The
Skagit County TPA and the Skagit TPA Advisory Board will develop a conflict of interest policy
that each member of the Skagit TPA Advisory Board will execute. The members' work on behalf
of the Skagit TPA Advisory Board,and the Skagit County TPA,will be without charge or payment.
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8. Management of Skagit County TPA;Annual Budget and Business Plan; Reporting
Requirements.
8.1 Contract. Skagit County, as the Legislative Authority, may contract,
with input and recommendations from the Skagit TPA Advisory Board, with Consultant
pursuant to one or more Management Agreements for the management and operation of the
Skagit County TPA. The Parties acknowledge and agree Consultant will advise and make
recommendations to the Skagit TPA Advisory Board and Skagit County, as the Legislative
Authority,on all matters related to the Skagit County TPA and to carry out its purposes as set
forth in this Agreement. Such services shall include administering the activities and programs
of the Skagit County TPA and preparing a proposed Annual Budget and Annual Business Plan
for the Skagit County TPA for the review and consideration of the Skagit TPA Advisory Board
and Skagit County, as provided for in more detail in Section 8.2 below.
8.2 Annual Budget and Annual Business Plan. The Consultant shall prepare
and propose an Annual Budget and Annual Business Plan to the Skagit TPA Advisory Board
for its review,consideration and input.The Skagit TPA Advisory Board will,in turn,propose
to Skagit County, as the Legislative Authority, a recommended Annual Budget and Annual
Business Plan. Skagit County, as the Legislative Authority, will either adopt the
recommended Annual Budget and Annual Business Plan as submitted, or return the Annual
Budget and Annual Business Plan to the Skagit TPA Advisory Board for further review and
consideration before again presenting the Annual Budget and Annual Business Plan to Skagit
County, as the Legislative Authority, for review and adoption. In the event the Skagit TPA
Advisory Board does not present a recommended Annual Budget and Annual Business Plan
to the Legislative Authority by the date annual budgets are due to the County Auditor as
established annually by resolution signed by the Board of County Commissioners, then the
Legislative Authority may create an Annual Business Plan and Annual Budget with or
without the assistance of the Consultant. The TPA Advisory Board may request budget
amendments in conjunction with the Legislative Authority's regularly scheduled quarterly
budget amendment process. In the first year of the Skagit County TPA operation and after
collection of revenues derived from Lodging Charges, the Skagit TPA Advisory Board may
recommend a partial year Annual Budget and Annual Business Plan for Lodging Charges
expenditures for the Legislative Authority's consideration as part of the Legislative
Authority's regularly scheduled quarterly budget amendment process.
Skagit County, as the Legislative Authority,will consider the proposed Annual
Budget and Annual Business Plan recommended by the Skagit TPA Advisory Board, setting
forth the anticipated revenues from the Lodging Charges for the upcoming fiscal year and
providing for the proposed use of such revenue, for the purposes set forth in this Agreement,
for the upcoming fiscal year, and once approved, will provide a copy of the Annual Budget
and Annual Business Plan to the Parties. The Annual Budget shall consist of:
a) A list of the Lodging Businesses subject to Lodging Charges and
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an estimate of the projected aggregate revenue to be received from all such Lodging Businesses
(this projection shall be based on a collective basis rather than that projected by individual
Lodging Businesses); and
b) A statement of the proposed budget for all Skagit County TPA
activities and programs to be funded from Lodging Charges during the ensuing fiscal year.
8.3 Fiscal Agent. All Lodging Charges received by Skagit County, as fiscal
agent for the Skagit County TPA,from the State Department of Revenue,and any interest thereon,
shall be deposited by Skagit County in a special account,for the benefit of the Skagit County TPA.
Payments to Consultant will be made as provided for in contracts executed by Skagit County and
Consultant. Provided, however, no revenue from the Lodging Charges shall be transferred in any
fiscal year until after the adoption of that year's fiscal Annual Budget.
8.4 Other Marketing Efforts. The Parties acknowledge and agree that
revenue derived from the Lodging Charges is intended to enhance, supplement, and extend
the existing tourism marketing efforts of the Parties and to attract more visitors, both business
and leisure visitors,to Skagit County,bolster Lodging Business occupancy,retain current jobs and
create new jobs, increase business at restaurants and retail stores, and increase patronage at arts,
cultural, and sporting venues within the Skagit County TPA in an ever increasingly competitive
marketplace.
9. Meetings.
9.1 Meetings. All meetings of the Legislative Authority and the Skagit TPA
Advisory Board shall be held in full compliance with the Washington Open Public Meetings
Act, chapter 42.30 RCW, as may be amended.
9.2 Quorum. A quorum for a meeting of the Skagit TPA Advisory Board
shall consist of forty percent (40%) of the appointed membership, as provided for in Section
7. In the absence of a quorum at any such meeting, the meeting may be adjourned as allowed
by and pursuant to RCW 42.30.090, as may be amended.
10. Initial Duration; Withdrawal of a Party and Termination.
10.1 Initial Term. The initial duration of this Agreement shall be for a period
of ten years from its Effective Date ("Initial Term"), subject to amendment as provided for in
Section 13.9. The Parties agree, however, that in the fifth year of the Initial Term, they will
review the Agreement, and its terms, and consider whether they wish to make any
amendments to the Agreement as provided for in Section 13.9.
10.2 Withdrawal from Agreement; Termination by the Parties. Any Party to
this Agreement may withdraw its participation in this Agreement, and in the Skagit County
TPA, by providing written notice, and serving that notice to the Legislative Authority, all as
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provided herein. No Party is permitted to withdraw, however, until this Agreement has been
in force at least three years from the Effective Date. Once this Agreement has been in force
for three years, any Party may withdraw by providing at least one year notice of its intent to
withdraw. By requiring at least one year notice prior to withdrawing from the Skagit County
TPA, the Parties acknowledge and agree the importance of notice well in advance of the
Skagit County TPA's budget and planning cycle.The Party giving notice of intent to withdraw
may revoke its notice by giving written notice of revocation to the Legislative Authority,
provided such revocation is provided within forty-five days of the original notice.
Within 90 days after receiving proper notice from a Party that it wishes to withdraw
its participation in this Agreement, as provided for in RCW 35.101.140, as may be amended,
the Legislative Authority shall disestablish the requested area by ordinance following a
hearing to receive public comment regarding the proposed boundary revision and/or
disestablishment of an area of the Skagit County TPA. As provided for in RCW 35.101.140,
as may be amended, and as applicable, before adopting such an ordinance, the Legislative
Authority shall adopt a resolution of intention: (i) identifying the Party that has given notice
of withdrawal, (ii) stating that Skagit County TPA may be modified or terminated, as
applicable, (iii) describing the change or changes proposed, or indicating it is the intention to
revise the boundaries or disestablish the Skagit County TPA, and (iv) providing the time and
place of a public hearing to be held by the Legislative Authority on the proposed action;
provided, the public hearing shall be at least 15 days prior to consideration of the proposed
action. Unless the written notice of withdrawal has been revoked by the withdrawing Party
and accepted by the Legislative Authority, the revision or disestablishment of the affected
area of the Skagit County TPA shall become effective on the date specified by the Legislative
Authority, however, such effective date shall not exceed 45 days from the completion of the
public hearing considering the revision of TPA boundaries or disestablishment.
For the sake of clarity, it is the intention of the Parties that this Section 10 provides for
a method of withdrawal and/or termination of this Agreement that is initiated solely by a Party
to this Agreement. This Section 10 is intended to be in addition to the method of modification
and/or disestablishment of the Skagit County TPA as provided in Section 11 below.
11. Modification or Disestablishment of the Skagit County TPA by Petition.
11.1 Modification or Disestablish. Upon receipt of a petition expressing the
wish to revise the boundaries, or disestablish some or part of the Skagit County TPA, bearing
the signatures of the Operators of Lodging Businesses in the Skagit County TPA who pay
60% or more of the total Lodging Charges in the area proposed to be disestablished, as
provided for in RCW 35.101.020(4), as may be amended, the Legislative Authority may
disestablish the requested area by ordinance following a hearing before the Legislative
Authority, as provided for in RCW 35.101.140, as may be amended. In doing so, as provided
for in RCW 35.101.140,as may be amended,the Legislative Authority shall adopt a resolution
of intention to revise the boundaries or disestablish the Skagit County TPA,and shall state the
time and place of a public hearing to be held by the Legislative Authority to consider the
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proposed action,provided,the public hearing shall be at least 15 days prior to consideration of
the proposed action.
11.2 Action. After conducting a public hearing to take public comment on the
proposed action as required under Section 11.1 above, the Legislative Authority may, by
ordinance, disestablish the requested area of the Skagit County TPA resulting in a revision of
boundaries.Notwithstanding the foregoing, if at a hearing held pursuant to Section 11.1 above
a petition objecting to the boundary revision or disestablishment is presented, with the
signatures of Operators of Lodging Businesses in the Skagit County TPA who pay 60% or
more of the Lodging Charges within the area proposed to be removed from the Skagit County
TPA,the Skagit County TPA shall not be altered or disestablished. If such a petition objecting
to the proposed boundary revision or disestablishment of the affected area is not presented at
the hearing, and provided the statutory requirements of the Act, as may be amended, are met,
the Legislative Authority shall proceed by ordinance to disestablish an area of the Skagit
County TPA.
11.3 No Obligation. Notwithstanding anything to the contrary in this
Agreement, in no case shall any of the Parties be obligated to satisfy the outstanding
obligations of the Skagit County TPA from such Parry's moneys, funds, or other sources of
revenue unless it otherwise agrees to in writing.
12. Accounting, Books, and Records.
12.1 Funds and Audit. As provided for in RCW 35.101.090, as amended, the
Lodging Charges shall be administered by the State of Washington, Department of Revenue and
shall be collected by Lodging Businesses from those persons who are taxable by the State of
Washington under chapter 82.08 RCW. As provided for in RCW 35.101.09(3) the Lodging
Charges authorized by RCW chapter 82.08, as amended, and this Agreement that are collected by
the State of Washington, Department of Revenue("DOR"), shall be deposited by the DOR in to a
separate Skagit County TPA tourism promotion account, as provided for in RCW 35.101.090 and
.100.These monies shall be subject to the same audit and fiscal controls as other funds held by the
designated County Treasury and in full compliance with record-keeping and accounting methods
required by Washington law and/or the Washington State Auditor and Washington State Treasurer
in compliance with the requirements of any applicable state program. Interest on investment of the
Skagit County TPA funds shall accrue to the benefit of the Skagit County TPA.
12.2 Records, Audits and Reports: Public Records Requests. At the expense of
the Skagit County TPA, the Legislative Authority shall maintain records and accounts of all
operations and expenditures of the Skagit County TPA. All records shall be maintained and be
available for inspection and photocopying under the provisions of the Washington Public Records
Act, chapter 42.56 RCW ("PRA"), as amended, subject to any exemptions or limitations on
disclosure.
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13. Miscellaneous Provisions.
13.1 Waiver. No elected official,officer,employee,or agent of Skagit County,
the Cities, or the Towns has the power, right, or authority to waive any of the conditions or
provisions of this Agreement. No waiver of any breach of this Agreement by the Parties shall
be held to be a waiver of any other or subsequent breach. Failure of the Parties to enforce any
of the provisions of this Agreement,or to require performance of any of the provisions herein,
shall in no way be construed to be a waiver of such conditions, nor in any way effect the
validity of this Agreement or any part hereof, or the right of the Parties to enforce each and
every such provision.
13.2 Records. All records prepared, owned, used, or retained by Consultant
in conjunction with operating or administering the activities and programs of the Skagit
County TPA as provided for under the terms of this Agreement shall be made available by
Consultant, upon request, to the Parties.
13.3 Property and Equipment. Except as otherwise agreed by Skagit County
and Consultant, Skagit County shall be the owner of all property and equipment purchased in
furtherance of this Agreement from the revenue generated by the Lodging Charges. In the
event of the termination of the Management Agreement with Consultant, Consultant shall
make the property and equipment owned by Skagit County available to the successor manager
for its use in conjunction with providing similar services to the Skagit County TPA. Provided
further, in the event of disestablishment of the Skagit County TPA,all property and equipment
purchased by Consultant from revenue generated by the Lodging Charges shall be retained by
Skagit County and used for any lawful purpose.
13.4 Complete Agreement; Supersedure. This Agreement contains the
complete and integrated understanding and agreement between the Parties and supersedes,
repeals, and replaces in whole any understanding, agreement, or negotiation whether oral or
written not set forth herein including but not limited to any previous agreement adopted by a
Party concerning the establishment of the Skagit County TPA. All the terms and conditions
agreed upon by the Parties concerning the establishment of the Skagit County TPA and the
collection of Lodging Charges from Operators of Lodging Businesses. No other
understandings, oral or otherwise, regarding the subject matter of this Agreement shall be
deemed to exist or to bind any of the Parties hereto. The Parties have read and understand
each of the terms of this Agreement, and affirm that no representation,promise,or agreement
not expressed in this Agreement has been made to induce the officials of Skagit County, the
Cities, or the Towns, to execute this Agreement.
13.5 Severability. In the event any provision of this Agreement shall be
declared by a court of competent jurisdiction to be invalid, illegal, or unenforceable, the
validity, legality, and enforceability of the remaining provisions shall not, in any way, be
affected or impaired thereby.
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13.6 Each Party Responsible for Own Negligence. Each Party to this
Agreement will be responsible for the acts and omissions of its own elected officials, officers,
employees, and agents in the performance of this Agreement. None of the Parties will be
considered the agent of the other and none of the Parties will assume any responsibility to the
other Parties for the consequences of any act or omission of any person, firm, governmental
authority or agency or entity not a Party to this Agreement. The Parties shall each indemnify
and hold harmless one another, and their respective elected officials, officers, employees, and
agents, from any and all liabilities, damages, fees, costs, and expenses, including but not
limited to, claims,judgments, or awards of damages arising out of the acts or omissions of
any of them or of their respective elected officials, officers, employees, and agents, and shall
process and defend at their own expense any and all claims, demands, suits, at law or equity,
actions,penalties, losses,damages,or costs,of whatsoever kind or nature,brought against any
of them, arising out of, in connection with, or incident to this Agreement and/or any of their
performance, or failure to perform, any aspect of this Agreement.
13.7 Filing of Agreement. This Agreement shall become effective
immediately after it is duly adopted and executed by the Board of the Skagit County
Commissioners, City Council of the City of Anacortes, City Council of the City of Burlington,
City Council of the City of Mount Vernon, City Council of the City of Sedro-Woolley, Town
Council of the Town of La Conner, and provided they enter into this Agreement, the Town
Council of the Town of Hamilton, Town Council of the Town of Concrete, and Town Council
of the Town of Lyman, and shall be filed and/or posted as required by RCW 39.34.040 of the
Interlocal Cooperation Act.
13.8 Notice. Any formal notice or communication to be given among the
Parties to this Agreement shall be deemed properly given, if delivered either by physical or
electronic means, or if mailed postage prepaid and addressed to:
Skagit County
1800 Continental Place, Suite 100
Mount Vernon, WA 98273
City of Anacortes
Post Office Box 410
Anacortes, WA 98221
City of Burlington
833 S. Spruce Street
Burlington, WA 98233
City of Mount Vernon
Post Office Box 809
Mount Vernon,WA 98273
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City of Sedro-Woolley
325 Metcalf Street
Sedro-Woolley,WA 98284
Town of La Conner
Post Office Box 400
La Conner,WA 98257
Town of Hamilton
Post Office Box 528
Hamilton, WA 98255
Town of Concrete
Post Office Box 39
Concrete,WA 98237
Town of Lyman
Post Office Box 1248
Lyman,WA 98263
13.9 Amendment. This Agreement may be amended by the mutual consent of
all of the Parties. No additions to or alterations of the terms of this Agreement shall be valid
unless made in writing, formally approved and executed by duly authorized agents of all
Parties.
13.10 No Separate Entity. It is not the intention that a separate legal entity be
established to conduct this cooperative undertaking, and no separate legal entity is established
by this Agreement.
13.11 Neutral Authorship. Each of the terms and provisions of this Agreement
have been reviewed and negotiated, and represents the combined work product of the Parties.
No presumption of other rules of construction that would interpret the provisions of this
Agreement in favor of,or against,a Party preparing the same shall be applicable in connection
with the construction or interpretation of any of the provisions of this Agreement. The Parties
each represent 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 they have fully read this Agreement,understand its meaning
and effect, and enter into this Agreement with full knowledge of its terms.
13.12 Counterparts. This Agreement may be executed in any number of
counterparts,each of whom shall be an original,but those counterparts will constitute one and
the same instrument.
Signatures on next page.
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IN WITNESS WHEREOF,the Parties have executed this Agreement as of the day and year
first written above.
BOARD OF COUNTY COMMISSIONERS
SKAGIT COUNTY, WASHINGTON
P-5?/\./ )17)7e.aev.
RON WESEN, Commissioner
a.
EN DAHLSTEDT, Commissioner
667:)...rA._ ., i
LISA JANIC , Commissioner
Recommended:
By:
Trisha Logue, Coun Administrator
Approved as to Indemn'fication:
By:
D ie L lante, Risk Manager
Approved as to Form:
By: f•f\' A- 9--Q-- - 5.31.2020
Melinda Miller, Deputy Prosecuting Attorney
Atte t:
09 —
By: h.,
Clerk of the Board
Date: (Q 19 I ZOZO
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STATE OF WASHINGTON )
) ss.
COUNTY OF SKAGIT )
I certify that I know or have satisfactory evidence that Ron Wesen,Ken Dahlstedt and Lisa Janicki
are the persons who appeared before me, and each person acknowledged that she or he signed this
instrument, on oath stated that she or he was authorized to execute the instrument and
acknowledged it as Commissioners of Skagit County,to be the free and voluntary act of such party
for the uses and purposes herein mentioned.
Dated this q day of Sure, , 2020
WILL4th,� (LA Lid-‘,A-
vi r`K"t t �•' Not Public in and fo
r the State of Washington
:" 11111700 Residing at �jkap ;t. }y
j NAty AVSL` .:
My Commission Expires: it 12q 12023
411.21 1 't 4-7
04
-a , �WAs�```���
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CITY OF ANACOR ES
LAURIE RE, Mayor
Date Wa ra /0/ 226) 20
Mailing Address:
City of Anacortes
Post Office Box 410
Anacortes, WA 98221
Appr ved as t only:
Da wetn m,Anacortes City Attorney
STATE OF WASHINGTON)
) ss.
COUNTY OF SKAGIT )
I certify that I know or have satisfactory evidence that Laurie Gere is the person who appeared
before me, and said person acknowledged that she signed this instrument, on oath stated that she
was authorized to execute the instrument and acknowledged it as the Mayor of the City of
Anacortes, to be the free and voluntary act of such party for the uses and purposes herein
mentioned.
Dated this/G " day of�`' , 2020
JOANN K STEWART ; V, _,_.1
NOTARY PUBLIC 1 T �- c L
STATE OF WASHINGTON :f -1 riC,'a it l` �Z``c,,„(� I
COMMISSION EXPIRES Notary Public in and for the State of Washington
SEPTEMBER 29, 2020 i Residing at 2,, ,7` °r2- .-
�.�����-`~ MyCommission Expires: 9-p /--- . -v
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CITY URL TO
STE XTON, Mayor
Date � ?I'74.2
Mailing Address:
City of Burlington
833 S. Spruce Street
Burlington,WA 98233
Appro d as to form onl :
Johnson,Burlington City Attorney
STATE OF WASHINGTON)
) ss.
COUNTY OF SKAGIT )
I certify that I know or have satisfactory evidence that Steve Sexton is the person who appeared
before me,and said person acknowledged that he signed this instrument,on oath stated that he was
authorized to execute the instrument and acknowledged it as the Mayor of the City of Burlington,
to be the free and voluntary act of such party for the uses and purposes herein mentioned.
Dated this I3 'day of/VI.a(t ,2020
` wtillitto. / �1
41
: '': . Notary Public in and for the State of Washington
_ ;Y No C N i Z: Residing at (�i 140(
P oz
Q•;',„
m My Commission Ex res: I i/Qq t20a_ _-_
!�M.Aso �;,
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CITY OF MOUNT VERNON
J BOUDREAU, Mayor
Date 3/2 2-o
Mailing Address:
City of Mount Vernon
Post Office Box 809
Mount Vernon, WA 98273
Approved as to form only:
Kevin Rogerson, Mount Vernon City Attorney
STATE OF WASHINGTON)
) ss.
COUNTY OF SKAGIT )
I certify that I know or have satisfactory evidence that Jill Boudreau is the person who appeared
before me, and said person acknowledged that she signed this instrument, on oath stated that she
was authorized to execute the instrument and acknowledged it as the Mayor of the City of Mount
Vernon,to be the free and voluntary act of such party for the uses and purposes herein mentioned.
Dated this V�� day of 1W/Lv t , 2020
1
_=�et,_' 5sioyF,,,/sy�,� .
• O "O T,� +,o•,, Kam►' A Cat re ck 6 k Vi n
m s Z ' Notary Public in and for the State of Washington
• c) /29?82 coo' ,
AGB LAG Residing at M.Cu 4t V eAr v'o00J A
� s:rt.23 2 My Commission Expires: S/u /2-"-
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CITY OF SEDRO-WOOLLEY
JOHNSO yor
Date 2 C
Mailing Address:
City of Sedro-Woolley
325 Metcalf Street
Sedro Woolley, WA 98284
Approved as to fowbonly:
Nikki Thompson, edro-Woolley City Attorney
STATE OF WASHINGTON)
)ss.
COUNTY OF SKAGIT )
I certify that I know or have satisfactory evidence that Julia Johnson is the person who appeared
before me, and said person acknowledged that she signed this instrument, on oath stated that she was
authorized to execute the instrument and acknowledged it as the Mayor of the City of Sedro-
Woolley,to be the free and voluntary act of such party for the uses and purposes herein mentioned.
Dated this 2 day of mom,2020
alliAlt abMiL_.
P. BR
lV4tr��S`0�Ex�RFs Notary Publ' cti�nd for the State of Washington
U N�-c z Residing at 1b Np0 C
�G p My Commission Expires: S6/2I
PVC°2°Z1 C9
STq�OF`NPG�`
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TOWN OF L ONNER
As'----- 4---
RAMON HAY S, Mayor
Date 3 . 2.(/ ' Ztgo
Mailing Address:
Town of La Conner
Post Office Box 400
La Conner, WA 98257
Approved as to f only:
._..._._.________\_
Scott omas, own of La Conner Attorney
STATE OF WASHINGTON)
) ss.
COUNTY OF SKAGIT )
I certify that I know or have satisfactory evidence that Ramon Hayes is the person who appeared
before me, and said person acknowledged that he signed this instrument, on oath stated that he
was authorized to execute the instrument and acknowledged it as the Mayor of the Town of La
Conner, to be the free and voluntary act of such party for the uses and purposes herein
mentioned.
Dated this 2L4 day of 1lc-t.1, 2020
cl\I 1 '
40: (1, 7 k _.
%% �itEP l MOORF /eo,
``ter 0�.•.•..4)• i,.�
• • Notary Public in and for the State of Washington
NOTARY pueuc • 's Residing at Ls Rill�,Ri /� `�y,-
COMM EXPIR€S : _ My Commission Expires: [Z— 2-7 —Z-c I.
DEC.27.2021 • t
•
ii 0 ��j;;c ;
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01152020.docx
25
T WN OF HAMILTON _
A' A,/��- ' --
CARL R. VANDIVER,Mayor
Date . .rgee P -o'o O-le
Mailing Address:
Town of Hamilton
548 Maple Street
Hamilton, WA 98255
STATE OF WASHINGTON)
) ss.
COUNTY OF SKAGIT )
I certify that I know or have satisfactory evidence that Carla R. Vandiver is the person who
appeared before me, and said person acknowledged that she signed this instrument, on oath stated
that she was authorized to execute the instrument and acknowledged it as the Mayor of the Town
of Hamilton, to be the free and voluntary act of such party for the uses and purposes herein
mentioned.
Dated this 425 day of aak , 2020
,,......,tt giliivi.ot C 4 ,.
• t
oil
l2aaf9 BOA Notary Public iota andfor the State oT Washington
Q; 1'1OTAib, 0 Residing at AJ d„�
�18L�ti My Commission Expires: L/- -13
NIPEy�ONES fal'�1 C
tttt7 WA,`�#41?
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T OF C C TE
JASO ILLER, Mayor
Date 1 •
Mailing Address:
Town of Concrete
Post Office Box 39
Concrete, WA 98237
STATE OF WASHINGTON)
) ss.
COUNTY OF SKAGIT )
I certify that I know or have satisfactory evidence that Jason Miller is the person who appeared
before me,and said person acknowledged that he signed this instrument,on oath stated that he was
authorized to execute the instrument and acknowledged it as the Mayor of the Town of Concrete,
to be the free and voluntary act of such party for the uses and purposes herein mentioned.
Dated this kl day of , 2020
Ada`\ REAR ` '
e2-03.?c<+. �.'� t`�, . EL Pv at
NOT m Notary Public in an. or the State of Washington
�, •�Ry ":7D_ Residing at Cu Ac kx;Pt
--A' `'e�` = My Commission Expires: k 03 I a3
'. O timber�•3••;�O?.`
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TOWN OF L M
77,,,,
EDDIE HILLS. Mayor
Date jahanAjE4,,af) , dOac)
Mailing Address:
Town of Lyman
Post Office Box 1248
Lyman. WA 98263
STATE OF WASHINGTON)
) ss.
COUNTY OF SKAGIT 1
I certify that I know or have satisfactory evidence that Eddie Hills is the person who appeared
before me, and said person acknowledged that he signed this instrument, on oath stated that he was
authorized to execute the instrument and acknowledged it as the Mayor of the Town of Lyman, to
be the free and voluntary act of such party for the uses and purposes herein mentioned.
Dated this // day off 2020
goomvik% 1C2/J494‘k 6 (36.44,)
Daor4 E l&y
.••`'""'1� I << Notary Public in and for the State of Washington
0 �� Residing at c1 n
M s�'��.�' �m p• Commission Expires: 4jl/3?/a 3
• sod.21-
to
III
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