HomeMy WebLinkAboutC20130197 Interlocal Agreement SKAGIT COUNTY
Contract# C20130197
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PROVISIONAL AGREEMENT
This Provisional Agreement is entered by and between the undersigned parties("Parties")this
9 th day of May, 2013, and represents the framework of a use and financing agreement for the
construction and operation of a new Skagit County jail facility("Jail Facility"). Except as expressly
specified herein otherwise,this Provisional Agreement is subject to and contingent on negotiation and
mutual execution of a satisfactory definitive Interlocal Agreement (hereinafter"Agreement")within
ninety (90)days of the effective date of this Provisional Agreement,absent which this Provisional
Agreement will expire and have no further force or effect,except as expressly otherwise provided in
paragraphs 2 and 7 herein.
1. Nature of the Agreement. The Parties agree that the Jail Facility is necessary and in the
public interest. To that end, consistent with the terms of this Provisional Agreement,the Parties will
propose and support a 0.3%countywide sales tax measure to the voters at the August 2013 countywide
election (hereinafter the "Sales Tax Measure"),the revenue from which will be used consistent with the
Agreement to service anticipated bond debt incurred for construction and the operation of the Jail
Facility, pay initial project costs,fund a Revenue Stabilization Account(hereinafter,the"Bonds"),and
fund public safety needs of the cities that are party to this Agreement.
2. Sales Tax Measure. Skagit County will promptly submit a ballot proposition for a 0.3%
countywide sales tax. Skagit County will ensure that the ballot language allows use of revenue for the
construction, financing, maintenance and operation of jail facilities as well as police, and fire protection.
Excepting those funds remitted to Anacortes and Burlington,the funds derived from the sales tax
measure shall be used for"Criminal Justice Purposes,"as that term is defined by RCW 82.14.340. Skagit
County will pay all election expenses of the Sales Tax Measure, which will be deemed capital costs to be
recouped from bond proceeds to the extent allowed. The revenue from the countywide 0.3%sales tax,
if approved by the voters,will be paid directly to Skagit County in its entirety; in the event the state
Department of Revenue disallows such direct payment to Skagit County, the parties to this agreement
shall take reasonable and appropriate steps to provide for the timely transfer of such funds through
such means as are defined in the Agreement. Anacortes, Burlington and Mount Vernon will not submit
a ballot proposition for the 0.1%sales tax allowed pursuant to RCW 82.14.450, and/or will promptly
withdraw any resolution authorizing such a proposition. In consideration of the foregoing, Skagit County
will withdraw and rescind its April 1, 2013 letter providing 90 days' notice of termination of the parties'
existing Jail Use Agreement. In the event that the parties have not entered a definitive Agreement at
the time collection begins of the voter-approved 0.3%sales tax, except as set forth below,the
distribution of revenue shall be distributed pro rata in accordance with applicable statute.
This distribution is subject to the following specific adjustments to be incorporated in the
Agreement:
a. In the event voters approve a 0.3%countywide sales tax measure in the year 2013 (or
2014),Skagit County will remit to Burlington $220,000 in the following year(prorated
based on the actual start date of the collection of sales tax), which will increase (or
decrease) each year thereafter by the countywide percentage sales tax revenue increase
(or decrease)above (or below)the prior year.
b. In the event voters approve a 0.3%countywide sales tax measure in the year 2013 (or
2014),Sedro-Woolley will pay Skagit County an amount equal to 85%of the city's
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existing 0.1%sales tax revenue stream (2012 estimate is$101,362)toward the Jail
Facility starting in the following year(prorated based on the actual start date of the
collection of the countywide 0.3%sales tax), which amount will increase (or decrease)
each year thereafter by 50%of the countywide percentage sales tax revenue increase
(or decrease) above (or below)the prior year. Provided, however,that in no case will
the amount paid by the City to the County exceed the amount actually collected by the
City from the 85%of the 0.1%sales tax revenue. Sedro-Woolley's 0.1% revenue stream
shall continue to be collected by Sedro-Woolley, and, notwithstanding any other
provision herein, shall be payable only pursuant to the definitive Agreement.
c. In the event voters approve a 0.3%countywide sales tax measure in the year 2013 (or
2014),Skagit County will remit to Anacortes$103,000 in the following year(prorated
based on the actual start date of the collection of sales tax), which amount will increase
(or decrease) each year thereafter by the countywide percentage sales tax revenue
increase (or decrease) above (or below)the prior year.
The foregoing rights and duties of this paragraph 2 are effective immediately and constitute a
contractual commitment independent of the Agreement.
3. Finance Committee. The Agreement will establish a Finance Committee ("FC")
comprised, at minimum, of: one representative from each city that is party to the Agreement;three
representatives from Skagit County; and the Skagit County Sheriff. The FC's chairmanship will alternate
between Skagit County and a city representative on each successive calendar year. The FC will:
a. Review booking costs and establish booking fee rates;
b. Review operating costs and establish resultant bed rates for non-Party users of the Jail
Facility, including the appropriate level of capital charge;
c. Establish a formula for equitable, and,to the fullest practicable extent, equal
distribution of costs and savings associated with the Jail Facility's construction and
operation. This will be determined by analysis of numerous factors including but not
limited to:
i. Usage rates;
ii. Relative tax contribution (net of any adjustments);
iii. Relative population.
d. Determine use of the Revenue Stabilization Account(RSA) after meeting the Minimum
Funding Threshold, which will be deemed met on the later of(a)the end of the year in
which the RSA balance is equal to the maximum annual debt service on the Bonds; or(b)
the end of the third full year of operation of the Jail Facility(est. 2020). No other use of
the RSA is allowed at any time that the RSA balance is below the Minimum Funding
Threshold.
e. At least five (5)years prior to the expiry of the Agreement,the FC will discuss specific
terms and conditions under which the Agreement will be renewed or modified. Upon
failure of the FC to agree on an alternative distribution of the sales tax proceeds as
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anticipated by this Provisional Agreement and the Agreement following termination of
the bonds (or following termination of any subsequent bonds extending the term of the
original bonds), all sales tax proceeds shall be distributed in accordance with the
provisions of RCW 82.14.450 as that statute reads as of the effective date of this
Provisional Agreement.
f. The foregoing rights and duties of the FC will be subject to provisions in the definitive
Agreement reasonably protective of the County's statutory and other applicable
obligations.
4. Term of the Agreement. The term of the Agreement will be at least for the life of
Bonds to be issued by the County,which the Parties anticipate will be in the range of 25-30 years. Skagit
County will not extend the term of the Bonds without the written consent of each party to the
Agreement. The Parties anticipate that the level of capital to be raised by the Bonds will be generally
consistent with a design and plan to construct a Jail Facility with a Core Support area supportive of
approximately 400 beds.
5. Space and Usage Allocation. The Parties will allocate bed space in the Jail Facility in
alignment with the following principles:
a. No bed rate will be charged except to non-partner users unless funding shortfalls cannot
be covered by the RSA.
b. If the Jail Facility is at capacity (defined as the Jail Facility average daily population at or
above 85%for a calendar quarter of the available number of beds),the Parties will
proportionally allocate space to each Party under the Agreement in a manner that takes
into account such factors as historical facility usage and relative contribution of revenue.
Additional prisoners presented for detention at the Jail Facility in excess of that party's
allocation will incur an expense equal to 50%of the daily bed rate excluding capital
surcharge in effect at the time. The Agreement will contain additional provisions that
address conditions specific to the Jail Facility's operations and management when
operating near or above capacity, including but not limited to appropriate restrictions
on the County accepting inmates from entities not a party to this Agreement.
6. Interim Period. During the Interim Period (defined as the period prior to the opening of
the Jail Facility),the County Sheriff will retain authority and responsibility to operate the existing jail
facility consistent with the Sheriff's legal obligations and sound discretion. Provided that the Parties
negotiate in good faith toward an Agreement as set forth herein, Skagit County will not terminate the
existing Jail Use Agreement.
7. Ballot Failure. In the event the ballot measure fails at the August 2013 election, the
Parties agree and hereby authorize the Board of County Commissioners to re-submit the 0.3%sales tax
measure at the next available election, ensuring the ballot measure allow for the construction,
maintenance, and operation of jail facilities as well as police and fire protection. The cities will agree to
not submit a ballot proposition for 0.1%sales tax measure. If a secondary ballot measure fails at the
November 2013 election, Anacortes, Burlington and Mount Vernon shall have ten (10) days written
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notice,delivered to the Mayor and City Attorney of each foregoing city, prior to Skagit County re-filing
the Sales Tax Measure for a subsequent election.
8. Dispute Resolution. Any dispute arising under this Provisional Agreement will be
construed under the laws of the State of Washington with venue and jurisdiction in Snohomish County,
Washington.
CITY OF ANACORTES CITY OF BURLINGTON
c.nt
44/
IV' See attached
Dean Maxwell, Mayor Steve Sexton, Mayor
(Date 518 / /3 ) (Date )
Attest: Attest:
,..„r,a.,h
Steve Hoglund, Finance Director Crystil O. Robinson, Finance Director
Appro ed as to rm: Approved as to Form:
�r
Bradford E. F ong, City orney Scott G.Thomas, City Attorney
CITY OF ERNON CITY OF SEDRO-WOOLLEY
See attached _ -See attached
Jill Boudreau, Mayor Mike Anderson, Mayor
(Date ) (Date )
Attest: Attest:
Alicia D. Huschka, Finance Director Patsy K. Nelson, Finance Director
Approved as to Form: Approved as to Form:
Kevin Rogerson, City Attorney Eron Berg, City Attorney
SKAGIT COUNTY
(Date )
BOARD OF COUNTY COMMISSIONERS
SKAGIT COUNTY,WASHINGTON
See attached
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notice, delivered to the Mayor and City Attorney of each foregoing city, prior to Skagit County re-filing
the Sales Tax Measure for a subsequent election.
8. Dispute Resolution. Any dispute arising under this Provisional Agreement will be
construed under the laws of the State of Washington with venue and jurisdiction in Snohomish County,
Washington.
CITY OF ANACORTES CITY BURLINGTON
See attached C r
Dean Maxwell, Mayor Steve Sexto0.) Ma or
(Date ) (Date c— 7— C
Attest: Attest:
t
Steve Hoglund, Finance Director Crystil C. Robinson, Finance Director
Approved as to Form: Approved Form:
Bradford E. Furlong, City Attorney Scott G. Thomas, City Attorney
CITY OF MOUNT VERNON CITY OF SEDRO-WOOLLEY
See attached SPP atfrhPd
Jill Boudreau, Mayor Mike Anderson, Mayor
(Date ) (Date
Attest: Attest:
Alicia D. Huschka, Finance Director Patsy K. Nelson, Finance Director
Approved as to Form: Approved as to Form:
Kevin Rogerson, City Attorney Eron Berg, City Attorney
SKAGIT COUNTY
(Date
BOARD OF COUNTY COMMISSIONERS
SKAGIT COUNTY,WASHINGTON
See attached
5
notice, delivered to the Mayor and City Attorney of each foregoing city, prior to Skagit County re-filing
the Sales Tax Measure for a subsequent election.
8. Dispute Resolution. Any dispute arising under this Provisional Agreement will be
construed under the laws of the State of Washington with venue and jurisdiction in Snohomish County,
Washington.
CITY OF ANACORTES CITY OF BURLINGTON
See attached See attached
Dean Maxwell, Mayor Steve Sexton, Mayor
(Date ) (Date
Attest: Attest:
Steve Hoglund, Finance Director Crystil O. Robinson, Finance Director
Approved as to Form: Approved as to Form:
Bradford E. Furlong, City Attorney Scott G.Thomas, City Attorney
CITY OF MOUNT VERNON CITY OF SEDRO-WOOLLEY
1`� See attached
Jill Boudreau, Mayor Mike Anderson, Mayor
(Date C ) i 7 (Date
Attest: Attest:
lW ,1-- 4LV(L
Alicia D. lfuschka, Finance Director Patsy K. Nelson, Finance Director
Approved as to Form: Approved as to Form:
Kevin Rogerson, City Attorney Eron Berg, City Attorney
SKAGIT COUNTY
(Date
BOARD OF COUNTY COMMISSIONERS
SKAGIT COUNTY,WASHINGTON
See attached
6
notice,delivered to the Mayor and City Attorney of each foregoing city, prior to Skagit County re-filing
the Sales Tax Measure for a subsequent election.
8. Dispute Resolution. Any dispute arising under this Provisional Agreement will be
construed under the laws of the State of Washington with venue and jurisdiction in Snohomish County,
Washington.
CITY OF ANACORTES CITY OF BURLINGTON
See attached See attached
Dean Maxwell, Mayor Steve Sexton, Mayor
(Date } (Date _ }
Attest: Attest:
Steve Hoglund, Finance Director Crystil 0. Robinson, Finance Director
Approved as to Form: Approved as to Form:
Bradford E. Furlong, City Attorney Scott G.Thomas, City Attorney
CITY OF MOUNT VERNON ITY 0 EDRO-WOOLLEY
See attached
Jill Boudreau, Mayor Mi e Ande n, ayor
(Date } May 8, 2013
Attest: Attest:
6-1t
Alicia D. Huschka, Finance Director Patsy K. elson, Finance Director
Approved as to Form: Ap rod as to Form:
Kevin Rogerson,City Attorney Eron Berg, City Attorney
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SKAGIT COUNTY
(Date MI , ?D! ti )
BOARD OF COUNTY COMMISSIONERS
SKAGIT COUNTY,WASHINGTON Approved as to form)
Sharon D. Dillon,ll Chair Civil Deputy Prosecuting Attorney
P-p-1
Ron Wesen,Commissioner Approved as to indemnification:
0. -
Kenneth A. Dahlstedt, Commissioner isk Manager
Attest: Approved as to budget:
4ti fu, ti v „:11,41,01) (61.1,j
Clerk of the Boa Budget&Finance Director
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