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Interlocal Agreement for Transportation Benefit District (TBD) Fee Collection

Topic Summary

Jefferson County, acting through its Transportation Benefit District (TBD) Board, approved a $20 annual vehicle registration renewal fee on January 13, 2025. This contract authorizes the Washington State Department of Licensing (DOL) to collect this fee on the county's behalf. The agreement outlines the responsibilities of both parties, confirming DOL will retain one percent of the collected fees for its administrative costs.

Key Points

  • The TBD fee is a $20 vehicle registration renewal fee, approved by the Jefferson County TBD Board on January 13, 2025.
  • The DOL will administer and collect the TBD fee at the time of registration renewal.
  • The contract term begins on July 13, 2025, and extends through the life of the TBD, with an optional extension of up to five additional years.
  • Fee collection may not begin sooner than six months from the date the ordinance/resolution creating the fee was signed.
  • Changes in the fee amount require at least 120 days' notification to the DOL Contract Manager after the governing ordinance/resolution is dated and signed.
  • DOL will use data from the DOL File (GIS data provided by a third party) as the primary source for identifying TBD area vehicles.
  • DOL will automatically deduct 1% of the $20 fee collected per transaction to cover Administrative and Collection Expenses.
  • DOL will distribute the proceeds to the TBD, via the state treasurer, on a monthly basis.
  • TBD Responsibilities: Serve as the primary contact for citizen inquiries/disputes about the fee or boundaries; process and issue any refunds or shortages; and verify the TBD boundary information against the GIS system.
  • DOL Responsibilities: Will not be responsible for refunds related to boundary disputes or recovering lost revenue due to boundary data errors; will not issue replacement renewal notices; and will direct customer inquiries about the fee imposed by the TBD to the TBD contact information.

Financials

  • TBD Fee amount: $20.00 per vehicle registration renewal.
  • Contractor (DOL) amount: 1% of each $20.00 fee collected, deducted by DOL for Administrative and Collection Expenses.
  • Fiscal Impact to General Fund for approving the contract: None specified.
  • The contract has expenditure/revenue amounts listed as "N/A" on the Contract Review Form.

Alternatives

None specified.

Community Input

None present.

Timeline

  • 2025-01-13: Jefferson County Transportation Benefit District Board approved the $20 vehicle registration fee.
  • 2025-07-13: Contract Start Date (initial Period of Performance begins).
  • 2030-07-12: Contract End Date (initial Period of Performance ends).

Next Steps

Approve the attached contract with DOL.

Sources

  • Mark McCauley - County Administrator
  • Heidi Eisenhour - Chair – Jefferson County TBD (Signing Authority)
  • Brad DeVol - DOL Contract Manager
  • Evelyne Lloyd - Assistant Director, Administrative Services Division (DOL)
  • Melissa Pleimann - Civil Deputy Prosecuting Attorney
  • RCW 36 73.065, RCW 39.34, RCW 46.17, RCW 82.80.140, WAC 308-10, RCW 43.17.425, RCW 39.34.030, RCW 39.34.040, RCW 59.18.030(16)

Agreement for Coordinated Water System Plan (CWSP) Update

Topic Summary

The Department of Community Development (DCD) requests approval of a Professional Services Agreement (PSA) with HDR Engineering, Inc. for $207,000 to update the Jefferson County Coordinated Water System Plan (CWSP). The CWSP, last updated in 1997, must be revised to incorporate new state water law, including elements related to climate resilience planning and guidance for Group B water systems, which will be funded through grants and contributions from major water utility members.

Key Points

  • The CWSP update is required to incorporate new water law and implement best practices, targeting a minimum 20-year planning horizon (and considering a 50-year horizon).
  • The scope is organized into three funding-related tasks: CWSP Required Elements, Climate Resilience Planning, and Other Non-Required Elements (e.g., Group B guidance).
  • HDR Engineering, Inc. was the sole firm responding to the Request for Proposals (RFP), after it was republished and distributed to over 400 consultants.
  • The project is expected to run for 18 months, from January 31, 2025, through December 31, 2026.
  • The updated CWSP will likely be incorporated into the Jefferson County Comprehensive Plan Capital Facilities Element by December 31, 2025 (periodic update) or December 31, 2026 (comprehensive plan update cycle).
  • Water Utility Coordinating Committee (WUCC): The County established a new WUCC via Resolution No. 08-24. Commissioner Brotherton serves as the Chair, and PUD General Manager Kevin Streett is Vice Chair.
  • The contractor (HDR) is required to present a "White Paper" outlining climate change issues (supply, quality, data) by June 2025, as required by an Interagency Agreement with the Department of Commerce (contract # 24-63610-127).
  • Optional elements (Climate Element and Group B system guidance) were reorganized by HDR to reflect the full cost, which potentially qualifies them for grant funding since required CWSP content is generally not grant eligible, per the Department of Health.
  • The project manager is Jeff Hansen from HDR.

Financials

  • Total project cost: $207,000.
  • Funding sources:
    • County Climate Planning Grant: $125,000.
    • Remaining cost ($82,000) funded by largest WUCC members: Jefferson PUD (30% of Group A connections) and City of Port Townsend (40% of Group A connections).
  • Cost Breakdown (Total $207,000):
    • Task 1 (CWSP Required Elements): $76,974
    • Task 2 (Climate Resilience Planning): $74,684
    • Task 3 (Other Non-Required Elements): $55,342
  • The Board must approve budget authority during the 1st Quarter Budget Supplemental.

Alternatives

  • The initial RFP received no proposals by the September 26, 2024 deadline, necessitating republishing the RFP.
  • HDR was the only responding firm to the revised RFP.

Community Input

  • The WUCC structure requires one member representing a Group B water utility (systems serving 3-14 connections and less than 25 people per day or for fewer than 60 days per year).

Timeline

  • 1997: Last update of the Jefferson County CWSP.
  • 2024-08-27: RFP first published on county website.
  • 2024-09-26: Initial RFP deadline (no proposals received).
  • 2024-10-03: RFP updated and republished.
  • 2024-11-07: Proposal closing date.
  • 2024-12-03: Reconstituted WUCC's first public meeting.
  • 2025-01-31: Agreement commenced (start date of the PSA with HDR).
  • 2025-06: CWSP White Paper deadline (required by the Department of Commerce).
  • 2026-12-31: Project Estimated Completion (tentative, tied to Comprehensive Plan update cycle).

Next Steps

Approve the contract with HDR Consultants, and commit to approving the budget authority during the 1st Quarter Budget Supplemental.

Sources

  • Brent A. Butler, AICP - Chief Strategy Officer (CSO)
  • Mark McCauley - County Administrator
  • Kevin Streett - PUD General Manager (WUCC Vice Chair)
  • Commissioner Brotherton - WUCC Chair
  • Washington Administrative Code (WAC) 246-293-150, WAC 248-56, WAC 248-57
  • RCW 36.70A.130 (5) (b)
  • Resolution No. 08-24 (establishing WUCC)
  • HDR Engineering, Inc.
  • Washington State Department of Health (DOH)
  • Department of Commerce Growth Management Services (Contract # 24-63610-127)

Agreement for Special Sex Offender Disposition Alternative (SSODA) Treatment

Topic Summary

The Juvenile Court Administrator requests approval of a Personal Service Agreement with Jake Leeper, LCSW, a Montana state provider, to furnish Special Sex Offender Disposition Alternative (SSODA) treatment services for a youth under Inter-state Disposition through Juvenile Service/Superior Court. The contract amount is not to exceed $12,000 and will be funded by the County's Criminal Justice Services (CJS) Block Grant.

Key Points

  • The agreement is specifically for providing SSODA treatment and services required for juvenile sex offenders.
  • The services are intended for a youth under Inter-state Disposition.
  • The contractor, Jake Leeper, LCSW, is a Montana state provider who has been vetted and has the necessary experience.
  • Treatment will incorporate the Pathways curriculum and be designed using Cognitive Behavioral Treatment.
  • Treatment topics include offense clarification, boundaries, consent, triggers, victim empathy/restoration, and relapse prevention.
  • The contractor must keep records and case notes, provide culturally appropriate services, and share pertinent information (progress, status, concerns, compliance) with the Juvenile Services Case Manager/Juvenile Court Administrator (JCA).
  • The contractor measures ongoing risk to the community and will testify in court as required.
  • The contractor is considered a Sole Source provider for this service.

Financials

  • Contract Amount: Not to Exceed $12,000.00.
  • Funding Source: CJS Block Grant funds ($12,000 is included in the 2025 budget, with CJS Block Grant funding up to $16,415.00 available).
  • Payment rates: $160 for each individual session and $80 for each group session.
  • Frequency of sessions: For the first 6 months, one individual and one group session weekly may be provided. After 6 months, either a group or individual session may be provided weekly.

Alternatives

  • State "N/A."

Community Input

None specified.

Timeline

  • 2025-03-01: Agreement commencement date.
  • 2026-10-30: Agreement end date.
  • Month 12: A review of the treatment plan and progress will be made by the contractor, and a determination of further treatment need based on risk will be updated.

Next Steps

The Board is recommended to approve the agreement and sign 3 originals.

Sources

  • Shannon Burns - Juvenile Court Administrator
  • Jake Leeper, LCSW - Contractor (Montana state provider)
  • Mark McCauley - County Administrator
  • Philip C. Hunsucker - Chief Civil Deputy Prosecuting Attorney

Construction Contract: Olympic Discovery Trail – Anderson Lake Connection Project

Topic Summary

The Public Works Department recommends executing a construction contract with Seton Construction Inc. for the Olympic Discovery Trail – Anderson Lake Connection Project (approximately 3.15 miles long), which connects the Larry Scott Trail to Anderson Lake State Park. The bid amount is $3,782,268.93, funded entirely by two state and federal grants.

Key Points

  • The project location is between the south end of the Larry Scott Trail and the northern boundary of Anderson Lake State Park.
  • The trail generally consists of a 10-foot wide paved (hot mixed asphalt pavement, HMA) trail with a 2-foot gravel shoulder on either side.
  • Construction work includes earthwork, HMA surfacing, culvert installation, drainage system, fencing, signal/illumination, signing, striping, traffic control, erosion control, wetland mitigation plantings, and an equestrian trail.
  • Seton Construction Inc. was the successful bidder via the Competitive Sealed Bid process.

Financials

  • Bid Amount/Contract Total: $3,782,268.93.
  • Funding Sources (100% grant funded):
    • WA State Recreation and Conservation Office (RCO) WA Wildlife and Recreation Program-Trails: $2,733,057.70
    • FHWA Surface Transportation Block Grant (STBG): $1,049,211.23

Alternatives

None specified.

Community Input

None specified.

Timeline

  • 2025: Construction is planned for this year.
  • The contract was executed by the contractor on March 11, 2025.
  • The work must begin not later than one day after a Notice to Proceed is issued by the County.

Next Steps

Public Works recommends the Board execute two original copies of the Contract with Seton Construction Inc.

Sources

  • Monte Reinders, P.E. - Public Works Director/County Engineer
  • John Fleming, P.E. - Project Manager
  • Seton Construction Inc. - Contractor
  • WA State Recreation and Conservation Office (RCO)
  • FHWA Surface Transportation Block Grant (STBG)
  • WSDOT Standard Specifications for Road, Bridge and Municipal Construction, 2024 edition
  • Seton Construction Inc. elected to provide a Retainage Bond in accordance with RCW 60.28.011 instead of retained percentage.

Change Order No. 7: Water Reclamation Plant for the Port Hadlock UGA

Topic Summary

The Public Works Department requests authorization for Change Order No. 7 with Interwest Construction for the Water Reclamation Plant Phase 2 project in the Port Hadlock UGA. This change order increases the contract total by $166,116.54 to modify paving and drainage for ADA compliance, add electrical infrastructure for HVAC, and provide properly matched voltage heaters.

Key Points

  • Change Order No. 7 modifies the original contract plan in three ways:
    1. Adding HMA, catch basins, and redesigning the sidewalk to meet ADA drainage requirements (per COP 27R1).
    2. Adding a 208V panelboard to accommodate HVAC equipment (per OCR 7).
    3. Providing heaters that match the voltage in the electrical design (per COP 29.2).
  • The contract is with Interwest Construction of Burlington, Washington.
  • The change order was ordered by the County Engineer under Article 9 and 11 of the General and Supplemental Conditions.

Financials

  • Estimated Net Change (Increase) for Change Order No. 7 (including 9.1% sales tax): $166,116.54.
  • Original Contract Amount (incl. tax): $10,020,835.00.
  • Current Contract Amount (incl. tax, before this CO): $10,310,894.48.
  • Estimated Contract Total After Change (incl. tax): $10,477,011.02.
  • The project is 100% funded by the Department of Commerce.

Detailed Cost Breakdown (Change Order No. 7 Subtotal $152,260.81): - Paving and drainage revisions (COP 27R1, LS): $126,467.02 - Electrical changes for HVAC panelboard (OCR 7, LS): $21,792.80 - Electrical unit heater changes (COP 29.2, LS): $4,000.99 - 9.1% Sales Tax: $13,855.73 - Estimated Net Change Total: $166,116.54

Alternatives

None specified.

Community Input

None specified.

Timeline

  • The Change Order was recommended for approval by the Project Manager on March 10, 2025.
  • The Change Order was endorsed by Interwest Construction on March 12, 2025.

Next Steps

Public Works recommends the Board authorize Change Order No. 7 and return two original copies to Public Works for further processing.

Sources

  • Monte Reinders, P.E. - Public Works Director/County Engineer
  • Samantha Harper, P.E. - Project Manager
  • Interwest Construction of Burlington, WA - Contractor
  • Commerce Project No. 22-96515-026 (Funding Source)

Amendments to Jefferson County Code Regarding Short Term Rentals (STRs)

Topic Summary

The Board of County Commissioners (BoCC) is holding a public hearing to consider amendments to Jefferson County Code (JCC) Title 17 and Title 18 concerning Short-Term Rentals (STRs, defined as rentals for less than 30 days). These amendments seek to lift the current moratorium (Ordinance 03-0610-24, expiring April 7, 2025) and establish new regulations focused on addressing housing shortages by implementing zoning changes, capacity limits (a cap), and clarification on permitting requirements, legal nonconforming uses, and enforcement.

Key Points

  • The BoCC originally adopted a moratorium on STR applications on June 10, 2024 (Ordinance 03-0610-24). The moratorium expires on April 7, 2025.
  • The amendments are intended to implement the Comprehensive Plan Housing Element's Action Plan, which directs the County to evaluate STRs to ensure they "do not further restrict the housing supply for year-round residents."
  • Capacity Cap: Both the Planning Commission (PC) and DCD staff recommend capping the number of STRs in unincorporated Jefferson County at 4% of the total housing units outside of Master Planned Resorts (MPR), based on Office of Financial Management (OFM) data.
  • Based on OFM data, there are 11,694 dwellings outside of MPRs, equating to a current limit of 468 STRs allowed.
  • The cap will be reduced by the number of pre-existing, legal non-conforming STRs.
  • Zoning and Review (PC/Staff Recommendation):
    • STRs with 5 or fewer guest rooms and 10 or fewer occupants are classified as "Residential Uses" and require a Type I permit (administrative decision).
    • STRs with more than 5 guest rooms and more than 10 occupants are classified under "Commercial Uses" and require a Conditional Discretionary Use Permit (C(d) or Type II decision).
  • Primary Residential Requirements (PC vs. Staff):
    • PC Recommendation: Rentals are permissible only if the landowner is a Jefferson County resident AND the landowner or a qualified representative is in Jefferson County during the entire rental period. Permits for non-primary residences are valid only for three years.
    • DCD Staff Recommendation: Remove the Jefferson County residency requirement.
  • Legal Non-conforming ("Grandfathered") Uses:
    • Legal non-conforming STRs are excluded from the cap but must still meet life safety, state law (RCW 64.37), and licensing requirements.
    • DCD staff requires non-conforming operators to satisfy all permit requirements and obtain a hospitality permit within 90 days of the ordinance adoption date.
    • Proof of payment for applicable sales and lodging taxes prior to January 16, 2001 (when JCC 18.20.210 was adopted) is required to establish non-conforming status.
  • New STR Operator Limits (DCD Staff): A short-term rental operator shall not hold more than one hospitality permit for an STR in unincorporated Jefferson County, requiring a declaration on the application form.
  • Physical Requirements (DCD Staff): Require all parking spaces to be located onsite and limit signage to a single identification placard not exceeding four square feet.
  • Regulatory Compliance: All STRs must comply with state laws, explicitly listing Chapter 64.37 RCW (Short-Term Rentals) and must register with the Washington Department of Revenue.
  • Master Planned Resorts (MPR): STRs within MPRs are excepted from the 4% cap.
  • The Planning Commission held a public hearing on February 5, 2025, and deliberated on February 19, 2025, providing a recommended ordinance on February 25, 2025.

Financials

  • The General Fund supports the planning process.
  • No significant fiscal impact is expected from holding the public hearing, other than the newspaper fee.

Alternatives

  • The Board may choose to adopt the PC-recommended ordinance or the DCD Staff-recommended ordinance (or a hybrid version). The key differences relate to the residency requirement, the grandfathering grace period, and the cap calculation/distribution.
  • The PC recommendation specifies distribution of the cap across the county's zip codes based on housing stock proportion. The staff recommendation addresses this by stating STRs "shall be distributed prepositional based on the housing stock in each zip code."

Community Input

  • The County held three public meetings regarding STRs in March 2024 (Cape George, Tri Area, and Quilcene).
  • The Planning Commission held a public hearing on February 5, 2025.
  • The BoCC is holding its own public hearing on March 17, 2025, to allow for public comment directly before deliberation/action.
  • The PC Chair invited three Planning Commissioners to represent the PC regarding its recommendation during the March 17 hearing.

Timeline

  • 2024-06-10: Ordinance 03-0610-24 (moratorium) adopted.
  • 2024-07-17: County staff presented meeting findings to the Planning Commission.
  • 2024-12-04: Staff obtained clarification on preliminary proposal from Planning Commission.
  • 2025-01-16: Effective date of the original Unified Development Code in JCC 18.20.210.
  • 2025-02-05: Planning Commission held public hearing on STR proposals.
  • 2025-02-19: Planning Commission deliberation and recommendation.
  • 2025-03-03: BoCC held workshop on PC recommendations and approved notice for the hearing.
  • 2025-03-17: BoCC Public Hearing (10:30 AM).
  • 2025-03-21 (Proposed): Deadline for written testimony (if extended by BoCC).
  • 2025-03-24: Staff has arranged deliberation time on the BoCC agenda (2:00 PM).
  • 2025-04-07: Moratorium expiration date.

Next Steps

The Board is recommended to conduct the public hearing, deliberate, and potentially take action. The Board may extend the public hearing until March 24, 2025, and may close written testimony on March 21, 2025.

Sources

  • Josh D. Peters, AICP - Community Development Director
  • Brent A. Butler, AICP - Chief Strategy Officer
  • Greg Ballard - Development Code Administrator
  • Richard Hull, PhD - Chairman, Jefferson County Planning Commission
  • RCW 64.37 - Short-Term Rentals
  • RCW 36.32.120(7)
  • RCW 82.14.530 (House Bill 1590, chapter 222, Laws of 2020)
  • Resolution No. 35-17 (2017 Housing Emergency Declaration)
  • Ordinance 03-0610-24 (Moratorium)
  • Washington Public Records Act, Chapter 42.56 RCW
  • JCC Title 17, Title 18, Title 19

Washington State Department of Natural Resources (DNR) Fourth Quarter County Income Report

Topic Summary

DNR representatives, including the Olympic Region Manager, are scheduled to brief the Commissioners on the 2024 Fourth Quarter County Income Report, detailing revenue generated from state forestlands (timber and non-timber sources) and the estimated remaining value of timber sales under contract in Jefferson County.

Key Points

  • DNR manages over 600,000 acres of state forestlands in Washington, which generate revenue distributed to counties and local services.
  • Jefferson County has a total of 14,722 acres of state forestlands (14,706 acres of State Forest Transfer Lands and 16 acres of State Forest Purchase Lands).
  • State Forest Transfer Lands revenue distribution is governed by RCW 79.64.110.
  • State Forest Purchase Lands revenue allocation: 26.5% to the county, 50% to DNR for management, 23.5% to the State General Fund.
  • Revenue Distributed (Q4 2024): $385,582.45
  • Revenue Accrued (CY 2024): $950,542.00
  • Net Value of Timber Under Contract (As of 2024-12-31): $24,352.76
  • 2024 Annual Revenue Total: $1,055,740 (with $941,555 attributed to timber and $111,671 to non-timber).
  • Timber sale revenue projections for 2024 were $2,346,637 wired to the County, with a total estimated volume of 24,049 units from six sales.
  • Projected 2025 Revenue: Estimated $207,000 to be wired to the County from two lump sum sales projected to be sold in FY 2025 (AC Alder).

Financials

  • Q4 2024 Revenue Distributed: $385,582.45
  • CY 2024 Revenue Accrued: $950,542.00
  • Net Value of Timber Under Contract (as of 12/31/2024): $24,352.76
  • Total 2024 Revenue (All sources): $1,055,740 ($941,555 from Timber, $114,185 from Non-Timber sources including Commercial Sites, ROR/WRP, and EA/ES).

Alternatives

None specified.

Community Input

None specified.

Timeline

  • 2024-10-01 to 2024-12-31: Period covered by the 4th Quarterly Income Report.
  • 2025: DNR representatives are scheduled to discuss sales projected to be sold in fiscal year 2025 (e.g., AC Alder sale).
  • 2025-10-31: Contract End Date for Mt Jupiter Access timber sale (#100658) and Center 21 Thinning sale (#100662).
  • 2026-10-31: Contract End Date for Maladjusted timber sale (#C3000106773).

Next Steps

No action required; this is an information update.

Sources

  • Bill Wells - DNR Olympic Region Manager
  • Drew Rosanbalm - DNR Assistant Region Manager-State Lands
  • Jeff Chapman - Jefferson County Assessor
  • Stacie Prada - Jefferson County Treasurer
  • RCW 79.64.110 (Revenue distribution for State Forest Transfer Lands)

Workshop: 2026 Congressionally Directed Spending Requests

Topic Summary

The County Administrator initiated a workshop to discuss and decide on which local projects should be submitted for 2026 Congressionally Directed Spending (CDS) Requests. This funding is available on a one-time basis from members of the Congressional delegation (Senators Murray and Cantwell, and Representative Randall).

Key Points

  • CDS requests are for one-time funding of projects prioritized by local governments.
  • Requests must be submitted to Senator Murray, Senator Cantwell, and Representative Randall.
  • Submission deadlines are forthcoming, with Senator Murray's deadline being the most immediate.

Financials

  • Fiscal Impact to General Fund for conducting the workshop: None specified.
  • The outcome of the workshop involves seeking external one-time funding.

Alternatives

None specified.

Community Input

None specified.

Timeline

  • 2025-04-01: Senator Murray's submission deadline (5:00 pm, Tuesday).
  • 2025-04-06: Senator Cantwell's submission deadline (11:59 pm, Sunday).
  • Representative Randall's deadline: Two weeks prior to the relevant sub-committee's deadline (dates not yet determined).

Next Steps

Conduct the workshop and make a decision on which projects/programs Jefferson County should submit.

Sources

  • Mark McCauley - County Administrator
  • Senator Murray
  • Senator Cantwell
  • Representative Randall

Workshop: 2026 Local Celebrations of 250th Anniversary of the United States

Topic Summary

Commissioner Dudley-Nollette initiated a workshop to discuss Jefferson County's potential participation in planning local celebrations for the 250th anniversary of the signing of the Declaration of Independence on July 4, 2026, through a national planning effort called "America250." Discussions will focus on leading or participating in the planning process and engaging local tribes.

Key Points

  • The event marks the 250th anniversary (semiquincentennial) of the signing of the Declaration of Independence (July 4, 2026).
  • The effort is coordinated nationally by "America250."
  • Jefferson County Commissioners, the City of Port Townsend, local historical museums, and other local entities have been asked to consider participation.
  • There is interest in coordinating local efforts and engaging in formal government-to-government outreach with local tribes to discuss their potential involvement.

Financials

  • No current proposals to use county funds to support this opportunity.
  • Future funding proposals would be addressed separately.

Alternatives

None specified.

Community Input

None specified.

Timeline

  • 2025-02-26: Commissioner Dudley-Nollette met with an America250 representative.
  • 2026-07-04: 250th anniversary date.

Next Steps

Discuss ways to engage in and/or lead this planning process.

Sources

  • Heather Dudley-Nollette - County Commissioner
  • America250 (national planning effort)
  • Mark McCauley - County Administrator
  • City of Port Townsend
  • Local historical museums
  • Local tribes

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