HomeMy WebLinkAbout18-052 Approving an Annexation Agreement with Jefferson County Fire Protection District No. 1 dba East Jefferson Fire and Rescue and Authorizing the City Manager to Execute the Annexation AgreementResolution 18-052
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RESOLUTION NO. 18-052
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF PORT TOWNSEND,
WASHINGTON, RELATED TO FIRE SERVICES, APPROVING AN ANNEXATION
AGREEMENT WITH JEFFERSON COUNTY FIRE PROTECTION DISTRICT NO. 1
DBA EAST JEFFERSON FIRE AND RESCUE AND AUTHORIZING THE CITY
MANAGER TO EXECUTE THE ANNEXA'T'ION AGREEMENT
WHEREAS, the City of Port Townsend has contracted with Jefferson County Fire
Protection District No. 1 dba East Jefferson Fire Rescue ("District") since 2006 for joint fire
services operation, which agreement has been modified five times to address issues such as fire
prevention and plan review, cost recover, funding, and bond indebtedness; and,
WHEREAS, the City and District originally considered asking the voters to approve
annexation of the City into the District in 2011, but because of challenges related to equalization
of property tax levies, decided to postpone the vote; and,
WHEREAS, because of the desires expressed by the District to seek levy measures in the
near term, City staff believes that it is appropriate for Council to reconsider whether annexation is
in the best interests of the City at this time to avoid another joint levy process that could be a repeat
of the last joint attempt; and,
WHEREAS, because annexation automatically only provides fire protection and
emergency medical services, the City and the District would still need to agree on provisions for
Fire Marshall services such as plan review, building inspections, and arson investigation; and,
WHEREAS, Council adopted Resolution 17-054 on November 13, 2017, authorizing the
City Manager to negotiate a pre -annexation agreement with the District and Council adopted
Resolution 18-013 on March 19, 2018, authorizing the City Manager to execute a pre -annexation
memorandum of agreement; and
WHEREAS, the City Manager has worked with District staff on a pre -annexation
memorandum of agreement and on an annexation agreement;
NOW, THEREFORE, BE IT RESOLVED by the City Council for the City of Port
Townsend as follows:
1. That the City Council approves an Annexation Agreement in substantially the same
form as at Exhibit A; and
2. The City Manager is authorized to execute the Annexation Agreement; and
3. The City Manager is directed to take all necessary administrative actions consistent
with this Resolution.
Resolution 18-052
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ADOPTED by the City Council of the City of Port Townsend at a regular business
meeting thereof, held this 15th day of October, 2018.
Attest:
IJeborah S. Sfij ?I
Mayor
Approved as to Form:
Joanna San--- d- -- e--- r-- s MMC - - - Heidi im � -- -
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City Clerk City Attorney
DRAFT DATED 10/09/18
ANNEXATION AGREEMENT
by and between the City of Port Townsend and
Jefferson County Fire Protection District No. 1
(dba East Jefferson Fire Rescue)
Resolution 18-052 Exhibit A
Page 1 of 5
This Annexation Agreement ("Agreement") is entered into as of
_ ............................._1 2018,
by the City of Port Townsend ("the City") and Jefferson County Fire Protection District No. 1,
dba East Jefferson Fire Rescue ("the District"), for the purposes stated below.
RECITALS
A. The City has an Operational Service Interlocal Agreement ("2007 ILA") with the District
for fire and emergency medical service. The term of the 2007 ILA and its amendments is
from January 1, 2007 through December 31, 2027.
B. The City and the District are located within "reasonable proximity" of one another as that
term is used in chapter 52.04 RCW. The City and the District are authorized by RCW
Chapter 52.04 to cause an election to be held in order for the voters of the City and the
voters of the District to decide whether or not the City should be annexed to and become
part of the District.
C. The City and the District have entered into a Pre -Annexation Memorandum of
Agreement ("MOA"), as of , 2018, regarding the terms and conditions under which
they wish to submit an annexation proposition to the voters of the City and the District.
The MOA addresses the annexation process, the expansion of the number of members of
the Board of Fire Commissioners, and other matters. The MOA is also intended to
provide for the effective date of annexation and to serve as a guide the provision of post -
annexation fire and emergency medical services, including addressing matters relating to
interim funding for services, voter -approved capital indebtedness, facilities to be made
available by the City, various services to be provided by the District, and other related
matters involving the relationship between the City and the District following such
approval and for at least 18 months following the annexation effective date.
D. The City and the District now find that it is appropriate to incorporate the terms of the
MOA into an Interlocal Agreement pursuant to chapter 39.67 RCW to memorialize the
agreement regarding the matters covered by the MOA and to incorporate additional
agreements regarding appropriate levels of budgeting and levy funding for fire protection
and emergency services for the first five years following the annexation date.
AGREEMENT
1. Purpose and Interpretation. The purpose of this Agreement is to ensure coordination,
avoid duplication of effort, and to make the most efficient use of public funds and provide for the
orderly transition of responsibility for paying for the cost of fire protection and emergency
DRAFT DATED 10/09/18
Resolution 18-052 Exhibit A
Page 2 of 5
services to the District following annexation. In recognition of the fact that City residents will
begin paying property taxes to the District for this purpose, the City intends that its levies will
reflect reductions to offset the increase collected by the District for this purpose.
2. Terms of MOA Incorporated. The MOA is attached as Exhibit A and is incorporated
by this reference and made a part hereof. Specifically, the provisions of paragraphs through
_, addressing matters that extend beyond the pre -annexation phase, shall survive the effective
date of the annexation and shall become incorporated as terms of this Agreement.
3. Additional Finance Terms
A. Finance and Budgeting. Pursuant to RCW 52.04.081, upon annexation of the City into
the District, the statutory maximum tax levy rate for the City will be $3.60 per $1,000 of
assessed value, reduced by the levy rate imposed by the District, up to a maximum of
$1.50 per $1,000 of assessed value. In recognition of the fact that the levies by the City
and the District will be interdependent following annexation, and pursuant to the
authority in chapter 39.67 RCW the City and the District agree as follows:
(a) Interim Financing of Services.
(i) In accordance with paragraph 3.13 of the MOA, the City shall include in its annual
budget City general fund revenues to make continued payments to the District to
support the interim financing of services under the 2007 ILA, until the District
receives its first tax collections from properties located within the City. The City
currently levies for tax year 2018 the amount of $908,724 for this purpose. The
amount of $908,274 is the base amount of tax levy for fire protection purposes of this
Agreement, and shall be the amount used for calculating tax limitations set forth in
this Agreement (set forth at paragraph 3(c)). The amount does not include future
increases in levy rates available to the City from annual increases or new
construction.
(b) District Obligations. The District agrees that it will levy property taxes annually,
within applicable statutory and constitutional rate and amount limitations, in amounts
sufficient, together with any other available funds, to provide for the levels of service
described in the MOA.
(c) Future Annual City Tax Levies Limited. The City's annual regular property tax
levy shall be sufficient, together with any other available funds, to provide for the
payment to the District of the amounts needed in 2019 to support interim services
pursuant to paragraph (a), above. For levies collected in future years, over the
succeeding four years, the City agrees that:
(i) For the levy to be collected in 2020, the City will reduce its regular general
fund levy by $908,724that was previously dedicated to fire protection
services.
DRAFT DATED 10/09/18 Resolution 18-052 Exhibit A
Page 3 of 5
(ii) Solely for the purpose of funding any of the following purposes:
a) local roads (non-federal aid, and so long as consistent with the adopted
functional plan for transportation),
b) contributions to the City's housing trust fund,
c) capital needs for parks and trails (so long as consistent with adopted
functional plan for parks and trails), and
d) utility tax relief (for the purpose of refunding to ratepayers amounts
levied by Ordinance 3143 adopted December 15, 2015 that increased
the utility tax from 20% to 22% for three years),
the City may restore to the general fund levy in each of the next three years
(2021, 2022 and 2023) up to 1/3 of the levy amount formerly dedicated to fire
protection services in 2018, namely, 1/3 of $908,274 in each of the next three
years (2021, 2022, 2023).
(iii) If the City's regular property tax levy amount exceeds the amounts described
above, the portion in excess will be paid to the Fire District for capital
purposes only within the City limits.
4. Obligations Contingent. The obligations of the parties under this Agreement are
expressly contingent on voter approval of annexation. Except as otherwise expressly set forth in
this Agreement, if the annexation ballot proposition is not submitted to the voters, or in the event
that the proposition is submitted and does not receive the favorable vote in both the District and
the City that is required for annexation, this Agreement shall be of no effect and the parties shall
have no obligations under it. In that event the 2007 ILA will continue in effect in accordance
with its terms.
5. Effective Date; Term of Agreement; Termination. If the annexation is approved by
the requisite majorities of the voters of both the City and the District, this Agreement shall go
into effect on the effective date of the annexation and shall continue in effect until December 31,
2023, unless earlier terminated in accordance with this Section 5. This agreement may be
terminated by either party upon the provision of [one hundred and eighty (180) calendar days']
notice. A final reconciliation of costs, payment, and a current report of completed activities by
each party shall be completed within such period following the notice by either party. If the City
provides notice of termination of this Agreement at any time prior to January 1, 2022, it shall
nevertheless be bound by the provisions of Section 3.A (c)(iii) above.
6. Miscellaneous Provisions,
A. Availability of Records. The City and the District agree to cooperate with each other in
making available public records in the City's or the District's possession and control
regarding the fire and emergency medical services operations.
DRAFT DATED 10/09/18
Resolution 18-052 Exhibit A
Page 4 of 5
B. Costs. Subject to paragraph 1.0 of the MOA, each party agrees to bear and pay its own
expenses in connection with the negotiations and implementation of this Agreement,
including, but not limited to, its attorneys' fees and consultant fees.
C. Termination of 2007 ILA. Upon the effective date of the annexation of the City into the
District, the 2007 ILA shall be automatically terminated and of no further effect.
D. Notices. Any notices to be given under this MOA shall be delivered in person or mailed
to the parties at the following addresses:
To the City:
City Manager
City of Port Townsend
250 Madison Street, Suite 2
Port Townsend, WA 98368
To the District:
Chief
East Jefferson Fire Rescue
24 Seton Rd.
Port Townsend, WA 98368
E. Entire Agreement. This Agreement (including the MOA attached as Exhibit A and
incorporated by this reference) constitutes the entire agreement between the parties
regarding the subject matter hereof and may be modified only by written instrument
signed by all parties.
F. Severability. In the event that any section, sentence, clause, or paragraph of this
Agreement is held to be invalid by any court of competent jurisdiction, the remainder of
this Agreement shall not be affected and shall remain in full force and effect.
G. Dispute Resolution. In the event that either party deems it necessary to institute legal
action or proceedings to enforce any right or obligation under this agreement, the parties
agree that such actions shall be initiated in the Superior court of the State of Washington,
in and for Jefferson County or as provided for in RCW 36.01.050. The prevailing party in
any such litigation shall be entitled to recover its costs, including reasonable attorney's
fees, in addition to any other award.
H. Third Party Rights. Anything to the contrary notwithstanding, nothing contained in this
Agreement shall be interpreted to create third party rights in any person or entity not a
party hereto. Notwithstanding the foregoing, in accordance with RCW 39.67.010, the
governing body of every taxing district that could have its tax levy adversely affected by
such a contract (i.e., �) shall be notified about the contract.
Effective Date. This agreement shall become effective on the effective date of the
annexation and shall remain in effect until termination in accordance with Section
DRAFT DATED 10/09/18
Resolution 18-052 Exhibit A
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IN WITNESS WHEREOF, the parties have executed this agreement on the date first written
above.
CITY OF PORT TOWNSEND
Mayor Deborah Stinson
ATTEST/AUTHENTICATED:
Joanna Sanders, City Clerk
APPROVED AS TO FORM:
JEFFERSON COUNTY FIRE
PROTECTION DISTRICT No. 1
(d/b/a EAST JEFFERSON FIRE RESCUE)
Commissioner Rich Stapf, Jr.
ATTEST/AUTHENTICATED:
Terri Ysseldyke-All, District Secretary
APPROVED AS TO FORM:
City Attorney Brian Snure, Attorney