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HomeMy WebLinkAboutord2002-014WHATCOM COUNTY COUNCIL AGENDA BILL NO. 2002 -116 CLEARANCES Initial Date Dale Received in Council office Agenda Date Asiondoesim Originator: v 2172 Intro Division Head: 2126 Finance Dept. Head Prosecutor Val Purchasing /Budget Executive. SUBJECT: Ordinance Creating Public Facilities District ATTACHMENTS: Ordinance and Memo SEPA review required? ( ) Yes ( ) NO SEPA review completed? ( ) Yes ( ) NO Should Clerk schedule a hearing 7 ( x ) Yes ( ) NO Requested Date: SUMMARYSTATEMENT: Ordinance creating Public Facilities District Distribution Indicate those who should recerve List specific names to the right Request a copy after Cmmcll action ADS Facilities Management ADS Finance Brad Bennett ADS Human Resources ADS Info Services Assessor Auditor Cooperative Extension Divided Court Executive Dewey Dester Francine Kincaid Health Hearing Examiner Jail COUNCIL ACTION TAKEN: 2002- 116 2li2I2002. Introduced 212612002: Adopted 7 -0, Ord. #2002-014 Related County Contract #: Juvenile Parks Planning Prosecutor Public Works Sheriff Superior Court Treasurer other Related File Numbers: Ordinance 11 Reso[ptio (this it be, vi SPONSORED BY: Executive Office PROPOSED BY: Executive Office INTRODUCTION DATE: 2/12/02 ORDINANCE NO. 2002 -014 CREATING AND PROVIDING FOR THE ORGANIZATION, POWERS AND GOVERNANCE OF A PUBLIC FACILITIES DISTRICT TO BE KNOWN AS THE " WHATCOM COUNTY PUBLIC FACILITIES DISTRICT" TO EXPLORE THE POSSIBLE ACQUISITION, CONSTRUCTION, OPERATION, AND /OR FINANCING OF ONE OR MORE PUBLIC FACILITY PROJECTS INCLUDING RELATED PARKING FACILITIES LOCATED WITHIN THE COUNTY; ADDING A NEW CHAPTER 1.17 TO TITLE ONE OF THE WHATCOM COUNTY CODE. WHEREAS, the Whatcom County Council (the "Council ") has determined that it is in the best interest of the County and its citizens to explore the possible acquisition, construction, operation, and financing of one or more public facility projects and related parking ( "Public Facility Project(s) ") as well as any similar project proposed by any other public facilities district located within the County to provide needed public facilities to serve local and regional business, community, family entertainment, youth, recreation and athletic organizations, to promote economic development and to further the revitalization of business, financial and commercial districts within the County; and WHEREAS, Chapter 36.100 RCW (the "County PFD Act ") authorizes the Council, as the legislative authority of a county, to create a public facilities district coextensive with the boundaries of the County for the purposes, among others, of acquiring, constructing, operating, and financing Public Facility Projects; and WHEREAS, as authorized by the County PFD Act and RCW 82.14.390, and subject to certain restrictions, a public facilities district created by a County may impose solely for Public Facility Project purposes, a 0.033 percent (0.033 of 1 %) sales and use tax that is deducted from the amount of the sales and use tax otherwise required to be collected and paid over to the Washington State Department of Revenue under Chapter 82.08 and 82.12 RCW; and WHEREAS, the Council has determined that it is in the best interest of the County and its citizens to create a public facilities district to assist in the acquisition, construction, operation, and financing of viable Public Facility Projects located within Whatcom County; NOW, THEREFORE, BE IT ORDAINED: The following new chapter is added to Title One of the Whatcom County Code: Ordinance- Public Facilities District Page 1 Chapter 1.17 Whatcom County Public Facilities District Sections: 1.17.010 Creation and Purpose 1.17.015 Corporate Powers 1.17.020 Board of Directors 1.17.030 Organizational Meeting 1.17.040 Loan of Working Capital 1.17.050 Powers, Duties and Limitations 1.17.060 Approval of Charter and Bylaws 1.17.070 Applicability of Public Laws 1.17.080 Dissolution 1.17.090 Severability 1.17.010 Creation and Purpose. Pursuant to Chapter 36.100 RCW (the "County PFD Act "), there is hereby created a public facilities district, which shall be called the Whatcom County Public Facilities District (the "District "), coextensive with the boundaries of the County, with only the powers and authority set forth in the County PFD Act as last amended by the Laws of Washington. The District is established for the purpose of pursuing ownership, financing, and operational requirements of Public Facilities Projects within the County. The Executive and other appropriate officers of the County are authorized and directed to take any and all such additional actions as may be necessary or desirable to accomplish the creation of the District. 1.17.015 Corporate Powers. The District shall be considered a municipal corporation, and an independent taxing authority within the meaning of the PFD Act. As such, it shall possess all the usual powers of a corporation for public purposes as well as all other powers that may now or hereafter be specifically conferred by statute. 1.17.020 Board of Directors. The board of directors of the District (the "Board ") shall consist of five members and be appointed consistent with the County PFD Act. All corporate powers of the District shall be exercised by or under the authority of the Board; and the business, property and affairs of the District shall be managed under the direction of the Board, except as may be otherwise provided for by law, herein or in the Charter. 1. 17.030 Organizational Meeting. The District shall be established as of the date of the appointment of the initial members of its Board. Upon such date, the Executive or designee shall call an organizational meeting of the initial Board within 10 days, giving at least three days' advance written notice to each Board Member, unless waived in writing. At such meeting, the Board shall organize itself, may appoint officers, and shall select the District's place of business. Ordinance- Public Facilities District Page 2 1.17.040 Loan of Working Capital. In order to provide the District with initial working capital for legal and formation expenses, the County may loan the District such sums as necessary from the General Fund. Any such loan shall be made pursuant to an interlocal agreement negotiated between the District and the County, and shall be repaid with interest within twelve calendar months. 1. 17.050 Powers. Duties and Limitations. The District shall have the following powers and duties, subject to the following limitations: (1) The District shall have the powers set forth in its Charter. (2) Except as specifically provided in an interlocal agreement between the District and the County, the District shall take no action that might impose liability upon the County. All liabilities incurred by the District shall be satisfied exclusively from the assets, credit, and properties of the District, and no creditor or other person shall have any right of action against or recourse to the County, its assets, credit, or services, on account of any debts, obligations, liabilities or acts or omissions of the District. (3) In the event that the District determines that one or more Public Facilities Project(s) (as defined in the County PFD Act) located within the County is a viable project that is likely to begin construction within the time limits imposed by state law, the District shall impose all or a portion of the sales tax authorized under RCW 82.14.390(1) in support of pursuing joint ownership, financing, or operational relationships with such Public Facilities Project(s). Such tax proceeds shall be apportioned between such Public Facilities Project(s) (taking into account adequate reserves to be maintained by the District) in an equitable manner that supports construction and operation of any viable Public Facilities Project(s) located in Whatcom County. (4) The District shall provide at least annually a written report to the Council detailing its final project list, and the percentage of anticipated tax proceeds flowing to each project. (5) In consideration of the County's loan of working capital to the District and to ensure that Public Facilities Projects are developed in a manner that is consistent with the County's regional planning objectives, intergovernmental relations with its incorporated cities, and available and planned infrastructure, the District shall not enter into any project in excess of $50,000 unless the County is party to the interlocal agreement. (6) The District shall prepare, maintain and provide to the Council a financial and activities report not less than annually, and otherwise as directed by the Council. (7) In consideration for the County's loan of working capital, the District shall not seek to impose any tax authorized under the County PFD Act, other than sales taxes imposed pursuant to RCW 82.14.390, without prior approval of the Council. 1.17.060 Approval of Charter and Bylaws. The Charter will be reviewed and approved by the County Council. Ordinance - Public Facilities District Page 3 The Board shall maintain rules of procedure and governance of its activities through its Bylaws. The initial Bylaws of the District shall be approved by the County Council. The power to alter, amend, or repeal the Bylaws or adopt new Bylaws shall be vested in the Board. The Bylaws shall be consistent with the County PFD Act, this county ordinance and the Charter. 1.17.070 Applicability of Public Laws. District activity shall, as required by law, comply with the Open Public Meetings Act and other provisions of state law applicable to Municipal Corporations. 1.17.080 Dissolution. The District shall dissolve in the event that the District determines that there are no viable Public Facilities Projects located within the County. After such time, if the Council finds, following a public hearing or hearings, that the continued existence of the District would no longer serve the purposes of this Ordinance, it may by ordinance and in such manner as may be required by State law order that the District be dissolved. If the District has outstanding obligations at the time of such dissolution, the ordinance dissolving the District shall be subject to the payment in full of the outstanding obligations. Upon dissolution of the District and the winding up of its affairs, title to all remaining property and assets of the District shall vest in the County unless a prior agreement calls for an alternate disposition. In any event, any remaining property or assets shall be used for public purposes. 1.17.090 Severabilitv. Section 1.17.050 is necessary to achieve the intent of the Council in creating the District. If any provision of said Section 1.17.050 is finally declared by a court of competent jurisdiction to be invalid for any reason, all provisions of the ordinance shall be deemed to be of no force or effect. The remaining provisions of this ordinance are severable." ADOPTED this 26 day of February, 2002. ATTEST: __- WHATCOM COUNTY COUNCIL _ WHAT O O N , WASHINGTON Dana Brown - Davis, Clerk of the Council L. Ward Nels , Council Chair APPROVED AS TO FORM: ( Approved( D nied Randall J. Wall , Chief Civil Deputy Prosecutor Pet ' men, County Executive Ordinance — Public Facilities District Page 4 WHATCOM COUNTY a `OM °O r� �`y Pete Kremen EXECUTIVE'S OFFICE 3,,�y�� ��< County Executive County Courthouse �W 311 Grand Avenue, Suite #108 h� �2 Bellingham, WA 98225 -4082 9SMNGj° MEMORANDUM To: L. Ward Nelson, Council Chair County Council Ufmbers From: Pete Kremen Subject: Proposed Public Facilities District Date: February 12, 2002 Supporting Whatcom Countv's Future During the past few years, hundreds of community members have been involved in Whatcom County's future through numerous planning processes. These plans have helped identify what amenities are important, what new facilities are needed, and what existing assets should be enhanced and protected. As the result of this work, we are better poised to make decisions on how best to invest in our growing community. Many of these groups recommend ways to pay for community improvements, including accessing existing tax revenue by creating a Public Facilities District (PFD). A PFD allows a portion of state sales taxes to be directed back into local communities to support just the kinds of facilities many citizens have said will make us a better place. This memo and the attached proposed ordinance describe in some detail Public Facilities Districts and my plan for forming one in Whatcom County. Creating a PFD will help us meet important needs already identified by community members. By utilizing this funding source, we move a critical step closer to realizing our goals of creating and preserving community assets. Without it, we forego a valuable opportunity. What is a Public Facilities District? A Public Facilities District, as defined by RCW 36.100, is an independent taxing district led by a five - member board. It is designed to provide a funding mechanism for counties to build and operate convention, exhibition, cultural and sports facilities. A PFD board constructing or remodeling eligible facilities is rebated .033% of the state - collected sales tax for twenty-five years to support these type of projects. This funding already is collected by the state Department of Revenue and through a PFD is returned to the local county. The community and District Board must match PFD funding at 33 percent with other public or private funds. Office (360) 676 -6717 County (360) 384 -1403 FAX (360) 676 -6775 TDD (360) 738 -4555 Memo to County Council February 12, 2002 Page 2 Other key elements include: • The County Council creates a PFD by ordinance. It appears that Bellingham is the only other government in our county that may also create a PFD. • The district may encompass the boundaries of one county, may be multiple jurisdictions or a large city. To be multi - jurisdictional the cities must be contiguous. • A PFD is a separate municipal corporation and is run by a five member board. • The PFD Board may construct, own, and operate public facility project(s) (convention, conference or "special events centers') and related parking serving a regional population. 'Public Facility Projects" and "special events centers' are not defined; however, meeting, gathering, performing arts and sports activity space seem to be eligible, as well as adjacent parking facilities. Public processes for determining the feasibility of public facility projects also are eligible expenses for this funding. • The Board can enter into contracts, buy and sell property, and issue bonds for up to 30 years. • The Board may submit for voter approval a sales tax add on of up to .2 %. • If after forming a PFD, the Board determines it is inappropriate to proceed with a public facilities project(s), those tax rebate dollars spent to make that determination would not need to be reimbursed to the state. • In most cases or existing PFDs, local governments have provided staff, bookkeeping and meeting facilities on a reimbursable basis to the PFD Boards. How could a Public Facilities District be used? A Public Facilities District for Whatcom County would generate an estimated $250,000 each year, based on year 2000 sales tax figures. We have several possible uses for the resources that are made available to a PFD. I am not recommending at this time a specific project for applying these funds. 1 am urging the County Council to act now to create a Public Facilities District, so that we may appoint a Board to begin the important work of determining how best to use this source of funding to invest in key facilities for our growing community. Why should we act now? The time left for enacting a Public Facilities District is short. Progress on construction Memo to County Council February 12, 2002 Page 3 or remodeling projects must begin prior to January 1, 2003 to be eligible for the sales tax rebate. A bill currently in the Legislature extends this deadline for one year, to January 1, 2004. However, to be eligible for this extension the District may be required to be created prior to March 1, 2002. If we act now we will meet the March 1 deadline contained in proposed legislation. If this legislation is not approved, we must make progress this year to be eligible for any sales tax rebate. Taking this critical step now leaves us with the most flexibility in either case, and allows us to begin collecting the funds as soon as possible. Where else have Public Facilities Districts been created? The Governor signed Senate Substitute Bill 5452 (RCW 35.57 — Public Facilities Districts) into law in May 1999, making available to smaller communities many of the advantages provided to Seattle and King County for building the Mariners' stadium. Communities currently using or exploring this authority include: • The City of Vancouver created a PFD to fund and manage a $70 million sports and convention center in the city's downtown. • The City of Tacoma, together with Fife, Lakewood, Tacoma and University Place, formed a multi - jurisdictional PFD to fund the creation of a new convention center in downtown Tacoma. • The City of Everett and Snohomish County each created separate PFDs and are coordinating to build a $60 million sports center. • The City of Lynnwood created a PFD in August 2001 and may use the funding to develop a hotel and convention center complex. • Other communities that have taken advantage of this funding authority or are moving in that direction include Spokane, Bothell, Oak Harbor, Edmonds and Kennewick. What are the next steps? If the Council adopts the ordinance creating a Public Facilities District, we will submit a Charter and Bylaws for operating the Public Facilities District for your review. We will also proceed to determine the method of selecting a board.