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Grant agreement with the Port of Chehalis to accept funding from the Distressed Counties Fund BEFORE THE BOARD OF COUNTY COMMISSIONERS LEWIS COUNTY, WASHINGTON A RESOLUTION APPROVING A GRANT ) AGREEMENT BETWEEN LEWIS COUNTY AND THE PORT OF CHEHALIS TO ) Resolution No. 1 — 1 0 ACCEPT FUNDING FROM RCW 82 14 370 ) "DISTRESSED COUNTIES FUND"FOR ) PUBLIC FACILITIES SERVING ) ECONOMIC DEVELOPMENT ) WHEREAS,by Resolution the Lewis County Board of County Commissioners approve funding in the amount of$800,000 for the"Rail Transload and Grain Facility" a project to serve future demand, a project that meets the definition of a"public facility" under RCW 82 14 370, and WHEREAS, the Comprehensive Economic Development Strategy(CEDS) is a list of projects maintained by the Lewis County Economic Development Council (EDC) RCW 82 14 370, and WHEREAS, the Port of Chehalis application for funding of the "Rail Transload and Grain Facility"project has been recommended for approval and listing in the CEDS by the Distressed Counties/Rural Economic Development Public Facilities Advisory Committee, the Committee created to recommend projects for listing in the CEDS, and WHEREAS, the Port of Chehalis application is also supported by the attached Grant Agreement prepared by the EDC pursuant to the CEDS, which Agreement is incorporated herein by reference, and WHEREAS, it is in the best interest of the citizens of Lewis County that the funds requested by CEDS be authonzed in order to allow completion of the"Rail Transload and Grain Facility" a project that supports economic development in our community; NOW THEREFORE BE IT RESOLVED by the Board of County Commissioners (1) approving the"Rail Transload and Grain Facility" project as a public facility for purposes of RCW 82 14 370 and amending the Community Economic Development Strategies (CEDS) list to include that project in the county's overall economic development plan, and (2) authorizing Lewis County to enter into the attached Grant Agreement with the Port of Chehalis, for the"Rail Transload and Grain Facility" project, in the amount of$800,000, using monies from the "Distressed Counties Fund", all in accordance with RCW 82 14 370 and applicable law DONE IN OPEN SESSION this APPROVED AS TO FORM BOARD OF COUNTY COMMISSIONERS J. athan L. Meyer LEW _ . OUNTY, WASHIN ON 'ro. u i ng Attorney \ , / / ,a_____ v Robe 'C Jackson, Chair ATTEST � G Stam er, Vice Chair Rieva Lester, GMG Edna J Funmmis Clerk of the Board ••••••.•• • ScOUN I •. 4, i1,0� 5 \ .,• q / i • / SINCE z:®. 'B 1845 * • �`'yao / • .• :•• GRANT AGREEMENT BETWEEN LEWIS COUNTY AND THE PORT OF CHEHALIS This Grant Agreement is made and entered into by Lewis County and the as to the conditions for acceptance of monies by the Port of Chehalis from the "Distressed Counties Fund"pursuant to RCW 82 14 370 I. PURPOSE RCW 82 14 370 authorizes the availability of a sales and use tax to be used to finance public facilities serving economic development purposes in rural counties The name of this project shall be"Rail Transload and Grain Facility"and shall be funded in the amount of a grant for$800,000 00 II ELIGIBILITY The public facility must be listed as an item in the officially adopted Lewis County Comprehensive Economic Development Strategy and must meet other requirements as set forth by County resolution, adopted policy, and growth management planning Monies collected shall only be used to finance public facilities serving economic development purposes in rural counties III APPLICANT'S RESPONSIBILITIES Upon approval of application by the Lewis County Commissioners, applicant agrees that 1 The project must be in progress within 6 months of the date of this agreement, or grant funds shall revert back to the Lewis County"Distressed Counties Fund" For purposes of being"in progress", the project must have proceeded beyond the initial planning stage, and into the implementation stages of the project The Port of Chehalis shall promptly notify Lewis County in wnting of any actual or anticipated event that is delaying or could delay achievement of any milestone or performance of any cntical path activity of the project A copy of this report shall also be placed in the file of the Economic Development Public Facilities Advisory Committee 2 The Applicant must provide semi-annual progress report to the Lewis County Board of County Commissioners in order to ensure satisfactory completion of the project and proper expenditure of grant monies The scope of project work is contained in the 09 application dated February 11, 2019 and is hereby incorporated by reference into this agreement Failure to provide progress reports or sufficient information may result in reversion to the "Distressed Counties Fund"of all or part of the funding balance At such times as the Lewis County Board of Commissioners deems necessary for reasonable cause, the applicant shall permit the County to inspect and audit all pertinent books and records of the Page 1 of 5 applicant or other persons or entities that have performed work in connection with or related to this funding The audit may take place up to three years after completion of the project The books and records are to be made available at reasonable times at such reasonable location as County selects At Lewis County's request, the applicant shall supply County with, or shall permit County to make a copy of, any books and records and any portion thereof 3 Applicant has requested these County funds in order to fund the installation of a rail spur Failure to comply with the intent of this section may result in reversion to the"Distressed Counties Fund"of all or part of the funding balance Funding to complete the full project as presented in the application must be confirmed and available prior to release of these grant funds Failure to comply with this section may result in reversion to the"Distressed Counties Fund"of all or part of the funding balance 4 Applicant shall provide documented evidence of expenditures of all funds for this project at the semi-annual updates denoted in item#2 (or within 60 days of project completion) to both the Rural Economic Development Public Facilities Advisory Committee and the County Funds spent under this program must be for the purpose of financing public facilities or supporting related economic development projects, as defined under RCW 82 14 370 and AGO 2002, No 1 Failure to comply with this section may result in reversion to the"Distressed Counties Fund"of all or part of the funding balance 5 Funds provided under this program shall be spent at the same percentage rate as those coming from any other source. For example, if the recipient spends 20% of funds from one source, it shall spend 20% of funds from the other source Billings and invoices together with audit-sufficient supporting documentation shall be remitted to the County for payment not more than one time each month Within thirty(30) days of receiving a reimbursement claims voucher that meets the requirements of this Agreement and applicable law, the Clerk of the board, on behalf of the county, shall remit to the organization a warrant for the approved reimbursement amount The applicant will be responsible to the County for the timely sharing and/or exchange of any or all documentation related to the project as well as accounting and record retention responsibilities for the project 6 The applicant shall comply with and give notices required by all federal, state, and local laws, ordinances, rules, regulations, and lawful order of public authorities applicable to performance of the project Lewis County reserves the right to terminate this Agreement and demand reversion of"Distressed Counties Fund"monies at any time during the undertaking of said project if it is discovered that said project is in violation of any local, state, or federal laws IV. ENTIRE AGREEMENT This Agreement represents the entire Agreement between the parties and supersedes any prior oral statements, discussions or understandings V FUTURE SUPCITY Page 2 of 5 Lewis County makes no commitment to future support and assumes no obligation for future support of the activity contracted for herein, except as expressly set forth in this Contract The maximum amount of funding available is as stated in the Lewis County Economic Development Public Facilities Project Proposal attached herein This item is hereby incorporated into this Agreement by reference VI. GOVERNING LAW This Agreement is governed by, and shall be construed in accordance with, the laws of the State of Washington Except as otherwise required by applicable law, any legal action under this Agreement shall be brought in the Supenor Court of the State of Washington in and for Lewis County VII WAIVER OF BREACH No waiver of any breach of any covenant or agreement contained herein shall operate as a waiver of any subsequent breach of the same covenant or agreement or as a waiver of any breach of any other covenant or agreement, and in case of a breach by either party of any covenant, agreement or undertaking, the non-defaulting party may nevertheless accept from the other any payment or payments or performance hereunder without in any way waiving its right to exercise any of its nghts and remedies provided for herein or otherwise with respect to any such default or defaults that were in existence at the time such payment or payments or performance were accepted by it VIII INDEMNIFICATION The Port of Chehalis shall protect, defend, indemnify and hold harmless Lewis County, the Board of County Commissioners, its officers, agents, and employees, or any of them from and against any and all claims, actions, suits, liability, loss, costs, expenses, and damages of any nature whatsoever, which are caused by or result from the performance of this Agreement by either party This indemnity and hold harmless agreement shall not apply to acts or omissions of the County's officers, agents, and employees that are not in good faith and are outside the scope of their official duties IX DISPUTE RESOLUTION (a) If a dispute anses between the parties with regards to the performance of any provision of this agreement or the interpretation thereof, the parties agree to follow the procedure set forth below It is the goal of the parties to resolve their differences as early and amicably as possible (b)The parties shall first meet to attempt to see if the matter can be informally resolved This informal resolution attempt may involve more than one meeting but is not required to involve more than one meeting Page 3 of 5 (c) If the parties are unable to resolve their differences, the parties will endeavor to settle the dispute by mediation under such mediation rules as shall be mutually agreeable to the parties. Such mediation shall be non-binding but shall be a condition precedent to having said dispute decided in court by a judge or jury Mediation shall commence, unless otherwise agreed, within thirty(30) days of a party's written request for mediation of a dispute Any resolution at this stage shall be reduced to writing and, if it involves an interpretation of the agreement, it shall be considered an addendum to this agreement without the need for formal adoption by the governing bodies of the jurisdictions that are parties to this agreement Any costs related to mediation shall be shared equally by the parties Dated this 8th day of April, 2019 BOARD OF COUNTY COMMIS ONERS L q S C'I UNTY, WASHING N •gGouNTX it:44,941 &RD 75• 04▪'1/ `ti`o• Robert C Jackson, Chair • SINCE z vb 1845 t *. • .* fir '• • ootv_1 is cp.•• 9114A° •• NS�e• Gary Sta per, Vice-Chair Edna J Fun 4,Commissioner Rieva Lester, C- e Clerk of the Board Applicat ame By Title C�G For rocz or cl4e1 ALt, Approved as to Form Lewis County Prosecuting Attorney Page 4 of 5 Civil Deputy Prosecutor Page 5 of 5 BOCC AGENDA ITEM SUMMARY Resolution BOCC Meeting Date Apr 08, 2019 Suggested Wording for Agenda Item. Agenda Type Consent Approving an Agreement Between Lewis County and The Port of Chehalis for the "Rail Transload and Grain Facility" project and to accept Funding from the 09 Distressed Counties Fund Contact Erik Martin/Becky Butler Phone 3607401198 Department Board of County Commissioners Action Needed Approve Resolution Description Approving the"Rail Transload and Grain Facility" project for purposes of RCW 82 14 370,amending the Community Economic Development Strategies (CEDS)list to include the project in the county s overall economic development plan Authonzing Lewis County to enter into a Grant Agreement with the Port of Chehalis in the amount of$800,000, using monies from the Distressed Counties Fund, all in accordance with RCW 82 14 370 and applicable law Approvals. User Group Status Eisenberg, Eric Prosecutor Pending Martin, Erik BOCC Pending Lester, Rieva BOCC Pending Cover Letter To Candace Hallom,Becky Butler, LEWIS COUNTY.09 RURAL ECONOMIC DEVELOPMENT FUND COMMITTEE EVALUATION Committee Use Only Do Not Fill Out Economic Benefits The following are metrics that provide an aid in determining which projects may receive funding Questions Metric Does the proposed project create jobs? How many? Does the proposed project retain jobs? How many? What is the cost per job created/retained?(divide dollars requested by jobs created and/or retained) What is the total number of full time jobs created/retained? What is the total number of part time jobs created/retained? How many businesses will directly benefit from this project? Readiness to Proceed The following are metrics that we have identified as an aid in determining projects may receive funding Questions Metric Is this project a "Public Facility' that has an economic development purpose? Y/N Have entitlements been obtained and required permits issued/in process? None/Some/All Does this project have a clear timeline and scope of work? Y/N If this request is approved, what is the amount of match funding that is secured? What is the probability of completion from 1-10 (10 indicates a high probability)? 6 Category Created(1 yr.) -Name/Number Retained(1 yr)-Name/Number Businesses • • Direct full time Jobs, 2-6 FT jobs 6-30 FT jobs Direct part time jobs, indirect jobs • What Will Be The Cost Of The Project? The County Commission may disburse funds as both grants and loans No funding will exceed $600 000 unless it is deemed an extraordinary circumstance by the County Commission The County negotiates the terms of each award This may include interest rates or disbursement schedule IS; 000 Total Project Cost /fi t..c,—S -)00 OOC Requested Amount. 6(,,0 El Loan Amount .►w rant Amount: f� I. What Is The Timeline To Completion? Articulate the projected timeline of for this project as well as its completion date Description The rail infrastructure that is the subject of this proposed grant could be fully constructed in the summer of 2019 Once fully funded, the complete Rail Transload Facility and Chehalis Valley Grain Storage Facility could be constructed during the next summer construction window If fully funded in early 2019, the facility could be complete by the end of 2019 5 YOUR PROJECT What is your"Public Facilities"project? Please provide a brief description of your project in the space below This request is for $800,000 to fund the installation of a rail spur that will support the Chehalis Valley Grain Storage Facility and a Rail Transload Facility at the Port of Chehalis The Chehalis Valley Grain Storage Facility is a segregated grain storage handling, drying, receiving and shipping facility that will serve the Lewis Thurston Cowlitz and Grays Harbor regions This work is being done at the request of many different stakeholders in the local farm industry and is the result of collaboration and work by ports, EDCs, counties, cities WSU Extension, community colleges, grain growers grain buyers and other groups The proposed Rail Transload Facility in the Chehalis Industrial Park has been identified as a local need since at least 2012 A facility like this is used to move cargo from rail to truck and vice versa and is publicly-owned infrastructure that would serve all hundreds of existing and future businesses in the area They could receive bulk or specialized cargoes from rail shippers, and then transport them the remaining distance to their facility by truck Likewise,they could send their products out to market via rail when that is more efficient than shipping via truck Currently there are no publicly-owned rail reload facilities in the area and one substandard private one in a flood zone well to the north of the city This project has been requested by local businesses for years, and the port has researched market demands and determined that there is sufficient demand to warrant a facility and that this location is the best one for the project How Will This Project Create Or Retain Business Or Jobs? "Jobs" are defined by the 09 advisory committee as employment that produces products and services and exports products and services outside of Lewis County that results in new money coming into the community This is traditionally manufacturing, logistics and other production facilities This typically excludes retail and service sectors and other tertiary jobs producers The Chehalis Valley Grain Storage Facility will encourage increased economic activity and job creation primarily at existing local farms who sell more profitable crops as well as new fields converted to grain crops Secondarily the benefits would be felt at local farm supply businesses grain millers, breweries, bakers and others in grain related fields The Rail Transload Facility will encourage increased economic activity and job creation at any Lewis County business taking advantage of rail transportation opportunities in the Chehalis Industrial Park Primarily these will be Chehalis-area businesses, but as a publicly owned facility it would be available to all area business users 4 QUALIFICATIONS Does Your Project Qualify? Per RCW 82 14,370 the 09 funds may only be used to finance public facilities that facilitate the creation or the retention of business and jobs finance personnel in the office of a county, port district or associate development organizations tha' facilitate the creation or the retention of business and jobs Which Public Facility Is Your Project? The public facility must be specifically listed under RCW 82 14.370 and listed under the county economic development plan (or capital facilities plan) Please select the criteria which correspond to your project ❑Bridges El Domestic ! Li Research I1 Electrical facilities 0 Earth water facilities ' facilities I stabilization El Roads El Industrial water ❑Testing ! II Natural gas facilities t i Buildings facilities facilities ailroads El Sanitary sewer E Training ❑Telecommunications ❑Structures facilities • facilities I infrastructure ❑Storm sewer Incubation Commercial Øransportaion Port facilities infrastructure j facilities I facilities I infrastructure I ise4 How Can The Money Be Used For Your Public Facility Project? The Washington State Attorney General 2001 No 5 opinion states that the funds for this statute may only be used in the following ways Please select the criteria which correspond to your project El project-specific environmental costs El costs of site planning &analysis xs a nd use& permitting costs X11 l 'ih :pital facilities costs, including 0 project design, including 1 ill •osts of acquisition, construction, feasibility and marketing studies > development& rehabilitation, alteration,expansion ! &plans and debt&revenue improvement for the or improvements of public facilities impact analysis I public facilities 3 Contact Information Applicant Port of Chehalis Project Title Rail Trans load & Grain Facility Contact Randy Mueller ; Date 2/11/2019 Phone# 360-748-9365 Email rmueller@portofchehalis COM Address 321 Maurin Rd City, State Zip Chehalis, WA 98532 Loan Grant Request $800,000 Request Amount Amount By signing you confirm you have authority to submit this application for 09 funds on behalf of your organization I that the information is correct to my knowledge I Signature Signatory's Position 1 C."-C) , 1 I 2 LEWIS COUNTY 09 RURAL ECONOMIC DEVELOPMENT FUND APPLICATION CRITERIA Purpose Counties must consult cities, towns, port districts, and associate development organizations in order to disburse funds As per ROW 82 14 370 the funds may only be used to finance "public facilities" that facilitate the creation or the retention of business and jobs • finance personnel in the office of a county, port district, or associate development organization that facilitate the creation or the retention of business and jobs Public Facilities Definition As per RCW 82 14 370 the public facility must be listed under the county economic development plan or the capital facilities plan and examples are included below • bridges, roads, railroads, and transportation infrastructure domestic & industrial water facilities sanitary sewer facilities, and storm sewer facilities research, testing, training,and incubation facilities in innovation partnership zones (ROW 43.330.270) • electrical facilities, natural gas facilities, telecommunications infrastructure, earth stabilization • commercial infrastructure, port facilites, buildings structures Attorney General's Office As per the 2001 opinion of the Washington State Attorney General's Office the following are uses as defined in the statute • capital facilities costs, including acquisition, construction, rehabilitation alteration expansion, or improvements of public facilities costs of development and improvement for the public facilities, • project-specific environmental costs, • and use and permitting costs, • costs of site planning and analysis, • project design, including feasibility and marketing studies and plans and debt and revenue impact analysis 1 Date of Project Name Brief Description of Project Application Applicant Total Project Amount Status .09 CEDS List Rail transload and grain 2/11/2019 facility Port of Chehalis $ 800,000.00 Installation of a rail spur rinance puonc racemes serving Water Main Extension economic development purposes in 2/7/2019 SR505 City of Winlock $ 300,000.00 rural counties Comprehensive Plan Complete state mandated update of 2/19/2019 Update City of Vader $ 25,000.00 City of Vader Comprehensive Plan 8/21/2018 McBride Court Phase II Port of Chehalis $ 400,000.00 Build a 20,000 sf facility Packwood Sewer Rendering of Wastewater Treatment 3/9/2018 Lewis EDC $ 30,000.00 Plant EDC Operations Implementation of Strategic Plan and 3/9/2018 Lewis EDC $ 330,000.00 initiatives Co Working facility Acquire and remodel facility for co- 8/1/2017 Port of Chehalis $ 125,000.00 working City of Airport Project Planning Chehalis/Centralia Collection&analysis of market data 8/24/2017 Chehalis Airport $ 38,000.00 for land use planning Lewis County Water Dist 1 Feasibility Study and Feasibility Study and Engineering Report 5/24/2017 Engineering Report Lewis Co Water Dist 1 $ 40,000.00 to repair or replace Hampton Reservoir Business Dev At the Economic development planning and 5/18/2017 Industrial Park at TransAlta Lewis EDC $ 380,000.00 business recruitment Curtis Rail Line Natural Repair trestle and tracks 2/11/2016 Disaster Repair Port of Chehalis $ 100,000.00 Habein Road Industrial 2/22/2016 Complex Port of Chehalis $ 750,000.00 Env sampling,site design,permitting Chehalis Industrial Park Site 10/30/2015 Prep Port of Chehalis $ 275,000.00 clearing,fill excavation permitting Discover!Childrens Construction of a childrens museum 8/26/2015 Museum City of Chehalis $ 4,200,000.00 Chehalis Industrial Park Rail build 700 ft.ofrail 5/28/2015 Infrastructure Expansion Port of Chehalis $ 885,271.00 Discover!Childrens Construction of a childrens museum 5/27/2015 Museum City of Chehalis $ 4,200,000.00 Historic Fox Theatre South Wall and Roof Restoration Preserve structual integrity of building 5/15/2015 Project City of Centralia $ 365,855.00 Steam Engine#15 15 yr Overhaul of Locomotive#15 2/20/2015 rebuild City of Chehalis $ 135,276.00 Steam Engine#15 15 yr 8/29/2014 rebuild City of Chehalis $ 158,340.00 Overhaul of Locomotive#15 North County Industrial Transportation access to industrial area 7/2/2014 Access Lewis Co.Public Works $ 500,000.00 Funded Rural Economic Development Public Facilities Advisory Committee Minutes March 8, 2019, @ 8 30am Lewis EDC Conference Room 8 30 A M call to order by Dan Rich Committee Members Present. Dan Rich, Tin Men Supply, Dennis Dawes, City of Chehalis Mayor, Edna Fund, Lewis County Commissioner, Dan Mortenson, City of Morton Mayor, Tom Bradley, Industrial Commission (standing in for Buck Hubbert), Lee Coumbs, City of Centralia, Peter Lahmann, Port of Centralia Others Present Matt Matayoshi, Lewis EDC; Marrianne Schumacher, Lewis EDC, Randy Mueller, Port of Chehalis, Bob Guenter, Ron Averill, Farm Bureau, Bob Russell; Mike Peroni, NABC, Dave Fenn, and Elaine O'Neill New Business: 8.30 A.M • Dennis Dawes made a motion to approve minutes from the November 9, 2018 meeting Edna Fund provided a second to the motion The motion to approve the minutes passed unanimously 8.35 A M • Randy Mueller presented the Port of Chehalis application for a rail transload and grain facility Dave Fenn stated, "You have to be set up to load a truck quickly Grain storage with the rail spur provides this opportunity " Lewis County does not currently have a market for barley but with the storage and rail spur capability, it could Ron Averill stated, "Lewis County has a lot of small producers The rail spur gives those smaller farms a place to bring their product to ship out " The remaining funding, 2/3 of the project, are being asked for in the state capital budget and regional funds Port of Chehalis is providing match with 8 acres of land Port of Chehalis will own the rail spur with negotiation of a nominal fee for shipping products Lee Coumbs and Dennis Dawes both spoke to the need of supporting the agriculture industry within Lewis County Dan Rich stated, "Even without the 2/3 from the state capital budget and regional funds, we still have the asset of the rail spur in Chehalis for other and future opportunity Edna fund stated that the grain and agriculture industries is a niche for us that can draw opportunity to Lewis County Dennis Dawes made a motion that the Port of Chehalis applications project, Rail Transload and Grain Facility, be funded for the requested amount of$800,000 Lee Coumbs provided a 2"d to the motion The motion to approve was unanimous 9.22 A M.. Matt Matayoshi presented the City of Vader application $25,000 is being requested by the City of Vader to help with economic development and comprehensive planning Dennis Dawes stated his support in the smaller counties of Lewis County Lee Coumbs made a motion to approve the City of Vaders' request for funding in the amount of $25,000 Peter Lahmann provided a 2nd to the motion The motion to approve was unanimous 9.26 A M. Matt Matayoshi presented the City of Winlock application State match is$1 5 million. City previously received funds from Senator Brauns office but there is a gap This part of the project will serve for commercial along 15. Dennis Dawes stated, "It's Important for Winlock to have water service Then they can pursue funding for sewer facilities Dan Rich stated, "This funding is necessary to improve the area " Peter Lahmann made a motion to approve the request for funds for the City of Winlock project, Water Main Extension SR505 Dennis Dawes provided a 2nd to the motion The motion was approved with a unanimous vote 9•30 A M • University of Washington application was considered He informed the committee that the application was received the morning of March 7th and was sent out to the committee upon receiving it The application was received after the February 22nd application deadline Bob Guenther spoke about the Poplar plantations and pulp mills He stated that a refinery is needed in Lewis County but first a feasibility study needs to be conducted Dan Rich asked the committee about setting a precedence for 09 meetings regarding applications that come in late Bob Guenther stated that an email referring to the application was sent to both Dan and Matt on January 24th Both Matt and Dan stated they never received the email Matt stated that he received the application the on March 7th and it was sent out to the committee immediately The committee agreed to hear the application Elaine O'Neill stated that the total project is $600,000 There is currently $300,000 in state capital budget but a match is required A discussion of the project followed There was discussion of different resources made available through bio-refineries Dennis Dawes stated that the consensus of the committee was in support of the application This was an informal action, therefore Dennis Dawes made a motion that there would be a formal vote on the application at the upcoming 09 committee on June 14th Lee Coumbs provided a 2nd to the motion The motion to approve was unanimous 10 15 A.M.. Meeting Adjourned