Approve $400,000 .09 ("Distressed Counties") grant to Pe Ell for its "Improvement of Access to Water Intake" project. BEFORE THE BOARD OF COUNTY COMMISSIONERS
LEWIS COUNTY, WASHINGTON
IN THE MATTER OF: RESOLUTION NO. 22-227
APPROVE $400,000 .09 ("DISTRESSED
COUNTIES") GRANT TO PE ELL FOR ITS
"IMPROVEMENT OF ACCESS TO WATER INTAKE"
PROJECT
WHEREAS, the Lewis County Board of County Commissioners (BOCC) wishes to
approve funding in the amount of $400,000 for the Town of Pe Ell's "Improvement
of Access to Water Intake" project, a project that serves future demand and 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 Alliance as per RCW
82.14.370; and
WHEREAS, via prior resolutions and this resolution, the BOCC adopts the CEDS as
Lewis County's officially adopted county overall economic development plan for
the purposes of RCW 82.14.370; and
WHEREAS, Pe Ell's application for funding of the "Improvement of Access to
Water Intake" 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 Distressed Counties/Rural Economic Development Public Facilities
Advisory Committee recommends approving a grant in the amount of $400,000,
which exceeds the amount the town originally requested, to ensure the project is
fully funded; and
WHEREAS, Pe Ell's application is supported by the attached Grant Agreement
prepared by Economic Alliance pursuant to the CEDS, and the 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 authorized in order to allow completion of the
"Improvement of Access to Water Intake" project, a project that supports
economic development in Lewis County.
Page 1 of 2 Res. 22-227
NOW THEREFORE BE IT RESOLVED that the BOCC (1) approves the
"Improvement of Access to Water Intake" project as a public facility for purposes
of RCW 82.14.370 and amends the CEDS list to include that project in the
county's overall economic development plan; and (2) authorizes Lewis County to
enter into the attached Grant Agreement with the Town of Pe Ell for the
"Improvement of Access to Water Intake" project in the amount of $400,000 using
monies from the "Distressed Counties Fund," all in accordance with RCW
82.14.370 and applicable law.
DONE IN OPEN SESSION this 26th day of July, 2022.
APPROVED AS TO FORM: BOARD OF COUNTY COMMISSIONERS
Jonathan Meyer, Prosecuting Attorney LEWIS COUNTY, WASHINGTON
Robert Bradley Lindsey R. Pollock, DVM
By: Robert Bradley, Lindsey R. Pollock, DVM, Chair
Deputy Prosecuting Attorney
ATTEST: •'�°�" v,was•. Absent
�
Sean D. Swope, Vice Chair
•:'2•;6 oo:•:
Rieva Lester •*•'��•`�°�•''•� F. Lee Grose
Rieva Lester, F. Lee Grose, Commissioner
Clerk of the Lewis County Board of
County Commissioners
Page 2 of 2 Res. 22-227
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June 2022 .09Rural Economic Development Public Facilities Advisory Committee
Minutes
June 10, 2022 @ 8:28am
Economic Alliance Boardroom
Present: Ben Kostick, Buck Hubbert, Paul Ericson,Cameron McGee, Lee Grose, Fred Morton,
Shawn O'Neill, Kyle Markstrom, Richard Debolt, Dolly Tardiff, Marrianne Schumacher,
(Guests:Josh Puckett &Tina Puckett)
2022 .09 Committee Appointment-
Richard and the committee had discussion on rotating the .09 committee each year as a benefit
to applicants and the community. Discussion was had and it was agreed by all to implement
that process.
Approval of previous meeting minutes:
Motion for approval- Kyle Markstrom
2nd- Lee Grose
All approved
Review of.09 funds balance-
Marrianne reviewed the balance and discussion was had by all. No further questions were
asked.
CEDS Report-
Marrianne spoke about the CEDS report and the .09 application and stated it is up on the
website.
Review of Applications-
*Lee introduced Josh &Tina Puckett who put in an application for the White Pass
Country Historical Society.They presented on getting funds to build a brewery in
Packwood. They have plans drawn up and these funds would be for the structure only.
The amount asked for was$450,000.
*Richard spoke about the Port of Chehalis "Grain Facility" application confirming details
with Paul Ericson.They would get grain from our local farmers and bring hop farming to
our area.The project design has been approved and rail unloading, and transfer facility
is engineered.The amount asked for was$200,000.
*Richard and Shawn spoke about the Pe Ell application for the Dam Road project.This
road desperately needs to be replaced.Tte amount asked for was$200,000. Discussion
was had by all, and it was decided to have the commissioners amend the application to
increase the ask for funding for this project.
Approval of Motion for Commissioners to amend the funding request for PeEll.
A motion was made to have the commissioners amend the Pe Ell application to
$400,000.
Motion for approval by Mayor Shawn O'Neil.
2nd- Lee Grose
All approved
Vote Taken: Ben Kostick put to vote for the above three .09 Applications to be approved.
All were in favor, no opposed.
Application Funding Amount-
Lee led the discussion regarding the amount cap listed on the application.The application says
$200,000, it was decided by all that limit can be increased with the stipulation of the applicant
preparing an in-depth presentation to justify the higher amount.
Alliance Update: Richard gave an update about the (EALC) Economic Alliance of Lewis County&
(BDC) Business Development Center and what they both do for the community as a service.
Adjournment-
Motion to Adjourn 9:07 AM- Ben Kostick
2nd- Lee Grose
All approved
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 RCW 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(RCW 43.330.270)
• electrical facilities, natural gas facilities, telecommunications infrastructure,earth stabilization
• commercial infrastructure,port facilities, 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;
• land 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
Contact Information
Applicant: Town of Pe Ell Project Title: Improvement of Access to Water
Intake
Contact: Lonnie Willey Date: 4/7/2022
Phone#: 360-324-62132 Email: p-Imayor@centurytel.net
Address: 111 S. Main St. City, State, Zip: Pe Ell, WA, 98572
....................
Loan Grant Request 200,000
Request Amount
Amount
By signing you confirm you have authority to submit this application for.09 funds on behalf of your
organization. I affirm that the information is correct to my knowledge.
Signature L....1....cit2fSignatory's
Position: / A Y C3A.
2
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 that
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.
BridgesX Domestic water
❑
facilities Research ❑Electrical facilities Earth
facilities stabilization
X Roads (-Industrial water ❑Testing E Natural gas facilities ❑Buildings
facilities facilities
I I Railroads El Sanitary sewer ; I f�I Training ❑Telecommunications ❑Structures
facilities facilities infrastructure
Ell Transportation ❑Storm sewer ❑Incubation Commercial ❑Port facilities
infrastructure facilities facilities infrastructure
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.
project-specific environmental costs El costs of site planning&analysis 11 land use&
permitting costs
X capital facilities costs, including ❑project design, including X costs of development
acquisition,construction, rehabilitation, &improvement for the
feasibility and marketing studies
alteration,expansion,or improvements &plans, and debt&revenue
public facilities
of public facilities impact analysis
3
YOUR PROJECT
What is your"Public Facilities"project?
Please provide a brief description of your project in the space below.
To improve the access road, culverts should be installed in four locations to drain low areas in
the roadway that collect and pool water and could lead to downslope drainage issues or slides.
The estimated cost of installing these culverts is$78,000. The full length of the access road
should be graded and crushed rock should be installed. The estimated cost of re-grading the
access road and installing crushed rock is$289,000.
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.
Description:This project will allow the Town of Pe Ell to make necessary repairs to our
water source intake. Without the critical repairs to the access road,the Town is limited in
the repairs that can be made to the intake structure. Without these critical projects being
completed the Town of Pe Ell risks the chance of the total loss of our water supply, which
will have a direct impact on current businesses and jobs that are offered in our community.
Without water supply for the Town of Pe Ell, the Town can not operate or grow
economically. This could substantially impact the logging operations for the Weyerhauser
Pe Ell Tree Farm, state DNR lands, and other private timber owners that our community
relies on for the significant portion of revenue for the existing businesses here.
Category Created(1 yr.) - Name/Number Retained(1 yr.) -Name/Number
Businesses 17
Direct full time jobs,
Direct part time jobs,
4
Category Created(1 yr.)-Name/Number Retained (1 yr.)-Name/Number
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.
Total Project Cost: $367,000 Requested Amount: $200,000
El Loan Amount: 'X Grant(Limit$200,000) Amount:
What Is The Timeline To Completion?
Articulate the projected timeline of for this project as well as its completion date.
la
Description: No design or procurement processes have begun. We would like to start the project as soon
s possible with a proposed completion date of mid to late summer 2022.
5
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
GRANT AGREEMENT
BETWEEN LEWIS COUNTY AND
THE TOWN OF PE ELL
This Grant Agreement is made and entered into by Lewis County and the Town of Pe
Ell as to the conditions for acceptance of monies by the Town of Pe Ell 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"Improvement of Access to Water Intake"and shall be funded in the amount
of a grant for$400,000.
II.ELIGIBILITY
The public facility must be listed as an item in the officially adopted Lewis County
Comprehensive Economic Development Strategy(CEDS)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 Board of County Commissioners
(BOCC),applicant agrees that:
1. The project must be in progress within six (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 Town
of Pe Ell shall promptly notify Lewis County in writing of any actual or
anticipated event that is delaying or could delay achievement of any milestone or
performance of any critical 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 April 7,2022, 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 County
Commissioners deems necessary for reasonable cause, the applicant shall permit
the County to inspect and audit all pertinent books and records of the applicant or
Page 1 of 5
other persons or entities that have performed work in connection with or related to
this funding. The audit may take place up to three(3)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 improve the access road,
install culverts in four locations to drain low areas in the roadway that collect and
pool water and could lead to downslope drainage issues or slides. The estimated
cost of installing these culverts is$78,000. The full length of the access road will
be graded and crushed rock will be installed.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 [sixty]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. 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
30(thirty)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.
Page 2 of 5
V. FUTURE SUBSIDY
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 for Washington's choice of law rules. Except as otherwise
required by applicable law,any legal action under this Agreement shall be brought in the
Superior 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 rights 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
To the fullest extent permitted by law,the Town of Pe Ell shall protect,defend,
indemnify and hold harmless Lewis County,the Lewis County 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,except
those resulting exclusively from the County's sole negligence. In the event of the concurrent
negligence of the Town of Pe Ell,its subcontractors, agents or employees, and the County,its
officers, agents,or employees,this indemnification obligation shall be valid and enforceable
only to the extent of the negligence Town of Pe Ell,its subcontractors,agents,and employees.
This indemnification obligation of the Contractor shall not be limited in any way by the
Washington State Industrial Insurance Act,RCW Title 51,or by application of any other
workmen's compensation act, disability benefit act or other employee benefit act, and Town of
Pe Ell hereby expressly waives any immunity afforded by such acts.The foregoing
indemnification obligations of Town of Pe Ell are a material inducement to County to enter
into this Agreement,are reflected in the grant funding,and have been mutually negotiated.
Town of Pe Ell shall require any subcontractors performing on the project herein to indemnify
the County to an equal or greater extent than provided herein. The County reserves the right,
but not the obligation,to participate in the defense of any claim,damages, losses or expenses
Page 3 of 5
and such participation shall not constitute a waiver of any indemnity protections under this
Agreement. Town of Pe Ell's obligations under this provision shall survive the completion,
termination, or expiration of this contract.
IX. DISPUTE RESOLUTION
(a)If a dispute arises between the parties with regard 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.
(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 30(thirty) 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.
Approved by the BOCC this 26 C� day of �, , t0ZZ
•
APPROVED AS TO FORM BOARD OF COUNTY COMMISSIONERS
Prosecuting Attorney onathan Meyer LEWIS COUNTY, WASHINGTON
By: Deputy Pro . Attome
Y Li sey F�Polloc ,Ch rk
ATTEST Sean D. Swope, Vice Chair
leCe-1-4eS ree/ALC—
••��s eouNT Rieva Lester, Clerk of the Board
F. Lee Grose, Commissioner
•'N,•gOARp ge%/J++
•• •y!z+ [ADDITIONAL SIGNATURES ON NEXT PAGE]
SINCE , :
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s �
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Grantee: Town of Pe Ell
By: � btA);,-
Title: flAybt2
For:
Date: -2 / g • a
Page 5 of 5
BOCC AGENDA ITEM SUMMARY
Resolution: BOCC Meeting Date: July 26, 2022
Suggested Wording for Agenda Item: Agenda Type: Deliberation
Approve $400,000 .09 ("Distressed Counties") grant to Pe ElI for its "Improvement of Access to
Water Intake" project
Contact: Rieva Lester Phone:
Department: BOCC - Board of County Commissioners
Description:
Approve $400,000 grant to Pe ElI for water project
Approvals: Publication Requirements:
Publications:
User Status
PA's Office Approved
Additional Copies: Cover Letter To:
Todd Chaput, Economic Alliance:
todd@lewiscountyalliance.org
Pe ElI Mayor Lonnie Willey: p-
Imayor@centurytel.net