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HomeMy WebLinkAbout2018/07/09 - Briefing Packet BOARD OF MASON COUNTY COMMISSIONERS DRAFT BRIEFING MEETING AGENDA 411 North Fifth Street, Shelton WA 98584 Week of July 9, 2018 Monday, July 9, 2018 Commission Chambers 9:00 A.M. Presentation of 2019 Budget Guidelines — Jennifer Beierle 9:30 A.M. Support Services — Frank Pinter 10:00 A.M. Executive Session- RCW 42.30.110 (1)(i) Litigation Executive Session — RCW 42.30.110 (1)(b) Real Estate 10:15 A.M. BREAK 10:30 A.M. Community Services — Dave Windom 11:00 A.M. Public Works — Jerry Hauth Utilities & Waste Management 11:30 A.M. Juvenile services — Jim Madsen Commissioner Discussion — as needed Briefing Agendas are subject to change,please contact the Commissioners'office for the most recent version. Last printed 07/05/18 at 9:55 AM If special accommodations are needed,contact the Commissioners'office at ext.419,Shelton#360427-9670;Belfair #275-4467,Elma#482-5269. MASON COUNTY COMMISSIONER BRIEFING INFORMATION FOR WEEK OF July 9, 2018 In the spirit of public information and inclusion, the attached is a draft of information for Commissioner consideration and discussion at the above briefing. This information is subject to change, additions and/or deletion and is not all inclusive of what will be presented to the Commissioners. We have changed the packet format so that it is an interactive document. Please click on the agenda item which then takes you to the cover sheet of that section in the document. To get back to the agenda, hit your "home" key on the keyboard. Please see draft briefing agenda for schedule. CO 1854 Mason County Support Services Department Budget Management . 'S �� . 411 North 5th Street Commissioner Administration Emergency Management Shelton, WA 98584 Facilities, Parks&Trails 1 360.427.9670 ext. 419 Human Resources Information Services Labor Relations ts;t Risk Management MASON COUNTY COMMISSIONER BRIEFING ITEMS FROM SUPPORT SERVICES July 9, 2018 • Specific Items for Review o Review of Financial Management Policy—Jennifer o Board of Equalization vacancy—Dawn o Discussion of CED's List- Frank o CDBG Community Action Council Sub recipient agreement-Jennifer • Commissioner Discussion J:\DLZ\Briefing Items\2018\2018-07-09.docx MASON COUNTY BRIEFING ITEM SUMMARY FORM TO: BOARD OF MASON COUNTY COMMISSIONERS FROM: Jennifer Beierle DEPARTMENT: Support Services EXT: 532 BRIEFING DATE: July 9, 2018 PREVIOUS BRIEFING DATES: N/A ITEM: Mason County Financial Policies & Procedures EXECUTIVE SUMMARY: Financial policies and procedures play an important role in a strategic, long-term approach to financial management. Some of the benefits of adopting formal, written financial policies include: 1. Institutionalize good financial management practices 2. Clarify strategic intent for financial management 3. Define boundaries and manage financial risk 4. Support good bond ratings 5. Promote long-term and strategic thinking 6. Comply with public management best practices Adopting Financial Policies is recommended by the Government Finance Officers Association (GFOA) and the State Auditor's Office (SAO). BUDGET IMPACTS: N/A RECOMMENDED OR REQUESTED ACTION: Request approval for the Board to sign a Resolution adopting the Mason County Financial Policies &Procedures ATTACHMENTS: Mason County Financial Policies & Procedures J:Uennifer B\Briefing, Agenda, &Public Hearing Items\Briefing Summary 7.9.2018-Financial Policy.doc 1854 Mason County Financial POLICIES & PROCEDURES Table of Contents I. Overview of the Mason County Financial Policies& Procedures 4 II. Budget 4 1) Purpose 4 2) Schedule 4 3) Budget Adjustments 4 4) Operating Budget 5 5) Capital Budget 6 6) Internal Allocation Costs 6 Ill. Basis of Accounting 6 IV. Accounting Policy, Financial Systems, and Reporting 7 1) Accounting Policy 7 2) Financial Systems 7 3) Financial Reporting 7 4) State Audits 7 V. Cash 7 1) Receipting 8 2) Petty Cash/Revolving Funds 8 3) Bank Accounts 8 VI. Investments 8 VII. Grants & Federal or State Funding 8 1) Grant Project Form 9 2) Year End Program Contract Worksheet 9 3) Federal Policy 9 VIII. Debt 10 1) Authority for County Indebtedness 10 IX. Revenue 10 1) Accounts Receivable 11 2) Collection Policy 11 3) Refunds vs. Reimbursements 11 4) Public Fees & Charges 12 X. Expenditures 12 1) Budget Appropriation and Monitoring 12 2) Travel/Business Expenditures 12 3) Non-Travel Food Purchases 12 4) Purchasing 12 5) Lost Warrants 13 2 X. Expenditures (continued) 6) Registered Warrants 13 7) Credit Cards 13 8) Outside Vendor Credit Accounts 13 9) Miscellaneous 13 XI. Adjusting Journal Entries 13 XII. Payroll 14 XIII. Capital Assets 14 1) Real Estate Excise Tax (REET) Funds 14 XIV. Fund Balance 14 1) Classification 14 2) Minimum Level 15 3 L OVERVIEW ti This Financial Policies and Procedures handbook is intended to provide guidance to Mason County department heads and elected officials in properly discharging their financial responsibilities. The procedures, policies, and practices set forth below do not create an express or implied contract between Mason County and its employees, nor are they to be viewed as making any promises or creating contractual rights of any kind. The information contained in this notebook represents guidelines only, and Mason County reserves the right to limit, modify, or terminate any of these policies, procedures, or practices at any time, at its sole discretion. 11. BUDGETW 1) Purpose The budget serves a number of functions. At the most basic level it is a legal document that gives County officials the authority to incur obligations and pay expenses. It is also a comprehensive business plan that should provide the following elements: public policies, a financial plan, an operations guide, and serve as a communications device. Mason County budgets on an annual calendar year basis. 2) Schedule RCW 36.40 prescribes the major steps in budget preparation along with a suggested schedule for completion of each step. However, the Board of County Commissioners may also set other dates relating to the budget process, including but not limited to the dates set in RCW 36.40.010, 36.40.050, and 36.81.130 to conform to the alternate date for the budget hearing. Mason County typically adopts the alternate dates in July. The major steps in budget preparation include: a) Call for Estimates. County Auditor notifies all officials to file budget requests and projected revenues for ensuing fiscal year. RCW 36.40.010 b) Filing of estimates with Auditor or Chief Financial Officer by all officials in the format as requested by the Auditor. RCW 36.40.010 c) Preliminary county budget prepared by Auditor or Chief Financial Officer submitted to Board of commissioners. RCW 36.40.050 d) Preliminary budget hearing presented to the Board of County Commissioners by the Auditor's Office. RCW 36.40.070 e) Alternative preliminary budget hearing by the Board of County Commissioners, on the first Monday in December. RCW 36.40.071 f) Final budget adoption by the Board of County Commissioners. RCW 36.40.080 31 Budget Adjustments Budget Transfers are used when changes in spending during the year result in a deficit in 4 one expenditure line item and an excess in another line item, in accordance with Resolution 26-17. • Transfers within Department's Budget Budget transfers may be made from the excess line to the deficit line to keep their operating budget correct with the Budget Manager's approval • Transfers Inter-Departments All requests for budget inter-department transfers shall be submitted, with department head approval and justification, to the Board of County Commissioners for consideration and approval. The Board of County Commissioners' approval is required prior to budget expenditure. Supplemental Appropriations are required when a department receives a new funding source that was not planned for during the budget process and will result in additional expenditures or when there are additional expenditures that weren't planned for during the budget process. Supplemental appropriations must be advertised for two weeks prior to Board approval. Non-Debatable Emergency adjustments may be made due to an emergency caused by fire, flood, explosion, storm, earthquake, epidemic, riot, or insurrection, or for the immediate preservation of public health or any other emergency as defined by RCW 36.40.180. Emergencies Other than Non-Debatable may be made when there is a public emergency that does not fall under the qualifications of RCW 36.40.180. Emergencies other than non- debatable must be advertised for one week prior to Board approval. All requests for supplemental or emergency appropriations will be submitted by the department head to the Board of County Commissioners for consideration and approval. The request shall be in writing, containing the facts constituting the supplemental or emergency appropriations and the estimated amount of additional budget required. Supplemental appropriations are done as needed. 4) Operating Budget The operating budget is the central financial planning document that encompasses all operating revenue and expenditure decisions. It establishes the level of services to be provided by each department within the restrictions of anticipated County revenues. Current expenditures will be paid for with current revenues. One-time expenditures, or revenues of a limited or indefinite term, should be used for capital projects or one time operating expenditures to ensure that no core services are lost when such revenues are reduced or discontinued. No operating deficits in any fund balance shall be incurred at year end. High priority will be given to expenditures that will reduce future operating costs, such as increased utilization of technology and equipment and prudent business methods. If expenditure reductions are necessary, complete elimination of a specific, non- mandatory service is preferable to lowering the quality of existing programs. 5 5) Capital Budget A comprehensive six year plan for capital improvements will be prepared per RCW 82.46, updated, and included in the yearly budget. Capital project proposals should include cost estimates that are complete, reliable, and attainable. Cost estimates should be based on a thorough analysis of the project and are expected to be reliable and complete. Funding sources should also be reliable and complete and the capital project will not be budgeted unless there are reasonable expectations that revenues will be available to pay for them. Changes to the comprehensive six year plan may be made annually during the budget process or concurrently with an amendment of the County budget, per RCW 36.70A.130 (2)(a)(iii). Any revision to the comprehensive plan would have to go to the state for review sixty days prior to adoption. The County will provide for adequate maintenance and appropriate replacement of capital facilities and equipment. The County will also provide for maintenance schedules to ensure that facilities and equipment are maintained so as to maximize its useful lifespan. These amounts will be reflected in the capital budget plan. The intent of the Capital Budget Plan is to maintain all assets at an adequate level in order to protect the County's capital investment and to minimize unexpected future maintenance and replacement costs. Funding of repair and replacement schedule projects will be the funding priority before discretionary capital projects. Decision making for capital improvements will be coordinated with the operating budget to make effective use of the County's limited resources for operating and maintaining facilities and capital projects. 6) Internal Allocation Costs This is the annual charge to non-general funds for the services provided by the general fund. Internal allocation costs shall be prepared with a detailed indirect cost allocation plan. The internal indirect cost allocation plan shall be developed each year with audited expenditures to identify and distribute costs of services provided by internal service departments to funds outside of the General Fund. The Auditor's office and the Budget office will prepare this after the yearly audit by the State Auditor's Office and incorporate the charges into the following year's budget, which is adopted by the Board of County Commissioners. These will be the actual costs charged to funds outside of the General Fund. lll. BASIS OF ACCOUNTING The basis of accounting used determines when revenues and expenditures/expenses are recognized in the accounts and reported in the financial statements. All funds are accounted for using the cash basis of accounting, in accordance with Resolution 67-17. Only the minimum number of funds consistent with legal and operating requirements should 6 be established, because unnecessary funds result in inflexibility, undue complexity, and inefficient financial administration. The Board of County Commissioners has the authority to create or delete funds by resolution. IV. ACCOUNTING POLICY, FINANCIAL SYSTEMS & REPORTING 1) Accounting Policy Mason County will establish and maintain the highest standard of accounting practices. Accounting and budgetary systems will conform to the State of Washington Budgeting Accounting Reporting System (BARS) and local regulations. 21 Financial Systems Mason County will strive to provide the technological tools, information systems support and uninterrupted level of information systems service to sustain the successful implementation and maintenance of a sound, reliable and efficient financial management system. The financial system shall also protect County departments against unauthorized access through information systems security and controls while allowing staff the ability to access information directly from the system. 3) Financial Reporting Full disclosure will be provided in all County financial reports and bond representations. Reports outlining the status of revenues and expenditures shall be prepared monthly on cash basis by the Budget Office. It will be distributed to the Board, elected officials, department heads, and any other interested party. An annual financial report will be prepared by the Auditor's Office in a timely basis to meet or exceed the State Auditor's Office standards. 41 State Audits An annual audit will be performed by the State Auditor's office and include the issuance of a financial opinion. V. CASH Cash deposits from the various operations are remitted to the Treasurer's Office and RCW 36.29.010 stipulates the Treasurer's responsibilities over cash. All county employees or new hires who handle cash are required to review, sign, and follow the department's procedures for cash handling. 7 1) Receipting Departments that receive cash for services or fees are required to evidence receipt by pre-numbered cash receipts. Cash shall be deemed to include cash, checks, or other financial instruments that can be converted to cash. Checks should be endorsed immediately and must be maintained with other cash items in a locked and secure location. Cash receipts must be balanced and deposited with the Treasurer's Office on a daily basis, unless exemption is approved, pursuant to RCW 43.09.240. The size and amount of deposits vary by location and department. Alternative receipt practices may be adopted only by approval of the County Treasurer. Where ever possible, the functions of receipting, balancing and depositing should be performed by different personnel to ensure adequate safeguards. 2) Petty Cash/Revolving Funds Departments may maintain petty cash or revolving funds for the payment of incidental expenses only with the Treasurer's prior approval and evidence of accounting ability to maintain the fund to the County standard. These funds are not intended for repository of cash receipts in the normal course of business and must not be commingled. 3) Bank Accounts The use of bank or other financial institution accounts for the purpose of depositing or maintaining public funds is forbidden without the prior consent and knowledge of the Mason County Treasurer, his/her office and staff. A INVESTMENTS The County Treasurer has responsibility for the investment of public funds under RCW 36.29.020. Investments are carried at book value and investments are made by fund. Investments are held by a third party trust agreement on a delivery versus payment basis and are booked electronically. Authorization to invest funds of a district or related entity is required in writing by an appointed investment officer for the district. The County Treasurer invests the County's short term cash and reserves for maximum return according to the investment policy established by the Mason County Treasurer and the County Finance Ca mhr e. Vll. GRANTS & FEDERAL OR STATE FUNDING Grant applications will be reviewed by the Board of County Commissioners with due consideration being given to whether locally generated revenues will be required to support these programs when outside funding is no longer available. Grants may be accepted if the County can be assured that the total costs and requirements of accepting funds are known and judged not to adversely impact the County's funds. Future impacts on the budget will be identified and analyzed prior to approval of grant contracts. Grant related revenue and expenditures (including matching funds provided by the County) shall be authorized, within policy, and properly accounted for in the project accounting 8 module of the financial management system according to Federal, State and local regulations and the terms and conditions of the grant award. The responsibility for understanding and adhering to County, State and Federal regulations, policies or procedures belongs to the managing department of that particular grant. 11 Grant Project Form When an application for grants is approved, or when a new federal or state funding source is secured, the department must complete and provide to the County Auditor the grant project form as prescribed by the County Auditor. A signed copy of the grant must be submitted with the grant code request form to the Auditor's Office. This helps ensure the required funding source information has been gathered so the Auditor can assign the proper revenue number in accordance with the State Auditor's BARS manual. 21 Year End Proaram Contract Worksheet At the end of each fiscal year, the County Auditor will provide a listing of all federal and state funding sources that were reported to the State Auditor's Office on Schedule 15 and Schedule 16. Each department must complete and provide to the County Auditor the program contract worksheet as prescribed by the County Auditor. These worksheets are considered the final Schedule 15 and Schedule 16 data, which is compiled by the County Auditor into a single document. 31 Federal Policy The departments shall also use applicable cost principles from the US Code of Federal Regulations Title 2, part 200 (2 CFR 200) to determine the reasonableness, allow ability and allocation of costs applicable to federal grants and contracts. The County shall recover the full cost of providing internal services to funds with grant revenue as permitted under the grant agreement and 2 CFR 200. Any instance where a potential conflict of interest may arise must be disclosed in writing by the responsible department to the federal awarding agency or pass-through entity in accordance with applicable Federal awarding agency policy. The definition of a conflict of interest is described in 2 CFR 200.318(c) Reference Mason County Conflict of Interest Policy. Any instances of violations of federal criminal law involving fraud, bribery, or gratuity violations potentially affecting federal awards must be disclosed in writing to the federal awarding agency or pass-through entity by the responsible department. Elected Officials, Department Heads, and grant managers within each department are authorized to sign the required certification as stated in 2 CFR 200.415. For billing indirect costs to grants, use the rate determined by the simplified external indirect cost allocation plan, which is calculated by the Auditor's Office. 9 Vill. DEBT Deficit financing and borrowing will not be used to support ongoing County services and operations. Expenses will be reduced to conform to the long term revenue forecast. Interfund loans are permissible to cover temporary gaps in cash flow, but only by resolution that states a short term repayment schedule and at an interest rate based on the Washington State Local Government Investment Pool. The lending fund must have excess funds available and the use of those funds won't have an impact on the fund's current operations. For additional information and detail see Mason County Interfund Loan Policy. If the Board of County Commissioners approves lease purchasing, the useful life of the item must be equal or greater than the length of the lease. The fixed asset information form must be provided by the department concurrent with the submission of the lease documents. Debt payments shall not extend beyond the estimated useful life of the project being funded. The Mason County will maintain good communications with bond rating agencies concerning its financial condition, and will take all appropriate and responsible measures to sustain quality bond ratings with continuous financial management efforts to enhance the County's bond ratings. Mason County follows the Mason County Debt Policy which is maintained by the County Treasurer. 1, Authority for County Indebtedness Department heads do not have the authority to commit Mason County to any indebtedness beyond current budget authority. For additional information and detail see Mason County Purchasing Policy. Indebtedness includes, but is not limited to leases, lease-purchases, rental agreements, contracts, grants, and other obligations of short and long term debt. The Mason County Commissioners shall be signatory to any obligations requiring short or long term indebtedness beyond current budget authority, unless the Commission has given written authority to exempt certain contracts. IX. REVENUE The County will follow a vigorous policy of collecting all County revenues. Revenue will be coded to the correct account per the Washington State BARS (Budgeting, Accounting, and Reporting System). Grant revenue must be deposited with the Mason County grant project code as assigned by the Auditor's Office. 10 1) Accounts Receivable Currently, billings for services, goods, and reimbursements for funds are done through a de-centralized financial accounting system. If revenue is anticipated, the department anticipating the revenue shall notify the Treasurer's office by Treasurer's ACH form or deposit form prior to receipt to ensure proper recording. There will be adequate segregation of duties relating to accounts receivable. To accomplish this, the billing, cash collection, recording, and reconciliation functions should be separated. If this level of segregation of duties is not possible, compensating controls should be implemented to ensure a proper division of functional responsibility. 2) Collection policy The collection policy and any action plan shall be established by the elected official or department head, recognizing State requirements and the unique characteristics of the clients served by that department. It is the responsibility of each department to collect their accounts receivable. Departments will review their outstanding receivables on a timely basis for past due accounts. Accounts Receivable aging reports should be run in the de-centralized accounting system in order to determine which accounts are past due. The oldest outstanding accounts receivables will be reviewed on a regular basis. Departments have the ability to handle past due accounts along reasonable business practice guidelines. An example of reasonable business practice could be as follows: A past due notice is issued for all accounts that are 30 days past due. Notices are issued by the responsible department every 30 days over a 90 day period. Notices are distinguished as "first notice" "second notice" and "final notice'; with the final notice indicating that the account could go to a collection agency if not paid. At the discretion of the department or elected official, the initial notice period can be extended in limited circumstances. No receivables should be due for longer than 90 days without past due notices being issued. As soon as accounts receivable are identified as uncollectible, the department should request a write-off approval from the Board of County Commissioners. 3) Refunds vs. Reimbursements Cash refunds from vendors are payments received for returned goods; for services paid for, but not used; or for overpayments. These are the only items that may reduce expenditures. Payments received by any outside agency as reimbursements for goods or services are not refunds and should be recorded as revenue, not as a reduction of expenditures. 11 If the refund is received after the end of the accounting period in which the original expenditure was made, and the dollar amount of the refund is not material, a BARS revenue account established bytheAuditor'sofficewill be credited for the amount of the refund. 4) Public Fees & Charges The full cost of services shall be evaluated by each department regularly to provide a basis for setting the charge or fee. Full cost incorporates direct and indirect costs. X.EXPEND/TURES Expenditures will be coded to the correct account per the Washington State BARS (Budgeting, Accounting, and Recording System). The Elected Official, Department Head, or approved designee will be verifying with their signature on the voucher that the payment of the indebtedness is authorized by the Commissioners through the budget process. 1) Budget Appropriation and Monitoring The Board of County Commissioners adopts the general fund budget at the department level and the special funds at the fund level. The County will not process expenditures in excess of the total appropriation for that fund. Departments are responsible for monitoring their budget expenditures. This is especially important during the last quarter of the budget year. Invoices in excess of budget will not be paid until the budget allows. Expenditures will be approved by the Board of County Commissioners at their next regular business meeting. Departments within the General Fund may exceed the approved budget within individual line items, but shall not exceed total departmental budgets without Board approval of a budget adjustment. No fund shall exceed total fund budget without Board approval of a budget adjustment. 2) Travel/Business Expenditures For additional information and detail see Mason County Personnel Policy, Travel Expense Reimbursement. 3) Non-Travel Food Purchases Food may not be purchased for employees with County funds unless the County is hosting an official meeting at which non-county employees are in attendance. 4) Purchasina For all new individual vendors, a completed Vendor Info Form or W9 must be submitted to the Auditor's Financial Services Department before payment to that vendor can be made. For additional information and detail see Mason County Purchasing Policy. 12 5) Lost warrants The County will not reissue a warrant, due to the loss of the original warrant, until a lost warrant affidavit is turned into the Auditor's Financial Services Office. A lost warrant affidavit may be turned in three weeks after the issue date of the original warrant, except in the case of a payroll warrant. 61 Registered Warrants Restricted cash flow and decreasing cash reserves require that Mason County enlist the aid of other financial institutions to hold registered warrants. The Mason County Treasurer reserve the statutory authority to issue registered warrants but has available several other alternative arrangements to cover short term financing. 7) Credit Cards Personal charges may not be made with a County credit card. Any charges which cannot be properly identified or which are not properly allowed shall be paid promptly by the card user. This includes finance charges, late fees, etc. Retain credit card receipts with detail of purchases throughout the month. Once the credit card statement is received, reconcile receipts to the statement, attach to an invoice edit and send the edit, statement and receipts to the Auditor's Financial Services Office for payment. 8) Outside Vendor Credit Accounts When the County has a credit balance on an outside vendor account, the balance must either be used within 90 days, or a reimbursement must be made from the county to the vendor . 9) Miscellaneous Volunteer Recognition Mason County frequently receives assistance from volunteers in the community. County departments may provide non-monetary recognition for volunteers not to exceed $50 per volunteer per year. Other Recognition Celebrations/Memorials/Flowers No county funds shall be used to purchase gifts or flowers for county employees or relatives, except for retiring employees. Xl. ADJUSTING JOURNAL ENTRIES All adjusting journal entries will be accounted for by maintaining a file including the date, 13 posting number, description, preparer's and approver's initials. There will be adequate documentation attached to the adjusting journal entry that will explain the reasoning for the entry. Departments may request an adjusting journal entry, but only Financial Services or Treasurer's Office may post. The approver may not be the same person as the preparer. Xll. PAYROLL Please see the Mason County Employee Handbook and/or the Payroll/Human Resources policy for detailed payroll and benefit policies. Xlll. CAPITAL For additional information and detail see Mason County Capital Asset Policy. 1) Real Estate Excise Tax (REET) Funds The State of Washington is authorized to levy a real estate excise tax on all sales of real estate. A locally-imposed tax is also authorized. REET I and II taxes are collected by Mason County. RCW 82.46 governs the REET funds. REET I funds can be imposed by all cities and counties. In order to impose REET 11, the County must be planning under the Growth Management Act. REET I dollars must be spent solely on capital projects that are listed in the capital facilities plan element of their comprehensive plan. Those include public works projects of a local government for planning, acquisition, construction, reconstruction, repair, replacement, rehabilitation, or improvement of streets; roads; highways; sidewalks; street and road lighting systems; parks; recreational facilities; law enforcement facilities; fire protection facilities; trails; libraries; and administrative and judicial facilities. REET II dollars must be spent on public works projects in the capital facilities plan element of their comprehensive plan such as planning, acquisition, construction, reconstruction, repair, replacement, rehabilitation, or improvement of streets, roads, highways, sidewalks, street and road lighting systems, traffic signals, bridges, domestic water systems, storm and sanitary sewer systems, and planning, construction, reconstruction, repair, rehabilitation, or improvement of parks. XIV. FUND 1) Classification Mason County fund balances are classified by reserved or unreserved. 14 2) Minimum Level Maintenance of an adequate fund balance for the General fund to ensure sufficient resources for cash flow and to mitigate revenue shortages or emergencies shall be a priority. The General fund shall maintain a minimum year-end unassigned fund balance of 8% of its annual expenditures. In the event the fund balance is not at that level, the county shall create a plan to restore the fund balance to 8% within two years. The General fund's long-term fund balance target is a year-end unassigned fund balance of 15% of annual expenditures. 15 MASON COUNTY BRIEFING ITEM SUMMARY FORM TO: BOARD OF MASON COUNTY COMMISSIONERS FROM: Diane Zoren DEPARTMENT: Support Services EXT: 747 BRIEFING DATE: July 9, 2018 PREVIOUS BRIEFING DATES: July 2 If this is a follow-up briefing, please provide only new information ITEM: Approval to fill a vacant Board of Equalization position. EXECUTIVE SUMMARY: (If applicable, please include available options and potential solutions): On June 5, 2018 Janis Loomis, Joseph Woodson Moore and John Smith interviewed along with Deborah Reis and Deborah was reappointed for that position. There is a new vacancy on the BOE and the request is to select an applicant from the June 5 interview pool. BUDGET IMPACTS: None RECOMMENDED OR REQUESTED ACTION: Fill the vacated BOE position. Briefing Summary 7/2/2018 MASON COUNTY BRIEFING ITEM SUMMARY FORM TO: BOARD OF MASON COUNTY COMMISSIONERS FROM: Jennifer Beierle DEPARTMENT: Support Services EXT: 532 BRIEFING DATE: July 9, 2018 PREVIOUS BRIEFING DATES: N/A ITEM: Sub-recipient agreement with Community Action Council of Lewis, Mason and Thurston Counties for service provision under a Public Services Washington State Community Development Block Grant (CDBG). EXECUTIVE SUMMARY: Mason County applied for and was awarded a Public Services CDBG grant through the Washington Department of Commerce. The County has partnered with the Community Action Council who will provide referrals and/or direct client services for eligible participants who are residents of Lewis or Mason County. This effort is funded under CDBG contract #18-62210-010. The contract total is $104,737 with a performance period of 7/1/18 through 6/30/19. This is a formula grant that can be applied for annually. The County has agreed to serve as the applicant and grantee for this program, and $3,500 in grant funds will be used to off-set administrative costs. The sub-recipient agreement with the Community Action Council is for $101,237. The primary responsibilities include providing referrals for a minimum of 6,000 individuals in Mason and Lewis counties of which a minimum of 3,060 must meet HUD's 51% income qualification and providing direct services and referrals for a minimum of 300 child victims. BUDGET IMPACTS: This project is fully funded by the CDBG grant. RECOMMENDED OR REQUESTED ACTION: Request approval for the Chair to sign the sub-recipient agreement ATTACHMENTS: Sub-recipient agreement with the Community Action Council of Lewis, Mason and Thurston Counties J:Uennifer B\Briefing,Agenda, & Public Hearing Items\Briefing Summary 7.9.2018-Sub-Recipient Agreement.doc 2018 PUBLIC SERVICES COMMUNITY DEVELOPMENT BLOCK GRANT SUB-RECIPIENT AGREEMENT BETWEEN MASON COUNTY AND COMMUNITY ACTION COUNCIL OF LEWIS, MASON AND THURSTON COUNTIES This AGREEMENT is made between Mason County, Washington (herein called the COUNTY) and Community Action Council of Lewis, Mason and Thurston Counties (herein called SUB-RECIPIENT) for the 2017 Public Services Community Development Block Grant (herein called PROJECT). COUNTY and SUB-RECIPIENT are collectively referred to as "PARTIES"to the AGREEMENT. As the Washington State Department of COMMERCE (COMMERCE) is authorized by the federal Department of Housing and Urban Development(HUD) to provide funds to units of the COUNTY selected to undertake and carry out PROJECTS under the Washington State Community Development Block Grant (CDBG) Program in compliance with all applicable local, state, and federal laws, regulations and policies; and As the COUNTY has applied for and received a CDBG award, contract number 18-62210-010 (CFDA 14.228),to fund the PROJECT with Federal Award Identification Number B-17-DC-53-0001;and As it benefits the COUNTY to engage the SUB-RECIPIENT to accomplish the Scope of Work and the objectives of the local CDBG PROJECT; The PARTIES agree that: 1. SCOPE OF SERVICES A. COUNTY Responsibilities The COUNTY is responsible for administration of the CDBG contract, and ensuring CDBG funds are used in accordance with all program requirements [(24 CFR 570.501(b)] and its CDBG contract with COMMERCE referenced above.The COUNTY will provide such assistance and guidance to the SUB-RECIPIENT as may be required to accomplish the objectives and conditions set forth in this AGREEMENT. The COUNTY is responsible for completing the following tasks to accomplish the objectives of the PROJECT: Principal Tasks • Execute contract with COMMERCE • Execute sub-recipient AGREEMENT • Establish administrative and other record keeping systems • Process and submit payment requests and CDBG Beneficiary Reports • Formulate and implement a sub-recipient monitoring plan and conduct on-site review • Ensure grant activities are completed • Conduct a final public hearing • Complete the grant close-out process with COMMERCE B. SUB-RECIPIENT Responsibilities The SUB-RECIPIENT will complete in a satisfactory and proper manner as determined by the COUNTY the tasks and activities as detailed in "Exhibit A Scope-of-Work"to accomplish the objectives of the PROJECT.The SUB- RECIPIENT will periodically meet with the COUNTY to review the status of these tasks. 1 Principal Tasks • Provide referrals for a minimum of 6,000 individuals in Mason and Lewis counties of which a minimum of 3,060 must meet HUD's 51% income qualification. • Provide direct services and referrals for a minimum of 300 child victims. • Formulate and submit required reports and payment requests to COUNTY in an accurate and timely manner. 2. TIME OF PERFORMANCE The effective date of this AGREEMENT will be the date the PARTIES sign and complete execution of this AGREEMENT through 6/30/2019 and will be in effect for the time period during which the SUB-RECIPIENT remains in control of CDBG funds or other CDBG assets as defined and required by COMMERCE and/or HUD. 3. AGREEMENT REPRESENTATIVES Each party to this AGREEMENT shall have a representative. Each party may change its representative upon providing written notice to the other party.The PARTIES' representatives are as follows: A. SUB-RECIPIENT: John Walsh, CEO Community Action Council of Lewis, Mason and Thurston Counties 420 Golf Road Lacey, WA 98503 360-438-1100 johnw@caclmt.org DUNS#096245428 B. COUNTY: Jennifer Beierle, Budget Manager Mason County 411 N. 5th Street Shelton,WA 98584 360-427-9670 Ext. 644 jb@co.mason.wa.us 4. BUDGET The COUNTY will pass through to the SUB-RECIPIENT no more than $99,289 in CDBG funds for eligible incurred costs and expenses for the PROJECT according to the following budget. PROJECT Budget Element Budgeted Amount 05 Public Services $101,237 Indirect Cost Rate: _% Federally Approved Indirect Rate, or 10%de minimis rate, or fill out"N/A" declining to charge indirect The COUNTY may require a more detailed budget breakdown, and the SUB-RECIPIENT will provide such supplementary budget information in a timely fashion in the form and content prescribed by the COUNTY. Indirect Cost Rate if the SUB-RECIPIENT chooses to charge Indirect under this grant, the SUB-RECIPIENT shall provide their indirect cost rate that has been negotiated between their entity and the Federal Government. If no such rate exists, a de minimis indirect cost rate of 10%of modified total direct costs(MTDC) will be used. 2 "Modified Total Direct Costs (MTDC)" shall mean all direct salaries and wages, applicable fringe benefits, materials and supplies, services,travel, and up to the first$25,000 of each subaward (regardless of the period of performance of the subawards under the award). MTDC excludes equipment, capital expenditures, and rental costs. Any amendments to this AGREEMENT's Budget must first be determined by the COUNTY as consistent with its CDBG contract with COMMERCE and then approved in writing by the COUNTY and the SUB-RECIPIENT. 5. PAYMENT The COUNTY shall reimburse the SUB-RECIPIENT in accordance with the payment procedures outlined in the CDBG Management Handbook, Financial Management Section for all allowable expenses agreed upon by the PARTIES to complete the Scope of Service. Reimbursement under this AGREEMENT will be based on billings, supported by appropriate documentation of costs actually incurred. It is expressly understood that claims for reimbursement will not be submitted in excess of actual, immediate cash requirements necessary to carry out the purposes of the AGREEMENT. Funds available under this AGREEMENT will be utilized to supplement rather than supplant funds otherwise available. It is understood that this AGREEMENT is funded in whole or in part with CDBG funds through the Washington State CDBG Program as administered by COMMERCE and is subject to those regulations and restrictions normally associated with federally-funded programs and any other requirements that the State may prescribe. 6. PERFORMANCE MONITORING The COUNTY will monitor the performance of the SUB-RECIPIENT by tracking PROJECT progress, reviewing payment requests for applicable costs, managing the timely pass-through of CDBG funds, overseeing compliance with CDBG requirements, and ensuring recordkeeping and audit requirements are met. Substandard performance as determined by the COUNTY will constitute noncompliance with this AGREEMENT. If action to correct such substandard performance is not taken by the SUB-RECIPIENT within a reasonable period of time after being notified by the COUNTY, contract suspension or termination procedures will be initiated. 7. SPECIAL CONDITIONS A. Withholding Payment: In the event the SUB-RECIPIENT has failed to perform any obligation under this AGREEMENT within the times set forth in the AGREEMENT,the COUNTY may, upon written notice, withhold from amounts otherwise due and payable to SUB-RECIPIENT, without penalty, until such failure to perform is cured or otherwise adjudicated. Withholding under this clause shall not be deemed a breach entitling SUB- RECIPIENT to termination or damages, provided that the COUNTY promptly gives notice in writing to the SUB-RECIPIENT of the nature of the default or failure to perform, and in no case more than 10 days after it determines to withhold amounts otherwise due. A determination of the Administrative Office set forth in a notice to the SUB-RECIPIENT of the action required and/or the amount required to cure any alleged failure to perform shall be deemed conclusive under this clause, without prejudice to any other remedy under the AGREEMENT, to take all or any of the following actions: (1) cure any failure or default, (2)to pay any amount so required to be paid and to charge the same to the account of the SUB-RECIPIENT, (3)to set off any amount so paid or incurred from amounts due or to become due the SUB-RECIPIENT. In the event the SUB-RECIPIENT obtains relief upon a claim under the Disputes clause, no penalty or damages shall accrue to SUB-RECIPIENT by reason of good faith withholding by the COUNTY under this clause. B. Labor Standards: SUB-RECIPIENT agrees to comply with all applicable state and federal requirements, including but not limited to those pertaining to payment of wages and working conditions, in accordance with RCW 39.12.040,the Prevailing Wage Act; the Americans with Disabilities Act of 1990; the Davis-Bacon Act; and the Contract Work Hours and Safety Standards Act providing for weekly payment of prevailing wages, minimum overtime pay, and providing that no laborer or mechanic shall be required to work in 3 surroundings or under conditions which are unsanitary, hazardous, or dangerous to health and safety as determined by regulations promulgated by the Federal Secretary of Labor and/or the State of Washington. C. Waiver of Noncompetition: SUB-RECIPIENT irrevocably waives any existing rights which it may have, by contract or otherwise,to require another person or corporation to refrain from submitting a proposal to or performing work or providing supplies to the COUNTY, and SUB-RECIPIENT further promises that it will not in the future, directly or indirectly, induce or solicit any person or corporation to refrain from submitting a bid or proposal to or from performing work or providing supplies to the COUNTY. D. Ownership of Items Produced: All writings, programs, data, public records or other materials prepared by SUB-RECIPIENT and/or its consultants or sub-contractors, in connection with performance of this AGREEMENT, shall be the sole and absolute property of COUNTY. E. E-verify: The E-Verify contractor program for Mason County applies to contracts of$100,000 or more and subcontracts for$25,000 or more if the primary contract is for$100,000 or more. SUB-RECIPIENT represents and warrants that it will, for at least the duration of the AGREEMENT, register and participate in the status verification system for all newly hired employees.The term "employee" as used herein means any person that is hired to perform work for Mason County. As used herein, "status verification system: means the Illegal Immigration Reform and Immigration Responsibility Act of 1996 that is operated by the United States Department of Homeland Security, also known as the E-Verify Program, or any other successor electronic verification system replacing the E-Verify Program. SUB-RECIPIENT agrees to maintain records of such compliance and, upon request of the COUNTY, to provide a copy of each such verification to the COUNTY. SUB-RECIPIENT further represents and warrants that any person assigned to perform services hereunder meets the employment eligibility requirements of all immigration laws of the State of Washington. SUB-RECIPIENT understands and agrees that any breach of these warranties may subject SUB- RECIPIENT to the following: (a) termination of the AGREEMENT and ineligibility for any Mason County contract for up to three (3)years, with notice of such cancellation/termination being made public. In the event of such termination/cancellation, SUB-RECIPIENT would also be liable for any additional costs incurred by the COUNTY due to contract cancellation or loss of license or permit. SUB-RECIPIENT will review and enroll in the E-Verify program through this website: www.uscis.gov F. Disputes: Differences between SUB-RECIPIENT and COUNTY, arising under and by virtue of the AGREEMENT Documents, shall be brought to the attention of COUNTY at the earliest possible time in order that such matters may be settled or other appropriate action promptly taken. Except for such objections as are made of record in the manner hereinafter specified and within the time limits stated, the records, orders, rulings, instructions, and decisions of the Administrative Officer shall be final and conclusive. G. Notice of Potential Claims: Subrecipient shall not be entitled to additional compensation which otherwise may be payable, or to extension of time for(1) any act or failure to act by the Administrative Officer or COUNTY, or(2)the happening of any event or occurrence, unless Subrecipient has given COUNTY a written Notice of Potential Claim within ten (10) days of the commencement of the act,failure, or event giving rise to the claim, and before final payment by COUNTY.The written Notice of Potential Claim shall set forth the reasons for which Subrecipient believes additional compensation or extension of time is due, the nature of the cost involved, and insofar as possible, the amount of the potential claim. Subrecipient shall keep full and complete daily records of the work performed, labor and material used, and all costs and additional time claimed to be additional. H. Detailed Claim: 4 Subrecipient shall not be entitled to claim any such additional compensation, or extension of time, unless within thirty(30) days of the accomplishment of the portion of the work from which the claim arose, and before final payment by COUNTY, Subrecipient has given COUNTY a detailed written statement of each element of cost or other compensation requested and of all elements of additional time required, and copies of any supporting documents evidencing the amount or the extension of time claimed to be due. I. Arbitration: Other than claims for injunctive relief brought by a party hereto (which may be brought either in court or pursuant to the arbitration provision), and consistent with the provisions hereinabove, any claim, dispute or controversy between the PARTIES under, arising out of, or related to the AGREEMENT or otherwise, including issues of specific performance, shall be determined by arbitration in Shelton, Washington, under the applicable American Arbitration Association (AAA) rules in effect on the date hereof, as modified by the AGREEMENT.There shall be one arbitrator selected by the PARTIES within ten (10) days of the arbitration demand, or if not, by the AAA or any other group having similar credentials. Any issue about whether a claim is covered by this AGREEMENT shall be determined by the arbitrator.The arbitrator shall apply substantive law and may award injunctive relief, equitable relief(including specific performance), or any other remedy available from a judge, including expenses, costs and attorney fees to the prevailing party and pre-award interest, but shall not have the power to award punitive damages.The decision of the arbitrator shall be the sole and exclusive remedy between them regarding any dispute presented or pled before the arbitrator. At the request of either party made no later than forty-five (45) days after the arbitration demand, the PARTIES agree to submit the dispute to nonbinding mediation, which shall not delay the arbitration hearing date; provided, that either party may decline to mediate and process with arbitration. J. Venue and Choice of Law: In the event that any litigation should arise concerning the construction or interpretation of any of the terms of the AGREEMENT, the venue of such action of litigation shall be in the courts of the State of Washington in and for the County of Mason. Unless otherwise specified herein,this AGREEMENT shall be governed by the laws of Mason County and the State of Washington. K. Communication: Subrecipient will not communicate directly with COMMERCE concerning this PROJECT without COUNTY's prior approval. 8. GENERAL CONDITIONS A. General Compliance The SUB-RECIPIENT agrees to comply with: • The requirements of Title 24 of the Code of Federal regulations, 570 (HUD regulations concerning CDBG); and • All other applicable Federal, State and Local laws, regulations, and policies, governing the funds provided under this AGREEMENT. B. CDBG National Obiective The SUB-RECIPIENT certifies the activities carried out under this AGREEMENT meet a CDBG Program National Objective defined in 24 CFR 570.208. C. Independent Contractor Nothing contained in this AGREEMENT is intended to, or will be construed in any manner, as creating or establishing the relationship of employer/employee between the PARTIES. The SUB-RECIPIENT will at all times remain an "independent contractor" with respect to the services to be performed under this AGREEMENT. The COUNTY will be exempt from payment of all Unemployment Compensation, FICA, 5 retirement, life and/or medical insurance and Workers' Compensation Insurance, as the SUB-RECIPIENT is an independent contractor. D. Indemnification To the fullest extent permitted by law, SUB-RECIPIENT will hold harmless, defend and indemnify the COUNTY and its departments, elected and appointed officials, employees, agents and volunteers,from any and all claims, actions, suits, charges and judgments whatsoever that arise out of the SUB- RECIPIENT's performance or nonperformance of the services or subject matter called for in this AGREEMENT.This indemnification obligation of the SUB-RECIPIENT shall not apply in the limited circumstance where the claim, damage, loss, or expense is caused by the sole negligence of COUNTY. This indemnification obligation of the SUB-RECIPIENT 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 the SUB-RECIPIENT hereby expressly waives any immunity afforded by such acts.The foregoing indemnification obligations of the SUB-RECIPIENT are a material inducement to COUNTY to enter into the AGREEMENT, are reflected in SUB-RECIPIENT's compensation, and have been mutually negotiated by the PARTIES. SUB-RECIPIENT's initials acknowledging indemnity terms: E. Workers' Compensation The SUB-RECIPIENT will provide Workers' Compensation Insurance Coverage for all of its employees involved in the performance of this AGREEMENT. F. Insurance and Bonding The SUB-RECIPIENT will carry sufficient insurance coverage to protect contract assets from loss due to theft, fraud and/or undue physical damage, and as a minimum will purchase a blanket fidelity bond covering all employees in an amount equal to cash advances from the COUNTY as detailed in "Exhibit B Insurance Requirements." The SUB-RECIPIENT shall furnish the COUNTY with properly executed certificate of insurance or a signed policy endorsement as "Exhibit C Certificate of Insurance" which shall clearly evidence all insurance required in this section prior to commencement of services.The certificates will, at a minimum, list limits of liability and coverage.The certificate will provide that the underlying insurance contract will not be cancelled or allowed to expire except on thirty (30) days prior written notice to the COUNTY. G. Funding Source Recognition The SUB-RECIPIENT will insure recognition of the roles of COMMERCE, the WA State CDBG program, and the COUNTY in providing services through this AGREEMENT. All activities, facilities and items utilized pursuant to this AGREEMENT will be prominently labeled as to funding source. In addition, the SUB- RECIPIENT will include a reference to the support provided herein in all publications made possible with funds made available under this AGREEMENT. H. Amendments The COUNTY or SUB-RECIPIENT may amend this AGREEMENT at any time provided that such amendments make specific reference to this AGREEMENT, and are executed in writing, signed by a duly authorized representative of each organization, and approved by the COUNTY's governing body. Such amendments will not invalidate this AGREEMENT, nor relieve or release the COUNTY or SUB-RECIPIENT from its obligations under this AGREEMENT. I. Suspension or Termination In accordance with 2 CFR 200.338-9,the COUNTY may suspend or terminate this AGREEMENT if the SUB- RECIPIENT materially fails to comply with any terms of this AGREEMENT, which include (but are not limited to) the following: 6 1. Failure to comply with any of the rules, regulations or provisions referred to herein, or such statues, regulations, executive orders, and HUD guidelines, policies or directives as may become applicable at any time; 2. Failure, for any reason, of the SUB-RECIPIENT to fulfill in a timely and proper manner its obligations under this AGREEMENT. 3. Ineffective of improper use of funds provided under this AGREEMENT; or 4. Submission by the SUB-RECIPIENT to the COUNTY of reports that are incorrect or incomplete in any material respect. In accordance with 2 CFR 200.339, this AGREEMENT may also be terminated by either the COUNTY or the SUB-RECIPIENT, in whole or in part, by setting forth the reasons for such termination, the effective date, and, in the case of partial termination,the portion to be terminated. However, if in the case of a partial termination, the COUNTY determines that the remaining portion of the award will not accomplish the purpose for which the award was made,the COUNTY may terminate the award in its entirety. 9. ADMINISTRATIVE REQUIREMENTS A. Financial Management 1. Accounting Standards The SUB-RECIPIENT agrees to comply with 2 CFR 200 and agrees to adhere to the accounting principles and procedures required therein, utilize adequate internal controls, and maintain necessary source documentation for all costs incurred. 2. Cost Principles The SUB-RECIPIENT will administer its program in conformance with 2 CFR 200.These principles will be applied for all costs incurred whether charged on a direct or indirect basis. 3. Duplication of Costs The SUB-RECIPIENT certifies that work to be performed under this AGREEMENT does not duplicate any work to be charged against any other contract, subcontract or other source. B. Documentation and Record Keeping 1. Records to Be Maintained The SUB-RECIPIENT will maintain all records required by the Federal regulations specified in 24 CFR 570.506 that are pertinent to the activities to be funded under this AGREEMENT and those records described in the CDBG Management Handbook. Such records will include but not be limited to: a. Records providing a full description of each activity undertaken; b. Records demonstrating that each activity undertaken meets one of the National Objectives of the CDBG program; c. Records required to determine the eligibility of activities; d. Records required to document the acquisition, improvement, use or disposition of real property acquired or improved with CDBG assistance; e. Records documenting compliance with the civil rights components of the CDBG program; f. Financial records as required by 24 CFR 570.502, and 2 CFR 200.333; g. Labor standards records required to document compliance with the Davis Bacon Act, the provisions of the Contract Work Hours and Safety Standards Act, and all other applicable Federal, State and Local laws and regulations applicable to CDBG-funded construction PROJECTS; and h. Other records necessary to document compliance with Subpart K of 24 CFR 570. 7 2. Access to Records and Retention The grantee, the Washington State Department of COMMERCE, and other authorized representatives of the state and federal governments shall have access to any books, documents, papers and records of the SUB-RECIPIENT that are directly pertinent to this AGREEMENT for the purposes of making audit, examination, excerpts and transcriptions. All such records and all other records pertinent to this AGREEMENT and work undertaken under this AGREEMENT will be retained by the SUB-RECIPIENT for a period of six years after final audit of the COUNTY's CDBG PROJECT, unless a longer period is required to resolve audit findings or litigation. In such cases,the COUNTY will request a longer period of record retention. 3. Audits and Inspections All SUB-RECIPIENT records with respect to any matters covered by this AGREEMENT will be made available to the COUNTY, COMMERCE, and duly authorized officials of the state and federal government, at any time during normal business hours, as often as deemed necessary, to audit, examine, and make excerpts or transcripts of all relevant data. Any deficiencies noted in audit reports must be fully cleared by the SUB-RECIPIENT within 30 days after receipt by the SUB-RECIPIENT. Failure of the SUB-RECIPIENT to comply with the above audit requirements will constitute a violation of this AGREEMENT and may result in the withholding of future payments. The SUB-RECIPIENT that expends$750,000 or more in a fiscal year in federal funds from all sources hereby agrees to have an annual agency audit conducted in accordance with current COUNTY policy concerning SUB-RECIPIENT audits and 2 CRF 200.501.The Catalog of Federal Domestic Assistance (CFDA) number is 14.228. C. Reporting 1. Program Income The SUB-RECIPIENT will report annually all program income (as defined at 24 CFR 570.500(a)) generated by activities carried out with CDBG funds made available under this AGREEMENT.The use of program income by the SUB-RECIPIENT will comply with the requirements set forth at 24 CFR 570.504. 2. Periodic Reports The SUB-RECIPIENT, at such times and in such forms as the COUNTY may require, will furnish the COUNTY such periodic reports as it may request pertaining to the work or services undertaken pursuant to this AGREEMENT,the costs and obligations incurred or to be incurred in connection therewith, and any other matters covered by this AGREEMENT. D. Use and Reversion of Assets The use and disposition of real property and equipment under this AGREEMENT will be in compliance with the requirements of 2 CFR 200.311 and 313, 24 CFR 570.502, 570.503, 570.504, as applicable,which include but are not limited to the following: 1. The SUB-RECIPIENT will transfer to the COUNTY any CDBG funds on hand and any accounts receivable attributable to the use of funds under this AGREEMENT at the time of expiration, cancellation, or termination. 2. Real property under the SUB-RECIPIENT's control that was acquired or improved, in whole or in part, with funds under this AGREEMENT in excess of$25,000 will be used to meet one of the CDBG National Objectives pursuant to 24 CFR 570.208 until ten (10)years after the contract between COMMERCE and the COUNTY is closed. If the SUB-RECIPIENT fails to use CDBG-assisted real property in a manner that meets a CDBG National Objective for this 10-year period of time,the SUB-RECIPIENT will pay the COUNTY an amount equal to the current fair market value of the property less any 8 portion of the value attributable to expenditures of non-CDBG funds for acquisition of, or improvement to, the property after the CDBG program's approval. Such payment will constitute program income to the COUNTY. The SUB-RECIPIENT may retain real property acquired or improved under this AGREEMENT after the expiration of the ten-year period. 3. In cases in which equipment acquired, in whole or in part, with funds under this AGREEMENT is sold, the proceeds will be program income. Equipment not needed by the SUB-RECIPIENT for activities under this AGREEMENT will be (a)transferred to the COUNTY for CDBG-eligible activities as approved by the CDBG program or(b) retained after compensating the COUNTY. 10. PERSONNEL AND PARTICIPANT CONDITIONS A. Civil Rights Title VI of the Civil Rights Act of 1964: Under Title VI of the Civil Rights Act of 1964, no person will, on the grounds of race, color, creed, religion, sex or national origin, be excluded from participation in, be denied the benefits of, or be subjected to discrimination under any program or activity receiving federal financial assistance. Section 109 of the Housing and Community Development Act of 1974: No person in the United States will on the grounds of race, color, creed, religion, sex or national origin be excluded from participation in, be denied benefits of, or be subjected to discrimination under any program or activity funded in whole or in part with funds made available under this title. Age Discrimination Act of 1975, as Amended No person will be excluded from participation, denied program benefits, or subjected to discrimination on the basis of age under any program or activity receiving federal funding assistance. (42 U.S.C. 610 et. seq.) Section 504 of the Rehabilitation Act of 1973, as Amended No otherwise qualified individual will, solely by reason or his or her disability, be excluded from participation (including employment), denied program benefits, or subjected to discrimination under any program or activity receiving Federal funds. (29 U.S.C. 794) Public Law 101-336.Americans with Disabilities Act of 1990 Subject to the provisions of this title, no qualified individual with a disability will, by reason of such disability, be excluded from participation in or be denied the benefits of the services, programs, or activities of a public entity, or be subjected to discrimination by any such entity. B. Section 3 of the Housing and Community Development Act of 1968 Compliance in the Provision of Training, Employment, and Business Opportunities: I. The work to be performed under this AGREEMENT is on a PROJECT assisted under a program providing direct federal financial assistance from HUD and is subject to the requirements of Section 3 of the Housing and Urban Development Act of 1968, as amended, 12 U.S.C. 1701u. Section 3 requires that to the greatest extent feasible opportunities for training and employment be given lower- income residents of the PROJECT area; and contracts for work in connection with the PROJECT be awarded to business concerns which are located in, or owned in substantial part, by persons residing in the area of the PROJECT. 2. The PARTIES to this contract will comply with the provisions of said Section 3 and the regulations set forth in 24 CFR 135, and all applicable rules and orders of HUD and COMMERCE issued thereunder prior to the execution of this contract.The PARTIES to this contract certify and agree that they are under no contractual or other disability that would prevent them from complying with these provisions. 9 3. The SUB-RECIPIENT will send to each labor organization or representative of workers with which he has a collective bargaining AGREEMENT or other contract or understanding, if any, a notice advising the said labor organization or workers' representative of his commitments under this Section 3 clause and will post copies of the notice in conspicuous places available to employees and applicants for employment or training. 4. The SUB-RECIPIENT will include this Section 3 clause in every subcontract for work in connection with the PROJECT and will, at the direction of the applicant, or recipient of federal financial assistance, take appropriate action pursuant to the subcontract upon a finding that the subcontractor is in violation of regulations issued by the Secretary of HUD, 24 CFR 135.The SUB-RECIPIENT will not subcontract with any subcontractor where it has notice or knowledge that the latter has been found in violation of regulations under 24 CFR 135 and will not let any subcontract, unless the subcontractor has first provided it with a preliminary statement of ability to comply with the requirements of these regulations. 5. Compliance with the provisions of Section 3,the regulations set forth in 24 CFR 135, and all applicable rules and orders of HUD and COMMERCE issued hereunder prior to the execution of the contract, will be a condition of the federal financial assistance provided to the PROJECT, binding upon, the applicant or recipient for such assistance, its successors, and assigns. Failure to fulfill these requirements will subject the applicant, or recipient, its consultants and subcontractors, its successors and assigned to those sanctions specified by the grant or loan AGREEMENT or contract through which federal assistance is provided, and to such sanctions as are specified by 24 CFR 135. C. Conduct 1. Assignability The SUB-RECIPIENT will not assign or transfer any interest in this AGREEMENT without the prior written consent of the COUNTY thereto; provided, however, that claims for money due or to become due to the SUB-RECIPIENT from the COUNTY under this contract may be assigned to a bank, trust company, or other financial institution without such approval. Notice of any such assignment or transfer will be furnished promptly to the COUNTY and COMMERCE. 2. Conflict of Interest No member of the COUNTY's governing body and no other public official of such locality, who exercises any functions or responsibilities in connection with the planning or carrying out of the PROJECT, will have any personal financial interest, direct or indirect, in this AGREEMENT; and the SUB-RECIPIENT will take appropriate steps to assure compliance. The SUB-RECIPIENT agrees to abide by the provisions of 2 CFR 200.318 and 24 CFR 570.611, which includes maintaining a written code or standards of conduct that will govern the performance of its officers, employees or agents engaged in the award and administration of contracts supported by Federal funds. The SUB-RECIPIENT covenants that its employees have no interest and will not acquire interest, direct or indirect, in the study area or any parcels therein or any other interest which would conflict in any manner or degree with the performance of services hereunder. The SUB-RECIPIENT further covenants that in the performance of this AGREEMENT, no person having such interest will be employed. 3. Certification Regarding Debarment, Suspension, Ineligibility and Voluntary Exclusion - Lower Tier Covered Transactions a. The lower tier contractor certifies, by signing this contract that neither it nor its principals is presently debarred, suspended, proposed for debarment, declared ineligible, or voluntarily excluded from participation in this transaction by any Federal department or agency. b. Where the lower tier contractor is unable to certify to any of the statements in this contract, such contractor will attach an explanation to this contract. 10 D. Copyright If this AGREEMENT results in any copyrightable material or inventions, the COUNTY and/or COMMERCE reserves the right to royalty-free, non-exclusive and irrevocable license to reproduce, publish or otherwise use and to authorize others to use,the work or materials for governmental purposes. E. Religious Activities The SUB-RECIPIENT agrees that funds provided under this AGREEMENT will not be utilized for inherently religious activities prohibited by 24 CFR 570.200(j), such as worship, religious instruction, or prose lytization. 11. SEVERABILITY If any provision of this AGREEMENT is held invalid, the remainder of this AGREEMENT will not be affected thereby and all other parts of this AGREEMENT will nevertheless be in full force and effect. 12. PERFORMANCE WAIVER The COUNTY's failure to act with respect to a breach by the SUB-RECIPIENT does not waive its right to act with respect to subsequent or similar breaches. The failure of the COUNTY to exercise or enforce any right or provision will not constitute a waiver of such right or provision. 13. ENTIRE AGREEMENT This AGREEMENT constitutes the entire AGREEMENT between the COUNTY and the SUB-RECIPIENT for the use of funds received under this AGREEMENT and it supersedes all prior communications and proposals, whether electronic, oral, or written between the COUNTY and the SUB-RECIPIENT with respect to this AGREEMENT. The attachments to this AGREEMENT are identified as follows: Exhibit A Scope-of-Work and Budget Exhibit B Insurance Requirements Exhibit C Certificate of Insurance Exhibit D Sample Forms and Instructions IN WITNESS WHEREOF,the COUNTY and the SUB-RECIPIENT have executed this AGREEMENT as of the date and year last written below. BOARD OF COUNTY COMMISSIONERS COMMUNITY ACTION COUNCIL OF LEWIS, MASON COUNTY,WASHINGTON MASON and THURSTON COUNTIES Randy Neatherlin, Chair John Walsh, CEO Date: Date: Approved As To Form: Tim Whitehead, Chief DPA 11 EXHIBIT A SCOPE-OF -WORK The Community Action Council of Lewis, Mason and Thurston Counties (CAC) will be responsible for completing the tasks and activities below as well as others as detailed throughout this AGREEMENT, Washington Department of Commerce's (Commerce) Community Development Block Grant (CDBG) Management Handbook and other guides as required to provide referral and direct services in compliance with the CDBG program and Mason County's (COUNTY) policies and procedures. It is the CAC's responsibility to review, understand, implement and adhere to all requirements as this Scope-of-Work is a summary, not an exhaustive list. SUB-RECIPIENT will: 1. Conduct participant eligibility screening for Lewis and Mason county residents to determine program eligibility in compliance with CDBG requirements. 2. Provide referrals for a minimum of 6,000 individuals in Mason and Lewis counties of which a minimum of 3,060 must meet current HUD's low-middle income qualifications. 3. Provide Children's Justice and Advocacy Center direct services and referrals for a minimum of 300 eligible residents of Mason and Lewis counties. Services include; resource referrals, advocacy, support case coordination, child forensic interviews, technical assistance for victims of child abuse, and consultation and case support for victims of other crimes. 4. Collect, track and report PROJECT data in a manner consistent with the requirements detailed in this AGREEMENT, COMMERCE's CDBG Management Handbook and other guides as applicable. SUB- RECIPIENT must ensure that the services provided to eligible individuals under this PROJECT are not reported to any other funding entities for the purpose of meeting contractual obligations. 3. Voucher Requests and Reports.- A. eports:A. Formulate and submit a Washington State Voucher Distribution request (form A19) to COUNTY on a quarterly basis due September 15, January 15, April 15th and July 15. Submission to include one digital copy in WORD e-mailed to Jennifer Beierle and one copy that has been printed, signed and either scanned and e-mailed or sent by U. S. mail or hand delivery. Signed and certified timesheets must be maintained by the SUB-RECIPIENT. County will be responsible for submitting completed requests to COMMERCE. See "Exhibit E Sample Forms and Instructions." B. Formulate and submit a CDBG Quarterly Beneficiary Reporting Form and a CDBG Project Status Report to COUNTY on a quarterly basis due September 15, January 15, April 15th and July 15. A digital or hard copy is acceptable e-mailed or delivered to Jennifer Beierle. County will be responsible for submitting completed forms and reports to COMMERCE. See Exhibit E Sample Forms and Instructions Jennifer Beierle Mason County 411 N. 5th Street Shelton, WA 98584 jb(cD-co.mason.wa.us 4. Participate in PROJECT meetings, including a grant start-up meeting, as scheduled by COUNTY. 5. Participate and support on-site compliance reviews conducted by COUNTY per CDBG requirements. 6. Assist COUNTY with all aspects of program administration and requirements including grant close-out process as requested. 7. Assist with preparation of 2019 Public Services Grant application as requested by COUNTY. 12 EXHIBIT B Budget 1. The approved project budget for the SUB-RECIPIENT of$101,237 allows for reimbursement requests for staff salaries and benefits. The SUB-RECIPIENT cannot use Community Development Block Grant (CDBG) funds from this AGREEMENT for travel, equipment, contracted services, materials/supplies, other and/or indirect expenses. 2. Staff charging time to the CDBG grant must record actual hours worked on a timesheet. Timesheets are to be signed, certifying that the hours charged are for time spent providing CDBG grant-related services. 3. Signed and certified timesheets must be maintained by the SUB-RECIPIENT. 4. Financial policies, practices and processes must adhere to the requirements detailed in this AGREEMENT, COMMERCE's CDBG Management Handbook and other guides as well as applicable Mason County's (COUNTY) policies and procedures. 5. SUB-RECIPIENT will provide COUNTY with a copy of the annual A-133 compliant audit within nine months of the end of CAC's fiscal year. 13 EXHIBIT C INSURANCE REQUIREMENTS 1. MINIMUM Insurance Requirements: A. Commercial General Liability Insurance using Insurance Services Office "Commercial General Liability" policy form CG 00 01, with an edition date prior to 2004, or the exact equivalent. Coverage for an additional insured shall not be limited to its vicarious liability. Defense costs must be paid in addition to limits. Limits shall be no less than $1,000,000 per occurrence for all covered losses and no less than $2,000,000 general aggregate. B. Workers' Compensation on a state-approved policy form providing statutory benefits as required by law with employer's liability limits no less than $1,000,000 per accident for all covered losses. C. Business Auto Coverage on ISO Business Auto Coverage form CA 00 01 including owned, non-owned and hired autos, or the exact equivalent. Limits shall be no less than $1,000,000 per accident, combined single limit. If SUB-RECIPIENT owns no vehicles, this requirement may be satisfied by a non-owned auto endorsement to the general liability policy described above. If SUB-RECIPIENT or SUB-RECIPIENT 's employees will use personal autos in any way on this project, SUB-RECIPIENT shall obtain evidence of personal auto liability coverage for each such person. D. Excess or Umbrella Liability Insurance (Over Primary) if used to meet limit requirements, shall provide coverage at least as broad as specified for the underlying coverages. Such policy or policies shall include as insureds those covered by the underlying policies, including additional insureds. Coverage shall be "pay on behalf", with defense costs payable in addition to policy limits. There shall be no cross liability exclusion precluding coverage for claims or suits by one insured against another. Coverage shall be applicable to COUNTY for injury to employees of SUB-RECIPIENT, subcontractors or others involved in the Work. The scope of coverage provided is subject to approval of COUNTY following receipt of proof of insurance as required herein. 2. Certificate of Insurance: A certificate of insurance is attached hereto as "Exhibit D Certificate of Insurance." 3. Basic Stipulations: A. SUB-RECIPIENT agrees to endorse third party liability coverage required herein to include as additional insureds COUNTY, its officials, employees and agents, using ISO endorsement CG 20 10 with an edition date prior to 2004. [If this is a construction contract, ISO endorsement 20 37 also is required.] SUB- RECIPIENT also agrees to require all SUB-RECIPIENT s, subcontractors, and anyone else involved in this Contract on behalf of the SUB-RECIPIENT (hereinafter"indemnifying PARTIES") to comply with these provisions. B. SUB-RECIPIENT agrees to waive rights of recovery against COUNTY regardless of the applicability of any insurance proceeds, and to require all indemnifying PARTIES to do likewise. C. All insurance coverage maintained or procured by SUB-RECIPIENT or required of others by SUB- RECIPIENT pursuant to this Contract shall be endorsed to delete the subrogation condition as to COUNTY, or must specifically allow the named insured to waive subrogation prior to a loss. D. All coverage types and limits required are subject to approval, modification and additional requirements by COUNTY. SUB-RECIPIENT shall not make any reductions in scope or limits of coverage that may affect COUNTY's protection without COUNTY's prior written consent. E. Proof of compliance with these insurance requirements, consisting of endorsements and certificates of insurance shall be delivered to COUNTY prior to the execution of this Contract. If such proof of insurance is not delivered as required, or if such insurance is canceled at any time and no replacement coverage is provided, COUNTY has the right, but not the duty, to obtain any insurance it deems necessary to protect its interests. Any premium so paid by COUNTY shall be charged to and promptly paid by SUB-RECIPIENT or deducted from sums due SUB-RECIPIENT. 14 F. It is acknowledged by the PARTIES of this Contract that all insurance coverage required to be provided by SUB-RECIPIENT or indemnifying party, is intended to apply first and on a primary non-contributing basis in relation to any other insurance or self-insurance available to COUNTY. G. SUB-RECIPIENT agrees not to self-insure or to use any self-insured retentions on any portion of the insurance required herein and further agrees that it will not allow any indemnifying party to self- insure its obligations to COUNTY. If SUB-RECIPIENT 's existing coverage includes a self-insured retention, the self- insured retention must be declared to the COUNTY. The COUNTY may review options with SUB- RECIPIENT, which may include reduction or elimination of the self-insured retention, substitution of other coverage, or other solutions. H. SUB-RECIPIENT will renew the required coverage annually as long as COUNTY, or its employees or agents face an exposure from operations of any type pursuant to this Contract. This obligation applies whether or not the Contract is canceled or terminated for any reason. Termination of this obligation is not effective until COUNTY executes a written statement to that effect. 15 EXHIBIT D CERTIFICATE OF INSURANCE 16 DATE(MM/DD/YYYY) A�p® CERTIFICATE OF LIABILITY INSURANCE 1/8/2018 THIS CERTIFICATE IS ISSUED AS A MATTER OF INFORMATION ONLY AND CONFERS NO RIGHTS UPON THE CERTIFICATE HOLDER. THIS CERTIFICATE DOES NOT AFFIRMATIVELY OR NEGATIVELY AMEND, EXTEND OR ALTER THE COVERAGE AFFORDED BY THE POLICIES BELOW. THIS CERTIFICATE OF INSURANCE DOES NOT CONSTITUTE A CONTRACT BETWEEN THE ISSUING INSURER(S), AUTHORIZED REPRESENTATIVE OR PRODUCER,AND THE CERTIFICATE HOLDER. IMPORTANT: If the certificate holder is an ADDITIONAL INSURED,the policy(ies)must have ADDITIONAL INSURED provisions or be endorsed. If SUBROGATION IS WAIVED, subject to the terms and conditions of the policy, certain policies may require an endorsement. A statement on this certificate does not confer rights to the certificate holder in lieu of such endorsement(s). PRODUCER CONTACT (OR) Heffernan Insurance Brokers FAX PHONE 5100 SW Macadam, Suite 440 c N E •503-226-1320 ac No):503-226-1478 Portland OR 97239 ADDRESS: INSURERS AFFORDING COVERAGE NAIC# INsuRERA:Philadelphia Indemnity Insurance Company 18058 INSURED COMMACT-08 INSURERS: Community Action Council of Lewis, Mason &Thurston Counties INSURERC: 3020 Willamette Dr. NE INSURER D: Lacey WA 98516 INSURER E: INSURER F: COVERAGES CERTIFICATE NUMBER:1662793430 REVISION NUMBER: THIS IS TO CERTIFY THAT THE POLICIES OF INSURANCE LISTED BELOW HAVE BEEN ISSUED TO THE INSURED NAMED ABOVE FOR THE POLICY PERIOD INDICATED. NOTWITHSTANDING ANY REQUIREMENT,TERM OR CONDITION OF ANY CONTRACT OR OTHER DOCUMENT WITH RESPECT TO WHICH THIS CERTIFICATE MAY BE ISSUED OR MAY PERTAIN, THE INSURANCE AFFORDED BY THE POLICIES DESCRIBED HEREIN IS SUBJECT TO ALL THE TERMS, EXCLUSIONS AND CONDITIONS OF SUCH POLICIES.LIMITS SHOWN MAY HAVE BEEN REDUCED BY PAID CLAIMS. INSR ADDLTYPE OF INSURANCE 1UM SUER POLICY NUMBER MM/DPOLIDY EFF MM/DPOLID EXP LTR LIMITS A X COMMERCIAL GENERAL LIABILITY Y Y PHPK1720952 10/1/2017 10/12018 EACH OCCURRENCE $1,000,000 DAMAGE TO RENTED- CLAIMS-MADE r_x1 OCCUR PREMISES Ea occurrence $1,000,000 MED EXP(Any one person) $5,000 PERSONAL&ADV INJURY $1,000,000 GEN'LAGGREGATE LIMIT APPLIES PER: GENERAL AGGREGATE $2,000,000 JECT POLICY PRO F—]LOCPRODUCTS-COMP/OP AGG $2,000,000 X OTHER: $ A AUTOMOBILE LIABILITY PHPK1720952 10/12017 10/12018 CEa accidentSOMBINED INGLE LIMIT $1,000,000 000 IxANY AUTO BODILY INJURY(Per person) $ OWNED SCHEDULED BODILY INJURY(Per accident) $ AUTOS ONLY AUTOS HIRED X NON-OWNED PROPERTY DAMAGE $ AUTOS ONLY AUTOS ONLY Per accident A UMBRELLA LIAR X OCCUR PHUB602795 10/12017 10/12018 EACH OCCURRENCE $1,000,000 X EXCESS LIAB CLAIMS-MADE AGGREGATE $1,000,000 DED I X I RETENTION$lo am $ WORKERS COMPENSATION PER OTH- AND EMPLOYERS'LIABILITY Y/N STATUTE ER ANYPROPRIETOR/PARTNER/EXECUTIVE ❑ N/A E.L.EACH ACCIDENT $ OFFICER/MEMBER EXCLUDED? (Mandatory in NH) E.L.DISEASE-EA EMPLOYEE $ If yes,describe under DESCRIPTION OF OPERATIONS below E.L.DISEASE-POLICY LIMIT $ A Professional Liability PHPK1720952 10/12017 10/12018 Aggregate $2,000,000 Ea.Professional incd $1,000,000 Come Umit$250,000 Ded.$5,000 DESCRIPTION OF OPERATIONS/LOCATIONS I VEHICLES (ACORD 101,Additional Remarks Schedule,may be attached If more space is required) Re:As per contract or agreement on file with insured.Mason County,its officials,employees and agents are included as an additional insured on General Liability policy per the attached endorsement,if required.Waiver of Subrogation is included on General Liability policy per the attached endorsement,if required. CERTIFICATE HOLDER CANCELLATION SHOULD ANY OF THE ABOVE DESCRIBED POLICIES BE CANCELLED BEFORE THE EXPIRATION DATE THEREOF, NOTICE WILL BE DELIVERED IN Mason County ACCORDANCE WITH THE POLICY PROVISIONS. attn:Todd Parker 411 N. 5th Street AUTHORIZED REPRESENTATIVE Shelton,WA 98584 ©1988-2015 ACORD CORPORATION. All rights reserved. ACORD 25(2016/03) The ACORD name and logo are registered marks of ACORD EXHIBIT E SAMPLE FORMS AND INSTRUCTIONS 17 MASON COUNTY BRIEFING ITEM SUMMARY FORM TO: BOARD OF MASON COUNTY COMMISSIONERS FROM: Kristopher Nelsen, PAC Manager DEPARTMENT: Community Services EXT: 359 BRIEFING DATE: July 9t' 2018 PREVIOUS BRIEFING DATES: If this is a follow-up briefing, please provide only new information ITEM: Electronic Signature use and acceptance for county business. EXECUTIVE SUMMARY: (If applicable, please include available options and potential solutions): In preparation to increase county efficiencies for day to day operations, RCW 19.360.020, allows local agencies to send and accept electronic submissions and electronic signature, except as otherwise provided by law. However, to use electronic signatures and submissions, local agencies must establish a method and process for electronic submissions and the use of electronic signatures by ordinance, resolution, or policy. With the amount of time necessary to establish a cohesive countywide policy and procedure for electronic signatures, it may be in the best interest of the county to establish an interim resolution to establish the initial basic intent and approval to accept and use digital signatures while conducting county business. In addition, perhaps establishing appointed team of different county authorizing officials to secure a countywide policy within a reasonable time frame (strategic plan). BUDGET IMPACTS: Potential consideration for countywide impact may include workstation or software upgrades for other county offices and/or departments. RECOMMENDED OR REQUESTED ACTION: Consider interim resolution to accept establish reasonable acceptance criteria, to allow electronic signatures to be accepted as intent to sign documents received and issued within the county's authority. ATTACHMENTS: Staff report, draft resolution, sample affirmative statement for digital submissions. (1, MASON COUNTY COMMUNITY SERVICES Building,Planning,Environmental Health,Community Health Situation: From: Kristopher Nelsen,Permit Assistance Center Manager Date: Monday,July 02,2018 Subject: County acceptance and issuance with electronic signatures requiring an adopted policy, resolution,or ordinance under local authority under RCW 19.34 and RCW 19.360. Background: RCW 19.360.020, as amended by SHB 2427,allows local agencies to send and accept electronic submissions and electronic signatures,except as otherwise provided by law.However,to use electronic signatures and submissions,local agencies must establish a method and process for electronic submissions and the use of electronic signatures by ordinance,resolution,or policy. One of the best reference documents concerning this subject comes from Washington office of the Chief Information Officer(OCIO),titled Electronic Signature Guidelines.John Carpita also acknowledged this subject in 2 posting for MRSC back in 2016.Electronic Document Transmittals and Options for Electronic Signatures and Electronic Signatures Submissions and Bids for Local Governments. In general,there are many digital auditing and tracking process available for local agencies to use and operate within adequate workstation capacity and software limitations.Primarily considerations on electronic signatures should include its use,need, and intent.For any questionable application,a clarity statement should be acknowledged and accepted by the signer prior to an electronic signature being applied. In a manner to be transparent and safeguard contractual documentation for acceptance from,or issuance of conducting business such as; contracts,forms,permits,or licenses,within the official capacity of a county department's authority designated by a department head or elected official,shall acknowledge electronic signatures as reasonable intent to sign record(s). This will include issuance or submission of legally binding document(s)upon which a signature is necessary to authorize,or affirm,agreement under the official capacity of a county official,authorized representative, or delegated designee for confirmation of;federal, state, or local code and compliance authority. Assessment: The state legislature has defined the use of different kinds of electronic signature types including stamping documents digitally for those with state professional licenses, such as, land surveyors and engineers.Per the state board of registration's interpretative guideline, "it is accepted practice for Page 1 of 2 engineering, land surveying and on-site wastewater design documents to be prepared, stored and transmitted in electronic format."Currently,Mason County does not have an established policy or procedure nor confirmed Resolution or Ordinance in place to accept or.issue, signatures electronically.As this has become common practice in today's business operations to work in a paperless environment,it is time for the county to establish electronic signature practices and standards. For clarity and context,it may be in the best interest of the county to implement the Electronic Signature Guidelines from the state's office of the chief information officer. An Electronic Signature is defined under RCW 19.360.030(2)(AS)... means an electronic sound, symbol, or process attached to or logically associated with a contract or other record and executed or adopted by a person with the intent to sign the record. In general,in lieu of a physically inked signature,an electronic signature or signed confirmation may be made by but not be limited to;a simple check box with a secondary confirmation notice, created using a computer mouse or digital pen,be a video recording, or require text in a designated space. A Digital Signature is defined under RCW 19.34.20(11)(AS)... means an electronic signature that is a transformation of a message using an asymmetric cryptosystem such that a person having the initial message and the signer's public key can accurately determine: (a) Whether the transformation was created using the private key that corresponds to the signer's public key; and (b) Whether the initial message has been altered since the transformation was made. Where as in digital signature may appear to be more stringent,it is simply acknowledging that additional security measures are considered when using an electronic signature. Where if an electronic signature is to be used,the signee would be given an affirmatively to indicate assent to the document being signed (e.g. using an"I accept"or"I agree"check box).This could be but is not limited to; confirming original submittals acknowledge intent to use an electronic signature to proceed, and that any authorization using an electronic signature is locked from manipulation or document editing.In either case,the use of electronic or digital signatures is not limited to one's intent to apply it in place of physically inked signature and reasonably should be accepted as such. From a workflow process,additional considerations may require the need to upgrade software that allows for layer editing documents.Depending on the nature of an electronic signature's use, scanned images may be used and locked, either on a Word document,PDF,or other preestablished digital template and/or platform.However,the need to purchase new or upgrade existing software to edit documents may also be necessary to work in specific division or departments of the county,which may include; Adobe pro, Bluebeam Revu,Auto-CAD,or another program. Recommendation: Interim adoption of an ordinance to establish reasonable acceptance criteria,to allow electronic signatures to be accepted as intent to sign documents received and issued within the county's authority. Receive Commissioner support and financial clarity on the work performed to establish a countywide Electronic Signature policy using standards from OCIO's Electronic Signature Guidelines,with a parallel technology upgrade/update plan,by the year 2020. Page 2 of 2 BOARD OF COUNTY COMMISSIONRS MASON COUNY STATE OF WASHINGTON RESOLUTION NO. TO AUTHORIZE THE USE AND ACCEPTANCE OF ELECTRONIC SIGNATURES WHEREAS, Chapter 19.34 RCW,the Washington electronic authentication act, states in RCW 19.34.010(4)that electronic signatures may be used for"official public business to provide reasonable assurance of the integrity, authenticity, and nonrepudiation of an electronic communication;" and WHEREAS, Chapter 19.360 RCW defines local agencies intent, use and acceptance of electronic signatures and records, and WHEREAS,the need to pursue modern methods of serving our citizens while preserving the public's right to access, and judiciously using scarce county resources to achieve maximum benefit; and WHEREAS, in the absence of establish county standards, policies,or guidelines, previously acknowledge electronic signatures, and WHEREAS, such standards, policies, or guidelines must consider reasonable access by and ability of persons to participate in governmental affairs or governmental transactions and be able to rely on transactions that are conducted electronically with the county; and WHEREAS,to provide a single point of access,the county must establish its website to maintain or link to the agency rules and policies established pursuant to RCW 19.360; and WHEREAS, a digital signature underthe Washington electronic authentication act is as legal as a written signature if the electronic signature meets adopted county standards, policies, or guidelines; and WHEREAS, passwords used to protect an electronic signature, is the personal property of the user and is exempt from public inspection and copying under Chapter 42.56 RCW; and WHEREAS, a digital message is as valid, enforceable and effective as if it had been written on paper if it satisfies the requirements in RCW 19.34.320; and WHEREAS, per the state board of registration, it is accepted practice for engineering, land surveying and on-site wastewater design documents to be prepared, stored and transmitted in electronic format.; and WHEREAS, an electronically signed document is an original of that document. NOW,THEREFORE, BE IT RESOLVED,the County Commissioners,after due deliberation and in the best interest of the public, does hereby authorize County employees who are designated by the Department Head or Elected Official to accept electronic signatures or may electronically sign documents within their designated authority, providing that: 1. The applicant and/or employee does not provide information they know to be untrue; and 2. The applicant and/or employee is authorized to sign such documents; and 3. The applicant and/or employee has not disclosed their password to any other individual; and 4. The appearance of the electronic signature contains the following: a. For applicants; i. Applicant full first and last legal name ii. Acknowledgement of digital signature in-lieu-of physical signature (e.g. using an "I accept" or"I agree" check box with an affirmation statement),and iii. The date and time of the electronic signature (maybe waived if using self- auditing software) b. For employees; i. Employee's first and last name typed. ii. Title,with county identification number(if applicable,designated authority or department) iii. The date and time of the electronic signature (maybe waived if using self- auditing software) ADOPTED this day of MONTH YYYY. BOARD OF COUNTY COMMISSIONERS MASON COUNTY,WASHINGTON ATTEST: Randy Neatherlin, Chair Melissa Drewry,Clerk of the Board APPROVED AS TO FORM: Terri M. Drexler, Commissioner Tim Whitehead, Chief DPA Kevin Shutty,Commissioner General E-submittal statement: (Sample to be adopted by the commission) Electronic documents submitted to Mason County for plan review and permit issuance must be provided in a format that does not prevent the County from making code comments on the documents during review or from making the documents ready for permit issuance. Documents submitted in any manner that prevents the County from completing the review and permit issuance process, including but not limited to submitting documents that are locked, may result in additional review time, permitting delays, and/or cancelation of the permit application if the problem is not resolved by the applicant in a timely manner, in accordance with Ordinance 2018-*** Please refer to chapter 18.43 RCW, chapter 18.210 RCW, chapter 196-23 WAC and chapter 196-33 WAC for Washington State laws governing electronic documents.An interpretative guideline from the Board of Registration for Professional Engineers and Land Surveyors can be found at: http://www dol wa gov/business/engineerslandsurveyors/docs/eDocsinterpretiveGuideline.pdf.These laws and requirements are subject to change and the submitting parties are responsible for keeping apprised of any such changes. Please acknowledge that you understand these requirements and have verified the electronic documents being submitted meet Mason County's submittal requirements by checking the box below. if you have questions, contact permit center at 360-427-9670 ext.362.❑(*If you accept, check box.) *(A typed legal first and last name will be accepted by Xthe county as an electronic signature and will be acknowledged as intent to sign as the legal owner/authorized agent for the attached project's submission to be binding between all parties. Any omission, misleading, or misrepresented information within the attached submitted documents will cause this application to become null and void upon observation by an authorized county official.) MASON COUNTY BRIEFING ITEM SUMMARY FORM TO: BOARD OF MASON COUNTY COMMISSIONERS FROM: Dave Windom/ Lydia Buchheit DEPARTMENT: Community Services EXT: 260 BRIEFING DATE: 7/9/10 PREVIOUS BRIEFING DATES: If this is a follow-up briefing, lease provide only new information ITEM: Discussion around a couple of Treatment Sales Tax Fund updates. Governance Board, Department invoicing, final contract updates. EXECUTIVE SUMMARY: (If applicable, please include available options and potential solutions): BUDGET IMPACTS: None RECOMMENDED OR REQUESTED ACTION: For update purposes and discussion only ATTACHMENTS: None Briefing Summary 7/3/2018 PUBLIC WORKS MONDAY JULY 9, 2018— BRIEFING ITEMS FROM PUBLIC WORKS (For Commissioners Meeting July 17,2018) Items for this meeting are due to Diane Zoren on Wednesday, July 11, 2018 4.0 CORRESPONDENCE AND ORGANIZATIONAL BUSINESS • News Release: Eells Hill Transfer Station'/2 day closure Monday July 16, 2018, 8:00am- 12:00pm. (For the July 10,2018 meeting) 8.0 APPROVAL OF ACTION ITEM 9.0 OTHER BUSINESS (None) 10.0 PUBLIC HEARINGS AND ITEMS SET FOR A CERTAIN TIME (None) DISCUSSION ITEMS: • O&M/ER&R Administrator position Attendees: Commissioners: Public Works: Other Dept.: Press: Public: _Randy Neatherlin _Jerry Hauth List below: List below List Below: Kevin Shutty John Huestis Terri Drexler _gam Stepp Others-List below: NEWS RELEASE July 10,2018 MASON COUNTY COMMISSIONERS 411 NORTH 5TH STREET SHELTON,WA 98584 TO: KMAS, KRXY, SHELTON-MASON COUNTY JOURNAL, THE OLYMPIAN, SHELTON CHAMBER OF COMMERCE,NORTH MASON CHAMBER OF COMMERCE, CITY OF SHELTON,ECONOMIC DEVELOPMENT COUNCIL, THE SUN, MASON TRANSIT RE: Eells Hill Transfer Station '/2-Day Closure Mason County Public Works is advising citizens of Mason County that the Eells Hill Transfer Station is scheduled to be closed Monday,July 16, 2018 from 8:00am to 12:00pm. This is another closure for the Eells Hill Transfer Station Improvement Project. These closures will continue throughout the summer months and scheduled on various Saturdays and some half day closures on Mondays.Notifications of these scheduled closures will continue to be posted on the County web and facebook pages. We appreciate your patience and understanding during the construction of this project. Notification will be posted onsite, as well as the county facebook page and solid waste webpage. Residents may consider using one of the other transfer stations during the project or closures. Visit the County webpage to see hours of operation for Belfair,Union and Hoodsport Drop Boxes or contact the Public Works U&W Management Division at(360)427-9670,Belfair (360)275-4467,or Elma(360)482-5269,Ext.199. BOARD OF MASON COUNTY COMMISSIONERS Randy Neatherlin Terri Drexler Kevin Shutty Chair Vice Chair Commissioner Attachment B MASON COUNTY BRIEFING ITEM SUMMARY FORM TO: BOARD OF MASON COUNTY COMMISSIONERS FROM: Jim Madsen DEPARTMENT: Juvenile Court Services EXT: 332 BRIEFING DATE: 7/9/18 PREVIOUS BRIEFING DATES: If this is a follow-up briefing, please provide only new information ITEM: Converting Juvenile Court Program Support Specialist to a Juvenile Probation Counselor. EXECUTIVE SUMMARY: (If applicable, please include available options and potential solutions): Juvenile Court Services currently has a vacant Juvenile Court Program Support Specialist position. Historically this position has been a support position to the Juvenile Probation Counselors and funded at the Probation Counselor Assistant level. Over the last several years with the increasing workload of our case carrying staff (Probation Counselors) our department is in need of converting this position to a full Probation Counselor level to allow us to assign cases to this staff person. BUDGET IMPACTS: By not filling the vacant position for at least one month it results in a cost savings for the remainder of the 2018 budget. For future fiscal years there will be an increase, but there are many factors that impact what the total increase would be. RECOMMENDED OR REQUESTED ACTION: Allow Juvenile Court Services to convert the Juvenile Court Program Support Specialist position to a Juvenile Probation Counselor. ATTACHMENTS: N/A Briefing Summary 7/3/2018