Olympia council authorizes interlocal agreement with Thurston County for judicial services

The Olympia City Council voted to approve a resolution authorizing an interlocal agreement with Thurston County for delivery of judicial services, city staff announced after a detailed presentation on the options the city considered.

Debbie Sullivan, assistant city manager, told the council the decision responded to long-term budget shortfalls and facility constraints at the Lee Creighton Justice Center. "The purpose of the agreement is to provide all court services for all criminal cases and infractions requiring a hearing as well as progressive alternatives and supervised probation," Sullivan said, summarizing the scope of services the county would provide under the agreement.

The agreement covers a transition period from July 1, 2025, through Dec. 31, 2026; the city would provide six months' notice to the Administrative Office of the Courts and intends to transition judicial services on or around Feb. 1, 2026, if county approval and notifications proceed as planned. Staff said the county will complete a comprehensive rate study prior to the agreement’s expiration so the parties can set terms for any future extension or renegotiation.

Sullivan described the context that led to the recommendation: the municipal facility at 900 Plum Street dates to 1966 and a 2019 assessment identified more than $12 million in deficiencies; a 2022 master planning estimate put a replacement cost at $89–94 million (including an estimated $32 million to replace the jail). The city faces budget pressure, Sullivan said, noting an $11.8 million gap in 2025 that led to $7.7 million in reductions and the use of roughly $4.1 million in fund balance.

Under the interlocal, Olympia would retain prosecution, victim assistance and public defense coordination while judicial operations would be handled by Thurston County. The agreement specifies services such as case processing, file management and supervised-probation programs, and explicitly mentions veterans court, mental-health court and other therapeutic or community court options. The county will provide an annual report on enrollment in specialty programs. Sullivan said staffing assumptions for the transition are based on 17 full-time equivalent positions and that the county had provided a planning-level estimate of about $640,000 for one-time tenant improvements.

Council members who spoke during the discussion expressed sadness that retaining a standalone municipal court was not financially feasible but supported the regional approach as the most sustainable option. Council member Gilman said the decision was difficult but supported moving forward; Council member Green moved the resolution and the motion passed on voice vote.

Sullivan said if the council's resolution is matched by the county’s approval (anticipated at the July 29 county commission meeting), the city will provide the required notice to the Administrative Office of the Courts and begin the transition process, including employee transition planning and negotiations with unions and nonrepresented staff.

The interlocal agreement contains notice and termination provisions, including a requirement that the city give notice to the county by Oct. 1, 2026, if it seeks to extend the contract beyond the initial term; if the parties cannot agree on terms they can use arbitration or mutual extension while negotiations continue.