Olympia council directs staff to negotiate interlocal agreement with Thurston County for judicial services

Olympia — The Olympia City Council voted unanimously April 22 to direct staff to begin negotiating an interlocal agreement with Thurston County for judicial services, jail alternatives and supervised probation, a step staff and council framed as a response to the city’s long-term budget and capital constraints.

Assistant City Manager Debbie Sullivan presented the proposal, telling the council, “This is a hard place to be, and I sincerely wish we weren't here.” Sullivan said staff considered three relocation models — leasing commercial space, repurposing city-owned buildings, or contracting with Thurston County — and recommended pursuing negotiations with the county because it had the smallest projected impact on the general fund.

Sullivan summarized the fiscal and program context for the proposal. The city has been evaluating options since entering an exclusive negotiation and later a purchase-and-sale agreement for the Lee Creighton Justice Center property at 900 Plum Street. A 2022 Justice Center master plan estimated a full replacement cost in 2023 dollars at roughly $89–$94 million; Sullivan said rebuilding even without a jail would be “north of $50,000,000” with annual debt service of about $4,000,000. She said the municipal court’s operating budget is roughly $2.5 million annually and that the county’s preliminary 2026 estimate for taking on judicial services would increase Olympia’s operating costs by about $78,000 compared with a like-for-like 3% COLA adjustment to the city budget. One-time transition costs to the city were estimated at approximately $742,000.

Sullivan described community court and probation activity: the municipal court averages about 1,565 filings annually. Community court referrals and participation varied after the program’s 2024 relaunch: in 2023 there were 97 eligible referrals with 78 opt-ins; in 2024 there were 90 eligible with 21 opting in; through February 2025 there were 23 eligible and 3 opted in. She said the county does not operate a community court but runs multiple therapeutic courts and has said it would transition current community-court participants and continue jail-alternative and probation services.

Public comment and council discussion focused on the court’s history, community-court model, impacts on employees and on local control. Former municipal judge Dave Larson warned the council that closing a city court would remove the electorate’s power to choose a municipal judge, saying, “This is the most important level of court and I hope you consider that.” Miriam Olsen, identified in public comment as the Olympia municipal court administrator, said, “This court means more to me than just a job,” and urged the council to pause and work with court staff on alternatives. Thurston County Commissioner Carolina Mejia urged the council to consider the county’s existing programs: “Olympia residents would gain access to a range of innovative person centered services already in motion.”

Union and employee concerns featured prominently. Court employees, a union representative and public defenders said the city had not done enough outreach; Council members and the city manager responded that staff had met multiple times with employees and that any transition would be negotiated with the union. City Manager Jay Birney said staff would prioritize individual conversations with affected employees and work in partnership with the bargaining unit.

Sullivan emphasized next steps if the council approved the motion: staff would open formal negotiations with Thurston County, prioritize employee transition conversations with the union, and return any final interlocal agreement to both governing bodies for approval at open public meetings. If an agreement were signed by both parties, the city would provide a six‑month notice to the state Administrative Office of the Courts.

After questions and extended discussion about alternatives (leasing commercial space, using council chambers and 108 State Street, or building a new justice center), Council Member Cooper moved to approve the resolution directing staff to negotiate an interlocal agreement with Thurston County; the motion passed unanimously.

Council members and staff said the action does not finalize a transfer of services: it authorizes staff to negotiate terms and return to council with a concrete agreement for consideration and a public vote. Sullivan and the city manager said they will continue outreach with the judge, court staff, unions and community partners during the negotiation period.

Ending — The council’s direction begins a negotiation phase that staff say would curb the city’s near-term capital exposure while seeking to preserve locally valued programs and people. Any final transfer would require an interlocal agreement approved by both Olympia and Thurston County and will be brought back to the council at an open meeting.