Urquhart says Pugel will help manage the sheriff's office, which has about 1,000 employees, including 700 deputies.
Pugel, a Seattle native and an officer for more than 30 years, replaced former Seattle Police Chief John Diaz after Diaz announced his retirement from the department.
Pugel played decisive roles in the hunt for accused cop-killer Chris Monfort and a crime wave last year that plagued the city of Seattle. He left the Seattle Police Department earlier this year when Mayor Ed Murray reorganized and he was given the option of retirement or accepting a demotion.
Pugel will make about $173,000 a year in his new position.
Pugel earlier came under criticism for his role in a decades-old Seattle police training video that appears to mock the city's homeless population. He apologized for the video, which was produced in 1986 and featured Pugel and other officers singing a parody song.