039-22 - Kitsap Homes of Compassion - ContractDocuSign Envelope ID; 1BE16717-1BD5-4A24-ADBF-30886FC79CBA
AFFORDABLE HOUSING SERVICES AGREEMENT
Contract No. 039-22
This Affordable Housing Services Agreement ("Agreement") is entered into by and between
Kitsap Homes of Compassion, a Washington non-profit corporation, and the City of Port Orchard,
a Washington State municipal corporation (hereinafter the "City" and collectively the "Parties").
I. RECITALS
A. Kitsap Homes of Compassion is a Washington non-profit corporation with its headquarters at
7721 Beacon Place NE #101, in the City of Bremerton, and is organized and existing under
the laws of the State of Washington; and
B. The City of Port Orchard is a Washington municipal corporation organized and existing under
the Washington State Constitution and the laws of the State of Washington, and particularly
those set forth at RCW Title 35A; and
C. In the 2019 legislative session, the Washington state legislature passed SHB 1406 (codified at
RCW 82.14.540), which created a sales tax revenue sharing program that allows the City to
access a portion of state sales tax revenue (hereinafter, the "Funds") to make local investments
in affordable housing over a 20-year term; and
D. The City is committed to utilizing this funding source to assist the citizens of Port Orchard by
investing in programs that commit to providing housing assistance for those below the 60%
median income level; and
E. Kitsap Homes of Compassion operates a program to provide safe, affordable, supportive
housing for those who are unhoused or struggling with housing insecurity in Kitsap County
(the "Program"); and
F. Kitsap Homes for Compassion seeks a partnership with the City for funding for affordable,
supportive housing for this population as follows: $1,000 per month to support the operations
and maintenance costs of new units of supportive housing in three (3) new facilities within the
City; and $600 per month as rental assistance for one eligible tenant in a supportive housing
facility located within the City; and
G. The City desires to engage Kitsap Homes of Compassion to perform the public services
described herein and undertake the use of the City's Funds for the affordable housing purposes;
NOW, THEREFORE, in consideration of the foregoing, and in consideration of the premises,
terms and conditions set forth below, it is hereby agreed as follows:
IL AGREEMENT
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1. Affordable Housing Services. The City desires to engage with Kitsap Homes of Compassion
by utilizing Funds allocated to the City pursuant to SHB 1406 to assist low-income individuals
and households in the South Kitsap area with affordable transitional and permanent housing.
Consistent with this goal, the parties agree to the following performance obligations:
A. City's_Duties. The City shall provide to Kitsap Homes of Compassion the Funds
in an amount up to $43,200 for the term of this Agreement ($36,000 for operations
and maintenance of three (3) supportive housing facilities in Port Orchard, and
$7,200 for rental assistance for one unit of supportive housing in Port Orchard),
contingent on the terms and conditions herein. The City shall have no additional
payment obligations to Kitsap Homes of Compassion beyond this allocation, and
all funding is conditioned on Council appropriation.
i. Upon receipt of an complete invoice in a form acceptable to the City, the
City shall issue payment within thirty (30) days of receipt.
B. Kitsap Holnes of Compassion Duties. Kitsap Homes of Compassion shall utilize
the Funds for the Program, as set out on Exhibit A hereto. In utilizing the Funds
and administering the Program, Kitsap Homes of Compassion shall comply with
all applicable state and local laws and shall exclusively utilize the Funds to provide
for affordable or supportive housing to benefit to those South Kitsap residents with
an 0-60% of the Area Median Income (AMI). Complete parameters for the
Program are attached hereto as Exhibit A.
i. Invoices shall be submitted monthly to the City, evidencing and
documenting that the requested payment was used for the public services
described herein and authorized by the City Council. Such documentation
shall evidence that the beneficiaries of the funding are Port Orchard
residents with a 0-60% of the Area Median Income (AMI), and that the
funding is used for operations and maintenance costs of new units of
affordable or supportive housing, or to provide rental assistance to tenants.
ii. Kitsap Homes of Compassion shall keep cost records and accounts
pertaining to this Agreement available for inspection by City
representatives for three (3) years after final payment.
2. Duration. This Agreement will commence upon mutual execution of this Agreement and will
expire one year from mutual execution, unless earlier terminated in accordance with the terms
of this Agreement.
3. Termination. The City may terminate this Agreement with or without cause upon thirty (30)
days' advance written notice to Kitsap Homes of Compassion. In the event of termination,
the City have no obligation to provide any Funds to Kitsap Homes of Compassion. Upon
termination or expiration of the Agreement, all unused Funds shall be returned to the City.
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4, Insurance.
A. Kitsap Homes of Compassion shall procure and maintain for the duration of the
Agreement, insurance against claims for injuries to persons or damage to property
which may arise from or in connection with the performance of the work hereunder
by Kitsap Homes of Compassion, its agents, representatives, or employees.
B. No Limitation. Kitsap Homes of Compassion's maintenance of insurance as
required by the agreement shall not be construed to limit the liability of Kitsap
Homes of Compassion to the coverage provided by such insurance, or otherwise
limit the City's recourse to any remedy available at law or in equity.
C. Minimum Scope of Insurance. Kitsap Homes of Compassion shall obtain insurance
of the types described below:
Commercial General Liability insurance shall be written on ISO occurrence
form CG 00 01, or a substitute form providing equivalent liability coverage
and shall cover liability arising from premises, operations, independent
contractors and personal injury and advertising injury. The City shall be
named by endorsement as an additional insured under the Kitsap Homes of
Compassion's Commercial General Liability insurance policy with respect
to the work performed for the City.
2. Workers' Compensation coverage as required by the Industrial Insurance
laws of the State of Washington.
D. Minimum Amounts of Insurance. Kitsap Homes of Compassion shall maintain the
following insurance limits:
Commercial General Liability insurance shall be written with limits no less
than $1,000,000 each occurrence, $2,000,000 general aggregate.
2. Employer's Liability each accident $1,000,000, Employer's Liability
Disease each employee $1,000,000, and Employer's Liability Disease —
Policy Limit $1,000,000.
E. Other Insurance Provisions. The insurance policies are to contain, or be endorsed
to contain, the following provisions for Automobile Liability and Commercial
General Liability insurance:
Kitsap Homes of Compassion's insurance coverage shall be primary
insurance as respect the City. Any insurance, self-insurance, or insurance
pool coverage maintained by the City shall be excess of Kitsap Homes of
Compassion's insurance and shall not contribute with it.
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2. The City will not waive its right to subrogation against Kitsap Homes of
Compassion. Kitsap Homes of Compassion's insurance shall be endorsed
acknowledging that the City will not waive their right to subrogation.
Kitsap Homes of Compassion's insurance shall be endorse to waive the
right of subrogation against the City, or any self-insurance, or insurance
pool coverage maintained by the City.
3. Kitsap Homes of Compassion's insurance shall be endorsed to state that
coverage shall not be cancelled by either party, except after thirty (30) days
prior written notice by certified mail, return receipt requested, has been
given to the City. If the General Liability coverage is written on a "claims
made" basis, then a minimum of a three (3) year extended reporting period
shall be included with the claims made policy, and proof of this extended
reporting period provided to the City.
F. Acceptability of Insurers. Insurance is to be placed with insurers with a current
A.M. Best rating of not less than ANTI.
G. Verification of Coverage. Kitsap Homes of Compassion shall furnish the City with
original certificates and a copy of the amendatory endorsements, including but not
necessarily limited to the additional insured endorsement, evidencing the insurance
requirements of Kitsap Homes of Compassion before commencement of the work.
5. Indemnification
A, Kitsap Homes of Compassion does hereby agree to save harmless and defend the
City from all claims and liability due to the acts, errors or omissions of Kitsap
Homes of Compassion, its agents and/or employees, except for claims caused by
the sole negligence of the City. Such indemnity will include, but not be limited to,
all out-of-pocket expenses incurred by the City, including attorney's fees, in the
event Kitsap Homes of Compassion fails or refuses to accept the tender of any
claims brought against the City, the basis for which are acts, errors or omissions of
Kitsap Homes of Compassion, its agents and/or employees.
B. The foregoing indemnity is specifically and expressly intended to constitute a
waiver of each Kitsap Homes of Compassion's immunity under Washington's
Industrial Insurance Act, RCW Title 51, as respects the City only, and only to the
extent necessary to provide the indemnified party with a full and complete
indemnity of claims made by the indemnitor's employees. The parties
acknowledge that these provisions were specifically negotiated and agreed upon
by them.
6. Entire Agreement f Amendments. This Agreement, together with any attachments or addenda,
represents the entire and integrated Agreement between the Parties hereto, and supersedes all
prior negotiations, representations, or agreements, either written or oral. It is mutually agreed
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and understood that no amendment of any of the terms of this Agreement will be valid unless
made by written instrument properly signed by both Parties.
7. Notices. Except as otherwise identified in this Agreement, any notices required to be given
by the City to Kitsap Homes of Compassion, or by Kitsap Homes of Compassion to the City,
will be in writing and delivered to the Parties at the following addresses:
Kitsap Homes of Compassion City of Port Orchard
Scott Willard, Executive Director Robert Putaansuu, Mayor
7721 Beacon Place NE #101, 216 Prospect Street
Bremerton, WA, 98311 Port Orchard, WA 98366
8. Compliance with Laws. Kitsap Homes of Compassion will comply with all federal, state and
local laws, rules, regulations and ordinances applicable to the performance of this Agreement,
including without limitation all those pertaining to the COVID-19 pandemic, wages and hours,
confidentiality, disabilities and discrimination, including but not limited to the Americans with
Disabilities Act and all regulations interpreting or enforcing such Act.
9. Maintenance and Audit of Records. Kitsap Homes of Compassion will maintain books,
records, documents and other materials relevant to its performance under this Agreement,
which sufficiently and accurately reflect any and all direct and indirect costs and expenses
incurred or paid in the course of performing this Agreement. These records will be subject to
inspection, review and audit by the City, the Washington State Auditor's Office, and
authorized federal agencies. Both Parties will retain all such books, records, documents and
other materials as required by the Washington State Records Retention policy as established
by the Secretary of State. In the event the City receives a public records request for records
pertaining to this Agreement and/or the Program, Kitsap Homes of Compassion agrees to assist
the City, at Kitsap Homes of Compassion's sole cost, to meet the City's obligations under the
Public Records Act, Ch. 42.56 RCW, at KCR's sole cost.
10. Reporting. Kitsap Homes of Compassion will submit to the City a detailed accounting of the
use of the Funds by Kitsap Homes of Compassion with each monthly invoice submitted to the
City for payment. Kitsap Homes of Compassion will assist the City by providing any
information needed for the City to compile and submit the reports required to by the State of
Washington under RCW 82.14.540(11).
11. Waiver Limited. A waiver of any term or condition of this Agreement must be in writing and
signed by the waiving Party. Any express or implied waiver of a term or condition of this
Agreement will apply only to the specific act, occurrence or omission and will not constitute
a waiver as to any other term or condition or future act, occurrence or omission.
12. Default / Dispute Resolution. If either Kitsap Homes of Compassion or the City fails to
perform any act or obligation required to be performed by it hereunder, the other party will
deliver written notice of such failure to the non -performing party. The non -performing party
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will have thirty (30) days after its receipt of such notice in which to correct its failure to
perform the act or obligation at issue, after which time it will be in default ("Default") under
this Agreement; provided, however, that if the non-performance is of a type that could not
reasonably be cured within said thirty (30) day period, then the non -performing party will not
be in Default if it commences cure within said thirty (30) day period and thereafter diligently
pursues cure to completion.
In the event a default continues and/or any dispute arises (for anything other than non-
payment) between the Parties, either party may request in writing that the issue be resolved by
mediation. If the parties are unable to resolve the dispute within ninety (90) days, then either
party will have the right to exercise any or all rights and remedies available to it in law or
equity. In any suit or action instituted to enforce any right granted in this Agreement, the
substantially prevailing party shall be entitled to recover its costs, disbursements, and
reasonable attorneys' fees from the other party.
13. Venue and Choice of Law. Any action at law, suit in equity, or other judicial proceedings for
the enforcement of this Agreement or any provision thereof will be instituted only in the courts
of the State of Washington, Kitsap County. It is mutually understood and agreed that this
Agreement shall be governed exclusively by the laws of the State of Washington, both as to
interpretation and performance.
14. Assignment and Subcontracting_ Kitsap Homes of Compassion may not assign, transfer,
delegate, subcontract or encumber any rights, duties, or interests accruing from this Agreement
without the express prior written consent of the City, which consent may be withheld at the
sole discretion of the City.
15. Severability. If any term or provision of this Agreement should be held to be invalid or
unconstitutional by a court of competent jurisdiction, such invalidity or unconstitutionality
will not affect the validity or constitutionality of any other term or provision of this Agreement,
and this Agreement will be construed in all respects as if such invalid or otherwise
unenforceable term or provision was omitted.
16. Independent Contractor. Kitsap Homes of Compassion is and will be at all times during the
term of this Agreement an independent contractor. Nothing in this Agreement will create an
employee/employer relationship between the Parties.
17. Independent Pasties. The Parties to this Agreement, in the performance of it, will be acting in
their individual capacities and not as agents, employees, partners, joint ventures, or associates
of one another. The employees or agents of one party will not be considered or construed to
be the employees or agents of the other party for any purpose whatsoever.
18. Counterparts. This Agreement may be executed by the Parties using duplicate counterparts.
FOR KITSAP HOMES OF COMPASSION
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Adopted this 7 day of �, 20 ZZ
co illard, Executive Director
FOR THE CITY OF PORT ORCHARD
Adopted this 22 day of February, 20 22
DocuSrrinrd by:
Ieie�t,v� Pt,�aa�nsuu.
—frsoeesssove � ..
Robert Putaansuu, Mayor
ATTEST/AUTHENTICATED:
DocuSigned byr:
UVU�IN
Sran y Wa ace; MMC, City Clerk
APPROVED AS TO FORM:
I
Docuftned by:i0'S70'ifi2r5277d
Charlotte A. Archer, City Attorney
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EXHIBIT A — SCOPE OF WORK AND FUNDS ALLOCATION
Kitsap Homes of Compassion Program Plan
2022
Summary
The MISSION of Kitsap Homes of Compassion is to provide safe, affordable, permanent housing
through comprehensive support services for those who are homeless or are struggling with
housing insecurity.
Kitsap Homes of Compassion desires to be the treatment agency of choice for homeless residents
moving towards housing stability throughout Kitsap County.
This contract is for funding our social work/case management services we provide to our
supportive housing shared homes, which is on average, $1,000 per month per home (which
houses, on average, 4 individuals). So, for one year, that would be $12,000 per home. This
Program would enable Kitsap Homes of Compassion to start 3 new supportive housing homes in
2022 within the city limits of Port Orchard, for a total contribution from March 1, 2022 to March
1, 2023 of $36,000.
We also propose Port Orchard paying the program fee for one room in one of the Kitsap Homes
of Compassion facilities located in the City of Port Orchard (at a cost of $600/mo) for a homeless
person who is in the process of applying for SSI but hasn't been awarded SSI yet and who has not
been able to get Housing and Essential Needs (HEN) funding (HEN has a program to pay the
program fee for homeless who are applying to SSI, but funding is limited). We would let Melissa
Stern determine who would be best for that room, in consultation with our KHOC clinical
supervisor. Support for this program is a total contribution of $7,200/year.
We determine the program fee cost we charge the residents based on the cost of KHOC to rent the
house plus $100/mo for all the house utilities, including internet service and phone land line,
which KHOC provides, as well as room size (i.e. master bedrooms with a private BA are higher
than shared bathroom rooms). That cost is typically in the range of $600/mo to 750/mo.
We offer "low barrier" homes, where residents can drink alcohol in the house, and if their blood
alcohol level is above driving limits, they agree to stay in their bedroom and not in the common
areas. That is about 30% of our homes. Then the other 70% of our homes are "sober homes" where
zero alcohol is permitted and zero intoxicated is permitted. Many residents who are trying to quit
drinking and not be "temped" with alcohol prefer these homes. We will try to open a low barrier
home, but if the homeowner whom we rent the house from does not agree with it, we may need
to go to the sober home model.
All our homes permit tobacco smoking and marijuana smoking when done outside away from the
doors and windows (usually the make a smoking area in the back yard of the house.).
For the safety of the neighborhoods where the homes are located, we do not tolerate
methamphetamine usage, and all program participants agree to random urine drug testing if we
suspect drug use. We require that participants be clean from illegal drugs for 6 months before
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moving into the house (we are not designed as a drug rehab program — there are other programs
in the county that offer that service).
The $1,000/mo per home for behavior health services cost goes toward paying for our behavior
health staff which includes four KHOC housing navigators which are bachelor's level social
workers, and one KHOC Clinical supervisor who is a licensed independent advance Social
Worker (master's degree in social work), and one licensed counselor. These six behavioral health
specialists are highly trained and experienced at working with individuals with mental health
disorders and people with addictions, including comorbidities. They work with individuals in the
homes and are involved with there is crisis situations. These behavioral health specialists also
provide ongoing training and support to our volunteer house managers. This funding also helps
pay some of our administrative cost of offering these services.
If the City of Port Orchard helps us with this funding, we will give referrals from Melissa Stern
priority into placement into any openings in the Port Orchard homes.
Policy Goals, Objectives, and Strategies from the 2021 Kitsap County Behavioral Health
Strategic Plan
Kitsap Homes of Compassion focuses on four of the policy goals:
Improve the health status and wellbeing of Kitsap County residents
• Reduce the incidence and severity of chemical dependency and/or mental health
disorders in adults and youth
Reduce the number of people in Kitsap County who use costly interventions including
hospitals, emergency rooms, and crisis services
Increase the number of stable housing options for chemically dependent and mentally ill
residents of Kitsap County
Supportive Housing services are a specific intervention for people who, but for the availability of
services, do not succeed in housing and who, but for housing, do not succeed in services.
Supportive Housing services help individuals who are homeless or unstably housed live with
maximum independence in community -integrated housing. Thus, KHOC's program is meeting
several goals of Kitsap County's strategic plan, reducing the use of other, more costly
interventions, improving the health of those with serious mental disabilities, and increasing the
number of stable, long-term housing options.
Outreach/marketing plan to reach your target population and how it ensures that eligible
persons from underserved communities learn about and have access to your program.
Kitsap Homes of Compassion actively partners with Kitsap Community Resources and their
Housing Solution Center, Salvation Army, Kitsap Rescue Mission, Catholic Community
Resources (their HEN program, Benedict House, and women's shelters), Housing Bainbridge
Island, Fishline, and the City of Poulsbo. We proactively connect with all the community shelters,
hospitals, Kitsap Mental Health Services and Poulsbo Community Care Navigators. In addition,
we have a robust online presence that attracts participant applications. Our Housing Navigators
reach out to program applicants to assess their housing needs, their behavioral health needs and
health screening. Port Orchard homeless will be given priority for placement in these homes.
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How will you deliver culturally appropriate and competent services that meet the needs of
both clients and staff?
Staff are asked to attend training on cultural competence as the State and local partners make them
available. Internally, Kitsap Homes of Compassion consistently trains and supports cultural
competence. We have been careful to ensure that diversity and inclusion is highlighted in our
program screening. We also recognize that the chronic homeless and those with disabilities, as
well as those fleeing domestic violence require specific sensitivity. This is an area that we excel
in attending to in our screening tool, services and training.
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