078-23 - Resolution - Contract with Kitsap Regional Library for the Events CenterDocuSign Envelope ID: 23823266-546D-425A-8F41-4B072D4CFA06
RESOLUTION NO. 078-23
A RESOLUTION OF THE CITY OF PORT ORCHARD, WASHINGTON, AUTHORIZING
THE MAYOR TO EXECUTE A FINANCING AND PROJECT PARTNERSHIP
AGREEMENT WITH KITSAP REGIONAL LIBRARY FOR THE SOUTH KITSAP
COMMUNITY EVENTS CENTER.
WHEREAS, since 2018, the City, the Kitsap County Public Facilities District, and the
Kitsap Regional Library ("KRL" have worked collaboratively to develop, design and finance the
construction of the South Kitsap Community Event Center ("CEC"), a special events center to
provide a new and expanded space for library services, as well as new community event and
meeting space to serve the public in downtown Port Orchard; and
WHEREAS, the City and KRL have worked collaboratively to design the exterior and
interior of the CEC to ensure its dual function as a library and a public events space, and have
negotiated a long-term financing and project partnership agreement to reflect the partners'
commitments and roles for construction, and use of the CEC (the "Agreement"); and
WHEREAS, the CEC will provide a central gathering place and multi -purpose facility in
downtown Port Orchard that will support a multitude of functions for local and regional use;
and
WHEREAS, the CEC will house the library branch, to provide expanded space for library
services, and new community event and meeting space to serve the public; and
WHEREAS, the City Council finds that execution of the Agreement will provide for the
development, construction, and operation of the CEC and is in the best interests of the City and
its residents; now, therefore
THE CITY COUNCIL OF THE CITY OF PORT ORCHARD, WASHINGTON, HEREBY RESOLVES
AS FOLLOWS:
THAT: It is the intent of the Port Orchard City Council that the recitals set forth above
are hereby adopted and incorporated as findings in support of this Resolution.
THAT: The City Council authorizes the Mayor to execute a Financing and Project
Partnership Agreement with Kitsap Regional Library for the South Kitsap Community
Events Center, and to take all actions consistent with this authorization and necessary to
effectuate its intent. A copy of the Agreement is attached hereto as Exhibit A and shall
be executed in a form acceptable to the City Attorney.
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Resolution No. 078-23
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PASSED by the City Council of the City of Port Orchard, SIGNED by the Mayor and
attested by the City Clerk in authentication of such passage on this 251" day of July 2023.
ATTEST:
DocuSigned by:
Brandy Wallace, MMC, City Clerk
DocuSigned by:
Ieab P4a&A SWA,
Robert Putaansuu, Mayor
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FINANCING AND PROJECT PARTNERSHIP AGREEMENT BETWEEN THE CITY OF PORT ORCHARD
AND THE KITSAP REGIONAL LIBRARY
FOR THE SOUTH KITSAP COMMUNITY EVENT CENTER
Contract No. 061-23
THIS AGREEMENT for the financing and use of the South Kitsap Community Event Center,
in Port Orchard, Washington ("Agreement"), is made and entered into upon mutual execution by
and between the City of Port Orchard ("City") and the Kitsap Regional Library ("KRL"), a Kitsap
County Rural Library District. The City and KRL shall be referred to as the Parties and each as a
Party.
RECITALS
WHEREAS, the City owns real property and a building located at 87 Sidney Avenue that is
leased to KRL for the operation of a library branch to provide library services to residents
(Contract No. 048-14); and
WHEREAS, since 2018, the City, the Kitsap County Public Facilities District and KRL have
worked collaboratively to develop, design and finance the construction of the Port Orchard
Community Event Center ("CEC), a special events center to be constructed on Kitsap County Tax
Parcel No. 4650-011-001-0001, located at 619 Bay Street, Port Orchard, Washington 98366 (the
"Property"); and
WHEREAS, the CEC will provide a central gathering place and multi -purpose facility in
downtown Port Orchard that will support a multitude of functions for local and regional use; and
WHEREAS, the CEC will house the library branch, to provide expanded space for library
services, and new community event and meeting space to serve the public; and
WHEREAS, the Parties recognize the benefits the parties can receive from working
collaboratively to develop, fund and construct the CEC for the residents of Port Orchard and
South Kitsap County; and
WHEREAS, the Kitsap County Public Facilities District has committed to providing
$18,500,000 from existing sales and use tax authority pursuant to RCW 82.14.390 in funding for
the CEC as a project to create tourism and economic growth for the area; and
WHEREAS, since 2018, the City and KRL have worked collaboratively to design the exterior
and interior of the CEC to ensure its dual function as a library and a public events space, as well
as to secure resources for the necessary funding for this project; and
WHEREAS, this Agreement is intended to memorialize the Parties commitments to
funding the development, construction and operation of the CEC;
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NOW, THEREFORE, the City and KRL enter into this Agreement that outlines the
responsibilities and commitments of each party in the development, construction, operation and
financing of the CEC.
AGREEMENT
I. PURPOSE
The CEC will be developed as a multipurpose special events facility of approximately 26,000
square feet, including over 6,000 square feet of space committed to KRL for operation of the
library branch and approximately 8,000 square feet of shared event and meeting space that can
be utilized by the Parties.
This Agreement provides for the parties' commitments to financing the development,
construction and operation of the CEC. Because KRL will relocate its existing library branch into
the CEC upon completion of construction and operate its library branch in the CEC moving
forward, this Agreement also addresses the terms of occupation of a portion of the CEC by KRL,
provided the Parties intend to execute a long-term lease agreement that incorporates the
relevant terms from this Agreement.
II. TERM
The term of this Agreement shall be for forty (40) years, commencing on the date that this
Agreement is fully executed by the Parties (the "Commencement Date"), unless otherwise
terminated as set forth herein or extended by written agreement of the Parties; provided, at such
time as the Parties enter into a long-term lease agreement for the CEC, this Agreement shall be
incorporated into that Lease agreement.
III. DEVELOPMENT AND DESIGN OF CEC
A. The Parties agree to develop and provide for the joint provision and operation of the CEC
in accordance with this Agreement as a multipurpose, tourism -related facility, providing public
meeting and event space and a new regional library.
1. The City shall be the agency with primary responsibility for the development of
the CEC, and shall acquire, design, construct, own, operate and maintain the CEC,
and otherwise administer its development and operation, subject to the
provisions set forth herein.
2. The City is and will remain the owner of the Property and has acquired all real
property and real property interest necessary to serve as a site for the CEC.
3. The City maintains all necessary lease agreements, including but not limited to
Department of Natural Resources Aquatic Lease Agreement(s), for the use and
occupancy of the Property as well as all real property necessary to serve as the
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site for the CEC, on such terms and conditions as may be agreed upon by the City
and the applicable lessor(s).
4. Prior to construction, the City will provide KRL a proposed capital expenditure
budget plan for the Project.
B. Pursuant to an Agreement with the City, firm Rice Fergus Miller, Inc. ("RFM") shall design
the CEC according to the direction of the City, and with input from KRL to the City. The Parties
agree that the Port Orchard Community Events Center Designs attached to this Agreement as
Exhibits 1.1-1.3 have been approved by the City after input from KRL; provided, that KRL must
approve in writing any subsequent alterations to the design of the portion of the CEC that KRL
will occupy ("Library Space"), and KRL will have the reasonable opportunity to provide input to
the City on any other proposed subsequent alterations. The Parties agree that the "Library
Space" is the rooms identified in the Room Schedule attached to this Agreement as Exhibit 2
highlighted in purple as "Library is Primary Operator." References to the "Library Space" by room
numbers on Exhibit 2 do not limit KRL's additional allowed use of shared spaces and spaces KRL
can access as identified on Exhibit 2.
C. KRL shall have exclusive control of the design of any and all tenant improvements within
the Library Space but the design shall be performed by RFM under its contract with the City, with
payment for that design provided by KRL to the City (as set out in a separate agreement between
the parties). The tenant improvement design of the Library Space is included in the RFM design
approved by the City and KRL, attached as Exhibits 1.1-1.3.
IV. CONSTRUCTION
A. The City shall be responsible for contracting for and managing the construction of the
CEC; provided, KRL may participate in the procurement process for the general contractor and
for construction administration/construction management services. Beginning with
groundbreaking on construction, the City will provide KRL with monthly, quarterly, and annual
project reports regarding construction; provided, KRL may have a representative present to
review construction progress at any time during the project.
Change Orders. KRL will be consulted on all change orders, and the City will provide access to all
information relating to the Project and/or the Property as the Library may request. If a
contemplated change order will impact the Library Space or will cause an increase in KRL's Capital
Contribution, the City will notify KRL those change orders in advance of them being issued to the
general contractor. Responsibility for payment of change orders shall be as follows:
i. Change orders that only involve tenant improvement work inside the Library Space: KRL shall be
responsible to pay in full.
ii. Change orders that only involve work outside the Library Space and/or work to the shell or
infrastructure of the building: City shall be responsible to pay in full, unless otherwise agreed
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upon by the parties at the time of the change order, provided work KRL requested for its sole
benefit shall be the responsibility of KRL.
iii. Change orders that involve tenant improvement work inside the Library Space and work
outside the Library Space and/or work to the shell or infrastructure of the building: KRL shall be
responsible to pay costs for tenant improvement work inside the Library Space and the City shall
be responsible to pay the balance of the change order unless (a) otherwise agreed upon by the
parties at the time of the change order, in which case the responsibility for payment will be by
agreement of the parties; or (b) KRL requested a portion of the change for its sole benefit, in
which case payment for that portion shall be the responsibility of KRL.
B. Anticipated Timeline. The Parties acknowledge that the following dates are target dates
for action and failure to meet the dates set forth herein will have no effect on the provisions of
this Agreement, provided deadlines pertaining to financing shall not be altered except for by
advance written agreement of the Parties.
Milestone
Anticipated Completion Date
Final Design (approval by City
Council)
June 2023
Permitting
2023-2025
Solicitation of Bids for
Construction
2026
Construction
2026-2027
Tenant Improvements
2027
Occupation Issued
2028
V. CAPITAL CONTRIBUTIONS
A. Subject to the terms set forth herein and in conjunction with the Kitsap County Public
Facilities District, the City and KRL agree to jointly fund the construction of the CEC (for purposes
of this section, "Project") as follows:
1. The Public Facilities District has committed to fund 66% of the total project cost estimated
at $28,100,000 which will provide an estimated $18,500,000 for the Capital Contribution
for the Project.
Jasri er
2. KRL shall provide an estimated Initial Capital Contribution of4,800,000 (representing
half of the 34% not funded by the Public Facilities District).
3. The City shall provide an estimated Initial Capital Contribution of $4,800,000
(representing half of the 34% not funded by the Public Facilities District.
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4. In addition to the above Initial Capital Contributions, the City and KRL will each contribute
Final Capital Contributions in the amounts equal to the change order costs for which they
are responsible under this Agreement, subject to the limitation on KRL's Capital
Contribution below. The City's Final Capital Contribution shall include other costs for the
Project that are not covered by KRL's Capital Contribution.
5. KRL's Initial and Final Capital Contribution shall together be "KRL's Capital Contribution,"
and shall not exceed $5,500,000 without KRL's written consent.
6. The City shall own the property on which the Community Event Center is constructed, and
the above Capital Contributions shall not include the value of that underlying property
which will be contributed wholly by the City.
7. The Capital Contributions shall be in the form of a cash capital contribution to the Project
and will be funded in full on the timeline set out herein.
8. The Capital Contributions shall be utilized for the costs of development, construction,
materials, public bidding and contracting costs, permitting, consultant and attorneys' fees
for the Project development; provided, the Parties will each cover their own transaction
expenses and those of its attorneys, agents and advisors for the costs of negotiating,
drafting and executing this Agreement and any future Lease Agreement.
VI. OPERATION AND USE
A. After the CEC is constructed, the Parties shall prepare and execute a lease agreement
incorporating the terms of this Agreement. The Parties agree that KRL shall occupy and
lease from the City a portion of the CEC reflected in the Room Schedule in Exhibit 2. The
Parties agree that the lease shall provide the following terms and shall be substantially
similar to the lease agreement between the City and KRL for use of the 87 Sidney Avenue,
Port Orchard Library Facility, attached as Exhibit 3 and including the following terms:
1. City agrees to lease the Library Space to KRL as a reflection of KRL's Capital
Contribution to the Project for a period of forty (40) years, at a lease rate of $1 per
year, and shall renew the lease at the expiration of that term upon terms
negotiated at that time. The lease shall allow KRL primary access to conference
and office spaces located on Floor 1 without interference by the City, and access
to conference rooms located on Floor 2 provided the City may schedule use of
these rooms in accordance with City policy that shall be developed with input by
KRL.
2. City agrees to provide utility services for the CEC at its own expense, including but
not limited to heating, air conditioning, electricity, potable water, sewer, solid
waste, and shall further provide all services for structural maintenance of the CEC,
including but not limited to building maintenance and capital facility needs. KRL
agrees to provide janitorial/custodial service and supplies for the CEC, provided if
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shared spaces are rented for a private event, the City shall be responsible for
janitorial/custodial service and supplies for all rooms used for that event.. The
Parties agree that minor maintenance requests, including repair of damage
caused by KRL patrons, shall first be evaluated by KRL staff, and where feasible
resolved by KRL. Non -minor building repair requests, as decided by the
reasonable determination of KRL staff, shall be submitted to the City Public Work's
Director or their designee by KRL staff for resolution by the City. Scope of repairs
shall be at the sole determination of the City.
3. The City shall maintain the exterior of the CEC, including landscaping and parking
facilities. The City shall provide a dedicated parking space adjacent to KRL's book
drop with signage restricting use of the space at all times for the book drop, and
will restrict use of at least two spaces adjacent to the book drop for KRL staff
during business hours.
4. KRL agrees to provide library services in its leased premises, including but not
limited to books and materials, programming, staffing, technology, and telephone
and data connection costs. KRL will notify the City in advance of any changes in
operational hours.
5. All furnishings, including without limitation the library collection, removable
fixtures, and equipment (collectively the "KRL Furnishings") are or will become
property of KRL. Permanently mounted fixtures shall remain part of the building
and therefore owned by the City; provided, if City decides to sell the CEC, KRL in
exercising its option to purchase the CEC, will become owner of the permanently
mounted fixtures.
6. KRL Capital Improvement requests shall be submitted no later than August 31 of
each year for inclusion in the City's preliminary budget process. Changes to the
structure of the premises leased by KRL shall be negotiated and done in
partnership so as not to impede or disrupt library service to the public as much as
is reasonably practicable.
7. KRL shall have the right, at its expense, to install, construct, reconstruct, and
maintain improvements in the Library Space, and shall bear responsibility for their
continued operation, maintenance, and repair.
8. The parties covenant not to use the Library Space or any area impacting the Library
Space in any way that is inconsistent with the provision of library services during
the term of the lease, absent express written approval of the parties.
B. Sale of the CEC and Purchase Option. Should the City elect to sell the CEC, KRL shall
have the first option to purchase the CEC for the fair market value of the CEC, less
KRL's Capital Contribution to the CEC. KRL shall have six (6) months to decide whether
to exercise this option, from the date the parties agree on the fair market value. If
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the parties are unable to agree on the fair market value, each shall retain its own
appraiser and the parties shall engage in binding arbitration to determine the fair
market value. This Section shall survive termination of the Agreement. Any sale of
the CEC will be subject to this Agreement and the parties' lease.
VII. INDEMNIFICATION
To the extent permitted by law, the City agrees to indemnify and hold harmless KRL from and
against all claims of whatever nature arising from any act, omission, or negligence of the City, or
of the City's contractors, licensees, agents, servants, or employees under this Agreement. This
indemnity and hold harmless agreement will include indemnity against all reasonable costs,
expenses, and liabilities incurred in or in connection with any such claim or proceeding brought
thereon, and the defense thereof. Notwithstanding the foregoing, the City will have no liability
to KRL with respect to any claims or portions thereof of whatever nature arising from any act,
omission, or negligence of KRL, or of KRL's contractors, licensees, agents, servants, or employees.
To the extent permitted by law, KRL agrees to indemnify and hold harmless the City from and
against all claims of whatever nature arising from any act, omission, or negligence of KRL, or of
KRL's contractors, licensees, agents, servants, or employees under this Agreement. This
indemnity and hold harmless agreement will include indemnity against all reasonable costs,
expenses, and liabilities incurred in or in connection with any such claim or proceeding brought
thereon, and the defense thereof. Notwithstanding the foregoing, KRL will have no liability to
the City with respect to any claims or portions thereof of whatever nature arising from any act,
omission, or negligence of the City, or of the City's contractors, licensees, agents, servants, or
employees.
If and to the extent this agreement is subject to RCW 4.24.115, the parties agree that the
indemnifying party will not be obligated to indemnify the indemnified party for the indemnified
party's sole negligence, and in the case of concurrent negligence, the indemnifying party is only
obligated to indemnify the indemnified party to the extent of the indemnifying party's own
negligence. Further, each party specifically and expressly waives any immunity that may be
granted it under the Washington State Industrial Insurance Act, Title 51 RCW, for claims against
the party by the other party under this Section. The waiver does not include, or extend to, any
claims by a party's own employees directly against the party.
THE CITY AND KRL ACKNOWLEDGE THAT THIS WAIVER WAS SPECIFICALLY ENTERED INTO
PURSUANT TO THE PROVISIONS OF RCW 4.24.115 AND WAS THE SUBJECT OF MUTUAL
NEGOTIATION.
This Section shall survive termination of the Agreement.
Vill. INSURANCE
The City shall maintain at all times, at its sole expense and in such amounts as it shall determine
to be adequate, fire and extended coverage insurance for the CEC. KRL shall maintain at all times,
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at its sole expense and in such amounts as it shall determine to be adequate, fire and extended
coverage insurance for the furnishings of the Library Space. City and KRL shall each maintain at
their sole expense, a policy or policies of comprehensive general liability insurance against loss
suffered or alleged to be suffered by any person or persons or to any property, on or about the
CEC or resulting thereof by the respective parties in accordance with this Agreement, such
insurance to afford protection in the amounts of not less than $1 million single limit/$1 million
aggregate. City and KRL each shall be listed as an additional insured on the other's policy or
policies providing such comprehensive liability coverage, and each shall obtain the agreement of
its insurer to provide notice to the other o any expiration or cancellation of coverage at least 10
days prior to such expiration or cancellation.
IX. FORCE MAJEURE
Neither the City nor KRL shall be responsible for any delay in or failure of performance resulting
from events outside the Parties' reasonable control, including but not limited to riot, war, civil
unrest, natural disaster, or other circumstances not reasonably within its control.
X. CONFLICT RESOLUTION
If either party believes that the other party is not fulfilling the obligations established by this
Agreement, that party shall give written notice of its complaint to the other party if and when
informal communications, such as telephone conversations, fail to satisfy the claiming party. The
written notice shall identify the act or omission at issue and the specific term(s) of this Agreement
that the complaining party alleges has been violated. The responding party's designated
representative shall respond to the notice in writing within ten (10) working days. The response
shall state that party's position as well as what, if any, corrective action the responding party
agrees to take. The complaining party shall reply in writing, indicating either satisfaction or
dissatisfaction with the response. If satisfied, any corrective action shall be taken within ten (10)
days of receipt of the responding party's written reply unless otherwise mutually agreed. If
dissatisfied, the complaining party shall call a meeting between the Mayor of the City of Port
Orchard or his/her designee and the KRL Board President or his/her designee to resolve the
matter. The Mayor and Board President may agree to submit the dispute to a Washington State
mediator, which may include a professional mediation service, to mediate the matter in
accordance with their mediation rules. Otherwise, the matter shall be considered closed. All the
steps preceding shall be a prerequisite to either party suing under this Agreement for breach,
specific performance, or any other relief related to this Agreement, except that either party may
seek an injunction for irreparable harm.
XI. DEFAULT; TERMINATION
Either party has the right to terminate this Agreement in the event the other party is in default
of any material term or condition of this Agreement by providing ninety (90) days' advance
written notice specifying the basis for such determination and providing the other party with an
opportunity to cure the default. If the other party thereafter fails to commence reasonable steps
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within to correct fully and to remedy the default within ninety (90) days from the date of the
notice, then this Agreement shall be deemed terminated; provided that, if the nature of the
default is such that it cannot be remedied within ninety (90) days, then the Agreement shall not
terminate so long as the party in default is proceeding promptly to remedy the default and does
so within such additional period as may be agreed by the parties. In case of termination for
default by either party of the duties and obligations under the terms of this Agreement, KRL shall
release all right to use the CEC and all improvements to the City. In the event the City is in default
or demands early termination for any reason, it shall have the obligation to pay KRL one hundred
(100) percent of the depreciated cost of the KRL related tenant improvements. For calculating
depreciation, the useful life of the tenant improvements is [40 years]; the calculation will be
made using the straight-line method.
XII. ASSIGNMENT
Neither party will assign its rights or responsibilities under this Agreement without written
authorization of the other party; provided, that the City may delegate day-to-day construction
management to the general contractor the City hires to construct the CEC.
XIII. SEVERABILITY
If any term or clause of this Agreement is held invalid or unenforceable, the remainder of the
Agreement will not be affected, but shall continue in full force.
XIV. NOTICE
Each notice or other communication which may be or is required to be given under this
Agreement, shall be in writing and shall be deemed to have been properly given when delivered
personally during normal working hours to the party to whom such communication is directed,
or three (3) days after being sent by regular mail, to the appropriate one of the following
addresses as may be designated by the appropriate party:
IF TO THE CITY OF PORT ORCHARD:
Mayor
City of Port Orchard 216 Prospect Street
Port Orchard, WA 98366
Telephone No: (360) 876-4407
Fax No: (360) 895-9029
Email: rputaansuu@portorchardwa.gov
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IF TO KRL:
Director
Kitsap Library District
1301 Sylvan Way
Bremerton, WA 98310
Telephone No: (360) 405-9132
Email: idriver@krl.org
XV. NON -WAIVER
Failure of either party to insist upon the strict performance of any term of this Agreement will
not constitute a waiver or relinquishment of any party's right to thereafter enforce such term.
XVI. INTEGRATION
This writing contains all terms of the Parties' agreement on this subject matter and replaces all
prior negotiations and agreements. Modifications to this Agreement must be made in a writing
signed by each Party's representative. This Agreement may be executed in two or more
counterparts and by email exchange of PDF copies, each of which shall be deemed an original
but all of which together shall constitute one and the same instrument.
XVII. JURISDICTION, VENUE, AND GOVERNING LAW
The Parties hereto, their successors and assigns, hereby consent to the jurisdiction and venue of
the Kitsap County Superior Court, State of Washington, for the determination of any dispute that
may arise pursuant to the terms of this Agreement. All the rights and remedies of the respective
parties shall be governed by the provisions of this instrument and by the laws of the State of
Washington as such laws relate to the respective rights and duties of the City and KRL. .
XVIII. AUTHORITY
The Parties each represent and warrant that they and/or their undersigned agents have full
power and authority to enter into and execute this Agreement, and that the execution, delivery,
and performance by the Parties of this Agreement and the related documents is not in conflict
with any law, rule, regulation, writ, judgment, injunction, decree or award, or with the provisions
of any agreement to which the Parties or any of them may be bound, including without limitation,
their articles of incorporation or bylaws.
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XIX. BINDING AGREEMENT
This Agreement shall be binding upon and inure to the benefit of the successors, assigns, trustees,
receivers, personal representatives, legatees, and devisees of the Parties. Except as set forth
herein, no person, organization, or association other than the City and KRL shall have any rights
or claims under this Agreement.
XX. ENTIRE AGREEMENT
This Agreement embodies the entire agreement and understanding between the Parties and
supersedes all prior agreements and understandings related to the subject matter hereof.
XXI. COUNSEL'S ADVICE
The Parties represent that they have reviewed the terms of this Agreement with their attorney,
that they are authorized to enter into this Agreement, and the Agreement is executed freely and
voluntarily as of the date hereof.
XXII. ATTORNEY FEES TO PREVAILING PARTY
In the event of any litigation in connection with this Agreement, the prevailing Party shall be
entitled to recover its attorney fees and other costs and expenses, including attorney fees in both
trial and appellate courts and in any bankruptcy proceeding.
XXIII. COUNTERPART SIGNATURES
This Agreement may be executed in several counterparts, which when taken together shall
constitute one original Agreement. A facsimile signature shall be deemed an original signature
for all purposes.
IN WITNESS WHEREOF, the Parties have duly executed and delivered this Agreement as of the
date first above written.
CITY OF PORT ORCHARD
I]vcuSfgnnd by:
By: Robert Putaansuu, Mayor
8,/15/2023
Dated:
KITSAP COUNTY LIBRARY DISTRICT
LIM
Jason Driver, Library Director
Dated: 8-14-2023
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LIST OF EXHIBITS
Exhibit 1: CEC Designs
Exhibit 2: Room Schedule
Exhibit 3: Lease Agreement for 87 Sidney Avenue
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PORT ORCHARD COMM. EVENTS CENTER
CITY OF PORT ORCHARD
DESIGN DEVELOPMENT.
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""�RY Kitsap Regional Library
Contract No. 048-14 1301 Sylvan Way
Bremerton, WA 98310
(360) 405-9158
CITY OF PORT ORCHARD
MEMORANDUM OF AGREEMENT
This Memorandum of Agreement (the "Agreement") is entered into as of May 12, 2014 by and
between the Kitsap County Rural Library District d/b/a Kitsap Regional Library ("Library
District") and the City of Port Orchard ("City"). Library District and City are collectively referred
to as the "Parties" and individually as a "Party".
RECITALS
A. As owners of the building located at 87 Sidney Avenue, Port Orchard, Washington (the
"Library Facility"), City has a need for library services that can be provided by the Library
District.
B. Library District is able to supply staffing, technology, materials, programming and
associated personnel and administrative support to provide library service.
C. City recognizes that it will benefit from such services as the Library District can provide,
and Library District recognizes that it will benefit from providing the service.
D. The Parties now desire to enter into this Agreement under the terms and conditions set
forth herein.
AGREEMENT
NOW, THEREFORE, the parties hereto agree as follows:
1. City agrees to make the Library Facility available to the Library District, which Library
District shall use as a branch library, without rental expense to the Library District.
City agrees to provide utility services at its own expense, including but not limited to:
heating, air conditioning, electricity, potable water, sewer, solid waste, and shall further
provide all necessary services for structural maintenance of the Library Facility, including
but not limited to building maintenance and capital facility needs. Library District will
Bainbridge Island n Downtown Bremerton . Kingston o Little Boston . Manchester • Port Orchard
e Poulsbo . Silverdale • Sylvan Way • Bookmobile • Outreach ■ www.kri.org
DocuSign Envelope ID: 23823266-546D-425A-8F41-4B072D4CFA06
DocuSign Envelope ID: BA42716B-69B2-4A49-ADBD-4A85EAAA877F
1""t1dI` CITY OF PORT ORCHARD
l MEMORANDUM OF AGREEMENT Page 12
provide janitorial service and supplies. Parties agree that minor maintenance requests shall
be first evaluated by Library District Facilities staff, and where feasible resolved by the District.
Substantial building repair requests shall be submitted to the City Public Works Director, or their
designee, by Library District's facility staff. The scope of repairs shall be at the sole
determination of the City.
3. The City shall provide low maintenance xeriscape landscaping on City owned Library
area property. In concurrence with the City, the District may enter into an agreement(s)
with third Party(s) to provide landscape, maintenance, and irrigation system services,
which expense shall be at the sole cost to the District.
4. Library District agrees to provide library services in the Library Facility, including, but not
limited to, books and materials, programming, staffing, technology, telephone and data
connection costs. Library District will notify City in advance of any changes in hours.
5. All furnishings, including without limitation the library collection, removable fixtures,
including without limitation shelving and other trade fixtures, and equipment
(collectively, the "Library District Furnishings"), are or will become property of Library
District. Permanently mounted fixtures will remain part of the building and therefore
owned by the City.
6. Library Facility Capital Improvement requests shall be submitted no later than August 31
for inclusion in the City's Preliminary Budget process. Changes to the structure of the
Library Facility will be negotiated and done in partnership so as not to impede or disrupt
library service to the public as much as possible.
7. City shall maintain at all times, at its sole expense and in such amounts as it shall
determine to be adequate, fire and extended coverage insurance for the Library Facility.
Library District shall maintain at all times, at its sole expense and in such amounts as it
shall determine to be adequate, fire and extended coverage insurance for the Library
District Furnishings. City and Library District shall each maintain at its sole expense, a
policy or policies of comprehensive general liability insurance against loss suffered or
alleged to be suffered by any person or persons or to any property, on or about the
Library Facility or resulting from the operation thereof by the respective parties in
accordance with this Agreement, such insurance to afford protection in the amounts of
not less than $1,000,000 single limit/$2,000,000 aggregate. City and Library District
each shall be listed as an additional insured on the other's policy or policies providing
such comprehensive liability coverage, and each shall obtain the agreement of its
insurer to provide notice to the other of any expiration or cancellation of coverage at
least 10 days prior to such expiration or cancellation.
DocuSign Envelope ID: 23823266-546D-425A-8F41-4B072D4CFA06
DocuSign Envelope ID: BA42716B-69B2-4A49-ADBD-4A85EAAA877F
CITY OF PORT ORCHARD
N11a MEMORANDUM OF AGREEMENT Page 13
8. City Indemnity of Llbrary District. To the extent permitted by law, City shall indemnify
and hold harmless Library District and its officers, directors, trustees, agents and
employees from any and all demands, claims, causes of action, losses, damages,
liabilities, obligations, remedies, penalties, costs and expenses (including without
limitation, reasonable attorneys' fees) arising out of, pertaining to, or in connection with
(i) any acts or omissions of City, its successors, assigns or agents, subsequent to the date
of this Agreement with respect to or in relation to the Library Facility or any of the
improvements, equipment or furnishings therein or any of the services provided
pursuant to this Agreement, and (ii) a breach of any representation or warranty made
herein.
9. Library District Indemnity -of Cit . To the extent permitted by law, Library District shall
indemnify and hold harmless City and its officers, directors, trustees, agents and
employees from any and all demands, claims, causes of action, losses, damages,
liabilities, obligations, remedies, penalties, costs and expenses (including without
limitation, reasonable attorneys' fees) arising out of, pertaining to, or in connection with
(i) any acts or omissions of Library District, its successors, assigns or agents, subsequent
to the date of this Agreement with respect to or in relation to the Library Facility or any
of the improvements, equipment or furnishings therein or any of the services provided
pursuant to this Agreement, and (ii) a breach of any representation or warranty made
herein.
10. Authority. The Parties each represent and warrant that they and/or their undersigned
agents have full power and authority to enter into and to execute this Agreement, and
that the execution, delivery and performance by the Parties of this Agreement and the
related documents is not in conflict with any law, rule, regulation, writ, judgment,
injunction, decree or award, or with the provisions of any agreement to which the
Parties or any of them may be bound, including, without limitation, their articles of
incorporation or bylaws.
11. Effective Date. This Agreement shall become effective when, and only when, it has
been duly executed by both of the Parties. This Agreement shall be in effect for one
year from the date written above. This Agreement shall renew annually upon written
consent by the Parties.
12. Termination. This Agreement may be terminated for cause by either Party on 30-days
written notice. This Agreement may be terminated without cause by either Party on 60-
days written notice prior to the end of the first year, or any subsequent annual renewal
of this Agreement.
13. Binding Agreement. This Agreement shall be binding upon and inure to the benefit of
the successors, assigns, trustees, receivers, personal representatives, legatees and
devisees of the Parties. Except as set forth herein, no person, organization or
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xnsiy�j to. A` CITY OF PORT ORCHARD
MEMORANDUM OF AGREEMENT P a g e 14
association other than Library District and City shall have any rights or claims under this
Agreement.
14. Entire Agreement. This Agreement embodies the entire agreement and understanding
between the Parties and supersedes all prior agreements and understandings related to
the subject matter hereof.
15. Counsel's Advice. The Parties represent that they have reviewed the terms of this
Agreement with their attorney, that they are authorized to enter into this Agreement,
and the Agreement is executed freely and voluntarily as of the date hereof.
16. Further Assurances. The Parties will use all reasonable efforts to execute such
documents and to take such other actions as may be reasonably necessary to
consummate and give effect to the terms of this Agreement.
17. Jurisdiction and Venue. This Agreement shall be governed by and construed in
accordance with the laws of the State of Washington. The Kitsap County Superior Court
shall have jurisdiction and venue of any action or proceeding arising out of or related to
the negotiation, execution, performance, breach or the enforcement of this Agreement.
18. Attorneys Fees to Prevailing Party. In the event of any litigation in connection with this
Agreement, the prevailing Party shall be entitled to recover its attorney's fees and other
costs and expenses, including attorney's fees in both trial and appellate courts and in
any bankruptcy proceeding.
19. Counterpart Signatures. This Agreement may be executed in several counterparts,
which when taken together shall constitute one original Agreement. A facsimile
signature shall be deemed an original signature for all purposes.
IN WITNESS WHEREOF, the Parties have duly executed and delivered this Agreement as of the date
first above written.
(The remainder of this page left intentionally blank. Signature page to follow.)
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CITY OF PORT ORCHARD
}lam MEMORANDUM OF AGREEMENT
KITSAP COUNTY RURAL LIBRARY DISTRICT
(dba KITSAP REGIONAL LIBRARY)
Dan Gottlieb, President
Board of Trustees
1301 Sylvan Way
Bremerton, WA 98310
Page 15
CITY OF PORT ORCHARD
i
Tim Matthes, Mayor
Attest:
Brandy Rinearson, City Clerk
Approved as to form:
City Atit •aRP r.
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