HomeMy WebLinkAbout054-25 - Kitsap Community Resources (KCR) - ContractDocusign Envelope ID: 240476B9-9348-45D1-B31A-01E8121554FC
AFFORDABLE HOUSING SERVICES AGREEMENT
This Affordable Housing Services Agreement ("Agreement") is entered into by and between
Kitsap Community Resources, a Washington non-profit social services agency (hereinafter
"KCR"), and the City of Port Orchard, a Washington State municipal corporation (hereinafter the
"City" and collectively the "Parties").
I. RECITALS
A. KCR is a non-profit social services agency 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 has taken the necessary steps to take advantage of this funding source to assist the
citizens of Port Orchard by investing in housing assistance programs serving those below the
60% median income level; and
E. After reviewing applications from entities capable of providing affordable housing assistance
to the residents of Port Orchard, KCR was selected to utilize the Funds to effectively provide
housing assistance for low-income residents of the City through its existing Housing
Solutions Center, and KCR has demonstrated capability to operate such a program
effectively; and
F. The City desires to engage the services of KCR to perform the public services described
herein and undertake the proposed program;
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:
II. AGREEMENT
1. Affordable Housing Services. The City desires to engage KCR—through its existing
Housing Solutions Center —to administer an affordable housing program for the City,
AFFORDABLE HOUSING SERVICES AGREEMENT
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utilizing up to $30,000 of the Funds allocated to the City pursuant to SHB 1406 to assist
citizens of Port Orchard with rental assistance (the "Program").
A. KCR's Duties. KCR shall administer the Program, and in administering the Program,
KCR shall comply with all applicable state and local laws, and shall exclusively utilize
the Funds to provide rental assistance (or rental and utilities assistance, if utilities are
included in the rent payment), to those Port Orchard residents with an 0-60% of the Area
Median Income (AMI). Such rental assistance may only be provided for housing located
within the City of Port Orchard, and the maximum per -household cap for assistance under
the Program is Two Thousand Dollars ($2,000.00). KCR shall confirm with the City the
amount of funds available prior to awarding funds to an applicant. Additional parameters
for the Program are attached hereto as Exhibit A and incorporated herein by this
reference.
B. City's Duties. On a monthly basis, the City may provide to KCR the allocated Funds the
City receives, which shall not exceed a total amount of $30,000 for the duration of
Program. The City shall have no additional payment obligations to KCR, and if the City
receives no Funds in a particular month, KCR shall receive no Funds. Payment by the
City of the Funds under this Agreement shall occur as follows:
i. Upon identifying a qualified applicant for rental assistance KCR shall
contact the City to request a statement identifying the available Funds.
Contact may occur via e-mail or phone to the City's Finance Director (or
designee), and the statement may be provided via e-mail or letter.
ii. Upon receipt of the City's statement of available Funds, KCR shall issue
an invoice to the City, which may be transmitted via e-mail or mail. The
invoice shall not exceed the amount of available Funds.
iii. Upon receipt of an invoice, the City shall issue payment for the invoiced
amount, provided the invoiced amount shall not exceed the amount of
available Funds. The City shall have no obligation whatsoever to pay to
KCR an amount exceeding the available and allocated Funds.
iv. Of the Funds provided to KCR, KCR will be entitled to retain Eight and
Eight Tenths Percent (8.8%) of the Funds provided by the City to pay for
the administrative services associated with the Program.
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2. Duration. This Agreement will commence upon mutual execution of this Agreement, and will
expire upon depletion of the allocated Funds ($30,000) or on December 31, 2026, whichever
occurs first, unless earlier terminated t by one of the Parties pursuant to this Agreement;
provided, the parties may extend the Agreement for one additional year term by execution of
an addendum to this Agreement.
3. Termination. Either party may terminate this Agreement with or without cause upon thirty
(30) days' advance written notice to the other party. In the event of termination, KCR will
perform such additional work as is necessary for the orderly closing out of the Program, and
will be entitled to use any remaining allocated Funds transmitted by the City for the month in
which the termination is effective to provide affordable housing assistance and
reimbursement of the actual costs associated with closing out the Program up to the total
allocated amount of $30,000. Upon expiration of the Agreement, all unused Funds shall be
returned to the City.
4. Insurance.
A. The Consultant 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 the Consultant, its agents,
representatives, or employees.
B. No Limitation. Consultant's maintenance of insurance as required by the agreement shall
not be construed to limit the liability of the Consultant 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. Consultant shall obtain insurance of the types described
below:
1. Automobile Liability insurance covering all owned, non -owned, hired and leased
vehicles. Coverage shall be written on Insurance Services Office (ISO) form CA 00
01, or a substitute form providing equivalent liability coverage. If necessary, the
policy shall be endorsed to provide contractual liability coverage.
2. 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 Consultant's Commercial General Liability insurance
policy with respect to the work performed for the City.
AFFORDABLE HOUSING SERVICES AGREEMENT
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3. Workers' Compensation coverage as required by the Industrial Insurance laws of the
State of Washington.
4. Professional Liability insurance appropriate to the Consultant's profession.
D. Minimum Amounts of Insurance. Consultant shall maintain the following insurance
limits:
1. Automobile Liability insurance with a minimum combined single limit for bodily
injury and property damage of $1,000,000 per accident.
2. Commercial General Liability insurance shall be written with limits no less than
$1,000,000 each occurrence, $2,000,000 general aggregate.
3. 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.
4. Professional Liability insurance shall be written with limits no less than $1,000,000
per claim and $1,000,000 policy aggregate limit.
E. Other Insurance Provisions. The insurance policies are to contain, or be endorsed to
contain, the following provisions for Automobile Liability, Professional Liability and
Commercial General Liability insurance:
1. The Consultant'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 the Consultant's insurance and shall not contribute with it.
2. The City will not waive its right to subrogation against the Consultant. The
Consultant's insurance shall be endorsed acknowledging that the City will not waive
their right to subrogation. The Consultant'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. The Consultant'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.
4. If the Professional Liability Coverage is written on a occurrence form. If the
Professional Liability coverage is only available on a "claims made" basis, then then
a minimum of a three (3) year extended reporting period shall be included with the
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claims made policy, and proof of this extended reporting period provided to the City.
If the Consultant is not able to purchase the three (3) year extended reporting period
endorsement then as an option the Consultant shall agree that if the Consultant's firm
is dissolved or merged, then the Consultant shall purchase before the dissolution or
merger of the Consultant's company, the three (3) year extended reporting period
coverage for the Professional Liability coverage.
F. Acceptability of Insurers. Insurance is to be placed with insurers with a current A.M.
Best rating of not less than A:VII.
G. Verification of Coverage. Consultant 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 the Consultant
before commencement of the work.
5. Indemnification
A. Indemnification — City. The City does hereby agree to save harmless and defend KCR
from all claims and liability due to the negligent acts, errors, or omissions of the City, its
agents and/or employees, except for claims caused by the sole negligence of KCR. Such
indemnity will include, but not be limited to all out-of-pocket expenses incurred by KCR,
including attorney's fees, in the event the City fails or refuses to accept the tender of any
claims brought against KCR, the basis for which are negligent acts, errors or omissions of
the City, its agents and/or employees.
B. Indemnification — KCR. KCR does hereby agree to save harmless and defend the City
from all claims and liability due to the negligent acts, errors or omissions of KCR, 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 KCR fails or refuses to accept the tender
of any claims brought against the City, the basis for which are negligent acts, errors or
omissions of KCR, its agents and/or employees.
C. Should a court of competent jurisdiction determine that this Agreement is subject to
RCW 4.24.115, then, in the event of liability for damages arising out of bodily injury to
persons or damages to property caused by or resulting from the concurrent negligence of
KCR and the City, its officers, officials, employees, and volunteers, KCR's liability,
including the duty and cost to defend, hereunder shall be only to the extent of the KCR's
negligence.
D. The foregoing indemnity is specifically and expressly intended to constitute a waiver of
each party's immunity under Washington's Industrial Insurance Act, RCW Title 51, as
respects the other party only, and only to the extent necessary to provide the indemnified
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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 / 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 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. Any notices required to be given by the City to KCR, or by KCR to the City, will be
in writing and delivered to the Parties at the following addresses:
KCR City of Port Orchard
Anthony Ives, Executive Director Robert Putaansuu, Mayor
Housing & Community Support Services 216 Prospect Street
1201 Park Avenue Port Orchard, WA 98366
Bremerton, WA 98337
8. Compliance with Laws. KCR and the City 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 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. KCR 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, KCR agrees to assist the City to meet the City's obligations under the
Public Records Act, Ch. 42.56 RCW, at KCR's sole cost.
10. Reporting. KCR will submit to the City on a quarterly basis a detailed accounting of the
costs of Program operations. KCR 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).
AFFORDABLE HOUSING SERVICES AGREEMENT
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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 KCR 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 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. KCR 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. KCR 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.
AFFORDABLE HOUSING SERVICES AGREEMENT
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17. Independent Parties. 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 COMMUNITY RESOURCES
Adopted this 11 day of August , 2025
cuSigned by:
at&&tL1 (vu,s
KCR Executive Director
FOR THE CITY OF PORT ORCHARD
Adopted this 27 day of May , 2025
Signed by:
I°e� �u�aialn,su�
3ggano�Gzrsun�n
Robert Putaansuu, Mayor
ATTEST/AUTHENTICATED:
Brandy Wallace, MMC, City Clerk
APPRQbVED AS TO FORM:
Charlotte A. Archer, City Attorney
AFFORDABLE HOUSING SERVICES AGREEMENT
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EXHIBIT A
Statement of Work
The contract award will provide funds for the administration of the City of Port Orchards
Affordable Housing Program utilizing the Funds allocated to the City pursuant to SHB 1406 to
assist citizens of Port Orchard with rental assistance based on the following criteria:
• Must be a resident of the City of Port Orchard, WA
• Housing must be within the city limits of Port Orchard, WA
• lncome Verification (Household must be under 60% AMI
• Must have pay or vacate notice or homeless verification
• Must provide lease or sample lease if moving in
• Use the HUD definition of homelessness (Living on street, shelter, car, place not meant
for habitation, or fleeing DV
Funds awarded can be used for the following:
• Rent or rent/utilities if utilities are included with rent
• Limited to no more than $2,000 per household
• Limited to a total award for the Program of $30,000
Kitsap Community Resources will maintain data in the HMIS system on this program and
provide quarterly reports to the City on the use of the funds and number of households served.
AFFORDABLE HOUSING SERVICES AGREEMENT
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