03/01/1995 - Minutes,6--/ /. i0. 1 I
PUBLIC WORKS DEPARTMENT
1 March 1995
TO: Public Property Committee
FM: City Enginee
RE: Committee Minutes
The Public Property Committee met at the Family Pancake House for
a breakfast meeting, 1 March 1995. Members present were Carolyn
Powers, Jack Grable and Don Morrison (substituting for John
Clauson). Mr Dick Hayes represented Kitsap Transit. Also present
was Larry Curles.
The Committee reviewed the proposed Memorandum of Understanding
with Kitsap Transit. The members agreed to recommend approval of
the document.
1. Three changes in wording were completed in
paragraph 3: the words rent, term and could were
changed to lease, duration and may, respectively.
2. Specific details will be listed in the lease. Such
an example would be the fact that Transit will be
responsible for its own office cleaning and caring
for the area in front of the office.
Transit will have an appraiser review the comparable lease rates
in downtown Port Orchard which will allow the lease negotiations
to continue uninterrupted.
Dick Hayes discussed Transit plans for the downtown area. ISTEA
funding will be sought this year to replace one or more boats for
the foot ferry. Also federal funding will be sought for the
design of Sidney Landing. Transit will formally ask the Council
on its preference of the two options of Sidney Landing. The
Council has been clear in its discussions, but this will give
Transit the formal direction of Council's intent.
The Committee discussed the DUR lease and moving the Harbor Line.
The City Attorney and City Clerk are asked for a update to the
City Council on the status of the negotiations and the expected
actions from the City.
cc Council
Clerk, Attorney
MEMORANDUM OF UNDERSTANDING
PORT ORCHARD LIBRARY ADDITION
1. The City of Port Orchard (hereinafter called the City)
has obtained block grant funding in the amount of $174,000 to
construct certain improvements to the City owned building
which houses the Port Orchard Library. This building is
immediately adjacent to the passenger ferry dock in downtown
Port Orchard. As a negotiated element of this remodeling, the
Transit Board has authorized the expenditure of $110,000.00
toward the design and construction of bathrooms and work space
to be used by Kitsap Transit staff, Horlock Ferry System, and
Transit/Horlock passengers who are authorized entry by key.
The said space will be integrated into that portion of the
existing space of the library now facing the ferry terminal
itself.
Z. The Kitsap Transit contribution is pursuant to Transit
Board agreement that Kitsap Transit will provide whatever
additional amount is needed to remodel and expand the facility
(pursuant to designs submitted by Rice Fergus Architects
Project #94465) over and above the amount obtained by the City
for the remodeling from the Block Grant program. It is
understood by all parties that the Transit Board has
authorized at this time an upper limit of $110,000.00 as an
added contribution but that this limit will be reconsidered if
the total cost of the project exceeded this amount plus the
Block Grant amount. The purpose of the Transit contribution
is to obtain long term use of restrooms and work areas lost
by Horlock in the proposed new Passenger -Only facility. Kitsap
Transit funding may exceed expected costs for such a project,
but are reasonable on a long term basis, -in light of this
critical location.
Memorandum of Understanding Page 2 of 3
3. Kitsap Transit's contribution in the project would be
structured as a prepaid lease on the space to be utilized by
Kitsap Transit, with the assumption that the space would
remain in City ownership. The terms of the lease will be
negotiated and agreed upon by the City and Transit. The terms
of the lease will address the following items:
a. The value of the floor space will be calculated
based on the current value of similar space in
downtown Port Orchard and the lease will be based
on this value. The Transit's construction
contribution will be considered as a pre -payment of
the annual rent for the term of the lease, with the
duration determined by extending the monthly value
as determined above.
b. A formula will be devised based on space usage to
calculate the cost of utilities for the Transit
area. Transit will pay for its share of utilities
based on a City billing.
C. A clause will be included to allow a fair
compensation to Transit if the City sells the
building prior to the term of the lease.
d. After the lease expires, the City and Transit may
agree to negotiate a new lease to allow continued
Transit utilization of the space.
Memorandum of Understanding Page 3 of 3
4. This document, while it defines only the general terms
under which the City and Kitsap Transit would proceed, will be
binding on both parties at the point the City Council agrees
to go forward with the bid process for this facility
remodeling.
Kitsap Transit
City of Port Orchard
ATTEST ATTEST
Date Date