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4806
KITSAP BANK
Improvements - Makayla Avenue
Engineering
LEG 12-1
03/26/2009
11/30/2009
11/01/2009
Parties agree to complete work obligations in
reasonable time
AGREEMENT BETWEEN THE CITY OF BREMERTON AND KITSAP BANK
THIS AGREEMENT is entered into between the City of Bremerton (hereinafter "the
City") and Kitsap Banle
Whereas, Kitsap Bank was a lender to Ron Burley Construction, Inc. (hereinafter
"Burley") to construct the infrastructure and single family residences in a development known as
Makayla Heights located on Makayla Avenue in Bremerton, Washington; and
Whereas, Burley defaulted on its loan to Kitsap Bank and Kitsap Bank is now the owner
of certain properties in Makayla Heights; and
Whereas, Burley had not completed some of the work items necessary to complete
Makayla A venue and accompanying infrastructure as of the date on which Kitsap Bank became
the owner of certain properties in Makayla Heights; and
Whereas, the parties acknowledge that there are significant costs in completing these
work items; and
Whereas, the City and Kitsap Bank desire to work in cooperation to complete these work
items;
NOW, THERFORE, for good and valuable consideration, the receipt and sufficiency of
which is hereby acknowledged, the parties hereby agree as follows:
1. WORK ITEMS TO BE COMPLETED.
A. The guard rail at the northerly portion of Makayla Avenue, as indicated on the
construction drawings, was not completed by Burley and has now been completed
by the City. The City has in its possession a performance bond for the installation
of the guard rail, Bond No.579214S in the amount of$7,500. The City will call the
bond for construction of the guard rail and reimbursement for the cost of
constructing the guard rail. Kitsap Bank shall not be liable to The City for any of
the costs involved with the guard rail.
B. The City will vacate the old sewer easement that traverses Parcels 1,3,4, and 5 of
the recorded subdivision (Kitsap County Auditor's File No. 200610030004) as
more specifically shown on Exhibit "A" attached hereto..
C. The City will construct a storm drainage system along the northerly side of
Roosevelt Avenue according to the City's design, practices and methods, which
will include plugging the culvert under Roosevelt Avenue to direct the storm water
through a new pipe and away from the rear of Parcels 9-15 inclusive.
D. The City will make all necessary repairs and replacements to the 8-inch diameter
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cast iron water main that runs under Makayla Avenue.
E. Kitsap Bank shall pay the City's Public Works Department $30,000 for Kitsap
Bank's portion of the costs to complete the work identified in subsections B-D of
this section within 60 days of written notification of completion of all of the work.
F. As part of the development of Makayla Heights, Burley was required to install a
street light at the intersection of Roosevelt Avenue and Makayla Avenue. In lieu of
this requirement, within 60 days of the execution of this agreement, Kitsap Bank
shall record a deed restriction against the southerly parcel that was intended for
multiple family residences (assessor's tax account number 282401-1-059-2003).
The deed restriction shall state that as one of the conditions of development of this
parcel the street light will be installed.
G. Kitsap Bank shall pay the latecomers fee of$8,000.00 for sewer service on the
southerly portion of the development. This fee shall be due and payable to the City
as Parcels 1-6 are developed by way of a $1,333.00 per parcel fee to be paid with
the sewer permit fees for each parcel. This shall be in addition to any other fees.
H. Within 60 days of the execution of this agreement, Kitsap Bank will convey the
southerly 25 feet of Parcel 9 to the City Water Utility to be used as access to the
water facilities in the tunnel. Within 30 days the City shall prepare the Quit Claim
Deed and Excise Tax Affidavit for this conveyance and submit the same to Kitsap
Bank for review, approval and execution. The City shall facilitate, support, and not
oppose any application by Kitsap Bank or any subsequent owner of Parcel 10 to
combine the reminder of Parcel 9 with Parcell O.
2. TERM. Except as set out in Section 1, the parties agree that each party will fulfill its
obligations herein in a reasonable time according to convenience of the parties.
3. MISCELLANEOUS.
A. Governing Law. This agreement shall be governed and construed in accordance
with the laws of the State of Washington. If any dispute arises between the City
and Kitsap Bank under any of the provisions of this agreement, resolution of that
dispute shall be available only through the jurisdiction, venue and rules of the
Kitsap County Superior Court, Kitsap County, Washington.
B. Attornev's Fees. In the event oflitigation to enforce any ofthe terms or provisions
herein, each party shall pay all its own costs and attorney's fees.
C. Modification. No waiver, alteration, or modification of any of the provisions of
this agreement shall be binding unless in writing and signed by a duly authorized
representative of the City and Kitsap Bank.
D. Severability. If anyone or more sections, sub-sections, or sentences of this
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agreement are held to he unconstitutional or invalid, that decision shall not affect
the validity of the remaining portion of this agreement and the remainder shall
remain in full force and effect.
E. Entire Agreement. The written provisions and terms of this agreement supersede
all prior verbal statements by any representative of the parties, and those
statements shall not be construed as forming a part of or altering in any manner
this agreement. This agreement contains the entire agreement between the parties.
IN WITNESS WHEREOF, the parties below have executed this agreement.
KITSAP BANK
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Exhibit "A"
Sewer Easement Diagram
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