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HomeMy WebLinkAbout01/16/2013 AGENDA I ' � I I man c CITY COUNCIL 345 6th Street, Suite 600, Bremerton, WA 98337 ❑ Phone (360) 473 -5280 ** *AMENDED * ** JANUARY 16, 2013 CITY COUNCIL MEETING AGENDA 1 BRIEFING 5 00 — 5 30 P M in COUNCIL CONFERENCE ROOM 603 A General Council Business 2 CALL TO ORDER 5 30 P M in FIRST FLOOR CHAMBERS A Pledge of Allegiance B Invocation 3 PUBLIC RECOGNITION 4 MAYOR'S REPORT 5 CONSENT AGENDA A Claims & Check Register B Minutes of Meeting — January 2, 2013 C Minutes of Special Meeting — January 9, 2013 D Appointment of Colleen Smidt to the Parks & Recreation Commission E Appointment of Patrick Watson to the Parks & Recreation Commission F Renewal of 5 -Year Service Contract with Kitsap County for BKAT Services (KC 458 -12) 6 PUBLIC HEARING A Public Hearing and Ordinance No 5205 to amend the Bremerton Municipal Code related to the Zoning Code for Medical Marihuana Collective Gardens 7 GENERAL BUSINESS A Purchase and Sale Agreement with Boat Launch Investments, LLC for property located at 1116 Charleston Beach Road B Agreement with Kitsap County for Incarceration of City Prisoners C Resolution No 3186 to support Kitsap County's enactment of a 1/10 of 1% Sales and Use Tax in Kitsap County D Re- approval of Amendment No 2 to Real Estate Purchase and Sale Agreement with Lorax Partners, LLC 8 COUNCIL MEMBER REPORTS 9 EXECUTIVE SESSION 15- minutes to discuss "Potential Litigation" per RCW 42 30 110(1)(i) Action is anticipated 10 ADJOURNMENT OF CITY COUNCIL BUSINESS MEETING ® Americans with Disabilities Act (ADA) accommodations provided upon request Those requiring special accommodations please contact the City Clerk at (360) 473 -5323 by noon on the day preceding the Meeting BREMERTON CITY COUNCIL 1 MEETING SPEAKERS LIST PL EASE PRINT YO NAME BELOW IF YOU WISH YOUR COMMENTS TO BE INCLUDED IN THE RECORD Eric- ka, m � R 2 b e , 4- 1 r-fa- P ,f-- r p®C o P/ e, REQUESTS FOR INFORMATION MUST BE SUBMITTED IN WRITING TO THE CLERIC THANK YOU I SA AGENDA BILL CITY OF BREMERTON CITY COUNCIL ............. ............................... 5 0. 0 0 000.E ■ .. 0 0 0 0 .. \\ 0 N M E x N ...... 0 0. 0. 0 0■0 SUBJECT Claims & Check Register Study Session Date COUNCIL MEETING Date January 16, 2013 Department Financial Services Presenter Shannon Conn Phone 473 -5323 SUMMARY Approval of the following checks and electronic fund transfers 1) Check #'s 351683 through 351879 and EFT's 12485 through 12530 in the amount of $2,404,089 93 2) Regular Payroll for the pay period ending December 31, 2012 in the amount of $722,820 88 ATTACHMENTS Check and Electronic Transfers Summaries FISCAL IMPACTS (Include Budgeted Amount) STUDY SESSION AGENDA N No Discussion ❑ Full Presentation STUDY SESSION ACTION ❑X Consent Agenda ❑ General Business ❑ Public Hearing RECOMMENDED MOTION Move to approve consent agenda as presented COUNCIL ACTION ❑ Approve ❑ Deny ❑ Table ❑ Continue ❑ No Action Form Updated 11/02/12 AGENDA BILL CITY OF BREMERTON CITY COUNCIL 158 ■■ eeeeeeeeeeeeeeeeeeeeeeeeeeeeeseeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeoeeeeeeeeeeaeseeeeeeeeee SUBJECT COUNCIL MEETING Date January 16, 2013 Department City Council Minutes of Meeting Presenter Greg Wheeler January 2, 2013 Council President Phone (360) 473 -5280 SUMMARY Attached is a summary of the City Council Meeting ATTACHMENTS Meeting Minutes FISCAL IMPACTS (Include Budgeted Amount) N/A STUDY SESSION AGENDA ❑x No Discussion ❑ Full Presentation STUDY SESSION ACTION Nx Consent Agenda ❑ General Business ❑ Public Hearing RECOMMENDED MOTION - Move to approve the Consent Agenda as presented COUNCIL ACTION ❑ Approve ❑ Deny ❑ Table ❑ Continue ❑ No Action Form Updated 11/02/12 DIGITAL RECORDING CITY COUNCIL MEETING MINUTES Wednesday, January 2, 2013 The weekly meeting of the City Council of the City of Bremerton was called to order Wednesday, January 2, 2013, at 5 00 PM in Council Conference Room 603 of the NORM DICKs GOVERNMENT CENTER, 345 6th Street, Bremerton, Washington, with Council President Jim McDonald presiding Council Members present were Nick Wofford, Eric Younger, Carol Arends, Faye Flemister, Greg Wheeler, Roy Runyon, Adam Brockus, and Leslie Daugs Also present were City Attorney Roger Lubovich, City Clerk Shannon Conn, and Legislative Assistant Lori Smith A COUNCIL BRIEFING was held to discuss General Council Business at 5 00 PM in the Council Conference Room At 5 30 PM the meeting moved to the Meeting Chambers The Pledge of Allegiance was led by Council Member Leslie Daugs followed by the invocation provided by Pastor Roger Hennigan of Apostolic Life Tabernacle COUNCIL OFFICER ELECTIONS President McDonald opened nominations for Council President/Mayor Pro Tempore Faye Flemister nominated Greg Wheeler With no further nominations, President McDonald asked for a motion 05:32:50 M /S /C (Brockus /Daugs) Move to elect Greg Wheeler as 2013 Council President/Mayor Pro Tempore Voted in Favor of Motion McDonald, Daugs, Brockus, Wheeler, Flemister, Arends, Younger, Wofford Abstained Runyon Motion carried 8 -Yes, 1- Abstention Greg Wheeler was elected Council President/Mayor Pro Tempore for the year 2013, received the gavel, and was then seated as the chair for the remainder of the meeting President Wheeler then opened nominations for Council Vice - President Adam Brockus nominated Faye Flemister With no further nominations, President Wheeler asked for a motion 05:35:08 M /S /C (Arends /McDonald) Move to elect Faye Flemister as 2013 Council Vice President Voted in Favor of Motion Daugs, Brockus, Flemister, Arends, Younger, Wofford, McDonald, Wheeler Abstained Runyon Motion carried 8 -Yes, 1- Abstention Faye Flemister was elected Council Vice - President for the year 2013 PUBLIC RECOGNITION Robert Parker Owner of the Printer People, reminded the Council Members to continue on their stated goal of improving City streets and school crosswalk safety MAYOR'S REPORT — Mayor Patty Lent • Announced that a meeting will be held with the residents and business owners affected by the construction on 4 Street, City Council Reg Mtg Minutes Wednesday, January 2, 2013 Page 2 of 3 • Reported that the Youth Wellness Group is seeking non - profit status so they can lead the demolition and later construction of the wellness campus, the Marvin Williams Youth Center is expected to break ground, and the Boys and Girls Club Teen Center is expected to open in June, • Looked forward to a Ferry Community Partnership Meeting on Saturday, January 5 at Noon in the Meeting Chambers, • Invited Council Members to attend a "Sustainable Solutions Toolbox" Workshop sponsored by the Clean Technology Trade Alliance on January 14 from 10 00 AM to 1 00 PM at Kitsap Conference Center, and • Announced that the Collective Visions Gallery will be hosting its Annual Awards Ceremony on Saturday, January 19 at 6 00 PM in the Meeting Chambers CONSENT AGENDA 6A — Claims & Check Register Check Numbers 351562 through 351682, and EFT -12460 through EFT -12484 in the amount of $1,565,583 95, Regular Payroll (Pay Out) for the pay period ending December 15, 2012 in the amount of $15,555 94, and Retiree Payroll for the pay period ending December 31, 2012 in the amount of $62,910 99 613 — Minutes of Meeting — December 19, 2012 There were no comments from the public 05:46:10 M /S /C /U (McDonald /Runyon) Move to approve the CONSENT AGENDA as presented GENERAL BUSINESS — There were no General Business Items tonight COUNCIL MEMBER REPORTS Leslie Daugs wished everyone a great 2013 Adam Brockus he also invited everyone to the Ferry Community Partnership Meeting this Saturday Roy Runyon announced that per a requirement in the City of Bremerton Charter, he is required to vacate his seat since he will no longer be living in District 4 effective January 31, 2013 Jim McDonald also wished everyone a Happy New Year, and responded to Mr Parker's comments by pointing out the Council has received feedback from the School District on areas that could benefit from sidewalk improvements and that $25,000 was allocated in the budget for these projects Faye Flemister wished everyone a happy and prosperous 2013 Carol Arends congratulated new President Wheeler and Vice - President Flemister, and commented on the pretty Christmas tree that was placed in the Charleston area over the holidays Eric Younger commended former President McDonald for a fob well done, looked forward to new goals and to attain current goals, and was pleased at the immediate response from the City when he reported a pothole Nick Wofford wished everyone a healthy and prosperous New Year Greg Wheeler thanked Council Member Jim McDonald for his term at Council President this past year, congratulated Council Member Faye Flemister for being elected Council Vice President, and announced that he would be the key -note speaker at this year's Annual Martin Luther King, Jr Celebration on Monday, January 21, 2013 beginning at 10 00 AM at the President's Hall He further referred to the upcoming vacancy for District 4, and encouraged anyone qualified and interested, to please apply to fill the vacancy for the remainder of the year City Council Reg Mtg Minutes Wednesday, January 2, 2013 Page 3 of 3 With no further business, President Wheeler adjourned the Council Meeting at 5 57 PM The Council then reconvened for a Study Session in the 6 Floor Council Conference Room for a briefing by the 2013 Council President, and to discuss "General Council Business" Prepared and Submitted by d5qWg LORI SMITH Legislative Assistant Attest SHANNON CORK Interim City Clerk GREG WHEELER, City Council President GW SC Is cg AGENDA BILL CITY OF BREMERTON CITY COUNCIL 5a SUBJECT. COUNCIL MEETING Date January 16, 2013 Department City Council Minutes of Special Meeting (Study Session) Presenter Greg Wheeler January 9, 2013 Council President Phone (360) 473 -5280 SUMMARY- Attached is a summary of the City Council Meeting ATTACHMENTS. Meeting Minutes FISCAL IMPACTS (Include Budgeted Amount) N/A STUDY SESSION AGENDA ❑x No Discussion ❑ Full Presentation STUDY SESSION ACTION Nx Consent Agenda ❑ General Business ❑ Public Hearing RECOMMENDED MOTION Move to approve the Consent Agenda as presented COUNCIL ACTION ❑ Approve ❑ Deny ❑ Table ❑ Continue ❑ No Action Form Updated 11/02/12 DIGITAL RECORDING CITY COUNCIL SPECIAL MEETING MINUTES Wednesday, January 9, 2013 A Special Meeting of the City Council of the City of Bremerton was called to order in the Council Conference Room of the NORM DICKS GOVERNMENT CENTER, 345 6th Street, Bremerton, Washington, Wednesday, January 9, 2013, at 4 00 PM, with Council President Greg Wheeler presiding Council Members present were Nick, Wofford, Carol Arends, Faye Flemister, Roy Runyon, Adam Brockus, Leslie Daugs, and Jim McDonald Council Member Eric Younger was absent Lori Smith, Legislative Assistant, was present to provide staff support President Wheeler emphasized that the Special Meeting was open to the public but there would be no opportunities for input or participation, and announced that approved items by Council will be placed on the January 16, 2013 Council Meeting Agenda, or as indicated A NO PRESENTATIONS - The following items are budgeted items and /or have been reviewed by the appropriate Council Committee 1 Appointment of Colleen Smidt to the Parks & Recreation Commission Consent Agenda 2 Appointment of Patrick Watson to the Parks & Recreation Commission Consent Agenda 3 Renewal of 5 Year Service Contract with Kitsap County for BKAT Services (KC 458 -12) Consent Agenda 4 Purchase and Sale Agreement with Boat Launch Investments, LLC for property located at 1116 Charleston Beach Road General Business 5 Agreement with Kitsap County for Incarceration of City Prisoners General Business 6 Re- approval of Amendment No 2 to the Real Estate Purchase and Sale Agreement with Lorax Partners, LLC Consent Agenda B FULL DISCUSSION ITEMS 7 Proposed Public Hearing and Ordinance to Adopt Medical Marihuana Collective Garden Regulations Public Hearing 8 Purchase of Sensus Water Meter Transceiver Units (MXU's) from Ferguson Waterworks Postponed until January 23 9 Resolution to support Kitsap County's enactment of a 1/10 of 1% Sales and Use Tax in Kitsap County General Business C GENERAL COUNCIL BUSINESS General Council Business was briefly discussed President Wheeler called a brief recess from 6 00 to 6 15 PM, and then the Council reconvened in the Mayor's Conference Room for the remainder of the meeting D DISCUSSION ON UTILITY RATE STUDY The Council Members continued their discussion from December 12, 2013 on the Utility Rate Study with Consultants with the FCS Group, and several members of the Utility Rate Study Advisory Committee City Council Special Meeting Minutes Wednesday, January 9, 2013 Page 2 of 2 With no further business, President Wheeler adjourned the Council Special Meeting at 8 00 PM Pre red and Submitte by L RI SMITH Legislative Assistant Attest SHANNON CORK City Clerk GREG WHEELER, City Council President GW SC Is cg AGENDA BILL CITY OF BREMERTON 451) CITY COUNCIL ■■ eeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeee SUBJECT: Appointment to the Parks & Study Session Date January 9, 2013 Recreation Commission COUNCIL MEETING Date. January 16, 2013 Department Executive Presenter Mayor Lent Phone 473 -5266 SUMMARY: There are two vacancies on the Parks and Recreation Commission due to the resignations of Terry Boyle and Joan Dingfield It is recommended that Colleen Smidt be appointed to fill one of the vacancies ATTACHMENTS: Ms Smidt's application for appointment is available in the Mayor's office FISCAL IMPACTS (Include Budgeted Amount) No fiscal impacts STUDY SESSION AGENDA ® No Discussion ❑ Full Presentation STUDY SESSION ACTION: ® Consent Agenda ❑ General Business ❑ Public Hearing RECOMMENDED MOTION: Move to appoint Colleen Smidt to the Parks and Recreation Commission COUNCIL ACTION: ❑ Approve ❑ Deny ❑ Table ❑ Continue ❑ No Action Form Updated 11/02/12 AGENDA BILL CITY OF BREMERTON SE CITY COUNCIL ■■ eeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeee SUBJECT: Appointment to the Parks & Study Session Date January 9, 2013 Recreation Commission COUNCIL MEETING Date January 16, 2013 Department Executive Presenter Mayor Lent Phone 473 -5266 SUMMARY: There are two vacancies on the Parks and Recreation Commission due to the resignations of Terry Boyle and Joan Dingfield It is recommended that Patrick Watson be appointed to fill one of the vacancies ATTACHMENTS: Mr Watson's application for appointment is available in the Mayor's office FISCAL IMPACTS (Include Budgeted Amount) No fiscal impacts STUDY SESSION AGENDA ® No Discussion ❑ Full Presentation STUDY SESSION ACTION: © Consent Agenda ❑ General Business ❑ Public Hearing RECOMMENDED MOTION: Move to appoint Patrick Watson to the Parks and Recreation Commission COUNCIL ACTION: ❑ Approve ❑ Deny ❑ Table ❑ Continue ❑ No Action Form Updated 11/02/12 AGENDA BILL CITY OF BREMERTON *5 F CITY COUNCIL ■■ �eee���ree��ee��ee���e����e���e�e����eeeee����eeeee����ee����e�e����e�������ee��e�e�ee SUBJECT: BKAT Service Contract for Study Session Date 1/9/13 Kitsap County (KC 458 -12) COUNCIL MEETING Date 1/16/13 Department Finance Presenter Char Burnette Phone 308 -0139 SUMMARY: This is a renewal of a current service contract with Kitsap County for Bremerton Kitsap Access Television (BKAT) services The Contract presented is a 5 year contract, January 1, 2013 — December 31,2017 ATTACHMENTS: Contract KC 458 -12 FISCAL IMPACTS (Include Budgeted Amount) $45,000 00 annually beginning in 2013 — with a CPI increase annually on January 1 thereafter STUDY SESSION AGENDA ❑x No Discussion ❑ Full Presentation STUDY SESSION ACTION: ® Consent Agenda ❑ General Business ❑ Public Hearing RECOMMENDED MOTION: Move to approve the BKAT Service Contract with Kitsap County and authorize the Mayor to finalize and execute the agreement with substantially the same terms and conditions as presented COUNCIL ACTION: ❑ Approve ❑ Deny ❑ Table ❑ Continue ❑ No Action Form Updated 11/02/12 BREMERTON KITSAP ACCESS TELEVISION SERVICE CONTRACT INTER -LOCAL AGREEMENT KC- 458 -12 This agreement is made and executed on this day of 2012, by and between the City of Bremerton (hereinafter referred to as the "City ") who operates Bremerton Kitsap Access Television (hereinafter referred to as "BKAT ") and Kitsap County (hereinafter referred to as the "County ") who agree as follows Section 1 —Scope of Services The City, through Bremerton Kitsap Access Television (hereinafter referred to as BKAT) shall provide governmental access television services including but not limited to video production and program scheduling related to the County's commitment's as outlined in this Agreement BKAT shall provide technical support, consultation, pre- production and post- production services, properly trained staff and volunteers including videographer for field assignments, proceeding /event DVD duplication and delivery no later than the 2 nd business day following completion of project to program sponsor, and coordination of programming hours and studio time BKAT's specified numbers of service commitments covered by this agreement are herein established Description ocation Schedule Number per Year Kitsap County Second & Fourth County Administration Monday of each Commission Building month 24 _ County/ Second & Fourth Kitsap County Administration Thursdays Hearing Examiner Building 24 Special Meetings / Public Hearings Outside of Normal As requested Chambers Up to 3 per year Kitsap Regional Norm Dicks 4 th Tues every Coordinating Government other month (and 6 Council Center any special meetings or public hearings Kitsap County County Commission Administration As scheduled by Budget Building the County 10 Hearings 2 per month, Commissioners Various rotating between Corner Commissioners 18 Around Kitsap or Various Locations Specific County throughout the Dept program County As requested 6 The County shall retain control over program content and designate one person to authorize and schedule programs produced under this agreement MAT works with the County to establish regular and consistent playback times for all programming produced under this contract A schedule of regularly scheduled playback times for recurring programming is included in Appendix A Production requests by the County that exceed the aggregate value of those covered by this service contract will be taken on a per production and availability basis Fees for these services are separate from this agreement and billed at $100 00 per hour Cost of duplicating a DVD beyond the copy provided with each production is $35 00 Content of all County programs /meetings and projects with MAT are the sole property of the County The County has all rights for reuse, rebroadcast or any other use of programming completed under this contract Any request for public disclosure of any information produced through this agreement shall be forwarded to the County's Public Disclosure Coordinator for a response Section 2— Payment Obligations In consideration of the services provided pursuant to this Agreement, Kitsap County shall pay Bremerton an annual amount of $45,000 00 The City will submit quarterly invoices and a detail worksheet on April, July, October and December to the County The City will use the annual amount divided by four to prepare quarterly billings to the County beginning with April billing each year Kitsap County is responsible to ensure payments are completed within thirty (30) days of invoice receipt Effective on January 1 of each year thereafter, the amount will be adjusted by the June to June Seattle- Tacoma - Bremerton CPI -U index In no instance shall the recalculated fee drop below $45,000 00 Services rendered beyond the scope of this Agreement, as set forth in Section 1, shall be billed in addition to the annual amount at the rates established and published by BKAT Section 3 —Tenn This Service Agreement shall be for a period of five (5) years commencing January 1, 2013 and terminating December 31, 2017 The parties may extend the term of this Agreement by written agreement of the parties prior to the close of the term of the Agreement The extension shall be for a one -year term The parties may renew the one -year extension on an annual basis Section 4^Termination Either party to this Service Agreement may terminate the agreement without cause upon giving one hundred twenty (120) days written notice to the other party S cfon 5— Severability_ In the event any provision in this Agreement is deemed unconstitutional, illegal, or void as a matter of law, the parties agree that all of the provisions of this Agreement that are not affected by such occurrence shall constitute a full and complete Agreement between the parties , Section 6— Indemnify and Hold Harmless The County and City shall each indemnify, defend, and hold the other harmless from and against any and all claims, suits, actions, causes of action, losses, damage, or liabilities arising or resulting from any alleged negligent or intentional acts or omissions arising out of the performance or non performance of their respective responsibilities as set out in this agreement Solely for the purposes of this section, each party waives its immunity under Title 51 (Industrial Insurance) of the Revised Code of Washington and acknowledges that this waiver was mutually negotiated by the parties This section shall survive termination or expiration of this agreement S ct'on 7— Notices All notices and other communications to be given by either party may be given in writing addressed to the appropriate party as follows Public Access Manager BKAT (Bremerton Kitsap Access Television) 7266 Tibardis Rd NW Bremerton, WA 98311 Kitsap County Department of Information Services & Facilities Maintenance Attention Public Communications Manager 614 Division St MS -7 Port Orchard, WA 98366 Dated this day of , 2013 Dated this day of , 2013 KITSAP COUNTY CITY OF BREMERTON BOARD OF COMMISSIONERS Patty Lent, Mayor Josh Brown, Chair APPROVED AS TO FORM Charlotte Garrido, Commissioner - Roger A - Lubovich, City Attorney Robert Gelder, Commissioner ATTEST: Dana Daniels, Clerk of the Board } S 1 Z Appendix A — Programming Broadcast Schedule i fl 7 Kitsap County Commissioners ' • Regular Meetings on the 2 nd and 4 Monday air live • Recorded programs air every Tuesday at 1 00 a m and 11 00 a m t • Recorded programs air on the 1 and 4 Monday at 7 00 p m KitsaR County Hearing Examiner • Recorded programs air every Wednesday at 12 00 p m 3 Kitsao Regional Coordinating Council • Recorded programs for each meeting airs a minimum of four (4) times Because the dates of the meeting vary the airing schedule also varies When meeting dates are announced airing dates will be provided to the Kitsap County Coordinating Council and Kitsap County 3 KC Budget Hearings t • Recorded programs for each hearing will air a minimum of four (4) times The exact dates and times for airing will be established prior to the beginning of the hearings i Commissioner's Corner • Recorded programs air every Monday at 6 30 p m and every Tuesday at 2 00 p m Around Kitsap • Recorded programs air every Monday at 6 00 p m and every Tuesday at 1030am _ a f 1 i� I +t x i a i 1 { t P k A S t � 1 AGENDA BILL CITY OF BREMERTON 6A CITY COUNCIL ......................................................... ............................... SUBJECT: Public Hearing on Ordinance Study Session Date _January 9, 2013 No 5205 to amend the BMC for medical COUNCIL MEETING Date January 16, 2013 marijuana collective gardens Department DCD Presenter Allison Daniels Phone 360 473 5845 SUMMARY: The action before Council is to conduct a public hearing and adopt an Ordinance to amend BMC Section 20 40 160 and Chapter 20 42 BMC of the Zoning Code relating to medical marihuana collective gardens within the City and to add a definition for medical marihuana collective gardens ATTACHMENTS: A Proposed Ordinance B Staff Memo — Letters from City Attorney, United States Attorney, and Department of Justice C Planning Commission Findings of Fact D Planning Commission Minutes of November 13, 2012 Special Meeting E Comparison of Jurisdictions FISCAL IMPACTS (Include Budgeted Amount) None STUDY SESSION AGENDA ❑ No Discussion ® Full Presentation STUDY SESSION ACTION: ❑ Consent Agenda ❑ General Business ® Public Hearing RECOMMENDED MOTION: Move to pass Ordinance No 5205 amending the Zoning Code to prohibit medical marijuana collective gardens within any zoning district of the City COUNCIL ACTION: ❑ Approve ❑ Deny ❑ Table ❑ Continue ❑ No Action Form Updated 11/02/12 ORDINANCE NO. 5205 AN ORDINANCE of the City Council of the City of Bremerton, Washington, amending Section 20 40 160 and Chapter 20 42 of the Bremerton Municipal Code to specify that medical marijuana collective gardens are not permitted in any zoning districts within the City of Bremerton WHEREAS, Initiative Measure No 692, approved by the voters of Washington State on November 3, 1998 and now codified as Chapter 69 51A RCW, created an affirmative defense for "qualifying patients" to the criminal charge of possession of marijuana (cannabis), and WHEREAS, in 2011 the Washington State Legislature passed a bill, Engrossed Second Substitute Senate Bill 5073 (E2SSB 5073), that, among other things, authorized "collective gardens" allowing qualifying patients the ability to collectively grow up 45 marijuana plants, and WHEREAS, on April 29, 2011, Governor Gregoire vetoed portions of E2SSB 5073 but signed into law the amendment authorizing collective gardens, and WHEREAS, E2SSB 5073, as approved, further authorized cities to adopt and enforce zoning requirements regarding production and processing of medical marijuana, and WHEREAS, marijuana remains a controlled substance under the Federal Controlled Substances Act, 21 U S C Ch 13 and the U S Department of Justice and United States Attorneys in the State of Washington have continued to maintain that marijuana is illegal to possess, distribute, dispense or manufacture under federal law, and WHEREAS, the City Council held a public hearing on August 17, 2011 to adopted Ordinance No 5159 which determined that the City's Zoning Code does not adequately address the impacts of the placement and uses of medical marijuana collective gardens and therefore established a six (6) month moratorium on the placement and uses of medical marijuana collective gardens within the City, and WHEREAS, the moratorium established by Ordinance No 5159 became effective September 1, 2011 and expired on February 29, 2012, and WHEREAS, the City Council held a public hearing on February 1, 2012 for Ordinance No 5178 to extend the moratorium 6- months to expire on August 31, 2012, and WHEREAS, the City Council held a public hearing on August 15, 2012 for Ordinance No. 5192 to extend the moratorium 6- months to expire on February 28, 2013, and 1 Zoning Code Amendment — Collective Gardens WHEREAS, the City of Bremerton has established a procedure for amending the Zoning Code in Title 20 18 020 (d) of the Bremerton Municipal Code (BMC), which requires amendments to the Zoning Code to be both consistent with the goals and policies of the Comprehensive Plan and to be consistent with other applicable City, state and federal codes, regulations and ordinances, and WHEREAS, the amendments are consistent with the City's Comprehensive Plan, County Wide Planning Policies, The State Growth Management Act, and other applicable regulations and ordinances, and WHEREAS, on October 31, 2012 the proposed Zoning Code amendments relating to medical marihuana collective garden was circulated to the State Agencies for the requisite 60- day review and comment period and the City received conformation on the November 5, 2012 that the notice was received, and WHEREAS, on November 5, 2012 a State Environmental Policy Act Determination of Nonsigmficance was issued and published in the Kitsap Sun for the proposed action with an administrative appeal deadline on December 3, 2012 and no appeals were filed, and WHEREAS, on November 13, 2012 the City of Bremerton Planning Commission considered staff's recommendations, received testimony, and recommended amending the Zoning Code as set out in this Ordinance, and WHEREAS, the public was notified by legal advertisement in the Kitsap Sun of the opportunity to make comment and participate in the public hearing by the City Council; and WHEREAS, City Council took public testimony from interested parties and considered all written and oral arguments at a duly advertised public hearing for the Zoning Code amendments on January 16, 2013, NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF BREMERTON, WASHINGTON, DOES HEREBY ORDAIN AS FOLLOWS SECTION 1. Recitals Incorporated The recitals set forth in this ordinance are hereby incorporated as if fully set forth herein SECTION 2. The findings and conclusions adopted by the Planning Commission attached hereto as Exhibit A are adopted and incorporated as if set forth fully herein SECTION 3. Section 20 40 160 in the Bremerton Municipal Code titled "Prohibited Uses" is hereby amended to prohibit a medical marihuana collective garden as follows- 2 Zoning Code Amendment — Collective Gardens 20.40.160 PROHIBITED USES. (a) No use that is illegal under local, state, or federal law shall be allowed in any zone within the City (b) Any use not listed as a permitted, conditional or accessory use by the zone; or any use not determined to be a similar use pursuant to BMC 20 40 150, or any use not found to be an allowable accessory use to the principle use shall be prohibited within that zone unless allowed otherwise by law (c) A collective ,garden, as defined in BMC.20 42 040, is prohibited in all zoning districts of the City. (1) Any violation of this section is declared to be a public nuisance per se, and shall be abated by the city attorney under applicable provisions of this code or state law, including, but not limited to, the provisions of Chapter 104 BMC, (2) Nothing in this section is intended to authorize, legalize, or permit the establishment, operation, or maintenance of any business, building, or use which violates an y city, state, or federal law or statute SECTION 4. Section 20 42 020 in the Bremerton Municipal Code titled "List of Defined Terms" is hereby amended to add " Collective ar�den to the list in alphabetical order between the two existing words "Co- location" and "Community Facility" SECTIONS. Section 20 42 040 in the Bremerton Municipal Code titled "Definitions" is hereby amended to include a new definition for "Collective garden" between the two existing definitions, "Co- location" and "Community Facility" 20.42.040 DEFINITIONS. "Collective garden" means gardens established and/or maintained for the rig, production, transportation, and delivery of cannabis, by qualifying patients, for medical use, as defined in RCW 69 51A 085, as currently enacted and hereinafter amended SECTION 6. Severabcicty If any one or more sections, sub - sections, or sentences of this Ordinance are held to be unconstitutional or invalid, such decision shall not affect the validity of the remaining portion of this Ordinance and the same shall remain in full force and effect SECTION 7. Effective Date. This ordinance shall take effect and be in force ten (10) days from and after its passage, approval and publication as provided by law PASSED by the City Council the day of , 2013 Council President 3 Zoning Code Amendment — Collective Gardens Approved this day of , 2013 PATTY LENT, Mayor ATTEST APPROVED AS TO FORM SHANNON CORIN, City Clerk ROGER A LUBOVICH, City Attorney PUBLISHED the day of , 2013 EFFECTIVE the day of 9 2013 ORDINANCE NO R \Legal\Legal \Ordinances \Community Development\Collective Gardens doc 4 Zoning Code Amendment — Collective Gardens DEPARTMENT OF COMMUNITY DEVELOPMENT ft MEMORANDUM i ii =f.J to nry 0 To. City Council Study Session From. Allison Daniels, City Planner Date: January 9, 2013 Subject: Zoning code amendments for medical marijuana collective garden SUMMARY: Staff and Planning Commission recommend that City Council adopt zoning code amendments to prohibit medical marihuana collective gardens and add a definition for the use BACKGROUND INFORMATION In April 2011, the state legislature passed E2SSB 5073 related to medical marijuana The Governor vetoed portions of the bill, but signed into law the portion related to "medical marijuana collective gardens" The bill allows local jurisdictions to zone, license and regulate medical marijuana collective gardens In July 2011 the City of Bremerton City Council adopted a moratorium on all applications, and land use decisions on medical marijuana collective gardens The moratorium has been extended twice (February 1, 2012 and August 15, 2012) The federal Controlled Substance Act (21 U.S.0 § 841(a)) prohibits possession and distribution of marijuana without an exception for medical marijuana As such, provisions of Washington State medical cannabis laws which authorize possession and distribution of marijuana conflict with federal law This conflict creates uncertainty regarding regulation of medical cannabis collective gardens That uncertainty has been magnified by recent federal law enforcement actions against medical cannabis operations in the state and by a decision from the California Courts of Appeal that a city cannot permit an activity that violates the federal Controlled Substance Act (Pack v City of Long Beach, 199 Cal App 4 1070 (2011), petition for state supreme court review granted, 268 P 3d 1063) Note that the California case does not govern in Washington, but similar arguments could be made if such case was brought in Washington Furthermore, the United States Attorney's office has written letters to state and local officials (Attachment 1) indicating that government workers who implement laws related to collective gardens may be criminally liable under federal law To this date, the City's code does not address this use. To protect the City from person(s) who may seek to take advantage of any ambiguity or uncertainty in the City's code, regulations are recommended that clearly prohibit these uses for City Council's consideration. The Planning Commission held a public hearing on November 13, 2012 to discuss the proposed amendments With a vote of 5 to 1 the Planning Commissioners recommended the proposed zoning code amendments One Planning Commissioner voted against the proposed amendments as it was felt that this use should be allowed within the city to provide access to medical maryuana for citizens in for medicinal reasons ATTACHMENTS: a Attachment 1 — City Attorney, United States Attorney and Department of ,Justice's Letters Memo Attachment 1 Office of the City Attomey i Roger A Lubovich, City Attomey a Me morandu m T0: Andrea Spencer FMM: Mark Koontz 1� 10: Medical Marijuana Col lective Gardens Date October 9, 2012 You asked me to prepare a memo regarding the potential legal consequences of the City's zoning for manluana collective gardens History of Medical Marijuana in Washinetan In 1998 Washington voters approved Initiative 692 (I -692), which allowed certain patients with terminal or debilitating illnesses to use marihuana without being found guilty of a cnme under state law. It was codified as Chapter 69.51A RCW The law created an affirmative defense to the crime of marijuana possession and use, but did not legalize the use and possession of marijuana. State v Fry, 168 Wn.2d 1, 228 P 3d 1 (20 10) An affirmative defense is a legal doctrine that even though the defendant committed the acts that constitute a crime, the defendant has a legal excuse A well -known affirmative defense is self-defense: the defendant admits that he struck another person, but the defendant had an excuse — he was protecting himself From a practical standpoint, there may not be a big difference between making medical marijuana possession and use legal and making it an affirmative defense. From a legal standpoint, there can be mayor differences For example, Bremerton's Code prohibits licensing a business that engages in an illegal activity So while engaging in a certain act may allow one to assert an affirmative defense, the act is still illegal and the City would be prohibited from licensing a business that engages in that activity Current State Law In 2011 the Washington State Legislature passed a bill amending Chapter 69.51 A RCW in an effort to increase patients' access to medical marijuana. The bill sought to legalize dispensaries for medical marijuana and medical manluana collective gardens The Governor signed the bill into law, but vetoed significant portions of the bill, including the legalization of dispensaries, the authorization and licensing of dispensaries and collective gardens, and the establishment of a State registry of qualified patients. The Governor did not veto the section regarding collective gardens. Under the law, no more than ten qualified medical marijuana patients may participate in a collective garden and grow up to 45 plants in the garden. The law authorizes, but does not require, cities to adopt zoning requirements related to collective gardens. Memo Attachment 1 October 9, 2012 Page 2 Federal Preemption and Enforcement Federal law clearly prohibits the use and possession of marijuana, even for medical purposes. The question is whether Washington State, or its counties and cities, can authorize a person to use marijuana when it is illegal under federal law. The law of federal preemption is quite complicated. No court has decided whether Washington's medical marijuana law is preempted by federal law. However, the Oregon Supreme Court has decided that Oregon's medical marijuana law is preempted by federal law to the extent it authorizes the use of marijuana. Emerald Steel Fabricators, Inc v Bureau of Labor and Industries, 348 Or. 159, 230 P.3d 518 (2010). It is possible, perhaps likely, that a municipal law that authorizes the use or possession of marijuana for medical purposes would be preempted by federal law if the law were challenged in court Potential Consequences of Bremerton Zoning for Collective Gardens As stated above, one consequence of a Bremerton Ordinance establishing a zone for collective gardens is that the law could be declared invalid under federal preemption Moreover, municipal officials and staff who facilitate (i e. license or regulate) the cultivation of marijuana may be exposed to criminal prosecution under federal law. Before signing the 2011 bill into law, Governor Gregoire sought the guidance of the United States Attorney General regarding the practical effect of the proposed law In a letter dated April 14, 2011, � the two United States Attorneys for Washington State informed Governor Gregoire that people who "knowingly facilitate" marijuana cultivation violate federal law. Furthermore, "state employees who conducted activities mandated by [the bill] would not be immune from liability under [federal law] " As a result of this letter, Governor Gregoire vetoed portions of the bill that would require state employees to authorize and license dispensaries In January, 2012 the Department of Justice wrote a similar letter to the Clark County Board of Commissioners. The letter referenced the April 14, 2011 letter to Governor Gregoire and stated, "That same conclusion would apply with equal force to the proposed activities of the Board of Clark County Commissioners and Clark County employees:' While federal prosecution of a municipal law maker or staff employee for licensing or regulating medical marijuana collective gardens seems unlikely, these two letters leave the door open for such a prosecution Conclusion It appears that under current law 1) Medical marijuana dispensaries are illegal and those who participate m dispensaries are subject to state and federal prosecution; 2) Medical marijuana collective gardens are not legal, but the members who participate in them may be entitled to an affirmative defense; 3) Possession and use of manjuana for any reason is illegal under federal law, and 4) Federal law enforcement maintains the right to prosecute municipal employees involved in licensing and regulating medical marijuana collective gardens. A copy of the letter to Governor Gregoire is attached to this memo 2 A copy of the letter to the Board of Clark County Commissioners is attached to this memo Memo Attachment 1 U.S. Department of Justice 0 r• g United States Attorney Eastern District of Washington Suite 340 75omas S Foley V 5 Cmarhouse (509) 333 -2767 P 0 Box 1494 Fax (309) 353 -2766 Spokane, WoshtnMn 99210.1494 Honorable Chnstme Gregoire April 14, 2011 Washington State Governor P O Box 40002 Olympia, Washington 98504 -0002 Re. Medical Marijuana Legislative Proposals Dear Honorable Governor Gregoire We write in response to your letter dated Apn113, 2011, seeking guidance from the Attorney General and our two offices concerning the practical effect of the legislation currently being considered by the Washington State Legislature concerning medical marijuana We understand that the proposals being considered by the Legislature would establish a licensing scheme for marijuana growers and dispensaries, and for processors of manjuana- refused foods among other provisions. We have consulted with the Attorney General and the Deputy Attorney General about the proposed legislation This letter is written to ensure there is no confusion regarding the Department of Justice's view of such a licensing scheme As the Department has stated on many occasions, Congress has determined that manjuana is a controlled substance. Congress placed marijuana in Schedule I of the Controlled Substances Act (CSA) and, as such, growing, distributing, and possessing manjuana in any capacity, other than as part of a federally authorized research program, is a violation of federal law regardless of state laws permitting such activities. The prosecution of individuals and organizations involved to the trade of any illegal drugs and the disruption of drug trafficking orgamzauons is a core pnonty of the Department. This core priority includes prosecution of business enterprises that unlawfully market and sell marijuana Accordingly, while the Department does not focus its limited resources on seriously ill undrviduals who use manjuana as part of a medically recommended treatment regimen in compliance with state law as stated in the October 2009 Ogden Memorandum, we maintain the authority to enforce the CSA vigorously against individuals and organizations that participate in unlawful manufacturing and distribution activity involving marijuana, even if such activities are permitted under state law. The Deparnnenfs investigative and prosecutorial resources will continue to be directed toward these objectives. Memo Attachment 1 Honorable Christine Gregoire April 14, 2011 Page 2 `' Consistent with federal law, the Department maintains the authority to pursue criminal or civil actions for any CSA violations whenever the Department determines that such legal action is warranted This includes, but is not limited to, actions to enforce the criminal provisions of the CSA such as - 21 U S C § 841 (making it illegal to manufacture, distribute, or possess with intent to distribute any controlled substance including marijuana), - 21 U.S C § 856 (making it unlawful to knowingly open, lease, rent, maintain, or use property for the manufacturing, storing, or distribution of controlled substances); - 21 U S C § 860 (making it unlawful to distribute or manufacture controlled substances within 1,000 feet of schools, colleges, playgrounds, and public housing facilities, and within 100 feet of any youth centers, public swimming pools, and video arcade facilities), - 21 U.S C § 843 (making it unlawful to use any communication ` facility to commit felony violations of the CSA); and - 21 U S.0 § 846 (making it illegal to conspire to commit any of the crimes set forth in the CSA) In addition, Federal money laundering and related statutes which prohibit a variety of different types of financial activity involving the movement of drug proceeds may likewise be utilized The Government may also pursue civil injunctions, and the forfeiture of drug proceeds, property traceable to such proceeds, and property used to facilitate drug violations. The Washington legislative proposals will create a licensing scheme that permits large -scale marijuana cultivation and distribution This would authorize conduct contrary to federal taw and thus, would undermine the federal government's efforts to regulate the possession, manufacturing, and trafficking of controlled substances Accordingly, the Department could consider civil and enminal legal remedies regarding those who set up marijuana growing facilities and dispensaries as they will be doing so in violation of federal law Others who knowingly facilitate the actions of the licensees, including property owners, landlords, and financiers should also know that their conduct violates federal law In addition, state employees who conducted activities mandated by the Washington legislative proposals would not be immune from liability under the CSA Potential actions the Department could consider include injunctive actions to prevent cultivation and distribution of marijuana and other associated violations of the CSA, civil fines, criminal prosecution, and the forfeiture of any Memo Attachment 1 Honorable Christine Gregoire April 14, 2011 Page 3 property used to facilitate a violatton of the CSA. As the Attorney General has repeatedly stated' the Department of Justice remains firmly committed to enforcing the CSA in all states. We hope this letter assists the State of Washington and potential licensees in making informed decisions regarding the cultivation, manufacture, and distnbution of marijuana Very truly yours, G 7e Durkan Michael C. Ormsby Unite States Attorney United States Attorney Westem Distnct of Washington Eastern District of Washmgton c Memo Attachment 1 � rd o U.S. Department of Justice Wf t fflft BY Drug Enforcement Administration ALL r wwty dea_gov 8701 Momssette Dnve Springfield, VA 22152 ' JAN 17 2012 Tom Mielke Marc Boldt Steve Stuart Board of Clark County Commissioners 1300 Franklin Street P.O Box 5000 Vancouver, Waslungton 98666 -5000 SUBJECT- Application of the Controlled Substances Act (CSA) to the Board of Clark County. Commissioners and Clark County Employees Dear Messrs Mieike, Boldt, mid Stuart. Thank you for your December 2, 2011 letter addressed to Attorney General Eric holder which was referred to the Drug Enforcement Administration (DEA) for a response. The Department of Justice has stated that Congress has determined that manjuana as a schedule l controlled substance and, as such, growing, distributing, and possessing marijuana in any capacity, other than as part of a federally authorized research program, is a violation of Federal law regardless of state laws permitting such activities. This is reflected in the text of the CSA and the decisions of the Ututed States Supreme Court in United States v Oakland Cannabis Bu3 Cooperative, 532 U S. 483 (2001), and Gonzales v Raich, 545 U.S 1(2005). These federal law concepts are premised on the facts that marijuana has never been demonstrated in sound scientific studies to be safe and effectave for the treatment of any disease or condition and, therefore, the Food and Drug Administration has never approved marijuana as a drug As the Supreme Court stated, "for purposes of the Controlled Substances Act, marijuana has 'no currently accepted medical use' at all " Oakland Cannabis Buye) s' Coolmrattve, 532 U S at 491 In your con espondence to the Attorney General you quote from an Apnl 14, 2011 letter written to the Honorable Christine Gregoire, Washington State Governor by the U S Attorneys for both the Eastern and Western Districts of Washington in which they say that "state employees who conducted activities mandated by the Washington [medical marijuana] legislative proposals would not be immune from liability udder the CSA " Although that letter pertained to the r V Memo Attachment 1 6� Washington state medical manluana law and Washington state employees, the principles expressed in that letter are useful rn addressing any county "medical marijuana" ordinance or provision implemcnting state law As that letter indicated, anyone who knowingly Games out the marijuana activities contemplated by Washington state law, as well as anyone who facilitates such activities, or conspires to comma such violations, is subject to criminal prosecution as provided in the CSA. That same conclusion would apply with equal force to the proposed activities of the Board of Clark County Commissioners and Clark County employees Such persons may also be subject to money laundering statutes In addition, the C44 provides for forfeiture of real property and other tangible property used to facilitate the commission of such crimes, as well as the forfeiture of all money derived from, or traceable to. such activity Thank you for your inquiry regarding this important matter. Sincerely, os h T Rannazzisi ty Assistant Admimstrator Office of Diversion Control Exhibit A FINDINGS AND CONCLUSIONS OF THE CITY OF BREMERTON PLANNING COMMISSION Summary: Proposed amendments relate medical marijuana collective gardens to the Bremerton Municipal Code (BMC). Additional amendments are to provide a definition to BMC 20 42 040 for "collective garden" 1. FINDINGS OF FACT 1. Project Description: Proposed amendments to the Zoning Code include the following Add language to prohibit medical marijuana collective gardens, based on conflict with federal law, and Add BMC 20 42 040 definition for "collective garden" 2. Procedural History 2 1 August 17, 2011 — City Council imposed a 6 -month moratorium on the acceptance on any permit or approval for medical marijuana collective gardens 2 2 February 1, 2012 — A 6 -month extension on the moratorium for collective gardens was adopted by City Council 2 3 August 15, 2012 — A second 6 -month moratorium on collective gardens was adopted by City Council 2 4 November 3, 2012 — Notice of Public Hearing 2 5 November 5, 2012 — SEPA DNS 2 6 November 13, 2012 — Planning Commission Public Hearing 3. Public Comment Individuals providing verbal testimony at Planning Commission public hearing a No Public Testimony 4. SEPA Determination A Determination of Non - Significance was issued on November 5, 2012, with a comment deadline of November 19, 2012, and an appeal deadline of December 3, 2012 No comments or appeals have been filed to date S. Consistency Zoning Code text amendments shall meet the decision criteria outlined in BMC 20.18.020 (d) The Planning Commission may recommend, and the City Council may adopt or adopt with modifications, an amendment to the Zoning Code text if the criteria outlined below are met BMC 20.18.020(d)(1) allows text amendments if they are consistent with the goals and policies of the Comprehensive Plan Collective Gardens Planning Commis sion Hearing Analysis The amendments are minor and continue to uphold the objectives and goals of the Comprehensive Plan These amendments do not change the intent or purpose of the Zoning Code BMC 2018.202(d)(2) allows text amendments if they are consistent with other City, State, and Federal codes, regulations and ordinances Analysis The proposed amendments to the Zoning Code do not conflict with any other regulations II. CONCLUSIONS & RECOMMENDATION Based on the findings above, Planning Commission concludes that the Zoning Code amendments meet the requirements in BMC 20.18.020, text amendments to the Zoning Code, and therefore recommends the adoption of the amendments to the Zoning Code Resp Ily submitte y ndre L Sp 11, Executive Secretary AP r' d by s h Collective Gardens Planning Commission Dearing DRAFT CITY OF BREMERTON PLANNING COMMISSION MINUTES OF SPECIAL MEETING November 13, 2012 CALL TO ORDER Chair Jose called the special meeting of the Bremerton Planning Commission to order at 5 30 p in ROLL CALL Commissioners Present Staff Present Chair Jose Andrea Spencer, Director, Department of Community Development Commissioner Albright Heather Kauer, Assistant Director, Department of Community Development Commissioner Dmkuhn Allison Daniels, Current Planner, Department of Community Development Commissioner Hoell Roger Lubovich, City Attorney Commissioner Lambert Mark Koontz, Assistant City Attorney Commissioner Tift Commissioners Absent Vice Chair Cockburn (excused) Quorum Certified APPROVAL OF AGENDA COMMISSIONER LAMBERT MOVED TO APPROVE THE AGENDA AS PRESENTED. COMMISSIONER TIFT SECONDED THE MOTION. THE MOTION CARRIED UNANIMOUSLY APPROVAL OF MINUTES COMMISSIONER ALBRIGHT MOVED TO APPROVE THE MINUTES OF OCTOBER 9, 2012 AS PRESENTED. COMMISSIONER HOELL SECONDED THE MOTION. THE MOTION CARRIED UNANIMOUSLY, WITH COMMISSIONER DINKUHN ABSTAINING. PUBLIC MEETING Call to the Public (public comments on any item not on the agenda) Chair Jose asked if there were any comments from citizens Seeing none, he closed the public portion of the meeting i Public Workshop and Hearing. Ordinance for the Language Regarding Medical Marnuana Collective Gardens Mr Koontz announced that Initiative 502 was approved on November 6, 2012 legalizing the possession of one ounce of marijuana for recreational use He reviewed the basic elements of the initiative as follows • The new law will become effective December 6, 2012 and creates a regulatory scheme through the Liquor Control Board that would license producers, processors, and retailers for marijuana • The initiative requires the Liquor Control Board to establish rules by December 1, 2013 • The only way a person may obtain marijuana under the initiative would be to purchase it from a licensed retailer On December 6 it will be legal for a person to possess an ounce of marijuana under state law, but there is not a scheme set up yet where you can legally obtain it st tt l ii,r E I • The initiative would allow a person to,be a licensed producer, a licensed processor, or a licensed retailer, but it would not allow you to be two of those three �,'��g'�I ° • The product will be taxed 25% when it goes from the produeerIltoIitheelp�rocessor and again when it goes from the processor to the retailer Another 25% tax would be assessed on t}ie product!when it is sold by retailers to consumers These taxes are in addition to the state and local retail sales �Jl +[1 t1 tlem • The initiative requires the Liquor Control Board to notifylalcity when a person'iiri4bat city has applied for a license to become a producer, processor or retailer This gives!l4th §ell'cities and counties anlf;o to object to either the applicant or the proposed location where the marijuana would be produced or soldi�;t k • The law does not affect medical marijuana or collective gardens Initiative pertains tloiecreational marijuana use r ° §, i� @ESS$� f ee tktia� Mr. Koontz recalled that Initiative 692 was pa°ssed in 1998 and createdIawaffirmative defense toy +the use of marijuana for 1 �y Pi EP 1 medical purposes However, it did not legalize possession of medic al ,marguana in the State of Washington A 2010 Washington State Supreme Court Case (State vs �Fry) very clearly thatsp of medical marijuana in the state is l ll i still illegal However, the law makes the possessiontof marijuana for medical+ +purposes an affirmative defense, which is a legal doctrine whereby the defendant who is char ged;w the��cnme'a to committing the acts that would constitute the crime, but there is a legal excuse?efor lc "ommittin g those , acts He explained than there are significant differences between IM 1111 VI 114 1"a �t, � affirmative defense and legal use,of °marijuana, particularlys when,. �� l is try Ing to determine how to regulate the two uses If the use of marijuana is legal, cities canl'regulate it a`s� sucl g� j If It is illegal, , but there is an affirmative defense, it is more difficult for cities to authorize "an the use 4� Mr. Koontz said a significant change1occur`64 120,1 when theiLegislature passed a bill that established a two -tier system for using medical,marijuanaljj!One tier�w ±th�e��old�system creatae the affirmative defense The other way that you could possess and� marijuana was;, rough a state,registry syste t; Th ° e law made medical dispensaries of marijuana legal and required peopleato register as patie and retailers Registered retailers are allowed to sell marijuana to qualified patients However, Governor Gregoire expressed�concernithat „the legislation would require her staff to promulgate rules, regulate, and essentially authorizethe use and sale oftmari juana' She et wrote a letter to the Department of Justice, asking if that would run a fowl with federal lawwlilil e Department of responded that state employees could be held liable under federal criminal law if they authorize the1sale and use of marijuana because the possession, use and sale of marijuana, in any form and for any reason, is illegal under fedeial'law g 1 q Mr. Koontz advised that Governor, Gregoire ultimately vetoed some portions of the 2011 legislation, but retained the portion that allows collective gardens for �me Collective gardens allow people to work together to grow marijuana in Ali @s € {tr one garden The law allows up to ten qualified patients to participate in a collective garden It also allows 15 plants per member, but no more than 45 plants in one garden and 72 ounces of useable marijuana One concern is that the legislation would allow clusters of collective gardens to locate next to each other in one greenhouse on a single lot He suggested there would not be as much concern with the federal government regulating and enforcing marijuana laws with respect to one, small collective garden with four or five qualified patients who follow the rules of the state law However, if numerous collective gardens were to locate on a large property in the City of Bremerton, he is almost certain that the federal government would take action Mr. Koontz reviewed the differences between state and federal laws He said marijuana, whether for medical or recreational 4 use, is illegal under federal law The Supremacy Clause in the United States Constitution states that laws passed by Congress are superior to any state law If Congress shows an interest in an area that it regulates, the State cannot pass a law that is in Bremerton Planning Commission Minutes November 13, 2012 — Page 2 of 6 conflict "Conflict" means that if it is impossible to comply with both the federal and state law The Department of Justice has issued two letters, one to the governor and another to the Clark County Commissioners, who requested an opinion based on what they were proposing to do with collective gardens The letter stated that Clark County could be criminally liable under federal law, and it went so far as to imply that even the commissioners would be held liable if they pass an ordinance that authorizes collective gardens Chair Jose asked if any state or local officials have ever been prosecuted under the federal law Mr. Koontz said he does not know of any, and it would be very unlikely to occur However, it is still a possibility the City must consider While Governor Gregoire has been working to resolve the issue with the Department of Justice and they are heading in the right direction, there is still a lot of uncertainty He suggested that if a case were to come before the United States Supreme Court at this time to determine if the Washington State law is in conflict with and preempted by federal law, the possible, if not likely, outcome would be that the Supreme Court would strike down the stat °saying it was unconstitutional gg C6 Ey�F�8�8 EY�t Commissioner Hoell observed that the rules and regulations related to`In1 native 502 will not be in place until December l,, J';P' e, J11IJ14 2013 She asked if the Supreme Court would make a decision Just onl theilaw says before the rules and regulations are in place Mr Koontz answered that, typically, a court will not entertain a case unless, there is controversy, meaning someone : The Attorney has been charged with a creme under federal law for a use than is "legal under state law , y General of the United States could also mitiate an action, and Governor Gregoire asked the Attorneyi� General to intercede and seek an ,illol 'a E 4E #" {£n injunction before Initiative 502 becomes state law Her goallis to determine the federal government reaction before the State spends significant time and resources creating the specifiOules and regulations related to=Initiative 502 Mr. Koontz explained that the City Attorney and the Director of Development are Econcerned about the City having a zoning code that allows collective g``a'r`dens are illegal, federal law This could make City staff and officials liable under federal criminal law as it relatesit to! possession an of marijuana This concern is similar to the concern expressed by Governor Gregoire when she a;,portion of the`201 initiative She essentially took out all state do � 7� eu °z�sb, ti t e1a�t� responsibility and passed it on to cities and counties <��The Ci ;"must now make a that is based on state and federal law and also won't allow staff to potentially be liable ' under federal crun p al law s�EIllill i, h t:;I Commissioner Tit asked if'�Mil'Koontz� i'siaware of an �Inunici ahty in $ state that has passed an ordinance to permit medical marijuana collective gardens Ms. Daniels said the�cities of Issaquah, Seattle, Mukilteo, Shoreline and Everett have �����s, �� 01 regulated collective gardens withirestrictive buffers from sensitive areas, other collective gardens, etc Most of them have restrictions related to signage, as w'elll 4, a +' E5 ` �G�io-�g �<9 {�e "d� � ape " Commissioner Tif iobse`rved =that while the�Umted Statesl l General has looked the other way on the State 2011 9 ° °a �� s "s t!4`9a68�4t `6 ical marijuana,;they may $E@ q ���'� < legislation on"i eQ shut down everything'(medical and recreational) if marijuana possession were to become legal asl'called for in Initiatei502 Mr.. agreed this could be a possibility, and Initiative 502 has certainly raised the level ofidiscussion One goal,that Initiativet502 supporters sought to achieve was that the legislation would elevate the issue to a discusshon ## ith the states and ;the federal government Mr. Koontz said the Department of Community Development and the Legal Department recommends that the Bremerton Municipal Code (BMC) be amended (See Attachment I) by adding language to BMC 20 40 160(a) to state that "no use that is illegal under local, state or fe allowed in any zone within the City " 'They also recommend that language be added to BMC 20 40 160(c) to, =read,; "iA collective garden, as defined in BMC 20 42 040(a), is prohibited in all zoning districts Staff has also proposed that BMC 20 42 020 be amended to add a definition for "collective garden," that is consistent with how the term is defined in state law Ms Spencer pointed out that the proposed ordinance was modeled after an ordinance adopted by the City of Kent, which prohibits medical marijuana collective gardens Since the packet was sent out, a recent court case determined that it is within a city's authority to ensure that the zoning regulations are consistent with federal law Mr. Koontz explained that some citizens filed an action to overturn the City of Kent's ordinance, and the King County Superior Court upheld the ordinance He said he feels confident that if the proposed ordinance were challenged, it would be upheld, as well Mr. Koontz said another approach would be for the Commission to recommend denial of the text amendments to BMC 20 40 160 and BMC 20 40 and leave the code language as it currently exists He noted that BMC 20 40 160(b) currently reads, "Any use not listed as permitted, conditional or accessory use by the zone, or any use not determined to be a similar Bremerton Planning Commission Minutes November 13, 2012 — Page 3 of 6 use pursuant to BMC 20 40 150, or any use not found to be an allowable accessory use to the principle use shall be prohibited within that zone unless allowed otherwise by law " Staff believes that if this language remains in the zoning code, collective gardens would be prohibited, however it may be ambiguous This approach would leave the issue unclear and could be seen as avoiding the issue Staff is not recommending this approach Chair Jose asked when the City's current moratorium on medical marijuana collective gardens would expire Ms. Daniels answered that the moratorium expires February 28, 2013 Chair Jose asked how the Department of Community Development would handle future applications for collective gardens in the event they do nothing and the moratorium expires Ms. Spencer answered that applications would be denied based on the current prohibition language Applicants would then have to appeal to the hearing examiner and/or the Superior Court Chair Jose asked what the basis for staff's denial would be Ms. Spencer said applications would be denied on the basis that collective gardens are not listed as permitted uses aaPE���rJ� Mr Koontz said the Commission could also recommend to the City Councils =that the moratorium be extended another six months waiting for more clarity on the law that would allow the City t better;address the issue The down side is that the moratorium has already been extended twice He remmded the Commission that the, ordinance could be revised again if the law changes at some point m the future s(��� "�" ��� {1 m 11; g s Chair Jose asked if six months is the maximum time the m'oratgorium can be extended ' MrI'lKoontz answered that state law allows the City Council to pass moratoriums for a six month period of time with the ability.�to'lextend for an additional six months if there are reasonable grounds to do so He expressed his lbelief that,the(new law and the` fact that Governor Gregoire is currently communicating with the Department of Justice would provideiample Justification for extending the moratorium Commissioner Tift said he does not like the idea of action andlextending the moratorium for another six months He said he would like the Commission to address the''issuelnow ,, the law changes at some point in the future, the ordinance could be further revised Commissioner Lambert asked 1if1anyoye has approachedithe City`yw,ith ari,mterest'm #establishing a collective garden Ms. tap tg a� y , , IM, ihB� V q ,< ; J ,3° e ' °s�aaa�$ 8d: Daniels said the City receive&a application before the moratorium was m place This application was �s69! , ig U , ilgPW ' 0 1 11V denied because they were illegal,lbased on federal law The'lmoratorium, which was put in place m July of 2011, does not allow the City to accept applications However;she has had conversations eve few weeks with le who are interested in mY P either a dispensary or collective a 4� 11 every people g ef, # t g sa} Pg @s'a lar # + Chair Jose opened the public, hearing No;one m the audience,mdicated a desire to participate and the hearing was closed CommissionerAlbright asked whyl1he proposed ordinance does not address dispensaries Mr. Koontz explained that Governor Gregoire vetoed the portion of the initiative,that allowed dispensaries It is the legal department's opinion that any sale of marijuana, unless it is part of a collective garde would be illegal under both state and federal law Commissioner Dmkuhn said the fact thata,the federal government has not made a decisive statement since Initiative 502 was passed says somethin g about their level of interest in getting involved She asked if there is an overall interest m romotm i a�ti3 s : €0 P g collective gardens as a busmessis ssibih for Bremerton if the federal government determines they will not pursue and the rules and regulations are better defined 1 ishe asked if the proposed language could be modified to make it more business friendly rather than so prohibitiveChair Jose suggested that, at this stage, it would be appropriate to focus on this one issue of collective gardens As issues are resolved at the state and federal level, the Commission can consider additional changes COMMISSIONER TIFT MOVED TO RECOMMEND THAT THE CITY COUNCIL ADOPT PROHIBITION ON MEDICAL MARIJUANA COLLECTIVE GARDENS IN ALL ZONING DISTRICTS AS SHOWN IN ATTACHMENT I BASED ON THE FINDINGS AND CONCLUSIONS IN ATTACHMENT II. COMMISSIONER HOELL SECONDED THE MOTION Chair Jose said he believes the motion on the floor is the appropriate measure to take He recognized that Commissioners have their own opinions on the issue of recreational and medical marijuana However, when they focus on the single issue of medical marijuana collective gardens and the Commission's responsibility, their priority should be to prevent exposing Bremerton Planning Commission Minutes November 13, 2012 — Page 4 of 6 Commissioners and City staff to liability They need to let the issue get resolved at the state and federal levels before pursuing development code amendments that allow marijuana dispensaries, collective gardens, etc Commissioner Dinkuhn disagreed with Chair Jose She said the language in the letters was not worded in an absolute way regarding the potential for prosecution and liability Having seen very little of that take place, she does not have a lot of concern that it might happen She expressed her belief that allowing patients to get medicine (including marijuana) is something that should not be denied to the citizens Chair Jose said he generally agrees, but the Commission must keep in mind that the issue is unresolved at the state and federal levels Once these issues are resolved, he would like to repeal the City's ordinance But they must make a decision based on the information available now None of the Commissioners appear to be in support of extending the moratorium another six months € €lell THE MOTION CARRIED 5 -1, WITH CHAIR JOSE AND COMMISSION ALBRIGHT, HOELL, LAMBERT AND TIFT VOTING IN FAVOR AND COMMISSIONER DINKUHN1V IN OPPOSITION g9ap S� �� ¢ `� 1 g g 3` Ms Spencer explained that when Commission recommendations are,,forwarded,to the City Council, they usually represent both the majority and the minority report so that both voices are heardil The City;Cou ncil will receive the minutes from the dells °l p meeting, as well as a staff report explaining the reasons for the gg k oppos !! mg vote t1 g �11� l�d�$�b1�1116 tt���l� 6 BUSINESS MEETING Chair Report i¢ � 1 1 1111 i111lali Chair Jose welcomed Commissioner Dmkuhh14o' Commission H i"a so reminded the Commissioners that as the It liii'lir'lill,, 11111, December meeting will likely be cancelled, Commissioners should comet prepared to elect new officers at the January 1111 meeting 1111q ,l Ill, '`�?l l Director Report Ms. S encer also welcomed 9 { Commissione y r 1Dinkuhn t� the C iss i f { yIn addition she advised that the terms for p l #$ t ,tar X16 12,a pte��gn1II fill q f1jS ' Commissioners Hoell and Cockburn end milD andl are choosing not to be reappointed She expressed her gratitude to them for their service�on the Commission The "'4 gratitude seek applicants to fill the two vacant positions ri i 11 l @ 14 i; �F °4�i i #�9 91 F taa !x 9a a 11fl�i, 9li�� ��;3i�t Ms. Spencer said ilshe Bis !looking for= a Planning, CommissiA delegate to the Gorst Subarea Planning Process The llllli � l° llis g at �if','H1 , �1l 9p Milil 'tEi °litH11ht Commission agreed�that Chair,Jose wouldserve as the delegate �(1� t lri 1i41s `ii�l$� #i g l t l��g�11�1 °� Ms. Spencer saidt>t is difficult to fill,the DesighlReview Board positions with experts who understand the City codes and the legislative mtent�to, # carry them forward said shelis considering amending the code to give a delegate spot on the Design fl`a:ts ° l ifi9l arl�� eyt� Review Board to a member of the PlanninglCommissiow, She asked the Commissioners to consider this option in preparation 1 19041 1 b 11 1 ld; for further discussion at;their January meeting �„ Ms. Spencer proposed that� eI;December� I 811 regular meeting be cancelled Instead, the Commissioners could meet at Toro for a short holiday celebration S l1�They agree that would be appropriate They also agreed to invite the Design Review Board to attend l al i (E S 1lllS;11� 1 `E P $;�gg�l�ii 7 aEl 1 Ms. Spencer announced that the Commission's next meeting is scheduled for January 15, 2013 The first item of business would be election of officers She noted that officers can serve for two years, and Chair Jose has served for just one year She said staff would also provide a briefing on the Gorst Subarea Plan on January 15 Old Business There was no old business to come before the Commission Bremerton Planning Commission Minutes November 13, 2012 — Page 5 of 6 New Business No new business was scheduled on the agenda ADJOURNMENT The meeting was adjourned at 6 17 p in Respectively Submitted by W��;a a i B pb�B Ee Andrea L Spencer Eta, , +rW Greg�Jose AICP Executive Secret a F <q, fi�� ' a,+ �Y Chair, Plannmg Commission 0 � a �,93�+ ffr�fi € " EfsE� asa�;4f t� $�Pfifd$�da �obe� e�3t �j's ' af9 fir`, l Bq$ad� �WTI i 1k�s & 3 A�fl A¢essr£ = a &p �i s(€ ° p ro fi< @f 10111 j' 1 1 0 61 Bfi�aa €r+ $ R 101 �Il, t afigl +��$ �as�Cfi frra�j , � JJ �di 7 e 3 a x�liag' #I@ gge ! +fi i8s f fi� tt g d� D6i s a�3pt ��3 it'll ti Bremerton Planning Commission Minutes November 13, 2012 — Page 6 of 6 City Council Study Session — January 9, 2013 Jurisdictions Collective Gardens Notes Allowed Auburn No City cannot permit that which is illegal or prohibited under state or federal law Interim zoning allowed in Industrial zones with CUP, no Bellevue Yes visual indication of cannabis, transportation cannot exceed allowed amounts Amendment to business license provision clarifying that no Edgewood No license will be issued to business activity that is illegal or prohibited under state or federal law Hoquiam Moratorium in place Regulations in place including location distances from "sensitive areas ", 24 hours security system, obtain a City Issaquah Yes Collective Garden Safety License with background check Separate Business License ($350 license fee + $140 per year after) Kent No City cannot permit that which is illegal or prohibited under state or federal law Mill Creek No City cannot permit that which is illegal or prohibited under state or federal law Allows medical cannabis collective gardens as a permitted Mukilteo Yes land use in the light industrial zoning district, adds medical cannabis collective gardens safety license Regulations for well ventilation, no minors on site, hours of Shoreline Yes operation limited to daytime hours Separate business license required ($599 SO /year) Requires a business license, however will not issue license Port Orchard No for any activity which is illegal or prohibited under state or federal law Poulsbo Code it Silent Currently updating zoning code and addressing at that time Regulations for well ventilation, no minors on site, hours of Shoreline Yes operation limited to daytime hours Separate business license required ($599 50 /year) J AGENDA BILL CITY OF BREMERTON 1A CITY COUNCIL SUBJECT: Purchase and Sale Agreement Study Session Date* January 9, 2013 for the sale of property at 1116 Charleston COUNCIL MEETING Date January 16, 2013 Beach Road Department PW &U Presenter Gunnar Fridriksson Phone 473 -2354 SUMMARY: The City has received an offer of $140,000 to purchase the property located at 1116 Charleston Beach Road from Boat Launch Investments, LLC, who proposes to use the building for a retail site The assessed value of the property is $142,390 The property was acquired during the SR 304 Transportation Improvement Project using Transportation Improvement Board grant funds, a condition of the funds requires proceeds from the sale be used for Arterial Street Improvements within the City The requested action is approval of the purchase and sale agreement for the property at 1116 Charleston Beach Road ATTACHMENTS: Purchase and Sale Agreement, Map Exhibit, and Photo Exhibit FISCAL IMPACTS (Include Budgeted Amount) Proceeds from the sale will be deposited in the Arterial Street Fund STUDY SESSION AGENDA ❑ No Discussion ® Full Presentation STUDY SESSION ACTION: ❑ Consent Agenda ® General Business ❑ Public Hearing RECOMMENDED MOTION: Move to approve the purchase and sale agreement and authorize the Mayor to finalize and execute the agreement with substantially the same terms and conditions as presented, and further, authorize the Mayor to finalize and execute all documents necessary to complete the transaction COUNCIL ACTION: ❑ Approve ❑ Deny ❑ Table ❑ Continue ❑ No Action Form Updated 11/02/12 I I Form 34 6 :oflyngint 2nto AddenoumfAmendmeni to PGS Northwest Mulnpla Listing Sam= Z -t 7'10 A_L RIGHTS RESERVED Paae ' of s ADDENDUM t AMENDMEW TO PURCHASE AND SALE AGREEMENT Tne following is part of the Purchase and Safe Agreement dated November 13.2012 1 oetween Boat Launch Investments LLC and / or assisns ( "Buyer "; 2 and City of Bremerton (°Sellzr"I 3 concerning 1116 Cbarleston Beach Rd W (the "Property ") 4 IT IS AGREED BETWEEN THE SELLER AND BUYER AS FOLLOWS 5 1) The purchase pnee shall be 5140,000 due to unknown casts of underground power installation as 6 requested bj City of Bremerton. 7 8 2) Buyer due to unknown Ttmeiene of Underground installation approval and completion of converting 9 os erhead power to Underground power ,buyer will not operate business from subject Buddmg but Buyer 10 will be able to work on building improvements both tutenor & extenor upon recording 11 1 2 13 14 15 16 17 1a 19 20 21 22 23 24 25 26 27 28 29 30 ALL OTHER TERMS AND CONDITIONS of said Agreement remain unchanged 31 Initials BUYER Date ! y�- SELLER �+ � _._ Date BUYER Date SELLER Date ADDENDUM -A. 1116 Chadestan Beach The attached Real Estate Purchase and Sale Agrwment dated November 13th, 2012 between Boat Launch Invesunents LLC, and/or assigns, as Buyer, and The Cijr of Bremerton, as Seller, of the properrg commonly Down as 1116 Charleston Beach Road near Bremerton within unincorporated Kitsap Count) and having Kitsap County tax account parcel number 222401 -4- 126 -2002, is re -used and continued as follows- 1. PURCHASE PRICE. the purchase price in para ALnf the main Purchase Agreement is adjusted to One t , 0) to be paid to Seller at time of closing for this transaction It is understood the Buyer is responsible to seek their own financing iridependent of Seller .fit l� 1?pr�, % IJ - S 2 CITY COLTINCIL APPROVAL. The Bremerton Municipal Code reautres teat the City Council for the City of Bremerton formally approve the sale of certain real estate owned by Seller, including the subject property This Purchase and Sale Agreernerit is therefore conditioned upon the formal approval of the City Council of the City of Bremerton. Seller agrees to present this Purchase and Sale Agreement to the City Council for approval no later than 45 days following Buyer's written waiver and removal of their feasibility and inspection contingency in item. 95 of the Purchase Agreement. Buyer understands the City Council is not obligated to approve the Purchase and Sale Agreement and Seller makes no promise or warranty that the City Council will approve the Purchase and Sale Agreement City Council approval shall mean tans contingency has been met and removed as a condition of purchase from this Purchase and Sale Agreement City Council rejection shall mean that this Purchase Agreement is null and void and herein receipted earnest money shall be returned to Buyer. 3 UNDERGROUND POWER. Prior to opening of their business at the subject property, Buyer agrees to install the electrical service underground to meet Puget Sound Energy's private property installation for a commercial service. This commitment shall survive closing for this transaction 4 CLARIFICATION OF USE, Buyer confirms they are not intending to establish an adult - oriented business at the subject proneTty of 5 SURVEY IREQIJEST Euyer to prove-,z any bounder - ; - sur or of property comers for the subject property to Buyer's satisfaction `Me 'form titled "Addendum/Amendment to PSA" is deleted from this Purchase Agreement. Initial Date t> z.---` z 6 ROLD H- ARMLESS. Buyer is aware that the Property has a history of groundwater comma nation as ident*fied hr. a December 30, 2010 memorandum fiom G ,mnar Fridriiksson, a copy of which ? been provided to B=ayer Paragraph 12 is hereby modified to be consistent with the December 30, 2010 memorandum. As papad comsideration. for the purchase of the Property Buyer purehases the propery and improvements "as is" and agees to hold harmless The Seller from any and all damage&. claims, losses, liabilities, judgments, demands, fees, obligations. assessments, and expenses and costs, which may be imposed upon or incurred by Buyer, or asserted agai Buryer by any other party or pies (including, without, limitation, a govermnentall entity), arising o=-A of or in connection with any environmental conditiora existing as of and/or prior to the closing date whether know--., or unimowr_ This provision shall sury , ,v-e closing 7 DOTE OF CLOSWG. Date of closing for this t-ansacrion shall owar no later than Thursday, -M--y 30th. 2013 which shall also serve as the date of termination for this Purchase Agreement 8 ENTME AGREEMEIITT. All other terms amd conditions of the Purchase Agreement shall remain intact, except as modified by this Addendum A.+ AddWGJN i d. 9 OFER TERM. Seller's counter -offer to Buyer shall automatically expire and this Purchase Agreement terminated if not accepted in writing by Buyer prior to 3PM PST Wednesday, December 12th, 2012 1�� lt}. ,�0 %� Approved and Accepted: SELLER: City of Bremerton Contact Information 100 Oyster Bay Avenue North tZ S,Z Bremerton, WA 98312 e . - C Martin date Director of Public Works and U6-1i-ties Point of Contact is Gunnar Fridriksson WK (360) 473 =2354 E -MAIL driksso ci. remert n.wa us MY _ David Roman, as its member yA e,, *&/ 2ate O Cmnmer:W Swkm A,ssaelahw 204 � „ , / ALL RIG MS � ED �` CBAPorm PSA AmendUrWAfftMdm MtoPM Pa" I lMl °tat ADDENDUWAMENDMENT TO PURCHASE AND SALE AGREEMENT r' The following is pan of the Purchase and Sale Agreement dated November t 2.1112 (the "Agramsntl between City of Bremerton ("Se(ier") and Boat Launch Investments LLC and/or assn ("Buyer") regarding the sale of the pmpergimown as 1116 Charieaton Beach Rd W 'the "Property') IT IS AGREED B - aEl I ER AND BUYER AS FOLLOWS A OTHER TERMS AND CONDI'nONS of the Agreement remain unchanged r wrIALS 3UY=_R �j L DATE. ( / • / � S DATE. I lY 3UYz_rt' DOTE SELLER �� =�q DATE O Commercial Broken AssodaJon 20' 1 AL- RIGHTS RESERVED CBA Forth EMN E/M Prammsory Note Rev. 112011 oepe 1 of 1 EARNEST MONEY PROMISSORY NOTE $ 1.000.00 Place Silverdale Date November 11.2012 FOR VALUE RECEIVED, Boat Launch Investment LLC and/or asssggs ( "Buyer" agrees to pay to the order of Land Title Co (' Holder' , the sum of One Thousand & no /1000 Dollars ($ 11000.00 ) as follows days (3 days if not filled in) following mutual acceptance of the Purchase and Sale Agreement C1 Upon satisfaction or waiver of the feasibility contingency stated in the Purchase and Sale Agreement CJ other Removal; of tt:e Feasibildty Study Condagencc This Note is evidence of the obligation to pay eamest money under the purchase and sale agreemen` (the "Agreement ") between Buyer and City of Bremerton t'Seller "; oated 11 /3/2012 for the property located at 11.16 Charleston Beach Rd W Bremerton. WA Buyer's failure to pay the earnest money strictly as above shall constitute default on the .Agreement as well as on this Note If Holder retains an attorney for collection of amounts due pursuant to this Note, or if Haider brings suit to collect any amounts due on this Note, Buyer shall pay a reasonable attorney's fee and costs This Note shall bear interest at the rate of twelve percent (12%) per anpvrn after I u BUYER i By Printed Name and True ' Do not enter "on closing' as the dare •nis Nole cecorres due and yavable_cecs..se cio §nc under the Purchase Agreement is not certain to occur. Instead insert a specific date or an event that is c�riain b occur G�tal �►�Ir� -- O COmnemal 9rokwu Assm-aabon 2M / A_ RIBS RESEPVEZ CBA r amr PS 1A Patanase b Seib Agraument Rau Willi °age 120113 COMMERCIAL & INVESTIVIEtri REAL EV. A E PURCHASE & 6ALE AGREEMENT (CONTINUED) Courtesy Come of kotices to Buyer to Courtesy Coon of Notts to Sells, to Name Name Address Adaress Business Phone Business Phone Mablfe Phone phobia Phone =ar Fax ;:Mae Email J � /t aC, IN WETNESS WHEREOF, the parties have srgnea this Agreement intending to be bounce Buyer �� E Buyer Punta NRa of 8�0' Pnrded name and type of � Buy t Buyer �t P>"•h�l' - ura and tft Date signed Date signed Seller Seller PnnL -d nam and type of a ey PnnW name and type of Seller _ _. _ Seller e , L .n 1" -.1 w _J t n ?ate signed Date signed f� lkrrL�! s aura. t ar,T� S ELLE R 17, BUYER e?4TE SELLER DAT G ComxwttaW Bmkm Assn 2(r AL' t GKFS P=S�ir�i F MA Faro 0 S to 0W=W. & aM Apree"WA Rou tf2Aii Sege i of •S COMMERCIAL & INVES MENT REAL ESTATE PURCHASE & SALE AGREEMENT rats hes been pmpwvd ex submisvoi to vawatiomey formview aw opmvei pm sWrdng No BprswWW mn a me0e br LWnsee es ID i'8 Udit =n or t8' WnSUCIM Rs reference Date November-11 2012 Boat Launck Investmiuit LLC and/or assigns Miyer") agrees to buy and City of Bremerton 'Seller"} ag reas to sell, or tree follmng terms, the co-nmeraa; red estate are± alt improvements thereon (ociIlecOvely the "�rcipeiVj gmmonly IQ ,� as 1116 f hatleston RAm Rd W in the City of Bremerton , Kuser: County Washi gtoR legally destxibso on attached E)dubt A. The Reference Date above is Intended to be used to reference tns Agreement and is not the date of "Mutug. Accep`3nce ' wnrll -s defined in se-hr, 23 • / I PURCHASE PRICE. The purchase price is � �,,^ ft, l�a.uP' �;4 r ;�-1 --rc�' � c�l�� _e Dollars (s 1 r'tr() i payable as rAoa-s (ctw_ck only one) :3 All cash ai closing with no f panning contingency O AA cash at closing contirmant or new financing n accordan)e with tr e = lnanar an ;attach CBA Form PS O $ OR % of he purchase price in cash at dosing with the balance of the purchase price paid as follows (check one or both, as applicable) O Buyers assumption of the outstanding principal balance as of the Closing Date of a first ben note and deed of trust (or mortgage), or real estate contract, in accordance with tree Flnanang Addendum (attach CBA Form PS O Buyer's delivery at dosing of a promissory note for the balance of the purchase prim, secured by a deed of bust encumbering the Priverty. in acoorda 110th the Finqnc ig Addendum attach A Farm PS FAN } 2 EARNEST MONEY The earnest money in the amount of $ 1,000.00 shall be in the form of 7 Cash ❑ Personal check (a Promissory note (aQached CBA Form EMN) ❑ Other The earnest money shall be held by O Selling Firm Ed Closing Agent Selfing Broker may, however transfier the earnest money to Closing Agent Buyer shall deliver the earnest money no later than O days after Mutual Acceptance On the last day of the Feasibility Period defined in SWK3n 5 below O Other If the earnest money is to oe held by Selling Firm ana is over $10, 000, it shall be deposited to U Selling Firm's pooled trust account (with interest paid to the State Treasurer) O A separate interest bearing trust account in Selling Firm's name The interest, if any, shall be credited at dosing to Buyer If this sale fails to dose, whoever is entitled to the earnest money s enbBed to interest 4Si lily - - rm sha_'l Cecosr :3— ci -, :;a re a "'yr Sell rg :?. S eccefc[ I;r , Icepmnce, - iVJC. ^2vrr GrCt.rS ate_r ; ei oy ?BS b pay ; nand -ig anG - aurcna - se z;osts irc r-ea Gr Buyer Unless otnermse provided i this Agreement, the earnest money snap to applicable to the purchase price 3 EXHIBITS AND ADDENDA. The following Unibits and Addenda are made a part of this Agreement Exhibit A - L@ Descnpbon DoErlro.:rct '°` i� Earnest roilmissor} Note, CBA Form EMN G iNmAi..s t3urER rk— rc r 1 / 1 1. s S oa t BUYER DATE S E LLER DAM 0 Oommesmm Brokers Awa=Uof 201+ Me A : ROMS RE,� CBA Fam Pk1A Pw=hase a Bait AgmemaM Rev V2011 f2ps 2 of is COMMERCIAL & INVESTMENT REAL ESTATE PURCMSE & SALE AGREEMEW (CONTINUED) 0 Promissory Note, LPB Form No 23A/ C! Short Four Deed of Trust, L.P3 Forge Nc 20 O Dew of Trust Riaw, CBA Form D E R cd Utility Charges Adaendum, CBA Form UA 3 FIRFT.A Certifration, CSL Form 22E 2 Assignment and Assumption, CBA 1 =a - r, PS-AS 0 AddendumlAmendment, CS.4 Form PSA Back -Up Addendumr, CBA Form BU-A :2 Vacant Land Addenoum, CBA Forte VL.A 1:3 Financing Addendum CBA Form PS FIN D Texan, Estoppel Cat ftam, CBA Form PS EEC Defeasance Addendum, CBA Form PS_D Z Othar ®ntioaaf Clauses Addmdom 2ZD 4. SELLER'S UNDERLYING FINANCING. Unless Buyer is assuming Seller's underlying financing, Seller shall be responsible for confirming the wasting underlying *financing is not sub)ect to any 'lock out" or similar covenant whim would prevent the lendees lien from being released at closing in addition, Seller shall provide Buye• notice prior to the and of the Feasibility Period if Seiler is required to substitute securities for the Property as collateral for the underlying financing (known as "defe.anca° If Seller provides this notice of defeasarice to Buyer, then the parties shall close the transaction to accordance with the process described in CBA Fo PS_D or any different process identified in Selier's defeasance Mice to Buyer 5 FEASIBILTY CONTWGENCY Buyer's obt'rgatro=ns under this AgCe_ement are conditioned upon Buyer's satisfaction in Buyer's sole discretion, concerning all aspects of the Property, including its physical condition, the presence of or absence of any hazardous substances, the contracts and leases affecting the properly, the potential financial peiormance of the Property, the availability of government perinits and approvals, and the feasibility of the Property for Buyer's intended purpose This Agreement snall bNmnate and Buyer shall receive a refund of the earnest money unless Buyer gives written notice to Seller within 120 days (30 days if not filled in) (the Feasibility Penod j of Mutual Acceptance stating treat this condition is satisfied If such notice is timely given, the feasibibty contingency stated in this Section 5 shall be deemed to be satisfied a. Books, Records, Leases, Agreements Seller snail make available_ for inspection by Buyer and its agents within 15 days (2 days if not filled in) after Mutual Acceptance aft documents in Seller's possession or control relating to the ownership, operation, renovation or development of the Property, excluding appraisals or other statements of value, and including statements for real estate taxes, assessments, and utilities for the last three years and year to date, property management agreements and any other agreements with professionals or consultants, leases or other agreements relating to occupancy of all or a portion of the Property and a suite -by -suite schedule of tenants, rents, prepaid rents, deposits and fees, plans, specficabons, permits applications, dfawngs, surveys, and studies, maintenance records, accounting records and audit reports for the last three years and year 1 0 date,, and "Vendor Con tracts * wN ct' snail +rdulde rna.rte ^arce or sermce c^.T,Tc:ts, and - ^sta''r - en''s 01'rZoase contracts CT peiscr al cror — ii cr TL< ureb set. ,.- .=r a- ­_ ,n,-- O ro erq & shat, determine wiLhm the Feasibility uer,ca (i) whatiher Seder mil agree .o terminate ar +y objectionable Vendor Contracts, and (u) whether Seller will agree to pay any damages or penalties resultng from the termination of objectionable Vendor Contracts Buyers waiver of the Feasibility Contingency shall be deemed Buyers acceptance of all Vendor Contracts which Seller has not agreed in writing to terminate B er shall be solely responsible for obtaining any required consents to such assumption INMIALS BUYE DAT T1 I T— sELLFPV 1_ 1 /�___ 1 DATE l A/ B UYER DATE S HIER DATE. '� O.ZgnraerM BrmkmS AsoadOW 2D:5 AL Rig�rj S n-- SERVED CS,kFa m PS iA Pumnaee &Effie Agm mint RAY I m I Page 5 d COMMERCIAL & INVESTMENT REAL ESTATE PURCHASE & SALE AGREEMENT (ION T INUED) and the payment os any assumption fees Seller shall c000anate with Buyer's efforts to receive any such consents Dui shall not be required to incur anY out -of -post expenses or fiaodiry in ootng so Seller shall transfer the Vendor Contrams as provided n Section 17 h Access. Sailer shall permit Buyer and ins agents, a: 3a ryers sots expense ana risk to enter the Property at reasonable times subject to tote nghis of aria[ after legal norm to tanarn, b coraouct inspaaiors concerning the Property ane improvements, including wdno.it fimita=, the str=luras condibor of improvements hazardous materials, past iniestabon, sofis condibons sensitive arsas, webantas, or other matters affemng tree feasibility of the Property for BLwa s untended use Buyer shall sahedjk- any entry onto trte Property with Sslrer m advance and shag oxMiy wain Sellers reas onable requireme including tnose relating to secunty, cortfidenbality, and atsn#ion of Seller's teriantes Buyer shall not perform any invasive testing including emAron ental nspechons beyond a phase I asaessmem or contact the tennis or property management parsmr,6 wrihout ootaning the Sellers prior wrtiter =sen, which snail not be unreasonably withheld. B.iyer steal' restore the Property and improvements b the sams condition tney ware it pmr In inspection Buyer shall be sole±w resportmbte for all, coats of its inspections and feasibility analysts and has no authority, to bind flan Proosrty for purposes of statutory bens Buyer agrees to indemnify and defend Seller from all liens cam, cai*ts, arri expenses, including attorneys and experts` fees, ansing from or relating to entry onto or inspection of the Property ay Buyer and its agents This agreement to indemnify and defend Seller shall survive cbsing Buyer may continue to enter tine Property in accoroances with the foregoing terms and conditions after removal or sabstacbon of the feasibility contingency onry far ho- purpose of leasing or to satisfy conditions of financing c. Buyer waives the nght to remove a seller clisclosure statement ("Form 17- Commercial°} t' required by RCW E4 05 Hower, If Seder would othermse be required to provide Buyer with a Form 17- Com and if the answer to any of the questions in the section of the Farm 17- Commercial ent(dea "cnvrrwmentar w mM be "yes,` tnen Buyer does not waive the receipt of the "Ermro nmsntal' sec°ba of the Form 17-Comma cal which shall be prrmded by Seller 6 TITLE INSURANCE a. Trde Report. Seller authorizes Buyer, is Lender, Lisbng Broker, Selling araker or Closing Agent; at Seller's expense, to apply for and debvier to Buyer a 0 standard (O extended (standard if not completed) coverage owner's policy of btle insurance If an extended coverage owners pofn:y is specified, Buyer shall oey the increased costs associated with that policy including be excess premium over that charged for a standard coverage policy, and the cost of any survey required by the title insurer The its report shall be issued by Lend T (a utle company of Seller's choice, d not completed) If Seller previously received a preliminary commitment from a htle insurer that Buyer declines to use, Buyer shag pay any cancellation fee owing to the original title insurer Otherwise the party applying for btle insurance snail pay any title cancellation fee, in the event such a fee is assessed b. Per mrtbed Exceptions, Buyer shall notify Seller of any objectionable matters in the title report or any supplemental report within the earlier of (1) twenty (20) days after Mutual Acceptance of this Agreement, or (2) the expiration of the Feasibility Period This Agreement snail terminate and Buyer shall receive a refund of the earnest money lass any costs advanced or rc'rmltt��d for Buyer, unless Adt ^in AJE , 5) (;$`14 of Suver's "C..CB o such. oc ec t ` : ?:tar ncre2S ' i : r g re. i cVG ail ooixbonabie DrCVislOr cr (2) Buyer ,C`!fies Se"e, ma: GNU}°' , -aives any cojecr,ans wni& Seiler does not agree to remove If any new title matters are disclosed in a supplemental title report then the preceding termination objection and waiver provisions snail apply to the new title matters except that Buyer's notice of objections must be delivered within five (5) days of delivery of the supplemental report and Seller's response or Buyers waiver must be delivered within two (2) days of Buy of objecbons The closing date shall be extended to the extent necessary to y f � / INt tt 41S 3LPY£R I�AT i r io S =_t.t DAM 1 �'✓ BUYER MAT SELLER DATe. a nom ft0,= Broken AeepeWtMn 2D,' A PlGriro RESERVW ;,al. Form °5 1A Nftaw & Baia Agrwnwry Ree 1,20'1 Page a r 13 COMMERCIAL & INVESTMENT REAL ES T ATE PURCHASE & SALE AGREEMENT (CON71NUED) permit time for these notices Buyer shall nor be required to op�. to any mocta?a or deed of trust liens, or the statutory lien for real property taxes, and the same_ shad{ not ce dearreo to be Pe►r+iitted Exceptions provided, however, the the lien securing any financing wnnn Buyer has agreed to assume shall oe a Permitted Exreptior Except for the foregoing, those prov�sbns not o*cted to x for wnich Buyer waived its ob) tons snail be referred to coll eahvely as the "Permitted E=eDbons' Seller shag cooperate with Buyer and in-- title company to tear op)ectionable We ratters out shaf not be required to incur any out- of -=Fet expenses or facility other Iran payment of ,mortetary arrimbnancos n& assumed by Buyer am proration of real property taxes, and Seger shall provias an ownWs afnd3vit containing the inbmvition and reasonable :ovemrits requested by the title company The title Doficy stag co-imin no =eptions other than the General Exdusbns and Exceptions corrinton to such form of policy and ti-e r. r ' 1 Pemittt� Exceptions ` -r, ' 'r CLOSING OF SALE. The sale shall oe closes on ,`tom t �- r ✓+=��"r `� . Closing ") by Land Title Silverdale ( °Ciosing Kge r) (seller shall select the Cicairig Agent, if not ecrnpieted) Buyer and Seilar shall deposit with Cbsing Agent by 12 DO p m on the schs-3iled Closing date ail instruments and monre; required to complete the purchase in accordance with this Agreement `Closing" shall be deemed to have occurred whw the deed is recorded and the sale proceeds are available tv Seger Time is of the essence in the perfa-inanoe of this Agree men t. Sale proms shall be considered ava able tc Saber, 9 though they cannot be disbursed to Smarr until the next business day after Closing Notwithstanding the foregoing, if Seller informed Buyer during the Feasibility Period that Seller's underlying financing requires that it be defeased and may not be paid oft, then Closing shall be oonducted in accordance with the three -day closing orooess described in CBA Form PS_D This Agreement is intended to cap rsbtute escrow instructions to Closing Agent. Buyer and Seller w.1 provide any Supplemental instructions requested by Closing Agent provioed the same are consistent w& this Agreement. a CLOSING COSTS AND PRORATIONS Seller shall deliver an updated rent roll to Closing Agent not later than two (2) days before the scheduled Closing date in the forth required by Section 5(a) and any other information reasonably requested by Closing Agent to allow Closing Agent to prepare a seftmant statement for Closing Seller certifies that the information contained in the rent roll is owed as of the date subs bed. Seller shall pay the prwnum for the owners standard coverage title policy Buyer shall pay the excess premium attributable to any extended coverage or endorsements requested by Buyer, and the cost of any survey required in connection with the same Seller and Buyer shall each pay one-half of the escrow fees Any real estate excee taxes shall be paid by the party who bears pnmay rasp nsibilidy for payment under the applicable statute or code Rea and personal property taxes and assessments payable in the year of dosing; collected rents on any existing tenancies, interest; utilities, and other operating expenses shall be pro-rated as of Closing If tenants pay any of the foregoing expenses directly, then Closing Agent shag only pro rate those expenses paid by Seller Buyer shall pay tc Seller at Closing an additional sum equal to any utility deoosds or mortgage reserves for assumed financing for wnich Buyer receives the benefit after Closing Buyer shall pay all costs of financing including the premium for the lender's title policy If the Property was taxed under a deferred classificafion pnor to Closing, Cheri Seller shall pav all taxes `mares, cpnaitres dets?rred taxes cr s`mgar ner;.s %Nnich result foom Terre *1 of ,- P ;-cp T µ•p r3 �.. fay n_... - asi ?' n Yalu- a I �; •C •es ra e �.� @fie` Orri �Ef �_� .�..Ci' n£ _ � ('y ,r u._t:.e L't.�l.� .�l :cl'c'lC , S chi _4 e credited _O Buyer cr ua ivereed tic, Buyer a : ,si arr.Olr' r` requirad 5y sta`e or local IaW shall pay any sales or use flax applicable to the transfer of personal property included in the sale a. Unpaid Utility Charges. Buyer and Seller ❑ WAIVE 6100 NOT WAIVE (do not waive d neirher box checked) the nght to have the Closing Agent disburse closing funds necessary to satisfy unpaid utility charges afrecting the Property puruant to RCW 60 80 it "do not waive" is checked, then attach CBA Foe tiTrty Charges" Aodendum) to this Agreement. INITIALS` BUYER t M SELLER DAT= � aul ER DATE SELLER DATE. a CamRrer..rai 810191a AW*01 (ell mii ALL Itmr, a RESERVED -3i. Form os u mw-ft e a Bait A91l MAt ;L— Ilm" Pep 5CF 13 COMMERCIAL & INVESTMENT REAL EST ATE PURZHASE & SALE AGREEMENT fCoNTINUEO) a. POST - CLOSING ADJUSTMENTS, COL- ECTIOi S AND ?',4YMEkT& After Cling, BLW and Seller snal, razonctle the actual amount of mve hues car 1,abiiitles upon recsipt o payment trtarecif to the extent those ttmrs were prorated or - -mited a Clesmg based upon estimates 4ny odl& o- invocais remweo by Buyer aft- Closing witch relate to services reennerad or goods oefw rea to the Seller or the Prooarty pnor to Closing shall tie paid oy Sailer upon prewritatior of such obi or invoice At Buyers option Buyer may pay such Dill or invoice and be reimiburseci the amourt paid plus interar at the rate of 12% pe azrium beginning Meen (15) days from the date of Buys-es w1hen damaid to Se ller for resmoursennent, and sucn reimo ��^en is made NoWthstand'ing the foregoing, if Lenart- M cartar expenses oared on estimates subpct to a post -dosing reconciliation to the actual arnwnt of hose expenses., than Buyer sW be entitled to any surplus ano shall be liable for any credd resulting from. be re=riciTatiom Runts cobs front each tenant after Ciosing shall be aDpiiedd first to rentals due most r--ientty morn suah tenant for the parioc after dosing, and the balance stall be applied for the bonefr of Seller for as-", uwnt rentals owed for a oanol prior to closing The amwnts applied for the bertrnt of Saber snap be rimed ovar oy Buyar to Seller promptly after receipt. Seller shall be entitled to pursue any lawful rnebod o° collscrorn of delinquent rents but shall have no ngnt to evict tenants, after Closing 10 OPERATIONS PRIOR TO CLOSING Prior m Cbsing, Seller shall continue to operate the Pmper y in the ordinary course of its business and macttair the Property m the same or better condition than as wasting on tr- date of Mutual Acceptance but shall not be ieginred to repair materal Damage from casualty except as otherwise provided in this Agreement After the Feasibility Period, Setter shall not enter into or modify exGstirtg rental agreements or leases (except that Seller may enter into, modify extend, renew or te-ma Waite residential recital agreements or residential leases in the ordinary course of its business service contracts, or other agreements a5N - ,ttng the Property which nave term extending beyond Closing wdt>out first obtaining Buyers consent, which shall not be unreasonably withhaid 11. POSSESSION. Buyer shall be entitled to possession Eli on closing 0 (on dosing, if not completed) Buyer shall accept possession subject to all tenancies disclosed to Buyer during the Feasibility Period 12 SELLER'S REPRESENTATIONS. Except as disclosed to or known by Buyer prior to the satisfaction or waiver of the feasibility contingency stated in Section 5 above, including in the books, records and documents made available to Buys, or in the title report or any supplemental report or documents referenced therein, Seger represents to Buyer that, to the nest of Sellers actual knowledge, each of the following is true as of the date hereof (a) Seller is authonzed to enter into the Agreemtent, to sell the Property, and to perform its obligations under the Agreement; (b) The books, records, leases, agreements and otter items delivered to Buyer pursuant to this Agreement comprise all rtatenal documents in Sel'ler's possession or control regarding the operation and condition of the Property (c) Seger has not received any writberi notices that the Property or the business conducted thereon violate any applicable taws. regulations, codes and ordinances, (d) Seller has all catficates of occupancy, Permits, and other governmental consents necessary to awn and operate the Property for its current use, (e) There is no pending or tweatened litigabon which would adversely affect the Property or Buyers ownership thereof after Closing, (t) There is no pending or threatened condemnation or similar proceedings affecting the Procer'y arid ►he Preperq s riot .r`hin'os tormdarn—m of any planed or a.itharized tocai ,rrpercvam --m than raaf and perscnal cope taxes c na assessmerts d°sG reu ,n S---t 8 ahto4e) a;tn out2Jia tG penod pnor to closing Wvch, if not paid, child constitute a Lien on Property (including any personai property), or for %ranch Buyer mrar be held liable after Closing, (h) Seller is not aware of any concealed material defects in the Property except as disclosed to Buyer in wnting during the Feasibility Period, @ There are no Hazardous Substances (as defined below) currently located in, on, or under the Property in a manner or quantity that presently violates any Environmental Law (as defined belciw mere are no undergroun o � a tanks bcated on the Propeeft and there is no pending or threatened inv�gation or INITIAL° BUYER ,i `J DATc l 3 ! i �- $GL - _ DATE BUYER DATE. SELLER DATc a',ommeraa h keskssad ESER 04 : ?J,'sHrS F�S�IIED GBA Form PS 1A NFUMe 3 5016 Ap 8WWt Rev 1x1011 Pape 6 d 13 : 0MMERQkL & INVE"1 EW REAL. ESTATE PURCKk,3E & SAL: AGREEMENT (COKMNUED, remedial arson by any governments agency regarding the misase of 4=ardous Sunstances or the violation of Environ nee" Lew et trio Property As used herain the term ' �-arnous Subsiarices" snall mean any substance or rnatenai now or hereafter defined or regulated as a r=zardous substance, hazardous waste t=c substance pollutant, or ocintaminant undw any federal, state, o' local taw regulawn, or ordrance governing any suostanome that could cause actual or suspected harm to human health or the ezviranment ("Environmental Lzw") ins terra "Hazardous Substance;" smcrficaliy inriuoes, buts not limited to petroleums, ,petroleum by- products and asbestos If pnor to Closing Seller or Buyer disocive s ang intonnabor` wwha.n would cause any o* the repr --ari o is active to be false if the same ware deemed made as of the aata of such discovery, then the party disoovenng the same shall promptly notTy the other party in writing. If me newly- discovered information will result it costs or IraNI* to Buyer in excess of trie lesser o' $40D,000 or five percent (5 %) of the purchase price stated ir, t'vs Agreeman, or wil! matenatty aaysrssty affect Buyers mtenxfao use of the croperty tnen Buyer wait have the ngn to terminate the Agreement and recKe ve a refund of its earnest money Buyer shall aive notice of termination within five (5) days of oisoovenng or remwing written notice of the new nforrrmon Nothing in th-s paragraDh shall prevent Buyer from Dursuing its remedies against Seller 0 Seller had ac' ual knoo4edge of the neWy- d :soovered inf6miatfion sucn that a representation provided for above was false 13. AS4& Exspt for those re-presentations and warranties sDecifically included in this Agreement (i) Seller makes no representations or warranties regarding the Property, (u) Seller hereby disclaims, and Buyer hereby waves, any and all represantsbons or warranties of any kind, express or implied, concerning fie Property or any portion thereof, as to its condition, value, compliance with laws, status of permits or approvals, existence or absence of hazardous maternal o^ sit-, ocrparicy rate or any other matter or similar or dissimilar nature relating in any way to the Property, including the warranties of fitness for a particular purpose tenarriabfity, habitability and use, (in) Buyer otherwise takes the Property "AS tS,` and (v) Buyer represents and warrants to Seiler that Buyer has sufficient experience and expetse such that rt is reasonable for Buyer to rely on its aim pre- closing in sDections and i n edgations 114 PERSONAE. PROPERTY a. Trtis sale includes all right, title and interest of Sell to the following tangible personal property O None id That portion of the personal property located on and used in connection with the Property, which Seller will itemize in an Exhibit to be attached to this Agreement within ten (10) days of Mutual Acceptance (None, if not completed) The value assigned to the personal property shall be $ _ 0.00 (d not completed, the County-assessed value ff available, and 6 not available, the fair market value aetemuned by an appramer selected by the Lisbrig Broker and Selling Broker) Seller warrants title to, but not the condition of, the personal property and shall convey it by bid of sale b. In addition to the leases and Vendor Contracts assumed by Buyer pursuard to Section 5(a) above, this sale includes all right, title and interest of Seller b the following intangible property now or hereafter existing with respect to the Property including without limitation all rights-of-way, rights of ,ngress or egress or other interests in, on, or to, any land, hign", street, road, or avenue, open or proposed, in , 'r, or acros in front cf ab ttirg cr sd vrirg the Properfij all nights 'r, u'tt -vs serving the g ;pe-n, alt orar,,,rgs, plans, specif cawr's arks cir'er arcnrtecturai or ancir i eenng SorK creauct, all gcveri �: ry " c' hermits, certificates, licenses, ai,thenzanons and appro a s, all rights, cl&rrs, caLSSS of action, and warranties under contracts with contractors, engineers, architects, consultant` or other oarties assDoatea with the Property, all ubrity, security and Wier deposb and reserve accounts made as security for the fulfillment of any of Seller's obligations; any name of or Wephoone numbers for the Property and related trademarks, service marks or trade dress, and guarantrr--, warranties or other assurances of WMALS BUYER E r3ATt ! " r ' S - / DATE. 'lil // BUYER Q4 i c j Sr LER DATE. 1jZ/�+� i Co C=mw=t tBML y ASM60W. 2111' / ALL PUNTS RES9WE i "Form PS 1A rvCM96 6 SaleA.pre~ REP 1J241t OWi COMMERCIAL S IN IES T MENT PEAL ESTATE PURCHASE & SALE AGREEMENT (CONTINUED) 15. CONDEMNA XION AND CASUALTY. Sailer bears ail nsr of joss unttt Closing, ana tnar..after Buyer shat bear the risk of loss Buyer may terminate this Agreement and obtain a rafkind of tn_ aames: money r° Improvements on the Prwerty are destroyed or materially damaged oy casualty 5efore Closing, or r condemnation proceeaings are commenced against all or a Dodson of the Property before Closing. Damage will be considered material if the cost of repair exxeds tries lesser of 51),000 or fiw Dement (5 %, of the p,irchase Drice stated in this Agreement: Alternariveiy, Buyer may ele& to par -ead with closing, in which case, at Closing, Seller shall assign to Buyer all claims and right to prowess under any Droperty insurance policy and stall credit to Buyer at Closing the amount of, any clanuctible provided for in the policy 1E. FIRPTA - TAX WITHHOLDING AT CLOSING. Closing Agent is instructed to prepare a ceraftation i,CBA or NWMLS Form 22E, or eourvalent) that Seller is not a "foreign person" wrmin the meaning of the Foreign Investment in Rea Property Tax Act, and Seller shall sign it on or before Closing IT Seller is a foreign person and this transaction is not otherwise exempt from FIRPTA, Closing Agent is instructed to withhold and pay the required amount to the Internal Reven ,a Service 17 CONVEYANCE. Title shall be conveyed by a Statutory Warranty Deed subied only to the Permitted Exceptions. If this Agreement is for conveyance of Seller's vendee's interest in a Real Estate Contract, the Statutory Warranty lased shall include a contract vende e's assignmment sufficient to convey after acquireo title At Closing, Seiler and Buyer snail execute and deliver to Cicang Agent CBA Form No PS-AS Assignment and Assumption Agreement transferring all ieeses and Vendor Contracts assumed by Buyer Dursuant to Section 5(a) and all intangible property transferred pursuant to Section 14(b) 18 NOTICES AND COMPUTATION OF TIME. Unless otherwise spadfied, any notice required or permitted in, or related to this Agreement (including revocations of offers and counteroffers) must be in writing Notices to Seiler must be signed by at least one Buyer and must be delivered to Seller and Listing Broker with a courtesy copy to any other party identified as a recipient of notices in Section 28 A notice to Seller shall be deemed delivered only when received by Seller Listing Broker, or the licensed office of Listing Broker Notices to Buyer mast be signed by at least one Seller and must be delivered to Buyer with a copy to Selling Broker and with a courtesy copy to any other party identified as a recipient of notices in Section 28 A notice to Buyer shall be deemed delivered only when received by Buyer, Selling Broker, or the licensed office of Selling Broker Selling Broker and Listing Broker have no responsibility to aovise of receipt of a notice beyond either Dhoning the represented party or causing a copy of the notice to be delivered to the party's address provided in this Agreement Buyer and Seller shall keep Selling Broker and Listing Broker advised of their whereabouts in order to rece ive prompt notification of receipt of a notice If any party is not represented by a licensee, then notices must be delivered to and shall be effective when received by that party at the address, fax number, or email indicated in Section 28 Unless otherwise specified in this Agreement, any period of time In this Agreement shall mean Pacific Time and shall begin the day after the event starting the period and shall expire at 5 00 p m of the last caiPndar day cf `ale Specified _ c : me l' "'e ias' la v is 3 Safurda 1 St-dav or jai lol,day as refined n RC V/ 1 in v50, in 'vmcn case i $ c}.ec'`cc ' rh "i -e "a.: ,.Yrtra on rre next day that is not a Saturday Sunoay or ,egal hel , kny sp eoflied period of 5ie (5) days or less shall not include Saturdays, Sundays or legal nolidays Notwithstanding the foregoing, references to specrfic dates or times or number of hours shall mean those dates, times or number of hours, provided, however, that If the Closing Date falls on a Saturday, Sunday, or legal holiday as defined in RCW 1 16 050, or a date when the county recording office is closed, then the Closing Date shall be ft next regular business y ita *ia s BUYER . %/ r ' I / ' - SELLe e fie ! Z r `� /t -- BUYER DIiTc SELL ER DATE O Rmesa9 A—I Pia-fro, r AeaeaEi E 2 VE A_t. r�5- �Y� CBA form P& to Purham 8 Sa>$ Agreement ROL i'aw , Pegs a to 13 COMMERCIAL is INYESTMEKT REAL. ESTATE PURCHASE & SALE AGREEMENT (CON rINUEED) 13. AGENCY DISCLOSURE. At the signing of this Agreernew , Selling Broker Kathy Berndtson represented Buyer and the Listing Broker Vic'Ubk represented Seller Selling Firm, Seeing Firth's Designated Broker, Selling Brokers Branch Manager (if any) and Selling Brokers Managing Broker (d any) represent the same party that Selling Broker represents Lasting Firm, Listing Firm's Designated Broker, Lasting Brokers Branch Manager ('d any', and Listing Broker's Managing Broker (if any) represent the same party the the Listing Broker represents tf Selling Broker and Listing Broker are different persoss atfifiated we, the same Fun, then both Buyer and Seller confirm tneir consent to trie Brokers' Designated Broker, Branch Manager (d any), and Managing Broker (if any) representing both paibes as a dual agent If Seeding Broker and Listing Broker are the same person representing both parties, then bot^ Buyer and Seller confirm their ;anent to that person and his/her Designated Broker, Branch Manager (1` any), and Managing Broker (If, any) representing botn parties as dual agents All parties acknowledge recamt of the pampnlet enh1ed "The Law of, Real Estate Agency " 24 ASSIGNMENT Buyer 1:6 rnry 0 may not (may n., d not completed) assign t Agreement, or Buyer's rights hereunder, without Seller`s prior wntten corsent, unless provided otherwise herein If the "may not" option is selected and the words "and/or assigns" o similar words are used to idenb`y the Buyer, then this Agreement may be assigned with notice to Seller but without Sellers consent only to an entity which is controlled by or under common control with the Buyer identified in this Agreement Any other assignment requires Sellers consent The party identified as the initial Buyer shall remain responsible for those obligations of Buyer stated in this Agreement notwithstanding any assignment and, if this Agreement provides for Seller m finance a portion of the purchase price, then the party identified as the initiai Buyer shall guarantee payment of the Seller financing 21 DEFAULT AND ATTORNEY'S FEE a Buyses default, In the event Buyer fails, without legal excuse, to complete the purchase of the Property, then (check one) E1 Seller may terminate this Agreement and keep the earnest money as houidated damages as the sole and exclusive remedy available to Seller for such failure, or 0 Seller may, at its option, (a) terminate this Agreement and keep as liquidated aamages the eamest money as the sole and exclusive remedy available to Seller for such failure, (b) bring suit against Buyer for Sellers actual damages, (c) bring suit to specifically enforce this Agreement and recover any incidental damages, or (d) pursue any other rights or remedies available at law or equity b. Seller's default. In the event Seller fads, without legal excuse to complete the sale of the Prooerty then (check one) 66 As Buyers sole remedy, Buyer may either (a) terminate this Agreement and recover all earnest rn ,rey or `ees oaic ay B uyer -heter or -ci tt s_'Te are r c-- ;r anolicaab'° 0 `a rJr -ease pncc', cr (o) tt ng, star ` u specifically wfc "c° '.Ts A,greemen' 1rtG recover me de damages, prowdea ho%ever, Buyer must file suit wtthir sixty (60) days from 1 scheculed date or closing or from the date Seller has informea Buyer in writing that Seller will not proceed with closing, whichever is earlier, or 0 Buyer may, at its option, (a) bring suit against Seiler for Buyers actual damages, (b) bring suit to specifically force this Agreement and recover any incidental damages, or (c) pursue any other rights or es pviable at law or equity 1^IRiALS. BVYrR DA 7, - " 1 Z, : SELLER DATE ` i BUYER DATE SM LER DATE 0 Cammmmi Br7km6 AsswMan 2M I ALL FbGH B FESERVRD COA =arm -MK ourJ m 6 Sege Agaemeert PM Irm I Doge b ar 13 COMMERCIAL & INVESTMENT REAL ESTATE PURCHASE S SALE AGREEMENT (CONTINUED) Neither Buyer nor Sail- may recover consequential damages such as lost prom if Buyer or Salle insfitutes suit against the other concerning tnis Agreement, the prevailing party is entitfso to reawnable attorneys' fees and expenses In the event of trial, the amount of the attorney's ii shad` be fixed by the court The vanue o; any suit shall be the county in which the Property is located ano this Agreement shall be governed by the ism of the state where the Property is located 22. MISCELLANEOUS PROVISIONS. a. Complete Agreement Th!s Agreement and any adders and exhibits thereto state the entra understanding of Buyer and Seger regarding the sale of the Property here are no verbal or otW written agreements which modrfy or affect the Agreement b. Counterpart Signatures. This Agreement may be signed in counterpart, each signed counterpart shall be deemed an original, and ah counterparts "ether shall oo^.stitute, one and the same agreement a Electronic Deirvery. Electronic delivery of oocuments (e 9, transmission by facsimile or email) inciudag signed offers or counteroffers and nobcaas shall be legally sufficient to bins the party the same as delivery of an original At the request of either party, or the Ciosing Agent the parties will replace electronically delivered offers or counteroffers with onginal documents d. Section 9031 Lilk*40nd Exchange. If etcher Buyer or Seller mtenas for this iransaction to be a part of a Section 1031 like-kind exchange, then the other party agrees to cooperate in the completion of the like -kind exchange so long as the cooperating party incurs no addiaonal liability in doing so, and so long as any expenses (including attorneys fees and costs) incurred by the cooperating party that are related only to the exchange are paid or reimbursed to the cooperating party at or prior to Closing Notwithstanding Section 20 above, any party completing a Secbon 1031 like -kind exchange may assign this Agreement to its qualified intermediary or any entity set up for the purposes of complabng a reverse exchange 23. ACCEPTANCE; COUNTEROFFERS. Seller has until midnight of 11 /IC2 (if nor filled in, the third business day) following the day Buyer delivers the offer to accept this offer, unless sooner withdrawn If this offer is not timely accepted, it shall lapse and the earnest money shall be refunded to Buyer if either party makes a future counteroffer, the other party shall have until 5 00 p.m on the business day (if not filled in, the second business day) following receipt to accept the counteroffer, unless sooner withdrawn ff the counteroffer is not timely accepted or countered, this Agreement shall lapse and the earnest money shag be refunded to the Buyer No acceptance, offer or counteroffer from the Buyer is effective until a signed copy is received by the Seiler, the Listing Broker or the licensed office of the Listing Broker No acceptance, offer or counteroffer from the Seller is efsecbve until a signed copy is received by the Buyer, the Selling Broker or the licensed office of the Se1Gng Broker. "Mutual Acceptance" shall occur when the last counteroffer is signed oy the offeree, and the fully- signed counteroffer has been received by the offeror, his or her broker, or the licensed office of the broker If any party is not represented by a broker, then notices must be delivered to and st•aii '`,e °tfFr''.ive wnen rerQrred by that cart;/ 24 li F0P.i?.ATJ0F; ;Y.ft;tSFi In Ine event tr,s Ag is terminated, Buyer agrees io deliver to Seller within ten (i0) days of Seller's written request copies of all materials received from Seiler ana any non - privileged plans, studies, reports, inspections, appraisals, surveys, arawmgs, permits, applications or other development work product relating to the Property in Buyer's possession or control as o" a date this Agreement is terminated iNMAL& BUYER f DATE ' ( / ` SELF =R DATE t BUYER ` DATEE S i:R DATE 'l( OQ O CQIIrtI mo Smimm Acom0m 20 ALL ROWS �_AVe- CW -SA Pam ps V, - uRhase &bale Ap�tanoW Res Mli -ape 10 ce -9 COAAMERCIAL & INVESTMENT REAL ESTATE PURCHASE A SALE AGREEMENT f CONTINUED) 25. CONFIDENTIALITY Unfit and unless closing has ne n consummatea, Buyer and Seller shall follow reasonable measures to prevarit unnecessary disclosure of information obtained in connection with the negotlatlor, and performance of this Agreement Neither parry shall use or knowngiy per-nit the use of aiv such information in an} runner detrimental to the other party 26. SELLEWS ACCEPTANCE AND BROKERAGE AEREEMEN T Seller agrees to sell the Proper y or, the terms and oDndibans herein, and further agrees to pay a commission in a toil amount computed in accomance with the isting or commission agreement If there is no wnlisn iistino or commission agreement, Seller agrees to pay a commissior of % of the sales price or $ The commission shall be apportioned between Listing Firm and Setting Firm as specified in the fst,ng or any co- brokerage agreement If t-iere is no [sung or written co- brokerage agreement, then Listing Firm shag Day to Sel ing Fi-m a m m- nission of % of the sales price or $ Seller assigns to Using Firm and Selling Firm a portion of the sales proceeds equal to the commission If the earnest honey is retained as liquidated damages, any costs advanced or committed by Listing Firm or Selling Firm for Buyer or Seller shag be reimbursed or paid therefrom, and the balance shall be paid one- alf to Seller and one - half to Listing Firm and Selling Firm according to the listing agreement and any co- broke agreement. In any action by Listing Firm or Selling Firm to enforce this Seccbon, the prevailing party is entitled to reasonable attorneys' fees and expanses Neither Lasting Firm nor Selling Firm are n3cewn. g compensation from more than one party to this transaction unless 6sclosed on an attached addendum, in which case Buyer and Seller consent to such compensation The Property described it attached Exhibit A is commercial real estate Not ftiandng Section 25 above, the pages containing Ehis Section, the parties' signatures ano an attachment describing the Property may be recorded 27 LISTING BROKER AND SELLING BROKER DISCLOSURE. EXCEPT AS OTHERWISE DISCLOSED IN WRITING TO BUYER OR SELLER, THE SELLING BROKER, LISTING BROKER, AND FIRMS HAVE NOT MADE ANY REPRESENTATIOiv'S OR WARRANTIES OR CONDUCTED ANY INDEPENDENT INVESTIGATION CONCERNING THE LEGAL EFFECT OF THIS AGREEMENT, BUYER'S OR SELLER'S FINANCIAL STRENGTH, BOOKS, RECORDS, REPORTS STUDIES, OR OPERATING STATEMENTS, THE CONDITION OF THE PROPERTY OR iTS IMPROVEMENTS, THE FITNESS OF THE PROPERTY FOR BUYER'S INTENDED USE OR OTHER MATTERS RELATING TO THE PROPERTY, INCLUDING WITHOUT LIMITATION, THE PROPERTY'S ZONING, BOUNDARIES, AREA, COMPLIANCE WITH APPLICABLE LAWS (INCLUDING LAWS REGARDING ACCESSIBILITY FOR DISABLED PERSONS), OR HAZARDOUS OR TOXIC MATERIALS INCLUDING MOLD OR OTHER ALLERGENS SELLER AND BUYER ARE EACH ADVISED TO ENGAGE QUALIFIED EXPERTS TO ASSIST WiTH THESE DUE DILIGENCE AND FEASIBILITY MATTERS, AND ARE FURTHER ADVISED TO SEEK INDEPENDENT LEGAL AND TAX ADVICE RELATED TO THIS AGREEMENT I HTALS. BUYER L DATE / • 5EU._R DATE BUYER DATE 3ELLER oATE O rarm u=1 fees A=dadm 20.1 A L M314rs R=_3ERv3 cea =am to ourchow s Baia Agmwart itav 1/201 Page 11 of IS COMMERf2IAL & INVESTMENT REAL ESTA'f E PURCHASE & SALE AGREEMENT (CON T INUED) 26. IDEN"nPICATIONt OF THE PARTIES. The to liovAno is the contact intzi Tor the parties invoived in this Aareamen4 Sw r Se Der CorP.& Boat haunch vestment LI.0 audio Contact CFty of Bremerton Adder 1053 NWout St Address Bremerton, WA 98310 Business Peons' 360- 473 -9012 Business Phone.' Mobile Phone Mobile Phone- Fax Fax Emat david.ro®an23 a- bn.net Emad Selling Firm Ustins Firm Naive Bolan L Scott Marne Bradley Scott Inc Assumed Name (if applicable) Assumed Name (f applicable) Selkng Broker K&Jhvv Beredtson osnrig Broker Vic LDsh Address 2244 NW Backlin Hill Rd Suite 101 Address 400 Warren Ave Suite 450 Silverdale. WA 98383 Bremertton. WA 98337 Business Phone 360- 981 -9103 Business Phone. 360479 -6900 Mobile Phone Moble Phone Email Katbvb(4joh nlscott.aam Emad' F= 360-692 -6764 Fax MLS Ofnce No 99'36 MLS Office No- Licensed Office of the Sol lina Brisker Licensed Office of the Usting Broker Address 2244 -NW BucWn Hill Rd suite 101 Address Silverdale, Wa 98333 6r ;" 'j`p; Em notkees.silyerdale@;oiaulscott corn Email Fax 360 - 692 -8764 Fax' CBA Office No C&A Office No r� A llsfTlAL.S surer t cat= s carl:. / L '� r r . BUYSR Dail Stt.: EP. DAiE,,� *Cam " 9MknM A 2D11 C W ALL R1Gr11'S RESaa2VED GM Form P6_1A OulthMs & SeloANN RMV VM011 cup 13 W, 13 COMPAERCIAL & INVESTMENT MEAL ESTATE PURCHASE & SALE AGREEMENT (CONTINUED) EXHIBIT A' R agal Descrinhan) r r • To ensure accuracy in the legal description consider substituting the legal description contained in the preliminary commitment for title insurance or a copy of the Property's last vesting deed for this rage Leo not neglect tc 'a- *ne subsbtut 'EE)(`­ A" Ycu shmi. avo.d trarscL oing tt'e lega descrpticn because any error in +rarlscnoon may render the !egal descnptior inac—curate and tins Agreement unenforceable IhIITit.: S BUYER E?ATc DATE BUYER QA i E s3 DATE t i ji r it i o f r t `t ax Descripa Tax A=Lff , No. Process Na Situs 4 aress Zi?�4L�1.4 -12E -2002 25- 2224FE PARCEL 1: THAT PORTION OFF THE FOLLOWING DESCRIBED TRACT 2i Go vTM4MENT LOT 2, SECTION 22, TOWNSMP 24 NORTH, RANGE 1 EAST, W.M.. IN KITS_4P COD'NTY , WASHINGTON. LYING NORTHviTS'f ERLY OF PRIIKARY ST ATE EgGHWAY NO. 21, AS CON - NTYED TO THE STATE OF W ASHINNGTON BY DM REC ©R83ED U AUDITOR'S FILE NO.307'91 4.ND LYING SOUTHERLY OF THE OLD NAV YARD HIGHWAY: BEGLN_NLNG AT A POLN"F ON THE SOUTHERLY MARGUi OF SAID OLD ?NA' Y YARD HIGHWAY 1.02 FEET'" EAST OF THE INTERSECTION THEREOF WITH THE NORTH SOUTH CENTERLINE OF SAID SECTION; THENCE N0RTH&4ST,RLY ALONG SAID SOUTHERLY MARGIN 1038.09 FEET TO THE TRCE POLrt'T OF BEGLNINFNG; THENCE SOUTH 52 *00' &AST 652.64 FEET TO THE INNER HARBOR LINE; THENCE NORTH 56 *49`48 EAST ALONG SAID UC ER EMRBOR LINE 73.96 FEET TO A POLN'T 207 FEET SOUTHWESTERLY, AS MEASURED ALONG S.A.ID INNER HARBOR LINE, FROM TEZ INTERSECTION THEREOF VfTTI3 THE SOE)THE STERIY PRODUCTION OF THE SOUTHWESTERLY MARGIN OF MCCOLLOM AVENGE., AS DELINEATED ON THE FACE OF THE PLAT OF ANDERSON'S BAY VIEW ADIDMON TO PORT ORCHARD, ACCORDING TO PLAT RECORDED IN VOLUME 2 OF PLATS, PAGE 43; THENCE NORTH 48 *33 'VEST, PARALLEL V!'ITH SAID PRODUCp_,D LINE, �13.0a FEET TO THE CE.h'TERIJN'E OF COUNTY ROAD NO. 154 (NOW VACATED), THENCE SOUTHWESTERLY ALONG SAID CENTERLINE Ifa.43 FEET, MORE OR LESS, TO A POINT WHICH BEARS NORTH 52 *00' WEST FROM THE TRUE POINT OF BEGINNING; THENCE SOUTH 52 *00' EAST 92.50 FEET TO THE TRUE POINT OF BEGINNING; TOGETHER WITH THE SOUTHERLY 15 FEET IN WEDTH OF THE OLD NAVY YARD HIGHWAY, AS VACATED BY ORDER ENTERED Il! VOLUME 6 OP COMMISSIONERS JOURNAL, PAGE 457. >>>EXCEPT FOR THAT PORTION CO'.NVEYED TO THE STATE OF WASHINGTON FOR SR304, UNDER AUDITOR'S FILE No. 200111200119, RECORDS OF KTTSAP COUNTY, WASHINGTON, AND AS (ROUND R'ITIIIlN THAT CERTAIN MAP OF DEFIII= LOCATION NOW OF RECORD AND ON FILE IN THE OFFICE OF THE SECRETARY OF TRANSPORTATION AT OLYMPIA, AND BEARING DATE OF APPRO'v AL OCTOBER 30, 1998, REVISION PENDING. >>> TOGETHER WITH THAT PORTION OF VACATED CH BEACH ROAD, AS DESCRIBED MORE FULLY UNDER AUDITOR'S FILE NO. 2010100b0299, AS ATTACHES PER OPERATION OF LAW. >>>PARCEL n: L 2 & BLK 21 CHARLE TLS A TRI TR OF LAND LYING BTW 2 STATE RDS IMItMIATELY W OF BREMERTON N.Y MORE PARTICULARLY DES AS FOLS BEG AT CEN LN OF SUMMIT AVE &. ELY MAR OF MC CULLOM AVE S 48 *41' E ALG ELY MGN OF MC MU AVE 229.03FT S 41 *19' W 260FT TO IlNTTIAL PT OF THIS DES N 48 *41' W 3310(T N 69 *26' E 81.73FT S 45 *40' W 72AAFT TO BEG ? »FXCEPT FOR WHAT PORTION CONVEYED TO THE STATE OF Vls..Silel l�;'- 1IV FOR Sii304 "F`I t.UDITORIS FIL S P?O 2 ,f) 0A160" 47, PFCGRDS OF D�:�ii��? Oa RECORD AN o ► � r� � `tai. s <3 a,3sn'�i.. it:' t�,r' e1 SECRETARY OF T'R.ANSPORTA FION AT OLYWIA, A AND BEARUiG BATE OF APPROVAL OF OCTOBER M, 1998 AND REVISED SEPTEMBER 15, 2000. »> TOGETHER WITH THAT PORTION OF VACATED CHARLESTON BEACH ROAD, AS DESCRIBED MORE FULLY UNDER AUDITOR'S FME NO.201010060299, AS ATiACBIES PER OPERATION OF L AW. dose this v ondow # } r O Cm ow--O 91 k Aa� 207 S f AL RIGGHi'3 RJR W (, t � CIIk Fmm LIA LMH W AddenauM Rev 78071 Page 7 or 2 UTIL" CHARMS ADDENDUM The foliowng is part of the Purchase and Safe Agreement dak9d November 11.2012 Detwean City of Bremerton CSeller' + and Bast Launch l eyrolMents LLC 'nad I or acd=r. ("Buyer') concerning 1116 t'-had tonleaeh Rd — W R6wrlm. W 12 (the "Property ") %rsuant to RCW 80 80, Buyer and Selier request the Closing Agent to administer the disbursement of cling funs necessary to satisfy unpaid utility charges affecting the Property The names and addresses of all utilities providing service to the Property and having Fien rights are as follows Water District Name Address City, State, Zip Sewer Distnc:, Name Address Cdy, State, ZIP Irrigation District Name Address City, State, Zip Garbage Name Address City, State, Zp :ne Address n City, State, Zip INI i fALS BUYEP J DATE ) i //I / DATE j Z I Zr lI i y BUYER '.SAT: S ELLER DA TE - 1 i ��. O CwnmWdm BMWs An=mdkm 21)' S ALL RIGM rR-'SEWED Me CBA r;DTM UA u8my A&Jarmm Rev WIP-1 Page 2 er 2 U i ILITY CHARGES ADDENDUM (CON MNUED) Gas Name Andress City, State, zip Speaiai Distn:(s; 03=1 improvement districts Name or utility Ixai imaravemant} Address Coy, State, Zip F THE ABOVE INFORNIA.TION HAS Rte' 8_EN FILED M1E TU ED IK AT T4E T OF MUAL ACCEPfANt"e OF THIS AGREEMEW THEN (1) WTrHW4 DAYS (S DAYS F NOT FW_W INi OF MUTUAL ACCEPTANCE OF THS AGReEME T, SEL..ER SHALL PROVIDE THE USTWG 8ROKEP SgLUNG 9ROKER. OR CLOSM AGENT WrM TIRE NAMES AND ADDR =NES OF ALL UnLITY PROVIDERS k1AVING " RLGHTS AFFECTWG TtE °ROPERTY AND (2) BUYeP AND SELLSA ALM ORiZE LSTIN3 BROK81L SE6LM BROKER OR CLOSM ACENr TO MEW WTO 745 ADOEPOL tl TAE NAMES AND ADDRESSES OF THE L'TLLITY PrROVEeRS (D°._NT(FED BY SELLER. SELLER AMMONDDGGtES THAT THIS ADDMUM DOES NOT ROJESVE SELLER OF ITS OVJG,TiON TO PAY UTILITY CHARGES BILLED OR UNBy1ED OR EwD_RCED BY A RECDROW LIEW OR NOT THE PARTE5 UNDERSTAND THAT RMER LISTING WoK` NOR SEU'"G BROKER IS RESPONSIBLE FOR PAYWG Un.I1Y CHARG°_S OR FOR INSLMNG THATTHEY ARE PWD BY ANY OTHER PERSON iNT)ALS BUYER ' 1 DA'I'S r i t J I SELEt� 6 r DATE U l BUYER rAT r SEL_ER DATE =rum 22D CCoprpt ZDt ; Catronat Claus 4adendum NodhWest Murooie Lacing Sewce, Rev 2 t of OPTIONAL CLAUSES ADDENDUM � O ALL RtGFftS 4�S;RVcC aagt 2 Z PURCHASE & SALE AGREEMENT Canm►ued 6. Q Insulation - New Construction If this is new constructior Federal Trade Commission Regulations reauire 39 the following to De filled in If insulation has not yet been selected, F ,, C regulations require Sailer to furnish 4C Buyer the information below in writing as soon as available at WALL INSULATION TYPE THICKNESS R -VALUE 42 CEILING INSULATION TYPE THICKNESS R VALUE 43 OTHER INSULATION DATA. 44 7. ❑ Leased Property. Buyer hereby acknowledges that Seller leases the following items of personal property, 45 possession of which shall pass to Buyer an Closing 4s Q propane tank, Q security system, Q sate6lte dish, Q other 47 Buyer shall assume the lease for the items selectee, perform all of the obligations of the lease, and hold 48 Seller harmless from and against any further obligation liability, or claim arising from the lease 49 6 Q Homeowners` Association Review Period If the Property is sub)ecl to a homeowners' assoaabon or any 50 other association, then Seller shall provide Buyer a copy of the following documents (if available from the 51 Assocation) within days (10 days if not filled in) of mutual acceptance 52 1 Assertion rules and regulabora, including, but not limited to architectural guidelines, 53 2 Association meeting minutes from the prior two (2) veers, 54 s Association Board of Directors- meeting minutes from the prior six (6) months, and 55 4 Association financial statements from the prior two (2) yeas. 56 If Buyer, in BuWa sole discretion, does not give notice of disapproval within days (5 days d not 57 filled in) of receipt of the above documents or the date that the above documents are due, then this 58 homeowners' associabon review bend shall conclusively be deemed sabsfied (waived) if Buyer gives timely 59 notice of disapproval, then tnis Agreement shall terminate and the Earnest Money shall be refunded to Buyer 60 9. Q Excluded ftem(s) The following item(s), that would othe*wise be included in the sale of the Property, is 61 excluded from the sale (`Excluded Items) ") Seller shall repair any damage to the Property caused by the 62 removal of the Excluded Item(s) Excluded Item(s) 63 64 65 10 Cl E -mail Transmission E.,maa transmission of any signea onginal document, and retransmission of any 66 signed e-mail transmission, shall be the same as delwery of an original, provided that the oocument is sent to 67 both Selling Broker and Selling Firm or both Listing Broker and Listing Firm at the e-mail addresses below At 68 the request of edner party, or the Closing Agent, the Daries will confirm e-mail transmitted signatures by 69 signing an onginal document 70 71 Selling Broker E -marl Address Lsting Broker E-mail Address - -- - -- - - -- — - - 7 2 = f µ i t ` - ., ... r1 � "�`�.. -: , Grin r'1L'� ;nzad C —c 5 ,odress 11.1W Other t ` [ j { ` ' 73 i 74 ' t 75 n 76 r 7 f Irdials BUYER C`;-� i J Dates SELLER — < - A Date BUYER Date { Date f SELLER Date =arm 727 =00vdph*_ 201 s Ophonai Clauses Masnaurr, NoRhxrest Muittoie Listing Semi= Psv 1 OPTIONAL CASES ADDENDUM TO ALL nw� F�ot "raga sr 2 PURCHASE & SALE AGREEMENT The following is part of the Purchase and Sale Agreement dated November 12. 2012 1 between Boat Launch Investments LLC / or asses ( "Buyer'") 2 and City of Bremeron ( "SeWj 3 .oncoming 1116 Charleston Beach Ind W Bremerton. WA (the "Praoerhr") 4 CHECK IF INCLUDED: a 1. al Square Foelttage/Lot Size/Encroachments The Listing Broker and Selling Broker Take no reoresen:abons £ concerung (a) the lot size or the accuracy of any information provided by the Seller, (b) the square footage of 7 any improvements on the Property; (c) whether tnare a any ancrsacnments (fancas, rockeries, budeings) on P. the Property, or by the Property or, adjacent properties Buver is advised to verify lot siz_, square footage and S encroachments to Buyer's own sausfacnor within the inspection conangency penod 10 2. Trtle Insumnoe. The Tifie insurance clause in the Agreement provioes Seller is to provae the then -cunt AL TA 4 1 Corm of Homeowner's Policy of Tide Insurance The parties have tie option to provioe less coverage by seiacaig 12 3 Standard Owner's Policy or more coverage by selecting an Extended Cove ooucy 13 • Standard Owner's Policy. Seller authorizes Buyer's lender or Closing Age at Sellers exDanse, to 1c apply for the then—curant ALT for of Owner's °olicy of Title insurance, together with homeowner's 15 adoiibonal protection and inflation protection endorsements if available at no additional cost, rather than 1c the Homeowners Policy of Title Insurance 17 • Extended Policy. Seller authorizes Buyer's lender or Closing Agent, at Seller's expense to apply for an 18 ALTA or comparable Extended Coverage Policy of Title insurance, rather tnan the Homeowner's Policy 19 of Title Insurance Buyer shall pay the increased costs associated with the Extended Coverage Policy, 20 rn,- muding the excess premium over that charged for Homeowner's Policy of Title Insurance and the cost 21 of any survey required by the title insurer 22 3. It Property And Grounds Maintained Until possession is transferred to Buyer, Seller agrees to maintain the 23 Property in the same condition as when initially viewed by Buyer The term "Property" includes the bulding(s), 24 grounds, plumbing, heat, electrical and other systems, and all Included Items Should an appliance or system 25 become inoperative or malfunction prior to transfer of possession, Seller agrees to either repair, or replace the 26 same with an appliance or system of at least equal quality Buyer reserves the right to reinspect the Property 27 within 5 days prior to transfer of posseemon to verify the foregoing Buyer and Seller understand ano agree 28 that the Listing Broker and Selling Broker shall not under any circumstances, be liable for the foregoing or 29 Seller's breach of this clause 30 4. Lid Items Left by Seller. Any personal property, fixtures or other items remaining on the Property when 31 possession is transferred to Buyer shad thereupon become the property of the Buyer, and may be retained or 32 disposed of as Buyer determines However, Seller agrees to clean the interiors of any structures and remove 33 all trash, dstins and rubbish on the Property prior to Buyer taking possession 34 5. id Utlfltles. To the best of Seller's knowledge, Seller represents that the Property is connected to a 35 Cd puolic vrater main, 9 public sewer mein, Q septic tank, ❑ well (specify hrpe) 36 - -a' r. =.Siertg��rf ,r;' _ _ __ __ __ __ __.._..______ - "i _ , ,.;,�_. • >x '.� 4L1''. ' 6 1 �iG..11 l�.i•f i_i ^! Q•r� rL 1 , i rituals BUYER Date ; 1 = SELLER / � Date 1 S — / , 7 - - BUYER Date r SELLER Da'e -1 -;p- EXHIBIT FOR PROPERTY SALE OF PORTION OF Ln GOVT LOT 2 SEC.22,T 24N.,R 1 E,W M KITSAP COUNTY, WA CITY OF BREMERTON cirypR PER y FOR S LE .10 S Fr.. ,�� Phi �.� , , �'�: te r. 0 C}�„r��� �� � � � f ,p � � I pd/ 1116 CHARLESTON BEACH ROAD 1 Looking southwesterly towards property, parallel to SR 304 from east side of Charleston Beach Road Looking northerly from south side of SR 304 towards property Note peeling paint and poor condition of siding Exhibit for City Council April 2, 2010 AGENDA BILL CITY OF BREMERTON CITY COUNCIL SUBJECT: Agreement with Kitsap County Study Session Date January 9, 2013 for Incarceration of City Prisoners COUNCIL MEETING Date January 16, 2013 Department Police Presenter Dave Boynton Phone 360 - 473 -2345 SUMMARY: This Agreement is a one year contract for Incarceration of City Prisoners with the Kitsap County Jail The contract amount is for $630,000 for 9,000 bed days ATTACHMENTS: Kitsap County /City of Bremerton Agreement for Incarceration of City Prisoners FISCAL IMPACTS (Include Budgeted Amount) The 2013 budget for this contract is currently $574,000 Adjustments to this budgeted amount will need to be considered during the 2013 budget amendment process STUDY SESSION AGENDA ® No Discussion ❑ Full Presentation STUDY SESSION ACTION: ❑ Consent Agenda ® General Business ❑ Public Hearing RECOMMENDED MOTION: Move to approve the Kitsap County /City of Bremerton Agreement for Incarceration of City Prisoners with Kitsap County and authorize the Mayor to finalize and execute the agreement with substantially the same terms and conditions as presented COUNCIL ACTION: ❑ Approve ❑ Deny ❑ Table ❑ Continue ❑ No Action Form Updated 11/02/12 KC- KITSAP COUNTY /CITY OF BREMERTON AGREEMENT FOR INCARCERATION OF CITY PRISONERS THIS AGREEMENT is made and entered into by and between KITSAP COUNTY, a municipal corporation, having its principal offices at 614 Division Street, Port Orchard, Washington, 98366 (the County) and the CITY OF BREMERTON (the Contract Agency), having its principal offices at 345 6 th Street, Bremerton, Washington 98337 WHEREAS, the County is authorized by law to operate a fail for misdemeanants and felons and the Contract Agency is authorized by law to operate a fail for misdemeanants and felons, WHEREAS, the Contracting Agency wishes to designate the County fail as a place of confinement for the incarceration of one or more prisoners lawfully committed to the Contract Agency's custody, WHEREAS, the County is amenable to accepting and keeping prisoners received from the Contract Agency in the County's custody at its dad for a rate of compensation mutually agreed to herein, WHEREAS, RCW 39 34 080 and other Washington laws authorize any public agency to contract with another public agency to perform services and activities that each such public agency is authorized by law to perform, and WHEREAS, the County and Contract Agency have considered the anticipated costs of incarceration services and potential revenues to fund such services and determined it is in each of their best interests to enter into this Agreement as authorized and provided for by RCW 39 34 080 and other Washington law AGREEMENT For and in consideration of the conditions, covenants and agreements contained herein, the parties agree as follows 1 PURPOSE It is the purpose of this Agreement to provide for the use by the Contract Agency of the County's fail facilities and services located at the Kitsap County Sheriffs Office, Corrections Division, 614 Division Street, Port Orchard, Washington, 98366 2. DETENTION /INCARCERATION The County shall incarcerate persons received from the Contract Agency until the following occur (a) expiration of the term of confinement as indicated in a Warrant or Order of Commitment or as a result of an Order of Release, or is placed on electronic monitoring or similar program as approved by the court, or (b) upon posting of bail, or Page 1 of 11 (c) receipt of a directive from a law enforcement officer or prosecuting attorney of the Contract Agency to release such person held under probable cause without judicial process, or (d) for those held upon probable cause without judicial process upon the passage of two (2) business days, provided, prior to releasing any person pursuant to this subsection, the County shall attempt to contact the Contract Agency to ascertain the Contract Agency's desire with regard to said person, provided that the Contract Agency shall hold the County harmless as set forth in Section 19 for any claim or action resulting from the detention of an individual wrongly detained at the direction of the Contract Agency 3. CONTRACT REPRESENTATIVES: All written notices, reports and correspondence required or allowed by this Agreement shall be sent to the following County Kitsap County Sheriffs Office Ned Newlin, Chief of Corrections 614 Division Street, MS -33 Port Orchard, WA 98366 Phone 360- 337 -7107 Fax 360- 337 -5780 Contract Agency City of Bremerton Roger Lubovich, City Attorney 3456 th Street, Suite 600 Bremerton, WA 98337 Phone 360473 -5345 Fax 360473 -5161 4. AVAILABILITY OF JAIL FACILITIES Subject to the County's rights with respect to certain prisoners set forth in Sections 9 and 10 herein, the County will accept and keep prisoners at the request of the Contract Agency, unless the County, in its sole discretion, determines that the fail population is at capacity or so near capacity that there is a risk that the reasonable operational capacity limits of the County dad might be reached or exceeded if the County does not begin to refuse or request removal of prisoners However, County agrees to notify the Contract Agency prior to any potential action by the County resulting in a change of intake standards County further agrees to cooperate to the greatest extent possible with the Contract Agency to ensure Contract Agency's ability to incarcerate its prisoners at the county facility In the event the County determines that it cannot accept and keep prisoners at the request of the Contract Agency and the fail Bed Days does not reach the Annual Bed Bank, the annual fee for the Annual Bed Bank shall be pro -rated accordingly to the actual Bed Days utilized for that year Upon acceptance of a prisoner at the request of the Contract Agency, the County shall accept and store the prisoner's personal belongings in an amount not to exceed a day pack or equivalent in volume Any personal belongings exceeding this amount will require County approval prior to acceptance and storage S. DEFINITIONS: Page 2 of 11 "Contract Agency Prisoner" as used in this Agreement shall mean a person arrested by Contract Agency officers and held and confined in the Kitsap County Jail, or otherwise held in detention as provided in this agreement pursuant to a violation of a Contract Agency ordinance or a violation of a state law or ordinance which designates the crime for which the person is held to be a misdemeanor, gross misdemeanor, or felony (see RCW 70 48 400) A prisoner arrested on a warrant issued by another Jurisdiction within Kitsap County or for charges initiated by a non - Contract Agency officer, shall be the responsibility of the originating agency Arrests made by Contract Agency officers on extraditable warrants issued by agencies outside Kitsap County will be considered County prisoners Non - contracting agencies will not be factored when calculating "shared cost" "Bed —Day" shall mean a consecutive 24 -hour period that a Contract Agency Prisoner is in custody at the county Jail, including a prisoner's booking into the county fail "Shared Bed -Day" shall refer to the circumstance when a Contract Agency Prisoner is held in custody at Kitsap County Jail pursuant to this agreement at the same time the prisoner is being held by another Contract Agency and /or the County including periods of time less than 24 hours Non - contract agencies will not be factored when calculating "shared bed -days " "Fractionalized Cost" shall occur in the event of a shared bed -day The bed -day shall be apportioned on an equal basis between the respective Jurisdictions having custody of the prisoner For example, if two different Contract Agencies and the County have custody of a prisoner at the same time during any 24 -hour period, then each respective Jurisdiction would be responsible for a 33 1/3% share of the bed -day Non - contracting agencies will not be factored when calculating "fractionalized cost' "Fractionalized Bed -Day" occurs when a Contract Agency Prisoner is not held in custody for a full bed -day The Contract Agency shall be assessed according to the length of time the prisoner is in custody Assessments shall be determined in % day increments For example, if a Contract Agency Prisoner's stay is from 2000 hrs on January 1 to 0800 hrs on January 2, the total elapsed time would be 12 hours or % of a bed -day A fractionalized bed -day may still be considered a shared bed -day if two or more Jurisdictions have custody of a prisoner at the County facility at the same time 6 COMPENSATION FROM CONTRACT AGENCY (a) Base Rate for Housing In return for the County's housing of a Contract Agency Prisoner, the Contract Agency shall pay the County $630,000 in calendar year 2013 for a total of 9000 Bed Days (also referred to as the Annual Bed Bank) The Annual Bed Bank shall be reduced by one bed -day for each full bed -day, or portion thereof that a prisoner is in the custody of the County, as outlined under subsection (d) "Split Billing ", below Such time period shall be measured from the time said prisoner is transferred to the custody of the County to the time when the Contract Agency resumes custody, or the prisoner is released The daily rate for housing of additional prisoners beyond the Annual Bed Bank shall be $70 00 per full bed -day, or prorated for any portion thereof (b) Determination of Case Status The Kitsap County Prosecuting Attorney shall have the sole authority to determine which felony cases submitted by the Contract Agency shall be charged as felonies The Contract Agency shall not be responsible for the base rate for housing prisoners on any cases charged as a felony by the Prosecutor If the Prosecutor makes the determination that a case is a misdemeanor /gross misdemeanor, such cases will be referred to the Contract Agency for filing in the appropriate court of limited Jurisdiction (c) Billet The County will bill the Contract Agency on or about the 15th day of each month for all amounts due to the County under this Agreement for the services rendered in the prior calendar month Such fees shall be due and payable by the Contract Agency to the County within 30 days after receipt of an itemized invoice (d) Split Billing In the event of a shared bed -day, the daily bed rate will be apportioned as defined in Section 5 Page 3 of I 1 (e) Other Costs The Contract Agency shall also pay such other costs to the County or third parties as set forth herein, including but not limited to any medical costs required by Section 7 7 MEDICAL COSTS AND TREATMENT (a) Services Provided Upon transfer of custody of a Contract Agency Prisoner to the County, the County will provide or arrange for such medical, mental health and dental services as may be necessary to safeguard the prisoner's health while confined, in accordance with the policies and rules of the County jail The County contracts with ConMed Healthcare, Inc for in -house medical and mental health care in the jail The costs of these services are included in determining the above - stated daily per diem rates charged to the Contract Agency (b) Cost Responsibility — Outside Medical Costs Outside Medical costs are any and all expenses incurred for necessary medical care of a Contract Agency Prisoner, excluding 1) the in -house professional medical services provided for under Section 7(a) above and 2) medical costs relating to physical injuries incurred while under the care, custody, and control of the County These costs include, but are not limited to, prescriptions, laboratory tests, medical imaging services, necessary durable medical equipment, and any in- patient or out - patient treatment or referral The Contract Agency shall be responsible for its proportion of all outside medical costs for its prisoners as provided herein For purposes of medical costs and treatment, the Contract Agency prisoners are defined as all arrestees, pre - sentencing misdemeanants and felons and post - sentencing misdemeanants Except for medical costs relating to physical injuries incurred while under the care, custody, and control of the County, the Contract Agency shall also be responsible for its proportion of all costs associated with the delivery of medical, mental health, and dental services provided to a Contract Agency Prisoner that are not available from the health care program within the County jail, and for all emergency medical services, wherever provided These costs shall be paid directly to the County, as directed by the County Prisoners arrested and confined on warrants issued in Kitsap County shall be the responsibility of the originating agency Medical costs and treatment for prisoners arrested by Contract Agency officers on extraditable warrants issued by agencies outside Kitsap County will be the responsibility of Kitsap County (c) Emergency. Non - emergent and Non - hospital Care outside the Jail - Notification For emergency care, the County will notify the Contract Agency within four (4) business hours of transport (Monday through Friday, from 8 a m to 5 p m PST) For non - emergent and non - hospital care outside of the jail, the County will notify the Contract Agency before noon on the next business day In either case, the Contract Agency will be notified by contacting the Contract Agency's designated representative for purposes of this subsection as follows Contact Dave Boynton Email address dave boyntonCaD-ci bremerton wa us Office phone 360 -473 -5465 (d) Pre - Confinement Consents or Refusals If a Contract Agency Prisoner has received or refused any medical, mental health or dental treatment from the Contract Agency before confinement in the County jail, the Contract Agency shall provide to the County all written verification of any authorization of or refusal to authorize care or treatment for such prisoner (e) Return for Medical Services Nothing herein shall preclude the Contract Agency from retaking custody of an ill or injured prisoner by picking the prisoner up for transfer at the County jail, provided, in situations the County deems that a prisoner requires emergency medical care, the County shall have the right to arrange for emergency medical services (at the Contract Agency's expense) notwithstanding a request from the Contract Agency to retake custody of the prisoner Page 4 of 11 (f) Records The County shall keep records of all medical, mental health or dental services it provides to a prisoner as required by law The County agrees to share all information, including insurance information, regarding a Contract Agency inmate, as allowed by law (g) No Waiver of Right to Seek Reimbursement The above paragraphs relating to medical costs are intended solely to define the obligations between the parties to this Agreement Nothing contained within the provisions of this Agreement shall be construed to waive the rights of either party to seek reimbursement for costs from the Washington State Department of Social and Health Services, from the prisoner, or any other responsible third party 8 TRANSPORTATION OF CONTRACT AGENCY PRISONERS. (a) The Contract Agency shall provide or arrange for transportation of its prisoners to and from the County jail except when the transportation is determined by County staff to be necessary to secure emergency medical evaluation or treatment, or when transportation is required to support the orderly operation of the County jail (b) Transport with Costs The Contract Agency shall be responsible for transportation of all its prisoners to the County jail for initial booking When the Contract Agency has its own Court, then the Contract Agency shall be responsible for transportation of all its prisoners from the jail facility for all appearances in the Court In the event the Contract Agency cannot provide transportation noted herein and the County performs the transportation on behalf of the Contract Agency , the Contract Agency shall reimburse the County for transportation performed by the County at the Standard Mileage Rates as set by the Internal Revenue Service and $40 00 per hour for the cost of personnel (c) Contract Agency Transport The Contract Agency shall provide reasonable notice to the County prior to transporting a prisoner from the County Jail Except as limited by Section 8(a), the Contract Agency shall be responsible for retaking custody of a prisoner at the County Jail and for transporting the prisoner 9 TRANSFER OF CUSTODY (a) Commencement of Custody by County Custody of a Contract Agency Prisoner shall be deemed transferred to the County when officers from the Kitsap County Sheriffs Office take physical control of the prisoner The County will not take such control of a prisoner until the Contract Agency has delivered copies of all records in its possession pertaining to the prisoner's incarceration by the Contract Agency or its agent, including a copy or summary of the prisoner's medical records if held by the Contracting Agency or its agent If the County requests additional information regarding a particular prisoner, then the parties shall mutually cooperate to obtain such information Absent compliance with existing policies, the County shall not be required to take custody of or assume control of or responsibility for any property of the prisoner except as set forth in Section 4 above The Contract Agency's officers, when transporting a prisoner to the Jail shall be responsible for ensuring that all paperwork is in order and that all property allowed to be transported with the prisoner is properly packaged The County will not take physical control and assume custody of a prisoner to be confined unless all paperwork and property of the prisoner are in order Upon presentation of an individual for confinement, or as soon thereafter as is practicable, the Contract Agency shall advise the staff of the County Jail of the duration or other terms of confinement of a given individual The Contract Agency shall provide a copy of any Warrant of Arrest or Order of Commitment The Contract Agency shall be solely responsible for determining that the individuals presented for detention are detainable and shall certify by the act of presenting an adult person for detention, that said person is legally detainable and County shall bear no responsibility to ensure that said individuals are legally detainable The Contract Agency shall hold the County harmless as set forth in Section 19 for any claim or action resulting from the detention of an individual wrongly presented by the Contract Agency for detention When custody of a Contract Agency Prisoner is transferred to the County, the Contract Agency Prisoner shall be subject to all applicable rules, regulation and standards governing operation of the County Jail, including any emergency security rules imposed by the jail administrator or Sheriff Any Contract Agency police officer delivering a prisoner to the County jail shall comply with reasonable rules and regulations of the County jail Page 5 of 11 (b) Further Transfer of Custody Except as otherwise allowed by Section 12 of this Agreement, the County will not transfer custody of any prisoner confined pursuant to this Agreement to any agency other than to the Contract Agency without the written authorization from a court of competent jurisdiction (c) Responsibilities upon Assumption of Custody Upon transfer of custody to the County, it shall be the County's responsibility to confine the prisoner, to supervise, discipline and control said prisoner, and to administer the prisoner's sentence pursuant to the order of the committing court in the State of Washington During such confinement, the County shall provide and furnish or arrange for all necessary medical and hospital services and supplies in accordance with Section 7 of this Agreement (d) Resumption of Custody by Contracting Agency The Contract Agency shall be deemed to have resumed custody of a prisoner upon either the County's presentation of such prisoner to the Contracting Agency, or upon the Contract Agency's officers taking physical control of the prisoner 10 RIGHT TO REFUSE PRISONER The County shall have the right to refuse to accept any Contract Agency Prisoner who appears in need of medical, mental health or dental attention, until the Contract Agency has provided medical, mental health or dental treatment to the prisoner to the satisfaction of the County 11 RELEASE, HOLDS AND COURT APPEARANCES: In order to appear before a court of the Contract Agency using video court, there must be an active hold in place that is continuously maintained from the time the charge is initially added to the prisoner's booking If the court of the Contract Agency has no hold, or releases its hold on a charge for a prisoner who is still incarcerated at the dad, the dad will no longer allow video court appearances to occur between the prisoner and the court for that charge If a Contract Agency court orders that the prisoner appear without a fail hold, it is the responsibility of the Contract Agency to facilitate movement of the inmate for court appearances outside of the dad Notwithstanding the above, an appearance before a court of the Contract Agency using video court may be held when there is no active hold in place under the following circumstances (a) when morning video arraignments /hearings are continued to an agreed upon date by the parties involved due to time restrictions for the hearings imposed by the dad, (b) when an inmate will miss a mandatory municipal court hearing due to his or her incarceration on a non - related matter, or (c) at any other time and for any other reason with the prior approval of the County 12 REMOVAL FROM JAIL - OTHER GROUNDS. Contract Agency Prisoners may be removed from the County dad for the following reason(s) (a) Request by Contract Agency Upon written request by a supervisory member of the Contract Agency for transfer of custody back to the Contract Agency (b) Court Order By order of a court having jurisdiction over the Contract Agency Prisoner In such case, transport, if any, will be pursuant to Section 8 above (c) Treatment Outside of Jail For medical, mental health, dental treatment or any other care not available within the County dad (d) Catastrophe In the event of any catastrophic condition occurring that poses eminent danger to the safety of the prisoner(s) or personnel of the County, the decision to remove prisoners will be at the sole discretion of the County In such cases, the County will inform the Contract Agency, at the earliest practicable time, of the Page 6 of 11 whereabouts of the prisoner(s) so removed and shall exercise all reasonable care for the safekeeping and custody of such prisoner(s) 13 TRANSFER OF PRISONERS UPON TERMINATION /EXPIRATION OF AGREEMENT- (a) Termination by County In the event this Agreement expires or is terminated by a notice of termination from the County in accordance with Section 23 below, it shall be the County's obligation to transport the Contract Agency's Prisoners to the Contract Agency, at no expense to the Contract Agency (b) Termination by Contract Agency In the event this Agreement expires or is terminated by a notice of termination from the Contract Agency in accordance with Section 23 below, it shall be the Contract Agency's obligation to transport the Contract Agency's Prisoners at its own expense, on or before the effective date of such termination 14 PRISONER RIGHTS, ACCOUNTS AND PROGRAMS. (a) Early Release Credit and Discipline The Contract Agency agrees that its policies if any, for early release credits shall allow no more credit for its prisoners than is allowed by the County under its policies Contract Agency Prisoners confined under this Agreement shall earn early release credits under the policies and rules prescribed by the County and state law for all prisoners at the County fail With respect to Contract Agency Prisoners, the County shall maintain and manage disciplinary issues and will administer sanctions, including removal of earned early release credit, pursuant to facility rules No discipline prohibited by federal or state law will be permitted The disciplinary policies and rules of the County fail will apply equally to Contract Agency Prisoner confined pursuant to this Agreement as applied to other prisoners confined to the Jail (b) Prisoner Accounts The County shall establish and maintain an account for each Contract Agency Prisoner and shall credit to such account all money received from a prisoner or from the Contract Agency on behalf of a prisoner The County shall make disbursements from such accounts by debiting such accounts in accurate amounts for items purchased by the prisoner for personal needs (c) Programs The County shall provide Contract Agency Prisoners with access to all educational, recreational and social service programs offered at the County fail under the terms and conditions applicable to all other prisoners at the fail (d) Serve Time Outside of Facility Contract Agency Prisoners, if deemed eligible, will be allowed to leave the fail for participation in correctional work crews, or any other program in which other prisoners sometimes are allowed to leave the physical confines of the fail as part of serving their sentence 15. ACCESS TO FACILITY AND PRISONERS. (a) Access to Facility The Contract Agency shall have the right to inspect, at mutually agreeable times, the County dad in order to confirm such dad maintains standards acceptable to the Contract Agency and that its prisoners are treated appropriately The County agrees to manage, maintain and operate its facilities consistent with all applicable federal, state and local laws (b) Access to Prisoners Contract Agency personnel shall have the right to interview prisoners from the Contract Agency at any reasonable time within the fail Contract Agency officers shall be afforded equal priority for use of jail interview rooms 16 ESCAPES AND DEATHS: (a) Escapes In the event of an escape by a Contract Agency Prisoner from the County fail, the Contract Agency will be notified as soon as practical The County will have the primary authority to direct the investigation and to pursue the prisoner within its jurisdiction Any costs related to the investigation and pursuit within its jurisdiction will be the responsibility of the County The County will not be required to pursue and return the Contract Agency's escaped prisoner from outside of the County Page 7 of 11 (b) Deaths (1) In the event of a death of a Contract Agency Prisoner in the County dad, the Contract Agency shall be promptly notified in writing Kitsap County Sheriffs Office will investigate the circumstances The Contract Agency may loin in the investigation and receive copies of all records and documents from the investigation (2) The County shall, subject to the authority of the Kitsap County Coroner, follow the written instructions of the Contract Agency regarding the disposition of the body Such written instructions shall be provided within three working days of receipt by the Contract Agency of notice of such death All expenses related to necessary preparation of the body and transport charges shall be the responsibility of the Contract Agency With written consent from the Contract Agency, the County may arrange burial and all matters related or incidental thereto, and the Contract Agency shall be responsible for all such expenses This paragraph defines the obligations between the parties to this Agreement and shall not affect the liability of any relative or other person for the disposition of the deceased or any expenses connected therewith Notwithstanding the above, all expenses related to the death of a Contract Agency Prisoner in the County fail resulting from physical injuries incurred while under the care, custody and control of the County shall be the responsibility of the County 17. POSTING OF BAIL The County shall serve as agent for the Contract Agency in receipt of any bad bonds or any monies posted for or by a Contract Agency's prisoner with the County, and any such bonds or monies will be promptly forwarded to the proper agency 18 RECORD KEEPING. The County agrees to maintain a system of record keeping relative to the booking and confinement of each Contract Agency Prisoner consistent with the record keeping by the County for all other prisoners The County shall make copies of said records available without cost to the Contract Agency upon its request 19. INDEMNIFICATION, HOLD HARMLESS AND INSURANCE (a) The Contract Agency agrees to defend, indemnify and hold harmless the County, its appointed and elected officials, employees and agents from and against all liability, loss, cost, damage and expense, including costs and attorneys fees in defense thereof because of actions, claims or lawsuits alleging damages sustained by any person or property including death at any time resulting thereof, arising from or alleged to have arisen from (1) the Contract Agency's performance under this Agreement or as a consequence of any wrongful or negligent acts or omission of the Contract Agency, its appointed and elected officials, employees and agents, (2) wrongful detention of a Contract Agency Prisoner as a result of the Contract Agency's actions, (3) failure or refusal to timely release a Contract Agency Prisoner as a result of the Contract Agency's actions To the extent the claim, damages, losses and expenses are caused by intentional acts of or by the concurrent negligence of the County, its officers, agents, or employees, the Contract Agency's Page 8 of 11 indemnification obligation hereunder shall be limited to the Contact Agency's proportionate share of liability as agreed to by the parties to this Agreement or determined by a court of competent jurisdiction (b) The County agrees to defend, indemnify and hold harmless the Contract Agency, its appointed and elected officials, employees and agents from and against all liability, loss, cost, damage and expense including costs and attorneys fees in defense thereof because of actions, claims or lawsuits alleging damages sustained by any person or property including death at any time resulting thereof, arising from, or alleged to have arisen from (1) the County's performance under this Agreement or as a consequence of any wrongful or negligent acts or omission of the County, its appointed and elected officials, employees and agents, (2) wrongful detention of a Contract Agency Prisoner as a result of the County's actions, (3) The County's failure or refusal to timely release a Contract Agency Prisoner To the extent the claim, damages, losses and expenses are caused by intentional acts of or by the concurrent negligence of the Contract Agency, its officers, agents, or employees, the County's indemnification obligation hereunder shall be limited to the County's proportionate share of liability as agreed to by the parties to this Agreement or determined by a court of competent jurisdiction (c) Insurance Requirement The County and the Contract Agency shall maintain and provide evidence of liability coverage The terms of Section 19, INDEMNIFICATION, HOLD HARMLESS AND INSURANCE shall survive the termination or expiration of this Agreement 20. NON - DISCRIMINATION POLICY. The County and the Contract Agency agree not to discriminate in the performance of this Agreement because of race, color, national origin, sex, sexual orientation, age, religion, creed, marital status, disabled or Vietnam era veteran status, or the presence of any physical, mental, or sensory handicap 21. ADMINISTRATION /DISPOSAL OF PROPERTY - This Agreement is executed in accordance with the authority of Chapter 39 34 RCW, the Interlocal Cooperation Act Pursuant to the provisions of RCW 39 34 030, the Kitsap County Sheriff shall be responsible for administering the confinement of prisoners hereunder No real or personal property will be jointly acquired by the parties under this Agreement All property owned by each of the parties shall remain its sole property to hold and dispose of in its sole discretion 22 DURATION. The initial term of this Agreement shall be effective from January 1, 2013 through December 31, 2013 unless another date is substituted pursuant to Section 26, or the agreement is terminated earlier pursuant to Section 23 Nothing in this Agreement shall be construed to make it necessary for the Contracting Agency to continuously house prisoners with the County 23. TERMINATION. This Agreement may be terminated for the convenience of either party prior to expiration by written notice from such party delivered by regular mad to the designated representative at the address set forth herein Termination by said notice shall become effective one hundred twenty (120) days after receipt of such notice For the information of the other party, but not as a condition affecting the effectiveness of the notice, the Page 9 of 11 notice shall set forth the reason the party has decided to terminate the Agreement and the specific plan for accommodating Contracting Agency Prisoners to be affected, if any 24 WAIVER OF RIGHTS- No waiver of any right under this Agreement shall be effective unless made in writing by an authorized representative of the party to be bound thereby Failure to insist upon full performance on any occasion shall not constitute consent to or waiver of any continuation of nonperformance or any later nonperformance, nor does payment of a billing or continued performance, after notice of a deficiency in performance, constitutes acquiescence thereto 25. WAIVER OF ARBITRATION RIGHTS. Both parties acknowledge and agree that they are familiar with the provisions of RCW 39 34 180(3), as now in effect, and that of their own free will they hereby expressly waive any and all rights under RCW 39 34 180(3), as now in effect or as hereinafter amended, to arbitrate the level of compensation for incarceration services charged under this Agreement, or any renewal thereof, that either party may possess The parties further agree that such level of compensation and all other issues related to the purpose of this Agreement will only be as agreed to herein or as otherwise agreed to in a writing executed by the parties 26. MODIFICATION- This Agreement may only be modified by written instrument signed by both Parties 27. GOVERNING LAW/VENUE The parties hereto agree that, except where expressly otherwise provided, the laws and administrative rules and regulations of the State of Washington shall govern in any matter relating to this Agreement and to a prisoner's confinement under this Agreement This Agreement shall be construed and interpreted in accordance with the laws of the State of Washington and in the event of dispute, the venue for any action brought hereunder shall be in Kitsap County Superior Court 28. MISCELLANEOUS In providing these services to the Contract Agency, the County is an independent contractor and neither its officers, agents, nor employees are employees of the Contract Agency for any purpose including responsibility for any federal or state tax, industrial insurance or Social Security liability No provision of services under this Agreement shall give rise to any claim of career service or civil service right, which may accrue to an employee of the Contract Agency under any applicable law, rule, or regulation 29 SEVERABILITY: If any provision of this contract shall be held invalid, the remainder of this contract shall not be affected thereby if such remainder would then continue to serve the purposes and objectives of both parties DATED this day of 201_ DATED this day of 201_ CITY OF BREMERTON KITSAP COUNTY SHERIFF'S OFFICE Patty Lent Ned Newlin Mayor Chief of Corrections Page 10 of I I BOARD OF COUNTY COMMISSIONERS KITSAP COUNTY, WASHINGTON JOSH BROWN, Chair CHARLOTTE GARRIDO, Commissioner ROBERT GELDER, Commissioner ATTEST Dana Daniels, Clerk of the Board Page 11 of 11 a 9, �0 hL 2008 2008 Jail spending Cost Bed Days KCSO rate of $68 a day $ 756,732.86 11128 Medical KCSO $ 12,490.82 Forks $ 75,207.00 1672 Medical Forks $ 732.66 EHM $ 62,554.00 6034 Total $ 907, 717.34 18834.00 Total of 18834.00 x $68 a day = $1,280,712.00 2009 2009 jail spending Cost Bed Days KCSO rate of $80 a day $ 533,340.60 6666.75 Medical $ 13,672.58 Forks $ 116 2583 Medical $ 495.00 EHM $ 88,207.00 8101 Totals $ 751,953.18 17,350.75 17,380.75 bed days x $80 = $-1,388,060.00 2010 2010 Jail spending Cost Bed Days KCSO 7450 beds at flat rate $ 520,000.00 6924 Medical $ 18 Forks $ 17,300.00 385 Medical $ 46.15 EHM $ 85 8163 Totals $ 640,997.91 15472.00 15472 bed days x $69 a days = $1,067.568.00 2011 Cost Bed Days KCSO 8000 beds at flat rate $525,200.00 7997.90 Medical $ 41,693.46 Forks $ 38,205.00 849 EHM $ 115,250.58 9914 Totals $ 720,349.04 18760.90 Orginal budgeted at $702,000.00 Budgeted adjusted to unk medical bills. 18760.90 bed days x $69.50 = $1,202,882.55 2012 Cost Bed Days KCSO 8000 beds at flat rate $ 573,276.00 8000 over by 371.73 at $71.66 a day $ 26,642.17 371.73 Medical $ 58,197.38 Forks $ 45,517.50 1025 Medical $ 9,898.98 EH M $ 92,264.00 7616 EHM pre trial outside agencies $ - 3916 Total $ 805,796.03 20928.73 Orginal budget $751,000.00 Adjusted budget $857,000.00 (mostly unk med) 20928.73 bed days X $71.66 a day = $1,4990752.79 JADL DAYS CGS72 12 KCSO 8371.73 Forks 1025 EHM 7616 ❑ KCSO ❑ Forks ❑ EHM Outside EHM ❑ EHM outside agencies 2062 ❑ Pre -trial EHM for DUI ❑ CSW Pre -trail EHM for DUI outside 1854 CSW 667 Total of 21,595.73 x $71.66 l..647,550.01 r u y WHAT TYPE OF CRIMES DO OUR DEFENDANTS SPEND THE MOST TIME IN JAIL FOR: The top 4 crimes, defendants of the Bremerton Municipal Court, spend the most time in jail are: 1. DUI 2. Assault 4 DV 3. Violation of no contact orders 4. DWLS 1 These four crimes make up 80% of our jail bed days. 2013 Budgeted for 2013 KCSO 9000 bed days $630,000.00 EHM 8000 bed days $ 93,000.00 Medical (best guess) $ 56,000.00 Forks 222 bed days $ 10 Total 17,222 bed days $789 t r AGENDA BILL CITY OF BREMERTON CITY COUNCIL SUBJECT: RESOLUTION NO 3186 Study Session Date 01/09/2013 TO SUPPORT KITSAP COUNTY'S COUNCIL MEETING Date 01/16/2013 ENACTMENT OF A ONE -TENTH OF ONE Department MUNICIPAL COURT PERCENT SALES AND USE TAX IN Presenter JAMES DOCTER KITSAP COUNTY Phone 360 473 -5242 SUMMARY: : In 2005 Washington State approved legislation allowing counties to raise their local sales tax by one -tenth of one percent to augment state funding for mental health and chemical dependency services, housing for mental health and /or addictions, and therapeutic courts This equates to one penny for every $10 of purchases or $10 for every $10,000 of purchases As social services are cut, these programs are being affected adversely, our citizens are not being served /treated properly, and public safety is jeopardized ATTACHMENTS: Kitsap County Mental Illness and Drug Dependency Action Plan, Resolution to Enact One -Tenth of One Percent Sales Tax and Kitsap County Mental Health Proposal (Legislative Authority) FISCAL IMPACTS (Include Budgeted Amount) An increase in any purchases made by the City that would have sales tax included STUDY SESSION AGENDA ❑ No Discussion ® Full Presentation STUDY SESSION ACTION: ❑ Consent Agenda ® General Business ❑ Public Hearing RECOMMENDED MOTION: Approve Resolution No 3186 supporting Kitsap County enacting a one -tenth of one percent countywide sales and use tax for the purpose of providing funds for provision of mental health treatment and /or chemical dependency treatment programs and services, and for the operation or delivery of therapeutic court programs and services COUNCIL ACTION: ❑ Approve ❑ Deny ❑ Table ❑ Continue ❑ No Action Form Updated 11/02/12 RESOLUTION NO. 3186 A RESOLUTION of the City Council of the City of Bremerton, Washington, to encourage the Kitsap County Board of Commissioners to enact a one -tenth of one percent sales and use tax in Kitsap County for the purpose of providing funds for provision of mental health treatment and/or chemical dependency treatment programs and services, and for the operation or delivery of therapeutic court programs and services WHEREAS, the mental health and chemical dependency treatment programs and services have been shown effective in helping people recover from behavioral health illness, thereby reducing human and financial costs to society, and increasing the productivity of individuals as members of our community, and WHEREAS, such services are known to prevent and reduce costly and unnecessary involvement with criminal justice and court system, emergency medical care, shelters, and crisis services, and promote recovery for persons with disabling mental illness and chemical dependency by implementing a full continuum of treatment, including outpatient treatment, housing, and case management services, and WHEREAS, the public mental health system, funded by state and federal dollars, does not have adequate resources to provide outpatient treatment to non- Medicaid eligible individuals, and WHEREAS, current and forecasted funding does not provide the needed funds to establish and/or maintain therapeutic court programs shown to reduce crime, recidivism and support recovery, and WHEREAS, decreased availability of less costly behavioral health out- patient services rapidly results in use of emergent and far more expensive crisis services, where these increasingly scarce dollars must be used to treat people in costly inpatient units and hospitals, an unnecessary toll in both human suffering and financial burden, and WHEREAS, the Washington State Legislature adopted in 2005, Chapter 504 (E2SSB 5763) authorizing counties to fix and impose a sales and use tax in the amount of one -tenth of one percent (1 /10%) to provide new or expanded mental health or chemical dependency treatment programs and services that include but are not limited to treatment services, case management, and housing that are a component of a coordinated chemical dependency or mental health treatment program or services, and to provide for the operation of new or expanded therapeutic court programs, and WHEREAS, 20 of 37 counties in Washington State have successfully enacted E2SSB 5763, in order to promote recovery for persons with disabling mental illness and chemical dependency, but Kitsap County has not adopted such a tax, and 1 Sales and Use Tax for Mental Health /Chemical Dependency Programs WHEREAS, the City Council is gravely concerned the loss of local, state, and federal funds to our community has resulted in a diminished capacity to provide necessary behavioral health services for children, families, adults and older adults, and that the uncertain forecast for additional funding losses will result in an even greater lack of access to behavioral health care, compromising the health and safety of Individuals and the community, NOW THEREFORE, THE CITY COUNCIL OF THE CITY OF BREMERTON, WASHINGTON, DOES HEREBY RESOLVE AS FOLLOWS SECTION 1. The City Council stands firmly behind enactment of a sales and use tax increase in the amount of one -tenth of one percent (1 /10 %) to provide new or expanded mental health or chemical dependency treatment programs and services and recommends that Kitsap County adopt this tax to help ensure mental health and chemical dependency treatment programs and services, with specific attention to provision of services through the county jail, juvenile justice system, children's services and schools, county courts, inpatient and outpatient facilities, shelters and housing services for eligible, high need individuals SECTION 2. Severabih!y If anyone or more sections, subsections, or sentences of this Resolution are held to be unconstitutional or invalid, such decision shall not affect the validity of the remaining portion of this Resolution and the same shall remain in full force and effect SECTION 3. Effective Date This Resolution shall take effect and be in force immediately upon its passage PASSED by the City Council of the City of Bremerton, Washington this day of , 2013 GREG WHEELER, Council President APPROVED AS TO FORM ATTEST ROGER A LUBOVICH, City Attorney SHANNON L CORIN, City Clerk R \ i. ega l\Legal\Resolut►ons\Municipal Court\Support of Krtsap County Sales and Use Tax Increase doc 2 Sales and Use Tax for Mental Health /Chemical Dependency Programs Kitsap County Mental Illness and Drug Dependency Action Plan — Funded by the 1 /10 of 1% Tax Initiative Background. In 2005 Washington State approved legislation allowing counties to raise their local sales tax by one -tenth of one percent to augment state funding of mental health and chemical dependency services, housing for mental health and /or addictions, and therapeutic courts - one penny for every $10 of purchases or $10 for every $10,000 of purchases To date, 19 counties have adopted this sales tax, Including the surrounding Mason, Jefferson, Clallam, and King counties 1 Following several years of inadequate state funding for local mental health (MH) and substance abuse (SA) programs, access to treatment has become limited for many residents in need of services Without access to care, Individuals often become more ill, are arrested or wiled, seen at the emergency room or hospitalized — a needless and costly use of scarce resources, and harmful to the Individual and to the public's well -being In Kitsap County passage of this local sales tax would result In approximately $3 million annually for mental health treatment services, chemical dependency treatment services, therapeutic courts, and related housing What about current Kitsap County service levels? Community needs assessments conducted in 2005 and again In 2009 mapped major components of the current mental health and drug dependency system, Including systems that become de facto systems of care — the Jail and the emergency departments Most recently, In 2011, the Kitsap Community Health Priorities (KCHP) plan was completed and noted as one of five priorities "Ensure access to affordable medical care, behavioral healthcare (MH and CD) and dental care for all residents "Z These three assessments all note service gaps that cause the community safety net as a whole to falter, fall to prevent and /or Intervene in the lives of Individuals and their families with serious Illnesses, and have unfortunate Impacts on Individuals, services and costs within each of these community systems of care What would this funding accomplish? 1 A reduction in the number of mentally III and /or chemically dependent people using costly services at the Jail, emergency rooms and hospitals 2 A reduction In the number of people who recycle through the Jail, returning repeatedly as result of their criminal conduct which may be related to mental illness and /or chemical dependency 3 A reduction in the incidence and severity of chemical dependency and mental and emotional disorder In youths and adults 4 Diversion to treatment for mentally ill and /or chemically dependent youth and adults from Initial or further law enforcement and Justice system Involvement 5 Expand access of services for mentally Ill and /or chemically dependent youth and adults 6 Increase reliable housing options for mentally ill and /or chemically dependent youth and adults Ensuring services and funding accountability 1 Develop a public input process and a voluntary Citizen Advisory Committee oversight 2 Determine a long term plan for programs and services outcomes and allocation of public funds 3 Use of a Request for Proposals process consistent with the long term plan 4 Routinely evaluate based on performance measures and progress reports 1 Adoption if authorized under the Omnibus Mental Health and Substance Abuse Act of 2005, with additional law passed into effect in 2009 (SSB 5433) allowing funds to be used to supplant existing funding on a limited and declining percentage through 2014 This action provides counties the ability to sustain a level of funding and services during the current economic recession Programs and services currently being provided in Kitsap County are facing significant financial challenges in their ability to maintain vital services at their current level, or to increase needed services Z The year -long Kitsap Community Health Priorities (KCHP) process was conducted by the Kitsap Public Health District during 2011, and included four assessments and input from community representatives Community partners provided leadership and guidance, and working committees continue to further the goals through development of specific action plans PRIORITY RECOMMENDATIONS FOR NEW OR EXPANDED SERVICES Community -Based Care Strategies These strategies are primarily designed to increase access to behavioral health services for uninsured and underinsured children, adults, and older adults 1a Mental Health Treatment Services for persons who qualify clinically for standard $ 420,000 services, but who do not meet stringent financial Medicaid qualifications and who might otherwise "fail through the gap " 1b Chemical Dependency Treatment to restore inpatient treatment, detoxification and $ 348,000 stabilization and family services capacity, and provide outpatient substance abuse treatment services for youth and adults where no other funds are available 1c Behavioral Health Screening and Treatment in Primary Care facilitates screening for $1,494,000 depression, anxiety and substance use, and brief interventions and /or referrals for youth, adults and older adults The primary care setting is where most people first turn for help, and offers opportunity for early intervention and treatment 1d Emergency Room Substance Abuse Intervention (S -BIRT) uses a model tool for $ 132,000 screening, brief intervention, and referral to treatment administered in the ER setting and demonstrated successful in early interventions of problem substance use Outreach, Engagement and Case Management for persons who are homeless, $ 280,000 1e mentally ill, and chronically chemically dependent, for the purpose of engaging clients in needed MH and SA treatment, and housing placement Crisis Intervention Training for First Responders throughout Kitsap County to employ $ 250,000 if strategies for successfully engaging persons who are homeless, mental ill, and or chronically chemically dependent in a community setting Strategies to Help Children and Youth 2a Nurse Family Partnership Home Visiting and Newborn Home Visiting Programs are $ 348,000 shown effective in preventing and reducing incidence of child abuse and neglect, and improve school outcomes 2b Youth Jail Diversion to maintain individualized Treatment Court and Juvenile Drug $ 195,000 Court, expand assessment and behavioral health treatment at the Detention Center 2c Youth Suicide Prevention to implement evidence based programs that screen and $ 125,000 refer children, youth and their families for early intervention and prevention of suicide Jail and Hospital Diversion Strategies 3a Diversion & Adult Jail Behavioral Health Services maintain mental health services, $ 500,000 create substance abuse treatment capacity, ensure linkage at discharge to outpatient community mental health and substance use treatment 3b Jail Diversion and Adult Courts sustain Adult Felony Drug Court and Family $ 450,000 Dependency Drug Court, initiate Veteran's Court, Sheriff Officer for Home Visits and Compliance Checks Capital Projects 4a Supportive Housing to develop supportive housing units for persons with severe, $6,000,000 persistent mental illness and /or chemical dependency 4b Gero - psychiatric Needs Assessment and Feasibility Study to determine how to meet $ 150,000 needs of increasing numbers of aging population experiencing behavioral health needs, including consideration of gero - psychiatric facility Evaluation of Services Rendered: Recommend funding for purchase of Kitsap Public Health District evaluation services to allow continuous quality improvements and adjustment of strategies efficacy in meeting intended outcomes Reports would be reviewed by the voluntary Citizen Advisory Committee Final evaluations would be presented to the County Commissioners at a public meeting on an annual basis RCW 62.14.460 Sales and use tax for chemical dependency or mental health treatment services or therapeutic courts. (1)(a) A county legislative authority may authorize, fix, and impose a sales and use tax in accordance with the terms of this chapter (b) If a county with a population over eight hundred thousand has not imposed the tax authorized under this subsection by January 1, 2011, any city with a population over thirty thousand located in that county may authorize, fix, and impose the sales and use tax in accordance with the terms of this chapter The county must provide a credit against its tax for the full amount of tax imposed under this subsection (1)(b) by any city located in that county if the county imposes the tax after January 1, 2011 (2) The tax authorized in this section is in addition to any other taxes authorized by law and must be collected from those persons who are taxable by the state under chapters 82 08 and 82 12 RCW upon the occurrence of any taxable event within the county for a county's tax and within a city for a city's tax The rate of tax equals one -tenth of one percent of the selling price in the case of a sales tax, or value of the article used, in the case of a use tax (3) Moneys collected under this section must be used solely for the purpose of providing for the operation or delivery of chemical dependency or mental health treatment programs and services a for the operation or de of therapeutic court programs and services For the purposes of this section, "programs and services" includes, but is not limited to, treatment services, case management, and housing that area component of a coordinated chemical depen or mental health treatment program or service (4) All moneys collected under this section must be _used so for the_ purpose of provi n or expanded programs and services as provided in this section, except as (a),For a county with - a population larger than twenty -five thousand or a city with a population over thirty thousand, a portion of moneys collected under this section may be used to supplant existing funding for these purposes as follows Up to fifty percent may - b - 6 used to supplant existing funding in calendar years 2011 -2012, up to forty percent may be used to supplant existing funding in calendar year 2013 up to thirty percent may be used to supplant existing funding in calendar year 2014 up to twenty percent may be used to supplant existing funding in calendar year 2015, and up to ten percent may be used to supplant existing funding in calendar year 2016 (b) For a county with a population of less than twenty-five thousand, a portion of moneys collected under this section may be used to supplant existing funding for these purposes as follows Up to eighty percent may be used to supplant existing funding in calendar years 2011 -2012, up to sixty percent may be used to supplant existing funding in calendar year 2013, up to forty percent may be used to supplant existing funding in calendar year 2014, up to twenty percent may be used to supplant existing funding in calendar year 2015, and up to ten percent may be used to supplant existing funding in calendar year 2016, and (c Y Notwithstanding (a) and (b) of this subsecti m oneys collected _u _this _ may be used to support the cost of the judicial o ffice r and support staff of a therapeutic court ' (5) Nothing in this section may be interpreted to prohibit the use of moneys collected under this section for the replacement of lapsed federal funding previously provided for the operation or delivery of services and programs as provided in this section [2011 c 347 § 1, 2010 c 127 § 2, 2009 c 551 § 2, 2008 c 157 § 2, 2005 c 504 § 804 1 Notes. Findings -- Intent — 2008 c 157 "The legislature finds it necessary to clarify the original intent regarding eligible expenditures of the sales and use tax provided in RCW 82 14 460 The legislature intended that upon the original effective date of RCW 82 14 460 the moneys collected under RCW 82 14 460 would be permitted to be used for the purposes as provided in RCW 82 14 460 as clarified by section 2, chapter 157, Laws of 2008 " [2008 c 157 §1] Findings -- Intent — Severabrlrty — Application — Construction -- Captions, part headings, subheadings not law — Adoption of rules -- Effective dates — 2005 c 504 See notes following RCW 71 05 027 Alphabetization -- Correction of references -- 2005 c 504 See note following RCW 7105 020 Lori Smith From James Docter Sent Wednesday, December 26, 2012 3 57 PM To City Council Cc Dawn Nelson, Joe Roszak (Doer @kmhs org) Subject Proposed Resolution to Support County -Wide Action Plan Attachments Kitsap County Mental Illness and Drug Dependency Action Plan 2012 doc, Resolution to Enact One -Tenth of One Percent Sales Tax doc, Kitsap County Mental Health Proposal Legislative Authority docx (Please distribute this email and attachments to the Public Safety Committee Council Members Wofford, Daugs, Younger and McDonald Thank you) Dear Public Safety Committee Council Members, I am part of a County wide committee whose mission is to convince the Board of County Commissioners (the Board) to adopt a 1 /10 of 1% sales and use tax pursuant to RCW 82 14 460 (attached above as "Legislative Authority ") This committee consists of Mental Health Professionals, Judges and Court Administrators, the League of Women Voters, the County Health District, Harrison Hospital, Law Enforcement, and many others Our committee is seeking to have as many Kitsap County agencies and organizations as possible adopt a Resolution (also attached) in support of the Sales tax initiative, so the Board will feel more inclined to adopt the Sales tax Specifically, I am asking your Public Safety Committee recommend to the City Council they adopt this Resolution Our committee will be meeting with the Board on January 28 to give our presentation and submit the various Resolutions, so I am trying to get this proposed Resolution before the City council no later than your January 16 meeting Since I will be out of the country for the next Public Safety meeting on January 9 Dawn Nelson will be bringing this request before you on my behalf, and I would be present for the meeting on the 16 I can also have Joe Roszak, the Executive Director at Kitsap Mental Health present at either meeting to answer any specific questions about the initiative that I may not be able to answer I am aware this is an election year for every council member I am also aware there are many voters in our community who are against any new tax increases However, I agreed to serve on the committee because I am fully committed and support the proposed uses of this funding, and earnestly believe the funding is vital for the public health and safety of our community I hope that your committee will agree this proposal is meritorious and worthy of your support, and that you will help its passage through the proposed Resolution I am confident Mayor Lent, Chiefs Rogers and Duke and their entire divisions will be supporting this initiative, although I have not spoken with them directly about it The support network for the mentally ill and chemically dependent /addicted has suffered severe budget cuts in the last few years As a result we see more who are in need of services and housing go without, and they wind up on our streets, in our clinics, hospitals and our courts, and eventually in our Jails or our cemeteries When the criminal Justice system sends them to treatment, programs that were once available are there no longer, or can accommodate far fewer in need Hence, as a community we spend substantial resources after they are arrested or hospitalized, rather than providing them the help and services as they need as preventative and rehabilitative measures I feel very strongly this initiative will greatly benefit our community, and deserves the support of the City of Bremerton Frankly, despite the outcry over taxes we have heard lately, I believe the public recognizes how critical for all of us it is to adequately provide the services for the mentally ill and chemically addicted I hope you will give it your full support Also, please let me know if I can answer any questions I'm sure you will hear much more about this initiative publicly in the next 30 days Thanks for all you do for the citizens of Bremerton, and Happy New Year to all of you 2013 is sure to be another wild ride O 1 Community Behavioral Health System of Care Maintaining and Enhancing Strategies for Prevention and Intervention Behavioral & Community Health Services Drug Treatment ✓ Mental Health Treatment Service Gaps ✓ Inpatient Treatment ✓ Primary Care Behavioral Health Services ✓ Detoxification & Stabilization ✓ BH Outreach & Case Management ✓ Family Services ✓ Emergency Department Screening School & Community Based Jail Services — Adult Youth Services ✓ Mental Health Services ✓ School Based Interventionists ✓ Substance Abuse Services ✓ Suicide Screening & Referral Infant /Early Childhood C wn t > Jail Services -Youth ✓ Nurse - Family Partnership ✓ Individualized Treatment Court ✓ Newborn Home Visiting ✓ Drug Court Assessment & Treatment Services Older Adult Services Jail Diversion ✓ Gero- psychiatric needs ✓ Adult Felony Drug Court assessment for service gaps ✓ Family Dependency Drug Court ✓ Sheriff Home Visits ✓ Competency Evaluations Housing Professional & Community Training ✓ Increase Supported Housing ✓ Law Enforcement /First Responder Training Sales -tax increase to benefit treatment of mentally ill to be proposed Kitsap Sun Page 1 of 2 Ktsap Read ffmm at kitsapsuin coo Sales -tax increase to benefit treatment of mentally ill to be proposed By Rachel Pritchett Monday January 14, 2013 Local health leaders soon will ask Kitsap County commissioners for a sales -tax increase to bolster local mental - health initiatives Led by Joe Roszak, Kitsap Mental Health Seances director, the group will propose a one -tenth of 1 percent increase of the sales and use tax, to generate between $2 8 million and $3 4 million annually Roszak, who tried but didn't get far with the tax proposal previously, said the time for the tax is now "We believe we have the leadership in place," he said "It's been long overdue for our county " The group that includes judges and health, social - service and public housing leaders will make its case for the tax increase at a commissioners' work -study session at 2 30 p m Jan 29 in the county Administration Building in Port Orchard The group also will ask commissioners to consider passing a resolution in support of the concept No decision will be made then Should commissioners decide to push the idea forward, a public hearing will follow After that, commissioners could institute the tax without a public vote That's been the case in nearly all of the 20 counties of the 39 counties in the state that so far have instituted the tax increase allowed by a 2005 state law Everyone would pay, regardless whether they lived in a city or unincorporated area Cities including Bremerton and Port Orchard have the subject on their to- discuss lists The Bremerton City Council takes it up Wednesday, Port Orchard on Jan 22 Kitsap County Commissioner Josh Brown said he can't say how receptive commissioners will be "I can't really predict what will come out of it," he said How the monies would be allocated could take many forms In King County, a large technical - advisory committee made up of representatives of different agencies http / / www kitsapsun com/news/ 2013 /.jan/14/ sales - tax - increase- for - mentally - ill- to- be / ?prm 1/15/2013 Sales -tax increase to benefit treatment of mentally ill to be proposed Kitsap Sun Page 2 of 2 recommends to the Metropolitan King County Council, which either accepts or rejects them On a $30,000 purchase, the portion of sales tax going toward mental health would be $30 In Bremerton, the tax rate would rise to 8 70 percent from 8 60 percent Locally, a long list of priorities about how the money would be spent has surfaced Some ideas include starting an adult mental - health court, where sentences might have a mandatory mental - health component Kitsap County already has a juvenile mental - health court, as well as drug courts and a veterans court Other priorities focus on early detection of mental illness, such as in the primary-care setting, hospital emergency rooms and homeless communities One suggests using the money to treat mentally ill people who don't qualify for Medicaid The priorities also include strategies to help youth, including suicide prevention and having school -based substance abuse and mental - health "interventionists " Priorities also include support for existing drug courts and finding more housing for those with severe mental illness or chemical dependency While the long wish list undoubtedly would change, it also includes finding out whether the local area needs a gero - psychiatric facility to treat older people with behavioral problems Advocates say the tax increase would greatly reduce social costs for dealing with people with mental health who hit crises The tax would reduce costs in law - enforcement and emergency rooms, for example Kitsap Mental Health Services Spokeswoman Rochelle Doan said the renewed local movement for a sales -tax increase to support mental health came before recent mass shootings in Newtown, Conn , and suburban Portland, Ore "This was already moving prior to those tragedies," she said The average sales tax across the state now is lust more than 8 95 percent, with 6 50 percent of that imposed at the state level and 2 45 percent at the local assessment The combined sales taxes range from around 7 percent in Eastern Washington to 9 5 percent in King County, where taxpayers fund South Transit, according to Mike Gowrylow, spokesman for the state Department of Revenue -`� © 2013 Scripps Newspaper Group — Online http //www krtsapsun com/news /2013/Jan/14 /sales- tax - mcrease- for - mentally - ill- to- be / 1/15/2013 AGENDA BILL CITY OF BREMERTON CITY COUNCIL 17) ■■ eeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeseeei SUBJECT: Re- approval of Amendment No Study Session Date 1/9/13 2 to the Real Estate Purchase and Sale COUNCIL MEETING Date 1/16/13 Agreement with Lorax Partners, LLC for Department City Attorney's Office residential air space on property commonly Presenter Roger A Lubovich known as Park Avenue Plaza Phone 473 -2345 SUMMARY: City Council approved Amendment No 2 to the Real Estate Purchase and Sale Agreement with Lorax Partners, LLC for the residential air space on property commonly known as Park Avenue Plaza on September 5, 2012 Substantial changes have been made to the amendment since City Council approval and staff is requesting re- approval of Amendment No 2 with the incorporated changes Amendment No 2 has been executed contingent upon City Council approval ATTACHMENTS: Amendment No 2 to Real Estate Purchase and Sale Agreement with Lorax Partners, LLC FISCAL IMPACTS (Include Budgeted Amount) There is no anticipated change to the fiscal impact from the prior approval STUDY SESSION AGENDA 19 No Discussion ❑ Full Presentation STUDY SESSION ACTION: lid- GeRseRtAgeRde /General Business ❑ Public Hearing RECOMMENDED MOTION: Move to re- approve Amendment No 2 to the Real Estate Purchase and Sale Agreement with Lorax Partners, LLC and authorize the Mayor to finalize and execute the amendment with substantially the same terms and conditions as presented etrO,. �- U ,{r.W 44% C Ma�fur -tv -�6fo , �!'ilt doyu • i InIml� GIB✓ �✓4 r � �r� ✓► 5 i �✓� S I ! qPm f'he4 appl�o COUNCIL ACTION: [Approve ❑ Deny ❑ Table ❑ Continue ❑ No Action Form Updated 11/02/12 AMENDMENT NO.2 REAL ESTATE PURCHASE AND SALE AGREEMENT This Amendment No 2 to Real Estate Purchase and Sale Agreement is entered between the CITY OF BREMERTON, a Washington municipal corporation ( "Seller "), and LORAX PARTNERS, LLC ( "Buyer ") as follows WHEREAS, the parties entered into a Real Estate Purchase Agreement ( "Agreement ") where the Seller agreed to sell and the Buyer agreed to purchase certain air space pads on property commonly known as Park Avenue Plaza, and WHEREAS, the sale of one of the air space pads, ( "Cinema Pad "), as identified in Exhibit A of the Agreement closed on or about July 26, 2011, and WHEREAS, the parties amended the Agreement with Amendment No 1 on July 19, 2011 deferring payment of sale proceeds of $70,000 ( "Deferred Payment") to Buyer relating to the sale of the Cinema Pad, and WHEREAS, the parties desire to enter into Amendment No 2 relating to the air space pads to be sold to delete certain air space pads from the Agreement leaving only the previously sold Cinema Pad and the residential air space pad to be sold pursuant to this Amendment No 2, and further to make other related amendments, and WHEREAS, Buyer established Lorax Ventures, LLC, a new limited liability corporation, for the purpose of acquiring the residential air space to be acquire and develop pursuant to the Amendment No 2 and therefore the parties hereto agree to assign Buyers interest in said air space to Lorax Ventures, LLC, and WHEREAS, Lorax Partners, LLC and Lorax Ventures, LLC are wholly owned by the same principals; NOW THEREFORE, the parties agree as follows A. Recognizing that the sale of the Cinema Pad as contemplated in the original Agreement has closed and that the parties desire to remove other air space pads from the Agreement, excluding the Residential Pad and the Cinema Pad, Exhibit A of the Agreement is amended to read as set forth in Exhibit A -1, attached hereto and incorporated by this reference. I REPSA Amendment No. 2 - Residential Pad B. Section 3 of the Agreement entitled "Purchase Price" is amended to read as follows: 3 PROPERTY AND PRICE (a) The Seller agrees to convey to Buyer and Buyer agrees to take title from Seller the Residential Air Space Development Pad legally described in Exhibit A -1 and further identified in Exhibit B as Residential Development Pad, hereinafter referred to as ( "Residential Pad ") which sale will close by August 1, 2015 (b) It is understood that Buyer intends to acquire title and ownership of the Residential Pad for Buyer development and/or ownership. Seller and Buyer shall close the sale of the pad to Buyer prior to any development of the pad (c) Pursuant to the Agreement and Amendment 1 to Agreement, Buyer had the option to acquire and resell the Residential Pad to a third party owner but also had the option to retain ownership of the pad for Buyer development and/or ownership Upon the closing of any third party sale by Buyer of the Residential Pad, Buyer was to pay Seller fifty percent (50 %) of the proceeds from Buyers resale of the Residential Pad, or fifty percent (50 %) of the mmimum value of $350,000 00, whichever is greater If the Residential Pad was not resold to a third party and Buyer gave written notice to exercise its option to retain ownership and/or develop the pad, Buyer was to pay to Seller fifty percent (50 %) of the minimum value of $350,000.00. (d) The parties acknowledge that Buyer no longer intends to acquire and resell the Residential Pad to a third party owner but intends to purchase said pad for its development and/or ownership Accordingly, based on the formula set forth in subsection (b) above, Buyer shall compensate Seller at closing fifty percent (50 %) of the value of $350,000 00 minus the deferred payment as noted in subsection (e) below (e) Pursuant to Amendment No 1 entered into by and between the parties, payment of sale proceeds to Buyer relatmg to the sale of the Cinema Pad has been deferred until future closing of remaining air space pad(s) The deferred payment will be deducted from the City's share of sale proceeds as follows $350,000 00 x 50 % = $175,000 00 Buyer will pay Seller $175,000.00 - $70,000 00 deferred payment _ $105,000.00 2 REPSA Amendment No. 2 - Residential Pad (f) In the event that Buyer shall not close on the sale of the Residential Pad by August 1, 2015, Buyer shall relinquish any and all interest in the Residential Pad at which time the Deferred Payment will be paid to Buyer without interest. C. Section 4 of the Agreement entitled "Contingencies" is amended to read as follows 4 CONTINGENCIES OF SALE OF RESIDENTIAL PAD TO BUYER The sale of the Residential Pad to Buyer is contingent upon the following. i Due to recent changes to this Amendment No 2 since City Council approval, this Amendment No 2 is subject to re- approval of the City Council 11 Agreement as to parking arrangements for residents of the Residential Pad and agreement for staging area within the parking garage and/or other areas for construction of the residential structure iii Establishment of a legal description for the Residential Pad with appropriate access for utilities and infrastructure as well as the use of area for lobbies, elevators, trash room, mechanical /electrical rooms and other necessary space to complete the intent of the apartment pad development as mutually agreed upon by Buyer and Seller IV Buyer's review and approval of the title report on the Property prior to Closing V. Currently the City of Bremerton has installed a temporary sign above the entrance to the parking garage under the Residential Pad off Burwell Avenue. The Buyer and Seller will mutually agree on the design, construction and installation of the new signage to the garage. This subsection does not bind the city to pay for a new sign This contingency shall survive closing Should any of the contingencies set forth in this section 4(1) through (iv) not be met by April 1, 2013, then the sale of the Residential Pad contemplated herem shall terminate and neither Buyer nor Seller shall have any further rights, duties or obligations hereunder, except for payment of the Deferred Payment of $70,000, without interest, by Seller to Buyer as identified to this Amendment No 2 which payment will be made by May 1, 2013, unless said dates are extended or the contingencies are modified by mutual agreement of the parties Upon such payment, all other rights and obligations between the parties in the Agreement and this Amendment No. 2 shall be deemed to have been met. 3 REPSA Amendment No. 2 - Residential Pad D. Seller and Buyer hereby agree that upon execution of this Amendment No 2, all interest in this Agreement and Amendment No. 2 will be assigned from Lorax Partners, LLC to Lorax Ventures, LLC All other terms of the Real Estate Purchase and Sale Agreement shall remain in full force and effect This amendment No 2 to Agreement is executed in duplicate originals IN WITNESS WHEREOF, the parties hereto have executed this Agreement on the date set forth below. CITY OF BREMERTON LORAX PARTNERS, LLC By: -� By qjU_ Patty Lent, ayor Its ^r Dated. Dated It-I By AW1, Its Dated ACCEPTED AND AGREED TO BY: LORAX U By o L- Its WOW Dated: 17,1 By. - - -• -- Its- Dated APPROVED AS TO FORM By Rog r A Lubovich, City Attorn R 1LepP1,ega11Fi1es\Current Active FiilesTark Avenue P1=kLomx\REPSA -Amend No 2. 124-12 - clean.doc 4 REPSA Amendment No. 2 - Residential Pad EXHIBIT A -1 • Air Space Development Pad/Cinema Phase, 24,640± sq. ft as located on Exhibit B. Said air space commences at the top deck of the City Parking Garage west section and extending to a height of forty feet (40') above the deck • Air Space Development Pad/Residential Phase, 13,550± sq ft as located on Exhibit B Said air space commences at the top deck of the City Parking Garage east section 5 REPSA Amendment No. 2 - Residential Pad EXHIBIT B 01 --4 CMM amonw"a - LL—� MAI nac,we mww,w �nonnrrtno O o �ft4t e Iris , o -- wseusom REPSA Amendment No. 2 - Residential Pad Move to authorize the Risk Management Specialist to expend up to $55,000 for clean -up and settlement with the property owner at 1328 Coffman Avenue, Bremerton, Washington related to a sewer overflow November 19, 2012.