HomeMy WebLinkAbout2024 10 17 Ltr to City of Bremerton - Renewal of Concession AgreeemntReply to:
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Jemima J. McCullum
Direct: (253) 620-6520
E-mail: jmccullum@gth-law.com
October 17, 2024
Sent via email to Mychael.Raya@ci.bremerton.wa.us
City of Bremerton
345 6th Street, Suite 100
Bremerton, WA 98337
Attention: Mychael Raya
Re: Renewal of Concession Agreement
Dear Mychael:
As you know, our firm represents the YMCA of Pierce and Kitsap Counties (“YMCA”). I am
writing to you concerning its rights under the Concession and Management Agreement, made
effective October 10, 2011, as amended by that certain First Amendment, dated December 4,
2020, Second Amendment, made effective May 32, 2021, Third Amendment, made effective
October 1, 2021, Fourth Amendment, dated January 1, 2022, Fifth Amendment, dated
March 19, 2022, Sixth Amendment, made effective May 6, 2022, and that certain side letter,
dated November 30, 2023 making the term extended, effective April 1, 2024 (collectively, the
“Agreement”) and expiring on March 31, 2025 (“Expiration Date”).
The Agreement provides for an opportunity for the YMCA to extend the Agreement on the
Facilities (Rec and Pool) for five additional one (1) year periods during the term of the
Agreement, and the YMCA is hereby exercising its second (2nd) of such one-year periods, to
cause the Agreement to renew and run and extend the term from April 1, 2025 through
March 31, 2026 pursuant to Article 2.2.1 of the Concession and Management Agreement.
Upon exercise, the YMCA will have three (3) more one-year renewal options remaining.
We would appreciate your sworn affidavit and written acknowledgement that this extension
was properly exercised.
Simultaneously, we wanted to again bring up the roof and maintenance issues under Sections
3.2.1(e) & 4.5.1 of the Agreement. Specifically, the Agreement calls for certain obligations of
the YMCA and also contemplates the YMCA being excused from those obligations due to leaky
Gordon Thomas Honeywell LLP
October 17, 2024
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Law Offices | www.gth-law.com
[4871-4906-7244]
roof issues. Due to continuing leaks in the pool room through the roof and walls, the YMCA is
again unable to meet the obligations in Section 3.2.1(e). We would again, simultaneously,
appreciate your written acknowledgement of the current condition of the pool and waiver of
the YMCA’s obligations set forth in Section 3.2.1(e) and 4.5.1 of the Agreement.
We would also appreciate the City again confirming that it has no independent plans to close
the pool during the renewal Term or to terminate the YMCA’s operation, management and
maintenance of the Pool during the renewal Term.
We would also appreciate the City’s confirmation that it is actively pursuing governmental
funding for the work needed to the pool at the facility. In your last side letter confirming the
previous extension, you had indicated that efforts would be made to fund the very necessary
ongoing roof and maintenance issues. Here we are, a year later, and nothing material was
done, leaving the Pool and Facilities in even worse condition now than they were then. This
is all the more reason that the City should grant our requests for continued waiver of the
obligations in Sections 3.2.1(e) and 4.5.1 of the Agreement.
When we exercised our option to renew last year, and had prepared a Seventh Amendment
to codify the extension, you had indicated that you felt only a side letter was needed. We
assume that you would like to proceed similarly for this renewal.
Sincerely,
Jemima J. McCullum