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HomeMy WebLinkAbout4503 RESOLUTION NO. 4503 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF AUBURN, WASHINGTON, APPROVING THE PROCEEDS ! . DISTRIBUTION AND HOLD HARMLESS AGREEMENT BETWEEN THE CITY OF AUBURN AND THE CITY OF BELLEVUE REGARDING THE CITIES' JAIL SERVICES. AGREEMENT ~ WHEREAS, the City of Auburn, along with a variety of other King County area cities, entered into a contract with King County and the City ofBellevue for a jail services agreement whereby property initially intended to be used for a jail- site could be sold if that site were not to be used for a jail facility, and proceeds from the sale distributed to the cities; and WHEREAS, pursuant to the agreement, the City of Bellevue was to take the lead in any such sale of the property, with the proceeds to be divided as agreed by the party cities; and WHEREAS, pursuant to the agreement of the cities, the property is being sold and the funds distributed according to an agreed formula. NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF AUBURN, KING COUNTY, WASHINGTON, HEREBY RESOLVES as follows: Section 1. That the proceeds distribufion and hold harrnless agreement in substantial conformity with the copy attached hereto, marked as Exhibit A, and incorporated herein by this reference, is approved and the Mayor is authorized to execute this agreement on behalf of the City of Aubum Resolution No. 4503 July 8, 2009 Page 1 of 2 Sectioro 2. The Mayor is hereby authorized to implement such administrative procedures as may be necessary to carry out the directives of this legislation. Section 3. This resolution shall be in full force and effect upon passage and signatures hereon. Dated and Signed this A'- day of , 2009. CI OF A N~~ PPETE"k B. LEWIS MAYOR ATTEST: Da ' Ile E. Daskam, City Clerk A VED S TO FOR : aniel B. H'd, ity A omey Resolution No. 4503 July 8, 2009 Page 2 of 2 a ~ PROCEEDS DISTRIBUTION AND HOLD HARMLESS AGREEMENT This Proceeds Distribution and Hold Harmless Agreement (Agreement) is entered into between Auburn (JAG City) and the City of Bellevue and is effective upon the da.te of the last signature below. RECITAI.S ' A. Whereas, King County entered into a Jail Services Agreement (JSA) with many of the cities located in King County (Contract Gities) to,house and provide jail services for Contract Cities' misdemeanants; B. Whereas, the JSA provides for tlie transfer of real property located in Bellevue with tax parcel numbers 2825059291, 2825059292, and 2825059015 (Jail Property) to the CiTy of Bellevue on behalf of the JAG Cities to facilitate the Contract Cities reducing their jail population housed by King County as provided in Section 11 of said JSA; C. Whereas, Section 12 of the JSA provides that the Jail Property (or the proceeds from its $a1e [Proceeds]) will be used to contribute to the cost of building secure capacity, or contracting for secure capacity, and at the sole discretion of the Contract Cities, building or contracting for alternative corrections facilities, sufficient to enable the Contract Cities to meet the final step of the population reduction schedule in the JSA; D. Whereas,. Section 12 of the JSA further provides that in the event the Contract Cities do not meet the objectives set forth in said section, King County would be entitled to return of Proceeds; E. Whereas, on October 31, 2002, the City of Bellevue and King County entered into a - Land Transfer Agreement [City of Bellevue Clerk's Receiving # 33014] conveying the Jail Property to the City of Bellevue on behalf of all cities in King County (JAG Cities) for the purposes described in Section 12 of the JSA; - F. Whereas, JAG Cities, except Kent and Enumclaw, entered into an Interlocal : . Agreement for Jail Administration (Interlocal Agreement) in part to create rules for administering the obligations related to Sections 11 and 12 of the JSA; G. Whereas, the obligations of Secdon 12 of the JSA are incorporated into Section 7:1 of the Interlocal Agreement including its application to a11 King County Cities; H. Wliereas, on Mazch 16, 2009; the City of Bellevue (Bellevue) sold the Jail Property to Seattle Children's Hospital for $13 million; I. Whereas, on March 26, 2008; the Assembly created by the Interlocal Agreement approved the distribution of Jai1 Proceeds; - 1 - July 7; 2009 , J. Whereas, some Cities have acted to designate their porfion of the Proceeds towards fulfilling their obligations under the JSA through undertakings such as the SCORE facility; K. Whereas, it is the intent of this Agreement that Bellevue stand in no worse (or better) position than any other JAG City with respect to liability or costs associated with the distribution of andlor possible return of Proceeds to King County because of its : unique obligations to King County in Section 12 of the JSA as incorporated into the Interlocal Agreement (unique Section 12 obligations); L. Now therefore, in consideration of the mutual promises contained hereiri and other good-and valuable consideration, the receipt and adequacy of which are hereby acknowledged, and as a precondition for receipt of said Proceeds, the JAG City and Bellevue agree: AGREEMENT 1. Per the Jail Oversight Assembly approved formula noted in the city-by-city proceeds distribution (Attachment A), Bellevue sha11 pay JAG City, $ 802,194.52 (representing $ 808,34132 - its proportionate share of the Proceeds/Interest minus $ 6,146.80 its proportionate share of the expenses Bellevue may recoup as provided in Section 7.2 of the Interlocal Agreement) within 30 days of the execution of this Agreement. 2. Upon receipt of said Proceeds, JAG City acknowledges and agrees that Bellevue has lawfully dischaazged all obligations and duties of Bellevue to that JAG City under the first paragraph of Section 7.2 of the Interlocal Agreement,' and that Bellevue is - discharged from all of its obligations and duties to that JAG City under the second paragraph of Section 7.2 of the Interlocal Agreement. , 3. JAG City will abide by all requirements regarding the use of and goals related to the proceeds as provided in Section 7.1 of the Interlocal "Agreement (whether a party to a JSA or not). JAG City will only leave or place a City Inmate in King County Jail after December 31, 2012 (post 2012 inmate housing) if King County confirms in writing that this post 2012 inmate housing does not violate the population reduction schedule referenced in Section 12 of the JSA and incorporated into Section 7.1 of the Interlocal Agreement. ° 4. Should there be a determination that a JAG City failed to abide by the requirements of Section 7.1 (at-fault JAG City) triggering an obligation for Bellevue to return:all or part of the at-fault JAG City's Proceeds and any required interest to King County, said Proceeds sha11 be paid to Bellevue within 10 working days of written notice unless the at-fault JAG City makes other acceptable arrangements with Bellevue and/or King County or the at-fault JAG City obtains injunctive or other legal relief against King County that absolves Bellevue of any legal obligation to return said Proceeds and interest prior to the expiration of the 10 working day period. - 2 - July 7; 2009 ; 5. Bellevue and JAG Cities maintain that King County may only require return of Proceeds from an at-fault JAG City. However, if there is a determination that there is an obligation to return to King County Proceeds in an amount in excess of the amount distributed to an at-fault JAG City(s) ttien each non at-fault JAG CiTy sha11 pay up to . the full amount of its Proceeds and any required interest to Bellevue within 10 woiking days of written notice unless the non at-fault JAG City makes other acceptable a.rrangements with Bellevue and/or King County or the non at-fault JAG City obtains injunctive or other legal relief against King County that confirms Bellevue has no legal obligation to return said Proceeds and interest prior to the expiration of the 10 working day period. If the obligation to return Proceeds is in excess of the at=fault JAG City's distribution, but less than each JAG City's full Proceeds, tlie aznount due King County from the non at-fault JAG Cities sha11 be a prorated amount based on the percent of Proceeds received to the total Proceeds' minus the amount representing the at-fault JAG City's share, The same prorated formula shall apply to required interest due from non at-fault JAG Cities. 6. Should Bellevue be sued for return of proceeds solely because of its unique Section 12 obligations, the alleged at-fault JAG City(s) shall immediately undertake the defense of Bellevue and pay a11 expenses and costs (including attorney's fees) ' associated with said defense whether or not said JAG City maintains it is or is ultimately determined to be not at-fault. Should King County be entitled to its : attorney's fees in the suit, the at-fault JAG City shall hold Bellevue harmless and indemnify Bellevue from any liability or costs associated with the obligation to pay King Gounty's attomey's fees. 7. Should Bellevue be the only party sued based on the alleged fault of other JAG Cities, those alleged at-fault JAG Cities agree to stipulate to being named as defendants with : the concurrence of Plaintiff and/or not oppose Bellevue's motion to be included in the suit as an indispensible party. The obligations of Paragraph 6 sha11 apply whether or not the alleged at-fault JAG City is named in the litigation. 8. If King County sues Bellevue for return of proceeds because of Bellevue's alleged violation of Section 12 of the JSA regarding use of proceeds or the reduction in:jail population, along with other JAG Cities for their violations, each party will undertake its own defense at its own cost. 9. At-fault JAG Cities sha11 be responsible for costs of whatever form or nature , associated with Bellevue's unique Section 12 obligations, including but not limited to staff costs in coordinating and collecting proceeds or attorneys fees, and including administrative costs Bellewe incurs even where timely payment of Proceeds is made. Said costs shall be prorated among at-fault JAG Cities as appropriate. 10. In the event Bellevue incurs liability or costs associated with its unique Section 12 obligations and said liability or costs.are not addressed in any other provision of this Agreement, each JAG City shall indemnify, hold harmless and defend Bellevue and - 3 - July 7, 2009 its elected officials, employees agents and representatives from and against any and a11 claims, demands, causes of action, liabilities, judgments, settlements, damages or costs, including reasona.ble attorney's fees of whatever form related to Bellevue's unique Section 12 obligations in proportion to its shaze of the proceeds. 11. Each JAG City shall keep its Proceeds in a segregated fund and keep records sufficient to demonstrate that all expenditures of the Proceeds comply with Section 7.1 of the Iriterlocal Agreement. Said records sha11 be kept for at least 6 years from the date ofthe expenditure of the last Proceeds of the JAG City. 12. The JAG City representative who will be responsible for management and expenditure of the fund and for receiving notices related to tlie obligations under 7.1 of the Interlocal Agreement is (include name title, address & phone a. 61epwm ,FiWhce. 'b17-c~ 2Sl,~/ %1~Tiv St ,4liBu~ZN lu~ 1r'~~/ - JAG City sha11 notify Bellevue of any change in this designated representative' or contact information. 13. The City of Bellewe as a recipient of $ 971,638.82 (representing $ 979,083.98 its - proportionate share of the Proceeds/Interest minus $ 7,445.16 its proportionate share - of the expenses) is also a JAG City and in that capacity shall be bound by the same terms under this Agreement as any other JAG City. 14. This Agreement sha11 be authorized by each JAG City's legislative body or other authorizing authority if not within authority of legislative body. 15. General Provisions: A. Governing-Law; Foium. The Agreement will be govemed by the laws of . Washington and its choice of law rules. The JAG City consents to the exclusive personal jurisdiction and venue of the federal and state courts located in King County, Washington; with respect to any dispute arising out of or in connection with the Agreement, and agrees not to commence or prosecute any action or proceeding arising out of or in connection with the Agreement other than in the aforementioned courts. B. Severability. If any provision of the Agreement is held to be invalid or unenforceable for any reason, the remaining provision will continue in full:force without being impaired or invalida.ted in any way. The parties agree to replace any invalid provision with a valid provision that most closely approximafes the intent and economic effect of the invalid provision. - 4 - July 7; 2009 C. Nonwaiver: Any failure by a party to enforce strict performance of any proyision of the Agreement will not constitute a waiver of that party's right to subsequently enforce such provision or any other provision of the Agreement. D. No Assignment. Neither the Agreement nor any of the rights or obligations of the JAG City arising under the Agreement may be assigned without Bellevue's prior written consent. Subject to the foregoing, the Agreement will be binding upon, enforceable by, and inure to the benef t of; the parties and their successors and assigns. E. Notices.. All notices and other communications under the Agreement must be in . writing, and must be given by registered or certified mail, postage prepaid, or delivered by hand to the party to whom the communication is to be given, at its . address set forth in this agreement. F. Lega1 Fees. In any lawsuit between the parties.with respect to the matters covered by the Agreement, the prevailing party will be entitled to receive its - reasonable attorney's fees and costs incurred in the lawsuit, in addition to any otherrelief it may be awazded. . , GCounterparts. The Agreement may be signed in counterparts, each of which shall be deemed an original, and all of which, taken together, sha11 be deemed one and the same docurrient. In witness whereof, the parties have executed this Agreement and it shall be effective as of the last date written below. CITY OF AUBURN = j JUL : 1.:0 2009 ' By: Date: Title: CITY OF BELLEVtJE gy; ~lir~ ~ Date: 7' 24- b1 Title: W,14 - 5 - July.7; 2009 JAG Propertv Proceeds Distribution, Methodoloqv Approved bv the Jail Oversiqht Assemblv on March 26, 2008 Sale Price/Proceeds Interest/Revenue Proceeds 8 Admin/other costs Cities' Distribution $12,986,694.50 $113,034.78 Interest/Revenue $99,613.08 $13,000,116.20 . Proportionate Proportionate Proportionate Share of Proportionate Share Flnal City-by-City Cities distributon based on Share of Revenues Proceeds & of Costs (3) Proceeds Av . of AV & ADP 1 2 InteresURevenues Dtstribution NOTES: gona 23 68 3 201 5 , 6 9 $23,192.28 31 94:52._.__ . : (1) The proceeds formula is an average of Beaux Arts $2,520 18 $21 94 $2,542 11 $19.33 t $2,522.78, , each city's AV and ADP. Assessed Value ~eilevue, ...,.,',$~Y0~83568 . . . . . r$8~44831 ~ . $97$;083.98 . . .$7, 44b 18 $971,63.8:~2..._.. (AV) was derived from the King County Black Diamond $13,282 47 $115.61 $13,398.08 $101.88 f $13 298,20„ - s - - Assessors Office estimates for 2007. ~ot elE $.12~ 7~4 7j _ $127,857 ~28.885:71_.. ~ Burien $152 831 47 $1 328 49 $153 959.95 $1,170.74 erage Oaily Population (ADP) was based $152 789.21 Av 43:_.. . . $$.307;7a___.. on 2005-2007 data provided by each city. Clyde Hill $42,491 88 $369 84 $42,861.73 $325.93 $42 535 80 The methodology was approved at the March 9• ng ~i ~ ~8B049 39 ~ ffi574 89, - $6~.0 24"08-.~ . . . 26, 2008 Jail Oversi9ht AssemblY Meetin _ Des Moines $177,128.08 $1,541 70 $178,669 78 $1 358.64 $177 311.14, Puval) 2~~~~ b$ .$24~4l Enumclaw $90,688 23 ~ $789 34 ~$91 477 57 $695.61 .$90 781 96 5,.... F006l Way~ 0 66 939 (2) This column includes all interest Hunts Pomt $18,431 60 $180 43 $18,592 03 $141 38 $18 450.85 690 57 ' v generated to-date in the account holding the ~~$21,9, $1$1218 $221,60~ 7~~.. . $`1.,5851'1 ~ ~,~1~' ~l sale ro ertKenmore l $124,016.44 ~M $1,079.43 ~ $125,095.86 $951.26 .$124,144.61\~ p P YProceeds. 48. ~V;167,858 Kirkland $425,046 74 _ $3,699 56 ~ $428 746.30 , $3 260 28 $425 486 02 (3) The costs were incurred by the City of Lake Fot~st _ $619 ~8; f 0,832 4~ a__ Bellevue on behalf of the rest of the cities and Maple Valley ~ $5,716.09 $484.95 $56,201.0 $427 36 $55 773:68 ~ -are recoupable as provided in Paragraph 7.2 of the Interlocal Agreement. Mercer Island $215,059.90 ~~$1,871.86 $216,931.76 $1,849.59 $215,282.16 $'1.980 Newcastle $53,980.39 $469.67 ~ $54,430.06 rv y $413.90 $54,016.16 466:39 North Bend $26,486.09 $230.36 $26,696.45 $203.01 $26,498.44 $14, $14.,1$05:~ . 56~~. (17 Redmond $454,343.94 $3,954.56 u$458,298.50 $3,485.00 $454,,813.50" ',~6.`w...~n $~@4d0~ Sammamish s $208,156.50 $1,811.77 $209,968.27 $1,596.64 ~ $208,371.63 ~~....`~~$;~ia20 0~, e~.~..~. 4..: . 1,252„81 $.163,4987$.... . ` Seattle $4,707,346.10 $40,972.23 $4,748,318.33 $38,107.21 ~ $4,712,211.12 Final Version: ;$385,4~5 $~;354 $388,759 69i .a < . .$2,956 21 $3~35.8~3 ;3~.. . Jlll7 2009 Skyliomish $1 617 92 $14.08 $1 632 00 $12 41 $1 619.59 y' Tukwila $287,414.71 $2,501.63 $289,916.33 $2,204.58 $287,711.75 VU±podinville ~750 55 Yarrow Point $17,390.02 $151.36 $17,541.38 $133.39 $17,407.99 $12,986,694.50 $113,034.78 $13,099,729.28 $99,813.08 $13,000,116.20