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Home My WebLink About07-13-2009 ITEM IV-C� `� _ ..... _ y� CITY�F - � �^ �" � . �* � ��- �. �� v�rASK��TO� AC ENDA B� LL APPR�VAL F�RM Agenda Subject: Resolution No. 4�fl3 Dat�: Juiy 8, ��9 �epartment: Atta�hments: JAG Praperty proceeds Budget Impact: � Pa�i�e Distrihu�ion sheet; and Resolution Na. 45�3 and Exhibi# A- Proceeds �istributian and Hold a. Harmless Aqreement} Adm�nistrat��e Recommendation: ��ty Council adop# Resolution No. 45�3. Background Summary: FISCAL IMPACT: The Jail Adv�sory Group �JAG} d�signated the C�ty of B�Ifevue lead agency for maintain�ng and disposing of three parcels �f land abuttin� 116th Avenue N.E. just north of NE �2th St �tax pa�ce�s # 28�5�59291, 2825D59�92, and �8�5��9015}. These parcels wer� provided to cities through negotiation of the Jail Services A�reement with King �ounty in �D��. As �ead agency, Belle�ue is holding #he proceeds fr�m th� sale of th� prape�ty on behalf of al! King County cities. The to#al amount of ��oceeds �net sale proceed� plus in�estmen# in�e�est revenue} �s appraximately �13. � miflion. The cities, through the Jai� a�ersight Assembly, have directed d�stribution of the proce�ds to each ci�y signing the Prflceeds Agreem�nt based on a method�logy that ut�l�z�s an a�erag� of each city's assessed �aluatian and jaif popuia�ion �see Attachment 1}. As th� caretaker �f the property, Beilevue �s allawed to recover c�sts incu.rred ta manage and s�ll the proper�ies, which totaled apprnximat�ly $14�,D�D. This amount wi�l be deducted from the total proceeds prior to dis�ribution t� ail of th� c�ties in �rder to reimburse Belle�ue #or incurred expenses. Based upon the ��ersight Assem��y's approved methadoiogy, the City of Auburn's estimat�d share o# the remaining proceeds is apprflx�mately �5��, � 94.52 Based u�on the 2��2 Jail Serv�ces Agreem�nt �JSA} wi#h K'rng County, the pr�ceeds must �e used for the purpos� af pro�iding or contracting far s�cure �ail beds. The City of Auburn, however, maintains discretion av�r the speci�ic use �f Ets share of the proceeds; pro�ided the funds a�e used in a manner consistent with #he JSA F'�7��-� Re�iewed by Council & Cammittees. R��iewed by Departments & Di�isians; ❑ Arts C�mmission C�UNCIL C�MMITTEES: ❑ Bui�ding ❑ M&� ❑ Airport ❑ Finance ❑ �emetery ❑ Mayar ❑ Hearing Examiner ❑ Municipai Ser�. ❑ Finance ❑ Parks ❑ Human Services ❑ Planning & CD ❑ Fire ❑ Pfanning ❑ Park Board ❑Public VlJarks ❑ Legal ❑ Police ❑ Planning Comm. ❑ ather ❑ Public Works ❑ Human Resources Ac#ion: Committee Appro�a�: ❑Yes ❑No Council Approval: ❑Yes ❑No Call for Public Heari�g 1 1 Referred to Unti! 1 1 Tab1�d Until 1 1 �auncilmember: Cerinv Staff: K�11 IVleetinq Date: July �4, ��a9 _ �tem Num�er; ��,.� � �.C�J�� T`I-�� C�� I1�t..��I.[�� Agenda Subject: Resolution No. 4��3 Date: July 8,2�D9 P�LI�Y ��NSIDERATI�N: �ontrac�s providing jail b��s for ci�y mEsd�meanant inmates at K�ng County and Yakima County expire in �� Z and 2�1 � respec#ively. Cities have be�n working together ta plan for secure �aii heds for city inmat�s in the future. As a camponent of the �� JSA with King �ounty, King �ounty transferred ownership of praperty located in Believue to the Gity of Befievue on behalf of alE King Coun�y cities. The JSA all�ws cities to use the �roceeds from the sale of th� prn�erty fvr �he purpose �f buil�ing or contraciing for s�cure jail beds. As the ��ad city des�gnated �� maintain and d�spose of the property, B�Ile�ue is resp�nsible for making the distr�bu#i�n �f the proc��ds from the pr�perty's sal� aGCO�ding to the m�#hodoiogy appro�ed �y the Jail �versight Assem�ly. ln Bellevue's lead rvle, it also has unique obligativns to r�tum proceeds to King �ounty should ane ar more ci#ies misspend their proceeds. �n Ju�y �, 2��9, the Bell�vue City �ounc�! approv�d the Proceeds A�reement, car�ying out direction mad� by the Jail �v�rsigh� Assembly last year to distribute pr�ce�ds from �he saie of the of �he jai� property �o each city for jail purposes and to protect Bellevue in its lead role shauld a r�#urn of �roce�ds #o K�ng C�unty be required. BACK�R�UND lNF�RMATI�N: The JAG Jail Administration Group} was formed after reneg�tiati�n af the JSA which calls for a phased reduction in c�ties' misdemeanant prisoners. The curr�nt agreement ends on D�cember 3�, ��, which is th� date that all city misdemeanants must be housed in al#erna#e fac��i#��s unless oth�r arrangements are made with K�ng �ounty. The JA� pravides an organizational structure for Goordinating the Gontract for jai� beds with Yakima and K�ng counties and to plan for new local jail beds that would be ne�ded when the King Caunty contract �xpires. The full JAG �epresents thirty-seven I�ing County cities and includes an oversigh# cammittee composed of efected officials fram each ci�y �the Jail ��ersigh# Assembiy}. A jail needs study was comp�eted in ��5 which identified a to�a� p��ected average daily bed need of 1,45� beds for a�l JAG cities in 2D�6. In ��7, the cities fvrmed two groups fflr regiona! jail plannin� purposes, S��RE �S�uth County Correctional En�i�y} and the N�r#h East Ci�ies �NE�}. Both groups are cur�ently �ngaged in feasibi�i#y or construction planning far new �ail fac�lities. . At the time cit�es entered in�o the current JSA with King County, the Gounty transferred �wnership of prn�erty wi�hin the Belle�ue city �imits #o Bellevu� ta hold on b�half of K�ng County cities. Th� property, or� praceeds frvm sale of the properky, was to be used �o h�lp provide funding to cit��s for new misdemeanant jaii capacity. �ased on the antic�pated sale of the ja�l property, on March 26, ��8, �he Jail �versigh� Assembly authorized distribution of the sales proceeds based on a formula of an a�erage of each King County Gity's AV �assessed value} and ADP �inmate a�erage daity popu�ativn}. Dis#r�bu�ion of th� funds would alfow cities #o utilize the funds to meet th� intent of the �r�perty transfer. The City of Auburn's est�mated share of the funds is approximately $8D1,36G.3� �see Attachment 1}. The Council has the author�ty to determine how #hese funds are spent by the City, pro�ided the funds a�e app�ied as r�quired in the JSA. ln March, 20�9, the City of B�Ilevue completed the sale of the jail property to Children's Haspital. B�Ilevue is holding the procee�s in a d�signat�d account pending th� cample#ian �f the Agreement with �ach city to receiWe their share of the proceeds. Each c�ty will need to enter into an agre�ment with the City of 8ellevue to recei�e the designated amaunt of funds. Staff is seeking Counc�l appro�al for the City Manager to sign a��oceeds Agreem�nt �o �e�eiv� an appartionm�nt of the estimated designated funds as pro�ided �n A�tachment �. Use of the pr�perty or �roceeds from the property is spelled out in the JSA. The JSA indicat�s JA� cities will: 1} use the funds tv c�ntribu#e to the cost ta construct o� contra�t far secure facilities, and also may use the funds to construct or �antrac# for alterna#i�� correct�on facilities at the discretion of the �it�es; and �} the cities wil� reach the zero targets at King Cvunty facilities by December 31, 2�12. The praperty transfer agreement and JSA provi�e �hat in its lead role, Belie�ue is respansible for returning to King Page 2 of 3 Agenda Subject: Resolution No. 45�3 Dat�: Ju1y 8,��09 Cflunty p�oceeds distri�ut�d to Bellevue and other ci��es should King County prove these prov�sions have not been me#. These do�uments are ambiguous as ta the scope of proc�eds #hat must be return�d in this ci�cumstance or in th� e�ent of failing to meet the z�ro targets. It is Belle�ue's and other King County ci�ies pvsition �w� be�i��e} tha# each city is anly individually liahle f�r return of its proceeds should its act�ons violate the agreements. lt is not clear at this paint wheth�r King County would assert another reading of the agreem�nts. �ne purp�s� of this Proceeds Agreemen� is t� protect Belle�u� so tha� it daes not have any great�r liabi�ity or casts #han any ather city sole�y because if its lead role functions in returning proceeds. The proceeds d�stribution agreement has b�en drafted ta ensur� that all ci�ies must ac�ep# an appropriat� shar� of potent�al f�abi�itylcosts under variaus possible scenarios involving King �ounty making a ciaim against Bellevu� for return of other cities' p�oceeds. Page3of3 _ � � � � � � � Q � s .... � � � � �� .... � � � � � � � � � � L � � - 0 � � s .� � �' � � L � � Q � � � � N !� � s � L � � .. � W H � Z •� o .�' �N � tD y, � G N ,r' �i � � ._ � ..' 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(n C� V] f1�:;;V) � H "��'..�• � N tD r 0 M r � � � Q7 � N N 07 0 � � � s� M r r il� v � t�D O�D N r � RES�LUTl4N N�. 45�3 .�__..__ A RES�LUTI�N �F THE �ITY ��UNC1L �F THE ClTY �F AUBURN, WASHIN�T�N, AP�R�VIN� THE PR��EEDS DiSTRIBUT��N AND H�LD HARMLESS A�REEMENT BETWEEN THE CITY �F AUBURN AND THE CITY �F : BELLEVUE RE�ARa�N� THE CIT�ES' JAIL SERVI�ES ; A�REEMENT A WHEREAS, the City �f Auburn, along with a variety of �ther King �ounty area cit�es, ent�r�d into a contract with King �ounty and the �ity of B�Ile�ue for a�ail services agreement rrvh�reby prflperty initialiy int�nded to be used for a�ail site could be sold if that site were not to be used f�r a jail fa�ility, and proceeds fram the sale distributed to the �it�es; and WHEREAS, pursuant to the agreement, the ��ty �f Belle�ue was t� take the lead in any such sale of the �roperty, w�th the proceeds to be d��id�d as agr��d �y the party c�t��s; and VIIHEREAS, pursuant to the agreement of the cities, the property is �eing s�ld and the funds d�stributed according to an a�reed formula. N�W, THEREF�RE, THE CITY ��UNCIL �]F THE �ITY �F AUBURN, KlN� ��UNTY, �IVASHIN�T�N, HEREBY RES�LVES as f�llows: Section 'I. That the proceeds distribution and hold harmless agreement in substantia! conformity with the copy attached hereto, marked as Exhibit A, and incorporated herein by this reference, is appro��d and the Mayor is authori�ed to execute this agreement on behaif of the �ity of Auburn Resolution No. 45�3 Ju�y 8, ��9 Page 1 af � �ectian 2. The Mayor is here�y authorized to implement such administrat�ve proc�dures as may b� necessary t� carry out the dir�ctives of this leg�slation. Section 3. This resolution shall be in fuli force and effect up�n passage and si�natures her�on. Dated and S�igned this day of ,��9. CITY �F AUBURN PETER B. LEWiS MAY� R ATTEST: Dani�lle E. Daskam, �ity �I�rk AP�R�VED AS TC� F�RM: Daniel B. Heid, �ity Attarney Resalut�on Nv. �5�3 July 8, 2��9 Page 2 of � PR��EEDS DISTRIBUTI�N AND H�LI� HARMLESS A�`rREEMENT Th�s Pr�ceeds Distr�buti�n and Ho1d Harmless Agreement �Agreement} is entered inta between Auburn JA� �it � and the City of Beilevue and is effective upon the date of the � Y last signature be�ovv, RE�ITALS A. �hereas, King ��unty entered into a Jail Ser�ices Agreement �JSA} with many of the �ities located in K�ng �ounty ��ontract �ities} t� h�use ax�d provide j ail ser�i�es for �ontract �ities' misdem�anants; B. Whereas, the JSA provides for the transfer of real property lncated in Bell�vue with tax parcel numbers 28�5�59291, 28�5�59Z92, and 25�5�59�15 (Jail Property} to the City of Bellevue on behalf af the JA� �ities t� facilitate the �ontract Cities reducing their j ai1 populati�n housed by King �aunty as provided in Section 11 of sa�d J�A; C. Whereas, Sectian 12 of the JSA prov�des that the Jaii Property �or th� proceeds from its sale �Proceeds]� wil� be used to contribute to the cast of bui�ding secure capacity, or contra�ting for secure capa�ity, and at the sole diseret�on af the �ontract ��t�es, building ar contracting for alternative carrections fac��it�es, suff cient to enable the ��ntra�t �ities to meet the final step of the population reducti�n schedule in the JSA; D. Whereas, Secti�n 12 af the JSA further proyides that in the event the �ontract �ities do not meet the obj e�tiv�s set farth �n said s�ction, I�ing ��unty would be entit�ed to return of Proceeds; E. Whereas, on �ctober 31, 2��2, the �ity of Bel�e�u� and I�ing �ounty entered into a Land Transf�r Agre�ment [City of Bel�e�ue Clerk's Re��ving ## 33�14] conveying the Jai1 Prop�rty to the �ity of Beile�ue an behaif of ali �ities in King �ounty (JAG Cities} for the purpases described in Sectian 12 of th� JSA; F. �Vhereas, JA� Cities, except I�ent and Enumclaw, entered inta an Interloca� Agreement for Jail Admin�strat�on �Inter�acal Agreement} in part to create rui�s �for administering the abl�gations related to Sect��ns 11 and 12 of the JSA; G. �L1'hereas, the obligations of Section 12 �f the JSA are incarporated �nto Sectian 7.1 of the Interlocai Agr�ement in�luding its application to a�� King ��unty ��ties; H. �hereas, on Mar�h 16, 2��9, th� �ity of Bellevue �Bel�evue� sold the Jail Property ta Seattle �hildren's Hospital for $13 mil�ion; I. Whereas, on March ��, 2��8, the Assemb�y created by the Interlocal Agreement appro�ed the distributi�n of Jail Proceeds; _ � .. July 7, 2��9 J. Whereas, some �ities ha�e acted t� designate their portion af the Proceeds t�wards fulfilling their obligatians under the JSA through u.ndertakings such as the SC�RE facility; K. Whereas, it is the intent of this Agreement that Be�le�u� stand in n� warse �ar better} positian than any ather JA�'`r �ity with respect to Iiability ar casts associated wit� the d�stribution of andlor possible return of Pro�eeds to King County because vf its unique obligations to King �aunty in Secti�n 12 of the JSA as incarporated into th� Interlocal Agreement (u.nique Section 12 obligations}; L. Now therefore, in consideration of the mutua� promis�s contained her��n and other gavd and valuable cansideration, the receipt and adequacy of which are hereby acknowledged, and as a preconditi�n for receipt of said Proceeds, the JA�`r �ity and Belle�ue agre�: A�REEMENT 1. Per the Jai� �versight Assembly approved f�rmula nated in the cit�-by-city praceeds distribution �Attachment A}, Be��evue sha1� pay JA� �ity, $ 8�Z,194.5Z (representing $$�8,341.32 - its proportianate share of the Proceedsllnterest minus $ 6,145.8� its pr�portionate shaxe of the expenses Belle�ue may recoup as provided in Section 7.2 of the Interiacal Agreement� with�n 3� days of the execution af this Agreem�nt. 2. Upon r�ceipt of said Pr��eeds, JAG �ity acknowledges and agrees that Bel�evue has lawful�y discharged all obligations and duties af Bellevue to that JA� City under the fzrst paragraph of Section 7.� of the Interl�cal Agreement, and that Bel�evu� is discharged from all af its obligations an� duties to that JAG �ity u.nder the second paxagraph of Sectian 7.� af the Interloca� Agreement. 3. JA� City will abide by all requirem�nts regard�ng the use of and g�als re�ated to the roceeds as rovided in Section 7.1 of the Interl�cal Agreement �whether a paxty to a p p . . . . . . JSA or n�t}. JAG �ity wiil only leave or place a�ity Inmate �n King County Ja�l after December 31, ��12 �post 2�12 inmate housing) if King �ounty confirms in writing that this post 2� 12 inmate hausing does not vioiate the p�pulation reduction schedule referenc�d in Section 1� of the JSA and incorporated into Section 7.1 af the Interlocal Agreement. 4. Should there be a determination that a JAG �ity failed tn abide by the requirem�nts of Secti�n 7.1 �at-fault JAG �ity} triggering axi �bligation for Bel�evue to return al� or p art of the at-fault JA� �ity's Proceeds and any required interest to I�ing Caunty, said Proceeds shall be paid to Bel�evue v�rithin 1� working days of written notice unl�ss the at-fault JAGr City makes other acceptable arrangements with Beilevue a,ndlor King �ounty or the at-fau�t JAG �ity �btains injuncti�e or other 1ega1 relief a ainst King County that absolves Bellevue of any 1�ga1 obligatian to return said g Praceeds and interest prior to the exp�ration �f the 1� working day period. ..�.. JLx�y7yZ�Vg S. Bellevue and JA�r �ities maintain that King County may only require return of Proce�ds fram a.n at-fault JAG �it . However, if there is a determ�nation that there is Y an �bli ation t� return ta King �ounty Proceeds in an amourit in excess of the am�unt . . � • • d�str�buted to an at-fault JA�r �lt�(s� then each non at-fault JA� C�ty shall pay up to the full amaunt of its Praceeds and any required interest to B�llevue within 1� : Workin days of written notiG� unless the non. at-fault JA� �ity makes other g acee table arrangements with B�llevue andlor I�ing County or the non at-fault JAG � . . . �it abtains injunctive or other 1ega1 rellef against I��ng �ounty that confrms Y B��levue has nn legal obligation ta return said Proceeds and inter�st prior t� the �x irati�n of the 1 D working day periad. If the o�ligation to return Proceeds is in p . , . . . excess of the at-fault JA�r City s d�strxbut�on, but Iess than each JAG �ity's fu�l Proceeds, the amount due King �ourity from th� non at-fault JA� C�ties sha11 be a rorated amount based �n the ercent of Proceeds received ta the total Proceeds p p minus the amount representing the at-fault JA� �ity's share. The same prorated formula sha�l app�y ta required interest due fram non at-fauit JAG �ities. 6. Should Bellevue be sued for return af praceeds s�lely because af its unique Section 12 obli ati�ns, the alleged at-fauit JA� �ity(s} shall immediately underta.ke the g defense af Bel��vue and pa� all expenses and costs (includir�g attorney's fees} associated with said defense �whether or not said JAG �ity mainta.ins it is or is ultimatel determined to be not at-fault. Shou�d I�ing �ounty be entitled ta its �' . . , attorne 's fees 1n the suit, the at-fault JAG City shal� hoid Bellevue harm�ess and y indemni Be1le�ue from any liabi�ity or �osts associated with the abl�gation to pay fY I�ing County's attorney's fees. , Should Bellevu� be the �nl arty sued based on the alleged fault of other JA� �ities, 7 �' p . those a11� �d at-fault JA�`r �it�es agree t� stipulat� to being named as def�ndants w�th � the cancurrence af Plaintiff andlor not oppose Bellevue's motion to be included in the suit as an indis ensible arty. The ob�igati�ns �f Paragraph 5 shal� apply whether or � p . . . .. . not the alleged at-fault JAG City �s named �n the Ixtlgation. S. If K�n �ount sues Bellevu� for return of proceeds because of Bellevue's alleged g Y violation of Section 12 of the JSA regarding use �f proceeds or the r��ucti�n in.ja�l o ulation a��n with other JAG �ities for their �i�lat�ons, each par�ty will undertake pp � its own defense at its own cost. 9. At-fault JA� �ities sha11 be responsible for costs of vvhatever form ar nature a ss��iated with Bellevue's unique Section 12 obligations, including but nat Iimited to staff �osts in coordinating and c�llecting proceeds or attorneys fees, and including administrative costs Bellevue incurs even where timely payment of Proceeds is made. Said costs shall be prorated amang at-fault JAG Citi�s as appropriate. 1�. In the ev�nt Bellevue in�urs liability ar casts associated with its unique Section 1 Z bli ations and said liabilit or costs axe n�t a�dressed in any other provision of this o g . Y . . A reement each JAC'r ��t shall indemn�fy, hald harm�ess and defend Be�levue ar�d g , Y _ 3 _ July 7, 2��9 its elected officials, employees agents and r�presentatives from and against any and a�� claims, demands, causes of action,liabilities, judgments, settlements, damages ar costs, inciud�ng reasonable attorney's fees af whatever forrn re�ated to Bellevue's unique Section 1� obligations in proport�on to its share of the praceeds. 11. Each JA� City shall keep its Proceeds in a segregated fund and keep recards sufficient to demonstrate that a11 e�pend�tures of the Proceeds comply w�th Se�tion 7.1 of the Interlocal Agreement. Said rec�rds shail be kept for at least 6 yeaxs from the date of the expenditure of the last Proceeds �f the JA�r �ity. 1�. The JACl �it� r�presentati�e who wi11 be respons�b�e for management and expenditure of the fund and for receiving notic�s related to the �bligations und�r 7.1 of the Int�rlacal Agreement is �inc�ude name, title, address & phone �}: a. � JAG �ity shall notify Bellevue of any cha.r�ge in this designated r�presentative ar contact informati�n. 13 . The City �f Bellevue as a recipient af $ 971,63 5.8� (r�presenting $ 979,�83 .98 -�ts proportianate share of the Pro�eedslInterest m�nus $ 7,445.1 � its proportianate shaxe of the �xpenses� is also a JA� �ity and in that capacity shal� be baund by the same terms under this Agreement as any other JAG �ity. 14. This Agreem�nt shall be authari2ed by each JAG �ity's legislative bady or other authorizing authority �f not within authority af legis�ative body. � 5. Genera� Provisions: A. �overning Law; Forum. The Agreement will be governed by the Iav�rs of �]L�ashington and its ch�i�e of law rules. The JA� �ity consents to the exc�usive personal j urisdiction an.d v�nue of the federal and state c�urts located in I�ing County, Washington, with respect t� any dispute arising out of or in cann�ction with the Agreement, and agrees nat to commence or prosecute ariy action �r proceeding axising out of or in connection with the Agreement other than in the afarementioned courts. B. S��erab�lity. If any provision af the Agreement is held to b� invalid or unenforceabi� far any reason, th� remaining pro�ision wi1l continue in full f�rce with�ut being impaired or invalidated in any way. The parties agree to r�place a.ny invalid provision with a valid provision that most cl�sely appr�ximates the intent and economic effect of the invalid provision. _ 4 _ Jul� 7, 2��9 �. Nanwaiv�r. Any fa�lure by a party to enforce strict performance of any pro�isian of the Agreement will not constitute a,wa��er of that party's right to subsequently enforce such provision or any ather provision of the Agreement. D. Na Assignment. Neither the Agreement nar any of the rights or o�ligations of the JAG City arising under the Agreement may be assigned without Belle�ue's �r��r wr�tten cvnsent. SubjeCt to the forega�ng, the Agreement wil� be binding upon, enforceable by, and inure to the benefit of, the parties and their successors . .- and assxgns. E. Not�ces. All n�tices and ather communications under the Agreement must be in writin , and must be given by registered or cert�fi�d mail, postage prepaid,� or � . . . . . delivered by hand to the party to wh�m the communzcat�on �s to be glven, at its address set forth ir� this agreem�nt. F. Lega� Fees. In any Iav�suit betv�een the parties with respect to the matters covered by the Agreement, the pre�a�ling �arty wi11 be entitled to receive its reasonabl� attarney's fees and costs incurred in the lavvsu�t, in addition t� any oth�r re�ief �t may be awarded. G �ounterparts. The Agreement may be signed in counterparts, each of which shall be d�em�d an original, and a�l af which, ta��n together, shall be deemed ane and the same dacument. In witness whereof, the parties have �xecuted this Agreement and it shall be effectiv� as of the last date written below. CITY �F AUBURN 8�,; Date: Title: CITY �F BELLEVLJE gy. Date: . Tit�e: _ � _ Ju1y 7, 2��9