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HomeMy WebLinkAboutIL1988-0138 - Original - King County Rural Library District - Property Ownership for Kent Library Sites - 12/30/1988 COOPERATIVE AGREEMENT RELATIVE TO KENT PUBLIC LIBRARY AGREEMENT made and entered into this -3U _ day of December, 1988, by and between THE KING COUNTY RURAL LIBRARY DISTRICT and the CITY OF KENT, witnesseth: 1 . The King County Rural Library District (herein called "District") is a duly organized, existing rural county library district of the State of Washington in King County. 2. The City of Kent (herein called "City") is a duly organized and existing code city in King County, Washington. 3. In order to make more efficient use of their powers, and to provide services and facilities that will best serve the needs of the population within the limits of the respective parties, the City and the District desire to expand and improve the Library which they have maintained in cooperation with each other within the City limits of Kent under an agreement originally dated October 19, 1959 pursuant to the provisions of RCW 27.12.180. In consideration of the mutual promises herein made by each party to the other, it is agreed as follows: 1 . Ownership Interest in Library Sites The District and the City have previously entered into an agreement, dated October 9, 1959, and last amended effective September 7, 1971 , whereby a library is being operated by the District in the City of Kent. The City and the District are the owners of the real property on which the present library building is located. The parties agree to construct a new library facility. The City currently owns the real property upon which it is contemplated the library building will be built. It is the intent of the parties that the City will purchase the District's interest in the existing library site and parking areas, the District will purchase one-half the City' s interest in the real property upon which the new library building will be built, and that the new - 1 - library facility shall be held by the City and the District as tenants in common with equal interests. To effectuate that transfer and ownership, both parties agree to expedite the transfer of title of properties, whereby the District will deed to the City its one-half (1 /2) ownership in all lands and properties of existing library operations, in exchange for which the District shall receive immediate title to one-half (1/2) interest in property consisting of new library site. Transfers of payments shall take place by separate but simultaneous transactions as more fully described in Paragraph 5. 2. New Facility Costs The City and the District shall each contribute fifty percent of the costs of construction, improvement and development thereon, including land acquisition, architectural and engineering services, demolition, site preparation, library construction, permits, on-site and off-site improvements such as lawn, landscaping and parking spaces with specific payment obligations as outlined below. Each party hereto agrees to jointly or singly make any applications and/or take other steps necessary to obtain any available grants or subsidies from the state or federal governments available to either party alone, or to the parties jointly, in aid of this project. Any funds received as a grant or subsidy from the federal or state government by either or both parties shall be applied directly in reduction of total capital costs, and this agreement shall be construed to require equal contribution by the parties to capital costs only in excess of grants and subsidies so received. It is further understood that the total financial commitment of both parties hereto is limited by their respective budgets, and the limitations of bond issues of the respective parties. It is expressly understood that all costs referred to herein to be shared by the parties are exclusive of any costs associated with the construction, development and maintenance of the City of Kent Kaibara Park facility; all such costs are the sole responsibility of the City of Kent. 3. Construction Monitoring The District shall assume construction monitoring for the new library. The District will advertise for bids and let the contract in its name and under its authority for the construction of the library building in the manner - 2 - required by pertinent statutes; provided, that the District and the City shall at or after the bid opening analyze construction bids received, and jointly agree on whether to award a contract or reject all bids, pursuant to which purpose the City shall provide a representative to be present at the bid opening. All plans and specifications, as well as the form of construction contract, are subject to final approval of the governing bodies of both parties which shall be given prior to advertising for bids. In the event a contract is awarded, the City shall be obliged to reimburse the District to the extent of one-half (1/2) of all sums paid pursuant to such contract, including change orders, extras or options provided in the contract, such reimbursement to be made pursuant to the procedure established in Paragraph 4 hereof. 4. Construction Costs The District shall pay the construction costs excluding land acquisition and shall bill the City for one-half (1/2) of all such expenditures. Upon receipt of proper documentation ten (10) days prior to the due date, the City shall pay to the District its one-half (1/2) share of the sums becoming due and payable on the 1st or the 15th day of the month. 5. Land Acquisition Costs a. New Library Site: The City shall pay all land acquisition costs of new library site, legally described in Exhibit A attached hereto. The District shall pay to the City one-half (1/2) of all land acquisition costs incurred by the City, in the amount of $1 ,007,179.06, to be paid as follows: The Library District upon receiving proper documentation from the City, shall reimburse the City in cash for the amounts due. b. Existing Library Site: The District and the City have determined the value of the District's interest in the existing library site and parking lots, (legally described in Exhibit B attached hereto) , to be $865,000.00. Simultaneous with - 3 - the transfer of interest described in Paragraph 5a, the City shall pay to the Library District this amount for payment in full of the District's interest. 6. Library Operations The parties intend this paragraph to govern the relative duties of each party respecting the operation of the library, as distinguished from the costs of operation and maintenance of the building in which the library is housed. The District shall continue to operate the existing facility until completion of the building contemplated by this agreement. Upon completion, the District shall operate the new library site, at such time as it becomes operable, as a public library to be known as the KENT PUBLIC LIBRARY, and in connection therewith, shall furnish all books, periodicals and necessary supplies at the sole expense of the District, employ a librarian and necessary assistants, and provide trained supervision equal to standards maintained by the District in other facilities operated by it, and pay salaries or wages of all such personnel . Such personnel shall be employees of the District and under the direction of the District, and not the City. Books will be allocated, regulations established and the library operation conducted by the District, and not the City. In payment of the services so provided by the District under this paragraph, the City shall pay to the District each year during the life of this agreement, for the year in which the service is rendered, payment according to the following formula: The contract rate for library service shall be determined by adding 6% to the previous year' s contract rate and adding additional fees for new construction and annexed assessed value added to the City's tax rolls for the contract year. The new construction portion of the fee shall be computed by dividing the current year's New Construction Assessed Value in the City by $1000 and multiplying the quotient by the product of the ratio of the City's previous year's levy rate divided by the City' s maximum levy rate to the District's maximum levy rate of $.5; the fee for Annexed Assessed Value added to the City's tax rolls shall be computed by dividing the Annexed Assessed Value by $1000 and multiplying the quotient by the product of the ratio of the City's current year's levy rate divided by the City' s maximum levy rate to the District' s maximum levy rate of $.5. [Total formula: ( (Previous year's levy rate * 1 .06) + ( (New Construction AV/1000) - 4 - ( (City's Previous Year's Rate/City's Maximum Rate) * $.5)) + ( (Annexed Assessed Value/1000) * (City's current levy rate/City 's Maximum Levy Rate) $.5)) .] The annual contract fee shall be remitted to the District in two equal payments due June 15 and December 15 of the following year. Written notice of any proposed changes to this rate schedule shall be delivered to the other party no later than June 1st of any year, for the proposed rate changes to be effective January 1st of the next year. 7. Library Maintenance The parties intend this paragraph to govern the duty of providing, as between the parties, the operation and maintenance of the facility, as distinguished from the duty of paying the costs thereof, the latter being covered by Paragraph 8. The City shall provide all maintenance, repairs and services required to operate the library facility except those costs provided under Paragraph 6 to be paid by the District, including, but without intending to limit the generality of the obligations, the following: maintenance and repairs of the building, heat, lights, power, gas, ventilation, water, sewer and garbage and janitorial services, insurance, except as specified herein below, ventilation maintenance and repairs, painting of interior and exterior of the building when deemed required by mutual agreement of the parties, plumbing repairs, maintenance of grounds and parking areas including lawns and shrubbery, window cleaning, fire extinguishers and janitorial supplies, and maintenance and replacement of lamps and tubes. Replacement and/or repairs of major damage to structural members, walls, ceiling and roof, and/or the cost of insuring against damage thereto, are not included under this paragraph as an obligation of the City to provide, but shall be governed by the co-equal ownership of the facility and shall be subject to the mutual agreement of the parties in the event major replacements or repairs are required. It is expressly understood that all costs referred to herein to be shared by the parties are exclusive of any costs associated with the construction development and maintenance of the City of Kent Kaibara Park Facility; all such costs are the sole responsibility of the City of Kent. - 5 - 8. Maintenance Payment The District shall contribute to the City one-half (1/2) of the cost expended by the City pursuant to its obligations under Paragraph 7, on a monthly basis, based on billings from the City. 9. Termination This agreement shall be in full force and effect when executed by the District and the City, until the same shall be terminated. This agreement may be terminated at the end of any calendar year by either party giving written notice of such termination on or before October 1st of such calendar year, and if such notice is not given, this agreement shall be in full force and effect for the following calendar year and until terminated as provided for herein. Notwithstanding any termination, this agreement shall remain in effect for so long and to the extent necessary to maintain and operate the library facility until disposition of the facility is effected. 10. Designation of Liability The District agrees to protect and save the City of Kent, its elected and appointed officials and employees, while acting within the scope of their duties, harmless from and against all claims, demands and cause of action for damage to any person or property, including attorney fees and costs of defense arising out of any activity of the District pursuant to this agreement or where any claim, damages or cause of action arises out of any act or omission of the District, its trustees, officers or employees, provided that the City agrees to protect and save harmless the District, its trustees, officers and employees, while acting within their scope of duty, from all claims, demands or causes of action not covered by the preceding clause, including attorney fees and costs of defense thereof; PROVIDED FURTHER that where damage or injury is caused in part by both the District, its trustees, officials or employees, while acting within the scope of their duty and the City, its elected or appointed officials or employees while acting within the scope of their duty, neither the District or the City shall hold the other harmless. - 6 - PROVIDED FURTHER that where the liability of the parties is not otherwise expressly agreed to herein, the parties shall be jointly responsible for the defense of said claims, causes of actions or demands including attorney fees and costs of defense thereof. 11 . Documentation Each party agrees to provide the other with all documents, records, vouchers, invoices or true copies thereof, to support any claim or right of contribution one party claims against the other party hereto. 12. Option to Purchase Each Party hereby grants to the other Party an irrevocable option to purchase the interest of the Party at any time. In the event one Party desires to exercise this option, it shall give written notice to the other Party of its intention, by March 1st of any year, for purchase to take place within that calendar year. The purchase price and all other terms shall be governed by the provisions of Paragraph 13. The option to purchase shall only be exercised by one of the parties in conformance with the conditions contained in Paragraph 13. 13. Option Restrictions The Option to Purchase described in Paragraph 12 shall be exercised by a party to this agreement only upon the occurrence of one of the following described events: - The District elects to terminate its operations of the Library facility; or - This interlocal library facility is to be replaced by another library facility jointly owned, operated, and maintained by the City and the District; or - The parties are in agreement that the option shall be exercised by a party. - 7 - 14. Option Terms If one Party elects to purchase the interest of the other Party pursuant to the provisions of Paragraph 12, the purchase price shall be determined in accordance with this Paragraph 14 except that there shall be subtracted from the price which would otherwise be required to be paid, all state or federal grants in aid of the project, the intention being that the selling Party would receive the fair market value of its one-half (1/2) interest in the project less the amount of state or federal contribution to its one-half (1/2) interest. Upon receipt by a party of notice of the other party' s intention to exercise the option contained in Paragraph 12, the Parties agree to accept as binding an appraisal to be conducted by a qualified MAI approved agency selected by both parties for the purchase price of the library facility. Terms of the purchase, closing date and all other conditions pertaining to the sale of the interest shall be concluded by negotiated agreement between the parties. 15. Future Annexation to Library District In the event the City elects to annex into the Library District, settlement of the terms of one party's buy out of the other party's interest in the library site, land, facility, operations and maintenance shall be negotiated between the parties. Such negotiations may or may not include the exercise of the option to purchase by one party as provided in Paragraph 14. 16. Amendments to Agreement This agreement may be amended in any particular by following the procedure used for the adoption of this agreement. IN WITNESS WHEREOF the said Board of Trustees of King County Library District, and the duly authorized officers of said City have caused their presents to be executed on the day and year in this agreement first above written. - 8 - CITY OF KENT By DAN KELLEHER, Mayor ATTEST: ari e e e City Clerk THE BOARD OF TRUSTEES KING COUNTY RURAL LIBRARY DISTRICT By: Lorraine Scott Nixon, President 4246L-18L - 9 - "EXHIBIT A" PARCEL A: Beginning at the northeast corner of block 4, Yesler' s first addition to the town of Kent, according to the plat thereof recorded in Volume 5 of plats, page 64, in King County, Washington; Thence west along the north line of said block 4, a distance of 256 feet to the northwest corner of said block 4; Thence south 1 degrees 58' west along the west line of said block 4, a distance of 391 .42 feet; Thence south 89 degrees 27' east 112.01 feet; Thence north 89 degrees 22' east 3.04 feet; Thence north 1 degrees 58' east 107.11 feet; Thence east 141 .96 feet, more or less, to the east line of said block 4; Thence north 1 degrees 58' east along the east line of said block 4, a distance of 285.29 feet, more or less, to point of beginning; except the south 7.5 feet of the west 115.05 feet thereof. PARCEL B: That portion of block 4, Yesler' s first addition to Kent, according to the plat thereof recorded in Volume 5 of plats, page 64, in King County; Washington, described as follows: Beginning at the southeast corner of block 4 of Yesler' s first addition to Kent, Washington; Thence north 1 degrees 58' east along the east line of said block 4 114.11 feet to the true point of beginning; Thence continuing northl degrees 58' east along the east line of said block 4 80.6 feet; Thence west 141 .96 feet; Thence south 1 degrees 58' west 107.11 feet; Thence north 89 degrees 22' east 17.01 feet; Thence north 88 degrees 04' east 20.15 feet; Thence north 85 degrees 33' east 20.22 feet; Thence north 81 degrees 53' east 20.24 feet; Thence north 77 degrees 38' east 20.30 feet; Thence north 72 degrees 58' east 20.37 feet; Thence north 68 degrees 03 ' east 20.33 feet; Thence north 63 degrees 47' east 8.01 feet to the point of beginning; less the south 7.5 feet of said tract. 4246L-18L - 10 - "EXHIBIT B" The west 88 feet of lot 7 and west 88 feet of the north half of lot 8, block 8, Yesler's first addition to the town of Kent, according to plat recorded in Volume 5 of plats, page 64, in King County, Washington. The south half of lot 8 and all of lot 9, block 8, Yesler's first addition to the town of Kent, according to plat recorded in Volume 5 of plats, page 64, in King County, Washington. That portion of block 13 together with that portion of vacated alley lying within said block, All in Yesler's 1st addition to Kent, recorded in Volume 5 of plats, page 64, King County, Washington. Beginning at the intersection of South 4th Avenue on West Titus Street; thence north 01 °39'33" east along the center line of South 4th Avenue a distance of 174.63 feet; thence north 88°20 '27" east a distance of 33 feet to the west line of said block being the true point of beginning of property herein described; thence continuing north 88020 '27" east a distance of 76 feet; thence south 01 °39'33" west a distance of 24 feet; thence north 88020'27" east to a point on the east line of said block; thence south along said east line to the southeast corner of said block; thence west along the south line of said block to the southwest corner thereof; thence north along the west line of said block a distance of 140.50 feet to the true point of beginning. 4246L-18L - 11 - Library Construction Project 3327 28-Dec-88 Library Project Costs Purchase of Cold Storage Building Sub Total Total 1/2 Interest 4292 Legal Advertising JE 09-706 14.34 4292 Legal Advertising JE 11-361 115.20 4760 Removal of Debris JE 08-717 89.59 6100 Land, Insur, Escrow & Fees JE 06-260 1,994,539.39 6100 Appraisal (EASTMAN) JE 09-706 * 3,000.00 6100 Earnest Money Po 40202 10,000.00 6100 Refund (Chicago Title) TR 71809 (4.00) Sub Total 2,007,754.52 4190 Appraisal of Old Library PO 40163 6,603.60 6,603.60 2,014,358.12 1,007,179.06 Ammonia Leak at Cold Storage Plant 1100 Wages JE 10-713 659.07 1300 Wages PT JE 10-713 45.00 1500 OT Wages JE 10-712 7,936.25 1500 OT Wages JE 10-713 125.74 2100 Social Security JE 10-712 16.80 2100 Social security JE 10-713 62.23 2200 Retirement JE 10-712 341.05 2200 Retirement JE 10-713 36.87 3230 Subsistence JE 10-708 493.49 3290 Other Operating Supplies JE 10-708 145.71 3500 Sm Tool & Equipment JE 10-708 4.39 4190 Other Professional ServicesJE 10-708 27.03 4510 Equipment Rental Outside JE 10-708 54.05 Sub Total 9,947.68 4,973.84 Ground Breaking Ceremony & Miscellaneous Charges 3230 Cake & Supplies PO 47614 34.79 3230 Coffee & Punch PO 47622 81.07 4330 Library Meeting (2/3/88) PO 40154 35.51 Sub Total 151.37 75.69 Total Paid By City 2,017,853.57 Due to City from KCLS (1/2) 1,008,926.79