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Skagit County Auditor
INTERLOCAL AGREEMENT 11114/2002 Page 1 of 8 11:07AM
BETWEEN SKAGIT COUNTY AND THE CITY OF ANACORTES
FOR PUBLIC FACILITY PROJECT FUNDING PURSUANT TO RCW 82.14.370
MARCH POINT PROPERTY INFRASTRUCTURE IMPROVEMENTS
THIS INTERLOCAL AGREEMENT is entered into this (n1ff, day of November
2002 between Skagit County, Washington(the "County"), and the City of Anacortes (the"City"
or"Project Manager")pursuant to the authority granted by Chapter 39.34 RCW, INTERLOCAL
COOPERATION ACT.
WHEREAS,the County is authorized by RCW 82.14.370 and Laws of 1999, chapter
311 (collectively,the "Act")to impose a sales and use tax not to exceed eight one-hundredths of
one percent(0.08%)for the purpose of financing public facilities in the County(the "Tax"); and
WHEREAS,the County imposed the Tax at the maximum statutory rate pursuant to
Ordinance No. 17478, adopted by the Board of Skagit County Commissioners on June 21, 1999;
and
WHEREAS, the Act authorizes the County to deduct the amount of the Tax from the
amount of tax otherwise required to be collected or paid over to the Department of Revenue
under Chapter 82.08 or 82.12 RCW; and
WHEREAS, the County has relied on the Legislature's express intent that the County
impose the Tax and use it to finance public facilities for not longer than 25 years to promote the
ongoing operation and expansion of business in rural distressed areas, to attract new businesses
to rural distressed areas, to assist in the development of new businesses from within rural
distressed areas,to provide family wage jobs to the citizens of rural distressed areas and to
promote the development of communities of excellence in rural distressed areas; and
WHEREAS, the County has consulted with cities, towns and port districts within the
County regarding the use of Tax proceeds; and
WHEREAS, an advisory committee appointed by the County convened on February 6,
2002 and reviewed 1 project application for public facility funding,the aggregate sum of which
was$165,000; and
WHEREAS, the advisory committee recommended 1 project application for funding
totaling$165,000; and
WHEREAS, the advisory committee has recommended the specific proposal,the "Port
of Anacortes—March Point Property Infrastructure Improvements"(the"Project"), described
herein for funding totaling$165,000; and
SKAGIT COUNTY
Contract# C20020400
Page 1 of 1
Interlocal Agreement—March Point Property Infrastructure Improvements
Skagit County and City of Anacortes
Page 2
WHEREAS, the recommendation for approval of the Project has been adopted by the
Board of Skagit County Commissioners pursuant to Resolution No. R20020044, dated February
11, 2002; and
WHEREAS, the County and the City, by their respective governing bodies, have
determined that it is in the best interest of each jurisdiction to cooperate in disbursing Tax
proceeds received by the County pursuant to the Act; and
WHEREAS, pursuant to the Interlocal Cooperation Act (Chapter 39.34 RCW),the
County,the Port, and the City are authorized to exercise their powers jointly and thereby
maximize their abilities to provide services and facilities which will best fulfill common needs;
and
WHEREAS,the Project is included in the City of Anacortes comprehensive plan, as
adopted by Ordinance No. 2557 by the City of Anacortes on May 21, 2001.
NOW,THEREFORE,in consideration of the mutual covenants contained herein,the.
County and the City agree as follows:
AGREEMENT
1. Effective Date/Duration:
This Agreement shall become effective on September 1, 2002, and shall expire upon the
completion of the Project. Work on the project shall commence within G0 days of the
effective date of this Agreement and shall be substantially complete by January 31, 2003.
For the purposes of this paragraph, the term "substantially complete" shall have the same
meaning as that defined in the latest edition of the State Department of Transportation's
Standard Specifications for Road, Bridge, and Municipal Construction. Upon the
termination of this Agreement, all property acquired by the City shall remain the City's
property, with no obligation to pay the County therefore.
2. Administration: The following individuals are designated as representatives of the
respective parties. The representatives shall be responsible for administration of this
Agreement and for coordinating and monitoring performance under or greater than this
Agreement. In the event such representatives are changed, the party making the change
shall notify the other party.
2.1 The County's representative shall be the Budget and Finance Director:
Bradley M. Whaley,Finance Director
Skagit County
700 South Second,Room 202
Interlocal Agreement-March Point Property Infrastructure Improvements
Skagit County and City of Anacortes
Page 3
Mount Vernon, WA 98273
2.2 City's representative shall be the City Public Works Director:
Bob Hyde, Public Works Director
City of Anacortes
PO Box 547
Anacortes, WA 98221
All notices and payments mailed by regular post (including first class) shall be deemed to
have been given on the second business day following the date of mailing, if properly
mailed and addressed. Notices and payments sent by certified or registered mail shall be
deemed to have been given on the day next following the date of mailing,if properly mailed
and addressed. For all types of mail, the postmark affixed by the United States Postal
Service shall be conclusive evidence of the date of mailing.
3. Purpose:
The purpose of this Agreement is to formalize a commitment whereby the County will
allocate to the City, acting as Project Manager for the Port, the sum specified herein, and
whereby the City will complete the Project (as defined below)upon the terms and
conditions described herein.
The Project will complete the design and installation of the necessary infrastructure
improvements to site T Bailey,Inc., a local manufacturer, at the March Point property.
The necessary infrastructure improvements to support this new business will include
extending the sewer line east along South March Point Road to the property. Additional
improvements may include providing water service to the property, completing an
entrance road, associated storm drainage, and upgrading the existing electrical capacity,
all for which the level of completion will be dependent on the balance of funds remaining
in the $255,000 project budget.
4. Construction:
The City agrees to design, construct and complete the Project described herein. The
County shall have no responsibility for the design or construction of said project and the
City shall have the authority to determine its design,construction, location, acquisition of
easements and rights of way, and to enter into partnerships, contracts, or other legal
arrangements with potential investors and/or users thereof to assist in financing and/or
construction and permitting, in the manner allowed by law.
Interlocal Agreement—March Point Property Infrastructure Improvements
Skagit County and City of Anacortes
Page 4
5. Grant Amount/Project Reimbursement/Budget:
The County agrees to grant$165,000 towards the total project cost estimated at $255,000,
representing approximately 65%of the total project cost. Said Project is reasonably
expected to be completed on or about January 31, 2003.
The Port of Anacortes and the City of Anacortes will jointly provide the remaining 35%
or$90,000 of estimated project costs. The Port's committed funds of$65,000 will be
transferred to the City upon execution of a separate Interlocal Agreement between the
Port and the City.
This grant will be administered by the City, acting as Project Manager for the Port.
Progress payments submitted by the City to the County for reimbursement of project costs,
shall be based upon progress billings. When required,the County shall upon receipt of
appropriate documentation,reimburse the City,no more often than monthly,through the
County voucher system
Actual construction costs will be based upon contracts let for public bid pursuant to law.
The Port, in conjunction with the City,has developed a budget for said project attached
as Exhibit A. The City will maintain the budget and will account for all expenditures
made for the Project. The City hereby warrants and guarantees that said Project shall be
completed as described herein not withstanding any cost overruns incurred in the course
of design or construction.
6. Right to Review:
This contract is subject to review by the State auditor's office. The County or its designee
shall have the right to review and monitor the financial components of this Project. Such
review may include,but is not limited to,on-site inspection by County agents or employees,
inspection of all records or other materials, which the County deems pertinent to the
Agreement and its performance. The City shall preserve and maintain all financial records
and records relating to this Project under this Agreement for 3 years after contract
termination, and shall make them available for such review, within Skagit County, State of
Washington, upon request.
7. Modifications:
This Agreement may be modified only by the written consent of each party.
8. Defense&Indemnity Agreement:
The City agrees to defend, indemnify and save harmless the County, its appointed and
elected officers and employees, from and against all loss or expense, including but not
limited to judgments, settlements, attorney's fees and costs by reason of any and all claims
and demands upon the County, its elected or appointed officials or employees for damages
because of personal or bodily injury, including death at any time resulting therefrom,
sustained by any person or persons and on account of damage to property including loss of
Interlocal Agreement—March Point Property Infrastructure Improvements
Skagit County and City of Anacortes
Page 5
use thereof,whether such injury to persons or damage to property is due to the negligence of
the Port or City, its subcontractors, its elected officers, employees or their agents, except
only such injury or damage as shall have been occasioned by the sole negligence of the
County, its appointed or elected officials or employees. It is further provided that no
liability shall attach to the County by reason of entering into this contract, except as
expressly provided herein.
9. Industrial Insurance Waiver:
With respect to the performance of this Agreement and as to claims against the County, its
officers,agents and employees,the City expressly waives its immunity under Title 51 of the
Revised Code of Washington, the Industrial Insurance Act, for injuries to its employees and
agrees that the obligations to indemnify, defend and hold harmless provided in this
Agreement extend to any claim brought by or on behalf of any employee of the City. This
waiver is mutually negotiated by the parties to this Agreement.
10. Venue and Choice of Law:
In the event that any litigation should arise concerning the construction or interpretation of
any of the terms of this Agreement, the venue of such action of litigation shall be in the
Superior Court of the State of Washington in and for the County of Skagit. This Agreement
shall be governed by the laws of the State of Washington.
11. No Separate Legal Entity:
It is not the intention that a separate legal entity be established to conduct this cooperative
undertaking. For purposes of RCW 39.34.030(4)(a),the City of Anacortes' Public Works
Director shall administer the Project.
12. Severability:
If any term or condition of this Agreement or the application thereof to any person(s) or
circumstances is held invalid, such invalidity shall not affect other terms, conditions or
applications which can be given effect without the invalid term,condition or application. To
this end,the terms and conditions of this Agreement are declared severable.
13. Waiver:
Waiver of any breach or condition of this contract shall not be deemed a waiver of any prior
or subsequent breach. No terms or conditions of this contract shall be held to be waived,
modified or deleted except by an instrument, in writing,signed by the parties hereto.
14. Entire Agreement:
This written Agreement represents the entire Agreement between the parties and supersedes
any prior oral statements,discussions or understandings between the parties.
Interlocal Agreement—March Point Property Infrastructure Improvements
Skagit County and City of Anacortes
Page 6
IN WITNESS WHEREOF, the parties have signed this Agreement as of this 121 .."-day
of November 2002.
BOARD OF COUNTY COMMISSIONERS
SKAGIT COUNTY, WASHINGTON
Chairman
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Kenneth A. Dahlstedt, Commissioner
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on Muuks, Commissioner
'1"-L--D co. 63-tpdri
CITY OF ANACORTES
P 0 Box 547
Anacortes, WA 98221-0547
(360) 293-1919
AP.L. akij
Dean Maxwell, M or
s to content
4
ES14"F sib
RE: Indemnification and Insurance
Risk Manager
Manager
APPROVED AS TO FORM:
Ae-N1 I
Deputy Civil itigator
. ,
• Interlocal Agreement—March Point Property Infrastructure Improvements
• Skagit County and City of Anacortes
Page 6
IN WITNESS WHEREOF, the parties have signed this Agreement as of this day
of November 2002.
BOARD OF COUNTY COMMISSIONERS
SKAGIT COUNTY,WASHINGTON
Don Munks, Chairman
Kenneth A. Dahl dt, Commissioner
Ted An rson, Commissioner
CITY OF ANACORTES
P 0 Box 547
Anacortes,WA 98221-0547
(360)293-1919
Dean Maxwell,Mayor
"ROVED: As to content
Finance P ector
RE: Indermu cation and Insurance
Risk Manager
APPROVED AS TO FO :
Deputy Civil Litigator
Interlocal Agreement—March Point Property Infrastructure Improvements
Skagit County and City of Anacortes
EXHIBIT A/PROJECT BUDGET
Construction $198,000
Design and Project Supervision $47,000
Contingencies/Extra Work $10,000
Total $255,000