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HomeMy WebLinkAboutPort of Port Townsend New Rental Agreement 333 Benedict Street - 091426 PORT OF PORT TOWNSEND BOAT HAVEN BUILDING RENTAL AGREEMENT THIS RENTAL AGREEMENT made this day of September 2026, by and between the PORT OF PORT TOWNSEND, a municipal corporation organized and existing under the laws of the State of Washington, Landlord, hereinafter referred to as "the Port," and JEFFERSON COUNTY, a municipal corporation organized and existing under the laws of the State of Washington, hereinafter referred to collectively as "Tenant," WITNESSETH: FOR AND IN CONSIDERATION of the mutual promises,covenants, and conditions hereinafter set forth,the parties agree as follows: 1. PREMISES: The Port hereby rents to Tenant, and Tenant hereby hires and rents from the Port,the following described premises situated in Jefferson County, State of Washington: A 1,350 square foot (approx.) commercial office building, commonly referred to as the "Commission Building",together with 143 square feet of appurtenant building access areas(ramp, stairs, and decks), located at 333 Benedict Street, Port Townsend, WA, in the Port's Boat Haven facility, hereinafter referred to as"the Premises." The Premises are depicted on Exhibit "A"which is attached hereto and which by this reference is incorporated herein as if fully set forth herein. 2. TERM: This Agreement shall be for a month-to-month tenancy, beginning on the 15t of October 2026. 3. RENT: a. Tenant agrees to pay as rental for the rented premises the sum of Two Thousand and Two Hundred and Sixty Dollars and Ninety-Nine Cents($2,260.99)1, plus all applicable taxes, per month. b. The rental rate beginning in year two (2) and annually throughout the term of the lease will be adjusted by an amount equal to the accumulative amount found on the Consumer Price Index for all urban consumers (CPI-U) for Seattle-Tacoma-Bellevue, which is compiled by the Department of Labor, Bureau of Statistics. c. In no event shall any rent adjustment result in a reduction in rent from the rate paid in the prior year. Calculated as follows:building space @ $1.64 per s.f.x 1,350=$2,213.36;land @$0.33 per sq.ft.x 143=$47.63; $2,213.36+$47.63=$2,260.99. PORT/JEFFERSON COUNTY 1 SEPTEMBER 2026 BOAT HAVEN BUILDING RENTAL TENANT INITIALS d. The rent for each month shall be paid to the Port in advance on or before the first day of each and every month of the lease term and shall be payable at such place as the Port may hereinafter designate 4. LATE CHARGE: In the event that any rent remains unpaid more than twenty(20)days after it is due,Tenant shall also be obligated to pay a "late charge" as per the Port of Port Townsend Rate Schedule then in effect. 5. DEPOSIT: Tenant shall deposit with the Port at the inception of this agreement,one-month's security in the amount of Two Thousand and Two Hundred and Sixty Dollars and Ninety- Nine Cents($2,260.99). Tenant has an existing deposit of One Thousand Seven Hundred Sixty-Five Dollars and Eighteen Cents($1,765.18),therefore Four Hundred and Ninety-Five Dollar and Eighty-One Cents ($495.81)2 will be deposited upon the execution of this Agreement.The deposit shall be held by the Port as security for Tenant's faithful performance of all its obligations under this Rental Agreement. Any interest earned on amounts deposited shall be retained by the Port. The deposit shall be returned to Tenant upon termination of this Rental Agreement, less any charges owing to the Port or expenses incurred by the Port in repairing damage caused by Tenant or restoring the Premises to the condition required upon termination of this Rental Agreement. 6. USE OF PREMISES: Tenant shall use the premises for government-related general office function and shall not use them for any other purpose without the prior written consent of the Port. Tenant shall use the entire premises for the conduct of said activity in a first-class manner continuously during the entire term of this Agreement,with the exception of temporary closures for reasons beyond Tenant's reasonable control. 7. CONDUCT COVENANTS AND WARRANTIES: In addition to all other covenants and warranties set forth herein,Tenant specifically represents to the Port as follows: a. Quiet Conduct. The conduct of Tenant and such others for whom Tenant is responsible shall not, in any manner,disturb the quiet enjoyment of other tenants, invitees,or visitors, in or near where the Premises are located, including common areas. b. Damage. The conduct of Tenant and such others for whom Tenant is responsible shall not result in or cause destruction or damage to the Premises, or any part thereof including, but not limited to any and all common areas,or the property of other tenants,their invitees,and visitors. 8. UTILITIES: Tenant shall be liable for and shall pay throughout the term of this Rental Agreement,all utility services furnished to the Premises, including, but not limited to light, heat, electricity,gas,water,sewerage,stormwater, garbage disposal, and communications. Wi-Fi and/or fiber services are not included in the rent. 2 Calculated as follows:$2,260.99-$1,765.18=$495.81 PORT/JEFFERSON COUNTY 2 SEPTEMBER 2026 BOAT HAVEN BUILDING RENTAL TENANT INITIALS 9. ACCEPTANCE OF PREMISES: Tenant has examined the Premises and accepts them in their present condition "as is"and without further maintenance liability on the part of the Port. The Port makes no representations or warranties with respect to the condition,suitability, zoning restrictions,or usability, except the Port's right to grant a lease of the Premises. Tenant acknowledges that it has fully inspected the Premises and is not relying on any statement or representation made by the Port or the Port's agents with respect to the condition of the Premises, and Tenant assumes the responsibility and risks of the same, including any defects or conditions that cannot be observed by casual inspection. 10. WAIVER OF LANDLORD LIABILITY: The Port shall not be liable to Tenant for any loss or damage which may be sustained by Tenant or to the person or goods, wares, merchandise or other property of Tenant, Tenant's employees, contractors, invitees, customers,or any other person in or about the Premises from any cause whatsoever, including, but not limited to,the following: any loss or damage from any burst, stopped or leaking water, gas, sewer or other pipes or plumbing fixtures or equipment; stormwater system pump failures; or from any failure of or defect in any lighting or electrical components, circuits, facilities or systems, whether said injury or damage results from conditions arising upon the Premises or upon other portions of the Building of which the Premises are a part, from other sources or places, and regardless of whether the cause of such damage or injury or the means of preparing the same is accessible or not. The Port shall not be liable for any damages arising from any act or neglect of any other tenant of the Port nor from the failure by the Port to enforce the provisions of any other lease in the Boat Haven Industrial Park. Notwithstanding the Port's negligence or breach of this Lease, the Port shall under no circumstances be liable for injury to Tenant's business or for any loss of income or profit therefrom. 11. MAINTENANCE AND REPAIR: Maintenance and repair of the premises shall be the sole responsibility of Tenant. Accordingly, at the expiration or sooner termination of this Agreement,Tenant shall return the premises to the Port in the same condition in which received (or,if altered by Tenant with the Port's consent,then the premises shall be returned in such altered condition), reasonable wear and tear and damage by fire or unavoidable casualty excepted. Tenant's obligation to make repairs shall not extend to any structural parts of the building, including the foundations, bearing and exterior walls, subflooring and roofs,the unexposed electrical, plumbing and sewerage systems (including those portions of the systems lying outside the premises), exterior siding, doors, window frames, gutters, downspouts, and the heating, and the ventilation system serving the premises, unless such repairs are necessitated by Tenant's negligence or failure to maintain the interior. Tenant shall,at its'own expense, and at all times: a. Keep the premises, and the adjoining roadways and sidewalks, neat, clean and in a safe and sanitary condition. b. Maintain and keep the rented premises in a good state of repair;and PORT/IEFFERSON COUNTY 3 SEPTEMBER 2026 BOAT HAVEN BUILDING RENTAL TENANTUNITIALS c. Not commit waste of any kind. 12. ALTERATIONS AND IMPROVEMENTS: Tenant shall make no alterations or improvements to or upon the Premises or install any fixtures(other than trade fixtures which can be removed without injury to the Premises)without first obtaining written approval from the Executive Director of the Port. Such written approval shall also include agreement for disposition of the improvements upon termination of this Rental Agreement. 13. INSPECTION-"FOR RENT"SIGNS: The Port reserves the right to inspect the rented Premises at any and all reasonable times throughout the term of this Rental Agreement, PROVIDED, that it shall not interfere unduly with Tenant's operations. The right of inspection reserved to the Port hereunder shall impose no obligation on the Port to make inspections to ascertain the condition of the Premises and shall impose no liability upon the Port for failure to make such inspections. The Port shall have the right to place and maintain "For Rent" signs in conspicuous places on the Premises for thirty(30)days prior to the expiration or sooner termination of this Rental Agreement. 14. INDEMNIFICATION AND HOLD HARMLESS: The Port, its employees and agents shall not be liable for any injury(including death)to any persons or for damage to any property, regardless of how such injury or damage be caused, sustained,or alleged to have been sustained by the Tenant or by others as a result of any condition (including existing or future defects in the Premises)or occurrence whatsoever related in any way to the Premises and the areas adjacent thereto or related in any way to Tenant's use or occupancy of the Premises and of the areas adjacent thereto. Tenant agrees to defend and to hold and save the Port harmless from all liability or expense of litigation) in connection with any such items of actual or alleged injury or damage. 15. LIMITED WAIVER OF IMMUNITY UNDER WASHINGTON STATE INDUSTRIAL INSURANCE ACT,TITLE 51 RCW AND OTHER SIMILAR INDUSTRIAL INSURANCE SCHEMES: For purposes of the indemnification provision set forth in Paragraph 14, above, and only to the extent of claims against Tenant by the Port under such indemnification provision, Tenant specifically waives any immunity it may be granted under the Washington State Industrial Insurance Act,Title 51 RCW,The United States Longshore and Harbor Workers Compensation Act, 33 USC§901-950,or any other similar workers' compensation schemes. The indemnification obligation under this lease shall not be limited in any way by any limitation on the amount or type of damages, compensation or benefits payable to or for any third party under workers' compensation acts, disability benefit acts,or other employee benefit acts. The foregoing provision was specifically negotiated and agreed upon by the parties hereto. PORT/JEFFERSON COUNTY 4 SEPTEMBER 2026 BOAT HAVEN BUILDING RENTAL TENANT INITIALS 16. INSURANCE: Tenant agrees to maintain during the lease term liability insurance as set forth below, at Tenant's sole expense. All such insurance shall name the Port of Port Townsend as an additional insured and shall be with insurance companies acceptable to the Port. a. Comprehensive General Liability Insurance against claims for injury or death to persons or damage to property with minimum limits of liability of$1,000,000.00 combined single limit for each occurrence. Such insurance shall include but not be limited to bodily injury liability,personal injury liability, property damage liability, broad form property damage liability,contractual liability, and products/completed operations liability. b. Workers Compensation Insurance as will protect tenant's employees from claims under Washington Workers Compensation Act as well as all Federal Acts applicable to the tenant's operations at the site such as but not limited to U.S. Longshoremen and Harborworkers Act,Jones Act, and Federal Employers Liability section of the Washington Workers Compensation Policy and all Federal Acts Insurance shall not be less than $1,000,000.00 for each occurrence. The Tenant agrees to supply the Port with appropriate evidence to establish that its insurance obligations have been met, and that the insurance policy or policies are not subject to cancellation without at least thirty(30)days advance written notice to the Port. The conditions set forth in subparagraphs a, b and c of this Paragraph 16 shall be met prior to inception of this Lease Agreement. 17. WAIVER OF SUBROGATION: The Port and Tenant hereby mutually release each other from liability and waive all right of recovery against each other for any loss from perils insured against under their respective fire insurance contracts, including any extended coverage endorsements thereto, PROVIDED,that this Paragraph 17 shall be inapplicable if it would have the effect,but only to the extent that it would have the effect,of invalidating any insurance coverage of the Port or Tenant. 19. INCREASE IN COST OF INSURANCE: Tenant shall not use the demised Premises in such a manner as to increase the existing rates of insurance applicable to the buildings or structures of which the Premises are a part. If it nevertheless does so,then, at the option of the Port, the full amount of any resulting increase in premiums paid by the Port with respect to the buildings or structures of which the rented Premises are a part, and to the extent allocable to the term of this Rental Agreement, may be added to the amount of rental hereinabove specified and shall be paid by Tenant to the Port upon the monthly rental day next thereafter occurring. 20. TAXES: Lessee shall be liable for, and shall pay throughout the term of this Lease, all license and excise fees and occupation taxes covering the business conducted on the premises, and all taxes on property of Lessee on the leased premises and any taxes on the leased premises or leasehold interest created by this Lease Agreement. PORT/JEFFERSON COUNTY 5 SEPTEMBER 2026 BOAT HAVEN BUILDING RENTAL TENANT INITIALS 21. COMPLIANCE WITH PORT REGULATIONS AND WITH ALL LAWS: Tenant agrees to comply with all applicable rules and regulations of the Port pertaining to the building or other realty of which the Premises are a part now in existence or hereafter promulgated for the general safety and convenience of the Port,its various tenants, invitees,licensees, and the general public. Tenant also agrees to comply with all applicable federal,state,and municipal laws, ordinances, and regulations. Tenant further agrees that all buildings,structures,or other improvements,approved by the Port,will be properly permitted by the City of Port Townsend. Any fees for any inspection of the Premises during or for the lease term by any federal,state,or municipal officer and the fees for any so-called "Certificate of Occupancy" shall be paid by Tenant. 22. ASSIGNMENT OR SUBLEASE: The tenancy created hereby is personal to Tenant and may not be assigned, nor may the premises be sublet,to any other party. 23. SIGNS: No signs or other advertising matter,symbols,canopies,or awnings shall be attached to or painted or within the rented Premises,including the windows and doors thereof, without the approval of the Executive Director of the Port first had and obtained. At the termination or sooner expiration of this Rental Agreement,all such signs, advertising matter, symbols,canopies,or awnings attached to or painted by Tenant shall be removed by Tenant at its own expense,and Tenant shall repair any damage or injury to the Premises,and correct any unsightly condition, caused by the maintenance and removal of said signs,etc. 24. DEFAULTS-TERMINATION: a. Time is of the essence of this Agreement. In the event of the failure of Tenant to pay the rental amount plus late charges as specified under Paragraphs 3 and 4,above,this Rental Agreement shall automatically terminate,and the Port shall reenter and take possession of the premises with or without due process of law. b. In the event of the failure of Tenant to keep any of the covenants or agreements herein set forth that are unrelated to payment of rent or late charges specified under paragraphs 3 and 4, above,the Port may elect to terminate this Agreement and reenter and take possession of the premises with or without process of law, PROVIDED,however,that Tenant shall be given fifteen (15)days' notice in writing stating the nature of the default in order to permit such default to be remedied by Tenant within said fifteen (15)day period. If upon reentry by the Port there remains any personal property of Tenant or of any other person upon the rented premises,the Port may,but without the obligation so to do, remove said personal property and hold it for the owners thereof or may place the same in a public garage or warehouse, all at the expense and risk of the owners thereof, and Tenant shall reimburse the Port for any expense incurred by the Port in connection with such removal and storage. The Port shall have the right to sell such stored property,without notice to Tenant,after it has been stored for a period of thirty PORT/JEFFERSON COUNTY 6 SEPTEMBER 2026 BOAT HAVEN BUILDING RENTAL TENANT INITIALS (30)days or more,the proceeds of such sale to be applied first to the cost of such sale,second to the payment of the charges for storage, and third to the payment of any other amounts which may then be due from Tenant to the Port, and the balance, if any,shall be paid to Tenant. Any failure by the owners, officers,or principals of Tenant to pay rentals,storage fees, moorage or any other charges owed to the Port under separate contract shall constitute default under provisions of this Rental Agreement. 25. WAIVER: The acceptance of rental by the Port for any period or periods after a default by Tenant hereunder shall not be deemed a waiver of such default unless the Port shall so intend and shall so advise Tenant in writing. No waiver by the Port of any default hereunder by Tenant shall be construed to be or act as a waiver of any subsequent default by Tenant. After any default shall have been cured by Tenant, it shall not thereafter be used by the Port as a ground for the commencement of any action under the provisions of Paragraph 24 hereof. 26. SURRENDER OF PREMISES—ATTORNEY'S FEES: a. At the termination of this Rental Agreement,Tenant shall surrender to the Port the possession of the Premises and all improvements. Surrender or removal of fixtures, trade fixtures and improvements shall be as directed in Paragraph 12 of this Rental Agreement on ownership of improvements at termination. Tenant shall leave the surrendered Premises and any other property in broom-clean condition. All property Tenant is required to surrender shall become the Port's property at termination of this Rental Agreement. All property that Tenant is not required to surrender but that Tenant nevertheless abandons shall, at the Port's election, become the Port's property at termination. If Tenant fails to surrender the Premises at the termination of this Rental Agreement,Tenant shall defend and indemnify the Port from all liability and expense resulting from the delay or failure to surrender, including,without limitation, claims made by any succeeding tenant founded on or resulting from Tenant's failure to surrender. b. In the event either party shall commence legal action to interpret or to enforce any of the provisions of this Rental Agreement,the substantially prevailing party shall be entitled to an award for all reasonable costs and attorney fees incurred in any such action. Any action brought under the terms of this Rental Agreement shall be maintained in Jefferson County, Washington. 27. TERMINATION: a. By the Port: In the event that the Port, at its sole discretion, shall require the use of the Premises for any purpose for public or private use in connection with the operation of the business of the Port,then this Rental may be terminated by the Port by written notice delivered or mailed by the Port to the Tenant twenty(20) or more days before the termination date specified in the notice. The Port shall be PORT/JEFFERSON COUNTY 7 SEPTEMBER 2026 BOAT HAVEN BUILDING RENTAL TENANT INITIAtS under no obligation whatsoever to compensate Tenant for loss of use, cost of relocation, and/or cost of improvement. b. By the Tenant: Tenant may terminate this Rental by written notice delivered or mailed by the Tenant to the Port twenty(20) or more days before the termination date specified in the notice. 28. PROMOTION OF PORT COMMERCE:Tenant agrees that it will, insofar as practicable, promote and aid the movement of passengers and freight through facilities within the territorial limits of the Port. Tenant further agrees that all incoming shipments of commodities that it may be able to control or direct shall be made through facilities within the territorial limits of the Port if there will be no resulting cost or time disadvantage to Tenant. 29. ADVANCES BY PORT FOR TENANT: If Tenant shall fail to do anything required to be done by it under the terms of this Rental Agreement, except to pay rent,the Port may, at its sole option,do such act or thing on behalf of Tenant,and upon notification to Tenant of the cost thereof to the Port,Tenant shall promptly pay the Port the amount of that cost. 30. LIENS AND ENCUMBRANCES: Tenant shall keep the leased Premises free and clear of any liens and encumbrances arising or growing out of the use and occupancy of the said Premises by Tenant. At the Port's request,Tenant shall furnish the Port with written proof of payment of any item which would or might constitute the basis for such a lien on the rented Premises if not paid. 31. NOTICES: All notices hereunder may be delivered or mailed. If mailed,they shall be sent by certified or registered mail to the following respective addresses: To Landlord: THE PORT OF PORT TOWNSEND Attn: Lease&Contracts Administrator P.O. Box 1180 Port Townsend,Washington 98368 (360)385-0656 To Tenant: JEFFERSON COUNTY Attn:County Commissioners PO Box 1220 1820 Jefferson Street Port Townsend,WA 98368 PORT/JEFFERSON COUNTY 8 SEPTEMBER 2026 BOAT HAVEN BUILDING RENTAL TENANT INITIALS or to such other respective addresses as either party hereto may hereafter from time to time designate in writing. Notices sent by mail shall be deemed to have been given when properly mailed, and the postmark affixed by the United States Post Office shall be conclusive evidence of the date of mailing. 32. JOINT AND SEVERAL LIABILITY: Each and every party who signs this Rental Agreement, other than in a representative capacity, as Tenant, shall be jointly and severally liable hereunder. 33. "TENANT" INCLUDES"TENANTS", ETC.: It is understood and agreed that for convenience the word "Tenant" and verbs and pronouns in the singular number and neuter gender are uniformly used throughout this Rental Agreement,regardless of the number,gender,or fact of incorporation of the party who is,or of the parties who are,the actual Tenant or Tenants under this Rental Agreement. 34. CAPTIONS: The captions in this Rental Agreement are for convenience only and do not in any way limit or amplify the provisions of this agreement. 35. SEVERABILITY: If any term or provision of this Rental Agreement or the application thereof to any person or circumstance shall,to any extent, be invalid or unenforceable,the remainder of this Lease Agreement or the application of such term or provision to persons or circumstances other than those as to which it is held invalid or unenforceable shall not be affected thereby and shall continue in full force and effect. 36. NON-DISCRIMINATION SERVICES: The Tenant agrees that it will not discriminate by segregation or otherwise against any person or persons because of race,creed, color,sex, sexual orientation, or national origin in furnishing,or by refusing to furnish,to such person, or persons,the use of the facility herein provided, including any and all services, privileges, accommodations, and activities provided thereby. It is agreed that the Tenant's noncompliance with the provisions of this clause shall constitute a material breach of this Rental Agreement. In the event of such noncompliance, the Port may take appropriate action to enforce compliance, may terminate this agreement, or may pursue such other remedies as may be provided by law. 37. NON-DISCRIMINATION EMPLOYMENT: Tenant covenants and agrees that in all matters pertaining to the performance of this Rental Agreement,Tenant shall at all times conduct its business in a manner which assures fair, equal and non-discriminatory treatment of all persons without respect to race, creed or national origin and, in particular: a. Tenant will maintain open hiring and employment practices and will welcome applications for employment in all positions from qualified individuals who are members of racial or other minorities, and PORT/JEFFERSON COUNTY 9 SEPTEMBER 2026 BOAT HAVEN BUILDING RENTAL TENANT INITIALS b. Tenant will comply strictly with all requirements of applicable federal,state,or local laws or regulations issued pursuant thereto relating to the establishment of non-discriminatory requirements in hiring and employment practices and assuring the service of all patrons or customers without discrimination as to any person's race, creed, color,sex,sexual orientation, or national origin. 38. EASEMENTS:The Parties recognize that the Port facilities are continuously being modified to improve the utilities and services used and provided by the Port. The Port or its agents shall have the right to enter the demised Premises of the Tenant, and to cross over,construct, move, reconstruct, rearrange, alter,maintain, repair,and operate the sewer,water, and drainage lines,and the electrical service,and all other services required by the Port for its use. The Port is hereby granted a continuous easement or easements that the Port believes is necessary within the rented Premises of the Tenant,without any additional cost to the Port for the purposes expressed hereinabove; PROVIDED however,that the Port by virtue of such use does not permanently deprive the Tenant from its beneficial use or occupancy of its rented area. In the event the Port does permanently deprive the Tenant from such beneficial use or occupancy,then an equitable adjustment in rent will be negotiated and paid by the Port to the Tenant. In the event such entry by the Port is temporary in nature,then the Port shall abate Tenant's rent for the period that Tenant is inconvenienced by such Port entry. The Port will not be responsible to Tenant for any reduced efficiency,or loss of business occasioned by such entry. 39. ENTIRE AGREEMENT: This Rental Agreement contains all understandings between the parties. Each party represents that no promises, representations, or commitments have been made by the other as a basis for this Rental Agreement which have not been reduced to writing herein. No oral promises or representations shall be binding upon either party, whether made in the past or to be made in the future, unless such promises or representations are reduced to writing in the form of a modification to this Rental Agreement executed by the parties. PORT/JEFFERSON COUNTY 10 SEPTEMBER 2026 BOAT HAVEN BUILDING RENTAL TENANT INITIALS THIS AGREEMENT HAS BEEN NEGOTIATED BETWEEN THE PARTIES AND CONTAINS A LIMITED WAIVER OF IMMUNITY UNDER TITLE 51 RCW,AN INDEMNIFICATION AND A RELEASE. WHEREFORE,this Rental Agreement has been executed on the date first written above and will become effective upon the receipt of a deposit and liability insurance documentation from the Tenant. TENANT—JEFFERSON COUNTY MIC142 '/ FP 24\,Q-e---.---- --at . •y-Nollette Heldi Eisenhour Commissio ,- Commissioner — 1,,,,,,4_ •: B otherton Commissioner ATTEST: LANDLORD-PORT OF PORT TOWNSEND APPROVED AS TO FORM OL----- ----- A — r -----7 ----c t' . Director Port Attorney , Tr : c—roe v,15 ervn.1 a ,63(QL-4-t)J c- Approved as to Form: 09-04-2026 Jerez _ uther Date Civil Deputy Prosecuting Attorney Jefferson County PORT/JEFFERSON COUNTY 11 SEPTEMBER 2026 BOAT HAVEN BUILDING RENTAL TENANT INITIALS JEFFERSON COUNTY BOARD OF COUNTY COMMISSIONERS AGENDA REQUEST TO: Board of Commissioners FROM: Shawn Frederick, Central Services Director DATE: 9/14/2026 RE: New Month to Month Rental Agreement for Auditors Annex Located at 333 Benedict St. Port Townsend WA STATEMENT OF ISSUE: The current lease agreement will expire at the end of September 2026, Renovation of the Courthouse Annex is not proceeding on the predicted timeline. The current lease will expire before work can be completed. ANALYSIS. The Jefferson County Financial Team is moving out of the rental office and coming back to the Courthouse. The Courthouse Annex Project is not ready, more time is needed to finish bid, construction, and relocation phases. The new timeline has us finishing up bid and construction phases within a 4-to-5-month period. The current lease agreement has a hold over rate that would go into effect beginning October 1, 2026. That hold over rate is$2,826.24, compared to the new month to month rate of $2,260.99 per month, a savings of$603.25 per month. FISCAL IMPACT: Six months of occupancy at a rate of$2260.99 Per Month. $13,565.94 total at six months. RECOMMENDATION: Staff recommend Board of Commissioners approve the Rental agreement between the Port of Port Townsend and Jefferson County Central Services. REVIEWED BY: .lL! I�l Jos vp. Peters, County Administrator Date CONTRACT REVIEW FORM Clear Form (INSTRUCTIONS ARE ON THE NEXT PAGE) CONTRACT WITH: Port Of Port Townsend Contract No: FAC2627-333 Benedict St. Contract For: New rental agreement 333 Benedict St. Term: 2026-2027 COUNTY DEPARTMENT: Central Services Contact Person: Matthew Court Contact Phone: 360-531-1591 Contact email: mcourt@co.jefferson.wa.us AMOUNT: $2260.99 per month PROCESS: — Exempt from Bid Process Revenue: Cooperative Purchase Expenditure: $2260.99 Competitive Sealed Bid Matching Funds Required: Small Works Roster Sources(s)of Matching Funds Vendor List Bid Fund # RFP or RFQ Munis Org/Obj I Other: APPROVAL STEPS: STEP 1: DEPARTMENT CERTIFIES COM AN E WITH JCC 3.55.080 AND CHAPTER 42.23 RCW. CERTIFIED: 1' I N/A:f Signature Date STEP 2: DEPARTMENT CERTIFIES THE PERSON PROPOSED FOR CONTRACTING WITH THE COUNTY (CONTRACTOR) HAS NOT BEEN DEBARRED BY ANY FEDERAL, STATE, OR LOCAL AGENCY. CERTIFIED: N/A: ri -7-- Signature Date STEP 3: RISK MANAGEMENT REVIEW(will be added electronically through Laserfiche): Electronically approved by Risk Management on 9/4/2026. Assuming Sect. 10 Waiver of Landlord Liability is unchanged from previous agreement. STEP 4: PROSECUTING ATTORNEY REVIEW(will be added electronically through Laserfiche): Electronically approved as to form by PAO on 9/4/2026. Sect. 10 Waiver of Landlord Liability is concerning from a liabiilty perspective, but given the need and the landlord's negotiating power, I will approve. DPA Luther reviewed and approved on 09-04-2026. STEP 5: DEPARTMENT MAKES REVISIONS & RESUBMITS TO RISK MANAGEMENT AND PROSECUTING ATTORNEY(IF REQUIRED). STEP 6: CONTRACTOR SIGNS STEP 7: SUBMIT TO BOCC FOR APPROVAL