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HomeMy WebLinkAbout100614_cabs02County Administrator's Briefing JEFFERSON COUNTY PUBLIC HEALTH 615 Sheridan Street o Port Townsend o Washington o 98368 www.jeffersoncountypublichealth.org October 1, 2014 JEFFERSON COUNTY BOARD OF COUNTY COMMISSIONERS AGENDA REQUEST TO: Board of County Commissioners Philip Morley, County Administrator FROM: Tami Pokorny, Environmental Health Specialist II DATE: October,, 2014 SUBJECT: Agenda Request: North Gateway Buffer Property — Proposed Notice to Title STATEMENT OF ISSUE: Environmental Health staff would like to present information about the North Gatewy Buffer Property and introduce a proposed Notice to Title to provide additional open space protections. The Notice will be presented to the BoCC for signature at a later date. ANALYSIS /STRATEGIC GOALS: In 2004, the North Gateway Buffer Project was granted conservation futures funds and an agreement was subsequently established between the project partners, the City of Port Townsend and Jefferson Land Trust, and the County on how the property would be managed. The agreement included a provision to record a Notice to Title (G.1. (f)). Conservation Futures Program staff discovered that no such notice was in place while researching deeds and other documents related to the program. This Notice to Title will help ensure that the protections funded, in part, with the Conservation Futures Fund will be retained in perpetuity or, if it becomes necessary to sell the property, that other equivalent lands will be received by the City of Port Townsend. FISCAL IMPACT• There is no fiscal impact to the county General Fund. The costs to record the Notice to Title will ultimately be paid for by the Conservation Futures Fund. COMMUNITY HEALTH PUBLIC HEALTH ENVIRONMENTAL HEALTH DEVELOPMENTAL DISABILITIES WATER QUALITY MAIN: (360) 385 -9400 ALWAYS WORKING FOR A SAFER AND MAIN: (360) 385 -9444 FAX: (360) 385 -9401 HEALTHIER COMMUNITY FAX: (360) 379 -4487 Review the North Gateway Buffer Property agreement and proposed Notice to Title. Discuss and ask questions as desired. REVIEWED BY: f, Philip Morle� C ty Admini5trato. Date COMMUNITY HEALTH PUBLIC HEALTH ENVIRONMENTAL HEALTH DEVELOPMENTAL DISABILITIES ALWAYS WORKING FOR WATER QUALITY A SAFER AND MAIN: (360) 385 -9400 MAIN: (360) 385 -9444 FAX: (360) 385 -9401 HEALTHIER COMMUNITY FAX: (360) 379 -4487 RETURN TO. NOTICE TO TITLE A CQ UIRED WITI1 TINE USE OF CONSER VA TIOA1 FUTURES FUNDS Grantor: Jefferson County Grantees: CITY OF PORT TOWNSEND, JEFFERSON LAND TRUST Legal Description: Beginning at the Northeast comer of the Northwest Quarter of Section 16, Township 30 North, Range I West, W.M., thence South 1251 Feet; thence West 1387 Feet; thence North 1251 Feet; thence East 1387 feet to the point to beginning; EXCEPT that portion lying Easterly of State Highway S.R.20; ALSO EXCEPT a strip of land conveyed of Jefferson County for county road by deed dated January 21, 1977 and recorded under Auditor's File No. 239669, records of said country; ALSO EXCEPT that portion lying Westerly of Discovery road right-of-way; ALSO EXCEPT the North 200 feet thereof, lying between Discovery Road right-of-way and State Highway 20; ALSO EXCEPT that portion lying Southerly of Jacob Miller Road right-of-way. All situate in the County of Jefferson, State of Washington. Assessor's Property Tax Parcel No: 001 162 016. NOTICE IS IIEREBY GIVEN to the Grantor(s)/Owner(s) of the above- referenced real property, to potential purchasers and future owners, to agents or representatives, and to any other concerned person or entity: In order to permanently protect the forested entrance to the City of Port Townsend, the Grantors and the Grantee herein covenant and agree that the real property that is the subject of this Deed shall be maintained, retained and conserved in perpetuity in its natural state by the Grantee, its successors and assigns. This covenant is deemed to touch upon and run with the land in strict conformance with RCW 84.34.230. The land shall not be converted to a different use unless and only if other equivalent lands within the City of Port Townsend (the City) are received by the City in exchange. The property described is also subject to the terms and conditions of an AGREEMENT between Jefferson County — City of Port Townsend — Jefferson Land Trust concerning "Gateway Buffer Property" dated July 12, 2004. DATED this -- day of 2014. By John Austin, Chair Jefferson Board of County Commissioners Attested: Erin Lundgren, Clerk of the Board � ') 1 trove as t 3' David Alvarez, Iiief Civ DPA Y AGREEMENT Jefferson County — City of Port Townsend — Jefferson Land Trust "North Gateway Buffer Property" This Agreement, dated 2 '2004, is between Jefferson County, a Municipal corporation ("Coull . V)� rl'), 'ity of Port Townsend, a Municipal corporation ("City"), and Jefferson Laud Trust, a Washington non-profit corporation ("Land Trust"), with a registered mailing address of Post Office Box 1610, Port Townsend, WA 98368. RECITALS: - A. The County had intended to purchase and had agreed in 2003 on a price of S70,375 for the purchase of certain property known as the "Gateway Buffer Property", the legal description of which is set forth attached as Exhibit A-1, and shown on a map attached as Exhibit B. There is one portion of the Gateway Buffer Property South and another North of Jacob Miller Road. The latter is known as the North Gateway Buffer Property (referred to in this Agreement as the "North Buffer"). B. The purpose of the County acquisition is to preserve the native vegetation and trees on the Gateway Buffer Property as a forested buffer, which, by aesthetically enhancing the south entrance to the City on Highway 20, promotes tourism and contributes economic and aesthetic benefits to the City and County and its citizens. C, Earlier this year, the City Manager and the County Administrator reached a tentative agreement, subject to legislative approvals, as follows: the City would purchase property owned by the County in the vicinity of Kah Tai Lagoon for $25,000, which the parties agreed was the fair market value of the Kah Tai property. The assessed valuation of the property, according to the County Assessor, was $5 1,750. In return, the County agreed that it Would use $10,000 of the funds received from the City purchase of the Kai Tai property as a partial funding source for the acquisition by the County of the Gateway Buffer Property, preserving it as a forested corridor on the entrance to the City. The City purchased the County property at Kali Tai March 8, 2004 (AFN 482088) for $25,000. The City, through the City Council, and the County, through the Board of County Conintissioners, desire to memorialize and confirm the above tentative agreement, subject to the terms of this Agreement. The County agrees that but for the City's purchase of the County's property at Kah Tai, the County would not be undertaking the purchase of any of the Gateway Buffer Property, and this constitutes SUffiCiCrit consideration for the representations made in this Agreement by the County to the City. D. The County had initially intended to use Conservation Futures Funds as a source of $35,000, or half of the purchase price of the Property. After the Conservation Futures Fund Advisory Board recommended against this action, the County asked the Jefferson Land Trust to assist in working with the owner of the Property and finding additional sources of funds. Agreement —North Gateway Buffer Property Jefferson County — City of Port Townsend —Jefferson Land Trust E. Jefferson Land Trust, in partnership with the Port Townsend Chamber of Commerce and the Economic Development Council of Jefferson County, is involved in seeking creative solutions, funds and in-kind donations from individuals and entities to assist the (,ounty with the purchase of the Gateway Buffer Property. Here are the accomplishments and commitments: • The portion of the Gateway Buffer Property south of Jacob Miller Road will be Sold directly to Mr, Kevin Widell, owner of A+ Equipment Rentals, Inc., for $20,000, He has agreed to protect a 50 foot forested buffer along the highway, • The portion of the Gateway Buffer Property north of Jacob Miller Road (hereafter referred to as the "North Buffer") will be purchased by the County for $50,375, • The Land"Trust has secured the donated services of Walter Briggs, a certified forester, who has prepared a detailed Forest Management Plan for the Property. • Jerry Harpolc, local horse logging expert, has offered to donate his services to carry out the first thinning of the forest as recommended in the Forest M.atiagement Plan. Anticipated timber proceeds of $7,500 to $10,000 will all go to the County. • Escrow services will be donated by Jefferson Title Company, • The County will notify the Land Trust in writing that the County has closed on the purchase and will request $16,000 of reimbursement, • The Land Trust, subject to the terms of this Agreement, will provide to the County $16,000 of donated funds to reimburse the County for some of the costs of the acquisition of the North Buffer. • The Land Trust and its partners desire to assure donors that the Gateway Buffer Property will remain as a forested buffer in its natural condition, and the County desires to provide that assurance, subject to the terms set forth in this Agreement. F. County, City and Land Trust desire to set forth in this Agreement the terms and conditions of their understanding relative to the County's purchase of the North Buffer property in this Agreement. G. These recitals are a material part of this Agreement. ZD NOW, THEREFORE, the County, City, and Land Trust agree as follows: I. Declarations Prohibitions, _arid_ _Conditions Affecting the North Buffer tpqrtion north oi�acob Miller Road 3. The County agrees, upon n purchasing the North BLIffer, legally described in Exhibit A-2, that it shall remain as nearly as possible in its current, natural state, as a forested buffer subject to the following declarations, prohibitions and conditions: a. All vegetation, including existing trees, or any future planted or naturally seeded trees, will be cut only as part of a Forest Management Plan developed by a professional forester and approved by the Land Trust. EXCEPT, Nothing prevents the County frown removing dead, diseased, dying or dangerous trees that constitute a hazard to 1117c or property. Agreement — North Gateway Buffer Property ,Jefferson County — City of Port Townsend —,Jefferson Land Trust b. The County may perform, and is encouraged to do so, sustainable selective logging and thinning pursuant to the Forest Management Plan, for the purpose of improving forest health and obtaining funds in the approximate amount of $7,500-$10,000 to partially reimburse the County for the purchase of the North Buffer. The parties anticipate this will involve logging and thinning of approximately one-quarter of the trees present, and that this will occur within the next two years. C. If plantings occur, only plants and vegetation native to the Northwest will be planted. d. — No structures of any kind will be placed on the North Buffer Property; EXCEPT, the foregoing does not apply to any fence determined by the County to be necessary for the protection of the North Buffer property. e. The parties conternplate the County will continue to own the North Buffer, In the event the County determines to sell the North Buffer, the County agrees to negotiate in good faith with the Land 'Trust and the City in an effort to reach agreement on a sale to the Land Trust or City. If no agreement can be reached, County may sell the North Buffer to a third party. In any sale or donation, County agrees to incorporate the terms of this Agreement by reference in any deed or other legal instrument by which the County divests itself of any interest in all or a portion of the North Buffer. If needed in the future for public transportation purposes, County may also sell or change the use (from buffer to something else) of the North Buffer or a portion for that purpose. Proceeds from any sale of the North Buffer (or a portion) or a sum equal to the value of the portion of the North Buffer that undergoes a change in. Use will be used exclusively for the purchase of additional highway buffer properties near the entrance of Part Townsend, in concurrence with both the City and the Land Trust. f. The parties agree to record a Notice to Title affecting the North Buffer property in the form substantially set forth in Exhibit C. 2. _General. a. The parties agree any breach or threatened breach of this Agreement allows any party to bring an action at law or in equity in a court of competent jurisdiction Z_ to enforce the terms of this Agreement, including to enjoin the violation, ex parte as necessary, by temporary or permanent inaction, and/or to require the reforestation of any affected property to the condition that existed prior to the injury arising by the violation of the terms of this Agreement. b. Nothing contained in this Agreement shall be construed by any party to bring any enforcement action against the County or owner resulting from causes beyond the County's or owner's control, including, without limitation, fire, storm, earth movement, or for acts of trespassers, Agreement — North Gateway Buffer Property Jefferson County — City of Port Townsend -- Jefferson Land Trust The prevailing party in any legal action shall be entitled to reasonable 0 attorneys' fees. d. The venue of any action shall be Jefferson County, Washington, or otherwise as provided by the laws of the State of Washington. el This Agreement sets forth the entire agreement of the parties with respect to the subject matter of this Agreement, and supercedes, all prior discussions, negotiations, understandings, or agreements between the parties relating to this matter, This Agreement may only be modified by a writing signed by the County, the City, and the Land Trust. David Tirnrn 10 s, City Manager 181 Quincy S reet, #201 Port Townsend, WA 98368 JEFFERSON COUNTY '11350-Wel Glen Huntiniford, Cl man P. 0. Box 1220 Y� Port Townsend, WA 98368 By By( John Watts, City Attorney Rik JuelieDalzell, Prosecuting Xd rney MOM By Pard Kolacy, CMC, City cleri)� JEFFERSON LAND TRUST, a Washington non-profit corporation By President And By. _ Ellen Er—occJt, Secretary P. C. Bo,\, 1610 Port Townsend, WA 98368 ATTEST: BY Lorna Delaney; Clerk ofthe Board, Agreement — North Gateway Buffer Property Jefferson County — City of Port Townsend — Jefferson Land Trust Map Output Page I of I Legend UNKNOVM Se13dod Foali owns tA1 30, Ju, L Ul C"Y Road Systurn --H Paoc,0. 'O'M CQ POM 96 3 Y)' 'Y Souridarias 4r5 1+ 2 y." J6 3 N, 2 13 o El Coxnas X" b 2 Q "XI .xy a wait a4 • 062Q0 1 992,10YU! CC., CQ 4"4s I— cc" el C-D .52.041 rco "�KQ9 C�) '63 V42,*%, I (KY 162�Xb CO' 'W"Xj! (73 . 'E "CO3Y) i, 'al b' ce)2c.-2 9-1 eX. 1 0 • LX:11 C10 R 'CO-'C'13 B 0 E N AV 941V.'C101 9111 (X r.C- i Q 'M 11 * O�A IJENNY AV F- ca FLORENCE' ST GLEN COVE RD FC R INFORMATIONAL PURPOSES ONLY- Jefferson County does not attest to the accuracy of the data contained herein and makes no warranly with respec mrrectness or validity. Data contained in this map Vs limited by the method and accuracy of its collection, Fri Aug ( i,ttl): ll�isserverlservleticolll.csri,esrinicil).Esi° it-nap?Scra,iceNanic=-ovill,il)&ClietitVersioti=4.0... 8/6/2004 02 74� COD j'0 YJ. NX-24 CC', (A?. I CC-' LUPINE ST -'%ks V01" -, jC.0 -K,3 ce 30 Page I of I Legend UNKNOVM Se13dod Foali owns tA1 30, Ju, L Ul C"Y Road Systurn --H Paoc,0. 'O'M CQ POM 96 3 Y)' 'Y Souridarias 4r5 1+ 2 y." J6 3 N, 2 13 o El Coxnas X" b 2 Q "XI .xy a wait a4 • 062Q0 1 992,10YU! CC., CQ 4"4s I— cc" el C-D .52.041 rco "�KQ9 C�) '63 V42,*%, I (KY 162�Xb CO' 'W"Xj! (73 . 'E "CO3Y) i, 'al b' ce)2c.-2 9-1 eX. 1 0 • LX:11 C10 R 'CO-'C'13 B 0 E N AV 941V.'C101 9111 (X r.C- i Q 'M 11 * O�A IJENNY AV F- ca FLORENCE' ST GLEN COVE RD FC R INFORMATIONAL PURPOSES ONLY- Jefferson County does not attest to the accuracy of the data contained herein and makes no warranly with respec mrrectness or validity. Data contained in this map Vs limited by the method and accuracy of its collection, Fri Aug ( i,ttl): ll�isserverlservleticolll.csri,esrinicil).Esi° it-nap?Scra,iceNanic=-ovill,il)&ClietitVersioti=4.0... 8/6/2004 Form No. 1402..92 (10/1 7M) ALTA owner's PW4 4 IS-14JED By First. A11" lerican Title Insurance Company SUBJECT TO THE EXCLUSIONS FROM COVERAGE, THE EXCEPTIONS FROM COVERAGE CONTAINED IN SCHEDULE B AND THE CONDITIONS AND STIPULATIONS, FIRST AMERICAN TITLE INSURANCE COMPANY, a California corporation, herein called the Company, insures, as of Date of Policy shown in Schedule A, against loss or damage, not exceeding the Amount of Insurance stated in Schedule A, sustained or incurred by the insured by reason of, 1. Title to the estate or interest described in Schedule A being vested other than as stated therein; 2. Any defect in or lien or encumbrance on the title, 3. Unmarket&lity of the title; 4. Lack of a right of access to and from the land, The Company will also pay the costs, attorneys, fees and expenses incurred in defense of the title, as insured, but only to the extent provided in the Conditions and Stipulations. First American Title Insurance Company C! �j ENT 949936 AnTST SECRFTARY EXCLUSIONS FROM COVERAGE The foIlowing matters are expressly excluded from the coverage of this policy and the Company will not pay loss or damage, costs, attorneys` fees or expenses which arise by reason of: 1. (a) Any law, ordinance or governmental regulation (including but not firrited to building and zoning laws, ordinances, or regulations) restricting, regulating, prohibiting or relating to (i) the OC,eflpanCy, use, or enjoyment of the lant (H) the character, dimensions or location of any improvement now or hereafter erecled on the land; (iii) a separation in ownership or a change In the dimensions or area of the land or any parcel of which the land is or was a part or (iv) environmental protection, or the effect of any violation of these laws, ordinances or governmental regulations, except to the extent that a notice of the enforcement thereof or a notice of a defect, lien or encumbrance resulting from a violation or alleged violation affecting the land has been recorded in the public records at Date of Policy, e power not excluded by (a) above, except to the extent that a notice of the exercise thereof or a notice of a defect, lien, or encumbrance (b) Any governmental Polio resetting from a violation or alleged violation affecting the land has been recorded in the public records at Date of Policy. 2, Rights of eminent domain unless notice of the exercise thereof Ihas been recorded in the public records at Date of Policy, but not excluding from coverage any taking which has occurred prior to Date of policy which would be binding on the rights of a purchaser for value without knowledge, 3, Defects, liens, encumbrances, adverse claims or other matters: (a) created suffered, assumed or agreed to by the insured claimant-, (b) not known 10 the Company, not recorded in the public records at Date of Policy, but known to the insured claimant and not disclosed in writing to the Company by the insured claimant prior to the date the insured claimant became an insured under this policy; (C) resulting in no loss, or damage to the insured claimant; (d) attaching or created subsequent to Date of Policy; OF (e) resulting in loss or damage which would not have been sustained N the insured claimant had paid value for the estate or interest insured by this policy, 4. Any claim which arises out of the transaction vesting in the Insured the estate or interest insured by this policy, by reason of the operation of federal bankruptcy, state i,nso ency, or similar H a, creditors" rights laws, that is based on: (i the transaction creating the estate: or interest insured by this policy being deemed a fraudulent convey (ii) the transaction creating the estate or interest insured by this policy being deemed a preferential transfer (a) to timely record the IM at such recordation DEFINI'll"1011 OF TERMS. instrument at transfer; or to impart notice to a purchaser for value The following terms when used in this Policy mean: (a) "`insured`: the insured named in Schedule A, and, subject to any rights or defenses the Company would have had against named insured, those who succeed to the interest of the named Insured by Operation Of law as distinguished from purchase including, but not limited to, heirs, distributses, di survivors, personal represent,a- ui next of kin, or corporate of fiduciary successors. (b) "insured claimant"; an insured claiming loss or damage. Uawlerigo' or 1,known': actual knowledge, not constructive knowledge or notice which may be imputed to an insured by reason of the public records as defined in this policy of any other records which impart constructive notice of matters affecting me land. (d) -land". the land described or referred to In Schedule (A), and improvements affixed thereto which by law constitute real property. The term "land'" does not include any property beyond the lines of the area described or referred to In Schedule (A), nor any right, Me, interest, estate or easement in abutting streets, roads avenues, alleys, lanes, ways or waterways, but nothing he�on si modify or limit the exlent to which a night of access to and from the land is insured by this Policy, (a) 'mortgage-: mortgage, deed of trust, trust deed, or other security instrument. (D .public recordsi records established under state statutes at Date Of Percy for the purpose 01 imparting consi notice of ri relating to real property to purchasers for value and without knowledge. With respect to Wbori 1(a)(iy) of the Exclusions from Coverage, 'Public records"s;hall also incude environmental protection liens filed in the records of the clerk of the United States district court for the district in which the land is located. (g) unmarketability of the fillet an alleged or apparent matter affecting the trite to the land, not excluded or excepted from Coverage, which would entitle a purchaser of the estate or interest described in schedule A to be released from tie obligation to purchase by virtue of a contractual condition req0ing the delivery of marketable title. 2. COPMNUATION Of INSURANCE AMR CONVEYANCE OF TITLE. The coverage of this policy shall continue in force as of Date of Policy in ,favor of an insured only so long as the in ,i.Ired retains an estate or interest in the land, or holds an purchase money mortgage given Indebtedness secured by a or a judgment or lien creditor CONDITIONS ANC b I IVULAI 11i by this policy which constitutes the basis of loss or damage and shall stale, to the extent possible, the basis of calculating the amount of the loss or damage. If the Company Is prejudiced by the fi0lure of the insured claimant In provide the required proof of loss of damage, die Company's obligations to the insured under the policy shall terminate, Including any liability or obligation to defend, prosecute, or continue any litigation, with regard to the matter or matters requiring: such proof of loss or damage. In addition, the insured claimant may reasonably be required to submit to examination under oath by any "orized representative of the Company and shall produce for examination, inspection and copying, at such reasonable times and places as may be designated by any authorized representative of the Company, all records, books, ledgers, checks, correspondence and memoranda, whether bearing a date before or after Date of Policy, which reasonably pertain to the loss or damage, Further, It requested by any authorized representative of the Company, the Insured claimant shall grant Is permission, In writing, for any authorized rep- resentative of the Company to, examine, inspect and copy all records, books, ledgers, checks, correspondence and mem- oranda in the custody or control of a third party, which reasonably pertain to the loss or damage. Ali information designated as confidential by the insured claimant provided to the Company pursuant to this Section shag not be disclosed to others unless, in the reasonable judgment of the Company, it Is necessary in the adoilinisbation of the claim. Failure of the insured claimant to submit for examination under oath, produce other reasonably requested Information or grant permission to secure reasonably necessary informa- tion from third parties as required in this paragraph, unless prohibiled by law or governmental regulation, shall terminate any liability of the Company under this policy as to that claim, 1 6. OPTION'S TO PAY OR, OTHERWISE SETTLE CLAIMS; TERMINATION OF LIABILITY, ante or fraudulent transfer- or except where the preferential transfer results from the In case of a claim under this policy, the Company shall have the following additional options: (a) To Pay or Tender Payment of the Amount of Insurance. To pay ortender payment of the amount of insurance under this policy together with any costs, attorneys, lees and expenses incurred by the insured claimant, which were authorized by the Company, up to the time of payment or lender of payment and which the Company is obligated to pay. Upon the exercise by the Company of this option, J liability and obligations to the insured under this policy, other than to snake the payment required, shall terminate, including anv filhilitv rir inhrinnfinn in dirii nrinizPsnitilip nr rnnfinsia for any loss or damage caused thereby. (b) in the event of any litigation, including litigation by the Company or with the Company's consent, the Company shall have no liability for loss or damage until there has been a final determination by a court of competent jurisdiction, and disposition of all appeals therefrom, adverse to the little as insured, (t) The Company shall not be liable fair loss or damage to any Insured for fiabirity voluntarily assumed by the insured in settling any claim or suit without the prior written consent of the Company. 10, REDUCTION OF INSURANCE; REDUCTION OR TERMINATION OF LIABILM All payments under this policy, except payments made for costs, attorneys' fees and expenses, shall reduce the amount of the insurance pro tame. 111. LIABILITY NONCUMULATIVE, it is expressly understood that the Amount of In- surance underthis policy shall be reduced by any amount the Company may pay under any policy Insuring a mortgage to which exception is taken in Schedule 6 or to which the insured has agreed, assumed, or taken subject, or which is hereafter executed by an insured and which is a charge at lien on the estate or interest described or referred to In Schedule A, and the amount so paid shall be deemed a payment under this policy to the insured owner. 12, PAYMENT OFLOSS. (a) No payment shall be inade without producing this policy for endorsement of the payment unless the policy has been lost or destroyed, in which case proof of loss or destruction shall be furnished to the satisfaction of the Company. (b) When liability and the extent of loss or damage has been definitely fixed in accordance with these Conditions and Stipulations, the loss or damage shall be payable within 30 days thereafter. 13, SUBROGATION UPON PAYMENT OR SETTLEMENT. (a) The Company's Right of Subragation. Whenever the Company shall have settled and paid -a claim under this ii all right of Subrogation shall vest in the Company unaffected by any act of the ins ed claimant. The Company shall be subrogaled i and the linfitled to all ­­ estate or interest. This policy Shall ­ not continue in force in favor of any purc*er from the insured of either (i) an estate or interest in the lentil (ii) an indebtedness secured by a purchase" motley mortgage given to the Insured, 3, NOTICE OF CLAIM TO BE GIVEN BY INSURED CLAIMANT, The insured shall notify the Company promptly in writing (i) in case of any'litgation as set forth in Section 4(a) beloW, (ii) in case knowledge shag come to an insured hereunder of any claim of tide or interest which is adverse to the title to the estate or interest, as insured, and which might cause loss or damage for which the Company may be liable ' " he " 0 or (V"' if We f pro' b - virtue state or interest, p , Of this asinsured. a unmarketable. nipt codes shall 0 Olne t n as 10 th om rejected S reg n ot g " Com ' ard be iv nt Company, 0 insured all liability of the C pany hall terminate to the matter or matters for which prompt notice Is required; provided, however, that la re to notify the Company shall in no case iiu prejudice the 0 hts of any insured if 'der this policy unless r�,rn'arw S 11 be prejudiced ed VJ e failure , the Company shall be prejudiced by the and then only to the extent Of the prejudice. 4. DEFENSE AND PROSECUTION OF ACTIONS; DUTY OF INSURED CLAIMANT TO COOPERATE. (a) Upon written request by the insured and subject to the options contained in Section 6 of these Conditions and Sfipulations, the Company, at its own cost andl without unreasonable delay, shall, provide for the defense of an insured in litigation in which any third party asserts a claim adverse to the title or interest as Insured, but only as to those stated causes of action alleging a defect, lion, or en- cumbrance or other matter insured against by this policy. The Company shall have the right to select counsel of its choice (subject to the right of the insured to object for reasonable cause) to represent the insured as to those stated causes of action and shall not be liable for and will not pay the fees of any other counsel. The Company will not pay any fees, costs or expenses incurred by the insured in the defense of those causes of action which allege smatters not Insured against by this pollcy. (b) The Company shall have ft right, at its own cost, to institute and prosecute any action of proceeding of to do any other act which in its opinion may be necessary or desirable to establish the We to the estate or interest, as insured, or to prevent or reduce loss or damage to the insured. The Company may take any appropriate aGbDn under the terms of this policy, whether or not it shalt be liable hereunder, and shall not thereby concede liability or waive any provision of tNs policy. if the Company shall exercise its rights under this paragraph, it shall do so diligently. (c) Whenever the Company shall have brought-an action or interposed a defense as required or permitted by the provisions of this policy, the Company may pursue any litigation to final determination by a court of competent jurisdiction and expressly reserves the right, in its sole discretion, to appeal from any adverse liudgment or order. (d) in all cases where this policy perrhrlS or requires the Company to prosecute or provide for the defense of any action or proceeding, the insured shall secure to Ile Company the right to so prosecute or provide defense In the action or proceeding, and all appeals therein, and perinit the Company to use, at its option, the name of the Insured for this purpose. Whenever requested by the Company, the insured, at the Company's expense, shall give the Company all reasonable aid (i) in any action or proceeding, securing evidence, obtaining witnesses..pro,secuting or defending the action or proceeding, or effecting settlement, and (ii) in any other lawful act which in the opinion of the Company may be necessary of desirable to establish the title to the estate or interest as insured, if the Company is prejudiced by the failure of the insured to furnish the required cooperation, the Company's obligations to the insured under the policy shall terminate, including any liability or obligation to defend prosecute, or continue any litigation„ with regard to the mane� or matters requiring such cooperation S. PROOF OF LOSS OR DAMAGE. in addition 10 and after the nOtCeS required under Section 3 of these Conditions and Stipulations have been provided the Company, a proof of loss or damage signed and sworn to by the insured claimant shalt be furnished to the Company within 90 days after the insured claimant shall ascertain tare facts giving rise to the loss or damage. The proof of loss or damage shall describe the defect in, or lien or encumbrance on the title, or other matter insured against (b) To Pay or Otherwise Settle With Parties Other than the Insured or With the Insured Claimaril. (i) to pay or otherwise settle with other parties for or in the name of an insured claimant any claim insured against under this policy, together with any costs, attorneys' fees and expenses incurred by the insured claimant which were authorized by the Company up to the time of payment and which the Company is obligated to pay; or (if) to pay or Otherwise settle with the insured claimant the loss or damage provided for under this policy, together with any costs, attorneys' fees and expenses incurred by the Insured claimant which were authorized by the Company up to the time of payment and which the Company is obligated to pay. Upon the exercise by the Company of either of the options provided for in paragraphs (b)(i) or (Ii), the Com- pany's obligations to the insured under this policy for the claimed loss or damage, other than the payments required to be made, shall terminate, including any liability or obligation to defend, prosecute or continue any litigation,, 7. DETERMINATION. EXTENT OF LIABILITY AND COINSURANCE. This policy Is a contract of indemnity against actual monetary loss or damage sustained or incurred by the insured claimant who has suffered loss or damage by reason of matters Insured against by this policy and only to the Went herein described. (a) The liability of the Company under this policy Shelf not exceed the least of: (I) the Amount of Insurance stated in Schedule A; (R) the difference between the value of the insured estate or interest as insured and the value of the insured estate or interest subject to the defect, lien or encumbrance insured against by this policy. (b) In the event the Amount of Insurance stated in Schedule A at the Date of Policy is less than 80 percent of the value of the insured estate or interest or the full consideration paid for the land, whichever is less, or 0 subsequent to the Date of Policy an Improvement is erected on the land which increases the value of the insured estate of interest by at least 20 percent over the Amount of Insurance stated in Schedule A, then this Policy is subject to the following: @ where no subsequent Improvement has been made, as to any partial loss, the Company shall only pay the loss pro rata In the proportion that the Amount of Insurance at Date of Policy bears to the total value of the insured estate or interest at Date of Policy; or in where a subsequent improvement has been made, as to any partial loss, the Company shall only pay the loss pro rate in the proportion that 120 percent of the Amount of Insurance stated in Schedule A bears to the sum of the Amount of Insurance stated In Schedule A and the amount expended for the improvement.. The provisions of this paragraph shall not apply to costs, attorneys' fees and expenses for which the Company is liable under this policy, and shall only apply to that portion of any loss which exceeds, in the aggregate, 10 percent of the Amount of Insurance stated in Schedule A. (c) The Company will pay only those costs, attorneys, fees and expenses incurred In accordance With Section 4 of these Conditions and Stipulations. 8. APPORTIONMENT If the land described in Schedule (A)(C) consists of two or more parcels which are not used as a singe: site, and a loss is established affecting one or more of the parcels but not all, the loss shall be computed and settled on a pro rata basis as if the Amount of Insurance under this policy was divided pro rata as to the value on Dale of Policy of each separate parcel to the whole, exclusive of any improvements made sub- sequent to Date of Policy, unless a liability or value has otherwise been agreed upon as to each parcel by the Company and the insured at the time of the issuance of this policy and shown by an express statement or by an endorsement attached to this policy. 9. LIMITATION OF LIABILITY. (a) It the Company establishes the We, or removes the alleged defect, lien or encumbrance, or cures the lack of a right of access to or from the land, or cures the claim of unmafketability of We, all as insured, in a reasonably diligent manner by any method, including litigation and the comple- Von of any appeals therefrom, it shall have fully performed its obligations with respect to that matter and shall not be liable the 'insured "c'Iairn'ant shaP trans"ler to the Company all right and remedies against any person or property n6ce§safry, in order to perfect this fight of subrogation. The insured claimant shall permit the Company to Sue, compromise or settle in the name of the insured claimant and to use the name of the Insured claimant in any transaction or litigation involving these rights or remedies. It a payment on account of a claim does not fully cover Me loss of the insured d9rhaPt, the Company shaill be subrogaled to these rights and remedies in the proportion which the Company's payment bears to the whole amount of the loss. if loss should result from any act of the insured claimant as stated above, that act strait not void this policy, but the Company, in Urat event, shag be required to pay only that part of any losses insured against by this policy which shall exceed the amount, it any, lost to the Company by reason of the impammerd by the insured claimant of the Company's right of subrogation. (b) The COMP300 Rights Against non- Insured Obligors. The Company's night of subrogation against non- insured obligors shall exist and shall Include, without limitation, the rights of the insured to Indemnities, guaranties, other policies of insurance or bonds, notwithstanding any terms or conditions contained in those instruments which provide for subrogation rights by reason of this policy. 14. ARBITRATION. Unless prohibited by applicable law, either the Com- pany or the insured may der%nd arbitration pursuant to the Title Insurance Arbitration Rules of the American Arbitration Association. Arbitrable matters may Include, but are not limited to, any controversy or claim between the Company and the insured arising out of or relating to this policy, any service of the Company in connection with its issuance or the breach of a policy Provision or other obligation. All arbitrable matters when the Amount of Insurance is $1,000,000 or less, shall be arbitrated at the option of either the Company or the Insured. All arbitrable matters when the Amount of Insurance is in excess of $1,000,000 shall be arbitrated only when agreed to by both the Company and the insured, Arbitration pursuant to this policy and under the Rules in effect on the date the demand for arbitration is made of, at the option of the insured, the Rules in effect at Date of Policy shall be binding upon the parties, The award may include attorneys' fees only 0 the laws of the slate in which the land is located permit a court to award attorneys, fees to a prevailing party. Judgment upon the award rendered by the Arbilrator(s) may be citered in any court having jurisdiction thereof. The law Of the Situs of the land shall apply to an arbitiabon under the Title Insurance Arbitration Rules, A copy of the Rules may be obtained from the Company upon request. 15. LIABIL17Y LIMITED TO THIS POLICY, POLICY ENTIRE CONTRACT (a) This Policy together with all endorsements, if any, attached hereto by the Company is the entire policy and contract between the insured and the Company. In interpret- ing any provision of this policy, this policy shalt be constri im as a whole. (b) Any claim of loss or damage, whether or not based on negligence, and which arises out of the status of the We to the estate or Interest covered hereby or by any action asserting such claim, shall be restricted to this policy. (c) No amendment of or endorsement toy this policy can be made except by a writing endorsed hereon or attached hereto signed by either the President, a Vice President, the Secretary, an Assistant Secretary, or validating officer or authorized signatory of the Company. 16. SEVERABILITY. In the event any provision of the policy is held invalid or unenforceable under applicable law, the policy shall be deemed not to Include that provision and all other provisions shall remain in full force and affect. 17. NOTICES, WHERE SENT AN rdx= mquvw to be liven ft Gorilpwy and any statement 0 writiov mquivel lo be lumishoo ft Carr Pwy " Include ft numbef of this Policy and shall to addressed b the Company at I F-4 kwicm way, smia Ana, cartornia 92707, or to the office Which issued ft poficy. y '1 IZII iz it SCHEDULE A AMOUNT OF INSURANCE: $50,375.00 POLICY No. 1949936 PREMIUM: 296.00 Order No. 64566-P DATE OF POLICY: July 23, 2004 at 12:10 pm 1. NAME OF INSURED: JEFFERSON COUNTY, a Washington municipal corporation 2. THE ESTATE OR INTEREST IN THE LAND WHICH IS COVERED BY THIS POLICY IS: FEE SIMPLE ESTATE 3. TITLE TO THE ESTATE OR INTEREST IN THE LAND IS VESTED IN: THE NAMED INSURED 4. THE LAND REFERRED TO IN THIS POLICY IS DESCRIBED ON SCHEDULE A-4 ATTACHED: Countersigned: Authorized Officer or Agent EXCEPTIONS FROM COVERAGE THIS POLICY DOES NOT INSURE AGAINST LOSS OR DAMAGE (AND THE COMPANY WILL NOT PAY COSTS, ATTORNEY'S FEES OR EXPENSES) WHICH ARISE BY REASON OF: �. TAXES OR ASSESSMENTS WHICH ARE NOT SHOWN AS EXISTING LIENS BY THE RECORDS OF ANY TAXING AUTHORITY THAT LEVIES TAXES OR ASSESSMENTS ON REAL PROPERTY OR BY THE PUBLIC RECORDS. 2. ANY FACTS, RIGHTS, INTEREST, OR CLAIMS WHICH ARE NOT SHOWN BY THE PUBLIC RECORDS BUT WHICH COULD BE ASCERTAINED BY AN INSPECTION OF SAID LAND OR BY MAKING INQUIRY OF PERSONS IN POSSESSION THEREOF. 3. EASEMENTS, CLAIMS OF EASEMENTS OR ENCUMBRANCES WHICH ARE NOT SHOWN BY THE PUBLIC RECORDS. . DISCREPANCIES, CONFLICTS IN BOUNDARY LINES, SHORTAGE IN AREA, ENCROACHMENTS, OR ANY OTHER FACTS WHICH A CORRECT SURVEY WOULD DISCLOSE, AND WHICH ARE NOT SHOWN BY PUBLIC RECORDS. 5. (A) UNPATENTED MINING CLAIMS; (B) RESERVATIONS OR EXCEPTIONS IN PATENTS OR IN ACTS AUTHORIZING THE ISSUANCE THEREOF; (C) WATER RIGHTS, CLAIMS OR TITLE TO WATER; WHETHER, OR NOT THE MATTERS EXCEPTED UNDER (A) , (B) OR (C) ARE SHOWN BY THE PUBLIC RECORDS; (D) INDIAN TRIBAL CODES OR REGULATIONS, INDIAN TREATY OR ABORIGINAL RIGHTS, INCLUDING EASEMENTS OR EQUITABLE SERVITUDES. 6. ANY LIEN, OR RIGHT TO LIEN, FOR SERVICES, LABOR OR MATERIAL. THERETOFORE OR HEREAFTER FURNISHED, IMPOSED BY LAW AND NOT SHOWN BY THE PUBLIC RECORDS. 7. ANY SERVICE, INSTALLATION, CONNECTION, MAINTENANCE, CONSTRUCTION, TAP OR REIMBURSEMENT CHARGES/COSTS FOR SEWER, WATER, GARBAGE OR ELECTRICITY. Policy No. 1949936 SCHEDULE B PART TWO: POLICY Na. 1949936 1. General taxes, as follows, together with interest, penalty and statutory foreclosure costs, if any, after delinquency: (1st half delinquent on May 1; 2nd half delinquent on November 1) Tax Account —NO. Year Amount Billed Amount Paid Princir)al Balance # 001 162 016 2004 $382.52 $191.26 $191.26 2. Right to make necessary slopes for cuts or fills upon the land herein described as granted to Jefferson County, State of Washington by deed recorded under Recording No. 239669. 1914MON 91 SCHEDULE A-4 Policy No. 1949936 POLICY NO. 1949936 THE LAND REFERRED TO IN THIS POLICY IS SITUATED IN THE STATE OF WASHINGTON, COUNTY OF JEFFERSON AND IS DESCRIBED AS FOLLOWS: Beginning at the Northeast corner of the Northwest Quarter of Section 16, Township 30 North, Range I West, W.M., thence south 1251 Feet; thence West 1387 Feet; thence North 1251 Feet; thence East 1387 feet to the point to beginning; EXCEPT that portion lying Easterly Of State Highway S.R.20; ALSO EXCEPT a strip of land conveyed of Jefferson County for county road by deed dated January 21, 1977 and recorded under Auditor's File No. 239669, records of said county; ALSO EXCEPT that portion lying Westerly of Discovery road right-of-way; ALSO EXCEPT the North 200 feet thereof, lying between Discovery Road right- of-way and State Highway 20; ALSO EXCEPT that portion lying Southerly of Jacob Miller Road right-of-way. Situate in the County of Jefferson, State of Washington. This policy contains the following endorsements: NONE 4 Jefferson County PO Box 2070 Port Townsend WA 98368 Enclosed please find your Final Policy of Title Insurance. Please keep in a safe place. if you have any question regarding your policy, please give me a call at (360) 385-2000, ask for Bethany. Thank you for choosing Jefferson Title Company, Inc. we look forward to serving your title and escrow needs in the future. Sincere1y, tsymith Final Policy Dept enclosures J, V, FAX 7 JEFFERSON �COU NTY TREASURER P.0. Box 571 * port Townsend, Wash ngton 98368 En'-raid www'Go.je�Flerson,wa.us yudith E, Morris - Treasurer (360) 385-9154 ,jane t A gj'o f broot— Chiet Deputy t360) 385-9151 NITZI ! 1' RE: North Gateway Buffer Property Payment President, Mark Demsbro JEFFERSON COUNTY COURTHOUSE NATIONAL HISTORIC SITE PORT' TOWNSEND. WASHINGTON Pursuant to the agreement executed in July 2004, between Jefferson County and the Jefferson Land Trust, payment is being requested. The agreement stipulated the "The County Wil notify the Land Trust in writing that the County has closed on the purchase and Will request $16,000,,00 of reimbursement." The conditions have been met, and the County hereby requests reimbursement of $16,000.00. The check should be sent to Jefferson County in care of the Jefferson County Treasurer P 0 Box 571 Port Townsend, W 98368, Should there be questions, they may be directed to me at 385-9154. Judi Morris, Treasurer CC: John Fischbach, County Administrator; Juelie Dalzell, Prosecuting Attorney. Ge Ieial ,36i01 3K-9150 Tax Foieclo,sIjre (3% 385-9K2