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HomeMy WebLinkAbout082420_ca09 JEFFERSON COUNTY BOARD OF COUNTY COMMISSIONERS CONSENT AGENDA REQUEST TO: Board of County Commissioners Philip Morley, County Administrator FROM: Mark McCauley, Central Services Director DATE: August 24, 2020 SUBJECT: Request for Board of County Commissioners approval for the Central Services Director to send a letter of default to the Jefferson Equestrian Association under a 2010 license and operating agreement STATEMENT OF ISSUE: In June, 2010 Jefferson County entered into a 50-year license and operating agreement (Agreement) with the Jefferson Equestrian Association (JEA) for use of county parcel #001083012 as a public equestrian events center and park. The JEA has since apparently ceased operating as a legal entity and has defaulted on the agreement, as explained below. ANALYSIS: The Jefferson County Auditor on April 13, 2020 mailed a property tax invoice/advice to the address listed in Section 13 of the Agreement (JEFFERSON COUNTY EQUESTRIAN ASSOCIATION, P.O. Box 1069, Port Townsend, WA 98368). That invoice/advice was returned by the U.S. Postal Service indicating that the P.O. Box address was closed. The required payment is now months in arrears. FISCAL IMPACT: None. RECOMMENDATION: That the Board of County Commissioners pass a motion authorizing the Central Services Director to sign and send the attached 10-day notice of default letter to the JEA, in care of Melinda Bryden, Governor and Registered Agent for the Association. Should the JEA fail to cure the default within 10 days the county will declare the default and terminate the agreement. REVI a +D Y: Phi ip Morle un ator Date �w�gON BOG Department of Central Services Jefferson County, Washington ti1N�� P.O.Box 1220 Port Townsend,WA 98368 Phone: (360)385-9171 Fax: (360)385-9195 NOTICE OF DEFAULT AND RIGHT TO CURE WITHIN 10 DAYS: FAILURE TO CURE TIMELY WILL RESULT IN TERMINATION OF YOUR LICENSE WITH JEFFERSON COUNTY TO: Jefferson Equestrian Association c/o Melinda Bryden, Governor and c/o Registered Agent 1221 Woodland Drive Port Townsend, WA 98368 FROM: Mark McCauley, Central Services Director P.O. Box 1820 1220 Jefferson Street Port Townsend, WA, 98368 DATE: August 20. 2020August 19, 2020August 18, 2420 SUBJ: Jefferson Equestrian Association(JEA) 10-Day Notice to Cure Dear Ms. Bryden, JEA is in default of the June 2010 License Agreement it has with Jefferson County. According to the last Annual Report filed with the Washington Secretary of State by the JEA, you are the sole corporate governor and registered agent of JEA. In addition, the Annual Report and the location to which this Notice of Default is addressed is where the registered agent for the JEA resides. (a) This Notice gives the Jefferson Equestrian Association 10-days-Notice of Default and Right to Cure within 10 days to cure the default under the June 2010 License and Operating Agreement between the Jefferson County Equestrian Association and Jefferson County. Specifically, Section 11.1(a) of June 2010 License and Operating Agreement between the County and JEA (the Agreement) states that the Operator(JEA) shall be in default of the Agreement on the occurrence of any of the following: Failure to pay Annual License Fee or other expenses when due; The Jefferson County Auditor on April 13, 2020 mailed a property tax invoice/advice to the address listed in Section 13 of the Agreement(JEFFERSON COUNTY EQUESTRIAN ASSOCIATION, P.O. Box 1069, Port Townsend, WA 98368). That invoice/advice was returned by the U.S. Postal Service indicating that the P.O. Box address was closed. The required payment is now many months in arrears. JEA now has 10 days from the date of this letter to remit payment to Jefferson County in the amount of$27.14 to cure the default. This will trigger a default declaration and will cause the Agreement to become null and void. Please contact Mark McCauley at 360-385-9130 or at mmccauley@co.jefferson.wa.us if you have any questions. Thank you. 552394 PGS = 23 AGR 06/15/2010 01:31 PM $84.00 JEFFERSON COUNTY COMMISSIONERS Jefferson County WA Auditor's Office - (Donna Eldridge, Auditor 11111 '�Mt l sir r' IPCrNN 11111 RETURN ADDRESS Jefferson County Commissioners P.O. Box 1220 Port Townsend, WA 98368 Please print neatly or type information DOCUMENT TITLE License and Operating Agreement re: Jefferson County Equestrian Events Center& Park REFERENCE NUMBER (S) OF RELATED DOCUMENTS Additional Reference#'s on page GRANTOR (S) (Last. First and Middle Initial) Jefferson County Additional grantor on page GRANTEE (S) (Last, First and Middle Initial) Jefferson Equestrian Association Additional grantee on page LEGAL DESCRIPTION (Abbreviated form:i.e. lot, block, plat or section,township, range,quarterlquarter) Additional legal on page ASSESSOR'S PROPERTY TAX PARCEL/ACCOUNT NUMBER Additional parcel#'s on page The Auditor/Recorder will rely on the information provided on this form. The staff will not read the document to verify the accuracy or completeness of the indexing information provided herein. LICENSE and OPERATING AGREEMENT for JEFFERSON COUNTY EQUESTRIAN EVENTS CENTER AND PARK WHEREAS, a priority for Jefferson County (the County) is the general well-being of the community, family and children, and the County wishes to maintain the quality of life and amenities of the community, if not solely through County efforts, then through partnerships with public private entities that can help the County achieve its goal of a high quality of life for its citizens; and WHEREAS, the Jefferson Equestrian Association (JEA or Operator) has long been desirous of operating and managing an equestrian events center and park for the benefit and pleasure of its members and the general public;and WHEREAS,the JEA at one time intended to install, operate and manage an equestrian events center and park upon a site that is now the Cape George Road trail head parking lot but instead informally agreed that the County could place its trail head facility at that location if another location was found for the equestrian events center and park; and WHEREAS, on June 6, 2007,the Jefferson County Parks Advisory Board reviewed an Equestrian Park Master Plan for the County property subject to this License and Operating Agreement and recommended it for review by the Board of County Commissioners, and on July 17, 2007, the Board of County Commissioners reviewed and approved by motion said Equestrian Park Master Plan; and WHEREAS, the County has made drastic cuts to its parks and recreation budget for 2010 and the reduced budget amounts will continue for the foreseeable future; and WHEREAS, the JEA would, pursuant to the terms and obligations of this Operating Agreement, install, maintain and operate equestrian events center and park facilities for the benefit of the general public and the equestrian community, in essence stepping in where the County cannot,at present, do so to provide recreational opportunities for citizens of the County; and WHEREAS, because the installation, maintenance and operation of an equestrian events center and park by a volunteer organization such as the JEA is of benefit to all of the County's citizens including, but not limited to, the youth of this County, said benefit to the citizenry constitutes good and valuable consideration running to the County for allowing the equestrian events center and park to exist on real property owned by the County; and WHEREAS, the County owns real property that would he suitable for the installation, maintenance and operation of an equestrian events center and park; and WHEREAS, authorization of an equestrian events center and park at the county's real property pursuant to the terms and obligations agreed to in this License and Operating Agreement, would and does constitute good and valuable consideration running to the JEA as operators of the equestrian events center and park; Page - I. - (Rev. June 10,2010) NOW, THEREFORE, the JEA and Jefferson County, a political subdivision of the State of Washington and a municipal corporation, for the good and valuable consideration listed above, do hereby agree as follows: THIS LICENSE and OPERATING AGREEMENT(or"Agreement") is made by and between Jefferson County,acting through the Department of Public Works ("the County"), and the Jefferson Equestrian Association, a tax-exempt 501 (c)(3) corporation ("Operator"). LICENSE GRANTED For good and valuable consideration exchanged between the parties the County does hereby grant to the Jefferson Equestrian Association (JEA) a License to install, maintain and operate a public equestrian events center and park upon the lands commonly known as the N 1/2 of the NW 1/4 of Section 17, Township 30 North, Range 1 West, W.M., Assessors Tax Parcel # 001172002, hereinafter described as Parcel A, together with a twenty (20) foot wide easement along the western property boundary of Lot I,Jefferson County Fire Protection District#6 Short Plat, Assessors Tax Parcel # 001083012, as recorded under Auditors File No. 403948. Said License to JEA to operate an Equestrian events center and park shall be undertaken and implemented pursuant to the terms and conditions of this Agreement. A Legal description of Parcel A is found in Exhibit A with survey references attached as Exhibit B (recorded under Auditor's File No. 493592), and Exhibit C (recorded under Auditor's File No. 540726). The above-described parcels shall be collectively known as "the Property." SECTION 1 PROPERTY 1.1 Property Defined. The JEA will install, maintain and operate the equestrian events center and park on real property described as County Parcel A on Exhibit A, further depicted by Exhibits B and C recorded under Auditor's File No. 493592 and 540726 to this Agreement, together with a twenty (20) foot wide non-exclusive easement along the western property boundary of Lot 1, Jefferson County Fire Protection District#6 Short Plat,Assessors Tax Parcel #001083012 as recorded under Auditors File No. 403948 (collectively, the"Property") subject to the exceptions and restrictions set forth in this Agreement. 1.2 Inspection. The County makes no representation regarding the condition of the Property, improvements located on the Property, the suitability of the Property for Operator's Licensed Use, compliance with governmental laws and regulations, or availability of utility rights. Operator has inspected the Property and accepts it "AS IS." SECTION 2 USE 2.1 Licensed Use. The Operator agrees to install, operate and maintain upon the Property an equestrian events center and park as a free,public, day use park except as described in sections 2.1.1, 2.1.2, 2.1.3, 2.8 and 2.9. The Property grounds,trails, restrooms,parking lots, and other common areas shall be kept open and available to the general public every day from dawn to dusk except as described in the aforementioned sections. Page - 2 - (Rev.June 10,2010) 2.1.1 Fees may be assessed by the JEA when the entire Property or portions of the Property are used for commercial, instructional, special events, or any other purpose that excludes the general public from use of the Property through closure of the entire Property or portions of the Property. 2.1.2 The use of improvements built on the property by JEA, intended for the active use by horses, the presenting of horse shows, or the maintenance of the facility, may be restricted by the establishment of park use policies that shall be submitted once every four years by JEA to Public Works for approval by Public Works. The approval of those policies by Public Works shall not be unreasonably denied. These park use policies may be amended at any time in a writing mutually agreed to by the parties. 2.1.3 All overnight events where the number of attendees is greater than 20 must obtain a Jefferson County Special Events Permit from the Board of County Commissioners office prior to the event and be officially sanctioned by the JEA. 2.2 Restrictions on License. Operator shall not cause or permit any damage to natural resources on the Property except as is necessary to complete the construction projects licensed in the Conditional Use Permit. Operator shall also not cause or permit any filling activity to occur on the Property except as is necessary to complete the construction projects as approved by the County. This prohibition includes any deposit of rock, earth, ballast, refuse, garbage, waste matter(including chemical,biological or toxic wastes),hydrocarbons, any other pollutants, or other matter in or on the Property,except as approved in writing by the County. This prohibition does not apply to such routine or emergency maintenance as is required to maintain a proper safe footing for equestrian use. If Operator fails to comply with all or any of the restrictions on its License for use of the Property set out in this Subsection 2.2,the County shall notify Operator and provide Operator a reasonable time to take all steps necessary to remedy the failure. If Operator fails to do so in a timely manner,then the County may take any steps reasonably necessary to remedy this failure. Upon demand by the County, Operator shall pay all costs of such remedial action including but not limited to the costs of removing and disposing of any material deposited improperly on the Property. The County reserves the mineral and timber rights to the property. Any timber harvest must be approved in advance by the County. The County Public Works Department will be notified 30 days in advance of the falling of any tree or trees for any purpose after which time the JEA will apply for necessary timber harvesting permits through the Department of Natural Resources and or other required agencies. The County will be compensated for the value of harvested merchantable timber above and beyond the cost of harvest when the timber is used on site for the construction of site amenities including but not limited to fences, gates,jumps, buildings or benches. Upon approval of the County, non-merchantable timber may be used for site amenities including but not limited to fences, gates.jumps, buildings or benches. This section shall not in any way limit Operator's liability under Section 8, below. 2.3 Conformance with Laws. Operator shall, at all times, keep current and comply with all conditions and terms of any permits, licenses, certificates, regulations, ordinances, statutes, and other government rules and regulations regarding its use or occupancy of the Property. Operator will not discriminate on the grounds of race, color, sex, religion, national origin, creed, marital status, sexual preference, age or the presence of any sensory,mental or physical handicap deny any individual an opportunity to participate in any event, service or benefit it may be providing or offering at the equestrian events center and park. Page - 3 - (Rev.June 1.0,2010) Because this is a County park the regulations in Jefferson County Code, including Chapters 8.25 and 12.25, or as subsequently amended, and any rules promulgated by the County thereunder, shall regulate the behavior of persons using the equestrian events center. JEA may, after consultation with the County's Parks and Recreation Director, designate, if needed or applicable, any portion of the equestrian event center as being off-limits to certain uses (e.g., horses, bikes) on either a permanent or temporary basis pursuant, in part, to the County's authority to designate such horse-free zones found in County Code Section 8.25.060. Because any alleged violation of the Chapters of the County Code listed above is deemed a criminal misdemeanor in accordance with County Code Section 8.25.140 and Section 1.01.160 (as extant now and as they may be thereafter amended), the JEA shall only urge or request compliance with these two chapters of the County Code and shall not restrain or detain any person who appears to not be in compliance with the applicable regulations. In more extreme circumstances, JEA is encouraged to ask for the assistance of law enforcement. 2.4 Liens and Encumbrances. Operator shall keep the Property free and dear of any liens and encumbrances arising out of or relating to its use or occupancy of the Property. 2.5 Use of motorized vehicles with internal combustion or electric motors for recreational purposes in the Property is prohibited. Motorized vehicles may be used by JEA or County Staff, or their delegates for maintenance,operations, and public safety purposes only. The use of motorized vehicles by the public is limited to the entrance road(s)and parking area(s). Pedestrians using powered wheel chairs or personal mobility scooters are exempt from this prohibition. 2.6 Signage shall indicate the Property is an open, public, Jefferson County Parks and Recreation Day Use Park and that use of the Park or a portion or portions of the Park by the public may be prohibited on certain occasions 2.7 Co-location. The JEA will work with the County on an as needed basis to develop a plan for the future co-location of compatible County activities on the equestrian events center and park site. At such time as there is a need for a study of the feasibility of joint use for the facility, JEA and County representatives agree to convene an ad hoc committee of representatives from JEA's executive committee, the County Administrator(or designee)and the organization wishing to use the facility. JEA and the County acknowledge that the co-location of a compatible facility at the equestrian events center and park site may require amendments or revisions to this Agreement and both parties shall not unreasonably withhold their approval of such amendments or revisions. 2.8 Limits To Restrictions On Public Use. The JEA may fully occupy the Property and prohibit use of the Property by the general public on no more than 24 days per calendar year. No more than 16 of the days when JEA is fully occupying the Property may be weekend days and no more than four(4) weekend days in any calendar month of any year may be days when the JEA is fully occupying the Property. The JEA will post at the Property its annual schedule of programs (a list required by Section 16 of this Agreement) on or before February 1 of each year. Notice that JEA intends to fully occupy the Property and/or prohibit its use (in whole or in part) by the general public for events not listed on its Annual Program list will require posting by the JEA at the entrance to the Property not less than seven days before the JEA event in question. Page -4 - (Rev.June 10,2010) 2.9 JEA may request of the County additional days or additional weekend days beyond the quantity listed in Section 2.8 and the County will not unreasonably withhold permission for such additional days or weekend days. The number of days the JEA requires to close the entire facility for events that generate revenue for Jefferson County shall be subject to an annual review and adjustment as need by a meeting of both parties. Said meeting should occur in the last quarter of any given year. This section does not affect the right of JEA to restrict the use of portions of the park to fulfill the mission of the JEA. 2.10 Rules. JEA may establish use rules for the equestrian events center, said rules (and any alterations to those rules) to be subject to approval by the County's Public Works department. The rules or a summary of the rules shall he posted at the equestrian events center. Use rules established for the equestrian events center shall not unreasonably interfere with the public's ability to use the center. 2.11 Benchmarks. Use of the Property by the JEA shall be incrementally more intense over the term of this Agreement as described on Exhibit "E,"entitled "Benchmarks." Failure to implement, install or undertake the Benchmarks within the time frames or deadlines listed on Exhibit "E"shall be considered an event of default for purposes of Section 11. SECTION 3 TERM 3.1 Term Defined. The term of this Agreement is fifty (50)years (the "Term"), beginning on the le Day of June. 2010, (the"Commencement Date") and ending on the 14'h Dav of June 2060, (the "Termination Date"), unless terminated sooner under the terms of this Agreement. •3.2 Renewal of the Agreement.Operator shall have the option to renew this Agreement for one additional term of up to 50 years. The initial Term of this Agreement, and all renewal terms, shall not exceed one hundred (100)years in the aggregate. Operator shall exercise this option by providing written notice of its election to renew(or election not to renew) at least one (1)year prior to the Termination Date of the initial Term or any renewal term of this Agreement. Operator shall not be entitled to renew if it is in default under the terms of this Agreement at the time the option to renew is exercised. The terms and conditions of any renewal term shall be the same as set forth in this Agreement, except that the license Fee, if same has been required, shall be recalculated, the required amounts of financial security may be revised, and provisions dealing with hazardous waste or impacts to natural resources may be changed at the time of the renewal. 3.3 Delay in Delivery of Possession. If the County, for any reason whatsoever, cannot deliver possession of the Property to Operator on the Commencement Date, this Agreement shall not be void or void-able, nor shall the County be liable to Operator for any loss or damage resulting from the delay in delivery of possession. In such event, the date of delivery of possession shall be the Commencement Date for all purposes, including the payment of license fee, if applicable. Page - 5 - (Rev. June 10,2010) 3.4 No Landlord-Tenant relationship between the parties shall be created by this Agreement. The Operator is and shall remain at all times relevant to this Agreement an independent entity and no agent, employee or representative of the Operator shall be deemed to be an agent, employee or representative of the County for any purpose. The Operator is and remains solely responsible for the actions and omissions of its agents, employees, representatives or subcontractors during the term of this Agreement. SECTION 4 LICENSE FEE 4.1 Annual License Fee. Until adjusted as set forth in this Agreement, Operator shall pay to the County an Annual License Fee of One Hundred Dollars ($100.00). The License Fee shall be payable within 30 days of the Commencement Date of this Agreement, and annually thereafter on the Commencement Date anniversary of this Agreement, Commencement Date being defined as the date the last party to this Agreement signed it. The Annual License Fec shall increase to One Hundred Fifty Dollars ($150,00)upon any Commencement Date anniversary after January 1, 2020. The Annual License Fee shall increase to Two Hundred Twenty Five Dollars($225.00) upon any Commencement Date anniversary after January 1, 2030. The Annual License Fee shall increase to Three Hundred Dollars($300.00) upon any Commencement Date anniversary after January 1, 2040. The Annual License Fee shall increase to Four Hundred Dollars ($400.00) upon any Commencement Date anniversary after January 1,2050. Any renewal of this Agreement after the expiration of its 50-year term shall. if the terms of said renewal include an Annual License Fee, include an Annual License Fee of not less than Six Hundred Dollars ($600.00). 4.2 Payment Place. Payment is to be made to Jefferson County Public Works, 623 Sheridan St. Port Townsend, WA 98368, or other address as directed by the County in writing. 4.3 Adjustment Based on Use. Annual License Fee is based on Operator's Licensed Use of the Property, as described in Section 2 above. If Operator's Licensed Use changes,the Annual License Fee shall be adjusted as appropriate for the changed use. 4.4 Support for Youth Programs. The JEA was formed, in part, to support the youth of Jefferson County. To that end,the primary use of funds generated by JEA will be to support equestrian programs for youth. In addition, JEA will revenue share with Jefferson County to support other County-wide youth programs. 4.5 Separate Fund For Shared Revenues. To this end a separate fund will be established by JEA for the benefit of the County. This fund shall initially be used to assist in paying for improvements to Cape George Road at the entrance of the park. After the completion of crossing and entrance improvements but no later than January 1, 2021, all sums in this fund at that time not needed for crossing and entrance improvements and all funds generated pursuant to Section 4 of this Agreement after January 1, 2021 shall be used by Jefferson County to support other programs with specifically or generally benefit the County's youth, said utilization of these funds to remain in the sole discretion of the Jefferson County Commission. The County shall treat the revenue generated pursuant to this Agreement and the expenditure of same as a distinct sole- purpose revenue stream and revenue outgo and shall do so in a manner that conforms to the county's standard accounting methodology and provides transparency for the general public and JEA. Page - 6 - (Rev.June 10,2010) 4.6 Revenue Sharing From Fees. First, for ring-based horse shows a fee equal to ten percent (10%) of the fee charged per class entry for all competitors who are non-JEA members will be paid to the County within 30 days of the conclusion of the show. Second, for cross-country events and camps that have only a single entry fee, a fee equal to ten percent (10%) of the fee charged to a non-JEA member will be paid to the County within 30 days of the event. Last, for all non-equestrian events held at the park, a fee of five percent(5%) of the gross revenue of the event will be paid to the County within 30 days of the event. All funds raised by an event that requires revenue-sharing between Jefferson County and the JEA shall be accounted for by JEA in writing to the Jefferson County Auditor, said accounting to include a level of detail acceptable to the Jefferson County Auditor. This accounting shall occur not more than 30 days after the last day of any event or show put on by JEA. Additionally,the JEA shall upon reasonable notice make all of its financial records available to the Jefferson County Auditor on a regular basis, typically once per year. 4.7 For rental of the facility or any portion of it for non-revenue producing events (the host does not charge admission), such as weddings or family gatherings, a flat fee will be charged with 15%of that gross fee payable to Jefferson County. SECTION 5 OTHER EXPENSES 5.1 Operator Responsibility For Improvements. The Operator shall be responsible for the cost of all improvements related to the use of the Property as a park and equestrian facility except as specifically described elsewhere in this Agreement. The County shall have no obligation to fund or construct improvements except where specifically stated in this Operating Agreement. Improvements including, but not limited to, trails, buildings,barns,arenas,parking, access roads,vault toilets, fencing,riding courses, and upgrades to the intersection at Cape George Road shall be the responsibility of the Operator except as otherwise stated specifically in this Operating Agreement. 5.2 Operator Responsibility For Other Expenses. During the Term. Operator shall pay the following additional expenses: - 5.2.1 Utilities. Operator shall pay all fees charged for utilities in connection with the use and occupancy of the Property, including but not limited to electricity, water, gas, sewage and telephone service. 5.2.2 Taxes and Assessments. Operator shall pay all taxes assessments, and other governmental charges, of any kind whatsoever, applicable or attributable to the Property, Operator's License, the improvements, or Operator's use and enjoyment of the Property. 5.2.3 Proof of Payment. Operator shall, if required by the County, furnish to the County receipts or other appropriate evidence establishing the payment of any amounts required to be paid under the terms of this Agreement. 5.2.4 Failure to Pay. If Operator fails to pay any of the amounts due under this Agreement,then the County may pay the amount due,and recover its cost in accordance with the provisions of Section 6. Page - 7 - (Rev. June 10,2010) SECTION 6 IMPROVEMENTS 6.1 Existing Improvements. No improvements to the Property have been made as of the Commencement Date. The County shall have no obligation to make improvements to the subject Property including, but not limited to, delivering electricity, water, gas, sewage conveyance, treatment or storage systems and telephone service. 6.2 The Operator is required to make the following improvements. If the Operator fails to make the required improvements they shall be in default of this Operating Agreement and subject to the provisions of Section 11 of this Operating Agreement. 6.2.1 Fence on Common Boundary. Operator shall be responsible for maintenance of boundary fencing common to the Operator's lands and the lands presently managed by the Department of Public Works as a Closed Municipal Landfill as required by the State and as a condition of a Solid Waste Facility Permit issued by Jefferson County Public Health.. The common boundary is described as the northern property line of tax parcel 4 001172002 and the eastern side of the twenty (20) foot easement along the western property boundary of tax parcel # 001083012. Operator shall be liable for any damage caused to the boundary fence described above owing to use of the park and shall reconstruct, repair, or replace the boundary fence per Subsection 1.0.2. All costs associated with the maintenance and/or replacement of the boundary fence owing to age shall be shared equally by the County and Operator. The County shall determine when age-related maintenance and/or repairs are warranted. Failure of the Operator to reimburse the County for such costs is subject to the provisions of Section 11 of this Agreement. 6.2.2 Fence on Other Boundaries. Within 3 years of the Commencement Date of this Agreement,the Operator shall erect fencing along the remaining three sides of the Property (the south, west, and east boundaries)to confine use to the Agreement area. Fencing shall be standard 4-wire T-post construction. The costs for construction and future maintenance of said fencing shall be borne entirely by the Operator. 6.2.3 Access and Parking. The Operator shall be responsible for construction and maintenance of an access roadway into the Property from Cape George Road adequate to serve the demand created by the facilities and planned events. The adequacy of said access roadway into the Property and parking on-site shall be determined through and within the Conditional Use Permit application process by the applicable local agencies, i.e., Public Works and Community Development, utilizing the applicable state and local laws and regulations. All costs for development of the access roadway shall be the responsibility of the Operator. JEA as the applicant shall comply with all permit conditions imposed by any County agency as a condition of any permits granted by the County. Costs incurred for compliance with said conditions shall be the sole responsibility of the JEA. Page - 8 - (Rev. June 10,2010) 6.2.4 Transportation Improvements and Impact Mitigation. The level of transportation impact to the county road system will be assessed through the Conditional Use Permitting (C.U.P.) process. The Operator will be responsible for adequately mitigating any transportation related impacts identified through the C.U.P. process, if any. Transportation related improvements, if required, may be phased with the development of the facilities and use of the site. The Operator will be responsible for all costs involved in applying for, obtaining and implementing the terms and conditions imposed upon it as an applicant through the Conditional Use Permit process. 6.2.5 Equestrian Safety on Cape George Road. Operator recognizes that the development and use of the Property as an equestrian events center and park may create the potential for an increase in equestrian use along Cape George Road with associated safety issues. Operator will implement an education program to discourage unsafe riding practices. Should the development of the equestrian events center and park create the need to develop trails and/or crossing facilities to safely manage equestrian traffic in the vicinity of the county road, the Operator shall participate in making the improvements by taking the lead in fund raising, grant writing,volunteer construction, or other measures as needed. 6.2.6 Monitoring Wells. Prior to commencement of construction activities as described in Sections 6.3, 6.4, 6.5 and 6.6 of this Agreement, the County shall erect fencing around and for the protection of Gas and Water Monitoring Wells that are maintained and operated by the Department of Public Works as an element of post-closure operations of a Closed Municipal Landfill as required by the State and as a condition of a Solid Waste Facility Permit issued by Jefferson County Public Health. Said Gas and Water Wells are located within the Property subject to this Operating Agreement and a map approximating Well locations is attached as EXHIBIT D—APPROXIMATE LOCATION OF GAS AND WATER MONITORING WELLS (Attached to original agreement retained in the Commissioner's Office). Operator shall be liable for any damage caused to the Well fencing and/or Wells themselves as described above owing to Operator's use of the park and shall reimburse the County for all expenses related to the repair of the fencing and/or Wells if so damaged. Operator is to keep Monitoring Wells free of any and all encumbrances to access at all times. 6.3 Operator-Owned Improvements. So long as this Agreement remains in effect, Operator shall retain ownership of all authorized improvements and temporary facilities it may place on the Property (collectively "Operator-Owned Improvements"). No Operator-Owned Permanent Improvements shall be placed on the Property without the County's prior written consent. When required, all facilities whether permanent or temporary must have approved permits from the Department of Community Development and other required permitting agencies. Full responsibility including payment of all application fees or costs related to obtaining the required permits shall rest with the JEA. Page - 9 - (Rev.June 10,2010) 6.4 Construction. Prior to any construction, alteration, replacement, removal or major repair of any improvements(whether County-Owned or Operator-Owned), Operator shall submit to the County Public Works Director plans and specifications which describe the proposed activity. The County Public Works Director will have the option of approving them as to intent or not. After such time as the plans and specifications are approved as to intent, the Operator will then be required to submit the plans for review and permitting by the Department of Community Development and other required permitting agencies. Construction shall not commence until the required permitting agencies have approved those plans and specifications in writing and issued a permit for construction. Prior to and during construction, the Operator must comply with any applicable requirements of Jefferson County Code, Jefferson County Department of Health regulations and permit requirements, and Washington Department of Ecology regulations and permit requirements. This includes but is not limited to complying with applicable provisions of Jefferson County Code Section 8.10.460, entitled "Construction and notification standards near landfills." Operator shall be responsible to perform at Operator's own expense all investigations, studies,engineering or other requirements needed to comply with applicable standards and conditions. Upon completion of construction, Operator shall promptly provide the County with as-built plans and specifications. The County's consent and approval shall not be required for any routine maintenance or repair of improvements made by the Operator pursuant to its obligation to maintain the Property in good order and repair. The parties expressly acknowledge that the absence of a required County approval for routine maintenance or repair does not relieve the JEA of its obligation to obtain all required and/or necessary County permits or other approvals for any actions they might take at the Property. If the JEA chooses to undertake any construction, alteration, replacement, removal, or major repair of any improvements on the Property that would require a County permit or approval it shall not undertake any construction, alteration. replacement, removal, or major repair of any improvements on the Property without the express written approval of Jefferson County Parks and Recreation. 6.5 Pursuant to section 6.4 of this Agreement, Operator constructed improvements could include horse enclosures, parking lots, indoor and outdoor arenas, major trail system, access roads,judges' booths, water systems, electrical systems, sewage systems, restrooms, landscaping, offices, maintenance buildings and other structures approved by the Public Works Department and as approved by the Conditional Use Permit. Temporary facilities could be used subject to obtaining all necessary permits and with approval of the Public Works Department. 6.6 Removal. Operator-Owned Improvements shall be removed by Operator by the Termination Date unless the County notifies Operator that the Operated-Owned Improvements may remain. If the County elects for the Operator-Owned Improvements to remain on the Property after the Termination Date,they shall become the property of the County without payment by the County. To the extent that Operator-Owned Improvements include items of personal property which may be removed from the premises without harming the Property, or diminishing the value of the Property or the improvements, the County asserts no ownership interest in these improvements unless the parties agree otherwise in writing upon termination of this Agreement. Page - 10- (Rev.June 10,2010) Operator shall notify the County at least one (1) year before the Termination Date if it intends to leave the Operator-Owned Improvements on the Property. The County shall then have ninety (90)calendar days in which to notify Operator that it wishes to have the Operator-Owned Improvements removed or elects to have them remain. Failure to notify Operator shall be deemed an election by the County that the Operator-Owned Improvements will remain on the Property. If the Operator-Owned Improvements remain on the Property after the Termination Date without the County's actual or deemed consent, they still will become the property of the County but the County may remove them and Operator shall pay the costs of removal and disposal upon the County's demand. 6.7 Unauthorized Improvements. Improvements made on the Property without the County's prior consent or which are not in conformance with the plans submitted to and approved by the County("Unauthorized Improvements") shall immediately become the property of the County, unless the County elects otherwise. Regardless of ownership of Unauthorized Improvements, the County may, at its option,require Operator to sever, remove, and dispose of them, charge Operator for the use of them, or both. If Operator fails to remove an Unauthorized Improvement upon request, the County may remove it and charge Operator for the cost of removal and disposal. SECTION 7 ASSIGNMENT AND SUBLETTING 7.1 County Consent Required. Operator shall not sell, convey, assign, pledge, sublet,or otherwise transfer or encumber all or any part of Operator's License. SECTION 8 INDEMNITY, FINANCIAL SECURITY, INSURANCE 8.1 Indemnity. Operator shall indemnify, defend, and hold harmless the County, its employees, officers, and agents from any and all liability, damages (including bodily injury, personal injury and damages to land, and other natural resources), expenses, causes of action, suits,claims, costs, fees (including attorneys' fees), penalties, or judgments, of any nature whatsoever, arising out of the use, occupation, or control of the Property by Operator, invitees, agents, employees, licensees, or permittees, except as may arise solely out of the willful act of the County or the County's elected officials, employees, or agents. The Operator recognizes that operating an Equestrian events center and park facility is by nature inherently risky,therefore the Operator assumes all liability for use of the property. 8.2 Insurance. At its own expense, Operator shall procure and maintain during the"Term of this Agreement, the insurance coverages and limits described below. This insurance shall be issued by an insurance company or companies admitted and licensed by the Insurance Commissioner to do business in the State. Insurers must have a rating of B+ or better by"Best's Insurance Reports," or a comparable rating by another rating company acceptable to the County. If non-admitted or non-rated carriers are used,the policies must comply with Chapter 48.15 RCW. Page - 11 - (Rev. June 10,2010) 8.2.1 Types of Required Insurance. 8.2.1.1 Commercial General Liability Insurance. Operator shall procure and maintain Commercial General Liability insurance covering claims for bodily injury, personal injury or property damage arising on the Property and/or arising out of Operator's operations. Commercial insurance covering claims for these risks shall be procured and maintained. Insurance must include liability coverage with limits not less than $1,000,000 for each occurrence with a $2,000,000 general aggregate limit. The County may impose changes in the limits of liability: upon any breach of Section 8, upon a material change in the condition of the Property or any improvements; or upon a change in the Licensed Use. New or modified insurance coverage shall be in place within thirty (30)days after changes in the limits of liability are required by the County. 8.2.1.2 Property Insurance. Operator shall procure and maintain property insurance covering all real property located on or constituting a part of the Property in an amount equal to the replacement value of all improvements on the Property. Such insurance may have commercially reasonable deductibles. 8.2.1.3 Workers Compensation/Employers Liability Insurance. If the Operator hires an employee or employees, then the Operator shall procure and maintain Worker's Compensation/Employer's Liability insurance. State of Washington Worker's Compensation coverage, as applicable, with respect to any work by Operator's employees on or about the Property and on any improvements. 8.2.1.4 Employers Liability or"Stop Gap" insurance coverage with limits not less than those specified below. Insurance must include bodily injury coverage with limits not less than those specified below: Each Employee Policy Limit ay Accident By Disease $1,000,000 $1,000,000 - 8.2.1.5 Builder's Risk Insurance. As applicable, Operator shall procure and maintain builders risk insurance in an amount reasonably satisfactory to the County during construction, replacement, or material alteration of the Property or improvements on the Property. Coverage shall be in place until such work is completed and evidence of completion is provided to the County. 8.2.1.6 Business Auto Policy Insurance. As applicable. Operator shall procure and maintain a business auto policy. The insurance must include liability coverage with limits for bodily injury and property damage of not less than $1,000,000 per accident. Page - 12 - (Rev. June 10,2010) 8.2.2 "Perms of Insurance. 'Me policies required under Subsection 8.2.1 shall name the County as an additional insured (except for the State of Washington Worker's Compensation coverage). Furthermore, all policies of insurance described in Subsection 8.2.1 shall meet the following requirements: policies shall be written as primary policies not contributing with and not in excess of coverage that the County may carry; policies shall expressly provide that such insurance may not be canceled or non renewed with respect to the County except upon forty-five (45)calendar days prior written notice from the insurance company to the County; to the extent of the County's insurable interest, property coverage shall expressly provide that all proceeds shall be paid jointly to the County and Operator; all liability policies must provide coverage on an occurrence basis; and liability policies shall not include exclusions for cross liability. 8.2.3 Proof of Insurance. Upon execution of this Agreement, Operator shall furnish evidence of insurance in the form of a Certificate of Insurance satisfactory to the County, executed by a duly authorized representative of each insurer showing compliance with the insurance requirements. The Certificate of Insurance shall reference Jefferson County and this Agreement. Receipt of such certificates or policies by the County does not constitute approval by the County of the terms of such policies. Operator acknowledges that the coverage requirements set forth herein are the minimum limits of insurance the Operator must purchase to enter into this Agreement. These limits may not be sufficient to cover all liability losses and related claim settlement expenses. Purchase of these limits of coverage does not relieve the Operator from liability for losses and settlement expenses greater than these amounts. 8.2.4 Default. If Operator fails to procure and maintain the insurance described above the County shall have the right to close the facility immediately. 8.2.5 JEA shall obtain an independent insurance consultant on a periodic basis (but at least as often as once every ten years measured from the initial Commencement Date as described in Section 4 above) to examine all of its insurance policies in order to determine,among other things, the feasibility and cost of obtaining insurance with greater policy limits and the appropriateness of the types of insurance held by JEA. Said independent insurance consultant will report to the County in writing the results of each periodic investigation mandated by this section. This subsection does-not mandate JEA to - purchase insurance with greater policy limits simply because such insurance exists or is available. This section does require JEA to purchase (based upon the recommendation of the independent insurance consultant) a different kind of insurance or insurance with a higher policy limit when doing so would be financially feasible for the JEA. SECTION 9 MAINTENANCE AND REPAIR 9.1 The County's Repairs. The County shall not be required to make any alterations, improvements, maintenance,replacements, or repairs in, on, or about the Property,or any part thereof,during the Term of Operation. Page - 13 - (Rev. June 10,2010) 9.2 Operator's Repairs, Alteration, Maintenance and Replacement. 9.2.1 Operator shall, at its sole cost and expense, keep, improve, and maintain the Property and all improvements (regardless of ownership)in good order and repair, in a clean, attractive, and safe condition. 9.2.2 All additions, repairs, alterations, replacements or changes to the Property and to any improvements on the Property shall be made in accordance with, and ownership shall be governed by, Section 6, above. SECTION 10 DAMAGE OR DESTRUCTION 10.1 In the event of any damage to or destruction of the Property or any improvements, Operator shall promptly give written notice to the County. Unless otherwise agreed in writing, Operator shall promptly reconstruct, repair. or replace the Property and any improvements as nearly as possible to its condition immediately prior to the damage or destruction. 10.2 Operator's duty to reconstruct, repair, or replace any damage or destruction of the Property or any improvements on the Property shall not be conditioned upon the availability of any insurance proceeds to the Operator from which the cost of repairs may be paid. 10.3 Unless this Agreement is terminated by mutual agreement,there shall be no abatement or reduction in the License Fee during such reconstruction, repair, and replacement. 10.4 Any insurance proceeds payable by reason of damage or destruction shall be first used to restore the real property covered by this Agreement, then to pay the cost of the reconstruction, then to pay the County any sums in arrears, and then to Operator. 10.5 In the event Operator is in default under the terms of this Agreement at the time damage or destruction occurs, the County may elect to terminate the Agreement and the County shall then have the right to retain any and all insurance proceeds payable as a result of the damage or destruction. SECTION 11 DEFAULT AND REMEDIES 11.1 Operator shall be in default of this Agreement on the occurrence of any of the following: (a) Failure to pay Annual License Fee or other expenses when due; (b) Failure to comply with any law, regulation, policy, or order of any lawful governmental authority; (c) Failure to comply with any other provision of this Agreement; Page - 14 - (Rev. June 10,2010) (d) Proceedings are commenced by or against Operator under any bankruptcy act or for the appointment of a trustee or receiver of Operator' property; (e) Failure to maintain as effective all insurance policies required by Section 8 above; (f) Failure to satisfy or complete in accordance with the schedule listed there the "benchmarks" listed in Section 2.1.0 and Exhibit"E" to this Agreement. 11.2 A default shall become an event of default("Event of Default") if Operator fails to cure the default within the applicable cure period after the County provides Operator with written notice of default, which specifies the nature of the default. For failure to pay License Fee or other monetary defaults, the cure period shall be ten(10)working days. For other defaults, the cure period shall be thirty(30) calendar days or such other period as the County may deem reasonable but not less than 30 days. 11.3 Upon an Event of Default, the County may terminate this Agreement and remove Operator by any lawful process or procedure. SECTION 12 ENTRY BY THE COUNTY 12.1 The County shall have the right to enter the Property at any time to conduct Gas Well and Water Well monitoring activities as part of the post-closure operations of a Closed Municipal Landfill as required by the State and as a condition of Solid Waste Facility Permit # 009-09. A map approximating Well locations is attached as EXHIBIT D—APPROXIMATE LOCATION OF GAS AND WATER MONITORING WELLS (Attached to original agreement retained in the Commissioner's Office). The County shall also have the right to enter the Property at any hour to inspect for compliance with the terms of this Agreement and in the event of emergency. SECTION 13 NOTICE • Any notices required under this Agreement may he personally delivered, or mailed by certified - - mail, return receipt requested, to the following addresses or to such other places as the parties may direct in writing from time to time: The County: JEFFERSON COUNTY DEPARTMENT OF PUBLIC WORKS Public Works Director 623 Sheridan St. Port Townsend, WA 98368 The Operator: JEFFERSON EQUESTRIAN ASSOCIATION P.O. Box 1.069, Port Townsend, WA 98368 Page - 15 - (Rev.June 10, 2010) SECTION 14 MISCELLANEOUS 14.1 Authority. Operator and the person or persons executing this Agreement on behalf of Operator represent that Operator is qualified to do business in the State of Washington, that Operator has full right and authority to enter into this Agreement, and that each and every person signing on behalf of the Operator Agreement is authorized to do so. Upon the County's request, Operator will provide evidence satisfactory to the County confirming these representations, including, by way of example only, a Resolution of the governing body of the JEA authorizing its representative to sign this Agreement thereby binding the JEA. 14.2 Successors and Assigns. This Agreement shall be binding upon and inure to the benefit of the parties, their successors and assigns. 14.3 Heading. The headings used in this Agreement are for convenience only and in no way define, limit, or extend the scope of this Agreement or the intent of any provision. 14.4 Entire Agreement. This Operating Agreement, including the exhibits and addenda, if any, contains the entire agreement of the parties. All prior and contemporaneous agreements, promises, representations, and the statements relating to this transaction or to the Property, oral or written, if any, are merged into this Agreement and all such prior and contemporaneous agreement, promises, representations and related statements shall not be enforceable and shall be null and void. 14.5 Waiver. The waiver by the County of any breach or default of any term, covenant, or condition of this Agreement shall not be deemed to be a waiver of such term, covenant, or condition of any subsequent breach or default of the same; or of any other term, covenant, or condition of this Operating Agreement. The County's acceptance of a License Fee payment shall not be construed to be a waiver of any preceding or existing breach other than the failure to pay the particular License Fee payment that was accepted. 14.6 Cumulative Remedies. The rights and remedies of the County under this Agreement are cumulative and in addition to all other rights and remedies afforded to the County by law or equity or otherwise. 14.7 Language. The word "Operator" as used in this Operating Agreement shall be applicable to one or more persons, as the case may be. The singular shall include the plural, and the neuter shall include the masculine and feminine. If there is more than one Operator, their obligations shall be joint and several. The word "persons," whenever used, shall include individuals, firms, associations, and corporations. 14.8 Invalidity. If any provision of this Agreement shall prove to be invalid, void, or illegal, it shall in no way affect, impair, or invalidate any other provision of this Agreement. 14.9 Applicable Law and Venue. This Agreement shall be interpreted and construed in accordance with the laws of the State of Washington.Any reference to a statute shall mean that statute as presently enacted or hereafter amended or superseded. Venue for any legal dispute arising from the terms, conditions and obligations within this Agreement shall be in the Superior Court In and For Jefferson County, Washington. Page - 16 - (Rev. June 10,2010) 14.10 Recordation. Operator shall record this Agreement in the County in which the Property is located, at Operator's sole expense. The memorandum shall, at a minimum,contain the Property description,the names of the parties to the Agreement, and the duration of the Agreement. Operator shall provide the County with recording information, including the date of recordation and file number. Operator shall have thirty(30)calendar days from the date of delivery of the final executed agreement to comply with the requirements of this subsection. If Operator fails to record this Agreement,the County may record it and Operator shall pay the costs of recording upon the County's demand. 14.11. Modification. Any modification of this Agreement must be in writing and signed by the parties. The County shall not be bound by any oral representations or statements. 14.12 Administration of Agreement. The County hereby appoints, and the Operator hereby accepts the Jefferson County Director of Public Works, or his designee(the Director)as the County's representative for the purpose of administering the provisions of the Agreement, to request and receive additional information from the Operator, to assess the general performance of the Operator under this Agreement, and to determine if contracting obligations are being performed in accordance with federal, state, or local law. 14.13 Annual Meeting of the Parties. Representatives of each party to this Agreement will meet annually during the October Parks and Recreation Advisory Board Meeting or any other meeting as identified by the County, to review the past 12 month's operation. Operator will present a summary of the past year's operation, a financial statement, and a budget for the next fiscal year. This requirement for an annual meeting shall not prevent the parties from meeting jointly at other times to discuss and act upon matters affecting this agreement. 14.14 Exhibits. EXHIBIT A is described as "REVISED LEGAL DESCRIPTIONS AFTER BOUNDARY LINE ADJUSTMENTS". EXHIBIT B recorded under Auditor's File No. 493592 is described as "RECORD OF SURVEY PRIOR TO BOUNDARY LINE ADJUSTMENT". EXHIBIT C recorded under Auditor's File No. 540726 is described as"RECORD OF SURVEY SHOWING RESULTS OF BOUNDARY LINE ADJUSTMENT AND ACQUISITION OF ACCESS AREA (Parcel A subject to Agreement conditions and terms)". EXHIBIT D is described as"APPROXIMATE LOCATION OF GAS AND WATER MONITORING WELLS"(Attached to original Agreement Retained in Commissioner's Office). EXHIBIT F is described as "EQUESTRIAN EVENTS CENTER BENCHMARKS." EXHIBITS A, B, C, D and E are incorporated as part of the Agreement herein by this reference. SECTION 15 TIMBER HARVESTING 15.1 The parties to this Agreement will generally follow the September 26, 2008 Forest Management Plan (author: Walter R. Briggs, Registered Professional Forester), as subsequently updated. Said Forest Management Plan will be updated periodically in a manner and at a time consistent with best management practices, and shall be subject to County approval. Timber harvest shall be done consistent with Section 2.2, above. Page - 17 - (Rev. June 10, 2010) SECTION 16 ORGANIZATIONAL INFORMATION 16.1 At the time of execution of this Agreement and whenever required by a change in circumstances, for example, election of new officers or renewal of IRS 501(c)(3) status, the JEA shall provide the County's representative(as listed in Section 13 above)with the following records or documents: a) Names and one contact point(for example,phone number, e-mail or L'SPS mailing address) of all JEA officers; b) Current JEA bylaws: c) Documentation of non-profit status pursuant to state and federal laws; The obligation of JEA to update one of these categories of information shall not require JEA to update all of these categories if there has been no change in one or more of the other categories. Annually the JEA shall also provide the County's representative with a description of all programs and events of the JEA in the preceding year, and a description of all current or planned programs and events of the JEA in the coming year. SECTION 17 OPERATION CONTINGENT UPON STATE D.O.E. APPROVAL The subject land area is presently zoned as "Solid Waste — Essential Public Facility." Since closure of the County's landfill and septage lagoon in 1993, this land area has served as a buffer zone and contains gas and groundwater monitoring wells within its boundaries which are part of the County's on-going landfill and septage lagoon monitoring program. The monitoring program is guided by the Revised Code of Washington and its on-going administration is a condition of a Solid Waste Facility Permit. Permit compliance is monitored by Jefferson County Public Health, as directed by the Washington State Department of Ecology. As such, permitting land use activities outside of those defined by the permit conditions requires the coordination between Jefferson County Public Works, Jefferson County Public Health and the Washington State Department of Ecology of a number of adjustments to on-going closed landfill and septage lagoon operations permits and planning guidelines. Such adjustments are not yet complete and the JEA enters into this Operating Agreement with the full knowledge that approval of an equestrian events center to he located upon the subject property by permitting agencies of the County and the State is neither complete nor is it guaranteed. Therefore, The JEA agrees that the County shall not be liable to the Licensee/Operator for any expenses or costs incurred by the Licensee/Operator if the proposed equestrian events center for any reason does not become an approved use at the Property. The JEA also agrees that it shall be liable for any expenses or costs incurred in satisfying any and all solid waste permit conditions if JEA operations or the location proposed for JEA operations are found to fall under the conditions of the Closed Landfill and Septage Lagoon Permit as issued by Jefferson County Public Health. Page - 18 - (Rev. June 10,2010) THIS OPERATING AGREEMENT requires the signature of all parties and shall be considered to have been executed as of the date of the last signature below. IN WITNESS WHEREOF the parties have hereunto set their hands and seals: AP.PRQVEINAND"ADOPTED this , day of _..i _ ;_,;w 2010. St t' '"' JEFFERSON COUNTY M y . .1 BOARD OFt'OMMISSIONERS 7./7 111'1 ( / • C .1 . t„x . . David . Sull lv�an.` :'hair •.. -. v t . . , ir . / John Austin, Member r 1� lif"m,L"Member Erin Lundgren t �Deputy Clerk of the Board Phi `' STATE OF WASHIN G"I'ON COUNTY OF JEFFERSON APPIIOVED AS TO FORM: ,r;t('} Yq-. tin L^ °T t. i.i�t. *1 41 t,, fir.- Deputy Prosecuting Attorney J Date: t - f r /✓ / 4.— On this i''' -lay of ,;.._,, 2010, before me,the undersigned, a Notary Public in and for the State of Washington, duly commissioned and sworn, personally appeared JOHN AUSTIN, PHIL JOHNSON, and DAVID SULLIVAN to me known to be a members of the Jefferson County Board of Commissioners of the County that executed the foregoing instrument,and acknowledged the said instrument to be the free and voluntary act and deed of said County, for the uses and purposes therein mentioned, and on oath stated that he is authorized to execute the said instrument and that the seal affixed is the seal of the County of Jefferson. v.Witness my hand and official seal hereto affixed the day and year first abt vtgl qM y ``,,aa.�utq,�� t, / .174' :0 51 ; Z Notary Public In and For the State of Washington t : a •- - O iv'•,,, 8-30' s- i Ali OF*�' -:� Page - 19 - (Rev.June 10,2010) OPERATOR: Jefferson Equestrian Association Y.U. Box 1069 Port Townsend, WA 98368 - 117A_,,t4OL Kim McG , Pr side STATE OF WASHINGTON COUNTY OF JEFFERSON On this L- day of 3;4_l+..E = , 2010, before me, the undersigned, a Notary Public in and for the State of Washington, duly commissioned and sworn, ir°. i 1EV (!,..c, —.:. ,personally appeared to me known to be the r'v : it'tc" i-t; .it IA , and acknowledged the said instrument to be the free and voluntary act and on oath stated that he is authorized to execute the said instrument. Witness my hand and official seal hereto affixed the day and year first above written. ,�. 1 otrtiuuttillk i Nota y Public In and For the State of Washington ` N, -e s wo r4400. V s M a care wI Lto IYAS%" ►r'��v, ENI)OF OPERATING AGREEMENT jr»mttaattttt Page -20 - (Rev. June 10,2010) EXHIBIT A APN: 001 l 72002 JEFFERSON COUNTY/JEFFERSON EQUESTRIAN ASSOCIATION OPERATING AGREEMENT AREA LEGAL DESCRIPTION PARCEL A THE NORTH HALF OF THE NORTHWEST QUARTER (NI/2. NWI/4) OF SECTION 17, TOWNSHIP 30 NORTH. RANGE I WEST OF THE WILLAMETTE- MERIDIAN, JEFFERSON COUNTY, WASHINGTON. EXCEPT THAT PORTION DESCRIBED AS FOLLOWS: BEGINNING AT THE NORTHEAST CORNER OF LOT ".J"OF MAT'S LONG PLAT, AS PER PLA T RECORDED IN VOLUME 7 OF PLATS.. PAGES 124 AND 125, RECORDS OF JEFFERSON COUNTY WASHINGTO'1 THENCE SO1°52'35"WALONG 711E WEST LINE OF THE NORTH HALF OF THE NORTHWEST QUARTER OF SAID SECTION 17, A D15T4.VCE OF 611.62 FEET; THENCE N27°01 '41"E, A DISTANCE E OF 272.17 FEET; THENCE N08°29'34"W A DISTANCE OF 340.72 FEET',' THENCE N59°08'19"W A DISTANCE OF 62.13 FEET TO THE POINT OF BEGINNING. TOGETHER WITH.- THAT PORTION OF LOT '"J"ANDA PORTION OF TRACT I OPEN SPA CE OF 1VAAT'S LONG PLA T, AS PER PLA7'RECORDED IN VOL LIME 7 OF PLATS, PAGES 124 AND 125, RECORDS OF JEFFERSON COUNTY. WASHINGTON LYING SOUTH OF THE FOLLOR1NG DESCRIBED LINE: BEGINNING AT A POINT ON THE WEST LINE OF 111E NORTH HALF OF THE NORTHWEST QUARTER OF SAID SECTION 17, SAID POINT LYING NO 1°52'35"E, A DISTANCE OF 166.98 FEET FROM THE SOUTHWEST CORNER OF SAID NORTH - HALF OF THE NORTHWEST QUARTER, THENCE N88°07'25"W. A DISTANCE_ OF 165.67 FEET TO THE SOUTH LINE OF SAID LOT "J" ALL DISTANCES S AND BEARINGS RELATIVE TO THE WASHING7'ON STATE COORDINATE SYSTEM OF 1983. Page - 21 - (Rev. June 10,2010) EXHIBIT B RECORD OF SURVEY PRIOR TO BOUNDARY LINE ADJUSTMENT lligi 9r '41 I ' 5 di I 12;IP lial -----\ g< r hill � 3 , !Jtj v� tRi Acb �b � I ��I, 5in k •1 1r i� s I OiNa 1g 1 ' Or Aq$41 ,t.00044 1,,,FP / a ! t 7 a I wit$� - �I # +� I§ 1 i. t....,..4L @,, 1,1 & k R Y 11. '-.ss'otc f —~.si I[t - <Al"" ` - f i V-�f'3.of',a��` R gV.:1_1.1 _ M^ } ! ;ill S t. 'f '" § Pi rs 1 sg ' ,_ _/ e tf ` ji x Hri: 8+ r t diLl L Ti I QI Pi- i iri 1 co 1 III i 1 I $ 11 1 a , t ! 4 r-• 6 dr —g"20ri ill0 : t- til Q b1 it }s t / 1 , _.7.....__ lilt i . � L r� d4 0 111 i 1: i g , i a� Ti X; -VI ' lilt at 1iIIi1Ii; t14 „a .ortcre 7.9C.eG10 w • 4 ILI-lig/0 LI Y ir 9 5,6 71 - ' tiP i- 151, Lii .F7-, i, , :04/1iill1ili Page - 22 - (Rev.June 10,2010) EXHIBIT C RECORD OF SURVEY SFIOWING RESULTS OF BOUNDARY LINE ADJUSTMENT AND ACQUISITION OF ACCESS AREA PROCEDURES • RECORD OF SURVEY A a e �B SNOWING RESULTS OF MLA08-00425 BOUNDARY UNE ADJUSTVENT in.AO*Aa e.Ar MN a tAaW.rr ANNAN R1TrIN� oNN019 to MC xr-.rr-aa THE NE 1/4, SEC. 18 AND THE NW 1/4 SEC. 17, T. 30, N.,R. 1 W., W.M. 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LA 202290[9 ANN MOM A A OW A FAAGtf ` I [l OAF aPOii A04 ANr.or-mor 14Wa*Onto mak,Or tooDOF 20 NAN Ammo P9rAoss \ t OF,AMA: i-V'Form.ror VOW 011441 cow Aorp.rt Pill.Cw.1PL LLCM utot+s aa9Arne Poop �\ .L _ _ 2.,,,,A1O A oor Ow,Nam MN.NAPOC \\ • &I4 NAN NV*WO flA.0 MA. 4 Or AN LLt t V orho AA14 rAa'N • B.._..a,AAN'OM.ta55W11(AFA9r. Ti 2.- -.2L101.1,1Fr•-- II s►.[w aMRArrm'ann AN%Lf Abe' `�.yv GA/a/A xa%.YOr .�.�,, �--. .._.WNW MJ. NaM Y•0 Ayrr• 1r9h 1 ••'ham 'I t. A I_J 9 iO ( • '\ .....a0.•a aMr�unrxaA . \.,/All \ aR IPI AMs x a a rr¢ . s1A FLOW DATA rAO A NIL o ,i ' \ `.,.,. T'/ JEFFFIRSON COUNTY APPROVALS , AVM.,MCA MwR e'4 NNW ,5• �yy�. I I I i t JO A'.A'a MM. P' fl7�A� ..I \`\ Or NON.t MEL"NW rj /r / 11lit ly diilCfG ' tin cl�/�'J 1 )♦��r In .fFk t n55 k MOT TO 4Ga[E v AUOITOR•S CERTIFICATE '• , M i _�/� 1 EURA tyres CERTIFICATE WO MR REGOPO MS_�i OAY W__'!YJ___I003. Al I .E A \\`'-�/ R WCOMM,'RFw4'7[h3 A SWOOP'11A0[LY AS OP DDAqpEE Tnqp+yr M CW%W 111 1BW iME RfOLfefNL.Y1J N BOLO A or%AVM WA-114 _recatos OF-UM W+CORM i� t a oaMPia r--wag rr CO,AE OIONINErr ere AC.Al S A WEBRU R.RSEA9MM L� �(:Jlh7 OEpARBk'M a ALYUC WINS a r[BaUAY,RICO Al at9RNC[01i AT AO.09aN+OF'MN ALTER SMRotriva n meow t v.. O_WpIRMA OM •., . A!..*rl0 r.N.7 ' ."bRMN WeMlE1I LS JUGS �iF Ili _�—{{ DAWN Caen SON-_ _. Y..N p[ M 02.Q _. ___.."._ _".. -..__. ORB_-CY5T4. _..rqc PR ne-. "t MYkr! r • Page - 23 - (Rev. June 10,2010) EXHIBIT D APPROXIMATE LOCATION OF GAS AND WATER MONITORING WELLS ._.�.._. . � . . .. . . . .�......... .. .. . ....��... . 1 : ! , 1 � ; I.i ___ !i 1 \ \ \} ` { : f \1 i I I} ri ! . i , ! \ yy i yy § I .... e = , . .i. ; . • ...0 » 2 a . �+ .. , ba \K : , / . . ( §g § 3 ! \( : u\■ 4041 ; I 11 a ! ! { I Q g: i 111,1 ;Ill.(' P.•OP > ^� ! / � .. » | ! i k ! } k ( 0 ;N 1 # . 11 f |. f �� ... ... _. _ ... | | . ; : , - ' ® �/|q 4 1 } ¥ : tI | 1... . /; i i , , Mti. : a a ; l |!ir 1 ' 1 IMP ' ` !1 �./. \ . . . . . . . i• . \j{ ;it / y] Ii . . it 1-'; , J/ E k : #I a. ! i ! /ƒ!;i i ; , } ƒI. , 1 }\// a i \ . L; I & � � ` ' : |i:+1.:.. :. _. . k. . .. _ c [ .� ' 1 % ( : ( y, . . ._ . ___ � . .. i1: : Page -24 - (Rev.June 10,20 EXHIBIT E EQUESTRIAN EVENTS CENTER BENCHMARKS Within the first five (5)years upon signing of License and Operating Agreement JEA will have: • Applied for and obtained a County-issued Conditional Use Permit • Complied with all conditions made part of said Conditional Use Permit and assured continue compliance with those conditions • An operational first arena, said arena to be ready for use for shows and small events • Constructed a cross country course • Constructed a safety trail/road The following will be added within ten (10)years: • Round pen • 20 horse enclosures • Two judges booths • Addition of water and electricity (unless required sooner by the Conditional Use Permit) • Storage • Second outdoor arena Completion of the infrastructure will include, as remaining resources are available: • Covered arena • Additional 40 horse enclosures • Show office • Additional public parking Page - 25 - (Rev. June 10,201.0) 1. Exhibits B, C& D do not meet recording requirements. See page 17, section 14.14 explaining location of those documents