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Home My WebLink AboutAgenda AGENDA Utilities Committee Regular Meeting 4:15 PM - Monday, June 18, 2018 Council Conference Room, 7th Floor, City Hall – 1055 S. Grady Way 1. Temporary Easement and Agreement for Surface Water Drainage Overflow a) AB - 2160 Utility Systems Division Division recommends approval of the Fourth Amendment to Temporary Easement for Surface Water Drainage Overflow and Agreement with Segale Properties, LLC, which renews the City's temporary easement for an additional five years in exchange for declaring the monetary value of service provided by temporary easement to the City is equal to the amount of the Surface Water Utility fees to the Segale property, located on Monroe Ave NE just south of NE 4th St. AB - 2160 City Council Regular Meeting - 11 Jun 2018 SUBJECT/TITLE: Fourth Amendment to Temporary Easement for Surface Water Drainage Overflow and Agreement with Segale Properties LLC RECOMMENDED ACTION: Refer to Utilities Committee DEPARTMENT: Utility Systems Division STAFF CONTACT: Kevin Evans, Surface Water Utility Engineer EXT.: 7264 FISCAL IMPACT SUMMARY: By signing the Fourth Amendment, the Surface Water Utility annual rate revenue would be reduced by $25,616.04, the amount charged to the Segale property in 2018, in exchange for renewing the temporary easement for the storm system overflow. SUMMARY OF ACTION: In 1994 a large storm event caused the drainage system in Monroe Avenue NE, south of NE 4th Street (Exhibit A) to overflow, triggering erosion at the nearby gravel pit. In 1996 the city signed an agreement (Exhibit B) with La Pianta Limited Partnership (now Segale Properties LLC) to grant the city a temporary easement through the Segale property (property tax parcel number 1623059059) to construct, operate and maintain an 18-inch temporary overflow system from the city's existing storm system into the Segale property. This agreement was amended in 2006, 2007 and 2010 to renew the temporary easement and to increase the easement area to accommodate an additional 24-inch storm drain overflow. On April 2, 2018 Segale Properties LLC submitted to the city a Fourth Amendment to Temporary Easement agreement. This amendment proposes renewing the agreement for 5 additional years, but sets the value of the easement to be equal to the amount of the Surface Water Utility billing rate fees charged to the Segale property for the term of the agreement. The property is currently being billed under the gravel pit utility billing category. At a total parcel area of 14.44 acres, the Segale Properties LLC Surface Water Utility bill for 2018 is $25,616.04. For the city to create a permanent solution to the flooding problem would require a significant Surface Water Utility capital improvement project estimated to cost between $1-3 million and take 3-5 years to complete. As a temporary solution, the city proposes the Fourth Amendment (Exhibit C), which states that the monetary value of services provided by the temporary easement to the city is equal to the amount of the Surface Water Utility fees to the property. EXHIBITS: A. Vicinity Map B. 1996 Temporary Easement for Surface Water Drainage Overflow and Agreement C. Fourth Amendment to Temporary Easement for Surface Water Drainage Overflow and Agreement STAFF RECOMMENDATION: Execute the Fourth Amendment to Temporary Easement for Surface Water Drainage Overflow and Agreement with Segale Properties LLC, which will renew the city’s temporary easement for 5 years in exchange for AGENDA ITEM #1. a) declaring that the monetary value of services provided by the temporary easement to the city is equal to the amount of the Surface Water Utility fees to the property. AGENDA ITEM #1. a) EXHIBIT A - Vicinity Map AGENDA ITEM #1. a) Upper Balch Pit Greenwood Cemetery McDonalds Restaurant Approximate location of overflow Vicinity Map AGENDA ITEM #1. a) EXHIBIT B - 1996 Temporary Easement for Surface Water Drainage Overflow and Agreement AGENDA ITEM #1. a) AGENDA ITEM #1. a) AGENDA ITEM #1. a) AGENDA ITEM #1. a) AGENDA ITEM #1. a) AGENDA ITEM #1. a) AGENDA ITEM #1. a) AGENDA ITEM #1. a) AGENDA ITEM #1. a) AGENDA ITEM #1. a) EXHIBIT C - 2018 Proposed Fourth Amendment to Temporary Easement for Surface Water Drainage Overflow and Agreement AGENDA ITEM #1. a) 24267-0030/138907429.1 Page 1 of 5 Return Address City Clerk City of Renton 1055 South Grady Way Renton, WA 98057 Document Title(s) (or transactions contained therein): Fourth Amendment to Temporary Easement for Surface Water Drainage Overflow and Agreement Reference Number(s) of Related Documents: (on page ___ of document) 199612120153; 20060602001486; 20070928000176; 20110322000779 Grantor(s) (Last name first, then first name and initials): Segale Properties LLC Additional Grantor(s) on page 2 Grantee(s) (Last name first, then first name and initials): City of Renton Legal description (abbreviated: i.e. lot, block, plat or section, township, range): Portions of Section 16, Township 23 North, Range 5 Full Legal Description on page 5 (Exhibit A) Assessor’s Property Tax Parcel/Account Number: 1623059059 AGENDA ITEM #1. a) 24267-0030/138907429.1 Page 2 of 5 FOURTH AMENDMENT TO TEMPORARY EASEMENT FOR SURFACE WATER DRAINAGE OVERFLOW AND AGREEMENT THIS FOURTH AMENDMENT TO TEMPORARY EASEMENT FOR SURFACE WATER DRAINAGE OVERFLOW AND AGREEMENT (“Amendment”), dated as of _________ ____, 2018 (“Effective Date”), is entered into by and between SEGALE PROPERTIES LLC, a Washington limited liability company, successor by name change to LA PIANTA LLC, a Washington limited liability company, and successor by merger with LA PIANTA LIMITED PARTNERSHIP, (“Grantor”), and the City of Renton, a municipal corporation (“Grantee”). RECITALS A. Grantor and Grantee entered into that certain Temporary Easement for Surface Water Drainage Overflow and Agreement, dated November 21, 1996 and recorded under Recording No. 9612120153, as amended by that certain Amendment to Temporary Easement for Surface Water Drainage Overflow and Agreement, dated May 30, 2006 and recorded under Recording No. 20060602001486 (the “First Amendment”), and that certain Second Amendment to Temporary Easement for Surface Water Drainage Overflow and Agreement dated September 26, 2007 and recorded under Recording No. 20070928000176, (the “Second Amendment”), and that certain Third Amendment to Temporary Easement for Surface Water Drainage Overflow and Agreement dated October 29, 2010 and recorded under Recording No. 20110322000779 (collectively, the “Agreement”), pursuant to which Grantor granted to Grantee certain rights for the conveyance and discharge of surface water over Grantor’s Property, as further described in the Agreement. Capitalized terms used in this Amendment shall have the same meanings given them in the Agreement unless stated otherwise. B. Grantor is the owner of certain real property, (the “Property”) located in the City of Renton, King County, Washington and legally described on Exhibit A attached hereto. C. The Agreement granted Grantee the right to make certain improvements within the Easement Area to allow for the Temporary Overflow System to provide Permitted Drainage onto the Property. D. Grantee has constructed all necessary improvements within the Easement Area and desire to continue using the Temporary Overflow System. E. The parties hereby agree to amend the Agreement to allow Grantee to continue using the Temporary Overflow System pursuant to the terms and conditions set forth below. AGREEMENTS 1. Recitals. The terms of the recitals are incorporated herein. AGENDA ITEM #1. a) 24267-0030/138907429.1 Page 3 of 5 2. Term. The Agreement is hereby amended by deleting Section 3 in its entirety, which was last amended in the Third Amendment, and substituting with the following: 3. TERM OF AGREEMENT. The Agreement shall be effective until five (5) years from the Effective Date and shall automatically renew for successive five (5) year periods unless within one hundred eighty (180) days from the expiration of the five year period then in-effect, Grantor and Grantee mutually agree in writing to terminate this Agreement, in which case this Agreement shall terminate at the expiration of the five year period then in-effect. Notwithstanding the foregoing, this Agreement may terminate on a sooner date in the event that (i) the current pit is filled to capacity and a new special use permit is required, or (ii) improvements have been made to Grantee’s existing storm sewer system which eliminates the need for the Temporary Overflow System and this Agreement. Under no circumstances shall this Agreement and the easement rights provided herein become permanent. Upon Grantor’s request, Grantee shall execute and deliver to Grantor an instrument in recordable form quit claiming and releasing to Grantor all rights and reaffirming the survival of Grantee’s obligations hereunder. In the event Grantor receives a special use permit subsequent to the Special Use Permit LUA10-056, ECF, SP, authorizing Grantor to continue to fill Grantor’s Property, and such special use permit contains substantially the same rights as granted under LUA10-056, ECF, SP, this Agreement shall be deemed immediately amended so that Grantee shall assume full responsibility for all conditions imposed on Grantor in the process of obtaining said special use permit which relate to or arise out of the rights granted to Grantee under the Agreement, or to storm water monitoring and sampling and testing of storm water on the Property. At Grantor’s request, Grantee shall execute an amendment to this Agreement setting forth Grantor’s obligations arising out of such subsequently issued special use permit. 4. Value of Easement and Surface Water Utility Fees. Commencing on the Effective Date and continuing during the term of this Agreement, and any renewal thereof, the Parties agree that the value of the services provided by the Temporary Easement to the Grantee (City) is equal to the amount of the Surface Water Utility Fees for Surface Water Utility services to Grantor’s Property Tax Parcel Identification Number 162305 9095, per the Renton Municipal Code (RMC) 8-2-3 utility billing rate category of Gravel Pits. The Parties agree the monetary value of the reciprocal services rendered are substantially the same. 5. No Other Changes and Integration. In all other respects, the Agreement, except as amended by this Amendment, is ratified and confirmed and shall remain without charge. Additionally, it is expressly understood and agreed that there are no other promises, agreements, conditions, understandings, inducements, warranties or representations, written, express or implied, between the parties hereto or their employees or agents with respect to this Amendment other than as herein set forth; and no prior agreements, understandings or representations pertaining as to any such matters shall be effective for any purpose. [Signatures Below] AGENDA ITEM #1. a) 24267-0030/138907429.1 Page 4 of 5 DATED as of the day and year first above written. GRANTOR: SEGALE PROPERTIES LLC, a Washington limited liability company By: Metro Land Development, Inc., its Manager By: Mark A. Segale, Vice President GRANTEE: CITY of RENTON, a municipal corporation By:__________________________ Denis Law, Mayor ATTEST: By:__________________________ Jason A. Seth, City Clerk Approved as to form: By:__________________________ Shane Moloney, City Attorney AGENDA ITEM #1. a) 24267-0030/138907429.1 Page 5 of 5 EXHIBIT A LEGAL DESCRIPTION A portion of the East ½ of the NE ¼ of the NW ¼ of Section 16, Township 23 North, Range 5 East, W.M. except the North 330 feet of the East 30 feet; Said portion being a strip of land (30) feet in width being fifteen (15) feet of such width on each side of the following described centerline; Commencing at the NE corner of the above described parcel; Thence southerly along the East line of said parcel 302.5 feet to the True Point of Beginning of the centerline; Thence westerly perpendicular to the East line of said parcel, 120 feet to the terminus of the centerline; All situate in the City of Renton, King County, Washington. AGENDA ITEM #1. a)