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HomeMy WebLinkAbout20-022 - Highline Water District - Tolling Agreement20-022(d) Council Approval N/A FOURTH AMENDMENT TO TOLLING AGREEMENT This Fourth Amendment to Tolling Agreement ("Fourth Amendment") is made and entered into by and between Highline Water District, a Washington municipal corporation ("District"), and the City of Tukwila, a Washington municipal corporation ("City") (individually a "Party" and collectively the "Parties") for the purposes set forth herein. RECITALS WHEREAS, the District and the City have an intertie connection of their water systems located at or in the vicinity of So. 180th St. and Andover Park West in Tukwila, Washington (referred to herein as the "Intertie"). WHEREAS, the Intertie is the subject of an Agreement for Emergency Sale of Water between the District and the City dated March 31, 2000. WHEREAS, the District and the City have a dispute relating to District water that was conveyed to the City through the Intertie (the "Dispute"). WHEREAS, the Parties entered into a Tolling Agreement, effective as of February 24, 2020, that was intended to allow them to devote their energies to efforts to resolve the Dispute rather than engaging in immediate litigation. WHEREAS, due in part to delays relating to the COVED -19 pandemic and related federal, state and local declarations of emergency, the Parties entered into the First Amendment to Tolling Agreement dated October 13, 2020, to allow the Parties to engage in discussions and related efforts explore whether there are reasonable opportunities to resolve the Dispute without litigation. WHEREAS, the District and the City entered into a Second Amendment dated June 3, 2021, and a Third Amendment dated December 10, 2021, which provided additional time for the Parties to review and consider a mechanism to resolve the Dispute which involved the installation of a pump that will allow for the reconveyance of water from the City to the District through the Intertie. The First, Second and Third Amendments to Tolling Agreement are referred to herein collectively as the "Amendments to Tolling Agreement." WHEREAS, since entering into the Amendments to Tolling Agreement, the Parties have made significant progress on a possible mechanism to be used to resolve the Dispute, and with the support of the Cascade Water Alliance, are seeking review of the contemplated water reconveyance arrangement with Seattle Public Utilities. WHEREAS, both Parties remain committed to the original goal of the Tolling Agreement and additional time is necessary to finalize the settlement agreement(s) to document the terms of settlement. NOW, THEREFORE, in consideration of the terms and conditions set forth herein, the 1615235.1 - 356659 -0226 1 Parties agree as follows: AMENDMENT 1. Incorporation of Recitals. The Recitals are incorporated herein in full by reference into this Tolling Agreement. 2. Fourth .....Amendment ...of Tolling Ag -eement. Paragraph 2 of the Tolling Agreement ,m„ ....mm .,. is amended to read as follows: 2. Effective and Expiration Dates. The effective date ("Effective Date") of this Tolling Agreement shall be 12:00 a.m. (Pacific Time) on February 24, 2020. This Tolling Agreement shall expire at 11:59 p.m. (Pacific Time) on December 31, 2022 December 31, 2021 ("Expiration Date"); provided, however, that either Party may terminate the Tolling Agreement prior to the Expiration Date upon sixty (60) days' advance written notice. The 60 -day notice period shall begin on the date the Party sent the written notice as provided by Paragraph 7, below. In the case of a termination by written notice, the "Expiration Date" shall be the expiration date of the 60 -day notice period. 3. Remaining Terms Unchangd. Except as otherwise provided in this Fourth Amendment, all other terms and conditions of the Tolling Agreement, shall remain unchanged. IN WITNESS WHEREOF, the Parties have caused this Fourth Amendment to Tolling Agreement to be executed by their duly authorized representatives on the dates listed below. CITY OF TUKWILA By Dated Key: U,ae51,5,5f0K.eeSKIUS,Yddiebree,c Allan Ekberg, Mayor ATTEST 06/22/2022 ?h4za C32(ahe 1 Key: JCI,MCSallheC0.2.1.5151050J5ec1251.51D Christy O'Flaherty, City Clerk HIGHLINE WATER DISTRICT AS By For verett, General Manager Dated 21 Zz, APPROVED AS TO FORM APPROVED AS TO FORM Key: UOKK3oft,aclIDS.066,16,DKJ,KlalcUaY Kari L. Sand, City Attorney 1615235.1 - 356659 -0226 2 5,14 99dmodt Eric Frimodt, District ............................................................................. ._ legal counsel 20-022(c) Council Approval: N/A THIRD AMENDMENT TO TOLLING AGREEMENT This Third Amendment to Tolling Agreement ("Third Amendment") is made and entered into by and between Highline Water District, a Washington municipal corporation ("District"), and the City of Tukwila, a Washington municipal corporation ("City") (individually a "Party" and collectively the "Parties") for the purposes set forth herein. RECITALS WHEREAS, the District and the City have an intertie connection of their water systems located at or in the vicinity of So. 180th St. and Andover Park West in Tukwila, Washington (referred to herein as the "Intertie"). WHEREAS, the Intertie is the subject of an Agreement for Emergency Sale of Water between the District and the City dated March 31, 2000. WHEREAS, the District and the City have a dispute relating to District water that was conveyed to the City through the Intertie (the "Dispute"). WHEREAS, the Parties entered into a Tolling Agreement, effective as of February 24, 2020, that was intended to allow them to devote their energies to efforts to resolve the Dispute rather than engaging in immediate litigation. WHEREAS, due in part to delays relating to the COVID-19 pandemic and related federal, state and local declarations of emergency, the Parties entered into the First Amendment to Tolling Agreement dated October 13, 2020, to allow the Parties to engage in discussions and related efforts explore whether there are reasonable opportunities to resolve the Dispute without litigation. WHEREAS, the District and the City entered into a Second Amendment dated June 3, 2021, which provided additional time for the Parties to review and consider a mechanism to resolve the Dispute which involved the installation of a pump that will allow for the reconveyance of water from the City to the District through the Intertie. WHEREAS, since entering into the First and Second Amendments to Tolling Agreement, the Parties have made significant progress on a possible mechanism to be used to resolve the Dispute, and with the support of the Cascade Water Alliance, is seeking review of the contemplated water reconveyance arrangement with Seattle Public Utilities. WHEREAS, both Parties remain committed to the original goal of the Tolling Agreement and additional time is necessary to finalize the settlement agreement to document the terms of settlement. NOW, THEREFORE, in consideration of the terms and conditions set forth herein, the Parties agree as follows: 1489698.2-356659-0226 1 AMENDMENT 1. Incorporation of Recitals. The Recitals are incorporated herein in full by reference into this Tolling Agreement. 2. Third Amendment of Tolling Agreement. Paragraph 2 of the Tolling Agreement is amended to read as follows: 2. Effective and Expiration Dates. The effective date ("Effective Date") of this Tolling Agreement shall be 12:00 a.m. (Pacific Time) on February 24, 2020. This Tolling Agreement shall expire at 11:59 p.m. (Pacific Time) on June 30, 2022December 31, 2021 ("Expiration Date"); provided, however, that either Party may terminate the Tolling Agreement prior to the Expiration Date upon sixty (60) days' advance written notice. The 60 -day notice period shall begin on the date the Party sent the written notice as provided by Paragraph 7, below. In the case of a termination by written notice, the "Expiration Date" shall be the expiration date of the 60 -day notice period. 3. Remaining Terms Unchanged. Except as otherwise provided in this Third Amendment, all other terms and conditions of the Tolling Agreement, shall remain unchanged. IN WITNESS WHEREOF, the Parties have caused this Third Amendment to Tolling Agreement to be executed by their duly authorized representatives on the dates listed below. CITY OF TUKWILA HIGHLINE WATER DISTRICT - wow (747 By I. . tar.benavrv.414.‘1;12.x;Srcs.ia4 Allan Ekberg, Mayor Dated ATTEST efncal avaraloworgoza.cail - C9Ate, CA4takete-.9 - Rory. 0.7411.0041k4H01.0.1haeh..11.<03 Christy O'Flaherty, City Clerk By Matt Everett, General Manager Dated / 27 /0 APPROVED AS TO FORM APPROVED AS TO FORM 1 16 651.7...MILLOcuounua$6.6.,02, Kari L. Sand, City Attorney BS HP 1489698.2 - 356659 -0226 2 tA),1-6-"r Eric Frimodt, District legal counse 20-022(b) Council Approval N/A SECOND AMENDMENT TO TOLLING AGREEMENT This Second Amendment to Tolling Agreement ("Second Amendment") is made and entered into by and between Highline Water District, a Washington municipal corporation ("District"), and the City of Tukwila, a Washington municipal corporation ("City") (individually a "Party" and collectively the "Parties") for the purposes set forth herein. RECITALS WHEREAS, the District and the City have an intertie connection of their water systems located at or in the vicinity of So. 180th St. and Andover Park West in Tukwila, Washington (referred to herein as the "Intertie"). WHEREAS, the Intertie is the subject of an Agreement for Emergency Sale of Water between the District and the City dated March 31, 2000. WHEREAS, the District and the City have a dispute relating to District water that was conveyed to the City through the Intertie, the cost of which remains unpaid (the "Dispute"). WHEREAS, the Parties entered into a Tolling Agreement effective as of February 24, 2020 that was intended to allow them to devote their energies to efforts to resolve the Dispute rather than engaging in immediate litigation. WHEREAS, due in part to delays relating to the COVID-19 pandemic and related federal, state and local declarations of emergency, the Parties entered into the First Amendment to Tolling Agreement dated October 13, 2020 which provided additional time through June 30, 2020 for the Parties to engage in discussions and related efforts to explore whether there are reasonable opportunities to resolve the Dispute without litigation. WHEREAS, since entering into the First Amendment to Tolling Agreement, the Parties have made significant progress on the mechanism to be used to resolve the Dispute which involves the installation of a large pump that will allow for the repayment of water through the Interie. WHEREAS, both Parties remain committed to the original goal of the Tolling Agreement and additional time is necessary to install the required pump and to otherwise allow the Parties time to negotiate and enter into a settlement agreement to document the terms of settlement. NOW, THEREFORE, in consideration of the terms and conditions set forth herein, the Parties agree as follows: AMENDMENT 1. Incorporation of Recitals. The Recitals are incorporated herein in full by reference into this Tolling Agreement. 1190237.4 • 356659 -0226 1 2. Second Amendment of Tolling Agreement. Paragraph 2 of the Tolling Agreement is amended to read as follows: 2. Effective and Expiration Dates. The effective date ("Effective Date) of this Tolling Agreement shall be 12:00 a.m. (Pacific Time) on February 24, 2020. This Tolling Agreement shall expire at 11:59 p.m. (Pacific Time) on December 31, 2021 June 30, 2021 ("Expiration Date"); provided, however, that either Party may terminate the Tolling Agreement prior to the Expiration Date upon sixty (60) days' advance written notice. The 60 -day notice period shall begin on the date the Party sent the written notice as provided by Paragraph 7, below. In the case of a termination by written notice, the "Expiration Date" shall be the expiration date of the 60 -day notice period. 3. Remaining Terms Unchanged. Except as otherwise provided in this Second Amendment, all other terms and conditions of the Tolling Agreement, shall remain unchanged. IN WITNESS WHEREOF, the Parties have caused this Second Amendment to Tolling Agreement to be executed by their duly authorized representatives on the dates listed below. CITY OF TUKWILA HIGHLINE WATER DISTRICT By C7/(Leu 6A-Ge/cg Ke}: U.,,,Kie,aJJ.2ee,leJbJcleacSolD2J7 Allan Ekberg, Mayor Dated 06/03/2021 ATTEST Chircv �.6/GezhPAzg Christy O'Flaherty, City Clerk By Matt Everett, General Manager Dated div /2. / c) / APPROVED AS TO FORM APPROVED AS TO FORM Cl�a/tG oe. (1,5)a i-eK Kari L. Sand, City Attorney Eric Frimodt, District legal counsel 1190237.4 - 356659 -0226 2 20-022(a) Council Approval N/A FIRST AMENDMENT TO TOLLING AGREEMENT This First Amendment to Tolling Agreement ("Amendment") is made and entered into by and between Highline Water District, a Washington municipal corporation ("District"), and the City of Tukwila, a Washington municipal corporation ("City") (individually a "Party" and collectively the "Parties") for the purposes set forth herein. RECITALS WHEREAS, the District and the City have an intertie connection of their water systems located at or in the vicinity of So. 180th St. and Andover Park West in Tukwila, Washington (referred to herein as the "Intertie"). WHEREAS, the Intertie is the subject of an Agreement for Emergency Sale of Water between the District and the City dated March 31, 2000. WHEREAS, the District and the City have a dispute relating to District water that was conveyed to the City through the Intertie, the cost of which remains unpaid (the "Dispute"). WHEREAS, the Parties entered into a Tolling Agreement effective as of February 24, 2020 that was intended to allow them to devote their energies to efforts to resolve the Dispute rather than engaging in immediate litigation. WHEREAS, due in part to the COVID-19 pandemic and related federal, state and local declarations of emergency, the Parties have not been able to fully engage in discussions and related efforts to explore whether there are reasonable opportunities to resolve the Dispute without litigation, but both Parties remain committed to the original goal of the Tolling Agreement. NOW, THEREFORE, in consideration of the terms and conditions set forth herein, the Parties agree as follows; ❑ NT 1. Incorporation of Recitals. The Recitals are reference into this Tolling Agreement. 2. Amendment of Tolling Agreement. Paragraph amended to read as follows: incorporated herein in full by 2 of the Tolling Agreement is 2. Effective and Expiration Dates. The effective date ("Effective Date") of this Tolling Agreement shall be 12:00 a.m. (Pacific Time) on February 24, 2020. This Tolling Agreement shall expire at 11:59 p.m. (Pacific Time) on June 30. 2021 ("Expiration Date"); provided, however, that either Party may terminate the Tolling Agreement prior to the Expiration Date 1190237,1-356659.0225 upon sixty (60) days' advance written notice. The 60 -day notice period shall begin on the date the Party sent the written notice as provided by Paragraph 7, below. In the case of a termination by written notice, the "Expiration Date" shall be the expiration date of the 60 -day notice period. 3. Remaining Terms Unchanged. Except as otherwise provided in this Amendment, all other terms and conditions of the Tolling Agreement shall remain unchanged. IN WITNESS WHEREOF, the Parties have caused this First Amendment to Toiling Agreement to be executed by their duly authorized representatives on the dates listed below. CITY OF TUKWILA By Allan Ekberg, Mayor Dated 10/13/2020 A1"t'EST C?hh.e:arj )th&cr-J Christy O'Flaherty, City Clerk APPROVED AS TO FORM cjir Qjartd Kari L. Sand, City Attorney 1190237.1- 356659 -0226 HIGHLINE WATER DISTRICT By Matt Everett, General Manager Dated APPROVED AS TO FORM W���� � UI o� UIIh � , Vu Eric Frimodt, District legal counsel 2 20-022 Council Approval N/A TOLLING AGREEMENT This Tolling Agreement ("Tolling Agreement") is made and entered into by and between Highline Water District, a Washington municipal corporation ("District"), and the City of Tukwila, a Washington municipal corporation ("City") (individually a "Party" and collectively the "Parties") for the purposes set forth herein. RECITALS WHEREAS, the District and the City have an intertie connection of their water systems located at or in the vicinity of So. 180th St. and Andover Park West in Tukwila, Washington (referred to herein as the "lntertie"). WHEREAS, the District and the City have a dispute relating to District water that was conveyed to the City through the Interne, the cost of which remains unpaid (the "Dispute"). WHEREAS, the Parties desire to devote their energies to efforts to resolve the Dispute rather than engaging in immediate litigation. NOW, THEREFORE, in consideration of the terms and conditions set forth herein, the Parties agree as follows: AGREEMENT 1. Incorporation of Recitals. The Recitals are incorporated herein in full by reference into this Tolling Agreement. 2. Effective and Expiration Dates. The effective date ("Effective Date") of this Tolling Agreement shall be 12:00 a.m. (Pacific Time) on February 24, 2020. This Tolling Agreement shall expire at 11:59 p.m. (Pacific Time) on December 31, 2020 ("Expiration Date"); provided, however, that either Party may terminate the Toiling Agreement prior to the Expiration Date upon sixty (60) days' advance written notice. The 60 -day notice period shall begin on the date the Party sent the written notice as provided by Paragraph 7, below. In the case of a termination by written notice, the "Expiration Date" shall be the expiration date of the 60 -day notice period. 3. Tolling of Statutes of Limitation. The Parties hereby agree that in any litigation between them relating to or arising out of the Dispute described in the Recitals above, no Party, in asserting any affirmative defense based on any limitations period, including, without limitation, statutes of repose and limitation, laches, or bar to action for failure to timely make demand or to timely file (collectively, "Statutes of Limitation"), shall in its computation of time for such defense include any time which elapses between and including the Effective Date and the Expiration Date (the "Tolling Period"). Notwithstanding the foregoing, each Party hereby expressly reserves its right to assert a defense (a) based upon the expiration of any of the Statutes of Limitation prior to the Effective Date or (b) which is otherwise available to such Party. 996825.1- 356659 -0226 1 4. Effect on Prejudgment Interest. If a Party obtains a judgment against the other Party with respect to the Dispute described in the Recitals above, the prevailing Party shall exclude the Tolling Period in the computation of any prejudgment interest. The provisions of this Paragraph 4 shall survive the Expiration Date. 5. No Admission of Fault. No Party admits any breach, fault, or liability of any kind, and no Party waives or concedes any claim or defense, relating to or arising out of the Intertie Agreement or otherwise related to the Dispute. 6. Fees and Costs. The rights of any prevailing Party to recover attorneys' fees and costs incurred in enforcing the Intertie Agreement pursuant to the terms thereof, if any, is unmodified by this Tolling Agreement. 7. Notice. Formal notice under and official communications between the Parties regarding this Tolling Agreement shall be sent by first class mail as follows: To the City: To the District: City of Tukwila Highline Water District Attn. Mayor Attn. General Manager 6200 Southcenter Blvd. 23828 30"' Ave. S. Tukwila, WA 98188 Kent, WA 98032 8. Justifiable Reliance. The City acknowledges and agrees that the District is justifiably and reasonably relying upon the terms and conditions set forth in this Tolling Agreement, that the Statutes of Limitation are subject to being tolled, and that this Tolling Agreement is enforceable in accordance with its terms. 9. Authority. Each Party represents that this Tolling Agreement has been duly and validly authorized, executed and delivered by such Party and no other action is requisite to the valid and binding execution, delivery and performance of this Tolling Agreement by such Party. 10. Counterparts. This Tolling Agreement may be executed in counterparts, and delivered via facsimile or other means of electronic image transmission, all of which counterparts, together, shall constitute one and the same instrument, be deemed an original for all purposes and be binding on the Parties as if all signatures were affixed to a single document. 996825.1-356659-0226 2 IN WITNESS THEREOF, the parties have caused this Tolling Agreement to be executed by their duly authorized representatives on the dates list below, CITY OF TUKWILA Allan Ekberg, Mayor Dated 3/ I f Zvzo ATTEST �" If Christy O'Flaherty, City Clerk APPROVED AS TO FORM City Attorney's • ' toe Counsel HIGHLINE WATER DISTRICT By Matt Everett, General Manager Dated 3 /9'12'_02.o APPROVED AS TO FORM °t .. � '. .A.AA44417> Eric Friamodt, District Legal