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Home My WebLink AboutRes 0996 - Addendum to Memorandum of Agreement - Metro Effluent Transfer System (ETS) RESOLUTION NO. 996 A RESOLUTION OF THE CITY COUNCIL OF Ci 1 Y OF TUKWILA, WASHINGTON, APPROVING AN ADDENDUM TO THE MEMORANDUM OF AGREEMENT BETWEEN THE CITY AND METRO FOR THE ETS PROJECT CONSTRUCTION, APPROVING THE FORM AND AMOUNT OF COMPENSATION FOR TEMPORARY AND PERMANENT EASEMENTS ACROSS THE FOSTER GOLF COURSE AND AUTHORIZING THE MAYOR AND CITY CLERK TO EXECUTE SAID DOCUMENTS ON BEHALF OF THE CITY. WHEREAS, the City of Tukwila and the Municipality of Metropolitan Seattle (Metro) entered into an Agreement on August 7, 1985 concerning construction of the Metro ETS project, and WHEREAS, said Agreement provided for the negotiation of temporary and permanent easements across Foster Golf Course for the ETS construction and provided that Metro is to compensate the City for lost revenues from the Foster Golf Course due to the ETS project, and WHEREAS, the City and Metro have negotiated the said temporary and permanent easements and the amount of compensation therefore and have also agreed upon a formula for determining lost revenues from the Golf Course, now, therefore, THE CITY COUNCIL OF THE CITY OF TUKWILA, WASHINGTON, HEREBY RESOLVE AS FOLLOWS: Section 1. Approval of Addendum. The City Council hereby approves that certain Agreement entitled "Addendum to Memorandum of Agreement between the Municipality of Metropolitan Seattle and the City of Tukwila Regarding Effluent Transfer System Construction." Section 2. Approval of Easements. The City Council hereby approves the form and the amount of compensation for temporary and permanent easements across the Foster Golf Course for the ETS construction as set forth on Exhibits A through D to the Addendum set forth in Section 1. A COPY OF EASEMENTS WAS GIVEN TO METRO, PICKED UP BY MATT HARRIS ON MARCH 20, 1986. ZA/ Section 3. Authorization for Signature. The Mayor is hereby authorized to execute and the City Clerk to attest to the addendums and easements approved in Sections 1 and 2 of this Resolution. PASSED BY THE CITY COUNCIL OF THE CITY OF TUKWILA, WASHINGTON, this /'Jffi day of 1986. APPROVED: s H. DUFFIE, N CIL PRESIDENT ATTEST /AUTHENTICATED: CITY LERK, MAXINE ANDERSON APPROVED AS TO FORM: OFFICE 0 THE CITY ATTORN Y BY r V FILED WITH THE CITY CLERK: PASSED BY THE CITY COUNCIL: 3 /r/— F6 RESOLUTION NO. 9906 ADDENDUM TO MEMORANDUM OF AGREEMENT BETWEEN THE MUNICIPALITY OF METROPOLITAN SEATTLE AND THE CITY OF TUKWILA REGARDING EFFLUENT TRANSFER SYSTEM CONSTRUCTION THIS ADDENDUM AGREEMENT is entered into between the City of Tukwila, Washington, hereinafter referred to as "the City" and the Municipality of Metropolitan Seattle, hereinafter referred to as "Metro WHEREAS, the City and Metro entered into that certain Agreement entitled "Memorandum of Agreement between the Municipality of Metropolitan Seattle and the City of Tukwila Regarding Effluent Transfer System Construction" on August 7, 1985, hereinafter referred to as "the Memorandum of Agreement," and WHEREAS, Section 14 of the said Memorandum of Agreement provides that the City and Metro agree that the form of all temporary construction easements and permanent easements necessary for construction of the ETS project through the Foster Golf Course shall be as described in Exhibits "C" and "D" to the Memorandum of Agreement, and WHEREAS, said Section further provides that the compensation payable by Metro for such easements, together with all Golf Course revenue losses shall be based upon negotiation between the City and Metro, and WHEREAS, the City and Metro have agreed upon revisions to the form of the easements to delete reference to lost revenues in the easement documents and have further agreed that such lost revenues should be covered by separate agreement between the parties, NOW, THEREFORE, in consideration of the mutual covenants and conditions hereinafter contained, the parties hereto agree as follows: Section 1. Form of Easements. The form of all easements to be granted by the City to Metro for construction of the ETS pipeline through Foster Golf Course, and the compensation and terms of payment by Metro to the City for such easements, shall be as described on Exhibits A through D attached to this Addendum Agreement. The City agrees to execute the temporary construction easements upon signature of this Addendum Agreement by Metro and further agrees to execute the permanent easements upon payment by Metro of the compensation specified therein. Section 2. Loss of Revenue. The City and Metro agree that losses in revenue from Golf Course operations due to Metro's construction of the ETS project should be guaranteed to be reimbursed to the City up to a maximum of Two Hundred Fifty Thousand Dollars ($250,000.00) based upon the following table of projected revenue. Metro agrees to deposit Two Hundred Fifty Thousand ($250,000) in a Metro /Tukwila escrow account within thirty (30) days of the execution of this Agreement. Said account shall be interest bearing and all interest thereon shall accrue to Metro. The City will submit documentation of actual Golf Course revenues on a monthly basis and within thirty (30) days of receipt of such documentation by Metro, the difference between the actual revenues and the projected revenues will be paid to the City from the escrow account. This procedure shall continue for the forty six (46) months beginning March 1, 1986 and ending December 31, 1989. ADDENDUM TO MEMORANDUM OF AGREEMENT Page 2 PROJECTED REVENUE BY THE MONTH PROJECTED REVENUE 2% GROWTH Month 1985 1986 1987 1988 1989 January 32,541 33.2 33.9 34.5 35.2 February 26,415 26.9 27.5 28.0 28.6 March 46,948 47.9 48.9 49.8 50.8 April 64,756 66.0 67.4 68.7 70.1 May 89,595 91.4 93.2 95.1 97.0 June 86,497 88.2 90.0 91.8 93.6 July 94,245 96.1 98.1 $100.0 $102.0 August 83,891 85.6 87.3 89.0 90.8 September 63,886 65.2 66.5 67.8 69.2 October 41,590 42.4 43.3 44.1 45.0 November 16,901 17.2 17.6 17.9 18.3 December 27,790 28.3 28.9 29.5 30.1 TOTAL $675,055 $688.4 $702.6 $716.2 $730.7 *These figures represent thousands of dollars The projected revenue used in the above table consists of the sum of the revenue derived from; 1) collection of greens fees (Net Greens Fees), 2) sale of food and beverages from the restaurant and lounge (Net Restaurant Sales), 3) pro shop sales including merchandise, lessons, services and all equipment rentals, etc. (Net Pro Shop Sales). The 1985 actuals are used as the base year and the projected revenue has been calculated at a 2% growth rate for each year of the years 1986, 1987, 1988 and 1989. Any upward adjustment of greens fees during this period shall be reflected in a proportionately higher projected revenues for the remaining periods. The documentation to be provided by the City to Metro under this Paragraph shall consist of the monthly revenue report received from the Golf Course Operator by the City's Finance Department. Said report shall set forth the Net Greens Fees, Net Restaurant Sales and Net Pro Shop Sales revenues. If actual revenues exceed the projected revenues, this excess will be carried forward as credits against losses which may occur in the months ahead. Any credits remaining at the end of this period (December 31, 1989) shall remain with the City. Metro's obligation to reimburse the City for revenue losses shall not exceed $250,000. The City agrees to utilize its best efforts to maintain and operate the Foster Golf Course complex in a manner consistent with current maintenance and operation practices. Section 3. Except as expressly modified by this Agreement, all terms and conditions of the Memorandum of Ageement between the parties dated August 7, 1985 shall remain in full force and effect. DATED THIS day of 1986. C TY I MUNICIPALITY OF METROPOLITAN SEATTLE: GRY'L. AN DUSEN, MAYOR ALLEN J. GIBBS, EXECUTIVE DIRECTOR ATTEST /AUTHENTICATED: MAXINE ANDERSON, CITY CLERK APPROVED AS TO FORM: OFFICE F 7HE CITY A T RNEY