HomeMy WebLinkAbout4183 Resolution - PWRF Beus Release of InterestBe Further Resolved
PASSED
Resolution -Beus Release of Interest in USBR Property Agreement -2
FILED FOR RECORD AT REQUEST OF:
WHEN RECORDED RETURN TO:
WHEREAS, Beus, Fann, andCityagreeitisintheinterestofthePartiestoenterintothisagreementforthemutualbenefitoftheparties. NOW, THEREFORE, INCONSIDERATIONOFTHEMUTUALCONVENANTSCONTAINEDHEREIN, thePartiesagreeasfollows: A.CityResponsibilities:Cityagrees, contingentonEcologyapproval: 1.Toprovideaminimumof100milliongallonsperyearanduptoamaximumof180milliongallonsperyearofPWRFtreatedwastewatertoBeusparcel #124690059forirrigationpurposesonupto160acres. Saidwastewatershallbeofsuchqualityastoproducehealthycrops, asdefinedbyindustrystandard. SaidwastewatershallbeatnochargetoBeusorFann. Further, Beusand/orFarmarenotrequiredtotakewaterwhentheydonotneedit, provided, thatBeusand/orFanntaketheminimumof100milliongallonsofwaterperyear.2.CityshallseekpermitapprovalfromEcologyforsaidwastewatertobeusedforirrigationpurposesonBeusparcel #124690059.3.CitytouseexistingPWRFirrigationpumpstationandconstructa12-inchHDPEforcemaintosoutheastcornerofBeusparcel # 124690059.4.EstimateddateforavailablePWRFirrigationwaterisMarch2024.S.CitytoprovidemaintenanceonallpumpsandundergroundpipesonCityproperty.6.CitytopayBeus $258,420within30daysofreceiptofapprovalofrevisedPWRFEngineeringReportandEcologypermitthatincludessaidBeusparcelaspartofCity'sPWRFlandtreatmentsystem.7.EstimateddateofEcologyapprovalisDecember2022.NotwithstandingEcologyapproval, Cityagrees, 1.TonegotiatealeasetoFannPWRFCircle10, 127acresinsize, forthe2023growingseasons (1year) underthefollowingconditions:a.Farmagreestogrowsilagecornandtriticaleb.PriortofanningPWRFCircle10, FannagreestonegotiateastandardPWRFleaseagreement, substantiallyinthesameformasprovidedinExhibitA, withCity, andfarmsaidCircleinaccordancewiththeleasetermsandconditions, bestPWRFpractices, andasrequiredtomeetEcologypermittingrequirements.BeusReleaseoflnterestinUSBRPropertyAgreement Page2of7
c.Farmagrees to pay City standard leaseamountasdetermined byCity's AgLeaseconsultant, which is the same as all other PWRF growers.d.Lease will begin March 2023, however, access to the Circle 10 will be madeavailabletoFarmnolaterthanSeptemberI, 2022, forprep work.2.IfCity does not receive Ecology approval by March31, 2023, foradding Beus parceltothePWRFLandTreatmentSystemutilizingthecroprotationidentifiedinthisagreement, CityagreestopayBeus $350,000 within 90 days.3.Within30-days ofCity acquisition ofUSBR parcel #I 13090058, Cityshall grant Beusanon-exclusive 30-foot-wideaccess easement along the followingproperty boundariesforagriculturalpurposestoaccessBeusfarmproperty.a.West side ofCity parcel # 113090085b.West side ofsubject USBR parcel #113090058c.Northside ofsubject USBR parcel #1130900584.Cityagrees to share use ofexisting access easementon Blasdel parcels #113100037 and#I 13100055, provided Blasdel grants access rights to Beus, a copy ofwhich to beprovidedtoCity. In the event that City acquires the Blasdel property described herein, then CitywillgranttoBeusanaccesseasementacrosssaidproperty.B.Beus and Farm Responsibilities:NotwithstandingEcology approval, Beus and Farmagree: 1.Within fivedays ofthe execution date ofthis agreement, to submit a letter to theEphrataofficeoftheUSBRstatingthereleaseallBeus' and Farm'sinterests in the purchase ofsaidUSBRparcelno. I13090058. A copy ofsaid letter to be providedto Cityat same timeofdeliverytoUSBR.2.Beus agrees to allow City immediate access to Beus parcel no. 124690059 forallnecessaryworkassociatedwiththeadditionofsaidparcelintothePWRFlandtreatmentsystem,including but limited to, survey, cultural resources evaluation, geotechnical exploration,groundwater monitoringwell installations, water and soils testing, andany otherneedrelatedtogettingapprovalbyEcology.3.Beus agrees to grant City, within one month ofexecution date ofthis agreement, twoaccessandutilityeasementsover, across, under, and within the followingdescribed areas:a.South 30 feetofBeus parcel #124690059, andb.A portion ofthe southwest comer ofBeus parcel #124700038 la rge enough tosweepfutureforcemainsintoUSBRparcel #I 13090058.Beus Release oflnterestin USBR Property Agreement Page 3 of7
4.Saideasementsshallbefortheinstallation, operation, andmaintenanceofundergroundpipesandair-vacassemblies (ifneeded) toprovideindustrialwastewatertoandfromCity'sPWRF.5.CityconstructionandmaintenanceworkwithinsaideasementsshallbecoordinatedwithBeusand/orFarmtominimizecropdamagetothemaximumextentpossible. IfcropdamageoccursasaresultofCityconstructionandmaintenanceworkrelatedtothisagreement, orasaresultoffailureofCityinstalledfacilitiesuponorundertheeasementsbasedonCity'snegligenceinmaintainingsuchfacilities, CityagreestoreimburseBeusand/orFarmfordamagedcropsatmarketratesandBeusandFarmforequipmentandlanddamage.ContingentonEcologyapproval, Farmand/orBeusagree: 1.UponEcologyapprovalofrevisedEngineeringReport, Farmand/orBeusagreetoinstallpivotandmainlineonBeusparcel #124690059forirrigationpurposes.2.WithEcologyapprovalofthedeliveryofPWRFirrigationwatertoBeusproperty, Farmand/orBeusagreetoreceivefromCityaminimumof100milliongallonseachyearforaminimumof20consecutiveyears. BeusapprovestheforegoingandagreestonegotiatetoenterintoaleasewithFarmtoallowFarmtoreceivethePWRFirrigationwaterpursuanttoanagreementbetweenCityandFarmreferredtoinSectionB (5).3.Farmand/orBeusagreestogrowonparcel #124690059potatoesthefirstyear, followedbyTriticaleforwintercovercrop. Forthesecondandthirdyear, comforsilagewillbegrownfollowedbytriticaleforwintercovercrop. Thisthree-yearcroprotationofoneyearofpotatoesfollowedbytwoyearsofcomwithatriticalewintercropeachofthethreeyearsshallbefollowedunlessanalternatecroprotationisotherwiseapprovedbyCityandFarmand/orBeus.4.Farmand/orBeusagreestoacceptpretreatedPWRFwastewater 'as-is' providedsaidwastewaterisnotharmful, basedonindustrystandards, tocropsandanymixingwatershallbeprovidedbyCityatnocosttoBeusorFarm.5.Farmand/orBeusagreestooperatepivotsonBeusparcelno. 124690059incoordinationwithCitytohelpensuretheCitymeetsEcology'spermitrequirementsforthePWRFlanddisposalsystem. ThiswillbeinthesamemannerasexistingPWRFgrowersthatareunderCityleaseagreements. ItistheintentofFarmandCitytoenterintoaPWRFIrrigationAgreementfortheirrigationofhereinreferredparcel#. Farmand/orBeusagreestoprovide, atnocosttoCity, allmaintenanceonpivotsandpipeslocatedwithinBeusparcel#124690059.6.IntheeventthatFarmandCityareunabletoenterintosuchIrrigationAgreementforanyreason, thentheCityagreestopayBeus $350,000within90daysofthefailureofenteringintosaidagreementandtheabovesections1-5ofthisagreementshallnotbeeffective.BeusReleaseoflnterestinUSBRPropertyAgreement Page4of7
C.Other Terms and Conditions:
1.Dispute Resolution.
Intheeventofdispute, thepartiesshallfirstmeetinagoodfaithattempttoresolvesuchdispute, withorwithouttheassistanceofmediation.Intheeventthedisputeremains, itshallberesolvedbybindingarbitrationpursuanttoRCW7.04A, asamended, andtheMandatoryRulesofArbitration (MAR) withallpartieswaivingtherightofajurytrialupondenovoreview. VenueshallbeplacedinFranklinCounty, Washington; thelawsoftheStateofWashingtonshallapply; andtheprevailingpartyshallbeentitledtoitsreasonableattorneyfeesandcosts.
2.Assignability.
ThisAgreement, andtherightsandresponsibilitieshereunder, shallnotbeassigned, conveyed, sublet, ortransferredbyBeusand/orFarmwithoutthepriorwrittenconsentoftheCity, whichconsentshallnotbeunreasonablywithheld. IfBeusand/orFarmwishestoleaseparcelno. 124690059forthesolepurposeofgrowingpotatoes, CityshallnotunreasonablywithoutconsentprovidedallrequirementsofthisagreementandtheaforementionedIrrigationAgreementremaintheresponsibilityofBeusand/orFann.
3.Notice.
AnynoticeorinformationrequiredorpermittedtobegiventothepartiesunderthisAgreementshallbetothefollowingaddresses, unlessotherwisespecified:CityofPascoMr. DaveZabell, CityManager525North3rdPasco, WA99301 (509)545-3404zabelld@pasco-wa.gov DonandQuallaBeusandBeusFarms. Inc. DonBeus502EVineyardLanePasco, WA9930I (
509)545-
9812beuscattle@pocketinet.comNoticeshallbedeemedgivenuponreceiptofpersonaldelivery, e-mailtransmission, orfive (5) daysafterdepositintheUnitedStatesMailinthecaseofregularmail, ornextdayinthecaseofovernightdelivery.
4.Modification.
ThisAgreementmaynotbeamended, modified, orterminatedexceptbywrittenagreementsignedandapprovedbyallparties.
5.Effective Date.
ThisAgreementshallbecomeeffectiveuponthedateofsignatureapprovalbythelastpartyasindicatedbelow.DATEDthis ___ dayof _____ ., 2022. [Signaturepagesfollows] BeusReleaseofInterestinUSBRPropertyAgreement Page5of7
Pilico PUBLIC WORKS DEPARTMENT (509)543-5738/FAX (509)543-5737
PO Box 293/525 North 3rd Ave. Pasco, WA 99301/www.pasco-wa.gov
Exhibit A -Parcel Map
Beus Parcel
No. 124690059