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HomeMy WebLinkAbout12/06/2016 11 Drainage Improvement Districts - Transfer from County to CityBUSINESS OF THE CITY COUNCIL YAKIMA, WASHINGTON AGENDASTATEMENT Item No. 11. For Meeting of: December 6, 2016 ITEM TITLE: Joint Resolution between the City and Yakima County providing terms and conditions of Yakima County's transition of Drainage Improvement Districts 4, 13, 24, 29, 38, 39, 40, 41 and 48 to the City SUBMITTED BY: Cliff Moore, City Manager Jeff Cutter, City Attorney SUMMARY EXPLANATION: Yakima County has operated and maintained Drainage Improvement Districts 4, 13, 24, 29, 38, 39, 40, 41 and 48 for several years, as trustee of the DIDs since the respective DID Boards ceased to exist. As a result of numerous City annexations most of the DI Ds' infrastructure is now located within the City. Earlier in the year Yakima County acted to dissolve the DIDs based upon their ceasing to have active Boards operating them. The County has offered to transition the remaining assets and infrastructure of these several DI Ds to the City under the terms and conditions set forth in the attached Joint Resolution of the City and County to allow the City to become responsible for the operation and maintenance of the infrastructure. Portions of the DID infrastructure included in these DI D's has, over the years, become incorporated into the City's stormwater system. As a result, the continued maintenance and operation of these systems is essential to the City meeting its stormwater responsibilities. Further, with the County's decision to dissolve the DI Ds it has fallen to the City to address continued maintenance of the systems that still convey groundwater within the City to avoid the City's residents experiencing overflows and flooding resulting from blocked or collapsed conduit systems. The attached Joint Resolution will provide for the cooperative transfer of the DI Ds to the City in accordance with statutory requirements, as well as to address the cooperative sharing of costs incurred by the City in 2016 to address claims and required repair arising from the condition of the DIDs during the past year. Included in the terms of the transfer is the delivery to the City of all easements, properties and improvements associated with the DI Ds that the County has held during its role as trustee of the districts, as well as the financial assets the County continues to hold from the districts in the approximate amount of one million dollars. ITEM BUDGETED: STRATEGIC PRIORITY: M Public Safety APPROVED FORcl*� SUBMITTAL: ~City Manager STAFF RECOMMENDATION: Adopt resolution. BOARD/COMMITTEE RECOMMENDATION: Although the City Council is aware of the DID issues, a Council Committee did not have an opportunity to review the specific documents associated with this action due to the short time available to present the proposed Resolution to the full Council before the end of the year. ATTACHMENTS: Description Upload Date Type D Joint City -county Resolution re DID transfer of assets 11130(2016 Resolution BOARD OF YAKIMA COUNTY COMMISSIONERS A JOINT RESOLUTION BETWEEN THE CITY OF YAKIMA AND YAKIMA COUNTY IN THE MATTER OF DISPOSING OF ASSETS AND PROPERTY OF DISSOLVED DRAINAGE IMPROVEMENT DISTRICTS ("DID's") Nos. 4, 13, 24, 29, 38, 39, 40, 41 and 48, Located Wholly or Partly Within the City of Yakima JOINT CITY -COUNTY RESOLUTION -2016 [Yakima County] R- [City of Yakima] WHEREAS Yakima County Ordinance No. 4-2015 dissolved nine (urban) drainage improvement districts (DID's), designated as DID Nos. 4, 13, 24, 29, 38, 39, 40, 41 and 48, whose service area is located in whole or in part within the municipal borders of the City of Yakima. The Ordinance was enacted following the County Auditor's determination that the nine urban DID's were inactive special purpose districts, as defined at RCW 36.96.010(3) (a - b); and, WHEREAS, pursuant to RCW 36.96.040 the Board of Yakima County Commissioners is the trustee of the dissolved DIDs in the winding up of their affairs; specifically, the Board has the statutory responsibility to exchange, sell, or otherwise dispose of all property, real and personal, of the dissolved special purpose district; and to settle all obligations of such special purpose district. These powers and duties commence upon the effective date of dissolution and continue until such time as the affairs of the dissolved special purpose district have been completely wound up; and, WHEREAS, the subject DIDs include properties that have been annexed into the City of Yakima. In addition to continuing to convey ground water as originally designed, portions of the infrastructure installed by the dissolved DIDs, including easements for maintaining the DIDs, have also served the City of Yakima as drains for surface water and storm waters and are anticipated to do so in the coming years. However, because of the age and conditions of these facilities it is anticipated that the City will have maintenance costs in the future, if it continues to use the former DID infrastructure. WHEREAS, Trustee County and the City seek to resolve the scope of responsibilities of each municipality following the dissolution of the DIDs and to resolve the apportionment of any remaining DID resources and property --including any monies retained by the Trustee County and designated to the district's accounts. This action is to be accomplished no later than December 23, 2016. THEREFORE, THE BOARD OF YAKIMA COUNTY COMMISSIONERS, ACTING AS STATUTORY TRUSTEES OF CERTAIN DISSOLVED URBAN DID's AND THE CITY OF YAKIMA, HEREBY JOINTLY ENTER THE FOLLOWING FINDINGS AND CONCLUSIONS: A. This Joint Resolution is entered into between Yakima County (County) and its governing body the Yakima County Board of Commissioners (Board), acting as the trustee of dissolved Drainage Improvement Districts (DIDs) Nos. 4,13, 24, 29, 38, 39, 40, 41 and 48 that were dissolved as inactive special purpose districts pursuant to RCW 36.96 et. seq.; and the City of Yakima (City), the receiving jurisdiction within whose jurisdiction the greater portion of the dissolved DID's property and infrastructure now exist and whose citizens are benefited by the use of portions of those facilities. B. The City has used, and will continue to use in the future, portions of the dissolved DID facilities as part of its storm water program. During the course of 2016 the City has expended resources to make repairs to and maintain some of the dissolved DID structures, particularly within DID No. 29; and, C. The County and the City seek to provide for the fair and orderly transfer of any responsibilities, obligations and assets of the dissolved urban DID's to the City of Yakima; and, D. The City of Yakima, as the receiving jurisdiction, agrees to receive those portions of the remaining real and personal property interests of the dissolved DIDs currently managed by the Trustee County that are located within the City of Yakima, for the benefit of the City's surface and stormwater requirements. E. Further, all funds that have been collected by the Yakima County Treasurer and held on account for each dissolved DID shall be allocated by the Trustee County to the City under the following terms: 1) Trustee County shall transfer to the City the sum of $72,472.40, representing fifty percent (50%) of the costs incurred by the City in 2016 for claims resolution, investigation, maintenance and replacement of DID infrastructure located within the jurisdiction of the City. Said funds shall be paid from the DID fund balance held by the County Treasurer on behalf of the dissolved DIDs. The 2 parties agree that payment of these funds to the City represents the County's sole responsibility for those expenses incurred by the City in 2016. These funds will be transferred to the City upon entry of both parties to this Joint Resolution, but no later than December 23, 2016. 2) The remaining DID fund balance held by the Yakima County Treasurer, estimated to be $1,077,297.60 in total, will be transferred by the County Treasurer to the City no later than December 23, 2016, subject to the conditions imposed in this Joint Resolution. 3) The Trustee County will also transfer to the City all components and easements, both real and in gross, pertaining to the dissolved DIDs and subject to the County's trusteeship, that are located within the City, including all past, current and future obligations, responsibilities and liabilities related to their use and operations, regardless of whether such liability or responsibility arose during the DID's direct management or the County's stewardship; F. The following exhibits pertain to this Joint Resolution, including the drainage facilities and real property interests formerly held by the dissolved DID's and currently administered by the County as statutory Trustee: Exhibit One, attached to this Joint Resolution and made a part of it, contains a map of the relevant DID boundaries located in whole or in part within the municipal boundary of the City of Yakima. The Parties acknowledge that Exhibit One (1) is not, nor is it intended to be, a comprehensive and complete inventory of DID facilities within the municipal boundaries of the City of Yakima but was prepared by Yakima County staff members according to the information on DID facilities available to them and is intended to be for illustrative purposes Exhibit Two, attached to this Joint Resolution and made a part of it, represents the form of the quit claim deed whereby the Trustee County will transfer to the City of Yakima the ownership of the dissolved DID real property interests and associated drainage facilities located within both the dissolved DID boundaries and City of Yakima. NOW, THEREFORE, ON THE BASIS OF THE STATED FINDINGS AND CONCLUSIONS IT IS JOINTLY RESOLVED BY THE BOARD OF YAKIMA COUNTY COMMISSIONERS, ACTING AS TRUSTEES OF THE DISSOLVED DIDS, AND THE CITY OF YAKIMA, AS RECEIVING JURISDICTION, AS FOLLOWS: 3 A. So long as the execution of this Joint Resolution occurs before December 23, 2016, all facilities and assets of the dissolved DID's that are currently held in trust by Yakima County as trustee of the dissolved DID's and that are located in whole or in part within the municipal boundaries of Yakima, including the facilities identified and described in Exhibit One (1) attached to this Joint Resolution and incorporated herein, shall be transferred to the City of Yakima as receiving jurisdiction in the following way: 1) As soon as possible after execution of this Joint Resolution, but not later than January 1, 2017, Deeds in the form of the quit claim deed provided in Exhibit Two, attached and incorporated herein, transferring title to the real property interests owned by the DID's and now held by the County as Trustee, including the real property interests identified and described in this Resolution, shall be delivered to the City naming the City grantee. 2) Of the remaining DID funds, to the City as follows: a) The sum of $72,472.40, representing fifty (50) percent of the costs incurred by the City for payment of claims, investigation, maintenance and replacement of DID infrastructure located within the jurisdiction of the City, expended by the City between January 1, 2016, and January 1, 2017, will be paid to the City by the County as the County's sole responsibility, acting as trustee for the dissolved DID, for those expenses incurred by the City during 2016; to be paid from the DID fund balance held by the County Treasurer on behalf of the dissolved DIDs. These funds will be transferred to the City upon both parties entering this Joint Resolution, to be entered into by both parties no later than December 23, 2016. b) The remaining DID fund balances held by the Yakima County Treasurer for each of the dissolved DIDs, estimated to be $1,077,297.60, will be transferred by the County Treasurer to the City no later than December 23, 2016, subject to the conditions imposed in this Joint Resolution. B. Yakima County Public Services shall provide to the City all records and documentation it possesses regarding operations and maintenance of DID facilities and associated real property interests, and/or those for which title is held in Yakima County's name, for the drainage facilities and drainage related real property interests located within the City's jurisdiction. C. Yakima County, acting as trustee of the dissolved DID's, waives any and all liability to the receiving City, the dissolved DID's or any of their resources or assets that may be alleged to have arisen during the period of the County's management 0 and trusteeship, and while acting within its fiduciary capacity as trustee for the dissolved DIDs and arising out of Yakima County's management, ownership or trusteeship of any of the drainage property interests and related facilities located within both the boundaries of the dissolved DID's and City. As among the parties, Yakima shall not have any liability arising out of the DID's, and/or Yakima County's management, stewardship or ownership of any drainage property interests and related facilities located within both the boundaries of the DID's and the City municipal boundaries that arise from acts and/or omissions occurring before the recording of the quit claim deeds to be delivered to the City of Yakima pursuant this resolution, other than as herein provided. D. The parties agree that if this Joint Resolution is not executed by the last Board of Commissioner's public agenda, on December 23, 2016, all provisions contained herein are null and void and the Board will retain all funds proposed to be dispersed pursuant to paragraphs A (2) and (b), above. DONE this day of December 2016. FOR YAKIMA COUNTY, ACTING AS TRUSTEE OF DID Nos: 4, 13, 24, 29, 38, 39, 40, 41 and 48 Michael D. Leita, Chairman Kevin J. Bouchey Commissioner J. Rand Elliott, Commissioner Constituting the Board of County Commissioners for Yakima County, Washington Attest: Tiera L. Girard Clerk of the Board 5 FOR THE CITY OF YAKIMA, Kathy Coffey, Mayor ATTEST: Sonya Claar Tee, City Clerk