HomeMy WebLinkAbout03/17/2026 07.K. Resolution - settlement of damage claims_water main break 300 block Yakima Ave 'V
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BUSINESS OF THE CITY COUNCIL
YAKIMA, WASHINGTON
AGENDA STATEMENT
Item No. 7.K.
For Meeting of: March 17, 2026
ITEM TITLE: Resolution authorizing settlement of damage claims arising out of a
City of Yakima water main break on Yakima Avenue on November 27,
2025, affecting properties located in the 300 block of Yakima Ave
(Risk Management Fund)
SUBMITTED BY: Ryan Bleek, Senior Assistant City Attorney
SUMMARY EXPLANATION:
This resolution authorizes settlement of damage claims filed by JEM Development Real Estate, Inc. and
JEM Building, LLC. The amounts to be paid by the City of Yakima to settle the claims are $322,408.39
and $223,278.32, respectively, which are both within the City's self-insured retention amount under its
general liability insurance policy. Further background is provided in the recitals of the resolution.
ITEM BUDGETED: Yes
STRATEGIC PRIORITY 24-25: A Resilient Yakima
RECOMMENDATION: Adopt Resolution.
ATTACHMENTS:
res-settlement.docx
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RESOLUTION NO. R-2026-
A RESOLUTION authorizing settlement of damage claims arising out of a City of Yakima
water main break on Yakima Avenue on November 27, 2025, affecting
properties located in the 300 block of Yakima Ave.
WHEREAS, On November 27, 2025, the City of Yakima's water main running underneath
the 200 block of E. Yakima Avenue in Yakima, Washington, suffered a rupture resulting in a
significant discharge of water; and
WHEREAS, JEM Development Real Estate, Inc. owns or leases buildings at 301, 309,
315, 319 and 399 E. Yakima Ave. and JEM Building, LLC, owns the building at 321 E. Yakima
Ave., and the water main rupture caused flooding to these buildings; and
WHEREAS, JEM Development Real Estate, Inc. and JEM Building, LLC, filed damage
claims alleging that water from the rupture became contaminated from the roadway and flooded
their buildings with water contaminated by the road surface causing extensive damage and
imposing chemical hazards; and
WHEREAS, the City's third-party claims administrator investigated the claims, evaluated
the claimed damages, hired a third-party contractor to provide an independent estimate of
damages, and negotiated settlement with the claimant contingent on City Council approval; and
WHEREAS, the City Council of the City of Yakima deems it to be in the interest of the City
of Yakima to authorize the City Manager to settle the above-mentioned claims; now, therefore,
BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF YAKIMA:
The City Manager is hereby authorized to execute all documents necessary to settle these
claims for the total amount of $545,686.71, distributed as follows: $322,408.39 to JEM
Development Real Estate, Inc., and $223,278.32 to JEM Building, LLC, respectively.
ADOPTED BY THE CITY COUNCIL this 17th day of March, 2026.
Matt Brown, Mayor
ATTEST:
Rosalinda Ibarra, CMC, City Clerk
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