ORDINANCE ______

AN ORDINANCE relating to Seattle Public Utilities, authorizing execution of a Purchase and Sale Agreement and acceptance of a Statutory Warranty Deed in connection with the acquisition of two parcels of property situated at 2343 and 2347 Northeast 86th Street, Seattle, King County, Washington.

WHEREAS, the City's 1995 Comprehensive Drainage Plan Update highlighted the immediate need for wastewater management, control of storm water drainage and fish habitat restoration within the Thornton Creek drainage basin; and

WHEREAS, in accordance with the 1999-2000 Spot Drainage Property Acquisition Project, Seattle Public Utilities has continued to complete extensive creek restoration, salmon enhancement and sewer line protection work within that drainage basin; and

WHEREAS, Thornton Creek is a vital drainage and habitat facility, and maximizing detention within the site over time could potentially alleviate downstream drainage problems while restoring habitat for fish; and

WHEREAS, the City of Seattle shall acquire the hereinafter described property for developing a storm drain retention area and a flood control facility, and for providing permanent access to Thornton Creek; NOW, THEREFORE,

BE IT ORDAINED BY THE CITY OF SEATTLE AS FOLLOWS:

Section 1. The Director of Seattle Public Utilities is hereby authorized to purchase the following described property from Alan W. Ruesch and Diane L. Ruesch, husband and wife, at the fair market value of One Hundred Thirty Thousand Dollars ($130,000.00):

Parcel A

That portion of Lots 2 and 3, Acre 4, of Tract 8, Maple Leaf Addition to Green Lake Circle, according to the plat thereof recorded in Volume 2 of Plats, page 115, in King County, Washington, described as follows:

Beginning at the northwest corner of said Lot 2;

thence southerly 90.00 feet along the west line of said Lot 2;

thence easterly 83.99 feet, parallel with the north line of said tract to the westerly margin of Ravenna Avenue NE as now existing 60.00 feet in width;

thence northwesterly along said street margin 93.41 feet to the north line of said tract;

thence westerly 60.33 feet to the point of beginning;

Parcel B:

That portion of Lots 2 and 3, Acre 4, and Lot 3, Acre 5, Tract 8, Maple Leaf Addition to Green Lake Circle, according to the plat thereof recorded in Volume 2 of Plats, page 115, in King County, Washington, described as follows:

Beginning at a point on the west line of said Lot 2, lying southerly thereon 90.00 feet from the northwest corner of said Lot 2 and continuing;

thence southerly 55.84 feet to the southwest corner of said Lot 2;

thence easterly along the south lines of said lots, 98.66 feet to the westerly margin of Ravenna Avenue NE as now existing 60.00 feet in width;

thence northerly along said street margin 57.96 feet to an intersection with a line parallel with the north line of said tract and running through the point of beginning;

thence westerly along said parallel line 83.99 feet to the point of beginning.

Section 2. The Director of Seattle Public Utilities is hereby authorized to accept a Statutory Warranty Deed to effectuate the purchase of the above-described real property in accordance with the terms and conditions of the Purchase and Sale Agreement attached hereto as Exhibit A.

Section 3. The acquisition shall be funded through the 1999-2000 Spot Drainage Property Acquisition Project (C3AA302), and the above-described real property shall be placed under the jurisdiction of Seattle Public Utilities.

Section 4. Any act pursuant to and prior to the effective date of this ordinance is hereby ratified and confirmed.

Section 5. This ordinance shall take effect and be in force thirty (30) days from and after its approval by the Mayor, but if not approved and returned by the Mayor within ten (10) days after presentation, it shall take effect as provided by Municipal Code Section 1.04.020.

Passed by the City Council the _____ day of ____________, 2000, and signed by me in open session in authentication of its passage this _____ day of _________________, 2000.

_____________________________________

President _______ of the City Council

Approved by me this _____ day of _________________, 2000.

___________________________________________

Mayor

Filed by me this _____ day of ____________________, 2000.

___________________________________________

City Clerk

(Seal)

RP:ec

February 25, 2000

113111.doc

(Ver. 1 ) EXHIBIT A

REAL ESTATE PURCHASE AND SALE AGREEMENT

This Agreement is made by and between Alan W. Ruesch and Diane L. Ruesch, husband and wife ("Seller") and The City of Seattle, a municipal corporation, acting by and through its Seattle Public Utilities ("Buyer"), for purchase and sale of that certain real property and appurtenances thereon situated in King County, Washington, legally described on Exhibit A, together with all rights appurtenant thereto (the "Property"), subject to the terms and provisions set forth below. The effective date of this Agreement shall be the date this Agreement has been signed by both Seller and Buyer.

1. PURCHASE PRICE; PAYMENT.

The total purchase price for the Property is One Hundred and Thirty Thousand and no/100 Dollars (US $130,000.00) ("Purchase Price). The Purchase Price is payable as follows:

1.1 Deposit. Within 10 working days from the date this Agreement is signed by both Buyer and Seller, Buyer will deposit in escrow with Pacific Northwest Title Company of Washington("Closing Agent"), a copy of this Agreement and Buyer's earnest money deposit in the amount of Five Thousand and no/100 Dollars (US $5,000.00) ("Deposit") in the form of a check made payable to Closing Agent. Closing Agent will apply or disburse the Deposit as provided in this Agreement. Upon closing, the Deposit will be applied to the Purchase Price.

1.2 Balance of Purchase Price. The balance of the Purchase Price, One Hundred Twenty Five Thousand and no/100 dollars(US $125,000.00), in cash at closing.

2. TITLE

2.1 Title Insurance. Within ten (10) days after the date of this Agreement, Seller shall cause to be furnished to Buyer an ALTA form commitment for an owner's standard coverage policy of title insurance, issued through Pacific Northwest Title Company describing the Property, listing the Buyer as the prospective insured, and showing as the policy amount the Purchase Price (the "Title Commitment"). Buyer shall have ten (10) days after receipt of the Title Commitment to disapprove any exceptions contained therein. If Buyer disapproves any exceptions listed on the Title Commitment, Seller shall have the option to terminate the Agreement or attempt to correct the exceptions to the Buyer's satisfaction. If Seller elects to terminate the Agreement or does not remove the disapproved exceptions, Buyer as its sole and exclusive remedy, shall be entitled to a refund of the Earnest Money. Any title exceptions not disapproved by the Buyer within ten (10) day period shall be deemed accepted by the Buyer (the "Permitted Exceptions").

2.2 Deed. At Closing, the Seller will execute and deliver to Buyer a statutory warranty deed conveying title to the Property free and clear of all defects or encumbrances except for Permitted Exceptions and any other exceptions waived by the Buyer.

1. INSPECTION

Commencing on the date of this Agreement, Buyer shall have until March 1, 2000 to investigate and inspect the suitability and feasibility of the Property for Buyer's intended use at the Buyer's expense ("Feasibility Period").. Buyer shall provide Seller with written notice of Buyer's determination that the Property is not suitable prior to the end of the Feasibility Period or the Property shall be deemed suitable and feasible for the Buyer's purposes.

2. BUYER'S CONTINGENCIES.

Buyer shall have until March 1, 2000 (i) to determine, in its sole discretion, the suitability of the Property for Buyer's intended use and (ii) for the Seattle City Council by ordinance to authorize and approve the execution of this Agreement and acquisition of the Property ("Feasibility Period"). If Buyer fails to deliver to Seller written notice that Buyer has determined the Property to be suitable and the Seattle City Council has approved this Agreement prior to the end of the Feasibility Period, the Property shall be deemed unsuitable for Buyer's purposes and this Agreement shall terminate. In such case and upon Buyer's notice of termination to the Closing Agent, the Closing Agent shall refund the Deposit to Buyer and the parties shall have no further rights or obligations in connection with this Agreement.

3. RIGHT OF ENTRY.

Seller hereby grants to Buyer and its employees, agents and contractors, the right to enter upon the Property from time to time during the Feasibility Period, for the purpose of conducting therein and thereon such inspections, investigations and studies, the City of Seattle as Buyer may reasonably deem necessary or appropriate in order to determine the feasibility of purchasing the Property. Buyer agrees to restore to its previous condition any portion of the Property disturbed by Buyer's investigations or studies.

4. RISK OF LOSS.

Seller will bear the risk of loss of or damage to the Property until the date of closing. In the event of destruction of vegetation or other material loss of or damage to the Property prior to closing, Buyer may terminate this Agreement by giving notice of termination to Seller and Closing Agent unless such loss or damage is caused by the Buyer. Upon such notification, Closing Agent shall refund the Deposit to Buyer and the parties shall have no further rights or obligations in connection with this Agreement.

5. REPRESENTATIONS, WARRANTIES AND COVENANTS.

Seller represents, warrants and covenants to Buyer at the date of execution of this Agreement and the date of closing that:

7.1 Authority. Seller, and the person or persons signing on behalf of Seller, has full power and authority to execute this Agreement and perform Seller's obligations;

7.2 Debris and Personal Property. Prior to closing, Seller will remove all debris and personal property located on the Property (if any), at Seller's cost and expense.

7.3 Fees and Commission. Buyer and Seller each represent that it has had no dealing with any real estate brokers or agents in connection with the negotiation of this transaction. Buyer and Seller shall indemnify and hold each other harmless from and against any and all liability and costs which the other may suffer in connection with real estate brokers claiming by, through, or under that party seeking any commission, fee or payment in connection with this transaction.

7.4 Vegetation. Seller has not entered, and prior to closing shall not enter, into any contract or agreements, either written or verbal, concerning cutting, removal, topping or other disturbance or destruction of vegetation on the Property.

8 CONDITION OF PROPERTY.

Buyer acknowledges and agrees that it is relying solely on its inspection and investigation of the property, and accepts the property "AS-IS", "WHERE-IS" in its present condition. Buyer acknowledges and agrees that the Seller has made no warranty or representation of any kind, oral or written, expressed or implied, with respect to any condition of the Property, including without limitation, the habitability, tenantability, or fitness for a particular purpose of the Property, the presence or absence of any hazardous substances, wastes or materials as defined by State, Federal or Local law, all of which warranties seller hereby expressly disclaims.

9. CLOSING

9.1 Prorations; Closing Costs. Taxes and drainage service fees for the current year and collected rents, if Buyer has agreed to purchase the Property subject to a lease or leases, will be prorated as of the date of closing. Buyer will pay real estate excise taxes (if any are due), the premium for its owner's title insurance policy, the cost of recording the statutory warranty deed from Seller, and the Closing Agent's escrow fee.

9.2 Time for Closing. This sale will be closed in the office of Closing Agent on a date mutually agreed upon by the Buyer and Seller, but not later than 15 March 2000. Buyer and Seller will deposit in escrow with Closing Agent all instruments, documents and monies necessary to complete the sale in accordance with this Agreement. As used in this Agreement, "closing" or "date of closing" means the date on which all appropriate documents are recorded and proceeds of sale are available for disbursement to Seller. Funds held in reserve accounts pursuant to escrow instructions shall be deemed, for purposes of his definition, as available to disbursement to Seller.

9.3 Possession. Buyer shall be entitled to possession of the Property upon closing.

10. DEFAULT.

Time is of the essence of this Agreement. If Seller has performed all of Seller's covenants and obligations under this Agreement, title is insurable as provided in Section 2., Seller's representations and warranties are true and accurate, Buyer's conditions (if any) are satisfied or waived, and Buyer fails or refuses to purchase the Property through no fault of Seller, the Deposit will be forfeited to Seller and Buyer will have no further obligations or liability under this Agreement. If Seller is unable to (or does not) perform all covenants and obligations under this Agreement, if title is not insurable as provided in Section 2, or if Seller's representations and warranties are not all true and accurate, Closing Agent will return the Deposit to Buyer upon demand by Buyer, as Buyer's sole and exclusive remedy and Seller and Buyer shall have no further obligations or liability under this Agreement.

11. NOTICES.

All notices, waivers, elections, approvals and demands required or permitted to be given under this Agreement shall be in writing and personally delivered, sent by United States certified mail, return receipt requested, to the addressee's mailing address set forth below, or sent by telecopy to the addressee's fax number set forth below. Any notice will be effective when actually received or, if mailed as provided herein, on the earlier of actual receipt or two (2) days after the date deposited in the mail.

If to Buyer:

Attn: Ron Perkerewicz

Seattle Public Utilities

Dexter Horton Building Floor 10

710 Second Avenue

Seattle, WA 98104-1714

Phone: 206-615-0741

Fax: 206-615-1215

If to Seller:

Alan Ruesch & Diane Ruesch

4518 91st Ave SE

Mercer Island, WA 98040

Phone: 206-236-1164

If to Closing Agent:

Attn: Laura Johnson Escrow Officer

Pacific Northwest Title Company of Washington Inc..

1201 Third Ave, Suite 3800

Seattle, Wa 98101

Phone: 206-343-1321

FAX: 206-343-4720

11. GENERAL.

This is the entire agreement of Buyer and Seller with respect to the Property and supersedes all prior agreements between them, written or oral. This Agreement may be modified only in writing, signed by Buyer and Seller. Any waivers under this Agreement must be in writing. A waiver of any right or remedy in the event of a default will not constitute a waiver of such right or remedy in the event of any subsequent default. This Agreement is for the benefit of, and binding upon, Buyer and Seller and their heirs, personal representatives, successors and assigns. The invalidity or unenforceability of any provision of this Agreement will not affect the validity or enforceability of any other provision. All exhibits are hereby incorporated into this Agreement.

12. SURVIVAL OF WARRANTIES.

The terms, covenants, representations and warranties shall not merge in the deed of conveyance, but shall survive closing.

13. ACCEPTANCE.

This Agreement shall become null and void unless executed by Seller and received by Ron Perkerewicz at the address referenced above not later than 4:00 PM, Wednesday , 5 January 2000

Buyer: The City of Seattle

By: ________________________

Diana Gale

Director, Seattle Public Utilities

Date: ______________

Seller: By: ________________________

Alan W. Ruesch

Date: ______________

By: __________________________

Diane L. Ruesch

Date: ______________

4

witham agm't.