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2009 10 21 Brent Dille LetterUWENS DAMES FRISTOE TAYLOR & SCHULTZ, P.S. Attorneys at Law $. Robert Fristoe Don W. Taylor Frank J. Owens Theodore D. Schultz Richard G. Phillips, Jr. Michael W. Mayberry Kirk M. Veis Mat#hew B. Edwards Brent F. Dille JoEui V. Lyman Denise W. Derricott October 21, 2009 Yelm City Council City of Ye1m 105 Yelm Avenue West Yelm, WA 98597 RE: Palisades West Dear Council Members: Street Address: 1115 West Bay Drive, Suite 302 Olympia, Washington 98502 Mailing Address: P. O. Box 187 Olympia, Washington 98507 Phone (360) 943-8320 Facsimile (360) 943-6150 You have asked that I render an opinion as to the liability of the city far issuing the building permit and the feasibility of amending the plat approval to defer the instillation of a booster pump and roll seal. I have met with City staff and reviewed the testimony and materials presented at the public hearing and have the following comments: 1. The City has no liability for issuing the building permit. Dan Lee, the Smith's contractor, testified during the hearing that he was aware of the requirement of the booster pump and pressure sustaining valve ("Roll Seal"} at the time he applied for the building permit. I have further learned that Mr. Lee worked with Steve Chamberlain and attended meetings with city staff to go over these requirements prior to final plat approval in 2007. Because Mr. Lee was acting as agent for the Smiths and had actual knowledge of these requirements prior to requesting the building permit, the Smiths are deemed to have the same knowledge and, therefore, cannot now claim they were misled by the city when it issued the permit. Finally the Smiths had or, with reasonable investigation, should have known of this requirement as I am certain the Smiths' title report noted this exception and were provided a copy of the recorded plat prior to or at closing. Consequently, it is the Smith's contractor, Mr. Lee or the developer, Mr. Chamberlain, and not the City, who owes a duty to the Smiths. OWENS DAVIES FRISTOE TAYLOR & SCHULTZ, P.S. Yelm City Council October 2l, 2009 Page 2 2. Necessity for Booster Pump I fail to see haw we can resolve the booster pump issue. Regardless of whether or not the Smiths can extinguish a house fre, WAC 246-290-230(5) requires that there be a minimum of 30 PSI AT THE METER. I understand that there is only 24 PSI the Smith's meter and therefore the City would be in violation of the above cited WAC. I understand the Smiths have installed their own booster pump but it is installed after the meter and, therefore, does not satisfy this specific requirement. I simply cannot recommend a solution that causes the City to run afoul of a Department of Health regulation and jeopardize its water system permit and open the City to administrative sanctions. 3. Compliance with Roll Seal Requirement With regard to the Pressure Sustaining Valve (roll seal), in speaking with Tim Peterson, director of Public Works, the roll seal is necessary even if only one house is connected to the main line in order to prevent anover-pressurization in the waste distribution line. The Smiths' engineer could not guarantee that there would not be an over-pressurization event. Short of a multi- million dollar insurance policy issued by Lloyds of London in favor of the City for damages sustained to other residents, the Smiths' personal waiver of liability and indemnification is frankly, cold comfort. I empathize with the Smiths. They seem like nice folks who were misled by Steve Chamberlain or their builder. Unfortunately, for the reasons set forth above, I cannot recommend the City allow the plat amendment as requested. Very truly yours, OWENS DAVIES F E TAYL R & SC TZ, P.S. Brent F. Dille BFD/so N;IBFDIYe1mlPalisades WestlCouncil Ltr 162009 rev BFD.dac