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HomeMy WebLinkAbout4660 RESOLUTION NO. 4 6 6 0 " A RESOLUTION OF THE CITY COUNCIL OF THE , CITY OF AUBURN, WASHINGTON, AUTHORIZING THE MAYOR AND CITY CLERK TO EXECUTE AN INTERIM WATER SALES AGREEMENT BETWEEN THE CITY OF .AUBURN AND KING COUNTY WATER DISTRICT NO. 111 WHEREAS, the City adopted Resolution No 2721 executing an Interlocal Agceement No. 2 for the Lea Hill Intertie Project'between the Covington Water District, King County Water District No. 111 and the City of Auburn; and WHEREAS, to avoid unpredictable wafer sales and to create a predictable and reliable cost for wholesale water to be sold by the City to the Covington and King County Water District, on June 17, 2002, the City adopted , Resolution No. 3482, which authorized the execution of an Interim Water Sales Agreemenf between the parties; and WHEREAS, on February 22, 2005, the prior Interim Water Sales Agreement was superseded and replaced with a new agreement per Resolution No. 3817; and WHEREAS, Covington has opted out of the original agreement; and WHEREAS, The City. and the King County Water District No. 111 wish to continue their prior amangement; WHEREAS, in keeping with the original intent of the parties to create a predictable and reliable cost for wholesale water, it is appropriate for the City to Resolution No. 4660 December 1, 2010 Page 1 of 3 enter into a new Interim Wafer Sales Agreement with King County Water District No. 111 which would supersede and replace the prior agreement. , - NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF AUBURN, KING COUNTY, WASHINGTON, HEREBY RESOLVES as follows: Section 1. The Mayor of the City of Aubum and the Auburn City Clerk are..hereby authorized to execufe an Interim Water Sales Agreement between the City of Aubum and King County Water. District No. 111, in substantial conformity with the Agreement attached hereto,. marked as Exhibit "A" and incorporated herein by this reference. Section 2. The Mayor is hereby authorized to implement such administrative procedures as may be necessary to carry out the directives of tliis legislation. Section 3. This. resolution shall be in full force and effect upon passage and signatures hereon. - Dated and Signed this day of 4, 2010. . CITY O U ~ ✓ _ P TER: B. LEWIS, MAYOR Resolution No. 4660 December 1, 2010 Page 2 of 3 ATTEST: Danielle E. Daskam, City Clerk APP V D AS)TO FORM: D iel B. Heitl, ttorn , J Resolution No. 4660 December 1, 2010 - Page 3 of:3 _ .I. ' IYVTERIM WATER SALES AGREEMENT between KING COUNTY WATER DISTRICT' NO. 111 and the CITY of AUBURN - - This Agreement;("Agreement") is made and entered into:this day of December, 2010 by and between King County Water District No. 111, a Municipal Corporation ("Districtn) and the City of Aubum, a Municipal Corporation ("Auburn'') , (individually a "Party" and collectively the "Parties"). Recitals• A. The Parties are also parties to "Interlocal Agreement 2 for the Lea Hill Intertie Project between King County Water District #111, and the City of Auburn" ("IA2"). B. The Parties desire to avoid unpredictable water sales and create a predictable and reliable cost for wholesale water to be sold by Auburn to the District. C. By guaranteeing a minimum purchase of water for a given period of time, the cost of water, which to a significant extent is based on peaking factors; cah be minimized for all of Auburn's.customers. D. This Agreement is intended to establish a rate for a fixed block of water for the mutual benefit of the Parties. Resolution No. 4660 - Exhibit "A" Decernber 6, 2010 Page 1 of 8 ~ . E. It is in the intecest of the Dist(ct to have a predictable supply of water available, and in.Auburn's interest to have a predictable and consistent source of revenue from the sale, of such water. - F. The Parties are authorized to enter into this Agreement under the authority of their respective enabling legislation and under the authority of Chapter 39.34 RCW, the Interlocal Cooperation Act. G. The Parties intend that the take or pay water provided for in this Agreement is a portion of and not in addition to the 2.5 MGD allocated to the District as addressed in IA2. Now, therefore, in consideration of the, mutual covenants and promises contained herein, and for other good and valuable consideration, the adequacy of which is hereby aeknowledged, the Parties hereby agree as follows: , 1) TAKE OR PAY: Tfie District agrees to purchase a minimum block of water as identified in this Agreement from Auburn on a"take or pay" basis. For purposes of this Agreement, a"Block" shall mean either an average of 0.75 MGD of water between the time period of October 1 and May 31, or an average of 1.0 MGD of water between the time period of June 1 and September 30. "Take or pay" shall mean thaf, in the absence of an emergency as set forth in Section 7 of this Agreement, the District shall pay for the Block of Resolution No. 4660 Exhibit "A" December 6, 2010 Page 2 of 8 - . . -It water whether or not the water is actually taken by the District, , - subject to the provisions of Section 2 herein. 2) CHARGES FOR WATER: On a monthly basis, the District will pay, as shown on Exhibit 1 attached hereto and incorporated herein by this reference, the Base Charge; plus the Block Rate. In addition to the Base Charge and the Block Rate, any water taken in excess of the Block amount ("Excess Water") during any month shall be billed at the appropriate overage rate shown in Exhibit 1;.provided, that: 1) any, . . water#aken during an emergency,.as defined in Paragraph 7, shall be billed at the Block Rate, and 2) if,Auburn is unable to deliv.er up to the Block quantity of water requested by the District; then Auburn shall only bill the District for the amount of water actually delivered at the Block Rate. Auburn shall send a monthly bill to WD 111 for all water . , purchased by the District. . ~ QUANTITY AVAILABLE / DELIVERED: The Block quantity shall be calculated as the amount of water: tot be delivered at an average rate of either 0.75 MGD or 1.0 MGD (depending on the season) measured over a rolling 3 day period, with total quantities delivered within any single day being within 10%, plus,or:minus; of the Block quantity in - effect at the„time:as measured at the Auburn Intertie Pump Station meter ("Master Mefer"). For the Block quantity, the District will be Resolution No. 4660 Exhibifi °A„ December 6, 2010 Page 3 of 8 served on the same basis and with the same reliabilify as service is provided to Auburn's retail customers, and any curtailment, restrictions or limitations on delivery shall be on same basis as curtailment, restrictions or limitations on delivery to Auburn's retail customers. 4) ANNUALRECONCILIATION: The Master Meter is located at the Lea Hill lntertie Pump Station to measure the flow of water. The Master Meter will. be read in January of each year to adjust for differences between the Master Meter and the water calculated to have been sold under this Agreement. If there is a difference befinreen the Master Meter and the calculated quantities, Auburn will either . charge or credit the District's account at the Block Rate. 5) ANNUAL REVIEW AND ADJUSTMENT: The initial Block of either 0.75 MGD or 1.0 MGD (depending on the season) shall remain in effect through December 31, 2015. Each year, fhe Block may be adjusted by mutual agreement. B.y September 1 of each year the District shall notify Auburn of its intent to confinue without change or_ request an increase or decrease in writing of the Block_quantity desired. Aubum will review its ability to approve the change and may approve any requested change in the Block quantity up to but not to exceed 1:5 MGD which would become effective January 1 of the year following the request. If Auburn determines it cannot approve the Resolution No. 4660 Exhibit "A" December 6, 2010 Page 4 of 8 h - . . . . . request it will communicate this information to the District before October 1, and continue to provid"e the same amount as during the current year. In th'e event that neither~Party communicates its intent to adjust the Block under this provision; -the Block shall be deemed to continue unchanged. ~ TERM: This Agreement shall remain in-full force and'effectfrom the : first day of the month following the execution of this Agreement through Decem6er 31, 2015. The Agreement shall automatically be renewed for an: additional year'afthe conclusion of the te.rm of this . Agreement or any extension thereof unless either Party provides the - other witli notice of an intent not to extend this Agreement, which , notice shall be ceceived by the other Pa:rty,not less than one year prior to the expiration of the term of this Agreernent or any extension thereof. The termination of this Agreement shall not affect any rights or obligations under IA2. 7Z `EMERGENCIES: . For purposes of this Agreement, an emergency shall be defined as a need for water resulting from.a,water shorfage, a major water line break, fire demand; contamination to the watec supply system, mechanical equipment failure, electrical equipment failure or , Puget Sound Energy facility failure, or any other mutually agreed upon event within the water supply system. An emergeney period shall be Resolution No. 4660 Exhibit "A" December 6, 2010 Page 5 of 8 v- . . for no more than five (5) working days.without written request by the District and approval by Auburn in writing to extend the emergency _ period. The City may change, reduce or1imit the time for or temporarily discontinue any water supplied for an emergency in excess of the Block quantity without notice. Prior to a. planned interruption or limiting, of emergency senrice, the City will notify the Distcict of the internaption or limiting not less than three days prior to the service disruption. The City agrees to use best efforts and reasonable diligence to notify the.District as soon after it becomes aware of the need for emergency service disruption and further will; to the extent practical, limitthe service disruption to daylight hours. 8). PRIOR AGREEMENT SUPERSEDED: This Agreement supersedes and replaces,the Interim Watec Sales Agreement.befinreen Covington Water District, King County:Water District No. 111 and the City of Auburn dated February 22, 2005. In witness-whereof the Parties have caused this Agreement to be executed by their duly authorized representatives onthe 1v ~day of 2010. Resolution No. 4660 Exhibit "A" December 6, 2010 , Page 6 of 8 CI O URN ~ PE R B. L IS MAYOR ATTEST: ZL24~ ' e Danielle E. Daskam, City Clerk AP R 4B.H PR.- Danie, O City Attomey ~ KING COUNTY WATER DISTRICT NO. 111 . WILLIAM C. HALL GENERALMANAGER ATTEST: ~ APPROVED AS TO F RM: Dist ' Atto ey Resolution No. 4660 Exhibit "A" December 6, 2010 Page 7 of 8 ' . . _-..n •'1 .'ii `Interim Water Sales Aareement _ . , Between Kinq Countv Water District No. 111 And the : . . Citv of Auburn Exhibit 1 - Take or Pa Monthl Rates Year Base Charge Biock and Summer (per month) Winter Overage Overage Rate er cc er cc 2010 $175.00 $0.91 Block rate+ $0.25 2011 $175.00 0.91 X CPI' Block rate + $0.25 2012 $175.00 2011 Rate X Block rate + CPI' $0.25 . 2013 $175.00 2012 Rate X Block rate + . CPI* $025 2014 $175,00 . , '2013 Rate X Block rate + CPI"$0.25 - 2015-$175:00'' ` 2014 Rafe X Block rate + CPI* . $0.25 " CPI means the Consumer Price Index - Urban for the Seattle - Tacoma - Bremerton area for the month of October of the prior year, divided by fhe Octqber. . value of the year prior to that (see example below). Example: . . . - CPI for2011 equals the October 2010 CPI value divided by.the October 2009, CPI value. Resolution No. 4660 Exhibit "A" December 6, 2010 - Page 8 of 8