HomeMy WebLinkAbout5332 RESOLUTION NO. 5 3 3 2
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF
AUBURN, WASHINGTON, AUTHORIZING THE MAYOR TO
EXECUTE A FIRST AMENDMENT TO INTERLOCAL
AGREEMENT 2 FOR THE LEA HILL INTERTIE PROJECT
BETWEEN COVINGTON WATER DISTRICT, KING
COUNTY WATER DISTRICT NO. 111 AND THE CITY OF
AUBURN
WHEREAS, in 1996, the City of Auburn, Covington Water District and King County
Water District No. 111, entered into an Interlocal Agreement (IA2) for the Lea Hill Intertie
Project, which provided, in part, for the construction and operation of certain water
facilities to be jointly funded by the parties and owned and operated by the City; and
WHEREAS, IA2 also provided for the City to make water supply available to the
Districts in an interruptible basis, until and unless the City were to acquire additional firm
water rights, in which case, the City's supply of water to its IA2 partners would have
increased; and
WHEREAS, the City was not yet successful in acquiring additional water rights;
and
WHEREAS, in accordance with changes since IA2 was negotiated, the Parties
recognize that some changes in circumstances require the clarification of the terms and
conditions of the Interlocal Agreement, including that Covington no longer desires to be
a party to the Agreement; and
WHEREAS, King County Water Disfrict No. 111 and the City would like to make
eertain clarifications and modificafions, including further definition of the duration of the
Agreement.
Resolution No. 5332
November 17, 2017
Page,1 of 2
NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF AUBURN,
WASHINGTON, HEREBY RESOLVES as follows;
Section 1. That the Mayor is hereby authorized to execute the First Amendment
to IA2 for the Lea Hill Intertie Project Between Covington Water District, King County
Water District No. 111 and the City of Auburn, which amendment shall be in substantial
conformity with the amendment attached hereto as Exhibit A and incorporated herein by
this reference.
Section 2. That the Mayor is authorized to implement such administrative
procedures as may be necessary to carry out the directives of this legislation.
Section 3. That this Resolution shall take effect and be in full force upon
�
passage and signatures hereon.
�
Dated and Signed this�day of , 2017.
CITY OF AUBURN
ANCY US, MAYOR
ATTEST:
� �
Danielle E. Daskam, City Clerk
APP D AS TO FORM'
ni . ei City A orne
Resolution No. 5332
November 17, 2017
Page 2 of 2
FIRST AMENDMENT TO INTERLOCAL AGREEMENT 2 FOR
THE LEA HILL INTERTIE PROJECT BETWEEN COVINGTON WATER DISTRICT,
KING COUNTY WATER DISTRICT NO. 111,AND THE CITY OF AUBURN
THIS FIRST AMENDMENT TO INTERLOCAL AGREEMENT 2 ("First
Amendment"), is made and entered into by and between Covington Water District,a Washington
municipal corporation ("Covington"), King County Water District No. 111, a Washington
municipal corporation ("WD 111") (Covington and WD 111 are referred to collectively as the
"Districts"), and the City of Auburn, a Washington municipal corporation ("City"), (individually
a"Party" and collectively the "Parties") for the purposes set forth below.
1. RECITALS.
1.1. The Parties entered into Interlocal Agreement 2 for the Lea Hill Project("IA2") in
1996 providing, in part, for the construction and operation of certain water faeilities to be jointly
funded by the Parties and owned and operated by the City ("Project"). IA2 provided for the City
to make water supply available to the Districts.
1.2. The Parties recognize that some changes in circumstances require the clazification
of the terms and conditions of IA2, including that Covington no longer desires to be a party to IA2
and therefore desires to terminate any rights and obligations it may have with respeet to IA2. WD
111 and the City also desire to make certain clarifications and modifications to IA2, including the
further definition of the duration of IA2.
1.3. The Parties are authorized by chapter 39.34 RCW,the Interlocal Cooperation Act,
to enter into interlocal agreements for joint action.
Now, therefore, in consideration of the following terms and conditions, the Parties agree
as follows:
2. AGREEMENT.
2.1. The recitals set forth above are incorporated herein in full by this reference.
2.2 As of the Effective Date of this First Amendment, Covington shall no longer be a
party to IA2 and shall have no further rights or obligations with respect to IA2 or this First
Amendment.
2.3 Section IX. "Term of Duration of Agreement" of IA2 is hereby modified and
amended to read as follows:
IX. Term of Duration of Agreement: Unless terminated sooner by mutual
agreement of the Parties, this IA2 sha11 have a term of sixty (60) years
commencing from the Effective Date of this First Amendment.
2.4 Section VIII.A. "Conditions of Service" of IA2 is hereby modified and
amended to read as follows:
Exhibit A to Resolution 5332 -1-
VIII.A.Auburn will continue to honor the provisions of IA2 with respeet to
providing water supply to WD 111 on an interruptible basis upon
request from WD 111 for such service, subject to the availability of
Auburn's water supply to provide water service as reasonably
determined by Auburn. Auburn does not presently have the
necessary capacity (i.e., water supply and/or water rights) to
guarantee delivery of firm uninterruptible water. It is acknowledged
and agreed that in the event Auburn experiences any failure or
decreased capacity for any reason or increased demand within its
retail service area as it currently exists or may exist in the future,the
supply to WD 111 may be immediately reduced or stopped under
such conditions at the reasonable discretion of Auburn. WD 111
agrees that Auburn may take such action irrespective of any costs,
investment in capacity, or other reliance which may have been
placed upon the intertie facilities and interruptible water supply
referenced in this IA2.
2.5 Section VI.A."Service Charges"2,8.1 of the Agreement is hereby modified
and amended to read as follows:
VI.A. Auburn retail water customers and wholesale water customers are
treated differently. Retail customers for Auburn include all citizens
and properties within Auburn's re#ail service area as it currently
exists or may exist in the future. Auburn has created a customer
classification for wholesale customers, and rates for service charges
for wholesale customers shall be based on a rate study for the
wholesale customer classif cation. Auburn will chazge WD 111 a
wholesale rate based on a rate study regularly done in Auburn's
normal course of business and as approved and adopted by the City
of Auburn's City Council. Wholesale water rates sha11 be based on
costs of providing the service.
2.6 A new subsection F. is added to Section III. "Description of Project" as
follows:
III.F. Auburn agrees to continue to operate and configure its water system
to make wholesale water service available to WD 111 through the
present WD 111 connection to Auburn's water system on 132°a
Avenue NE south of SE 299�' Street (referred to as the "DuBerry
Intertie") or through such other connection point(s) as may be
mutually agreed to by Auburn and WD 111.
2.7 Exeept as expressly set forth in this First Amendment, all other provisions of IA2
shall remain unchanged,and in full force and effect.Each reference in IA2 to itself shall be deemed
also to refer to this First Amendment.
2.8 Auburn will work with WD 111 to further review the language of IA2 to determine
whether other updates or amendments are appropriate. �
E�ibit A to Resolution 5332 -2-
2.9 This First Amendment to IA2 is contingent on final approval by the Auburn City
Council,the WD 111 Board of Commissioners,and the Covington Board of Commissioners. Staff
and counsel of the Parties recommend the approval of this First Amendment to their respective
City Council and Board of Commissioners.
2.10 All capitalized terms used but not defined in this First Amendment shall have the
same meanings as defined in IA2.
2.11 This First Amendment shall be effective on the date whereby it has been executed
by all of the Parties ("Effective Date").
2.12 Pursuant to RCW 39.34.040; this First Amendment shall be filed with the King
County Auditor upon full execution or listed on the City's and WD 111's respective web sites
listed by subject matter.
KING COUNTY WATER DISTRICT NO. 111
By:
Its:
Dated:
COVINGTON WATER DISTRICT
By:
Its:
Dated:
CITY OF AUBURN
By:
Nancy Backus, Mayor
Dated:
Attest:
By:
City Clerk
Approved as to form:
By:
City Attorney
Exhibit A to Resolution 5332 -3-
I
� �
FIRST AMENDMENT TO INTERLOCAL AGREEMENT 2 FOR
THE LEA HILL INTERTIE PROJECT BETWEEN COVINGTON WATER DISTRICT,
KING COUNTY WATER DISTRICT NO. 111,AND THE CITY OF AUBURN
THIS FIRST AMENDMENT TO INTERLOCAL AGREEMENT 2 ("First
Amendment"), is made and entered into by and between Covington Water District, a
Washington municipal corporation ("Govington"), King County Water District No. 111, a
Washington municipal corporation ("WD 111") (Covington and WD 111 are referred to
collectively as the "Districts"), and the City of Auburn, a Washington municipal corporation
("City"),(individually a "Party" and collectively the "Parties")for the purposes set forth below♦
1. RECITALS.
1.1. The Parties entered into Interlocal Agreement 2 for the Lea Hill Project("IA2")in
1996 providing, in part, for the construction and operation of certain water facilities to be jointly
funded by the Parties and owned and operated by the City ("Project"). IA2 provided for the City
to make water supply available to the Districts.
1.2. The Parties recognize that some changes in circumstances require the clarification
of the terms and conditions of IA2, including that Covington no longer desires to be a party to
IA2 and therefore desires to terminate any rights and obligations it may have with respect to IA2.
WD 111 and the City also desire to make certain clarifications and modifications to IA2,
including the further definition of the duration of IA2.
1.3. The Parties are authorized by chapter 39.34 RCW, the Interlocal Cooperation Aet,
to enter into interlocal agreements for joint action.
Now, therefore, in consideration of the following terms and conditions, the Parties agree
as follows:
2, AGREEMENT.
2.1. The recitals set forth above are incorporated herein in full by this reference.
2.2 As of the Effective Date of this First Amendment, Covington shall no longer be a
party to IA2 and shall have no further rights or obligations with respeet to IA2 or this
First Amendment.
2.3 Section IX. "Term of Duration of Agreement" of IA2 is hereby modified and
amended to read as follows:
IX. Term of Duration of Agreement: Unless terminated sooner by mutual
agreement of the Parties, this IA2 shall have a term of sixty (60) years
commencing from the Effective Date of this First Amendment.
-1-
�� J
2.4 Section VIII.A. "Conditions of Service" of IA2 is hereby modified and
amended to read as follows:
VIII.A.Auburn will continue to honor the provisions of IA2 with respect
to providing water supply to WD 111 on an interruptible basis
upon request from WD 111 for such service, subject to the
availability of Auburn's water supply to provide water service as
reasonably determined by Auburn. Auburn does not presently have
the necessary capacity (i.e., water supply and/or water rights) to
guarantee delivery of firin uniriterruptible water. It is
acknowledged and agreed that in the event Auburn experiences any
failure or decreased capacity for any reason or increased demand
within its retail service azea as it currently exists or may exist in the
future, the supply to WD 111 may be immediately reduced or
stopped under such conditions at the reasonable discretion of
Auburn. WD 111 agrees that Auburn may take such aetion '
irrespective of any costs, investment in capacity, or other reliance
which may have been placed upon the intertie facilities and.
interruptible water supply referenced in this IA2.
2.5 Section VI.A. "Service Charges" 2.8.1 of the Agreement is hereby
modified and amended to read as follows:
VI.A. Auburn retail water customers and wholesale water customers are
treated differently. Retail customers for Auburn include all citizens
and properties within Auburn's retail service area as it currently
exists or may exist in the future. Auburn has created a customer
classification for wholesale customers, and rates for service
chazges for wholesale customers shall be based on a rate study for
� the wholesale customer classification. Auburrrn will chazge WD 111
a wholesale rate based on a rate study regularly done in Auburn's
normal course of business and as approved and adopted by the City
of Auburn's City Council. Wholesale water rates sha11 be based on
costs of providing the service.
2.6 A new subsection F. is added to Section III. "Description of Project" as
follows:
III.F. Auburn agrees to continue to operate and configure its water
system to make wholesale water service available to WD 111
through the present WD 111 connection to Auburn's water system
on 132"d Avenue NE south of SE 299�' Street (referred to as the
"DuBerry Intertie") or through such other connection point(s) as
may be mutually agreed to by Auburn and WD 111.
-2-
; . . .
2.7 Except as expressly set forth in this First Amendment, all other provisions of IA2
shall remain unchanged, and in full force and effect. Each reference in IA2 to itself shall be
deemed also to refer to this First Amendment.
2.8 Auburn will work with WD 111 to further review the language of IA2 to
determine whether other updates or amendinents are appropriate.
2.9 This First Amendment to IA2 is contingent on final approval by the Auburn City
Council, the WD 111 Board of Commissioners, and the Covington Board of Commissioners.
Staff and counsel of the Parties recommend the approval of this First Amendment to their
respective City Council and Board of Commissioners.
2.10 All capitalized terms used but not defined in this First Amendment shall have the
same meanings as defined in IA2.
2.11 This First Amendment shall be effective on the date whereby it has been executed
by all of the Parties("Effective Date").
2.12 Pursuant to RCW 3934.040, this First Amendment shall be filecl with the King
County Auditor upon full execution or listed on the City's, Covington's and WD 111's
respective web sites listed by subject matter.
KING COU TY WAT R DISTRICT NO. 111
_
By• _ _ � � i�a�r���C M, 1-���1�1
�ts: a�a� �����a.��
Dated: _ i� i.�z l�.o,�
COVIN N W T R DISTRICT
By:
Its:
Dated: DEC �.4 2017
CITY O UBU
By:
Naney Backus, or ,
Dated: DEC 0 4 2017
Attest:
By: �._ __��S P�..��
Appro�ed as t or�:
-3-