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HomeMy WebLinkAbout27811 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 RESOLUTION NO. 2 7 8 1 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF AUBURN, WASHINGTON, AUTHORIZING THE MAYOR AND CITY CLERK TO EXECUTE SOUTH KING COUNTY REGIONAL WATER ASSOCIATION JOINT OPERATING AGREEMENT BETWEEN PARTICIPATING CITIES OF KENT, BLACK DIAMOND, ALGONA AND AUBURN, COVINGTON WATER DISTRICT, LAKEHAVEN UTILITY DISTRICT, SOOS CREEK WATER AND SEWER DISTRICT AND KING COUNTY WATER DISTRICT NO. 111. WHEREAS, pursuant to RCW 39.34 entitled the "Interlocal Cooperation Act", the City of Auburn is authorized to enter into agreements with other public agencies to provide for the most efficient services; and WHEREAS, an adequate and safe water supply for South King County Regional Water Association (SKRWA) and its members is vital to both existing citizens and the long-term comprehensive plans of SKRWA members; and WHEREAS, the State and SKRWA have prepared a Coordinated Water System Plan (CWSP) for South King County; and WHEREAS, projects that provide for the coordinated and cooperative use and operation of supply, transmission, storage, treatment, and pumping facilities to minimize cost, provide for improved water quality, protect the environment, Resolution No. 2781 November 5, 1996 Page 1 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 provide for emergency needs and maximize the best use of the resource is in the best interest of the citizens of the region. NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF AUBURN, WASHINGTON, IN A REGULAR MEETING, DULY ASSEMBLED, HEREWITH RESOLVES AS FOLLOWS: Section 1. The Mayor and City Clerk of the City are hereby authorized to execute South King County Regional Water Association Joint Operating Agreement. A copy of said Agreement is attached hereto, denominated as Exhibit "A", and made a part hereof as though set forth in full herein. Section 2. The Mayor is hereby authorized to implement such administrative procedures as may be necessary to carry out the directives of this legislation. DATED and SIGNED this 2nd day of December, 1996. CITY OF AUBURN CHARLES A. BOOTH Mayor Resolution No. 2781 November 5, 1996 Page 2 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 ATTEST: Robin Wohlhueter, City Clerk APPROVED AS TO FORM: Michael J. Reynolds, City Attorney Resolution No. 2781 November 5, 1996 Page 3 SOUTH KING COUNTY REGIONAL WATER ASSOCIATION JOINT OPERATING AGREEMENT Revised October 1996 WHEREAS, an adequate and safe water supply for South King County Regional Water Association (SKCRWA) and its members is vital to both existing citizens and in implementing the long-term comprehensive plans of SKCRWA members; and WHEREAS, the State and SKCRWA prepared a Coordinated Water System Plan (CWSP) for South King County; and WHEREAS, projects that provide for the coordinated and cooperative use and operation of supply, transmission, storage, treatment, and pumping facilities to minimize cost, provide for improved water quality, protect the environment, provide for emergency needs, and maximize the best use of the resource is in the best interest of the citizens of the region; WHEREAS, the current and near-term water needs of the local governments and SKCRWA require steps to establish a cooperative subregional water supply system; and WHEREAS, the SKCRWA is committed to cooperate toward regional solutions for long range water supply needs. NOW THEREFORE, the SKCRWA signatory members of this Joint Operating Agreement (JOA), agree as follows: 1. GENERAL The Signatory Members acknowledge the requirement to incorporate land use planning as defined by the Growth Management Act with water supply planning; and The Signatory Members recognize the benefits of developing a subregional water supply system that will allow the optimum use of surface and groundwater to better manage and protect the area's water resources; and The Signatory Members will hold an Annual Meeting about September 30th to review the status of this JOA and any Amendments as well as other problems of mutual concern. The specific date, time, and location of the meeting will be set by mutual agreement. October 8, 1996 -1- 2. INTENT The general intent is to create a method for the Signatory Members to cooperatively use certain existing facilities and construct new facilities needed to develop a subregional water system The Signatory Members may mutually agree by Interlocal Agreement to produce additional water and distribute it within the Subregional Service Area, with or without change to their retail service area. The JOA provides a framework for joint development of specific projects that may include two or more Participants. Each facility project and/or intertie shall be developed under a separate Interlocal Agreement (IA) consistent with this JOA subject to approval by appropriate affected city council and/or water district boards. The specific intent of this JOA is to make provisions for a standardized form to create or expand cooperative agreements to meet the public water supply needs for both emergency and long-term use, and to establish a basis for agreement between Participants for financing, ownership, construction, and operation of mutually beneficial projects required to achieve cooperative objectives. These projects may include common facilities with other Agencies outside the SKCRWA planning area. It is further the specific intent of this JOA to preserve Signatory Members' existing water rights and protect the established or planned interest and needs of each Signatory Member with respect to sources of water. Suggested content for an Interlocal Agreement is shown in Exhibit A.. It is the desire of the Signatory Members that this JOA be incorporated into the South King County CWSP at the next update. The term "Participant" as used in this JOA shall mean all the signatories of an IA consistent with and implemented subsequent to this JOA. The term "Signatory Members" as used in this JOA shall mean all the members of the SKCRWA who have signed this JOA SUBREGIONAL SERVICE AREA AND FACILITIES "Subregional Service Area" shall mean the Signatory Members' Designated Water Service Areas identified in the CWSP or as approved by amendments to the CWSP or the ParticipantSKCRWA members' Comprehensive Water Plans. October 8, 1996 -2- "Subregional Facilities" shall mean: (a) that portion of the Participants' sources, interties, transmission, and storage systems required to supply water to the service area of the Participants or new facilities as defined by a separate IA pursuant to this JOA. those designated capacities within a Participant system as specifically defined in an appropriate IA. "Facility Ownership". Ownership of the physical facilities that exist on the date of this JOA shall remain with the individual Signatory Members. Unless otherwise agreed to within a specific IA, ownership and operational responsibilities of new facilities shall be based generally on location in designated service areas, with capacity rights defined by appropriate IA. WATER SUPPLY - CAPACITY RIGHTS Capacity Rights - Participants may purchase capacity by IA. Any changes in these capacity rights shall be recognized by an IA, approved by the appropriate affected city councils and/or water district boards. Additional JOA Participants - Other agencies may purchase capacity rights in subregional facilities subject to the provisions of paragraph 4.C. If other agencies become Signatory Members of the SKCRWA and become Participants in future projects undertaken under this JOA and future lAs, past costs associated with development of this JOA will be assessed to the new agency as specified in Exhibit B. C. Wholesaling Water - A Signatory Member may wholesale water through lease or otherwise, delivered through subregional facilities to areas outside of the Signatory Member's Service Area, so long as the other Signatory Members' capacity rights are not negatively impacted. Signatory Members of the SKCRWA agree that, where feasible and mutually beneficial, they will coordinate planning and development of water resources. b) Signatory Members further agree that prior to entering into any agreement to deliver long term water supply or construct joint facilities with a non-Signatory Member agency, they will first make a good faith effort to offer such supplies and/or capacities to Signatory Members (provide the right of first refusal). Such offers shall be made on a cost of service basis as established by separate IA. Signatory Members shall have 60 days to respond. Octobea: 8, 1996 -3- c) Signatory Members agree that when entering into any agreement to deliver long term water supply or construct joint facilities with a non-Signatory Member agency in accordance with this JOA, they will include and collect for remittance to the SKCRWA a fee for reimbursement of the costs for development of the JOA as specified in Attachment B. d) Regular meetings of the SKCRWA shall be the forum for making Signatory Members aware of discussions regarding water sales and joint projects, however all offers of participation or requests for participation shall be in writing with copies to other Signatory Members. Conservation All Participants will develop and implement a conservation plan that is consistent with State guidelines. Additional or supplemental conservation requirements beyond basic programs may be included in a specific Interlocal Agreement. Curtailment In general, curtailment for delivery of "firm water" shall be on a uniform percentage basis for both wholesale and retail customers and curtailment for delivery of "intermptible water" shall be on a "last in first out" basis as determined by the date of formal agreement. Specific curtailment requirements and provisions shall be included in Interlocal Agreements implemented under this JOA. Quality - An objective of the Signatory Members is to maintain the quality of the water in the subregional facilities at or above the quality required by the State drinking water standards. The purchasing Participant will be responsible for ensuring water quality blending analyses and other water quality issues are resolved to their own satisfaction. The Signatory Members may meet periodically to ensure that water quality and operational issues are addressed, and that needed information is exchanged in a timely fashion. The written results of these meetings will be circulated in a timely manner to all members and participants and reviewed at the annual meeting. Additional Facilities - Projected needs will be identified by the Participants based on the Participant's designated service areas. As five or more years may be needed to bring major new source capacity capabilities on line, five-year and ten-year forecasts are required, and must be updated whenever a Participant becomes aware of any significant change in their forecast demand. These will be discussed jointly as they arise, and reviewed at the annual meeting. Financing - Each Project IA will include pertinent details of financing for that project. Financial participation in existing and additional facilities will be based on each Participant's projected need for each facility, as designated capacity rights. October 8, 1996 -4- Cost of Service Charge - The Signatory Members and Participants will establish wholesale water sales charges for both emergency and long-term supply that include: (1) capital cost, (2) fixed operating cost, and (3) a variable operating cost based on quantity of water delivered based on actual costs of providing the service. Fixed and variable operating and maintenance costs payments will be made monthly per meter and use rates. Projected annual rate adjustments and documentation shall be provided at the annual meeting. Any rate increase will be effective beginning January 1, of the following year. (1) The Rates and Charges for the capital, operation, and maintenance of the system shall be based on the following: (a) Capital Cost - Those construction related costs incurred for Capacity Rights. Capital Costs for facilities contracted solely for a specific project (described in an IA) are allocated based on designated capacity to be purchased. Capital costs shall include the debt service for each Participant. Such debt service shall be defined as the actual debt service on debt issued for the Participant's proportionate share of capacity rights, or if no debt is issued for the Participant's costs by the financing Participant, the amortized value at the interest rate of the most recent revenue bond issued by the financing Participant over 20 years. However, should all capital costs be paid in full by any Participant purchasing capacity rights prior to the time of the financing Participant incurring the costs, no interest charges shall be assigned to the Participant purchasing capacity rights. Capital Costs associated with a supplying Participant's construction of their internal water system facilities may be included in the fixed and variable operating costs as appropriate, using cost of service principles, in the same manner as those costs are included in the supplying Participant's customer rate base. (b) Fixed Operating Cost - The cost of labor, supervision, supplies, utilities, services, taxes, insurance, and all other costs required to operate and maintain the system other than those items included under Variable Operating Cost. The operating cost will include an allocation for renewal and replacement. (c) Variable Operating Cost - Those costs directly proportionate to the volume of water produced, including chemicals, electric power, and other costs required to meet customer and system needs not included in (a) and (b) above. October 8, 1996 -5- (2) Accounting Subregional facilities accounting shall be documented in accordance with generally accepted accounting practices acceptable to the Participants. 5. ADMINISTRATIVE~ LEGAL AND OTHER PROVISIONS Each Signatory Member shall designate in writing their representative responsible for coordination and implementation of the JOA and the subsequent IAs. The designated individuals will be the primary contact for all project approvals and communication and shall prepare and publish a schedule and plan to facilitate the planning, design and day-by-day operation of facilities associated with the subsequent lAs. Signatory Members may propose Amendments to this JOA at any time. Signatory Members shall vote on proposed Amendments at the Annual Meeting. A quorum of Signatory Members present shall approve any Amendments to this JOA prior to their submittal to Signatory Members city councils and/or water district boards for approval. A Special Meeting of the Signatory Members may be called for the purpose of amending this JOA by two thirds of the Signatory Members. A Signatory Member may withdraw from this JOA by providing 120 days notice to other Signatory Members. Notice shall be provided to each Signatory Member in writing and shall include the reason for withdrawal. This JOA shall remain in full force unless terminated by mutual agreement. Termination or withdrawal shall not affect any Interlocal Agreements negotiated under this JOA. October 8, 1996 -6- this agreement be IN WITNESS WHEREOF, the SKCRWA members heretol~..have cause~99~' to executed by their proper Officers on the ~ day of By: Title: ~ City of Algor~a~ Date: l- '~1" ~/? Attest: By: Approved As To Form: By: Title: City of.~ubu~ _ Date: Attest: By: Ap~-6ved As T_~ Form: October 8, 1996 -7- Attest: City of Black J~iamond Date: By: Approved As To Form: By: Title: City o~ent Date: Attest: Approved As To Form: Attest: By: Approved As To Form: By: October 8, 1996 -8- Attest: By: Approved As To Form: By: Attest: By: Approved As To Form: By: Attest: By: Approved As To Form: By: Title: ~~,.~.,_ Lakehaven Utility District Date: ~/.:Y/'/77 Title: Soos Creek Water and Sewer District Date: a"/,~//ct ") Title: King County Water District #111 Date: October §, 1996 -9- Attest: By: Approved As To Form: By: Attest: By: Approved As To Form: By: Attest: By: Approved As To Form: By: By: Title: Date: By: Title: Date: By: Title: Date: October 8, 1996 -10- South King County Regional Water Association Joint Operating Agreement Exhibit A Check List for Interlocal Agreements Project Title General List of Utilities to be parties to the Inteflocal Agreement (IA) and approval of the appropriate city councils and/or water district boards. · Consistency with the Joint Operating Agreement (JOA). · Description of need for the project. · Listing of potential wholesale customers for the water in accordance with Section 4.C of the JOA. · Recognition of assessment of costs associated with development of JOA in accordance with Section 4.B of the JOA. · Recognition of right of first refusal to excess capacity of Signatory Members of the South King County Regional Water Association (SKCRWA) in accordance with Section 4.C of the JOA. · Recognition that capacity and water rights are available to meet the needs of the IA. 3. Description of Project · Include a drawing (or description) which identifies all the facilities to be considered within the IA. Included within the description should be all jointly or solely owned facilities that are to be operated or paid for by a party to the IA. · Description of long term ownership of the facility. · Identification of the party responsible for operation and/or maintenance of the facility. · Identification of the party responsible for payment for the design and construction of the facility. 4. Project Costs, Financing, Capacity Rights · Description of all project costs and the allocation to each party. · Definition of capacity rights for all facilities. · Definition of cost sharing for long-term maintenance for each facility. · Definition of method of reimbursement for moneys expended (if required). · Description of any applicable latecomer fees or hook-up charges. · Description of requirements for record keeping and monitoring of costs. Project Design and Construction Management Definition of overall project management responsibilities. Definition of design and construction management responsibilities for individual facilities. · Description of basic periodic meeting schedule for review of project progress. Conditions of Service · Limitations to source sharing or delivery of water (if any). · Design criteria for the project facilities. · Minimum and maximum flow rates and pressures. · Items specifically excluded from the project. 7. Term of Duration of the Agreement · Discussion of the length of time the agreement is in effect as well as the method to terminate the agreement and succeeding agencies' obligations. 8. Amendments · Method by which the agreement could be amended. 9. Hold Harmless, Liability Language, etc. South King County Regional Water Association Joint Operating Agreement Exhibit B Computation of Charges Initial Computation based on 8 shares. $16,652 8 $ 2,081 Cost to develop JOA (from Covington and WD 111). Initial "charge" for a share. Cost to the three participants of IA2. Covington and Auburn, three share= $ 6,244 WD 111, two shares = $ 4,163 Final Computation based on 12 shares. $16,652 12 $ 1,388 Ultimate use charge Algona and Black Diamond, one share = $ 1,388 WD 111, two shares = $ 2,775 Auburn, Kent, Covington WD, Lakehven UD, Or Soos Creek W&SD, three shares = $ 4,163 Reimbersement for Development and initial use (to Covington, WD 111 ,and Auburn) $16,652 Cost for development. Covington WD 111 Auburn $ 8,326 $ 8,326 $ $ 6,244 $ 4,163 $ 6,244 $ 2,081 $ 4,163 $ (6,244) development cost use charge IA2 $ 2,081 $ 4,163 $ recovery charge IA2 (Auburn) $ 6,244 $ 4,163 $ 6,244 $ 4,163 $ 2,775 $ 4,163 $ 2,081 $ 1,388 $ 2,081 ultimate use charge remaining reimb. $ 463 $ 463 $ 1,619 $ 925 $ 463 $ 1,619 recovery charge IA3 (Algona) remaining reimb. JOA Exhibit B Fees 6/1/97