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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
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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
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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