The URL can be used to link to this page

Home My WebLink About3482RESOLUTION NO. 3 4 8 2 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 COVINGTON WATER DISTRICT AND WATER DISTRICT No. 111. WHEREAS, Covington Water District (Covington), King County Water District No. 111 (WD 111) and the City of Auburn (Auburn) 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; and WHEREAS, the parties desire to avoid unpredictable water sales and create a predictable and reliable cost for wholesale water to be sold by Auburn to Covington and WD 111, and WHEREAS, it is in the public interest for the parties herein to enter into an interim water sales agreement, NOW, THEREFORE, THE COUNCIL OF THE CITY OF AUBURN, WASHINGTON, IN A REGULAR MEETING DULY ASSEMBLED, HEREWITH RESOLVES THAT: Section 1. Pursuant to RCW 39.34, the Interlocal Cooperation Act, Auburn, Covington and WD 111 have legal authority to cooperate with other localities on the basis of mutual advantage and provision of services. Section 2. The Mayor and City Clerk of the City of Auburn are herewith authorized to execute the Interim water Sales Agreement between Auburn and Covington and WD 111 with minor administrative changes if required. A copy of said Resolution No. 3482 06/11/02 Page 1 Agreement is attached hereto, denominated as Exhibit "A" and made a part hereof as though set forth in full herein. Section 3. The Mayor is hereby authorized to implement such administrative procedures as may be necessary to carry out the directives of this legislation. Section 4. This resolution shall be in full force and affect upon passage and signatures hereon. DATED this ~,-~'~d~ay of CITY OF AUBURN PETER B. LEWIS MAYOR ATTEST: Damelle E Daskam, City Clerk APB, R-/'~ED ~FORM: City Attorney Resolution No. 3482 06/11/02 Page 2 Return Address: Auburn City Clerk City of Auburn 25 West Main St. Auburn, WA 98001 2003071400273! PRCZFZC NU T/T ZRG 26.~0 PRGE eel OF ~8 ~?/14/2~3 15:21 KZNG COUNTY, UR RECORDER'S COVER SHEET Document Title(s) (or transactions contained therein): Interlocal Agreement (RES 3482) Interim Water Sales Agreement Reference Number(s) of Documents assigned or released: r-lAdditional reference #'s on page __ of document Grantor(s)/Borrower(s) (Last name first, then first name and initials) Auburn, City of Grantee/Assignee/Beneficiary: (Last name first) 1. Covington Water District 2, King County Water D strict 111 Legal Description (abbreviated: i.e. lot, block, plat or section, township, range) PER RCW 39.34 [] Additional legal is on page of document. IAssessor's Property Tax Parcel/Account Number N/A [] Assessor Tax # not yet assigned Exhibit "A" INTERIM WATER SALES AGREEMENT between COVINGTON WATER DISTRICT, KING COUNTY WATER DISTRICT NO. 111 and the CITY of AUBURN This Agreement ("Agreement") is made and entered into this /~// day of June, 2002, by and between Covington Water District (Covington) a Municipal Corporation, King County Water District No. 111 (WD 111), a Municipal Corporation (collectively referred to herein as "the Districts") and the City of Auburn (Auburn), a Municipal Corporation. Recitals: mo Exhibit "A" Resolution 3482 The parties to this Agreement are also parties to "Interlocal Agreement 2 for the Lea Hill Intertie Project between Covington Water District, King County Water District #111, and the City of Auburn" ("IA2"). 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 Districts. By guaranteeing a minimum purchase of water for a given period of time, i.e., a take or pay approach, the cost of water, which to a significant extent is based on peaking factors, can be minimized for all of Auburn' s customers. -1- Do Eo Fo Go This Agreement is intended to establish a rate for a fixed block of water for the mutual benefit of the parties of this Agreement. It is in the interest of the Districts 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. 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. The 1.5 million gallons of water per day ("MGD") take or pay water provided for in this Agreement is a portion of and not in addition to the 5 MGD 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 acknowledged, the parties hereby agree as follows: 1) TAKE OR PAY: The Districts agree to purchase an average of 1.5 MGD of water from Auburn on a take or pay basis. Take or pay shall mean that the Districts shall pay for 1.5 MGD whether or not the water is actually taken by the Districts (the "take or pay" water also referred to in this Agreement as "the Block" of water; provided the Block of water may be modified as set forth in Paragraph 4 "Annual Review and Adjustment" herein). If the Districts cannot accept 1.5 mgd due to an emergency, as Exhibit "A" Resolution 3482 -2- defined in Paragraph 6, they will be billed for the water they receive at the Block rate. 2) CHARGES FOR WATER: The Districts shall pay the rate per one hundred cubic feet of water ("CCF") for the 1.5 MGD Block shown in Exhibit 1, attached hereto, which is by this reference incorporated, except as further addressed in Paragraph 3 herein. Any water taken in excess ("Excess Water") of the Block during the winter (October 1 through May 31) shall be billed at the winter overage rate shown in Exhibit 1 and during the summer (June 1 through September 30) shall be billed at the summer overage rate shown in Exhibit 1. Any water taken during an emergency within the Covington and/or WD 111 systems, as defined in Paragraph 6, shall be billed at the 1.5 mgd Block rate. Auburn shall send one monthly bill to WD 111 for all water purchased by the Districts. 3) QUANTITY AVAILABLE / DELIVERED: The 1.5 MGD Block of water shall be defined as a block of water to be delivered at an average rate of 1.5 MGD measured over a rolling 3 day period with total quantities delivered within any single day being no more than 10% more or less than 1.5 MGD. If the Districts are unable for any reason to accept the Block of water, the minimum monthly payment shall be 1.5 MGD multiplied by the rate then in effect pursuant to Paragraph 2 above. If Auburn is unable to deliver the amount of water requested by the Districts, up to the Block of water, then Auburn will bill the Districts for the amount of water actually delivered at the Exhibit "A" Resolution 3482 Exhibit "A" Resolution 3482 block rate pursuant to Paragraph 2 above. For the take or pay water Block provided for herein, the Districts will be served on the same basis and with the same reliability 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. ANNUAL REVIEW AND AD,.IUSTMENT: The initial Block of 1.5 MGD shall remain in effect through December 31, 2005. Each year, the "take or pay" Block may be adjusted by mutual agreement. By September 1 of each year the Districts shall notify Auburn of their intent to continue without change or request an increase in the Block quantity. Any requested change in the Block quantity would be effective January 1 of the year following the request. In the event that neither party communicates its intent under this provision, the Block shall be deemed to continue unchanged. TERM: This Agreement shall remain in full force and effect from the first day of the month following the execution of this Agreement through December 31, 2005; provided that this Agreement shall automatically be renewed for an additional year at the conclusion of the term of this Agreement or any extension thereof unless any party provides the others with notice of an intent not to extend this Agreement, which notice shall be received by the other parties not less than one year prior to the expiration of the term of this Agreement or any extension thereof. The termination of this Agreement shall -4- not affect any rights or obligations under IA2. 6_1 EMERGENCIES: For purposes of this Agreement, an emergency shall be defined as resulting from a water shortage, a major water line break, fire demand, contamination to the water supply system, mechanical equipment failure, electrical equipment failure or Puget Sound Energy facility failure, or any other mutually agreed upon emergency within the water supply system. An emergency period shall be for no more than five (5) working days without written request by the Districts and approval by Auburn in writing to extend the emergency period. The City may change, reduce or limit 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 service, the City will notify the Districts of such not less than three days prior to the service disruption. The City agrees to use best efforts and reasonable diligence to notify the Districts as soon after it becomes aware of the need for emergency service disruption and further will, to the extent practical, limit the service disruption to daylight hours. 7) ,JOINT AND SEVERAL OBLIGATION: The obligation of the Districts as set forth therein shall be a Joint and Several obligation of the Districts. Allocation of the take or pay Block of water and the payment for such water shall be negotiated between the Districts outside of this Agreement. Exhibit "A" Resolution 3482 -5- In witness whereof the participants hereto have caused this Agreement to be executed by their proper officers on the day of ,2002. City of Auburn by: Title: Approved as to form by: ./ Title: · Covington Water District b Y.'%~4~/~~~~~ King County Water District #111 by · Title: Exhibit "A" Resolution 3482 -6- Interim Water Sales Agreement Between Covington Water District, King County Water District No. 111 And the City of Auburn Exhibit 1 Take or Pay Monthly Rates Year Base Charge* 1.5MGD Rate Winter Overage Summer Overage 2002 $175.00 $0.70 $0.80 $1.85 2003 $175.00 $0.75 $0.85 $2.00 2004 $175.00 $0.80 $0.90 $2.10 2005 $175.00 $0.85 $0.95 $2.20 * Covington and WD 111 are each responsible for paying a Base Charge of $175.00 per month per district. Exhibit "A" Resolution 3482 -7-