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Return Address:
Auburn City Clerk
City of Auburn
25 West Main St.
Auburn, WA 98001
111111' 111111111111' I
20060210002255
PACIFIC NW TIT INTERLOCA 44.00
PAGE001 OF 013
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RECORDER'S COVER SHEET
Document Title(s) (or transactions contained therein):
R-J'\N\ . ~ ~ 3'" A- - , d--.
Interlocal Agreement (Resolution No. 3817) CNiQ
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Reference Number(s) of Documents assigned or released:
DAdditional 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 District No. 111
Legal Description (abbreviated: i.e. lot, block, plat or section, township, range)
PER RCW 39.34
D Additional legal is on page of document.
Assessor's Property Tax Parcel/Account Number
N/A
o Assessor Tax # not yet assigned
Said document(s) were fNed for
record by Pacific Northwest Titie as
~modation only. It has not been
examined as to proper exeoutton or
as to its affect upon title.
,
RESOLUTION NO. 3817
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, the City Council of the City of Auburn, Washington, adopted
Resolution No. 3482 on June 17,2002, authorizing the execution of an Interim
Water Sales Agreement between Covington Water District (Covington), King
County Water District No. 111 (WD 111) and the City of Auburn (Auburn) 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 continue the intent of the Agreement 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 continue
the intent of the interim water sales agreement; and
WHEREAS, this Agreement supersedes and replaces the Interim Water
Sales Agreement between Auburn, Covington and WD 111, which was
approved by Resolution No. 3482 and executed on June 17,2002.
NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF AUBURN,
WASHINGTON, HEREBY RESOLVES as follows:
Resolution No. 3817
January 28, 2005
Page'
Section 1. The Mayor is hereby authorized to execute an Interim
Water Sales Agreement between Auburn and Covington and WD 111 in
substantial conformity with the agreement attached hereto, marked as Exhibit
"A" and incorporated herein by this reference.
Section 2. That the Mayor is authorized to implement such other
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.
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Dated and Signed this J,J-:.--'" day of 1%"('/J~7 ,2005.
C FA
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PE ER B. LEWIS
MAYOR
ATTEST:
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Daliielle E. Daskam,
City Clerk
APPF3-,OVED AS TO FORM: t1
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Resolution No. 3817
January 28, 2005
Page 2
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 V Ilt\ day of
February 2005, by and between Covington Water District (Covington) a Municipal
Corporation, King County Water District No. 111 (WD III), a Municipal Corporation
(collectively referred to herein as "the Districts") and the City of Auburn (Auburn), a
Municipal Corporation.
Recitals:
A. The parties to this Agreement are also parties to "Interlocal
Agreement 2 for the Lea Hilllntertie Project between Covington
Water District, 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 Districts.
C. 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.
Exhibit "A"
Resolution 3817
- 1 -
D. This Agreement is intended to establish a rate for a fixed block of
water for the mutual benefit of the parties of this Agreement.
E. 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.
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 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 1A2.
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
Exhibit "A"
Resolution 3817
-2-
the Block of water may be modified as set forth in Paragraph 5
"Annual Review and Adjustment" herein). If the Districts cannot
accept 1.5 mgd due to an emergency, as defined in Paragraph 7,
they will be billed for the water they receive at the Block rate.
~ 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") 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 7, 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.
ID 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 at the Auburn Intertie Pump Station meter (Master
Meter). 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
Exhibit "A"
Resolution 3817
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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 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 TRUE UP OF THE TAKE OR PAY QUANTITY
DELIVERED: The Master Meter is located at the Lea Hill Intertie
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 "take or pay" agreement.
Billing for differences between the Master Meter and the calculated
quantities will be charged or credited at the "take or pay" rate to the
District's accounts.
ID. ANNUAL REVIEW AND ADJUSTMENT: The initial Block of 1.5 MGD
shall remain in effect through December 31,2010. Each year, the
"take or pay" Block may be increased by mutual agreement. By
September 1 of each year the Districts shall notify Auburn of their
Exhibit "A"
Resolution 3817
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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.
ill 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 31,2010; 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 not
affect any rights or obligations under IA2.
Il 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
Exhibit "A"
Resolution 3817
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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.
ID. 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.
ID PRIOR AGREEMENT SUPERSEDED: This Agreement supersedes
and replaces the Interim Water Sales Agreement between Auburn,
Covington and WD 111 executed on June 17, 2002.
Exhibit "A"
Resolution 3817
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In witness whereof the participants hereto have caused this
day of t:ebrM.ry
ATTEST:
i<~[d!I1u1r~
'bamelle E. Daskam,
City Clerk
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FAU~/y
PETER B. LEWIS
MAYOR
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COVINGTON WATER DISTRICT
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KING COUNTY WATER DISTRICT NO. 111
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GENERAL MANAGER
ATTEST:
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APPROVE[}~S TOtORM:
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Dist(ict Attorney
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Interim Water Sales Aareement
Between
Covinaton Water District.
Kina County Water District No. 111
And the
City of Auburn
Exhibit 1
Take or Pay Monthl' Rates
Year Base Charge' 1.5 MGD and Summer
Winter Overage Overage
Rate
2005 $175.00 $0.85 1.5 MGD rate +
$0.25
2006 $175.00 $0.85 1.5 MGD rate +
$0.25
2007 $175.00 $0.85 1.5 MGD rate +
$0.25
2008 $175.00 0.85 X CPI" 1.5 MGD rate +
$0.25
2009 $175.00 2008 Rate X 1.5 MGD rate +
CPI" $0.25
2010 $175.00 2009 Rate X 1.5 MGD rate +
CPI" $0.25
*Covington and WD 111 are each responsible for paying a Base Charge of $175.00
per month per district.
** CPI means the Consumer Price Index - Urban for the Seattle - Tacoma -
Bremerton area for the month of October of the prior year, divided by the October
value of the year prior to that (see example below).
Example:
CPI for 2008 equals the October 2007 CPI value divided by the October 2006
value.
....
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