HomeMy WebLinkAboutITEM VIII-B-4
CITY OF
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B - AGENDA BILL APPROVAL FORM
WASHINGTON
Agenda Subject: Date:
Resolution No. 4660 November 29, 2010
Department: Attachments: Budget Impact:
Public Works Resolution No. 4660 and Exhibit "A" $ 0
Agreement
Administrative Recommendation:
City Council adopt Resolution No. 4660.
Background Summary:
Resolution No. 4660 authorizes the Mayor and City Clerk to execute an Interim Water Sales Agreement
between King County Water District No. 111 (WD111) and the City of Auburn.
The City of Auburn and WD111 are parties to Interlocal Agreement 2 for the Lea Hill Intertie Project. The
City and District desire to avoid unpredictable water sales and to create a predictable and reliable cost for
wholesale water to be sold by Auburn to the District. The new agreement addresses details for the cost
and quantity of water to be provided to the District.
W1206-4
04.11
Reviewed by Council & Committees: Reviewed by Departments & Divisions:
❑ Arts Commission COUNCIL COMMITTEES: ❑ Building ❑ M&O
❑ Airport ® Finance ❑ Cemetery ❑ Mayor
❑ Hearing Examiner ❑ Municipal Serv. ❑ Finance ❑ Parks
❑ Human Services ❑ Planning & CD ❑ Fire ❑ Planning
❑ Park Board ®Public Works ® Legal ❑ Police
❑ Planning Comm. ❑ Other ® Public Works ❑ Human Resources
Action:
Committee Approval: ❑Yes ❑No
Council Approval: ❑Yes ❑No Call for Public Hearing
Referred to Until
Tabled Until
Councilmember: Wagner Staff: Dowd
Meeting Date: December 6, 2010 Item Number: VIII.B.4
AUBURN *MOPE THAN YOU IMAGINED
RESOLUTION NO. 4 6 6 0
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 KING COUNTY
WATER DISTRICT NO. 111
WHEREAS, the City adopted Resolution No 2721 executing an Interlocal
Agreement No. 2 for the Lea Hill Intertie Project between the Covington Water
District, King County Water District No. 111 and the City of Auburn; and
WHEREAS, to avoid unpredictable water sales and to create a
predictable and reliable cost for wholesale water to be sold by the City to the
Covington and King County Water District, on June 17, 2002, the City adopted
Resolution No. 3482, which authorized the execution of an Interim Water Sales
Agreement between the parties; and
WHEREAS, on February 22, 2005, the prior Interim Water Sales
Agreement was superseded and replaced with a new agreement per Resolution
No. 3817; and
WHEREAS, Covington has opted out of the original agreement; and
WHEREAS, The City and the King County Water District No. 111 wish to
continue their prior arrangement;
WHEREAS, in keeping with the original intent of the parties to create a
predictable and reliable cost for wholesale water, it is appropriate for the City to
Resolution No. 4660
December 1, 2010
Page 1 of 3
enter into a new Interim Water Sales Agreement with King County Water
District No. 111 which would supersede and replace the prior agreement.
NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF AUBURN,
KING COUNTY, WASHINGTON, HEREBY RESOLVES as follows:
Section 1. The Mayor of the City of Auburn and the Auburn City Clerk
are hereby authorized to execute an Interim Water Sales Agreement between
the City of Auburn and King County Water District No. 111, in substantial
conformity with the Agreement attached hereto, marked as Exhibit "A" and
incorporated herein by this reference.
Section 2. The Mayor is hereby authorized to implement such
administrative procedures as may be necessary to carry out the directives of
this legislation.
Section 3. This resolution shall be in full force and effect upon
passage and signatures hereon.
Dated and Signed this day of , 2010.
CITY OF AUBURN
PETER B. LEWIS, MAYOR
Resolution No. 4660
December 1, 2010
Page 2 of 3
ATTEST:
Danielle E. Daskam, City Clerk
APP V D TO FORM.
D iel B. Heid, ttorn
Resolution No. 4660
December 1, 2010
Page 3 of 3
INTERIM WATER SALES AGREEMENT
between
KING COUNTY WATER DISTRICT NO. 111
and the
CITY of AUBURN
This Agreement ("Agreement") is made and entered into this day of
December, 2010 by and between King County Water District No. 111, a Municipal
Corporation ("District") and the City of Auburn, a Municipal Corporation ("Auburn")
(individually a "Party" and collectively the "Parties").
Recitals:
A. The Parties are also parties to "Interlocal Agreement 2 for the Lea
Hill Intertie Project between 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 District.
C. By guaranteeing a minimum purchase of water for a given period of
time, the cost of water, which to a significant extent is based on
peaking factors, can be minimized for all of Auburn's customers.
D. This Agreement is intended to establish a rate for a fixed block of
water for the mutual benefit of the Parties.
E. It is in the interest of the District to have a predictable supply of
Resolution No. 4660
Exhibit "A"
Page 1 of 8
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 Parties intend that the take or pay water provided for in this
Agreement is a portion of and not in addition to the 2.5 MGD
allocated to the District 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 District agrees to purchase a minimum block
of water as identified in this Agreement from Auburn on a "take or
pay" basis. For purposes of this Agreement, a "Block" shall mean
either an average of 0.75 MGD of water between the time period of
October 1 and May 31, or an average of 1.0 MGD of water
between the time period of June 1 and September 30. "Take or
pay" shall mean that, in the absence of an emergency as set forth
in Section 7 of this Agreement, the District shall pay for the Block of
Resolution No. 4660
Exhibit "A"
Page 2 of 8
water whether or not the water is actually taken by the District,
subject to the provisions of Section 2 herein.
CHARGES FOR WATER: On a monthly basis, the District will pay, as
shown on Exhibit 1 attached hereto and incorporated herein by this
reference, the Base Charge, plus the Block Rate. In addition to the
Base Charge and the Block Rate, any water taken in excess of the
Block amount ("Excess Water") during any month shall be billed at the
appropriate overage rate shown in Exhibit 1; provided, that: 1) any
water taken during an emergency, as defined in Paragraph 7, shall be
billed at the Block Rate, and 2) if Auburn is unable to deliver up to the
Block quantity of water requested by the District, then Auburn shall
only bill the District for the amount of water actually delivered at the
Block Rate. Auburn shall send a monthly bill to WD 111 for all water
purchased by the District.
I QUANTITY AVAILABLE / DELIVERED: The Block quantity shall be
calculated as the amount of water to be delivered at an average rate of
either 0.75 MGD or 1.0 MGD (depending on the season) measured
over a rolling 3 day period, with total quantities delivered within any
single day being within 10%, plus or minus, of the Block quantity in
effect at the time as measured at the Auburn Intertie Pump Station
meter ("Master Meter"). For the Block quantity, the District will be
Resolution No. 4660
Exhibit "A"
Page 3 of 8
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 RECONCILIATION: 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 Agreement. If there is a difference between
the Master Meter and the calculated quantities, Auburn will either
charge or credit the District's account at the Block Rate.
ANNUAL REVIEW AND ADJUSTMENT: The initial Block of either
0.75 MGD or 1.0 MGD(depending on the season) shall remain in effect
through December 31, 2015. Each year, the Block may be adjusted
by mutual agreement. By September 1 of each year the District shall
notify Auburn of its intent to continue without change or request an
increase or decrease in writing of the Block quantity desired. Auburn
will review its ability to approve the change and may approve any
requested change in the Block quantity up to but not to exceed 1.5
MGD which would become effective January 1 of the year following the
request. If Auburn determines it cannot approve the request it will
Resolution No. 4660
Exhibit "A"
Page 4 of 8
communicate this information to the District before October 1, and
continue to provide the same amount as during the current year. In
the event that neither Party communicates its intent to adjust the Block
under this provision, the Block shall be deemed to continue
unchanged.
I; 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, 2015. The Agreement shall automatically be
renewed for an additional year at the conclusion of the term of this
Agreement or any extension thereof unless either Party provides the
other with notice of an intent not to extend this Agreement, which
notice shall be received by the other Party 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.
ZI EMERGENCIES: For purposes of this Agreement, an emergency
shall be defined as a need for water 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
event within the water supply system. An emergency period shall be
Resolution No. 4660
Exhibit "A"
Page 5 of 8
for no more than five (5) working days without written request by the
District 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 District of the
interruption or limiting not less than three days prior to the service
disruption. The City agrees to use best efforts and reasonable
diligence to notify the District 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.
8) PRIOR AGREEMENT SUPERSEDED: This Agreement supersedes
and replaces the Interim Water Sales Agreement between Covington
Water District, King County Water District No. 111 and the City of
Auburn dated February 22, 2005.
In witness whereof the Parties have caused this Agreement to be
executed by their duly authorized representatives on the day of
, 2010.
CITY OF AUBURN
PETER B. LEWIS
MAYOR
Resolution No. 4660
Exhibit "A"
Page 6 of 8
ATTEST:
Danielle E. Daskam,
City Clerk
APPR VED FOR :
ie B. Hei ,
City Attorney
KING COUNTY WATER DISTRICT NO. 111
WILLIAM C. HALL
GENERAL MANAGER
ATTEST:
APPROVED AS TO FORM:
District Attorney
Resolution No. 4660
Exhibit "A"
Page 7 of 8
Interim Water Sales Agreement
Between
King County Water District No. 111
And the
City of Auburn
Exhibit 1
Take or Pa Monthl Rates
Year Base Charge Block and Summer
Winter Overage Overage
Rate
2010 $175.00 $0.91 Block rate +
$0.25
2011 $175.00 0.91 X CPI* Block rate +
$0.25
2012 $175.00 2011 Rate X Block rate +
CPI` $0.25
2013 $175.00 2012 Rate X Block rate +
CPI" $0.25
2014 $175.00 2013 Rate X Block rate +
CPI* $0.25
2015 $175.00 2014 Rate X Block rate +
CPI* $0.25
* 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 2011 equals the October 2010 CPI value divided by the October 2009
CPI value.
Resolution No. 4660
Exhibit "A"
Page 8 of 8