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Home My WebLink About2925 (2) 1 RESOLUTION NO 2 9 2 5 2 3 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF AUBURN, WASHINGTON, AUTHORIZING THE MAYOR AND CITY CLERK TO EXECUTE 4 SETTLEMENT AGREEMENT BETWEEN THE CITY OF AUBURN AND THE CITY OF BONNEY LAKE 5 6 WHEREAS, Auburn and Bonney Lake are currently involved in 7 several related disputes regarding the provision of water S service to a development known as "Lakeland Hills South" 9 within Auburn' s currently-designated Pierce County Potential 10 11 Annexation Area; and 12 WHEREAS, Auburn is currently seeking to annex a portion 13 of its Pierce County Potential Annexation Area; and 14 WHEREAS, Bonney Lake is currently opposing said 15 annexation proposal ; and 16 WHEREAS, Bonney Lake has initiated litigation against 17 Auburn in Pierce County Superior Court alleging tortious 18 interference with a contractual relationship; and 19 WHEREAS, Auburn has threatened legal and/or 20 administrative action with respect to various water rights 21 owned by Bonney Lake; and 22 WHEREAS, Bonney Lake has threatened legal and/or 23 administrative action with respect to various water rights 24 owned by Auburn; and 25 26 Resolution No 2925 February 27, 1998 Page 1 1 WHEREAS, the parties hereto desire to enter into a 2 settlement agreement, the express intent of which is to settle 3 all claims and disputes between Auburn and Bonney Lake 4 relating to the provision of water service to Auburn' s Pierce 5 County Potential Annexation Area and related water rights 6 issues; and 7 WHEREAS, Bonney Lake and Auburn are both desirous of 8 entering into cooperative arrangements to provide for the 9 efficient and cost-effective provision of water to their 10 customers 11 NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF AUBURN, 12 WASHINGTON, IN A REGULAR MEETING DULY ASSEMBLED, HEREWITH 13 RESOLVES AS FOLLOWS 14 Section 1 . The Mayor and City Clerk of the City of 15 Auburn are herewith authorized to execute the Settlement 16 Agreement between the City and the City of Bonney Lake A 17 copy of said Settlement Agreement is attached hereto, 18 designated as Exhibit "A" and incorporated by reference in 19 20 this Resolution 21 Section 2 The Mayor is hereby authorized to implement 22 such administrative procedures as may be necessary to carry 23 out the directives of this legislation 24 DATED and SIGNED this 2nd day of March, 1998 25 26 Resolution No 2925 February 27, 1998 Page 2 1 2 CITY OF AUBURN 3 Q.6-.414 4 Q.6-1 d G o l�jI. 5 CHARLES A BOOTH MAYOR 6 7 8 ATTEST 9 10 1.01 2aD!" ACA min / 11 Danielle E Daskam, City Clerk 12 13 14 APPROVED AS TO FORM 15 jil 16 17 Michae Reynolds, 18 City Attorney 19 20 21 22 23 24 25 26 Resolution No 2925 February 27, 1928 Page 3 SETTLEM ENT AGREEMENT CITY OF AUBURN AND CITY OF BONNEY LAKE THIS SETTLEMENT AGREEMENT ("Agreement") is entered into this OJT day of March, 1998 , by and between the CITY OF AUBURN, ("Auburn") , a municipal corporation, and the CITY OF BONNEY LAKE ("Bonney Lake") , a municipal corporation WHEREAS, Auburn and Bonney Lake are currently involved in several related disputes regarding the provision of water service to a development known as Lakeland Hills South ("LHS") within Auburn ' s currently-designated Pierce County Potential Annexation Area ("PC PAA") ; WHEREAS, Auburn is currently seeking to annex a portion of its PC PAA; and WHEREAS, Bonney Lake is currently opposing said annexation proposal ; and WHEREAS, Bonney Lake has initiated litigation against Auburn in Pierce County Superior Court alleging tortious interference with a contractual relationship; and WHEREAS, Auburn has threatened legal and/or administrative action with respect to various water rights owned by Bonney Lake; and Exhibit "A" Auburn Resolution No. 2925 Settlement Agreement City of Auburn & City of Bonney Lake March 3, 1998 Page 1 [c/agree/sa-citybonney7 WHEREAS, Bonney Lake has threatened legal and/or administrative action with respect to various water rights owned by Auburn; and WHEREAS, the parties hereto desire to enter into a settlement agreement, the express intent of which is to settle all claims and disputes between Auburn and Bonney Lake relating to the provision of water service to Auburn ' s PC PAA and related water rights issues; and WHEREAS, Bonney Lake and Auburn are both desirous of entering into cooperative arrangements to provide for the efficient and cost-effective provision of water to their customers NOW, THEREFORE, the parties agree as follows 1 Bonney Lake ' s claims against Auburn in Pierce County Cause No 97-2-05212-8 shall be dismissed with prejudice and without costs to either party 2 Bonney Lake shall withdraw its opposition to Auburn ' s proposed annexation of a portion of Auburn' s PC PAA in Pierce County Boundary Review Board Case No A-97-5 3 Auburn recognizes and agrees to Bonney Lake ' s exclusive right to serve with water all portions of Bonney Lake ' s water service area as designed by the 1995 Pierce County Coordinated Water System Plan for a period of seven years from the effective date of any Auburn annexation of Settlement Agreement Exhibit "A" City of Auburn a: City of Bonney Lake Auburn Resolution No. 2925 March 3, 1998 Page 2 Cc/ay ree/sa-citybonney] any area within such service area It is understood that Auburn anticipates multiple annexation proceedings regarding such areas Bonney Lake shall not oppose such annexation proposals, and pursuant to this paragraph, Bonney Lake shall have the exclusive right to serve each annexation area for seven years from the effective date of annexation 4 Upon the expiration of each seven-year period, or sooner if requested by Bonney Lake, provided for in paragraph 3 with respect to a particular portion of Bonney Lake ' s water service area, Auburn shall, at its option, have the exclusive right to serve such area with water, subject to the further requirements and conditions contained in paragraphs 5 and 6 of this Agreement 5 Upon the expiration of each seven-year period, or sooner if requested by Bonney Lake, provided for in paragraph 3 with respect to a particular portion of Bonney Lake ' s water service area, Bonney Lake shall, at Auburn ' s option, transfer to Auburn, by bill of sale, all of its ownership rights in water system facilities located within and used to serve such area, with the exception of facilities retained by Bonney Lake in accordance with paragraph 6 , below Auburn shall have no obligation to compensate Bonney Lake for such facilities as are transferred by Bonney Lake pursuant to this Section Settlement Agreement Exhibit °A" City of Auburn & City of Bonney Lake Auburn Resolution No. 2925 March 3, 1998 Page 3 tc/agree/sa-citybonney] Facilities to be transferred pursuant to this paragraph shall include water pipes, but shall not include source or storage facilities, including but not limited to Bonney Lake ' s Tacoma Point Wells and Tacoma Point Reservoir, nor those facilities reserved to Bonney Lake under paragraph 6 6 In contemplation of Auburn' s anticipated eventual takeover of water service from Bonney Lake within Auburn ' s annexation area, and for the purpose of providing Bonney Lake a looped system after Auburn' s takeover of water service within its annexed areas hereunder, Auburn shall, prior to the takeover of service within any portion of Bonney Lake ' s current water service area, construct or cause to be constructed and transfer or cause to be transferred to Bonney Lake, free of charge, future 12" water transmission line as shown on the attached Exhibit A to the southern boundary of Auburn' s PC PAA; provided, that in the event the particular alignment shown on Exhibit A shall prove impractical or unavailable, such lines shall be constructed in an alignment as mutually agreed to by the parties Auburn shall construct or cause these facilities to be constructed and transferred to Bonney Lake without regard to the progress or lack of progress of the development of LHS Such facilities shall be constructed in accordance with applicable Bonney Lake standards In addition, Auburn will Settlement Agreement Exhibit "A° City of Auburn &City of Bonney Lake Auburn Resolution No. 2925 March 3, 1998 Page 4 [c/agree/sa-citybonney] not take over water service from Bonney Lake, and Bonney Lake will retain ownership of its water system, within that area shown on Exhibit B, attached hereto This area will remain part of Bonney Lake ' s water service area and the facilities serving it will remain part of Bonney Lake ' s water system in perpetuity, notwithstanding possible annexation of the area by Auburn at any time in the future 7 Auburn shall guarantee Bonney Lake the right, in perpetuity, to transport water through Auburn ' s corporate boundaries within Pierce County, in order that Bonney Lake ' s ability to serve its water service area as recognized in this Agreement is not hindered or rendered impractical Such guarantee shall be effectuated by the execution of such easements, agreements, franchises, licenses or other documents as are appropriate, on terms that are in no respect less favorable or advantageous to Bonney Lake than those governing the operations of Auburn' s own water utility within its corporate limits Auburn shall not condemn or otherwise interfere with any Bonney Lake water facilities covered by this paragraph or paragraph /WC" \ 10 8 Neither Auburn nor any of its agents, employees, attorneys or contractors shall challenge, directly, indirectly or through third parties, through legal or administrative proceedings or any other means, Bonney Lake ' s Settlement Agreement Exhibit "A" City of Auburn a. City of Bonney Lake Auburn Resolution No. 2925 March 3, 1998 Page 5 tc/agree/sa-citybonneyl existing water rights, including but not limited to Bonney Lake ' s water rights associated with its Tacoma Point Wells The rights associated with its Tacoma Point Wells are, specifically, as follows (1) Lake Tapps Water Co Certificate No C 2809-A, with a date of priority 1/23/57, for 100gpm and 45af; (2) Tacoma Point Well No 2 Certificate No C G2- v-C 26851, with a date of priority of 2/5/86 , for `tom 000gpm and 800af; and (3) Tacoma Point Well No 4 Permit Number G2-27693 , with a date of priority of 1/30/90 , for 1200gpm and 1600af Because of production problems associated with Bonney Lake ' s current wells at Tacoma Point, Auburn ' s agreement not to protest or interfere extends to and includes Bonney Lake ' s drilling of another well or wells at Tacoma Point to achieve full production of its certificated and permitted water rights It also includes Bonney Lake ' s effort to proceed to certificate on its permit rights in Tacoma Point Well No 4 , referenced above Bonney Lake agrees not to seek to increase its water rights in the Tacoma Point well field for any appropriation beyond these permitted/certificated levels Bonney Lake shall not challenge, directly, Settlement Agreement Exhibit "A" City of Auburn & City of Bonney Lake Auburn Resolution No. 2925 March 3, 1998 Page 6 [c/agree/sa-citybonney] indirectly or through third parties, through legal or administrative proceedings or any other means, Auburn' s existing water rights or Auburn' s efforts to use those rights in order to serve its PC PAA with water, including any application to permit the withdrawal of water from wells located within LHS commonly known as Lakeland wells 5b and Sc, provided that such rights in Lakeland wells 5b and 5c are supplemental to Auburn ' s existing rights in wells 5 and 5a For purposes of this paragraph, the word "challenge" shall include both direct actions, such as the filing of any lawsuit, complaint or letter of protest, as well as indirect actions, such as assisting, facilitating, encouraging or approving any such actions on the part of a third party Each party will terminate and withdraw any pending challenges to the other ' s water rights that have been initiated Each party expressly reserves the right to challenge any application for new water right or change in water right that is made after the date of this Agreement ; provided, that any application for certification of a water right for which a party already holds a permit shall not be deemed an application for new water right or change in water right made after the date of this Agreement Exhibit "A" Settlement Agreement Auburn Resolution No. 2925 City of Auburn & City of Bonney Lake March 3, 1998 Page 7 [c/agree/sa-citybonney] 9 In order to facilitate the practical and efficient provision of water service to the portion of LHS outside Bonney Lake ' s current water service area, the parties will work together cooperatively to agree on an amendment of their respective water service area boundaries in this area 10 At such time as either party wishes to pursue the development of additional water source or supply or water storage facilities in the vicinity of LHS, the party will provide notice of same to the other party and the parties will thereupon meet to confer with respect to their respective needs and interests in regard to additional source, supply or storage Should it appear that the interests of the parties are sufficiently aligned, the parties will mutually agree to join in the development of said additional source, supply or storage facilities, on such terms as the parties may agree are equitable 11 In the future, at such time as Auburn' s water system has been more fully developed in the area of LHS and/or on its common boundary with Bonney Lake ' s water service area, the parties may agree that it is in their mutual best interests, and the best interests of their respective customers, to enter into an agreement providing for one or more interties between their water systems to be constructed Exhibit "A" Settlement Agreement Auburn Resolution No. 2925 City of Auburn& City of Bonney Lake March 3, 1998 Page 8 [c/agree/sa-citybonney] 12 Each party agrees to sign such documents and to take such actions as are necessary to implement the purpose and intent of this Agreement 13 Time is of the essence under this Agreement The terms of this Agreement shall be specifically enforceable by the parties hereto 14 Each of the individuals signing this Agreement on behalf of a party warrants that he/she has the authority to sign the Agreement and thereby to bind the party on whose behalf he/she signs 15 This Agreement shall be binding on the heirs, successors and assigns of the parties 16 This Agreement is designed strictly for the purpose of compromising disputed claims and avoiding the expense and risks of litigation The Agreement shall be construed according to the fair intent of the language as a whole, and not for or against either party 17 In the event of any disputes arising out of the implementation or enforcement of this Agreement , the parties agree to submit said disputes first to mediation and, if mediation is unsuccessful, then to binding arbitration in accordance with Ch 7 04 RCW; provided, however, that each party reserves the right to seek injunctive or other similar equitable relief from a court of competent jurisdiction in Settlement Agreement City of Auburn&City of Bonney Lake Exhibit °A° March 3, 1998 Resolution No. 2925 Page 9 [c/agree/sa-citybonney] order to preserve the status quo pending any mediation or arbitration or to otherwise protect a right or remedy that might otherwise be lost if such interim relief were not obtained 18 This Agreement shall not waive Auburn' s right to assess and collect any taxes, assessments or fees which it is otherwise authorized under law to assess or collect on any water service; provided, that Auburn ' s assessment and collection of any such taxes, assessments or fees with respect to any area served with water by Bonney Lake shall be upon the same terms as Auburn ' s assessment and collection of any such taxes, assessments or fees with respect to areas served with water by Auburn CITY OF AUBURN By CJAVIIMI NCCJ i CHARLES A BOOTH 1/� Its ` r M(or fire LAKE By Its 0e Exhibit "A" Settlement Agreement Resolution No 2925 City of Auburn & City of Bonney Lake March 3, 1998 Page 10 [c/agree/sa-citybonneyl I z' w e '_ o ; e' w T' l u , sr' b.9CT.L _ w _I - i I a R.5 M E a I _ 1 / I e L --- - -< 1 \ l' i t EXISTING 6—INCH AND 12—INCH DIAMETER! �— i I " �i jr. - m,v... 'I WATER MAINS, APf�URTENANCES, AND , o, CUSTOMERS ALONG 2ND STR _ TRANSFERRED T9LIAUHU&AIJ ' I M1l' EXISTING 6" WATER MAIN IN 182nd A I I , , . BETWEEN 2nd ST ND 4th ST TO, BE I t/' �: r, ,,„, TRANSFERRED TO AUBURN. BONNEY __1LL--J 6 \\i , LAKE TO RETAIN 2" DI WATER MAIN. //JJ7/ 1\,,,, _, TACOMA P INT TANK 4,,-A OM i POINT WELL ! I I . „,,, sis. ,1 _J il �I .,�G I 6( a I '- i• a Iz' oi■// _l , : sn a ,a, ' _ - 4.,' /' er? / ..! ■ e ; II i /J�'* ,c?. ./°‘ .' ' . 7/ \6. si c. c1 , it .3w sr �j ` �, .� r g a EXHIBIT A LEGEND CITY OF AUBURN AND CITY OF BONNEY LAKE t. SETTLEMENT AGREEMENT I e EXISTING BONNEY LAKE WATER MAIN PROPOSED 12' DIAMETER WATER MAIN TO BE PROVIDED BY AUBURN • • EXIST. BONNEY LAKE WATER MAIN IN FRANCHISE WITH AUBURN 1 SCALE: 1" = 1000' P „ EXISTING BONNEY LAKE WATER MAIN TO BE TRANSFERRED TO AUBURN �pd� 6°"\198-o2taJs-a King County _ _ _ _ _ __ _ Perce Cou �� I'r I , I 171 I I _ I ■ a'r I _L_ ■ t I ;-�I" I 170111 ,-F-- -_. ll I' I� II /D' ir fin„ ! ! -IL Il le[ I III URBAN GROWTH AREA/WATER \ —�� / 1iI EA I —\a ��. FOLLOW PR PERTY ONES, �' �' �, CENTERLIN 1 OF RIGHT-OF-WAY, / I I ' '��`�` i OR NORTHWEST BOUNDARY OF GAS \. I 4 \ 1 LINE LAS ' N .S SHUWN. ' _ Ci A:\ rdr. SEMENT h� NATURA_ GAS PIPELIN —� I i �1 ��- � ) 1 \----1-2\ \ -',icertX>IZ''1117',3(,/ ,_, ,T.. K/ R � '@ *tc ] I( 3 ` '�' I-:-..., ---1 '\ t I': I '' ' "/ 'E \ ¼ %-J1 MI IF 1 gly,):::::,/ .1 crc. „*„::,,, itii IS all it _ NA- '10",5::/,:;),/\;\:: -C-11:01:1,.\‘ k-L\;, ,c,i-A 1 1 s EXHIBIT B it CITY OF AUBURN AND CITY OF BONNEY E c4 AREA TO REMAIN IN BONNEY SETTLEMENT AGREEMENT LAKE SERVICE AREA IN PERPETUITY SCALE. 1'=1500' BONNEY LAKE WATER SERVICE AREA BOUNDARY / 2-22 S '9c«\I96-o:fBLAB-r CHARLES A.B0011-1,-MAYOR Ll•'� AUBURN CITY CLERK Danielle Daskam,City Clerk J 25 West Main, Auburn,WA 98001 Cathy Richardson, Deputy City Clerk City Clerk:(253)931-3039 Tame Bothell, Records/License Clerk iloWyt Business Registration:(253)931-3007 Fax (253)288-3132 nng STATE OF WASHINGTON) ) ss. COUNTY OF KING I, Danielle Daskam, the duly appointed, qualified City Clerk of the City of Auburn, a Municipal Corporation and Code City, situate in the County of King, State of Washington, do hereby certify that the foregoing is a full, true and correct copy of Resolution No 2925 of the resolutions of the City of Auburn, entitled 'RESOLUTION NO 2925 " I certify that said Resolution No 2925 was duly passed by the Council and approved by the Mayor of the said City of Auburn on the 2nd day of March, 1998 Witness my hand and the seal of the City of Auburn this 25th day of March, 1998 Danielle Daskam, City Clerk City offAuburn -`-