HomeMy WebLinkAbout4822RESOLUTION NO. 4 8 2 2
A RESOLUTION OF THE CITY COUNCIL OF THE
CITY OF AUBURN, WASHINGTON, AUTHORIZING
THE MAYOR OR DESIGNEE TO EXECUTE A
WHOLESALE WATER AGREEMENT BENVEEN
THE CITY OF AUBURN AND THE CITY OF
TACOMA
WHEREAS, The City of Auburn is obligated to provide an adequate
water supply to meet customer demand. The City has adopted a combined
water supply strategy that includes improving City sources to fully utilize its
water rights and purchasing water from adjacent purveyors. Design and
construction of improvements to City sources are underway; and
WHEREAS, the City of Auburn has requested and the City of Tacoma
has agreed to provide a wholesale water supply at a cost that is acceptable to
the City of Auburn. Entering into this wholesale water agreement with Tacoma
allows the City to purchase water in keeping with the City's supply strategy.
NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF AUBURN,
KING COUNTY, WASHINGTON, HEREBY RESOLVES as follows:
Section 1. The Mayor or designee is hereby authorized to execute a
Wholesale Water Agreement befinreen the City of Auburn and the City of
Tacoma, which agreement shall be in substantial conformity with agreement
attached hereto as Exhibit "A" and incorporated herein by this reference.
Resolution No. 4822
May 22, 2012
Page 1 of 2
Section 2. The Mayor or designee 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 `� 4' day of _,�v�.c.�' , 2012.
CITY F AUBU
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PETER B. LEWIS, MAYOR
ATTEST:
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Danielle E. Daskam, City Clerk
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Resolution No. 4822
May 22, 2012
Page 2 of 2
WHOLESALE WATER AGREEMENT
BETWEEN TACOMA WATER
AND
CITY OF AUBURN
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This wholesale water agreement ("Agreement") is made by and between the City
of Tacoma, Department of Public Utilities, Water Division d/b/a Tacoma Water, a
municipal corporation (hereafter "Tacoma"), and the City of Auburn, a municipal
corporation (hereafter "Auburn") pursuant to Tacoma Municipal Code 12.10.400 E.
Tacoma and Auburn collectively shall be referred to as the "Parties" or either Tacoma or
Auburn may be referred to as"Party" when appropriate.
A. RECITALS:
WHEREAS, Tacoma has evaluated its wholesale projections in its demand
forecast and has determined that adequate water resources are available to serve those
projected demands; and
WHEREAS, the Parties are responsible for operating and maintaining their
respective water systems in accordance with federal, state and local laws and regulations;
and
WHEREAS, the Parties further recognize that water resources are finite and
valuable, and the prudent use and management of these resources requires cooperation
among water utilities; and
WHEREAS, Auburn has requested and Tacoma has agreed to provide a wholesale
water supply to Auburn, and Tacoma is able and willing to provide the requested quantity
of water on the terms and conditions as herein provided, now therefore;
For and in consideration of the mutual covenants, conditions and payments to be
made as set forth herein, the Parties hereto agree as follows:
B. DEFINITIONS:
The meaning of certain words or terms, when used in this Agreement, is as
follows:
"Wholesale Service Connection" means a physical connection between water
mains of the two Parties to this Agreement, at a specifically identified point or
points, where water may be transferred from one Party's system to the
transmission or distribution facilities of the other Party.
Page 1 of 8
2. "Isolation Valve" means a positive shut off valve that shall be installed at the
location in each water system that is used to accept or deliver water through the
Wholesale Service Connection. Each Party has sole responsibility for operating
their Isolation Valve.
3. "Wholesale Service Connection Capacity" means the maximum flow capacity for
water to be delivered through a Wholesale Service Connection as agreed upon by
the Parties to this Agreement. Wholesale service connection facilities shall be
designed so as to be capable of conveying no less than the agreed upon Wholesale
Service Connection Capacity.
4. "Tacoma Municipal Code (TMC") means the City of Tacoma's municipal code.
"Emergency" means an unforeseen event that causes damage or disrupts normal
operations and requires immediate action to protect public health and safety
including exclusively when water system repairs are necessary due to a water
system failure or when there is a water supply shortfall.
6. "Wholesale Water Service" means water provided by Tacoma pursuant to TMC
12.10.400 E to community water systems that are in compliance with Washington
State Department of Health regulations and who adopt a water conservation
program substantially equivalent to Tacoma's program and agree to abide by
Tacoma's Water Shortage Response Plan as a condition of service.
C. CONDITIONS:
The responsibilities of the parties to this contract are set forth below:
1. General. Tacoma agrees to fixrnish the Wholesale Service Connection Capacity
to Auburn of a quality that will satisfy all requirements of the Federal Safe
Drinking Water Act as amended, and shall be in accordance with the terms and
conditions of this Agreement.
2. Wholesale Water Rates. Tacoma will supply Auburn with water at the
Wholesale Water Service rate as identified in TMC Section 12.10.400, and the
parties will be bound by the City of Tacoma Water Regulations-Rates as found
in Chapter 12.10 TMC. Invoices will include a monthly ready to serve charge
based on meter size and consumption charges based on water used. These water
rates (and regulations) are periodically adjusted and shall be applicable as set
forth in the rate schedule as adopted by the Public Utility Board and Tacoma
City Council. The water supplied to Auburn must be used on a year-around basis
where the average summer day use divided by the average winter day use results
in a summer/winter ratio of 2.5 or less, as set forth in TMC 12.10.400.
Page 2 of 8
3. Billin�• Tacoma shall utilize regular meter reads secured from SCADA signals
that Auburn shall deliver to the Tacoma Water Control Center to calculate a
statement of charges for water service. In the event SCADA signals are
unavailable, monthly manual reads will be used in lieu until such time that
SCADA signals are restored. Tacoma shall strive to provide the statement of
charges on a monthly basis, and payment shall be due to Tacoma pursuant to
TMC 12.10.060. In accordance with TMC 12.01.030, no late charges shall be
applied if payment of the balance due is received within 24 days of the date on
the initial billing.
4. Svstem Development Char�e. Upon Auburn's payment of the full charge or the
initial time installment payment to Tacoma for Tacoma's System Development
Charge (SDC) of $5,196,600.00, Tacoma will commit and agrees to supply to
Auburn Wholesale Water Service. Auburn agrees to pay the full balance of the
SDC Chazge within thirty (30) days of execution of this agreement. At its option,
Auburn may pay at least 20 percent (20%) of the SDC amount within thirty (30)
days of execution of this agreement, and then shall pay the SDC balance with
interest over up to ten years as authorized by the Tacoma Municipal Code, as
further set forth below.
If paying in installments, Auburn agrees to pay the SDC balance in ten annual
installments commencing on the first annual anniversary date of this agreement.
In addition to the annual SDC installment, Auburn shall also pay interest,
calculated on a monthly basis (the first day of every month) on the outstanding
principal SDC balance amount at "prime" minus 2% interest rate, as reported by
the Wall Street Journal ten days before the date that the monthly interest
calculation is made. The interest amount paid by Auburn shall be paid to Tacoma
along with the annual installment payment. Provided however, Auburn may
prepay (without penalty) a portion or all of the outstanding SDC amount, in which
case the accrued interest to date of such prepayment shall also be paid to Tacoma.
Water Ri�hts• Tacoma certifies that it holds sufficient water rights to provide the
quantities of Wholesale Water Service requirement by the Agreement to Auburn
for the duration of the term of this Agreement as described in section 16.
6. 4uantitv of Wholesale Water Service. Tacoma will make available, and upon
Auburn's request, supply Wholesale Water Service to Auburn in the quantity of
up to 1,000,000 gallons per day (gpd) of water for average day use, up to
1,800,000 gpd for peak day use and up to 1,620,000 gpd for four-day peak use.
Tacoma further agrees to supply at Auburn's Option to exercise no later than
December 31, 2015, an additional quantity of 1,000,000 gallons per day (gpd) of
water for average day use, 1,800,000 gpd for peak day use and 1,620,000 gpd for
four-day peak use, under the same terms and SDC rates of this agreement.
Page 3 of 8
7. Reliabilitv . The Parties agree that Tacoma will supply Wholesale Water Service
pursuant to this Agreement with the same degree of reliability and surety of
supply as water provided by Tacoma to its existing customers and as allowed
under TMC 12.10.150. In non-emergency situations Tacoma will provide 30 days
notice to Auburn before temporarily requiring the changing, reducing, limiting or
discontinuance of the use of water.
8. Additional Water. Auburn may purchase water for Emergency purposes in excess
of the amount set forth in paragraph 6 above on a short term basis from Tacoma if
in Tacoma's sole discretion sufficient surplus water is available. Auburn shall be
entitled to purchase such water in accordance with the terms of this Agreement at
the then current wholesale rate, and the applicable sections of Chapter 12, Tacoma
Municipal Code.
9. Connections. The Wholesale Service Connections described in Exhibit "A" shall
be governed by the terms of this Agreement. No future Wholesale Service
Connections shall be permissible without a subsequent and separate written
agreement between the Parties, which agreement may supplement this
Agreement. Neither Party shall be obligated to agree to or execute any
agreement or permit with the other Party to construct additional water Wholesale
Service Connection(s).
10. Capital and Maintenance Costs. Auburn agrees that Tacoma Water owns the
Isolation Valve directly off of the Tacoma Water system, piping from the
Tacoma Water Isolation Valve to the meter, the meter vault and the meter, meter
isolation valve, and certain telemetry equipment. Maintenance and operation
costs for this equipment are Tacoma Water's responsibility. Any capital costs
related to this equipment, including upgrades or replacement and renewal are
Tacoma's responsibility. Tacoma agrees that Auburn owns the piping and other
appurtenances, including certain telemetry components, downstream of the
Tacoma Water Meter Vault. Maintenance and operation costs and any capital
costs related to upgrades or replacements of this equipment are Auburn's
responsibility. Exhibit "B" identifies the location of the two interties, and
illustrates the responsible Party for physical infrastructure components (except
telemetry components).
11. Transferabilitv. The rights and obligations of this Agreement are transferable to
heirs, successors and assignees of the Parties.
12. Resale. Wholesale water provided under this Agreement by Tacoma to Auburn
may be resold by Auburn to another water purveyor.
13. Conservation. As a requirement of providing Wholesale Water Service to
Auburn under this agreement and pursuant to Chapter 12.10 TMC Auburn shall
implement a water conservation program substantially equivalent to Tacoma's
program and shall abide by Tacoma's Water Shortage Response Plan ("Plan") as
Page 4 of 8
provided under TMC 12.10.150. If requested Tacoma will invite Auburn to
participate in the planning and implementation process for conservation
programs as they are developed and will share available conservation resources
where beneficial to both Parties. The Parties agree to meet every two years to
review and evaluate operational experience with regards to water use and
conservation.
14. Mutual Aid. Tacoma and Auburn agree to provide water service related mutual
aid, to the extent possible, during times of extraordinary need and emergency
operations experienced by either Party.
15. Indemnification. Neither Party shall be monetarily liable to the other Party or its
respective customers for failure to supply and deliver water to the other at any
time or for any reason. The Parties shall indemnify and hold each other harmless
from any and all third party claims, lawsuits, or proceedings in arbitration
resulting from any failure of either Party to supply and deliver water in
accordance with the terms and conditions of this Agreement. However, each
Party shall have the right to have this Agreement specifically enforced in equity.
16. Term. This Agreement shall remain in effect so long as Tacoma remains in the
business of providing water, or its successors in interest to its water system
remain in the business of providing water, and so long as Auburn meets the
terms and conditions of this Agreement.
17. Disnute Resolution. In the event of a disagreement over any aspect of this
Agreement, except as herein further provided, it is agreed that any dispute shall
be submitted to binding arbitration pursuant to Chapter 7.04 RCW. The Parties
shall agree upon who will azbitrate the dispute, and upon failure to reach
agreement within a reasonable period of time, the presiding judge of the Pierce
County Superior Court may be asked to appoint an arbitrator from one of the
recognized dispute resolution services. The Party that substantially prevails in
the arbitration proceeding sha11 be awarded its reasonable attorney fees and costs.
If neither Party substantially prevails in the arbitration proceeding, the Parties
shall each bear their respective costs and divide the mutual costs associated with
the arbitration equally.
18. Notice. All notices, requests, demands and other communications hereunder
shall be in writing and shall be deemed given if personally delivered or mailed,
certified mail, return receipt requested, or sent by overnight carrier to the
following addresses:
If to Tacoma:
Water Superintendent
PO Box 11007
Tacoma, WA 98411
Phone: (253) 502-8245
Page 5 of 8
If to Auburn:
Public Works Director
1 East Main Street
Auburn, WA 98001
Phone: (253) 804-5062
Fa�c: (253) 502-8694
Fax: (253) 931-3053
Operational communication protocols shall be fully described in the jointly
developed Operational Protocols required under item 22 below.
19. Invaliditv. If any term of this Agreement is found to be void or invalid, such
invalidity shall not affect the remaining terms of this Agreement, which shall
continue in full force and effect. The parties shall agree that if any provisions are
voided by a court or otherwise deemed not enforceable, the parties shall
negotiate in good faith to develop replacement provisions that are as close as
possible to the intent of the parties expressed in the invalid provisions.
20. Counterparts. This Agreement may be executed in any number of counterpart
copies, each of which shall be deemed an original, but all of which together shall
constitute a single instrument.
21. Authoritv to Bind. Each of the Parties to this Agreement certifies that the person
signing this Agreement has authority to bind the respective governing bodies to
all of the terms and conditions of the Agreement herein.
22. Onerational Coordination. Water supply directly off the Tacoma Water
transmission system affects flow, pressure, and treatment, and diurnal
consistency of demand is critical. The two Parties agree to jointly develop and
maintain Operating Protocols for items including the scheduling of water
demand to assure consistent flow control and treatment, routine operational
communication, emergency shutdown, emergency contacts, and other items the
Parties determine appropriate.
23. T'his agreement replaces the EMERGENCY AGREEMENT BETWEEN CITY
OF TACOMA AND CITY OF AUBURN dated October 18, 2010.
Dated this �� � day of � u\�- , 2012.
City of Tacoma:
Department of Public Utilities
�1V exDivision /�
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Li da A. McCrea
Water Superintendent
Approved as to form & legality:
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