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HomeMy WebLinkAbout5442Contract Number: vendor: Subject: Department: File Class: Begin Date: End Date: Review Date: Vault Date: 5442 PORT ORCHARD, CITY OF ILA - Water Supply Water Resources LEG 12-1 11/a4/2o14 12/31/2019 6f30f2019 2020 Comments: � AGENDA BILL CITY OF BREMERTON C� p� ��,� '� - 5 _ CITY COUNCIL SUBJECT: Interlocal Agreement with the Study Session Date: November 12, 2014 with the City of Port Orchard for Water COUNCIL MEETING Date: November 19, 2014 Supply Department: Public Works & Utilities Presenter: K. Cahali, Water Resources Phone: 473-2315 SUMMARY: The City of Bremerton has had an agreement for many years to sell surplus water to the City of Port Orchard. This agreement has been updated and includes a four-year firm commitment of water befinreen 2015 and 2018 at a higher unit price than for surplus water. After January 1, 2019 the agreement continues on a surplus basis. ATTACHMENTS: Water Sales Agreement with the City of Port Orchard. FISCAL IMPACTS (Include Budgeted Amount): The estimated revenue to the City of Bremerton Water Utility is befinreen $50,000 -$247,000 per year. STUDY SESSION AGENDA: � No Presentation ❑ Full Presentation STUDY SESSION ACTION: � Consent Agenda ❑ General Business ❑ Public Hearing RECOMNlENDED MOTION: Move to approve the Water Sales Agreement with the City of Port Orchard and authorize the Mayor to finalize and execute the agreement with substantially the same terms and conditions as presented. . COUNCIL ACTION: [�Approve ❑ Deny ❑ Table ❑ Continue ❑ No Action Form Updated 01/25113 CITY OF PORT ORCHARD City Clerk's Office 2i6 Prospect Street, Port Orchard, WA 98366 Voice: (360) 8�6-440� • Fax: (g6o) 895 cityclerk@cityofportorchard.us www.cityofportorchard.us January �4, 2oi5 City Clerk's Office City of Bremerton 345 6th Street, Suite 600 Bremerton, WA 98337 Re: Contract No. 090-14 Water Supply Dear City Clerk's Office: Enclosed please find an original contract for your records. Should you have any questions, please contact the City Clerk's office at the number above. Sincerely, CITY OF PORT ORCHARD `C' � "L ► l� �< ine Floyd �� Office Assistant II Encl: Contract No. o9o-i4 (i) CITY OF PORT ORCHARD � City Clerk's Office � 2i6 Prospect Street, Port Orchard, WA 98366 �• q �:�. Voice: (360) 8�6-440� � Fax: (g6o) 895 cityclerk@cityofportorchard.us www.cityofportorchard.us December io, 2oi4 Ms. Shannon Corin, City Clerk City of Bremerton 345 6� Street, Suite 600 Bremerton, WA 98337 Re: Contract No. ogo-i4 Water Supply Dear Ms. Corin: 1 / � � - rl ��� � V Jv i I 1�� V Attached are two contracts approved by the City Council at their December 9, 2oi4, meeting. Please sign the enclosed two contracts, and return to my attention at the above address. Once we have all signatures finalized, I will mail you an original contract back for your records. Should you have any questions, please contact the City Clerk's office at the number above. Sincerely, CIT ��OF PORT ORCHARD .� . n n �,� " l.�-� � � Je ine F'loyd ce Assistant II Encl: Contract No. o9o-i4 (2) Contract No. 090-14 INTERLOCAL AGREEMENT FOR WATER SUPPLY THIS AGREEMENT is by and between the CITY OF BREMERTON, a municipal corporation, hereinafter referred to as "Bremerton," and the City of Port Orchard, hereinafter referred to as "Port Orchard," a municipal corporation organized under the laws of the State of Washington. BACKGROUND: 1. The parties desire to provide the highest reliability of service to their customers at reasonable costs. 2. The parties recognize that water resources are finite and vulnerable and that prudent use and management of these resources could be facilitated by cooperation among water utilities. 3. Bremerton and Port Orchard have water facilities which are interconnected at a 16-inch transmission main on Anderson Hill Road. Port Orchard has purchased water from Bremerton through this intertie for over 20 years. 4. RCW 39.34 and 35.92.200 empower Bremerton and Port Orchard to enter into a cooperative interlocal agreement for providing outside wholesale water service. 1 IT IS AGREED: 1. SCOPE: Subject to the terms and conditions set forth herein, Bremerton and Port Orchard agree to the continuation and maintenance of a water system intertie at Anderson Hill Road and SR 16 for the purpose of supplying domestic water between the two systems during emergency conditions. Bremerton agrees to sell and deliver to Port Orchard and Port Orchard agrees to purchase from Bremerton wholesale water for the needs of inhabitants of Port Orchard and adjacent areas for domestic, irrigation, and fire protection purposes, in the amounts contemplated by Section 4 of this Agreement 2. TERM: The term of this Agreement shall run from the date of this agreement until December 31, 2019. This Agreement shall be automatically renewed for successive one-year terms with the same terms and conditions as those established for the year 2019 unless either party furnishes written notice to the other party of non-renewal before December 1. 3. QUALITY. Bremerton agrees to deliver water from its water system at the purity and quality in effect for residential customers of Bremerton. 4. AMOUNT AND COMPENSATION: A. From 2014 through 2018, Bremerton agrees to make available a minimum of 58 million gallons per year to the City of Port Orchard's 2 main system. The cost of this firm available water will be 110% of the Bremerton Outside City Limits Residential Commodity Water Charge as approved in latest rate ordinance. Port Orchard agrees to pay for a minimum of $50,000 of water each year 2015 - 2018. If the cost of the water used is less than $50,000 the difference will be made in a payment to Bremerton. B. Surplus water to be supplied to Port Orchard after January 1, 2019 under this Agreement shall be such as Bremerton may have avaiIable over and above the requirements of the present users of the Bremerton system and the requirements of Puget Sound Naval Shipyard. Beginning January 1, 2019 the unit price of surplus water sold shall be 95% of the Bremerton Outside City Limits Residential Commodity Water Charge as approved in latest rate ordinance. There is no minimum amount that Port Orchard is required to pay to Bremerton after January 1, 2019. 5. INTERTIE FACILITIES: All water supply delivered pursuant to this Agreement shall be measured by the delivery municipality using Sensus Omni T2 water meter and a 520M Smart Point MXU, to be furnished, installed, maintained, and calibrated by Port Orchard at the expense of Port Orchard. Port Orchard shall retain ownership of said meters. Calibration shall be performed by Port Orchard at least once every two (2) years and a copy of calibration results submitted to Bremerton. 3 Bremerton shall have access to and be permitted to install and maintain its own monitoring and recording system at its expense. In the event any intertie meter fails to register, or it registers incorrectly, the Bremerton Water Utility Billing Department shall estimate the amount of water delivered for the period during which such meter failed to register by taking an average of the tota.l deliveries of water through such meter for the preceding two months in which water was delivered. Each utility shall install, operate, and maintain isolation valves and related facilities on their respective water mains at the point where those mains are interconnected. Each utility shall cooperate with the other utility in coordinating the operation of the isolation valves and related facilities for the purposes of this Agreement. 6. PRIORITY OF BREMERTON WATER CUSTOMERS: Bremerton agrees that the firm water commitment of 58 million gallons per year described in Section 4 will be in place through 2018. It is understood between parties hereof that Bremerton is, by prior agreement, selling part of its water supply to Puget Sound Naval Shipyazd and that it will give precedence to any and all needs and requirements of Bremerton's water customers and the Puget Sound Naval Shipyard for surplus water. 7. NOTICES: Port Orchard shall notify Bremerton water operations by phone to coordinate their intent to use water. All notices � and other written communications required by this Agreement shall be in writing and, except as expressly provided elsewhere in this Agreement, shall be deemed to have been given at the time of delivery if personally delivered or at the time of mailing if mailed by first class, postage pre- paid and addressed to the part at its address as stated below or at such address as any party may designate at any time in writing. Director of Public Director of Public Works/City Works & Utilities Engineer City of Bremerton City of Port Orchard 100 Oyster Bay Ave N 216 Prospect Street Bremerton, WA 98312 Port Orchazd, WA 98366 8. SEVERABILITY: If any provision of this Agreement or its application is held invalid, the remainder of this Agreement or the application of the remainder of this Agreement shall not be affected. 9. MODIFICATION: This Ageement represents the entire agreement between the parties. No change, termination or attempted waiver of any of the provisions of this Agreement shall be binding on either of the parties unless executed in writing by authorized representatives of each of the parties. 10. BENEFITS: This agreement is entered into for the benefit of the parties to this Agreement only and shall confer no benefits, direct or implied, on any third persons. �� The rights granted by this Agreement may not be assigned without the written consent of the Mayor of the City of Bremerton and the Mayor of the City of Port Orchard. 11. DISPUTE RESOLUTION: Any claim by either party against the other related to this Agreement shall be filed in Kitsap County Superior Court. Each party is responsible for its own attorney's fees and litigation costs. 12. ENTIRE AGREEMENT. The written provisions of this Agreement shall supersede all prior verbal statements of any officer or other representative of the City, and such statements shall not be effective or be construed as entering into or forming a part of, or altering in any manner whatsoever, this Agreement or any attached exhibits. [� IN WITNESS WHEREOF the parties hereto execute this Agreement this �+ `3ay of D UP�ffl P�i- , 2014. CITY OF BREMERTON CITY OF PORT ORCHARD : �� ��� , � _ , � � ATTEST: Shannon Corin, City Clerk APPROVED AS TO FORM � � �- Roger Lubovich, City Attorney BY:g� 0� � Tim Matthes, Mayor ATTEST: Brandy earson, City Clerk APPROVED AS TO FORM: `` ����uuu�ri iii . ,,���QORT,�RCy��.,, ` �p� O O Rq T�'9'��s .v O. ' 'ty Attorney "�, •� � • _ , � . - _ •-S o• = _ : �: z_ - �N �.�0� t�` . :CI� . A ,�,. � ' ����` ,, r .����. �. ,,,��F �F'W1P,``���,.