HomeMy WebLinkAbout9037 Docusign Envelope ID:80D2DD70-6DB5-4C47-83B1-B12023219815
FIRST EXTENSION OF INTERLOCAL AGREEMENT FOR PURCHASE
AND SALE OF ASSETS IN THE 580 ZONE BETWEEN THE CITIES OF
PORT ORCHARD AND BREMERTON
THIS FIRST EXTENSION to the Interlocal Agreement for Purchase and Sale of Assets in the 580
Zone("Amendment")is made effective as of the 12thday of November ,2024, by and between the City
of Port Orchard ("Port Orchard"), a municipal corporation, organized under the laws of the State of
Washington, and the City of Bremerton ("Bremerton"), a municipal corporation organized under the laws
of the State of Washington.
WHEREAS, Bremerton and Port Orchard entered into an Interlocal Agreement for Purchase and
Sale of Assets in the 580 Zone which was effective on November 21, 2019("Agreement"); and
WHEREAS,the term of the Agreement expires on December 31, 2024; and
WHEREAS, the parties anticipated that the Agreement may need to be extended and provided
authorization for the mayors of each party to extend the Agreement for successive one-year terms under the
same terms and conditions; and
WHEREAS, the parties wish to so extend the Agreement for an additional year; NOW,
THEREFORE,
In consideration of the mutual benefits accruing, it is agreed by and between the parties thereto as
follows:
l. One-Year Extension. Section 10 of the Interlocal Agreement for Purchase and Sale of Assets in the
580 Zone which has an effective date of November 21, 2019 between the parties provides for the
extension of the Agreement for a one year term with the same terms and conditions if signed by the
Mayor of each of the parties. The parties agree that the Agreement shall be extended for one year
and therefore,the Term set in Section 10 of the Agreement will run until December 31,2025.
2. In all other respects,the Agreement between the parties shall remain in full force and effect,amended
as set forth herein, but only as set forth herein.
IN WITNESS WHEREOF,the parties have executed this Amendment on the day and year set
forth above.
CITY OF PORT ORCHARD, CITY OF BREMERTON,
WASHINGTON WASHINGTON
�}Siig ned by:
neeier'A
Robert Putaansuu, Mayor Greg w ,'iV�ayor
First Extension of ILA Between Port Orchard and Bremerton
Page 1 of 2
10939465.1-366922-0027
Docusign Envelope ID:80D2DD70-6DB5-4C47-83B1-B12023219815
ATTEST/AUTHENTICATED: ATTEST/AUTHENTICATED:
Signed by:
�-Signed by:
brawa,l (Paw, a �aav
tr
`-46A5A54RRD0Q418�. ���
Brandy Rinearson, MMC, A geril]Pover F
Port Orchard City Clerk Bremerton City Clerk
APPROVED AS TO FORM: APPROVED AS TO FORM:
Signed by: (-Signed by:
(kvLok and w" 6iut, riv,tAi1,
\ �n3�n�F25520457... 961-559.0.058254-M...
Charlotte A.Archer Kylie Finnell
Port Orchard Attorney Bremerton Attorney
First Extension of ILA Between Port Orchard and Bremerton
Page 2 of 2
10939465.1-366922-0027
AGENDA BILL
CITY OF BREMERTON 5F
CITY COUNCIL
SUBJECT: Study Session Date: November 13, 2019
Interlocal Agreement with the City of Port COUNCIL MEETING Date: November 20, 2019
Orchard for the Purchase and Sale of Assets Department: PW&U - Engineering
in the 580 Zone Presenter: Ned Lever
Phone: (360) 473-2398
SUMMARY: The City of Bremerton currently shares the use of an existing transmission main and an
existing 450,000 gallon steel potable water storage reservoir with the City of Port Orchard. The
reservoir and a portion of the transmission main are both owned by the City of Port Orchard. In order
to completely separate the two water systems the City of Bremerton must either construct a parallel
reservoir and transmission main or purchase the existing facilities. Port Orchard has proposed the
surplus of the reservoir, transmission main, 4.63 acre property, and some distribution piping to the
City of Bremerton in return for an equivalent value of water delivered to Port Orchard. The value of
the improvements has been determined to be $804,000. This value is approximately equal to the
delivery of 176 million gallons of water over a period of 5 years. The peak instantaneous flow rate
commitment has been identified as 750 gpm.
ATTACHMENTS: 1) Council Summary; and 2) Interlocal Agreement for Purchase and Sale of
Assets in the 580 Zone
FISCAL IMPACTS (Include Budgeted Amount): The fiscal impact is defined as the $804,000
value of future water sales to the City of Port Orchard. There is no current monetary fiscal impact.
STUDY SESSION AGENDA: lI Limited Presentation 11 Full Presentation
STUDY SESSION ACTION: I=I Consent Agenda ❑ General Business ❑ Public Hearing
RECOMMENDED MOTION:
Move to approve the Interlocal Agreement with the City of Port Orchard for the Purchase and Sale of
Assets in the 580 Zone; 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 01/02/2018
INTERLOCAL AGREEMENT FOR PURCHASE AND SALE
OF ASSETS IN THE 580 ZONE
This Interlocal Agreement ("Agreement") is entered into by and between the City of
Bremerton, a municipal corporation of the first class ("Bremerton"), and the City of Port Orchard,
a municipal corporation of the first class ("Port Orchard").
RECITALS
WHEREAS, Bremerton and Port Orchard each own and operate separate 580 Zone water
systems that are contiguous to each other; and
WHEREAS, Bremerton and Port Orchard share the use of an existing 16" water
transmission main (Transmission Main) and an existing 0.45 MG storage reservoir ("Reservoir")
located within the 580 Zone under the terms of an existing interlocal agreement; and
WHEREAS, Port Orchard currently owns, operates and maintains the 580 Zone
Transmission Main, Reservoir, and underlying 4.63-acre property listed under tax parcel number
082301-2-001-2005 ("Property") as shown on Exhibit A; and
WHEREAS, Port Orchard currently owns, operates and maintains an 8"water distribution
main and fire hydrant ("Distribution Main") serving McCormick Village Park within Bremerton
Water Service Area,which must be conveyed to Bremerton in accordance with the Kitsap County
Coordinated Water System Plan; and
WHEREAS, Port Orchard is constructing additional storage within its 580 Zone, which
will allow for the surplus sale of the above-mentioned Reservoir, Transmission Main, Property,
arid Distribution Main to Bremerton; and
WHEREAS, Bremerton desires to purchase, own, operate, and maintain the City of Port
Orchard's existing 580 Zone Reservoir, Transmission Main, Distribution Main, and Property; and
WHEREAS,Bremerton currently has an easement,recorded under Auditor's File Number
201006020014, which allows for the future construction of water storage reservoirs on property
which is owned by Port Orchard and listed under tax parcel number 072301-1-006-2003, adjacent
to the Property, as shown on Exhibit A; and
WHEREAS, Bremerton desires to purchase Port Orchard's 580 Zone Transmission Main,
Reservoir, Property, and Distribution Main through the sale and delivery of water to Port Orchard
in the 580 Zone on an interim basis, until system improvements are completed that will allow for
the separation of the two systems; and
WHEREAS, Bremerton currently sells water to Port Orchard in the 580 Zone, and there is
an existing agreement in place that establishes the water volumes and flowrates which apply to the
sale of water to Port Orchard attached as Exhibit B; and
Agreement of Purchase and Sale of Assets in the 580 Zone Page 1 of 8
WHEREAS, Port Orchard owns Well 11 in the 580 Zone for which Port Orchard has
secured Permits to Appropriate Public Waters equal to 750 gallons per minute and is pursuing the
development of Well 11 to replace the current shallow Wells 1, 2, and 3; and
WHEREAS, Port Orchard has required McCormick Communities to drill and pump test
the future Well 12 in the 580 Zone; and
WHEREAS,Bremerton and Port Orchard wish to define the terms and conditions by which
Port Orchard will purchase water and Bremerton, in turn, will assume ownership, operations, and
maintenance of the City of Port Orchard's 580 Zone Reservoir, Transmission Main, Distribution
Main, and Property; and
WHEREAS,the South Kitsap School District owns real property for the development of a
future high school (School Site) which will require substantial fire flow. This property is listed
under tax parcel number 0523010-3-037-2004; and
WHEREAS, it is Bremerton and Port Orchard's desire to reduce above average water use
in Port Orchard's 580 Zone;
NOW, THEREFORE, based upon the above recitals, and in consideration of the mutual
covenants contained herein, the parties hereby warrant, covenant, and agree as follows:
AGREEMENT
1. Existing and Future Agreements.
1.1 Existing 580 Zone Agreement. The existing Interlocal Agreement for Cooperative
Water System Development in the Port Orchard 580 Zone/Bremerton 580 Zone
date December 26, 2001 is hereby terminated. (See Exhibit B)
1.2 Future Emergency Intertie. Port Orchard and Bremerton agree to consider an
emergency intertie agreement at the conclusion of this Agreement.
2. Assets Purchased and Liabilities Assumed.
2.1 Assets Purchased. On the terms and conditions hereinafter set forth, Bremerton
agrees to purchase from Port Orchard,and Port Orchard agrees to sell to Bremerton,
all of the assets of Port Orchard relating to the existing 0.45 MG Reservoir;existing
16-inch Transmission Main; existing 8" Distribution Main, Fire Hydrant and
Meters in McCormick Village Park; and Tax Parcel 082301-2-001-2005 (the
"Purchased Assets"), as listed in Exhibit C,upon completion and agreement of the
below:
a. A new Port Orchard 580 Zone water storage reservoir will be completed on tax
parcel 072301-1-006-2003 by April 30, 2021.
Agreement of Purchase and Sale of Assets in the 580 Zone Page 2 of 8
b. Port Orchard will continue the active operation and maintenance of the existing
Reservoir; Transmission Main; Distribution Main; and Property including all
scheduled maintenance and inspections until the transfer of ownership to
Bremerton is complete.
c. Bremerton will vacate the Water Reservoir Easement on tax parcel 072301-1-
006-2003 and recorded under auditors file number 201006020014, attached in
Exhibit A.
d. Port Orchard will modify the existing drain piping for the Reservoir to allow
shared use of the drainage pipe and pond, if necessary, as shown in Exhibit A.
e. Port Orchard will grant to Bremerton an easement for the 8"Distribution Main,
Fire Hydrant and three Water Meters serving McCormick Village Park.
2.2 These improvements allow the complete separation of the two water systems with
the exception of any service connection or emergency intertie allowed by the two
parties. The sale of the Purchased Assets shall be by a Deed of Conveyance in the
form of Exhibit D attached hereto and no warranty as to the condition of the
Purchased Assets shall be provided. The real estate associated with the purchased
assets shall be conveyed by Quit Claim Deed in the form of Exhibit E attached
hereto.
2.3 Assignment of Contract Rights. Contract rights and licenses relating to the
Purchased Assets shall be assigned to Bremerton pursuant to such instruments of
assignment as are mutually acceptable to and agreed by Bremerton and Port
Orchard and their respective legal counsel. Port Orchard shall obtain any required
consents or waivers with respect to such assignments at or prior to Closing.
3. Purchase Price.
The total purchase price for Purchased Assets is established as $804,000 and will be paid
on the basis of the value of water sold to Port Orchard over an extended period of time as
outlined below:
3.1 Purchased Assets Value. The value of the Reservoir and Property tax parcel
#082301-2-001-2005 (including appurtenances) is established at $434,000.
3.2 Purchased Asset Value. The total length of the transmission main is 6,900 feet.
The value of the asset is established at$345,000.
3.3 Purchased Asset Value. The value of the Distribution Main,Fire Hydrant and three
Water Meters serving McCormick Village Park is established at$25,000. The total
length of the distribution main is approximately 330 feet. An easement shall be
provided to Bremerton.
Agreement of Purchase and Sale of Assets in the 580 Zone Page 3 of 8
3.4 Water Value. The value of the water supplied to the Port Orchard 580 Zone by
Bremerton shall be calculated at 95% of Bremerton's most current published
outside retail water service rates with no monthly service charge.
4. Rate of Water Supplied to Port Orchard by Bremerton.
Bremerton agrees that water supplied to Port Orchard between the effective date of this
Agreement and the completion of the new Port Orchard 580 Zone Reservoir, Well 11, and
Well 12 improvements(the date on which the last component is completed or the expiration
of the Term of this Agreement pursuant to Section 10 below, whichever occurs first) shall
be 750 Gallons Per Minute (GPM) as the maximum rate of supply required to supplement
and deliver Port Orchard's Maximum Day Demand. This commitment shall not survive
the Term of this Agreement.
Port Orchard and Bremerton agree to cooperatively provide adequate fire flow to the
School Site. Bremerton agrees to collaborate with Port Orchard when determining the fire
flow capacity available from both utilities. Any infrastructure required to provide adequate
fire protection will be determined by both Bremerton and Port Orchard.
5. Water Quality.
Bremerton agrees to deliver water to Port Orchard at the purity and quality in effect for
residential customers of Bremerton. Port Orchard agrees to deliver water to Bremerton at
the purity and quality in effect to residential customers of Port Orchard, except that water
delivered by Port Orchard to Bremerton shall not be fluoridated. In the event of water
quality problems in either system,Bremerton and Port Orchard agree to work cooperatively
and diligently to determine the source/location of the problem and correct it. Regardless
of the source/location of water quality problems, each party agrees to assume the cost of
correcting water quality problems within its own system.
6. Port Orchard Commitment for Source and Storage.
Port Orchard agrees to ensure that the new Port Orchard 580 Zone Reservoir is completed
and operational by April 30, 2021. Port Orchard agrees to prepare complete bid ready
PS&E for the Well 11 Project in 2020 and pursue construction in 2021. Port Orchard has
secured a commitment from McCormick Communities for the construction of Well 12.
6.1 McCormick Village Splash Pad. Port Orchard agrees to retrofit the Splash Pad at
McCormick Village Park with a recirculating water supply system by April 30,
2021.
6.2 McCormick Village Park. Bremerton agrees not to charge Port Orchard for water
used at McCormick Village Park until May 1, 2021 at which time Bremerton will
assume ownership of any Water Meters serving said Park.
6.3 Port Orchard Water Conservation Program. Port Orchard will establish and
Agreement of Purchase and Sale of Assets in the 580 Zone Page 4 of 8
implement a Water Conservation Program designed for the users of the McCormick
Woods Water System. The goal of this program is to reduce domestic water
consumption in the Port Orchard 580 Zone. Conservation efforts by Port Orchard
will be enumerated in the annual Water Use Efficiency report to the Office of
Drinking Water and is available online through Sentry Internet on the Office of
Drinking Water website.
6.4 Drought Conditions. During drought conditions or other supply shortages suffered
by Bremerton for any reason, it is agreed that Port Orchard customers supplied with
water will comply with similar restrictions and conservation measures required or
requested of Bremerton customers according to Bremerton's Water Shortage
Contingency Plan.
6.5 Alternative Sources. Port Orchard agrees to actively pursue the development of
alternative sources for the 580 Zone. Projects for consideration to accomplish this
include installing an intertie between Port Orchard's 390 and 580 Zones and
development of an alternative and/or additional well site.
7. Accounting.
7.1 Accounting for Water Supplied to Port Orchard in the 580 Zone. Bremerton will
provide a quarterly accounting of Port Orchard's water consumption in the 580
Zone and billing under the existing agreements located in Exhibit B but defer any
payment by Port Orchard until the purchase price of the Reservoir, Property,
Distribution Main, and Transmission Main has been satisfied in accordance with
this Agreement. The quantity of water delivered to Port Orchard shall be
determined by Bremerton by deducting the volume measured by the three 10-inch
master meters (Account numbers 4647120, 4647110, 4647090) from the total
volume delivered by Pump Station 2A as measured by the pump station mag meter
(Account number 4626960).
7.2 Value of Water Supplied to Port Orchard. Bremerton will provide an accounting
at the end of each year that identifies the value of water consumed by Port
Orchard which has been applied to the amount owed by Bremerton.
8. Taxes.
8.1 Taxes Resulting from Sale. To the extent applicable to this transaction, Bremerton
shall be responsible for and shall pay at closing all local and state use or excise
taxes that are applicable on the sale of the Purchased Assets to Bremerton, if any.
Bremerton and Port Orchard agree to split equally the excise taxes due on the real
property conveyed by Port Orchard to Bremerton.
8.2 Prior Taxes Owing. Port Orchard shall be responsible for all personal property
taxes, B&O taxes, and other taxes owing in connection with the conduct of Port
Orchard's business prior to Closing.
Agreement of Purchase and Sale of Assets in the 580 Zone Page 5 of 8
9. Closing Date and Delivery Date of the Assets.
The Closing shall be scheduled at such time as mutually agreed that the physical separation
of the two water systems is possible without a detrimental effect on either system. At the
Closing, Port Orchard shall deliver to Bremerton the Deed of Conveyance in the form
attached hereto as Exhibit D and shall convey the real estate by Quit Claim deed in the
form attached hereto as Exhibit E.
10. Term.
It is understood by both parties that this Agreement should remain in effect until such time
that Port Orchard has acquired adequate source to provide water to Port Orchard's 580
Zone. The term of this Agreement shall run from the date of this Agreement until
December 31,2024. Upon written agreement,the term of this Agreement may be extended
by the Mayor of each of the parties hereto, for successive one-year terms with the same
terms and conditions.
11. Notices.
All notices,requests,demands and other communications hereunder shall be in writing and
shall be deemed to have been duly given if delivered or if mailed,by United States certified
or registered mail, postage prepaid, to the parties or their assignees at the following
addresses (or at such other single address as shall be given in writing by one party to the
other):
Notice to Bremerton shall be sent to:
City of Bremerton
Attn: Public Works &Utilities Director
100 Oyster Bay Avenue North
Bremerton, WA 98312
Notice to Port Orchard shall be sent to:
City of Port Orchard
Attn: Public Works Director
216 Prospect Street
Port Orchard, WA 98366
12. Severability.
If any portion of the Agreement or its application is held invalid, the remainder of the
Agreement or the application of the remainder of this Agreement shall not be affected.
13. Modification.
This Agreement represents the entire agreement between the parties. No change,
Agreement of Purchase and Sale of Assets in the 580 Zone Page 6 of 8
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.
14. Benefit.
This Agreement shall be binding upon, and inure to the benefit of, the respective legal
representatives, beneficiaries, successors and assigns of Port Orchard and Bremerton.
Without limiting the foregoing, Port Orchard's rights hereunder may be enforced by it in
its own name. In the event that Bremerton causes the assets and business of Port Orchard
to be transferred to some other corporation, the rights of Bremerton and of Port Orchard
hereunder may be enforced by such other corporation in its own name.
15. 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.
16. Indemnification.
Each party shall defend, indemnify and hold the other party, its officers, officials,
employees, agents and volunteers harmless from any and all claims, injuries, damages,
losses or suits, including all legal costs and attorney fees, arising out of or in connection
with its performance of this Agreement. In cases of concurrent fault of the City and
County, the provision requiring each party to defend, indemnify and hold harmless the
other party are valid and enforceable only to the extent of the fault of the respective party.
17.Entire Agreement.
This Agreement (including all exhibits and schedules attached hereto and all documents
delivered as provided for herein) supersedes all oral statements and representations and
contains the entire agreement among the parties hereto with respect to the subject matter
hereof and the transactions contemplated hereby.
18. Effective Date.
This Agreement shall become effective upon execution by both parties.
IN WITNESS WHEREOF, the parties below have duly executed this Agreement.
CITY OF BREMERTON CITY OF PORT ORCHARD
-Cort
fff
By: G Wheeler By: Robert Putaansuu
its: Mayor its: Mayor
Agreement of Purchase and Sale of Assets in the 510 Zone Page 7 of 8
•
Date: I 1 j1.t1 Date: !( t 5 avl
Attest: Attest: ill"
I lillf.C.th. Ifni ,
City C14 ,,l erk—
Approved as to form: Approved as to form:
II.1...' .,17_
Roger A. Lubovich Je r fer '. Robertson
City Attorney Attorney for Port Orchard
Agreement of!Wettest and Sale of Assets/n to 580 Zone Page 8 of 8
EXHIBIT A
BREMERTON RESERVOIR AND LAND PURCHASE
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EXHIBIT B
INTERLOCAL AGREEMENT FOR COOPERATIVE WATER SYSTEM DEVELOPMENT
IN THE PORT ORCHARD 580 ZONE/BREMERTON 580 ZONE
INCLUDING ADDENDUM NO. 1 TO INTERLOCAL AGREEMENT
Exhibit B - Interlocal Agreement for Cooperative Water System Development in the Port
Orchard 580 Zone/Bremerton 580 Zone B— 1 of 19
1NT ERLOCAL AGREEMENT
for
Cooperative Water System Development
in the
Port Orchard 580 Zone / Bremerton 580 Zone
THIS AGREEMENT is made and entered into thi4440day ofAtizzi.,.L.6t4J_, 2001, by
and between the CITY OF BFREMERTON, a municipal corporation, hereinafter referred to as
Bremerton, and the CITY OF PORT ORCHARD, hereinafter referred to as Port Orchard.
FACTUAL BACKGROUND.
1. Port Orchard's 680 zone water system and the Bremerton's 580 zone water
system abut at Old Clifton Road.
2. Reliability and Ffficdcasy of Seng- Port Orchard and Bremerton desire to provide
the highest reliability of service 103 their customers at reasonable cost. The Cities recognize that
water resources are finite 2nd vulnerable and that prudent use and management of them
resources ran ba facilitated by ceoperdriucr among water utilities. The Cities agree that
cooperation in the construction, operation and management of the water systems that serve the
Port Orchard 580 and Bremerton 580 zones will:
• Improve overall system reliability,
• Enhance the rnanageability of the systems,
• Provide opportunities for conjunctive use of water supplies,
• Delay the need to develop new water sources,and
• Result In cost efficiencies for both systems
3. Detettat/Phsasing 1 Brimerton tofractnt tar - Currently, Bremerton has no
significant system improvements In its 580 zone. To serve the 580 zone, Bremerton must
construct new pumping,storage, transmission and distribution facilities. Port Orchard has existing
storage and transmission mains in its 680 zone. These facilities have excess capacity on an
interim basis. The Port Orchard 580 and Bremerton 580 zones can be made hydraulically
consistent so that the excess capacity of the Port Orchard system can be utilized by Bremerton.
Cooperation with Port Orchard will allow phasing of Bremerton system improvements, deferring
capital expenditures and reducing the overall system cost.
4. atierjncxof F kttrig Port Orchard eeprvnjr Site - Bremerton requires a site for a
future reservoir to serve its 580 zone. Port Orchard owns a site at the regional topographic high
point. The site is large enough to accommodate a future Bremerton reservoir.
5. , miaatiorsif rauplil;,at ticap_Statioris,A portion of the Port Orchard service area
Is too high to be sewed by the ex sting Port Orchard 580 zone reservoir. Port Orchard plans to
, create a new 660 pressure zone, starved by a new pump station,to serve this high area. A portion
of the Bremerton 580 zone is also too high to be served by its future Bremerton reservoir and
1580-1843.doc Page I of
'iGQ Inc, December 17.240t
Page B-2 of 19
service to this area will also require a new high pressure zone and pump station. It is logical and
cost effective to coordinate eervice to these adjacent high areas so that only a single new high
pressure zone and pump station is required,
6. 2aSlsfaotion ot.Port Qjca- • A . - • -• ' -u-a - Port Orchard requires
an additional source of supp'y to satisfy its 2017 system growth projections. Port Orchard has
applications pending for additional waterrights, but the ultimate disposition of these applications is
uncertain. Bremerton has available source of supply to provide to the City of Port Orchard on a
long term, uninterruptible basi-n,
7. RCW 39.34 and 35.92.200 empower Bremerton and Port Orchard to enter into a
cooperative agreement for providing outside water service.
iT IS AGREED:
1. COOJERATIVtii WATER SYSTEM DEVELOPMENT PLAN: Port Orchard and
Bremerton agree to cooperate: in the design, installation, operation and management of major
water system infrastructure an:i water supply to serve the Port Orchard 580 zone, the Bremerton
680 Zone and the future Port Orchard/Bremerton 660 zone, as outlined in the attached
Cooperative Water System Development Plan, (The Cooperative Plan). The Cooperative Plan,
which is attached and made a part hereof, has been reviewed and is approved upon adoption of
the Interlace!Agreement by the City Councils for Bremerton and Port Orchard.
2. SERVICE AREA,; Nothing In this agreement is to be construed as changing or
altering the water service area boundaries that exist as of the date of this agreement.
•
3. RESALE: Water supplied under this agreement shall not be resold to third party
utilities without the prior written eonsent of the supplying utility.
4. WATER SUPPLY:
4200Feitlle ja rty - Port Orchard agrees to supply water for domestic use and tireflow
to the 4200 Feigley Property from its 580 pressure zone via its 16 Inch water main in Old
Clifton Road,until such time as a separate Bremerton watermaln in Old Clifton Road(or its
equivalent) is constructed and operational. Fireflow rates/volumes and domestic/firefiow
service pressures supplied by Port Orchard will be a minimum of 1,700 gpm for one hour
at a minimum of gradient of 640 at the connection. Bremerton agrees to supply water to
Port Orchard, via its 12 Inch Campus Parkway waterrnain (Old Clifton Road connection),
to replenish the water supplied by Port Orchard to the 4200 Feigley property. The water
supplied by Bremerton to Port Orchard will be delivered at a minimum hydraulic gradient of
580. The volume of water supplied by Port Orchard to the 4200 Feigley property shall be
replenished by Bremerton on a continuous basis,or as otherwise agreed to.
200e- Upon implementation of the 660 zone, Port Orchard agrees to supply water for
domestic use and fireflow to Bremerton's 660 service area, via the 660 pump station.
Fireflow rates/volumes and domestic/fireflow service pressures supplied by Port Orchard
will be agreed to and approved by both Port Orchard and Bremerton prior to
implementation of the 660 zone. Bremerton agrees to supply water to Port Orchard, via
the Campus Parkway connection or reservoir site connection, as applicable, to replenish
the water supplied by Por: Orchard to Bremerton's portion of the 660 service area. The
water supplied by Bremerton to Port Orchard will be delivered at a minimum hydraulic
05860'1843.doo Page 2 of 8
iGG Inc. December 17,2001
Page B-3 of 19
gradient of 560. The:volume of water supplied by Port Orchard to Bremerton's 660 service
area shall be repleni:,hed by Bremerton on a continuous basis, or as otherwise agreed to.
Firet}ow and Emergeu S.up ly - Port Orchard agrees to supply the Bremerton 580 zone
with firefiow, via th9 Old Clifton Road connection or reservoir site connection, as
applicable, until such time as a separate Bremerton storage reservoir is constructed and
operational. Fireflovr will be provided at a maximum rate of 1,700 gpm for a maximum
period of 3 hours ate minimum gradient of 540 at the connection.
If either Bremerton or Port Orchard has a need for an emergency water supply(other than
firetlow), it shall notify the other utility of this and of the volume required prior to activating
the connection between the two systems. Notification of this need may be verbal, but it
will be followed up w1If in 10 working days by written confirmation. The emergency supply
of water between eac.i system shall not be unreasonably be denied by either party.
The volume of water:supplied for firefiow or emergency supply shall be replenished by the
receiving utility to the.;:uppiying utility within 24 hours after the emergency,or as otherwise
agreed to.
Bremerton Jninte ntit - .. . .. • a: • --Beginning on January 1, 2004(or at a
later time agreed by the parties, Bremerton agrees to supply a uninterruptible water supply
to the Port Orchard 51'0 Zone of up to a maximum of 285 ac.-ft. on a yearly basis, at a
maximum rate not to exceed 350 gpm, via the Old Clifton Road connection or reservoir
site connection, as applicable. This supply is In addition to water supplied by Bremerton to
Port Orchard for service of the 4200 Pelgiey property, the Bremerton 660 zone,
emergency purposes or for service of other portions of the Bremerton service area that
may be included in this agreement (and served via the Port Orchard system)in the future.
The water supplied by Bremerton to Port Orchard will be delivered at a minimum hydraulic
gradient of 580. Port Orchard agrees to compensate Bremerton for this long term water
supply in accordance with the terms of this agreement.
The water supplied by Bremerton to Port Orchard shall be firm and uninterruptible until
such future time as Port Orchard may secure new water rights to replace the Bremerton
supply. Port Orchard agrees to make diligent, continuous, best efforts to acquire water
rights to replace the Bremerton supply. Nothing in this Agreement shall abrogate Port
Orchard's obligation to provide its water supply needs through its own sources at the
earliest possible date, Bremerton agrees that if new water rights are not secured, the
water supplied by Brea erton will continue indefinitely. For purposes of this Agreement
Port Orchard is a whole dale customer of the City of Bremerton and will make no claim to
any Bremerton water right.
5- WATER QUALITY: Bremerton agrees to deliver water to Port Orchard at the
purity and quality in effect for residential customers of Bremerton. Port Orchard agrees to deliver
water to Bremerton at the purity and quality in effect for residential customers of Port Orchard,
except that water delivered by Part Orchard to Bremerton shall not be fluoridated. in the event of
water quality problems in either:system, Bremerton and Port Orchard agree to work cooperatively
and diligently to determine the s.ource/location of the problem and correct it. Regardless of the
source/location of water quality problems, each party agrees to assume the cost of correcting
water quality problems in its own system.
6. COMPENSATION: For purposes of this agreement the cost of water shall be fixed
at ninety-five percent (95%) of Bremerton's County retail rate. in calculating costs, the Master
095580.1843.dec Page 3 of6
HOG Ino. December 17,2001
Page B-4 of 19
Connection between the Port Orchard and Bremerton systems shall be assumed to be an 8 inch
meter(regardless of actual meter size). For ail other connections between the systems, the meter
size for billing purposes shall be the actual Installed size, All water provided from or to either utility
will be charged at this cost, unless otherwise agreed to. Payment for supplied water shall be
made monthly by the receiving utility, upon receipt of an invoice from the supplying utility.
Any and all fixed coste for a meter connection shall cease at such time that the receiving
utility notifies the supplying utility that the connection is no longer necessary for normal domestic
supply. After this notification, if the connection remains In place for purposes of emergency
supply, it will not be subject to the fixed cost portion of a rate structure, although any water used
for emergency purposes will bet subject to the agreed upon unit rate for water use.
This agreement Is based on the City of Bremerton's current rate structure, as of the date
of this agreement. This rate structure consists of two parts: a fixed cost (based on meter size)
and a variable cost (based on the actual volume of water purchased). It.Is acknowledged that
changes to this rate structure may occur during the life of this agreement. It is agreed by the
parties that any further rate stricture changes to add progressive rates for increased water usage,
will accommodate the fact that the water supplied under this agreement will serve a large number
of ERU's and that the estimated total number of ERU's served will be used to calculate the
volume of water in each rate tier.
7. WATER CONSt!iRVAT1ON: Port Orchard has begun to prepare and implement a
water conservation plan for the Port Orchard 580 zone_ The goat of.this plan is to reduce
domestic water consumption In the Port Orchard 580 zone. Upon execution of this agreement,
Port Orchard will move to complete and Implement the conservation plan.
During drought conditions or other supply shortages suffered by Bremerton for any
reason, it is agreed that Port O•chard customers using Bremerton supplied water will comply with
similar restrictions and conservation measures required or requested of Bremerton customers
according to Bremerton's Water Conservation Plan.
8. NOTICES: 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 clas:3., postage pre-paid and addressed to the party at its address as
stated below,or at such address as any party may designate at any time in writing.
Director of Public Works St Utilities City Engineer
City of Bremerton City of Port Orchard
3027 Olympus Drive 216 Prospect Street
Bremerton,WA 98310-4799 Port Orchard,WA 98368
9. SEVERABILITY: it is the intent of the parties that if any provision of this contract or its
application is held by a court of competent jurisdiction to be illegal, invalid, or void, the validity of
the remaining provisions of this contract or its application to other entities, or circumstances shall
not be affected. The remaining ,:►rovisions shall continue in full force and effect, The rights and
obligations of the parties shall bi►t construed and enforced as if the contract did not contain the
particular invalid provision. However, if the Invalid provision or its application is found by a court of
competent jurisdiction to be substantive and to render performance of the remaining provisions
unworkable and non-feasible, it is found to seriously affect the consideration and/or is inseparably
connected to the remainder of the contract, the entire contract shall be null and void.
095560.i843.doe Page 4 a e
HGG Inc. December 17.2001
Page B-5 of 19
10. MODIFICATION: This Agreement 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. This Agreement shall not be modified, supplemented, or otherwise affected
by the course of dealings between the parties.
11. 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.
12. ARBITRATION: Disputes under this Agreement shall be settled through binding
arbitration and the parties agree and stipulate pursuant to MAR 8.1 that the Mandatory Arbitration
Rules for Superior Court shall apply, except Section VIII,Trial De Novo.
13. Consent: Whenever it is provided in this contract that the prior written consent or
approval of either party is required as a condition precedent to any actions,the requested consent
or approval shall not be unreasonably withheld. When prior consent is sought,failure of the party
to respond in writing within 90 days of the request shall be deemed as the party's consent or
approval. This provision does not apply to requests for amendments of this contract.
14. Emergency Situations: Nothing in this contract shall be deemed to preclude
either party from taking neces sary action to maintain or restore water supply in emergency
situations and such action shall riot be deemed a violation of this contract.
15. No Joint Venture -Individual Liability: This Is not an agreement of joint venture
or partnership. No provision of this contract shall be construed so as to make either party
individually or collectively a partner or joint venture with the other party. Neither party is an agent
of the other. Neither party shall be liable for the acts of the other in any representative capacity
whatsoever.
16_ Complete Agreement: This contract represents the entire agreement between
the parties hereto concerning the subject matter hereof. This contract may not be amended
except as provided herein.
17. Venue, Jurisdiction and Specific Performance: In the event of litigation
between the parties, venue and jurisdiction shall lie with the Kitsap County Superior Court of the
State of Washington. The parties shall be entitled to specific performance of the terms hereof.
18. Default: in the event of default of any provision of the contract, the non-defaulting
party shalt send written notice tc the other party setting forth the nature of the'default. If the
default Is for a monetary payment due hereunder, the defaulting party shall have thirty(30) days
to cure the default. In the event of other defaults,the non-defaulting party shall use its best efforts
to cure the default within ninety (90)days. if such default cannot be reasonably cured within such
ninety(90)day period,the non-de:'aulting party shall, upon written request prior to the expiration of
the ninety(90)day period be granted an additional sixty(80)days to cure the default.
19. Force Majeure: The time periods for either party's performance under any
provisions of this contract shall be extended for a reasonable period of time when either party's
performance is prevented, in gs:od faith, due to fire, flood, earthquake, lockouts, strikes,
o95560.1 a43.doc Pago 5 of 6
HGO Ina. December 17.2001
Page B-6 of 19
embargoes, acts of God, war and civil disobedience. If this provision is invoked, the invoking
party agrees to immediately take ail reasonable steps to alleviate, cure, minimize or avoid the
cause preventing such performance, at its sole expense.
20. Successors: This contract shall inure to the benefit of and be binding upon the
parties and their successors and assigns.
IN WITNESS WHERI::OF the parties hereto execute this Agreement this QL.dgi day of
-9-admeds,44 `, 20 2_.
CITY OF BREMERTON CITY OF PORT ORCHARD
BY: BY:
ayor Mayor
ATTEST: ATTEST (.4,
1/4 Nt4.. .re
Clerk Cler
APPR• ! • ORM• APPROV TO
•
•
City A'orney ity Aft rney
DEPA-TM/'TAir•PPROVAL:
Director of Public Utilities
•
o95560-1843.doe Page 8 018
HOG Me, December 17,2001
Page B-7 of 19
Port Orchard 580 Zone / Bremerton 580 Zone
Plan for
Cooperative Water System Development
This Document provides a plan for cooperative water system development between the
City of Port Orchard and the City of Bremerton. The Cooperative Water System Development
Plan ("The Cooperative Pian") outlined below describes phased water improvements in the Port
Orchard 580 and Bremerton 580 zones which will provide safe, reliable service in an efficient and
cost effective manner. Cooperation between the City of Bremerton and the City of Port Orchard in
the development of their adjacent water systems will result in the following benefits:
A. Reliability and Efficiency of Service-Water resources are finite and vulnerable and
the prudent use and management of these resources can be facilitated by
cooperation among water utilities. Cooperation in the construction, operation and
management of the water systems that serve the Port Orchard 580 and Bremerton
580 zones will:
iII
•
Improve overall system reliability,
• Enhance the manageability of the systems,
• Provide opportunities for conjunctive use of water supplies,
• Will delay the need to develop new water sources, and
• Result in cost efficiencies for both systems
B. DeferraVPhasing of Bremerton Infrastructure - Currently, Bremerton has no
significant system improvements in its 580 zone. To serve the 580 zone,
Bremerton must construct new pumping, storage, transmission and distribution
facilities. Port Orchard has existing storage and transmission mains in its 580
zone. These facilities have excess capacity on an interim basis. The Port Orchard
580 and Bremerton 580 zones can be made hydraulically consistent so that the
excess capacity of the Port Orchard system can be utilized by Bremerton.
Cooperation with Port Orchard will allow phasing of Bremerton system
improvements,deferring capital expenditures and reducing the overall system cost.
C. Sharing of Existing Port Orchard Reservoir Site - Bremerton requires a site for a
future reservoir to serve its 580 zone. Port Orchard owns a site at the regional
topographic high point. The site is large enough to accommodate a future
Bremerton reservoir.
D. Elimination of Duplicate Pump Stations-A portion of the Port Orchard service area
Is too high to be served by the existing Port Orchard 580 zone reservoir. Port
Orchard plans to create a new 660 pressure zone, served by a new pump station,
to serve this high area. A portion of the Bremerton 580 zone is also too high to be
served by its future Bremerton reservoir and service to this area will also require a
o95560-1842.doc Page 1 of I1
December I7.2001
Page B-8 of 19
new high pressure zone and pump station. It is logical and cost effective to
coordinate service to these adjacent high areas so that only a single new high
pressure zone and pump station is required.
E. Satisfaction of Port Orchard Water Source Requirements - Port Orchard requires
an additional source of supply to satisfy its 2017 system growth projections. Port
Orchard has applications pending for additional water rights, but the ultimate
disposition of these applications is uncertain. Bremerton has available source of
supply to provide to the City of Port Orchard on a long term, uninterruptible basis.
The Cooperative Plan will be implemented in four phases, as described below, Attached
is a summary chart which provides a quick one page synopsis of the main points of The
Cooperative Plan. Also attached is a map of The Cooperative Plan area (Figure 1) with key
landmarks noted.
For purpose of this Cooperative Plan,a Port Orchard 580 zone ERU connection is defined
as a single family residential connection or, if other than single family, a connection which has an
average daily demand of 290 gpd and a maximum daily demand of 650 gpd, and a Bremerton
580 zone ERU connection is defined as a single family residential connection or, if other than
single family, a connection which has an average daily demand of 202 gpd and a maximum daily -
demand of 392 gpd.
Phase 1
Term:
Phase 1 extends from the present through 923 Port Orchard ERU connections in the Port
Orchard 580 Zone (approximately year 2004) or through 1,260 Bremerton ERU connections, in
the Bremerton 580 Zone, whichever occurs first.
During Phase 1 the 4200 Feigley property will be served by Port Orchard with water
replenished by Bremerton, Phase I of the Northwest Corporate Campus will be served by the
Bremerton system, and the McCormick Woods PUD and McCormick West will be served by the
Port Orchard system.
Phase 1 Water System Plan:
In Phase 1, Bremerton will construct new Pump Station 2A, a new 12 inch transmission
main in Campus Parkway (from pump station 2A to Old Clifton Road) and a new connection
between the Port Orchard and Bremerton systems at Old Clifton Road (termed the Old Clifton
Road connection). Port Orchard will provide up to 1,700 gpm of emergency fireflow for up to 3
hours to the Bremerton system,via the new Old Clifton Road connection. This will defer the need
for Bremerton to construct a separate new storage reservoir in the 580 zone and a separate new
water main in Old Clifton Road. Water will also be supplied from Bremerton to Port Orchard, via
this connection,in the event of a supply emergency in the Port Orchard system.
The 4200 Feigley property Is within the Bremerton service area and its internal water
system will be constructed, owned and operated byBremerton. In Phase 1, the 4200 Feigley
Y P
project will water from the existing r l connect to, and be g Port Orchard 16 inch water main
o95560-1842.doc Page 2 of 11
December IT,2001
Page B-9 of 19
in Old Clifton Road. This will defer the need for Bremerton to construct a separate new water
main in Old Clifton Road.
Bremerton will supply water to the Port Orchard system, via the Old Clifton Road
connection, to replenish the water supplied by Port Orchard to the 4200 Feigiey property. Port
Orchard and Bremerton will also replenish and/or reimburse each other for water supplied for
emergency and/or fireflow purposes.
Specific responsibilities in Phase 1 are:
Consistent Pressure Gradient - A consistent pressure gradient between the Bremerton
and Port Orchard systems is required to facilitate cooperative service. Therefore, as part of
Phase 1, Bremerton will adjust its'adjacent water system to a 580 pressure gradient so that it is
consistent with the hydraulic gradient in the Port Orchard system. The adjustment of Bremerton's
hydraulic gradient may require revisions to the design of Bremerton's planned Pump Station 2A.
These revisions are the responsibility of Bremerton. All planning and design revisions necessary
to accomplish the change in hydraulic gradient shall commence upon execution of this agreement
and be completed by January 1, 2002.
•
Bremerton Pump Station 2A- In Phase 1, Bremerton will construct,operate and maintain
pump station 2A to supply a minimum of 1,600 gpm at a hydraulic gradient of 580 at the Port
Orchard reservoir. Pump Station 2A will be equipped with a standby power generator sufficient to
maintain operation of the pump station during a power outage. The pump station will be
completed and operational by July 1, 2002.
12 inch Transmission Main in Campus Parkway - Bremerton will construct, operate and
maintain a 12 inch transmission main in Campus Parkway from Pump Station 2A to the Old
Clifton Road connection with the existing Port Orchard 16 inch water main. This transmission
main shall be completed and operational by July 1, 2002.
Connection between the Bremerton and Port Orchard Systems at Old Clifton Road -
Bremerton will construct a connection (including meter) between the 12 inch transmission main in
Campus Parkway and the existing Port Orchard 16 inch water main in Old Clifton Road (Old
Clifton Road connection). The meter shall be capable of measuring the flow of water both from
Bremerton to Port Orchard and from Port Orchard to Bremerton. The specific design and method
of operation of the connection/meter shall be approved by both Port Orchard and Bremerton prior
to installation. Construction and maintenance of the connection/meter is the responsibility of
Bremerton but the cost of construction, operation and maintenance will be shared equally by both
Port Orchard and Bremerton. The connection shall be completed and operational by July 1,2002.
Port Orchard and Bremerton shall work together to secure Washington State Department
of Health and Washington State Department of Ecology approval of the connection. If
amendments to water system plan documents are required these shall be completed by each
system at Its own expense. If additional specific studies/designs are required to secure approval
of the connection these shall be completed as agreed to and the cost shared equally by both Port
Orchard and Bremerton.
Fireflow for Northwest Corporate Campus- Fireflow for the Northwest Corporate Campus
is reported by Bremerton to be 1,700 gpm for 3 hours. Port Orchard has approximately 306,000
o95560-1842.doc Page 3 of 11
December 17.2001
Page B-10 of 19
gallons of available storage in its existing reservoir which allows Port Orchard to provide up to
1,700 gpm of fireflow for 3 hours to the Bremerton system (at a minimum hydraulic gradient of
540). With Port Orchard supplying 1,700 gpm fireflow, Bremerton need not supply any firefiow
directly from Pump Station 2A. If the fireflow requirement at Northwest Corporate Campus
increases above 1,700 gpm due to unforeseen circumstances, Bremerton will supply the fireflow
amount above 1,700 gpm.
Port Orchard's supply of 1,700 gpm for 3 hours for fireflow is contingent on the approval of
the local fire district and the Washington State Department of Health to allow standby and fireflow
storage to utilize the same volume (in the Port Orchard 580 reservoir). Port Orchard and
Bremerton will work together to secure these approvals.
Service to 4200 Feigley Property- Bremerton will construct a connection (including meter)
between the 4200 Feigley water system and the existing Port Orchard 16 inch water main in Old
Clifton Road (Feigley connection). The meter shall be capable of measuring the flow of water
from the Port Orchard system to the 4200 Feigley system. The specific design and method of
operation of the connection/meter shall be approved by both Port Orchard and Bremerton prior to
installation. Construction, operation, maintenance and all associated costs of the connection
/meter Is the responsibility of Bremerton.
660 Pressure Zone - Port Orchard will create a 660 pressure zone by designing,
constructing, operating and maintaining a new pump station at the 580 reservoir site. The 660
pump station will be designed and constructed to service area in both Port Orchard and
Bremerton. The 660 pump station will be designed to supply domestic demands and fireflow, in
accordance with applicable state regulations. The 660 pump station will be equipped with a
standby power generator sufficient to maintain operation of the pump station during a power
outage, in accordance with applicable state regulations. Design and construction of the 660 pump
station, and implementation of the 660 zone, will begin at a future date to be agreed on by
Bremerton and Port Orchard. Design of the 660 pump station, the 660 zone boundaries, the
number of connections to be served and required tireflow will be approved by both Port Orchard
and Bremerton prior to implementation.
The cost of design and construction of the 660 pump station will be shared by Bremerton and
Port Orchard on a pro-rata basis, based on the total number of ERU connections within the 660
zone. Distribution mains within the 660 zone will generally be the individual responsibility of Port
Orchard and Bremerton, depending on which service area they serve. The cost of shared
distribution facilities in the 660 zone, if any, will be shared by Bremerton and Port Orchard on a
pro-rata basis based on the total number of ERU connections served by the facility,
Water supplied from the 660 pump station to the Bremerton service area will be metered.
The specific design and method of operation of the connection/meter shall be approved by both
Port Orchard and Bremerton prior to Installation. Construction, operation, maintenance and all
associated costs of this connection/meter is the responsibility of Bremerton. Bremerton will supply
water to the Port Orchard system, via the Old Clifton Road connection, to replenish the water
supplied by Port Orchard to the Bremerton service area within the 660 zone, including domestic,
fireflow and emergency supply.
o95560-1842.dec Page 4 of 11
December 17,2001
Page 6-11 of 19
Phase 2
Term:
Phase 2 extends from 923 Port Orchard ERU connections in the Port Orchard 580 Zone
(approximately year 2004) through 1,500 Port Orchard ERU connections (approximately year
2007) or through 3,350 Bremerton ERU connections in the Bremerton 580 Zone, whichever
occurs first.
Phase 2 Water System Plan:
In Phase 2, Bremerton will provide a long term, uninterruptible source of supply to the Port
Orchard system of up to 285 ac.-ft. on a yearly basis, at a maximum rate not to exceed 350 gpm.
This supply is in addition to water supplied by Bremerton to Port Orchard for service of the 4200
Feigley property,the 660 zone or for emergency purposes. This source of supply will be provided
by upgrading the capacity of Bremerton Pump Station 2A(unless it was oversized in Phase 1).
In Phase 2, Port Orchard will continue to provide up to 1,700 gpm of emergency fireflow
for up to 3 hours to the Bremerton system at a minimum hydraulic gradient of 540, via the Old
Clifton road connection, and Port Orchard will continue to supply water to 4200 Feigley via the
Feigley connection,deferring Bremerton transmission main and storage improvements. In Phase
2 water will also be supplied between the systems, via the Old Clifton Road connection, in the
event of a water supply emergency in either system.
Specific responsibilities during Phase 2 are:
Bremerton Pump Station 2A - In Phase 2, Bremerton will upgrade the capacity of Pump
Station 2A to accommodate the supply of a maximum of 350 gpm to the Port Orchard water
system. All incremental costs associated with the required capacity upgrades to Pump Station 2A
will be the responsibility of Port Orchard. The pump station capacity upgrades will be completed
and operational within one year of Port Orchard's request, in writing, that the source be made
available, but no sooner than January 1, 2004.
12 inch Transmission Main in Campus Parkway- If the supply of an additional 350 gpm to
the Port Orchard system requires upgrading the capacity of transmission mains in Campus
Parkway, the cost of these upgrades will be the responsibility of Port Orchard. However,
Bremerton will cooperate with Port Orchard to minimize the need for transmission main upgrades
by managing its system as efficiently as possible, including utilizing distribution mains as
transmission facilities where feasible.
Bremerton Uninterruptible Supply to Port Orchard - Beginning in Phase 2, Bremerton will
provide a uninterruptible source of supply to the Port Orchard 580 Zone of up to a maximum of
285 ac.-ft. on a yearly basis, at a maximum rate not to exceed 350 gpm, via the Campus Parkway
or reservoir site connection, as applicable. This supply is in addition to water supplied by
Bremerton to Port Orchard for service of the 4200 Felgley property, 660 zone or for emergency
purposes. The water supplied by Bremerton to Port Orchard will be delivered at a minimum
hydraulic gradient of 580(at the 580 reservoir).
o95560-1842.doc Page 5 of 11
December 17.2001
Page B-12 of 19
The water supplied by Bremerton to Port Orchard shall be firm and uninterruptible until
such future time as Port Orchard may secure new water rights to replace the Bremerton supply.
Port Orchard agrees to make diligent, continuous, best efforts to acquire water rights to replace
the Bremerton supply. Nothing in this Agreement shall abrogate Port Orchard's obligation to
provide its water supply needs through its own sources at the earliest possible date. Bremerton
agrees that if new water rights are not secured, the water supplied by Bremerton will continue
indefinitely. For purposes of this Agreement Port Orchard is a wholesale customer of the City of
Bremerton and will make no claim to any Bremerton water right.
Bremerton will coordinate its operation and maintenance of pump station 2A so that
interruptions, if any, in water supplied to Port Orchard occur during tow water use periods.
Regulatory Approvals - Port Orchard and Bremerton shall work together to secure
Washington State Department of Health and Washington State Department of Ecology approval
of Bremerton's supply to Port Orchard, If amendments to the water system plan documents are
required these shall be completed by each system at their own expense. If additional specific
studies/designs are required to secure approval these shall be completed as agreed to and the
cost shared equally by both Port Orchard and Bremerton.
Phase 3
Term:
Phase 3 extends from 1,500 Port Orchard ERU connections in the Port Orchard 580 Zone
(approximately year 2007) through 2835 Port Orchard ERU connections in the 580 Zone (full
buildout - approximately year 2018) pr through 3,350 Bremerton ERU connections in the
Bremerton 580 Zone,whichever occurs first.
Phase 3 Water System Plan:
After approximately 1,500+I- ERU connections in the Port Orchard 580 Zone,the existing
Port Orchard 16 inch main in Old Clifton Road may not have sufficient capacity to supply fireflow
to the Bremerton system. In Phase 3 Bremerton will construct a permanent transmission main in
Old Clifton Road from Campus Parkway to the Port Orchard reservoir and 4200 Feigley will be
disconnected from the Port Orchard 16 inch main and served from this new Bremerton main. In
Phase 3 the connection between the Port Orchard and Bremerton systems at Old Clifton Road
will be relocated to the Port Orchard reservoir site (termed the reservoir connection).
In Phase 3, Port Orchard will continue to provide up to 1,700 gpm of emergency fireflow
for up to 3 hours to the Bremerton system at a minimum gradient of 540, via the reservoir
connection,deferring the need for Bremerton to construct a separate new storage reservoir in the
580 zone.
During Phase 3, Port Orchard will construct a second reservoir on Its existing reservoir site
to satisfy its growth requirements in its 580 zone. Port Orchard will coordinate the design of this
second reservoir with Bremerton so that space is available at the Port Orchard site for a future
Bremerton reservoir(s).
o95560-1842.doc Page 6 of 11
December 17,2001
Page B-13 of 19
Specific responsibilities during Phase 3 are:
Bremerton 12 inch Transmission Main in Old Clifton Road - Bremerton will construct,
operate and maintain a 12 inch transmission main in Old Clifton Road from Campus Parkway to a
connection with the Port Orchard water system at the Port Orchard reservoir site (reservoir
connection). The transmission main will be completed and operational within 1 year of Port
Orchard's request,in writing, that the main be constructed, but no sooner than 2007.
If Bremerton's long term supply of 350 gpm to the Port Orchard system requires upgrading
the capacity of the Bremerton transmission main in Old Clifton Road, the cost of this upgrade will
be the responsibility of Port Orchard. However, Bremerton will cooperate with Port Orchard to
minimize the need for transmission main upgrades by managing its system as efficiently as
possible,including utilizing distribution mains as transmission facilities where feasible.
Relocation of the Connection between the Bremerton and Port Orchard Systems - As an
element of the installation of its transmission main in Old Clifton Road, Bremerton will relocate the
Old Clifton Road connection and meter to the Port Orchard reservoir site (reservoir connection),
The specific design and method of operation of the connection/meter relocation shall be approved
by both Port Orchard and Bremerton prior to installation. installation and maintenance of the
connection/meter at the reservoir site is the responsibility of Bremerton, but the cost of installation,
operation and maintenance will be shared equally by both Port Orchard and Bremerton. The
construction schedule for relocation of the connection/meter shall be coordinated with Port
Orchard to avoid disruptions in supply to Port Orchard.
Regulatory Approvals - Port Orchard and Bremerton shall work together to secure
Washington State Department of Health and Washington State Department of Ecology approval
of the connection relocation. If amendments to the water system plan documents are required
these shall be completed by each system at their own expense. If additional specific
studies/designs are required to secure approval these shall be completed as agreed to and the
cost shared equally by both Port Orchard and Bremerton.
Phase 4
Term:
There is no specific timetable for the start of Phase 4. Phase 4 begins when Bremerton
requires separate standby storage in its 580 Zone and/or when separation of the Port Orchard
and Bremerton systems is desired by either City,whichever occurs first.
Phase 4 Water System Plan:
In Phase 4, the Bremerton and Port Orchard systems will be functionally separated.
Bremerton will construct separate storage reservoir(s) on the Port Orchard reservoir site(s) and a
separate distribution main in Old Clifton Road(if necessary). In Phase 4 Bremerton will provide its
own fireflow. Port Orchard will provide space within its reservoir site to Bremerton for a reservoir,
when requested to do so by Bremerton.
Specific responsibilities during Phase 4 are:
o95560-1842.dcc Page 7 of 11
December 17.200!
Page B-14 of 19
Bremerton Storage Reservoir(s) to be located on the Port Orchard Reservoir Site(s) (Tax
Parcel Nos.0723-011-006-20 and 0823-012-001-20) -Port Orchard will make land available on its
reservoir site(s) for Bremerton to construct, operate and maintain a separate storage reservoir or
reservoirs to serve the Bremerton 580 zone. The exact location of the Bremerton reservoir(s)will
be determined by mutual agreement prior to construction. Title for the land on which the
Bremerton reservoir(s) are built will remain with Port Orchard. Port Orchard will grant a
permanent easement to allow Bremerton to construct, maintain and operate the reservoir(s) and
associated water mains and appurtenances on the site in perpetuity,at no cost to Bremerton.
Each party shall be responsible for the cost of construction,site restoration, operation and
maintenance of its own reservoirs and water system Infrastructure on the reservoir site(s). After
construction of the Bremerton reservoir, the cost of routine maintenance of the reservoir grounds
and access roads will be shared equally by Bremerton and Port Orchard.
Due to uncertainties regarding future land use and sensitive area codes, Port Orchard will
not warrant that any specific area, size or shape of land will be available for use by.Bremerton.
However, from the date of this agreement Port Orchard will coordinate with Bremerton regarding
its future space requirements prior to constructing any additional infrastructure on the site(s).
Separation of the Bremerton and Port Orchard Systems - Separation of the Bremerton
and Port Orchard systems and/or restoration of both systems to a permanent configuration may
require the removal and/or relocation of temporary piping,valving meters, etc., the addition of new
connections at the reservoir site, etc. The cost of these miscellaneous adjustments will be shared
equally between Bremerton and Port Orchard unless it is clearly demonstrated that the work is for
the benefit of a particular system.
Monitoring of Supplied Water
All water supply delivered as described in this plan shall be measured by the supplying
utility using electronic metering equipment of a type which is agreeable to each utility. Meters
shall be read and metering results shall be reported to the receiving utility on a monthly basis, or
at such frequency as may otherwise be agreed to by the parties. The metering equipment shall
be furnished, installed, maintained, and calibrated by the receiving utility, as specified below.
Calibration shall be done at least once every three (3) years and a copy of calibration results
submitted to the supplying utility. Both utilities shall have access to and be permitted to install and
maintain its own monitoring and recording system at its own expense.
4200 Felgley meter- For this connection Port Orchard is the supplying utility and
Bremerton is the receiving utility.
660 Zone meter - For this connection Port Orchard is the supplying utility and
Bremerton is the receiving utility.
Old Clifton Road connection and/or Reservoir connection meters - For these
connections Bremerton is the supplying utility and Port Orchard is the receiving
utility. However, Bremerton will be responsible for furnishing, installing,
maintaining,and calibrating the metering equipment for these connections, and the
cost shall be shared Jointly.
o95560.1842.doc Page 8 of 11
December 17.2001
Page B-15 of 19
In the event any meter fails to register, or it registers incorrectly, the Water Utility Billing
Department for the supplying utility shall estimate the amount of water delivered for the period
during which such meter failed to register by taking an average of the total 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.
•
o95560.1842.doc Page 9 of 11
December 17.2001
Page B-16 of 19
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i
ADDENDUM NO. 1 TO
INTERLOCAL AGREEMENT
For
Cooperative Water System Development
In the
Port Orchard 580 Zone/Bremerton 580 Zone
This Addendum No. I amends the Interlocal Agreement (the "Agreement") entered into
between the City of Bremerton, a municipal corporation, hereinafter referred to as "Bremerton,"
and the City of Port Orchard, hereinafter referred to as "Pott Orchard" executed on December
26, 2001, and
WHEREAS, the parties mutually desire to modify the responsibilities of each party with
respect to the agreed upon provision of water; NOW THEREFORE
All provisions in the Agreement shall remain in full force and effect except as expressly
modified by this document.
For valuable consideration and by mutual consent of the parties, the modifications to the
Agreement are as follows:
I.
1. Amend Section 4. entitled "Water Supply" as follows:
Delete the section titled "4200 Feigley Property" in its entirety and replace it with the
following;
Bremerton West 580 Zone Supply
Port Orchard agrees to supply water for domestic use and fireflow to the Bremerton West
580 pressure zone via its 16 inch water main in Old Clifton Road, until such time as a
separate Bremerton storage reservoir is constructed and operational. Fireflow
rates/volumes and service pressures supplied by Port Orchard will be a minimum of
1,700 gpm for three hours at a minimum gradient of 540 feet at the connection.
Bremerton agrees to supply water to Port Orchard,via its connection to the 16 inch Port
Orchard watetutain in Clifton Road(Old Clifton Road connection),to replenish the water
supplied by Port Orchard to the Bremerton West 580 pressure zone. The water supplied
by Bremerton to Port Orchard will be delivered at a minimum hydraulic gradient of 580.
The volume of water supplied by Port Orchard to the Bremerton West 580 pressure zone
shall be replenished by Bremerton on a continuous basis, or as otherwise agreed to.
Distribution piping, as required by the City of Bremerton, will be extended by others
from Port Orchard's water main in Old Clifton Road. Connection locations and details
require approval from the City of Port Orchard. Master meters will be installed at the
point of connection. Domestic meters will be installed and maintained by the City of
Bremerton, or as otherwise agreed to, and be billed directly to the customer.
Addendum No. 1 to Interlocal Agreement 1 June 18,2004
Page B-18 of 19
2. Transmission Main:
Delete all references in the agreement to the City of Bremerton "12-inch transmission
main" and replace them with "16-inch transmission main".
3. Plan for Cooperative water System Development
Amend the section entitled"Monitoring of Supplied Water"on page 8 of 11 as follows:
Delete "4200 Feigley meter — For this connection Port Orchard is the supplying utility
and Bremerton is the receiving utility." and replace it with the following:
"West 580 Zone supply Meters - For these connections Port Orchard is the supplying
utility and Bremerton is the receiving utility."
The parties whose names appear represent that they are authorized to enter into a contract
amendment that is binding on the parties of this contract.
IN WITNESS WHEREOF, the parties have executed this Addendum 1. to the Agreement on the
day fully executed below.
CITY OF PORT ORCHARD CITY OF BREMERTON
F 4
By y, ,'2 � /r By Car •Bozeman
Its /-74-',,,,c),/ Its Mayor
DATE: /
DATE:
APPROVED AS TO FORM: APPROVED AS TO FORM:
Roger A. Lubovich
Bremerton City Attorney
ATTEST: ATTE •
aula Jol 4lston
1
City CI,k<
Addendum No. Ito Interlocal Agreement 2 June 18,2004
Page B-19 of 19
EXHIBIT C
PURCHASED ASSETS
1. Tax Parcel 082301-2-001-2005 consisting of 4.63 acres;
2. 0.45 MG storage reservoir located on the parcel noted above;
3. 6,900 feet of 16"ductile iron Transmission Main located in the Right of Way of Old Clifton
Road between the 0.45 MG Reservoir and the intersection of Old Clifton Road and
McCormick Woods Drive;
4. 330 feet of 8" ductile iron Water Main, a Mueller Fire Hydrant, a 3/4" domestic meter, a 1-
1/2" irrigation meter, and a 2" meter to the Splash Pad all located within McCormick
Village Park.
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EXHIBIT D
DEED OF CONVEYANCE
When recorded return to:
City of Bremerton
Attn. City Clerk
345 6th Street, Suite 600
Bremerton WA 98337
DEED OF CONVEYANCE
Grantor: City of Port Orchard, a Washington municipal corporation
Grantee: City of Bremerton, a Washington municipal corporation
Abbreviated Legal: Resultant Parcel A of Boundary Line Adjustment Recorded Under
Auditor's File No. 3031737
Assessor's Tax Parcel Number: 082301-2-001-2005
THE GRANTOR, City of Port Orchard, a municipal corporation of the first class ("Port
Orchard"),hereby transfers,conveys and sells to the GRANTEE,City of Bremerton,a Washington
municipality ("Bremerton"), the assets of Port Orchard identified as the "Purchased Assets"
pursuant to, and as more particularly described as:
1. Tax parcel#082301-2-001-2005 (conveyed via Exhibit E—Quit Claim Deed)and the 0.45
MG Reservoir located on said parcel valued at $434,000;
2. 6900' of Ductile Iron Water Main (Transmission Main) located in the Right-of-Way on
Old Clifton Road between the Reservoir and McCormick Woods Drive valued at$345,000;
3. 330' of 8" Ductile Iron Water Main (Distribution Main), a Mueller Fire Hydrant, a 3/4"
Domestic Water Meter, a 1-1/2" Irrigation Water Meter, and a 2" Water Meter serving the
Splash Pad all located within the McCormick Village Park and valued at $25,000.
Port Orchard hereby warrants and defends the conveyance of the Purchased Assets made to
Bremerton, and its assigns, against all and every person and persons whomsoever lawfully
claiming the same. The City of Port Orchard makes no warranty as to the condition of the
Purchased Assets. The City of Bremerton has had the opportunity to inspect the Purchased Assets
and accepts the Purchased Assets, "as is, where is."
Port Orchard and Bremerton have hereunto set their hand and seals effective as of
day of , 20 .
CITY OF BREMERTON CITY OF PORT ORCHARD
By: By:
its: Mayor its: Mayor
Date: Date:
Deed of Conveyance Page 1 of 2
Approved as to form: Attest:
Bremerton City Attorney City Clerk
Approved as to form:
Attorney for Port Orchard
Deed of Conveyance Page 2 of 2
EXHIBIT E
QUIT CLAIM DEED
When recorded return to:
City of Bremerton
Attn. City Clerk
345 6t11 Street, Suite 600
Bremerton WA 98337
QUIT CLAIM DEED
Grantor: City of Port Orchard, a Washington municipal corporation
Grantee: City of Bremerton, a Washington municipal corporation
Abbreviated Legal: Resultant Parcel A of Boundary Line Adjustment Recorded Under
Auditor's File No. 3031737
Assessor's Tax Parcel Number: 082301-2-001-2005
THE GRANTOR City of Port Orchard, a municipal corporation in Kitsap County, Washington for
and in consideration of valuable consideration as described under the Agreement For Purchase and
Sale of Assets of West 580 Zone Reservoir executed by the parties on November 20,2019 in hand
paid, conveys and quit claims to the City of Bremerton, a municipal corporation in Kitsap County,
Washington, the following described real estate, situated in the County of Kitsap, State of
Washington together with all after acquired title of the grantor(s)herein:
RESULTANT PARCEL A OF BOUNDARY LINE ADJUSTMENT RECORDED UNDER AUDITOR'S FILE NO.
3031737;THAT PORTION OF THE NORTHWEST QUARTER OF THE NORTHWEST QUARTER OF
SECTION 8,TOWNSHIP 23 NORTH,RANGE 1 EAST,W.M.,KITSAP COUNTY,WASHINGTON,LYING
NORTHWESTERLY OF FIEGLEY ROAD SW AND OLD CLIFTON ROAD SW(COUNTY ROAD NO.234)
AND LYING NORTHWESTERLY OF OLD CLIFTON ROAD SW(ALDER ROAD);EXCEPT THAT
PORTION THEREOF DESCRIBED AS FOLLOWS: BEGINNING AT THE NORTHWEST CORNER OF THE
NORTHWEST QUARTER OF THE NORTHWEST QUARTER OF SAID SECTION 8;THENCE Sl*55'45 W,
ALONG THE WEST LINE OF SAID NORTHWEST QUARTER,A DISTANCE OF 330.14 FEET TO THE
SOUTHWEST CORNER OF THE NORTH 330.14 FEET OF THE NORTHWEST QUARTER OF THE
NORTHWEST QUARTER OF SAID SECTION 8 AND THE TRUE POINT OF BEGINNING;THENCE
CONTINUIING S1*55'45 W ALONG THE WEST LINE OF THE NORTHWEST QURTER OF SAID SECTION
8,A DISTANCE OF 412.36 FEET TO THE NORTHWESTERLY RIGHT-OF-WAY MARGIN OF OLD
CLIFTON ROAD;THENCE N42*51'37 E,ALONG SAID RIGHT-OF-WAY MARGIN,A DISTANCE OF 306.20
FEET;THENCE N47*08'23 W A DISTANCE OF 140.10 FEET TO THE BEGINNING OF A 95.00 FOOT
RADIUS CURVE TO THE RIGHT;THENCE NORTHWESTERLY(CLOCKWISE)ALONG SAID CURVE,
THROUGH A CENTRAL ANGLE OF 49*04'08 E,AN ARC DISTANCE OF 81.36 FEET;THENCE N1*55'45 E
A DISTANCE OF 18.02 FEET TO THE SOUTH LINE OF THE NORTH 330.13 FEET OF THE NORTHWEST
QUARTER OF THE NORTHWEST QUARTER OF SAID SECTION 8;THENCE N88*34'43 W,ALONG SAID
SOUTH LINE,A DISTANCE OF 62.00 FEET TO THE TRUE POINT OF BEGINNING; SUBJECT TO A NON-
EXCLUSIVE EASEMENT FOR INGRESS,EGRESS AND UTILITIES PURPOSES OVER,UNDER,ACROSS
AND THROUGH A STRIP OF LAND 35.0 FEET IN WIDTH,THE SOUTHWESTERLY AND WESTERLY
LINE OF WHICH IS DESCRIBED AS FOLLOWS: BEGINNING AT THE NORTHWEST CORNER OF THE
NORTHWEST QUARTER OF THE NORTHWEST QUARTER OF SAID SECTION 8;THENCE Sl*55'45 W,
ALONG THE WEST LINE OF SAID NORTHWEST QUARTER,A DISTANCE OF 742.50 FEET TO THE
NORTHWESTERLY RIGHT-OF-WAY MARGIN OF OLD CLIFTON ROAD;THENCE N42*51'37 E,ALONG
Quit Claim Deed Page 1 of 3
SAID RIGHT-OF-WAY MARGIN,A DISTANCE OF 306.20 FEET TO THE TRUE POINT OF BEGINNING OF
SAID DESCRIBED LINE;THENCE N47*08'23 W A DISTANCE OF 140.10 FEET TO THE BEGINNING OF A
95.00 FOOT RADIUS CURVE TO THE RIGHT;THENCE NORTHWESTERLY(CLOCKWISE)ALONG
SAIDCURVE,THROUGH A CENTRAL ANGLE OF 49*04'08 E,AN ARC DISTANCE OF 81.36 FEET;
THENCE N1*55'45 E A DISTANCE OF 18.02 FEET TO THE SOUTH LINE OF THE NORTH 330.13 FEET OF
THE NORTHWEST QUARTER OF THE NORTHWEST QUARTER OF SAID SECTION 8 AND THE
TERMINUS OF SAID DESCRIBED LINE;THE NORTHEASTERLY AND EASTERLY LINE OF SAID STRIP
SHALL BE PROLONGED OF SHORTENED,AS THE CASE MAY REQUIRE,TO INTERSECT THE
NORTHWESTERLY RIGHT-OF-WAY MARGIN OF OLD CLIFTON ROAD AND TO TERMINATE AT THE
SOUTH LINE OF THE NORTH 330.13 FEET OF THE NORTHWEST QUARTER OF THE NORTHWEST
QUARTER OF SAID SECTION 8.ATTACHED AS EXHIBIT F
DATED this day of , 20 .
THE CITY OF PORT ORCHARD, a municipal corporation
By:
Its: Mayor
Quit Claim Deed Page 2 of 3
ATTEST:
Port Orchard City Clerk
APPROVED AS TO FORM:
Attorney for Port Orchard
STATE OF WASHINGTON )
) ss.
COUNTY OF KITSAP )
I certify that I know or have satisfactory evidence that Mr. Rob Putaansuu is the person
who appeared before me, and said person acknowledged that he signed this instrument, on oath
stated that he was authorized to execute the instrument and acknowledged it as the Mayor of Port
Orchard to be the free and voluntary act of such party for the uses and purposes mentioned in the
instrument.
Dated: 20
(print or type name)
NOTARY PUBLIC in and for the
State of Washington, residing at:
My Commission expires:
Quit Claim Deed Page 3 of 3