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HomeMy WebLinkAbout3331RESOLUTION NO.3331 A RESOLUTION of the City Council of the City of Bremerton, Washington, acknowledging the expiration of the Water Service Agreement with the Rocky Point Water District No. 12, and authorizing the City to provide water service to new customers in Rocky Point. WHEREAS, the City and Rocicy Point Water District #12 (District) executed the "Agreement for Furnishing Water and Services to Rocky Point Water District by the City of Bremerton" (Agreement) on May 20, 2010; and WHEREAS, on March 16, 2020 the Washington State Department of Health (DOH) reconsidered the status of the District, and established August 31, 2020 as the date to incorporate the District's service area into the City's service area under Chapter 246-290 WAC; and WHEREAS, on August 31, 2020 the Rocky Point Water S, sx tem ceased to exist, and its service area was fully incorporated into the City's service area; and WHEREAS, while the Rocky Point Water System no longer exists, the Rocky Point Water District is a separate legal entity that must be dissolved under a separate procedure by Kitsap County; and WHEREAS, Section 2 of the Agreement includes financial obligations of both the City and the District related to surcharge fees and annual billing that should remain in place until the formal dissolution of the District; and WHEREAS, paragraph 7(h) of the Agreement established an expiration date of June 30, 2015 unless reviewed and extended by the parties; and WHEREAS, the City has made numerous unsuccessful attempts to communicate with the District since at least 2014 to update the Agreement; and WHEREAS, paragraph 5(b) and 5(e) of the Agreement require potential customers requesting new water connections to pay the District a front footage fee and obtain a written Authorization to Connect from the District before the City may collect fees and charges and connect the new customer to the Water System; and WHEREAS, potential customers in the Rocky Point area are unable to pay the front footage fee to the District and obtain the Authorization to Connect since the District is effectively non-existent resulting in the inability of the City to sell water service; and Expiration of City /Rocky Point Water Service Agreement —Resolution WHEREAS, the former Rocky Point Water System is now part of City Water System and the City desires to provide potential new customers water service within the former Rocky Point Service area; now therefore THE CITY COUNCIL OF THE CITY OF BREMERTON, WASHINGTON, DOES HEREBY RESOLVE AS FOLLOWS. SECTION 1. The findings set forth in the recitals above are hereby adopted. SECTION2. The Agreement between the City and the Rocky Point Water District No. 12 dated May 20, 2010 is expired. SECTION 3. The City will continue to abide by the provisions of the expired Agreement with the exception of Section 5 New Water Connections. New potential customers within the former District service area will be served using the same terms and conditions as other Kitsap County residents outside the City limits served by the City water system with the exception of a requirement to execute the indemnification agreement attached as Exhibit A. The purpose of the indemnification agreement is to ensure the City does not become liable for any costs (front footage fees or other) that may be determined during the dissolution of the District. SECTION4. The Director of Public Works &Utilities, or designee, is authorized to establish procedures necessary to provide water service to customers within the former Rocky Point Water System service area. SECTION S. Severability. If any one or more sections, subsections, or sentences of this Resolution are new to be unconstitutional or invalid, such decision shall not affect the validity of the remaining portion of this Resolution and the same shall remain in full force and effect. SECTION 6. Effective Date. This Resolution shall take effect and be in force immediately upon its passage. PASSED by the City Council of the City of APPROVED AS TO FORM: Washington this ERIC YOUI'QGER,�'ouncil President ATTEST: ROGER A. LUBOVICH, City Attorney ANGEL�OOVER, City Clerk Expiration of City /Rocky Point Water Service Agreement — Resolution Rocky Point New Water Customer Indemnification and Acknowledgment of Conditions Purpose: This form must be filled out and submitted prior to the City of Bremerton (City) provng a new water connection to customers located within the Rocky Point Water District No. 12. This indemnification is signed this day of , 20_, by , the owner (hereinafter Owner) of Parcel No. , (hereinafter Parcel) located in within the Rocky Point Water District No. 12. • The Owner agrees to indemnify and hold harmless the City for any claims made for, or damages resulting from the City providing a new water connection to the Parcel which are not caused by the City's negligence. • This indemnification includes any claims for a front footage fee by the Rocky Point Water District No. 12 or any other entity. • Upon a claim for a front footage fee or any other connection fee by any other entity, including the Rocky Point Water District No. 12, the Owner shall be responsible to pay said fee and shall immediately pay said fee upon demand. The Owner or Owner's Representative has fully read this Indemnification and Acknowledgment of Conditions and understands, acknowledges, and agrees to the above conditions by signing below. Owner/Owner's Representative's Signature: Owner/Owner's Representative's Printed Name: September 2020