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HomeMy WebLinkAbout3962 Contract Number: 3962 Vendor: ROCKY POINT WATER DISTRICT Subject: Water & Services Department: Water Resources File Class: LEG 12 -1 Begin Date: 10/22/1998 End Date: 10/21/2008 Review Date: 2/15/2012 Vault Date: 01/01/2012 Comments: New contract negotiated 5/20/2010 #4919 AMENDED CONTRACT FOR FURNISHING WATER AND SERVICES TO ROCKY POINT WATER DISTRICT BY THE CITY OF BREMERTON AGREEMENT 1. This ~greement is made and entered into this~..~__ day of ~~ , 1998, by and between the City of Brem~rton, a municipal corporation of the first class, hereinafter called "City" and Rocky Point Water District #12, a municipal corporation, heretofore known as Marine Drive Water District, and hereinafter called "District", W I T N E S S E T H: 2. WHEREAS, the Commissioners of what was then called Marine Drive Water District were authorized by a majority of electors residing within the district, at an election on the 29th day of January, 1952, pursuant to the Water District's Resolution #107, called to vote upon the question of conveyance of the said Water system, and has conveyed to the City of Bremerton said water distributing system, and 3. WHEREAS, the City by ordinance, has accepted a conveyance of the distribution system of the Marine Drive Water District and under the provisions of Remington's Revised Statutes, 11 .586-1, et seq., Session Laws of 1933 (now RCW 57.08.30 et seq.) and desires to modify the latest modification of the contract then entered into as last modified by Agreement dated 12 July 1960. Said contract being for the furnishing of water service to the residents and consumers in the District, and setting forth responsibilities of the City and the District for maintenance and repair of said Water system and the management thereof, and concerning future additions and betterments thereto, It is hereby AGREED as follows: It is recognized and agreed by the parties that the capacity of the District is as a representative of the water consumers within the District who shal 1 be AMENDED CONTR. 1 considered as being directly served by the City, and to whom the duty of service runs. 4. The City hereby agrees to furnish water service to the consumers of water in the District in the aggregate amount set forth in paragraph 14 so long as the City shall maintain a public water supply and distribution system. Provided, however, this obligation shall continue and be binding upon any successor or assigns of the City so long as there exists a water supply and distribution system to the end that there shall continue the supply of water to the District so long as such a system supplies consumers within the City of Bremerton. Should supply to the District from the City system cease, ownership of all of the mains, and installations, and water service appurtenances within the District Service Area shall revert to the ownership of the District. The rate of charge to water consumers for water service and for other services or charges for which the City may make charge to water consumers, shall be at the same rate as for residents of unincorporated Kitsap County. Water service shall be furnished to the consumers within the District through individual meters which shall be read by employees of the City and billings sent by the City and collections made by the City for and on account of the use of the water as measured through the individual meters. These meters are and shall remain the property of the City. These billing services shall include a surcharge in an amount to be determined from time to time by the District, which amount shall be the property of the District, and shall be remitted to the District on a monthly basis. This billing service shall be charged for by the City to the District at the rate of $1500.00 annually, pro-rated, bi monthly according to the current billing cycle applicable to the area, and shall be subject to annual adjustment in January by an amount equal to the change of Consumer Price Index, U. S. Department of Labor, all urban consumers for cities class West-C. Sums collected by the City for District surcharge, are to be transmitted to the District within 15 days after the month in which they are collected. Reports of the transactions will be furnished on request. Reports of customer delinquencies shall be made to the District on ANENDED CONTR. 2 a regular schedule at the time payment has become delinquent according to the City's standard delinquency date, In the event of damage to that portion of the water system or to it's appurtenances within the water District caused by third party action, the entity, City or District, discovering the damage shall, at the earliest opportunity, report to the other the fact of the damage. All information concerning the cause, nature of damage, identity of persons involved, information as to that person's insurance coverage if any, shall be reported and each shall cooperate to the end that cost of repair or replacement incurred by either entity shall be, to the extent possible, recovered from the person causing the damage and be shared pro-rata by the entities in proportion to the expenses incurred by the particular entity involved. If any part of the Water District is annexed to the City, the City shall either pay that portion of the then outstanding bonded indebtedness, net of any bond reserves represented by the proportion of debt service rev~que derived from the annexed area, or pay through the District's Fiscal Officer by the due date of debt service payments a sum equal to that proportion of the debt service then due. This to continue until each of the particular bond issues shall have been paid in full. Debt service secured by assessments or annual levies such as Local Improvement District type assessments, General Obligation type levies or similar security devices shall continue after annexation to be collected by District. 5, The City shall perform all operation and maintenance services. The City shall provide certified operators as required by State law. The City's function shall include the establishment and monitoring, testing, and enforcement of cross connection control requirements. Water furnished to the individual consumer meter shall meet the standards established from time-to-time by such agencies as may have cognizance as to purity, quantity and pressure or as provided to "In City" customers similarly situated. All required sampling and measuring of water shall be performed by the City according to schedules and AMENDED CONTR. 3 requirements of the particular cognizant agencies. The District shall pay for costs incurred to take the required samples. The cost referred to shall be laboratory analysis fees as charged and the average labor cost of taking a sample applicable to the entire sampling cost for distributed water within the City of Bremerton. The City shall report to the District any deficiencies found and make any consumer notifications, as required by State and Federal Drinking water regulations. The parties recognize that the City has a responsibility for service of water meeting proper standards of quality, quantity, and pressure to customers within the District and to remedy deficiencies therein. It is therefore agreed that the District shall be entitled, as to complaints of deficiencies in this regard which come to it's attention, to bring them to the City's attention and receive reports of investigations made and actions taken, and to require remedy thereof. This function of the District shall not be deemed to reduce or change the direct obligation of the City to the water customers to provide water and water service according to the above standards, 6. (a) The District may, at it's own cost, make any additions, extensions or improvements, including upgrading a main to a larger size or installing a new hydrant, the making of any betterments to the system, which upon installation shall become the property of the City and be maintained by City at no additional cost to the District or its water users. This section shall not apply to water meters, which shall be installed by the City upon approval of the connection by the District, shall remain the property of the City, and shall be billed directly to the District's water users according to rates under Section 10. (b) A repair shall include work on existing mains. Replacement of a main shall be appropriate if an existing main is in an advanced state of deterioration such that it is more economical to replace a segment of water main than to continue repairs. (c) When the City determines that replacement rather than repair is necessary to maintain the operability of the system, the District shall furnish the materials to the AMENDED CONTR. 4 City and the City will perform the necessary work without additional cost to the District. (d) The City agrees to maintain and repair said system or any additions, upgrades or extensions thereof, made in the manner herein provided without additional charge to the District or the water users therein. Maintenance and repair shall be deemed to include the maintaining of the system and its appurtenances in good operating condition, including any standards subsequently established by cognizant agencies. 7. The foregoing not withstanding, the City shall be entitled for new water connections to make a charge to the customer for the cost of meter and its installation in accordance with the rate charged County customers. The Water District may establish and charge a front footage fee, to be collected by the District prior to connection on those mains which have been installed at District expense which includes all mains and distribution lines now in existence, and those hereafter installed at District expense or at property owner expense under contract with the District. The City, upon making new connection, shall be entitled to charge the water customer a general facilities fee to defray portions of the cost of the facilities for production and water storage. This fee shall be in accordance with fee for residents of the County. Authority for the connection of new customers to the District's system shall be established in the following manner: The City will supply the potential customer with a system status letter for a specific location. The new customer applications shall then be made to the District which shall determine the feasibility of, and the terms and conditions under which the connection shall be made. An authorization to connect, together with the terms and conditions thereof, shall be communicated to the City in writing, whereupon the City shall make the connections, and collect from the applicant those City fees and charges. 8. Fire hydrants, both existing and future installations, are to be served, maintained, and repaired as a part of the system, and at no additional charge to the District or its customers. AMENDED CONTR. 5 The making of extensions, additions, upgrades and improvements to the system will be planned for, designed and installed by the District at its expense, and in connection therewith it shall use the services of licensed professional engineers for the planning and design phases. Copies of plans so prepared shall be submitted to the City and shall be deemed approved within thirty (30) days unless specific written objection to an element thereof is received within that period. All specifications and work performed shall be in accordance with the Standards of the City of Bremerton promulgated for such work. The City shall have the right to observe and inspect work in progress to assure compliance with City standards. 9. Fire hydrants hereafter established on the mains shall be of a type approved by the City provided this type is in accordance with then current standards. 10. The service of water to the District, the installation of meters and the rates to be charged for service, and all other work or services to be furnished or performed by the City for the District, shall be subject to the rules and regulations and/or ordinances now in effect or as the same may, from time to time, be amended or enacted, and where in this agreement no specific mention is made of any particular service or charge, such shall likewise be governed by such rules and regulations and/or ordinances existing or later enacted during the term of this agreement. No such ordinance or regulation shall amend or contradict the terms of this Agreement except as such ordinance or regulation is required by Sate or Federal law. 11. Any funds, or other assets of the District, acquired by the City of Bremerton as a result of the annexation 0¢ a part or of the whole of the District, shall be placed in a special fund by the City of Bremerton and shall be used by the City for the maintenance and betterment of the water system within the area annexed; provided that this provision shall not relieve the City of debt service obligations provided for elsewhere herein. 12. Disputes or questions over interpretation or application of this Agreement arising between the parties to the AMENDED CONTR. 6 Agreement shall be settled by the Commissioners of the District and the proper elected or appointed officials of the City as designated by it in writing. If the designated officials are unable to resolve these differences, then they shall be resolved using the Kitsap County Superior Court Arbitration Rules (MAR). 13. The District shall not in turn sell water to or provide any interconnection with any entity outside the district boundaries. The district boundaries are described with legal description and map in Attachment "A". 14. The average metered daily demand by the District shall not exceed 0.160 million gallons per day through the year 2012. For calculations and projections, see Attachment "B". Provided, that at the time either party renews it's comprehensive plan, similar projections based upon then existing data and the projections therefrom will be applicable for the ensuing life of this agreement. Should a water supply shortage arise necessitating rationing of city customers, the same rationing shall be applied pro rata for district customers. 15. The term of this agreement shall not exceed 10 years within which time the agreement will be reviewed and amended as appropriate. Section 4 of this Agreement shall be substantially incorporated in any extension of this agreement unless there is mutual agreement to the contrary or State legislation is passed affecting the interest and responsibilities established in RCW 57.80.30 et seq. between the District, City and water users within the District. Reasonable amendments requested for contract renewal shall be negotiated in good faith. Nowever, if these negotiations fail to produce agreement on a contract extension, either party may seek a ruling on the proposed amendments under section 12 of this Agreement. In determining the reasonableness of amendments, the arbitrator or judge shall consider regulatory changes affecting water utilities, the history of agreement between the parties, the parties respective legislative powers and the underlying purposes of the relationship established under ROW 57.80.30 et seq. Terms of this agreement shall continue in effect until amended under this section. AMENDED CONTR. 7 IN WITNESS WHEREOF, the parties hereto have caused this Agreement to be signed and sealed this~ day of w~j~jM3 1998, by its duly authorized officials. CITY OF BREMERTON ROCKY POINT WATER DISTRICT 12 · HORTON, Mayor DEPARTMENT APPROVAL: ~-~~~ W. E~ Director of Public Works & Utilities APPP~OVED AS TO FORM: ~N~A(~ALANC~', City Attorney ROCKYPOINT. AGT- AGREEMENTS 9/22/98 ~60478~018~-~REMERTON PW & UTIL. -- O~B PO~ OCT 06 ROCKY IOINT WATER DISTRICT PROJECTED ~ WATER DEMANDS ROCKY POINT WATER DISTRICT I,nTORICAL WATER USE YEAR POPULATION CONNECTIONS MOD GAt2CAPfTA AC'I~JAI, (ntu~o~ mu2~ nscoa~: 1994 1,748 530 0.133 76 PROJECTED 0o'rs~cou~r~ 2000 i,755 533 0.133 76 2012 I,[6~ S78 O. 142 76 PROPOSED AVERAGE DAY ~ LIMIT FOB. TH~ ROCKY POINT CONTRACT: PROJECTED DI!M.a, ND IN 2012 + !0~ = 0.1~0 MGD