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4065
TRACYTON WATER DISTRICT
Assumption - Rights/Powers/Duties & Transfer Assets
Engineering
LEG 12-1
02/29/2000
10/1/2021
Effective until completion & Loans Repaid
PW 99-691-PRE-114 & DWSRF 00-65120-033
Return Address. Atin City Clerk
City of Bremerton
239 Fourth Street
Bremerton, WA 98337
05 24
1of3
621 665 9P
BREMERTON CITY OF MR 1 Kits p Co, WR
AUDITOR/RECORDER'S INDEXING F
Document Title(s): 1 Memorandum of Amendment to Interl n
Reference Number(s) of Documents assigned or released: Am n 2004031
Grantor(s): 1. Tracyton Water District
❑ Additional names on page of doc Lt
Grantee(s): 1 City of Bremerton
❑ Additional names on page ument
Legmi motion: N/A
(abbreviated)
❑ Additional legal is on page f t
Assessor's Property Tax PareeMceouni /
MEMORANDUM NT TO MERLOCAL AGREEMENT
0
This "Me ent to Interlocal Agreement" is entered into on the date
fully executed o , b d n the City of Bremerton, a Washington municipal corporation
(hereinafter a to "Ci } and Tracyton Water District (hereinafter referred to as
"District ").
Th 'c ity entered into an agreement entitled "Amendment to Interlocal
Agreeme Betw n the City of Bremerton and Tracyton Water District' on
F , , to clarify and finalize details of the closing of the transaction
con certam agreement entitled " Interlocal Agreement Between the City of
B erto Tracyton Water Distnct for Assumption of Rights, Powers, Duties, Obligations
afiq ransfer Assets of Water Distnct" entered into on March 5, 2004, for which a
um of interlocal agreement was recorded under Kitsap Auditor's No. 200403190002.
RAND OF AMENDMENT TO WMRLOCAL AGREEMENT - 1
IN WITNESS WHEREOF, the parties have executed this Memorandum of Amendment
to Interlocal Agreement.
CITY OF BREMERTO TRACYT ZWAT7
B y' By
Print Name tary Bozeman Print Nam : t Pr
Its: Mayor Its:
DATE: i • ! U • O FS
STATE OF WASHINGTON )
. ss.
COUNTY OF KITSAP )
I hereby certify that I know or have satisfacto n t Cary Bozeman is the person
who appeared before me, and said person acknowledg signed this instrument, on oath
stated that he is authorized to execute ment on behalf of the City of Bremerton as its
Mayor, and such execution to be the free and tary act of such party for the uses and purposes
mentioned in the foregoing instrument.
wary T-
IN WITNESS WI�,R 1 v h un t my hand and official seat ttus 1 day of
,16@4 -- 2
0
Y PUBLIC, to and for the State
o ashington, restdmg at fy►P_ma�.� �wA
y appointment exp v '�Q_7
O 'S NOTE
NOT AFFIXED
RANDUM OF AMENDMENT TO INTERLOCAL AGREEMENT - 2
1 200502010324
` I Page R of 3
1
I� 92/91/i'.885 02 39
BREMERTON CITY OF MR b21 6@ Kttsap Co, A
i
STATE OF WASHINGTON }
ss.
COUNTY OF KITSAP )
I hereby certify that I know or have satisfactory evidence that
is the person who appeared before me, and said person acknowledged h this
instrument, on oath stated that he/she is authorized to execute the ins beh the
Tracyton Water District as its _ Qea►rra rs _, and suc tion the and
voluntary act of such party for the uses and purposes mentioned m the ing i ent.
Notary Seal Must Appear Withue lhss Box -
TNESS WHEREOF, I havS.4reunto set my an cial se is_iay of
W , 2004
• NOTARY PUBLIC, i for the S
of Washington, residing A&
My appom t expires
i • wr` _ a � '��
APB AS TO FORM:
R R A. LUBOVICH, C' Atto
RILSGAL7dC8%C%uren a 1T W ctlMemorandum of Arnendment to Agreementdoc
ME RANDUM OF AMENDMENT TO INTERLOCAL AGREEMENT - 3
200502010324
Page 3 of 3
62AI12NS 62 39P
BREMERTON CITY OF MR 91 0@ Kitsap Co, lA
Interlocal Agreement Between
the City of Bremerton
and Tracy ton Water District
for Assumption of Rights, Powers, Duties, Obligations and
Transfer of Assets of Water District
TABLE OF CONTENTS
Recitals............................................................................................................................. ... I
Prior agreements. ................................................................................................................. 3
Assumption of Operations. .................................................................................................. 3
Assumption of Loans. ......................................................................................................... 3
Transfer of Assets................................................................................................................ 3
Phase 2 Improvements......................................................................................................... 4
Loan Payments. .................................................................................................................. 4
Dissolution of District. ....................................................................................................... 4
District Service Area. .......................................................................................................... 5
Customer Rates. .................................................................................................................. 5
Front Footage Fees - Discount............................................................................................5
All Other Fees and Charges.................................................................................................5
Rates, Fees and Charges - Effect of Annexation. ............................................................... 5
Indemnification. .................................................................................................................. 5
Full Satisfaction................................................................................................................... 6
Entire Agreement. ............................................................................................................... 6
Amendments........................................................................................................................ 6
Notices. ................................................................................................................................ 6
Venue................................................................................................................................... 6
Order of Precedence. ........................................................................................................... 6
Successors and Assigns. ...................................................................................................... 7
Severability. ......................................................................................................................... 7
Condition of approval.......................................................................................................... 7
Memorandum of Agreement - Recorded. ........................................................................... 7
Water System Transfer. ....................................................................................................... 7
Agreement to Cooperate. ..................................................................................................... 7
Duplicate Originals.............................................................................................................. 7
EXHIBITS
EXHIBIT A .......................................................... June 29, 1966 Water Service Agreement
EXHIBIT B ............................................................ February 29, 2000 Interlocal Agreement
EXHIBIT C ................................................................. April 30, 2001 Interlocal Agreement
EXHIBIT D ............................................... April 30, 2001 Memorandum of Understanding
EXHIBIT E ...................................................................................... PWTF Loan Agreement
EXHIBIT F ................................................................................... DWSRF Loan Agreement
EXHIBIT G ............................................................................ Watershed Legal Description
EXHIBIT H ................................................................................................. Retained Assets
EXHIBIT I ............................................................................ Form Statutory Warranty Deed
EXHIBIT J ..................................................................................... Service Area Description
EXHIBIT K .................................................... Form Memorandum of Interlocal Agreement
ii
INTERLOCAL AGREEMENT
BETWEEN THE CITY OF BREMERTON
AND TRACYTON WATER DISTRICT
FOR ASSUMPTION OF RIGHTS, POWERS, DUTIES, OBLIGATIONS
AND TRANSFER OF ASSETS OF WATER DISTRICT
This Agreement is made and entered into pursuant to Chapter 39.33 RCW, the
Intergovernmental Disposition of Property Act and Chapter 39.34, RCW the Interlocal
Cooperation Act as of the date fully executed below, by and between the CITY OF
BREMERTON, a municipal corporation of the state of Washington, (hereinafter "CITY")
and TRACYTON WATER DISTRICT, a municipal corporation of the state of
Washington, (hereinafter "DISTRICT"), together referred to as the "PARTIES".
RECITALS
A. The CITY and the DISTRICT, by Agreement dated June 29, 1966, attached
hereto as Exhibit "A' recorded under Kitsap County Auditor's No. 899819, Vo. 884 Page
843 and incorporated herein by this reference, (hereinafter "Service Agreement"), agreed to
allocate duties and responsibilities in the providing of water services to customers within the
DISTRICT's water service area. In summary, pursuant to the Service Agreement, the CITY
agreed to provide all water, assume ownership of all of the water distribution system of the
Tracyton Water District situated within its service area including the piping, appurtenances,
related water distribution equipment, improvements and facilities (hereinafter "Facilities"),
and provide maintenance and billing services to the customers of the DISTRICT, and the
DISTRICT agreed to approve all water hookups, set front foot assessment fees, determine
water availability within the DISTRICT, and generally represent the water supply issues and
interests of its customers.
B. The CITY and the DISTRICT entered into an intertocal agreement pursuant to
Chapter 39.34 RCW dated February 29, 2000, attached hereto as Exhibit "B" recorded under
Kitsap County Auditor's No. 3241384 and incorporated herein by this reference, for the
design, construction and financing of upgrades to the Facilities in anticipation of dissolution
of the DISTRICT. Pursuant to said agreement, the DISTRICT is obligated for all costs of the
upgrades, including, but not limited to: administration, design, procurement, construction,
inspection, and securing financing, including bond counsel fees, if any.
C. It was necessary for the PARTIES to establish the method by which costs of
construction inspection, and administration of the upgrades to the Facilities was to be
financed.
D. The CITY and the DISTRICT entered into an interlocal agreement pursuant to
Chapter 39.34 RCW dated April 30, 2001 attached hereto as Exhibit "C" and incoq3orated
herein by this reference, regarding financing the design and construction of upgrades to the
Facilities.
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E. The CITY and the DISTRICT entered into a Memorandum of Understanding
April 30, 2001 attached hereto as Exhibit "D" and incorporated herein by this reference,
clarifying the understanding that the DISTRICT's responsibility for watermain replacement is
identified on Exhibit "A" of the February 29, 2000 Interlocal Agreement as "Initial District
Watermain Replacemem Projects", Project ID numbers 01 through 21 inclusive (Phase 1 or
DISTRICT Projects), and the CITY's responsibility for water main replacement is identified
as "Future City Substandard Watermain Upgrades", Project ID numbers F1 through F8
inclusive (Phase 2 or CITY Projects).
F. The DISTRICT, with the assistance of the CITY, secured a Public Works
Trust Fund (PWTF) loan pursuant to a loan agreement and amendment 1 thereto, with a
twenty (20) year term for the design of upgrades to the Facilities in the amount of
$197,000.00, said agreement and amendment attached hereto as Exhibit "E" and
incorporated herein by this reference, and a Drinking Water State Revolving Fund (DWSRF)
loan pursuant to a loan agreement with a 20-year term for the capital construction of Phase 1
and Phase 2 upgrades to the Facilities in the amount of $3,008,490.00, attached hereto as
Exhibit "F" and incorporated herein by this reference. The PWTF loans and the Phase 1
portion of the DWSRF loan are repaid by a surcharge on water rates initiated by the
DISTRICT on January 1, 2003 in the amount of $15.91/month which the CITY collects from
DISTRICT water customers.
G. The DISTRICT is the owner of certain real property consisting of
approximately 39 acres formerly part of its reservoir watershed ("Property") located in Kitsap
County, Washington, known as Kitsap County Assessor's Tax Parcel No. 022401-2-003-
2008, more particularly described in Exhibit "G", attached hereto and incorporated herein by
this reference. The Property has an appraised value of $721,000 for the land and $280,000
for the harvestable timber for a total appraised value of $1,001,000.
H. The DISTRICT is also the owner of certain water system Facilities which have
not been conveyed to the CITY as other such Facilities pursuant to the Service Agreement,
the lnterlocal Agreements and the Memorandum of Understanding noted above.
I. Pursuant to RCW 35.13A.070, Chapter 39.33 RCW, the Intergovernmental
Disposition of Property Act, and Chapter 39.34 RCW, the Interlocal Cooperation Act, a city
and a water district may contract for the transfer of water district assets to the city and the
city's assumption of all rights, duties, powers and obligations of the water district.
J. The DISTRICT agrees to convey and deed to the CITY all its interest in
DISTRICT assets including title to the Property set forth in Exhibit "G" and all Facilities
and assets of the DISTRICT except for those assets set forth in Exhibit "H" attached hereto
and incorporated herein by this reference, and the CITY agrees to assume all rights, powers
and duties related to the ownership, management and operation of the water distribution
systems, and to assume the loan obligations of the DISTRICT as set forth in paragraph 4.
-2-
K. The DISTRICT intends to dissolve the Tracyton Water District on a date
subsequent to the transfer of assets to the CITY and the CITY's assumption of all fights,
duties, powers and obligations of the DISTRICT as set forth herein.
L. A hearing was held by the DISTRICT pursuant to Chapter 39.33 RCW, the
lntergoverrkmental Disposition of Property Act on November 10, 2003.
M. This agreement was approved by the Bremerton City Council on January 27,
2004 and the Tracyton Water District Board of Commissioners on 'J~.b~'qa.~) ~}, 2004.
AGREEMENT
NOW, THEREFORE, for a good and valuable consideration, the receipt and
sufficiency of which are hereby acknowledged, the PARTIES agree as follows:
1. Recitals. The above recitals are incorporated as if set forth herein in full.
2. Prior agreements. The terms and conditions of the interlocal agreements
between the PARTIES dated February 29, 2000 and April 30, 2001 and the Memorandum of
Understanding dated April 30, 2001, (collectively "Agreements"), remain in effect except to
the extent such may be amended herein. Said Agreements are incorporated herein by this
reference.
3. Assumption of Operations. The CITY hereby agrees to assume all rights,
powers and duties of the DISTRICT as authorized by law related to the ownership,
management and operation of water distribution systems and the providing of water to water
customers of the DISTRICT.
4. Assumption of Loans. The CITY hereby agrees to assume the loan
obligations of the DISTRICT as of the effective date of this agreement consisting of two
loans as provided for in the Agreements, namely 1) the Public Works Trust Fund loan for the
design of certain upgrades to the water system with a current balance of approximately
$168,425.81 plus accrued interest, and 2) the Drinking Water State Revolving Fund loan for
the capital construction of certain upgrades to the water system with a current balance of
approximately $1,720,522.15 plus accrued interest. Following execution of this agreement,
the PARTIES will work together to effectuate assumption of the loans with the holder of the
same. The CITY agrees to assume the loan obligations upon execution of this agreement, as
provided herein, whether or not such loans are formally assumed. No other liabilities or
obligations of the DISTRICT are assumed by the CITY except as specifically provided in this
agreement.
5. Transfer of Assets. In exchange for the assumption of fights, duties, powers
and obligations of the DISTRICT including loan obligations by the CITY, the DISTRICT
hereby agrees to transfer and convey to the CITY all its interest in DISTRICT assets as
follows:
-3-
a) The Property described in Exhibit "G" by statutory warranty deed to
be executed concurrently with this agreement in substantially the same form as
attached hereto as Exhibit "I". The DISTRICT will procure owners title insurance
for the benefit of the CITY to insure good and clear title to the Property for a minimal
level of coverage in a form and amount subject to the approval of the CITY.
b) All of the Facilities and assets, except for those more particularly
described in Exhibit "H", which conveyance will be effective upon execution of this
agreement which shall constitute a bill of sale for said Facilities. However, any
DISTRICT cash and the balance of funds remaining in the financial accounts
identified in Exhibit "It" remaining in existence on the date of formal dissolution of
the DISTRICT will be conveyed to the CITY on the date of formal dissolution or as
soon as practical thereafter.
6. Phase 2 Improvements. The CITY wilI use its best efforts to complete Phase
2 improvements by December 31, 2005.
7. Loan Payments. The DISTRICT has been repaying its loans from the Public
Works Trust Fund and the Drinking Water State Revolving Fund from water surcharges
levied on DISTRICT customers as noted above. These surcharges are being levied by the
DISTRICT for Phase 1 upgrades until such time as the DISTRICT is dissolved. After
DISTRICT dissolution hereof, the CITY will continue to levy said surcharges of
$15.91/month for Phase 1 upgrades and make loan payments to the Public Works Trust Fund
and the Drinking Water State Revolving Fund until such time as the Phase i amount of the
loans are repaid. As consideration for the conveyance of the Property by the DISTRICT to
the CITY, the CITY will offset the outstanding loan to the credit of the Phase 1 loan amount
by the amount of $1,001,000, the appraised value of the Property, leaving a total loan balance
of approximately $890,566 as the balance to be repaid by water rate surcharges for the Public
Works Trust Fund and the Drinking Water State Revolving Fund loans. It is the intent of the
DISTRICT and CITY that after the credit from the Property is applied against the two loan
balances owing, the two loans will continue to be paid for the remainder of their respective
20 year periods, and the current surcharge of $15.91/month paid by Tracyton's customers will
be reduced by an amount estimated to be approximately $7.80/month, assuming a closing of
this transaction by October 1, 2003. The estimated reduction of surcharge will be adjusted
based on the date of the actual closing.
8. Dissolution of District. The DISTRICT further agrees to dissolve the
Tracyton Water District following the transfer of assets to the CITY and the CITY'S
assumption of rights, duties, powers and obligations of the DISTRICT in the water
distribution system. Provided, however, that the DISTRICT may defer the date of its
dissolution and remain in existence in a limited capacity until it is satisfied that the CITY's
obligations hereunder have been or will be met.
-4-
9. District Service Area. The service area of the DISTRICT for purposes of
this agreement is set forth in Exhibit "J" attached hereto and made a part hereof by this
reference.
10. Customer Rates. The monthly rate formula for customers within the
DISTRICT service area following dissolution of the DISTRICT shall be equal to the rates
charged city residents (100%) plus the monthly surcharge to meet the debt service
requirements of the DISTRICT loans. At such time as the DISTRICT loans are fully repaid,
the surcharge shall be removed and water customers shall be charged rates as county
residents (150%).
11. Front Footage Fees - Discount. It is agreed that Front Footage Fees, (FFF),
within the DISTRICT service area will be equal to those charged to CITY's customers in
unincorporated Kitsap County. During calendar year 2001, the FFF was discounted 100% for
existing users to the water system improvements. On January 1 of each year thereafter, the
FFF discount will be reduced by five percent (5%) until such time as the DISTRICT FFF
shall be equal to the fee charged customers in unincorporated Kitsap County. As an example,
the 100% FFF discount for calendar year 2001 is reduced by 5% each succeeding calendar
year for a 95% FFF discount for calendar year 2002 and 90% for calendar year 2003 and the
discount will continue to be reduced until it is eliminated. For each year that the FFF is
collected, the amount collected shall be credited to the outstanding loan debt applicable to the
surcharge and the surcharge shall be recalculated accordingly. The CITY will honor this
reduction following closing of this agreement.
12. All Other Fees and Charges. All other fees and charges shall be equal to
those charged by the CITY to its customers in unincorporated Kitsap County.
13. Rates, Fees and Charges - Effect of Annexation. In the event that property
or customers within the district service area are annexed into the CITY, such property or
customers shall be subject to the same CITY rates, fees and charges as all other CITY
residents, except for the surcharge set forth in Section 7, which shall remain in effect as
provided in said section. Properties served by the District prior to dissolution of the District
shall be considered customers of the CITY at the time of dissolution. Prior to dissolution, the
provisions of BMC 15.02.040, SERVICE BEYOND CITY LIMITS, shall not apply to such
existing service. However, BMC 15.02.040 shall apply to all properties requesting utility
service from the CITY after the effective date of dissolution.
14. Indemnification and Insurance. CITY hereby releases, indemnifies, and
promises to protect, defend, and save harmless DISTRICT from and against any and all
liability, loss, damage, expense, action, and claim, including any and all claims on any
obligations not specifically assumed by the City pursuant to this agreement, including costs
and reasonable attorneys' fees incurred by DISTRICT in defense thereof, asserting or arising
directly or indirectly on account of or out of any acts or omissions of CITY or CITY's
servants, agents, employees, or contractors in its operations and performance of the Water
System pursuant to the Agreements. DISTRICT hereby releases, indemnifies, and promises
-5-
to protect, defend, and save harmless CITY from and against any and all liability, toss,
damage, expense, action, and claim, including costs and reasonable attorneys' fees incurred
by CITY in defense thereof, asserting or arising directly or indirectly on account of or out of
any acts or omissions of DISTRICT or DISTRICT's servants, agents, employees, or
contractors in its operations and performance of the Water System pursuant to the
Agreements. Any judgqnents and costs of defense resulting from the acts or omissions of
DISTRICT or DISTRICT's servants, agents, employees, or contractors in its operations and
performance of the Water System pursuant to the Agreements which carmot be recovered due
to the dissolution of the DISTRICT, may be recovered by a surcharge to the water customers
of the DISTRICT prior to the effective date of this agreement. Prior to assessing a surcharge
to cover such liability, the CITY will seek recovery from any available insurance policies, if
any, known to exist which may provide coverage, thereafter, any amount not so recovered
may be assessed by a surcharge. The DISTRICT intends to procure tail liability insurance to
cover its liability exposure. The parties will work together to assign the beneficial interests
of such insurance, if any, to the CITY upon dissolution of the DISTRICT._This section shall
survive closing of this agreement.
15. Full Satisfaction. Except as provided in Section 14, the execution and
delivery of this Agreement and DISTRICT's performance of its obligations hereunder shall,
upon dissolution, constitute full and final satisfaction of its obligations to the CITY pursuant
to the Agreements.
16. Entire Agreement. This Agreement constitutes the entire agreement between
the parties and both parties acknowledge that, excepting the Service Agreement, there are no
other agreements, written or oral, that have not been included by reference in this Agreement.
17. Amendments. The parties hereby further agree that this Agreement cannot be
amended or modified without the written concurrence of both parties.
18. Notices. Any notices required to be given by CITY to DISTRICT or by
DISTRICT to the CITY shall be in writing and delivered to the parties at the following
addresses:
City of Bremerton Tracyton Water District
Department of Public Works and Utilities P.O. Box 2013
3027 Olympus Drive Silverdale, Washington 98383
Bremerton, Washington 98310
19. Venue. This Agreement shall be constructed and interpreted in accordance
with the laws of the State of Washington.
20. Order of Precedence. In the event of an inconsistency in this Agreement,
unless otherwise provided herein, the inconsistency shall be resolved by giving precedence in
the following order:
(a) Applicable State statutes and regulations;
-6-
(b) This Agreement, including any other express provisions of this
Agreement whether incorporated by reference or otherwise;
(c) The Memorandum of Understanding between the PARTIES dated
April 30, 2001;
(d) The interlocal agreement between the PARTIES dated April 30, 2001;
(e) The interlocal agreement between the PARTIES dated February 29,
2000; and
(f) The Service Agreement dated June 29, 1966.
21. Successors and Assigns. The rights and obligations of the DISTRICT and
the CITY shall inure to the benefit of, and be binding upon, their successors and assigns.
22. Severability. If any section of this Agreement is adjudicated to be invalid,
such action shall not affect the validity of any section not so adjudged.
23. Condition of approval. This agreement is conditioned and subject to the
approval of the governing body of both parties.
24. Memorandum of Agreement - Recorded. A memorandum of this lnterlocal
Agreement shall be recorded in the Kitsap County Auditor's Office along with related deed(s)
following execution of this Agreement in substantially the same form as attached hereto as
Exhibit "K" attached hereto and incorporated herein by this reference.
25. Water System Transfer. Pursuant to WAC 246-290-035(2)(a), the owner of
a public water system shall provide one year notice to the Department of Health prior to the
transfer unless the new owner agrees to an earlier date. The CITY, as the proposed new
owner, agrees to an earlier date of transfer for the purpose of this provision.
26. Agreement to Cooperate. It is agreed hereto by the parties that the parties
will cooperate and work together following upon execution of this agreement and any time
subsequently thereafter to finalize and execute any and all documents that may by necessary
to complete the transactions contemplated herein.
27. Duplicate Originals. This Agreement is executed in duplicate originals.
This Agreement approved and entered into by the undersigned parties on the date
fully executed as follows.
Y~ A~
CIT ~,RA((~YTONAV STRICT
CARY BOZE~v'IAN, Mayor GARY KF~N~/N,~_mmi~.ioner
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TIM KNAPP, Commissioner
///'LEEXWI~TERQ~D,~C ;mmissioner
DATED ~./,~/,'~ ,~._/
APPROVED AS TO FORM:
ATT,~//~ff~ ATTEST:
PJ["UL~YOH~TON, Interim City Clerk , Secretary
R \LEGAL~Files/Cun ent Active File~\Tr aeyt on Water District\Tracyton lnterlocal Final doc
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AGREEMENT ~i~'~'~
COMES NOW TRACYTON WATER DISTRICT, a municipal corporation
of the State of Washington, throuEh its duly elected, qualified
and acting Board of Water Commissioners, hereinafter called
"Tracyton", and the City of Bremerton, a city 6f the first class of
the State of Washington, through its duly elected, qualified and
acting City Council, hereinafter called "Bremerton", and
WHEREAS Tracyton has a present and continuing water
emergency by reason of insufficient supply and at times inadequate
quality of water~ together with an increased burden of servicing,
maintenance, accounting and billing, and
WHEREAS Bremerton has a surplus of potable water in close
proximity to Tracyton, in addition to tlhe presently contracted
supply, requiring a minimum expenditure to serve Tracyton with an
increased supply, and has operating, maintenance and accounting
personnel and equipment and procedures to readily serve Tracyton's
needs, and
WHEREAS the parties hereto are desirous and intend by
this agreement to provide interim emergency assistance to Tracyton
by supplying increased amounts of potable water to Tracyton
through an eight inch main and pressure reducing station, supply to
Tracyton meter reading and~billing service through Bremerton'$
existing water department equipment and personnel, and maintain
and service, at rates herein set forth, and in addition, when
Tracyton requests, extend Tracyton's mains and laterals at
Tracyton;s cost, all until an election by electors of Tracyton
to be held at the September primary or November general election,
1966, under authority of R.C.W. 57.08.020 and .030 for conveyance
of Tracyton water system to Bremerton.
Secondly these parties further intend and are desirous to
contract herein for transfer of Tracyton water system to Bremerton
in the event its electors vote for such transfer and to
Exhibit A
contract the rates to be charged and the service to he provided
Tracyton's users by Bremerton.
Third and finally these parties intend and agree that,
in the event the electors decline to t~ansfer the Tracyton
system to Bremerton, the parties shall be relegated to their
respective positions, rights and duties as existed prior to
this agreement except as to lease of main and reducing station
installations, the parties recognizing a difference of opi~
as to the validity or meaning of agreement dated June 7, 1960.
NOW THEREFORE IT IS HEREBY AGREED AS FOLLOWS:
1. Breme~ton will install water main along Riddell Road
connecting at the westerly extremity of the currently existing
water main on that street, and extending westerly along Rlddell
Road to Bunker Street and connection with the currently existing
mains of Tracyton. This pipe shall be installed in 8-inch size
of cast iron material and of sufficient pressure classification
as will serve the circumstances, pressures and conditions there
pertaining.
2. Bremerton will also install a pressure reducing station
within Tracyton District limits properly housed as will have
sufficient capacity and size to permit the supply to Tracyton
of its needs for water as these needs exist through the various
seasons of the year, and with sufficient pressure reducing and
changing characteristics as will supply water at pressures
compatible with the existing mains and distribution system and
needs of current customers of Tracyton.
3. The parties acknowledge that Bremerton made the necessary
investigation and determination of facts, conditions existing,
and has by its personnel made the negessary design and engineer-
ing findings for the above installations. The parties acknow-
ledge that Tracyton relies upon Bremerton's representations and
ability in this field.
The installation of the above facilities will be made
entirely by the forces and wish materials supplied by Bremerton.
(2)
After completion of installation all of said pipeline
within Tracyton District boundaries and the said reducing station
shall be leased by the City of B~emerton to Traoyton Water
District, which said District shall rent same from the City of
Bremerton. The lease term shall be from date of completion of
said installation until either a conveyance to Bremerton of
Tracyton water system upon election, or by full payment of the
lease consideration, whichever first occurs. The lease con-
sideration is $8,613.75 and shall be paid $125.00 monthly ~
commencing the 30th day following certification of rejection
on election for conveyance of Tracyton water system to Bremer-
ton and continuing each month thereafter until lease consider-
ation is paid. Lease consideration may be prepaid by Tracyton,
in which event it shall receive a discount from the lease
f SUch Prepayment. -~'
consideration remaining unpaid of ~ 1/2~Z Upon payment of the
lease consideration in full or as discounted Tracyton shall
be and become the owner of such pipe line and pressure'reduc-
lng station without further proceedings by these parties nor
instruments of conveyance. In the event of an affirmative
vote in the election hereafter specified, under which the
electorate of Tracyton Water District shall approve a convey-
ance from Tracyton to the City of Bremerton of the water system,
the lease herein provided shall forthwith terminate and cancel;
the said line shall be and remain the property of Bremerton,
and Traeyton shall not be obligated further in regard to the
payment of rental or under said lease.
6. On the pipeline thus installed no hook-ups or connections
shall be made except under the auspices of Tracyton, which
District shall determine the appropriate front footage to be
paid by the respective properties as a charge for connection
permission, this to be in addition to the normal and usual
connection charge for water meter installation and hook-up.
The said front footage connection permission fee as received
shall be paid by Tracyton to Bremerton, and the same be credited
(3)
upon the rental as herein reserved.
Unless and until conveyance to Bremerton of Tracyton,s
water system shall occur, all w~ter mains now or hereafter in-
stalled within the boundaries of Tracyton shall be and remain
the property of Tracyton, with the exception that ownership
of the main on Sandra Lane and Vena Street and that main subject
to lease shall be and remain that of Bremerton. Service to
customers from said'Vena and Sandra Lane lines shall be as
customers of Bremerton.
8. Construction of the connection main shail commence
forthwith and be completed within thirty days. All construc-
tion and installation shall be in a good and workmanlike
manner, with adequate materials.
9. Commencing with the meter reading dated June 2?, 1966,
Bremerton shall performall meter readings, computation of
water charges, billing, receipt for sums so paid and account
therefor. And Tracyton will bill to July l, 1966 and will pro-
vide such records as are necessary and appropriate to assist
the City in determination of the appropriate future billings.
For the period commencing Julyl, 1966 Bremerton shall bill the
Tracyton customers at $3.50 per month for a minimum of 660 cubic
feet and 33 cents per hundred cubic feet in excess thereof,
said meter readings and billings to be bimonthly. Tracyton will
pay unto Bremerton for the services to be rendered under this
agreement $2.50 per 500 cubic feet basic minimum and 33 cents
per 100 cubic feet in excess thereof for the particular
customers involved, said billings to be bimonthly. During the
summer sprinkling period upon proper customgr application,
billing by Bremerton of Tracyton customers will be at the rate
of $5.50 per 2,500 cubic feet minimum, and the excess at 25
cents per hundred cubic feet. Tracyton will pay to the City
$5.00 per 2,500 cubic feet minimum for summer sprinkling rate
customers and 25 cents per hundred cubic feet over said mini-
mum. The billing to Tracyton by Bremerton at this new rate
(4)
of charge by Bremerton to Tracyton shall be pro rated for the
month of commencement between the date of completion of the
connection above mentioned and the first of the next
month. The services provided prior to that Completion date
shall be billed and paid for at the prior rate heretofore
existing
10. The monies herein referred to shall at all times be the
property of Tracyton until accounting and payment by Tracyton
of the sums due Bremerton. After proper accounting the pay-
ment for services and water as aforesaid shall be immediately
due. All records pertaining thereto shall be the property
of Tracyton. Tracyton shall have access at all reasonable and
proper times to the records aforesaid. Bremerton shall supply
copies on request thereof and retain originals.
ll. Balances on outstanding water bills will be billed by
Bremert0n, the past due amounts being entirely the property Of
Tracyton.
12. All receipts and disbursements, until such time as the
conveyance of system as herin is provided, shall be deposited
and made through the office of the Kitsap County Treasurer and
Auditor, pursuant to statutory requirements.
13. Billings to customers for water service rendered shall
be on the first part of the month, immediately following meter
readings.
14. During the term of this agreement Bremerton shall per-
form all necessary and appropriate maintenance and operation
functions at no charge to Tracyton. Extensions and new in-
stallations shall be made by Bremerton, as requested by Tracym
ton, at cost plus 15 per cent. Tracyton, however, reserves
the right to order this work done by others, according to
standard specifications for municipal public works construction
as prepared by the Washington Ghapter American Public Works
Association 1963 as revised, or equal. Meter installations
will be made at a cost as is set forth hereafter,to-wit:
(5)
5/8"to 3/4" $100.00
1" 180.00
1-1/2" ~00,00
2" 560.00
Taps of sizes larger than two inch shall be charged at actual
cost of material, labor and 15 per cent for supervision and
overhead. Any permits for crossing state or county roads
shall be obtained by Bremerton. The cost thereof shall be
paid by customers making requests for meter installations.
15. The agreement between the parties as above set forth
shall continue as an Intermim agreement between the date hereof
and the date of election hereafter set forth. In the event of
a negative vote upon the proposition of conveyance to Bremerton
of the Tracyton distribution system, this interim agreement as
above stated shall forthwith cease on the date of cer~£fication
of the results of said election; provided, however, that the
provisions for lease of water line and reducing stations as
aforesaid shall remain in full force and effect. Duplicate
records of Tracyton shall be by Bremerton forthwith returned to
Tracyton in good order and condition.
16. The commissioners of Tracyton agree to submit to the
electors of the Tracyton Water District, at either the primary
election in September of 1966, or the regular election in November
of 1966, a proposition with regard to the conveyance to
Bremerton of the water system, pipes and appurtenances, excluding,
however, buildings and lands, the said conveyance to be pursuant
to contract for future service, maintenance, operation and extension
as hereafter outlined. In the event of an affirmative vote as by
statute required, the following agreement shall become effective and
be executed and carried out by the parties hereto.
17. Tracyton will convey to Bremerton its water system, including
pipes and appurtenances, excluding, however, all lands and buildings.
Tracyton, in the conveyance to Bremerton, will reserve any and all
· tools, equipment and any and all pumps and tanks not necessary to the
operation of the system. They shall rmain the property of Tracyton.
18. Tracyton shall transfer to Dremer~on its supply of materials on
hand, acceptable to Bremerton, as of the conveyance date at cost,
which saim price shall be paid by Bremerton.
19. A surcharge for the prorata cost of fire hydrants, standby and
maintenance chamges shall be established by Traeyton and billed by
Bremerton, if so equestem by Tracyton. En addition to supplyillg
standby water supply service to the fire hydrants connected to
Tz~acyton mains there shall be furnished included in the monthly charge
hereafter specified the service of periodic and as needed maintenance
of the hydrants. Testing and inspection of said hydrants is expected
by the parties to be furnished by the fire district having authority
at the place of lo~ation of particular hydrants. In the absence of
agreement by the fire district involved to p~form such function
Tracyton may cause it to be performed by others on a periodic basis.
Copies of tests shall be furnished by the party performing same to
Bremerton~ Tracyton and the fire district. Failure to perform
maintenance as required by said inspections shall cause elimination of
the monthly charge for the period that the maintenance is not performed.
Bremerton shall furnish to Tracyton or the fire district in whose area
the hydrant may be installed according to Tracyton's direction,
performance and report forms of the nature currently in use from time
to time, such will enable the fire district personnel to make proper
reports of malfunction regarding the said hydrants.
20. The hydrant standby supply and maintenance charge hereafter
referred to shall not include any charge for any hydrant access to which
is on private property or on property which is fenced or enclosed in
any manner. Hydrants so located shall not be serviced except by
special arrangement.
21. Bremerton will supply to the present and future customers of
Tracyton an adequate water service at appropriate pressure and qualit~
at the meter as long as Bremerton shall maintain a public water
sapply distribution system.
22. Bremerton shall supply customers of Trasyton through individual
meters at monthly rates as hereafter set forth, for minimum of 500.
(7)
cubic feet or less of water supplied:
Meter Size: Minimum Charge:
~/8,' to 3/4,, $ 2.~0 ~.~/--
2" 8 · O0
6" 30.00
50.00
12" PS.00
and in addition for consumption in excess of the above minimums
there shall be charged for the next 4,500 cubic feets 33 cents per
hundred cubic feet; for the next 15,0~0 cubic feet, 27 cents per
hundred cubic feet~ and in excess of 20,000 cubic feet at the rate
of 20 cents per hundred cubic feet. Tracyton will pay to Bremerton
$1.35 per hydrant standby charge for water supply service and
maintenance to fire hydrants connected to and established on Traeyton
water lines.
23. Tracyton reserves the right to establish a special surcharge
over and above the basic charges aforesaid, the same to be the money
of T~acyton and to be ~sed rom Tracyto~ p~poses~ to be varied from
time to time according to the Traeyton Water Commissioners discretion,
the same to be collected by Bremerton and remitted to the proper
official of Traeyton.
24. The rates aforesaid are rates which are currently established
by Bremerton by ordinance for customers being served out of the City
limits. The aforesaid rate may be ehan~ed by Bremerton by amendment
of its ordinance from time to time; provided~ however, that the
charges to Traeyton customers shall not be increased or decreased except
in the same amount as~ or directly in proportion to any change in water
rate charged to customers of Bre~erton residing within the City limits.
25. Rates for services not specifically covered ~by this agreement
shall be as agreed between the parties hereto.
26. The rates above set forth shall be applicable for each meter
installation~ provided~ however~ that where two or more separately
occupied buildings are under separate o~nership~ management or control
(8)
and are being served through one meter, the minimum rate for each
such building shall be $2.50 per month for basic quantity of $00 cubic
feet per month per building, with~ water in excess of said amount per
unit Der month to be charged for at the excess rates above set forth.
27. Where two om more units of occupancy, whether by business or
dwelling units, are under a single roof or single ownership or
custody oP control, and are supplied through a single meter~ a single
minimum rate for service to said premises in aocordance with the size
of meter as aforesaid, and for excess as aforesaid, shall be applicable.
28. During such periods as sprinkling Pates for irrigation shall
be established by Bremerton for its customers within the City a
special rate for spPinkllng oP irrigating shall be available to
%'Pacyton customers, which rates shall be $5.00 per 2,$00 cubic feet
or less per month, with the excess being charged at 25 cents per
hundred cubic feet.
29. The said summer sprinkling rates aforesaid shall be subject
to change by Bremerton by amendment to its ordinance; provided that
the limitation on increase om deemease by a percentage of in-the-city
customer mate as aforesaid shall similarly apply.
30. The Tracyton's fire district, or such other fire district as may
have jurisdiction at the site of location, shall be entitled to install
and maintain and connect to the water mains involved the fire hydrants
which sueh fire district may select, and thereafter same shall come
under applicable provisions hereof, the fire district to be entitled to
make installation of said hydrants at locations it selects, the City,
however~ to make connections to the main at cost plus 15 per cent.
31. Bremerton shall maintain the water meters in good state of
repair as a part of normal maintenance operation and so as to guarantee
the accuracy thereof. BmemePton will test on Pgquest of a customer
by ~n approved method any customer's meter, and if found to be in
error, three per cent or greater in the City's favor shall make such
(9)
test and necessary repair and reinstallation at Bremerton~s expense,
otherwise the cost of testing shall be borne by the customer at
Bremerton's cost plus 15 Der cent.
32. Penalties for late charges in payment of water bills or meter
installations or costs of water main installation, i.e.~ front
footage fee for permission to connect, shall be as established by
Bremerton from time to time. This said penalty collected by Bremerton
shall belong to Bremerton in compensation for its services rendered
in collection procedures; provided~ however, the said penalty: charges
for delinquency and the delinquent charge itself may be transferred
to Tracyfon for its enforcement of so much of said penalty and
delinquency charges as it is empowered to enforce by statute, the
amount collected after deducting expenses of so doing to be paid by
Tracyton to Bpemerton.
Excessive registration of water consumption caused by
broken or leaking underground water service pipe on customer's
premises~ or eonneoting to said premises, when without the knowledge
or fault of the customer, shall be adjusted during an~ perio~ of
twelve months but after making repairs. The basis for adjustment shall
be the normal consumption appropriate to said premises under similar
operating conditions.
34. Whenever necessary to interrupt service to supply Bremerton
shall give notice a reasonable time in advance by publication in a
newspaper of general circulation in the area, so as to avoid
inconvenience to customers or injury to customers property. This
notice requirement shall not be applicable in emergency breakdown
35. Bre~erton shall not serve any customers except as a customer
of Tracyton in an area described as follows: Ail within existing
boundary of Traoyton upon the date hereof and also that area lying
South of a line commencing at the intemsection of Barker Creek and
Tracyton Beach Road: thence southeasterly to the quarter section corner
common to Sections 22 and 27 Township 25 N. Rg. 1E, ~;~[; thence
southerly along the North-South centerline of Section 27 to Hewitt
Road, thence southeasterly to NE corner of the SE 1/4 of SE 1/~,
Section 27, Township N., R1E, WM., thence Sou to Tracyton boundary.
36. Any extensions of ~he water mains conveyed to Bremerton and with-
in the boundaries heretofore defined shall be as Ordered by Tracyton, in-
stallation thereof to be performed by Bremerton work force with materials
provided by Tracyton; provided, ho'wever, Tracyton may elect to cause same
to be installed by others, Provided such installation shall be of standard
materials and laid according to specifications ~enerally applicable and
applied by Bremert0n. Cost of labor and materials to be borne by
Tracyton.
37. The parties acknowledge that heretofore arrangements With private
individuals have been made by Tracyton, whereby such individuals have
installed water mains at their own expense and conveyed same to Tracyton
under agreement to the effect that additional extra charges will be made
to persons thereafter connecting to such installed mains over and above
the usual connection charge; that this excess charge is to be disbursed
to the private individual making the installation. Tracyton will inform
Bremerton as to the circumstances involved in such situations, and
Bremerton thereafter will, before making connection, collect the approp.
riate monies in compliance with such agreements.
38. Bremerton shall maintain adequate records as to the properties
paying costs of installations so that a proper account and status of
payment for main installations shall be readily available and determinable.
39. Records as to the financial transactions had with customers
being served through the Tracyton mains and extensions thereof shall
be maintained.
All monies hereafter paid by property owners for costs of main
installation Within the above described Tracyton District and area i.e.,
front footage fee for permission to connect, whether such installation was
heretofore or is hereafter made, shall be the property of Tracyton, with
the exception of the main installed on Sandra Lane and Vena Avenue by
Bremerton heretofore.
41. The records maintained by Bremerton with regard to Supply of
water to Tracyton customers, billings, meter installations, engineering
data and records, water main lnstallationand charges, contributions and
payments by properties and property owners for main installation, Shall
(ll)
be so maintained ae to be segregated from t~e general records of the
City of Bremerton. ~hese shall be available at all reasonable and
proper times to the appropriate ~Uthorities of Tracyton for examination
and reproduction.
In the event of the annexation of any portion of Trasyton to
Bremerton so as to become a part thereof, then this agreement shall
have no further force or effect as to the customers served in the annex-
ed area, or as to the mains therein installed with the provision that
thereafter at no expense to Tracyton, Bremerton shall maintain and keep
in operating condition any main in the annexed area whose function it
is to provide service to other areas in Tracyton not so annexed.
This contract shall terminate in the event that Bremerton or
its successor in interest shall cease to maintain a public water
supply distribution system, and or upon such termination there shall
be a reconveyance by Bremerton, or its successor, to Tracyton of all
of Tracyton,s water mains, extensions or replacements thereof, not
within the City of Bremerton, said reconveyance to be unto such
body~ person, persons or entity as may be designated by Tracyton,or
its successor~ provided further, that in the event of such recon-
veyance after a portion of Traeyton has been annexed by Bremerton,
there shall be continued use of mains through the annexed area where
necessary to provide supply to portions of Tracyton not annexed.
44. Bremerton shall accept responsibility for all obligations
existing, approved, or hereafter accruing with regard to existing
water main installation~ and shall honor and perform the agreements
made between Tracyton and individuals with regard to installation of
water mains, the payment therefor, and the reimbursement thereof.
(12)
45. In the event of disagreement with regard to interpretation
of the agreement or the arising of matters or disputes or circum-
stances not covered by this agreement, the parties hereto agree
that the same shall be arbitrated~ the said arbitration to be
performed by a board of three arbitrators, one selected by each
of the parties herto, the third, who shall he the Chairman,
to be selected by the arbitrators so chosen, selection by each party
of its arbitrator to be made within twenty days of notice
in writing from the other party, which arbitrators shall within
ten days select the third. In the event of failure to select
the entire Board of Arbitrators wltin thirty days after notice,
or in the event of failure of the arbitrators within thirty days
from their selection to conclude their arbitration, or if either
party is dissatlfied with the arbitration result, it may thereafter
commence action in the Superior Court of Kitsap County to determine
the matters in dispute, including determination of matters not
specifically agreed to herein, the parties hereto hereby conferring
upon the said court the power to make such determination.
46. In addi~i6n t60the~ ~emedies p~evided by~la~ e_~e~ D~rty
shall be entitled to mandatory injunction to enforce the provisions
thereof.
THIS AGREEMENT EXECUTED in triplicate this~_~day of
June, 1966.
CITY OF BREMERTON
Glenn K. ~3~rstad, mayor
Attest:
E.H.To McGowan,tCity Clerk
TRACYTON WATER DISTRICT,
A MUNICIP~A CORPORATION
Tracyt0n Wate~ Di~tr~ct --
Commissioners
After Recording return to:
Tracyron Water Distr/ct
P,O. Box 2o13
Silverdale, WA 98383
Summary for Recorder's Use:
1. Reference Number of documents being assigned or rele~e.d: Not Applicable
2. Grantor(s):
1. CI'i-Y OF BREMERTON, a Washington Municipal Corporation;
2. TRACYTON WATER DISTRICT, a Waskington Municipal Corporation;
3. Grantee(s):
1. CITY OF BP,_E.,MERTON, a Wash/ngton Municipal Corporation;
2. TP-.~CYTON WATER DISTRICT, a Washington Municipal Corporation;
4. Legal Description: Not Applicable
INTERLOCAL AGREEMENT
BETWEEN
CITY OF BREMERTON AND TRACYTON WATER DISTRICT
Regarding the Duties, Design, Construction, and Financing of Water System Upgrades
within Tracyton Water District in Anticipation of District Dissolution and District
?_nnexation into City..
THIS INTERLOCAL AGREEMENT is made and entered into pursuant to the
provisions of Chapter 39.34 RCW (Interlocal Cooperation Act), this ~ day of
~, 2000, by and between the CITY OF BREM~ERTON (hereinafter
referred to as "C~I'Y") and TRACYTON WATER DISTRICT (hereinafter referred to as
"DISTRICT"), and collectively referred to as the "Parties". Pursuant to RCW 39.34.040, after
this Agreement is executed it will be recorded with the Kitsap County Auditor.
Chapter 39.34 RCW encourages local government units to make the most' efficient use
of their powers by enabling them to cooperate with one another to their mutual advantage and
thereby provide services and facilities to the public in a more efficient and cost effective
manner.
The CITY and DISTRICT, by agreement dated June 29, 1966 (the "Service
Agreement"), provide water services to customers within the DISTRICT's water service area. In
summary, pursuant to the Service Agreement, The CITY provides all water, owns all the piping
and appurtenances, and provides maintenance and billing services to the customers of the
DISTRICT, and the DISTRICT approves all water hookups, sets front foot assessment fees,
determines water availability within the DISTRICT, and generally represents the water supply
issues and interests of its customers.
Exhibit B
lnterlocal Agreement
City ofBremerton & Tracyton Water Disl~ict Page l 02/10/00
The DISTRICT has completed a capital improvement plan for needed improvements as
an element of the DISTRICT's Interim Water Plan dated June 1998, (hereinafter referred to as
the "Plan"). The parties desire to implement the Water Main Replacement Projects as described
in the Capital Improvement Schedule, Table 8-3, of the Plan (hereinafter referred to as the
"Project").
In accordance with the terms of the Service A~eement, the CITY will own, maintain,
and operate the infrastructure constructed pursuant to the Project. The DISTRICT lacks the
technical and administrative resources to facilitate implementation of the Project. The CITY
has ageed to provide the resources to facilitate implementation of the Project on a cost
reimbursable basis as set forth in this Ageement.
NOW THEREFORE, the parties tln_rough their respective legislative bodies, in
consideration of the foregoing recitals, and the mutual covenants and promises contained
herein, agee as follows:
1. PURPOSE. The purpose of this Ageement is to set forth the terms and conditions by
which the CITY and DISTRICT will implement the water system infrastructure improvements
described in the Capital Improvement Schedule, Table 8-3, of the Tracyton Water District
Interim Water Plan, I998 (attached hereto as Exhibit "A").
2. ADMINISTRATION TEAaM. The CITY and DISTRSCT shall each appoint two
individuals, who may be DISTRICT and CITY officials, who shall meet on a regular basis, at
least twice a month or at such other intervals or times a~eed to by the Parties, to administer the
terms of this Agreement and represent the interests of their respective entities. This body shall
herein be referred to as the "Administration Team". If the Administration Team shall ever
disagee on any issues related to this Agreement, after first making a concerted effort to reach
ageement, with agreement still not being reached, they shall seek guidance from their
respective governing bodies. The members of the Administration Team, and the DISTRICT and
CITY, shall always seek to deal with one another in a spirit of cooperation, openness, fairness,
and in a timely manner, so the goals of this Agreement may be fully met in a timely' and cost
effective manner.
3. RESPONSIBILITY OF THE PARTIES.
A. PROJECT COSTS. The DISTRICT shall be obligated to pay all costs of the
Project, including, but not limited to: administration, de{ign, procurement, construction,
inspection, and securing financing, including Bond Council fees, if any.
B. DISTRICT PERFOR3'IANCE. The DISTRICT shall perform all duties and acts
in a good and timely manner that the ADMINISTRATION TEAM believes are reasonably
required for support of the CITY's duties in implementing the Project.
C. CONVEYANCE OF PROJECT PROPERTY TO CITY AT COMPLETION.
The DISTRICT shall, in accordance with the Service Agreement and upon completion of the
Project, convey to the CITY ownership of all improvements covered by the Project.
Interlocal Agreement
City of Bremerton & Tracyton Water District Page 2 02/I0/00
D. REIMBURSEMENT OF PROJECT COSTS. The DISTRICT shall, within 30
days of receipt of invoice, reimburse the CITY for costs of the Project not other,vise provided
directly to the CITY by Project Financing; PROVIDED, HOVv'EVER, ail Project costs not
provided by Project Financing shall, before being incurred, be specifically approved by the
DISTRZCT, which approval shall not be unreasonably withheld. In its work hereunder, the
CITY shall strive only to incur those costs covered by Project Financing as defined herein. In
incurring costs not provided for by Project Financing, fine CITY shall seek only to incur those
costs that are absolutely necessary to implement the Project as determined by the
Administration Team, and shall seek at all times to keep those costs to the absolute minimum.
E. CITY DUTIES. The CITY shall provide, on a cost reimbursable basis, all services
required to secure financing for the Project, in a form a~d on terms reasonably a~eeable to the
DISTRICT; i.e., bond financing, secured by the assets and/or future revenues of the DISTRICT
and properties served by the improvements; or loan and ~ant applications such as Washington
State Public Works Trust Fund, State Revolving, Fund, etc. It is the intent of the parties that
these said costs shall be covered by the Project Financ~g.
The CITY shall manage implementation oft. he Project by selecting and contracting, on
behalf of the DISTRICT, w/th a qualified eng2_neering consultant for the desi~ma of the Project
with plans, specifications, and estimates, for the purpose of securing competitive bids for
construction of the Project. The DISTRICT shall pay ail costs associated with these tasks with
the intent that these costs will be covered by the Project's financing package. The CITY shall
keep the Administration Team advised, on a regular and timely basis, of its efforts in this
regard.
The CITY shall, through competitive bids, conlzact, on behalf of the DISTRICT, for the
construction of the Project. Prior to accepting the lowest responsible bid for the Project, the
CITY shall fully advise the DISTRICT of the CITY's masons for accepting the successful bid.
The CITY shall manage and inspect all aspects of the Project's construction in a timely and cost
effective manner.
The CITY, as Project manager, shall be responsible for Project accounting, making
disbursements to the CITY, consultants, and contractors hired to complete the project and for
monitoring the project and project budget. The CITY shall keep the Administration Team
advised on a regular basis of all Project accountings and answer all questions the
Administration Team may have regarding the same. The CITY shall invoice the DISTRICT for
ali costs of the Project not otherwise provided directly to the CITY by Project Financing
according to the procedure herein established for non-Project Financing costs.
4. ADMINISTRATION.
A. PROJECT MANAGER. The Project manager for this project shall be the City
· Engineer. The City Engineer shall make every reasonable effort to insure the Project is
completed in a timely manner and on budget The CITY Engineer shall keep the Administration
Interlocal Agreement
City of Bremerton & Tracyton Water District Page 3 02/10/00
Team informed on a continuing basis of its work and shall promptly answer all questions
directed to it by the Administration Team.
B. FIN.42"/CING. Necessary, financing, will be arranged by the CITY Treasurer,
xvhich financing shall first be approved by the DISTRICT, ~vhich approval shall not be
unreasonably with_held. Project Financing shall include provision of funding for ail costs
associated with the Project including financing, desi~, construction, and administration. It is
acknowledged that elements of Project Financing may include bonds, grants, loans, and
DISTRICT funds for ineligible costs incurred and local match, if not otherwise provided.
C. AGENCY. After agreement has been reached between the CITY and DISTRICT
regarding the terms of any element of the Project Financing, the CITY shall act in accordance
with the terms of such financing agreement on a timely basis, and shall act as the DISTRICT's
agent in all matters thereafter related to financing a.nd billing for the Project.
5. TERM. This Agreement shall take effect upon its execution by both the CITY and the
DISTRICT, and shall continue until the Project is completed, all available funds from Project
Financing are expended, or the DISTRICT is dissolved, whichever event occurs first.
6. ENTIRE AGREEMENT. This Agreement constitutes the entire agreement between
the parties regarding the matters contained herein. Both parties acknowledge that, excepting
the Service Agreement, there are no other applicable agreements, written or oral, that have not
been fully set forth in the text of this Agreement.
7. AME~¥DME~NTS. The parties agree this Agreement cannot be amended or modified
without written concurrence of both parties;
8. NOTICES. Any notices required to be given by CITY to DISTRICT or by DISTRICT
to the CITY shall be in writing and delivered tothe parties at the following addresses:
Ci.ty of Bremerton Tracyton Water District
Department of Public Works and Utilities P.O. Box 2013
3027 Olympus Drive Silverdale, WA 98383
Bremerton, WA 98310-4799
9. VENUE. This Agreement shall be constructed and interpreted in accordance with the
laws of the State of Washington.
10. ORDER OF PRECEDENCE. In the event of an inconsistency in this Agreement,
unless otherwise provided herein, the inconsistency shall be resolved by ~ving, precedence in
the following order:
(a) Applicable State statutes and regulations;
(b) This Agreement, including any other express provisions of this Agreement whether
incorporated by reference or otherwise; and
Interlocal Agreement
City of Bremerton & Tracyton Water District Page 4 02/10/00
(c) The Service Agreement;
(d) The terms and conditions of the funds being distributed.
1 I. DISSOLUTION OF DISTRICT~ The parties agree to negotiate the dissolution of the
DISTRICT in the future. The DISTRICT is agreeable to its dissolution with all D;[STR.iCT
functions being taken over by the CITY so long as the CITY agrees to provide the same level of
service to the DISTRICT's customers as it provides to its other water customers and at a service
rate str,acture agreed to by the CITY and the DISTRICT prior to dissolution. If reasonably
required, Bond counsel will be consulted on the feasibiliw and structuring for DISTRICT
dissolution, and CITY assumption of DISTRICT deb't may be incorporated into the bond issue
dopuments. The CITY is agreeable so long as assumption of any debt does not limit the CiTY's
debt capacity to a level unacceptable to the CITY.
12. VALIDITY. If any section of this Agreement is adjudicated to be invalid, such action
shall not affect the validity of any section not so adjudged unless such invalidity shall
substantially compromise the overall purpose of this Agreement.
13. DEFAULT. A party shall be deemed in default under the terms of this Agreement if it
fails to substantially perform its duties hereunder after first having, received written notice fi.om
the non-defaulting party itemizing the default(s), with those defaults not being cured within
forty-five (45) days from the date the notice is received. A notice shall be deemed "received"
two days after mailing the same by certified mail, return receipt requested, fi.om a u.s. Postal
bop site in Kitsap County to the other party's address for the receipt of notices as set forth
herein, or upon the delivery date of personal delivery upon any person signing this Agreement,
with the receiving party signing a receipt therefore. After default has occurred, the non-
defaulting party shall have the right to brine, an arbitration action as set forth in section 14.
hereof for specific performance and/or damages as conditions shall warrant. The non-
defaulting, party shall also be entitled to any other rebel afforded in law and/or equity in the
arbitration proceeding.
14. ARBITRATION'. In the event legal action becomes necessary hereunder, the parties
agree the venue and jurisdiction of any such legal action shall reside in Kitsap County with the
Kitsap County Superior Court. In the event of legal action, the parties further agree to submit
any dispute(s) hereunder or relating to this agreement into arbitration pursuant to RCW Chapter
7.04, except as modified in this section 14, and to provide the selected arbitrator with all
jurisdiction (legal and equitable) to fully and completely'settle all matters in dispute.
When the need for arbitration arises, the party demanding arbitration, pursuant to RCW
7.04.060, shall serve upon the other party, personally or by registered mail, a written notice of
its intention to arbitrate. Such notice shall state in substance that unless within twenty (20) days
after its service, the party served therewith shall serve a notice of motion to stay the arbitration,
the party receiving the notice shall thbr~after be barred from putting, in issue the existence or
validity of this section 14 of this agreement to arbitrate or the failure to comply herewith.
Interlocal Agreement
City of Bremerton & Tracyton Water District Page $ 02/10/00
Applicanon to ~rbitrate, pursuant to RCW 7.04.030, shall be made by motion to the
court. When the matter is placed into arbitration on tl~e motion of either party, the court action
shall be stayed.
The arbitration shall proceed pursuant to the r-ales established in RCW Chapter 7.06
entitled MANDATORY ARBITRATION OF CIVIL ACTIONS, except as modified in this
section 14. One arbitrator shall be selected from the court's mandatory arbitration list in the
same manner as established in RCW Chapter 7.06, and the local rules, dealing with mandatory
arbitration. The taking o£depositions, the issuance of Interrogatories, Requests for Production,
and Requests for Admission, shall be specifically autlnorized as provided by law as if this said
were proceeding as a civil case in Superior Court.
The arbitrator ~hall issue his or her decision in the same manner prescribed in RCW
Chapter 7.06 within twenty (20) days from the close of the arbitration hear/ng.
A party may appeal the decision of the arbitrator pursuant to RCW 7.06.050: within
twenty (20) days after the filing of the arbitration award, the aggrieved party to perfect its
appeal rights must file with the superior court clerk a written notice of appeal and request for a
trial de novo in superior court on ali issues of law and fact. Provided, however, pursuant to
RCW 7.06.060, and local court rules, if the ag~m-ieved party filing the appeal does not improve
its position in superior court, that party shall have assessed against it, the other party's
reasonable attorney fees and costs incurred fi-om the date the notice of appeal was flied.
The prevailing party or par~ies in any such arbitration action and/or court action shall be
entitled to receive its/their reasonable attorney fees and costs of suit from the losing party.
Interlocal Agreement
City of Bremerto~ & Tra~ton Water District Page 6 02/10/00
15. AGREEMENT APPROVAL. This Agreement i~ approved and entered into by the
undersigned local government units as of the date set forth at the commencement of tkis
Agreement.
CITY OF BREMERTON
L 5'N-~N' S. HORTON, Mayor
ATTEST:
K_,kTHLEEN MCCLUSKY~iW Clerk
DEP.~TME~T ~ROV~S:
W. EUGE~ S~, P.E.
Director of Public Workfi ~d Utilities
~CH H~A, ~~er
~PROVED AS TO FO~:
~L~~CA, Ci~ Anomey
~~ ~~'~C~issioner
, : G~N~,
Page 7 02/10/00
STATE OF WASHINGTON)
) ss COMMISSIONER ACKdNOWLEDGEMENT
COU~-NTY OF KITSAP
On this day personally appeared before me the three commissioners for Tracyton Water
District, namely, GARY KEENAaN, TIM F2.NAPP, and LEE ~¥TNTEROVvT), to me kno~vn to
be the individuals described in and who executed the v,'ithin and foregoing instrument, and
acknowledged that they signed the same as their free and voluntary act and deed, for the
purposes therein mentioned on behalf of the said District.
~-~"~ day of 7e_~3
SIGNED A_ND SWOP.N TO before me ,~.~ L - , 2000.
Print Name ~,'.t.~..d
NOTA_RY PUBLIC in and for the State of
Washfia~on, residing in
My Commission Expires: t"fl/2~P,/62 _
/ab
Tracyton Water Systm'n File
From 6~ Draft
Inteflocal Agreement
City of Bremerton & Tracyton Water DisWict Page 8 02/10/00
LYZIIB IT "A"
InterlocaI Agreement
City ofBremerton & TracBon Water District
AGENDA BrI,T,
BR.EMERTON CITY COUNCIL
I, SUBJECT: IN'rEP. LOCAL AGKEEMENT FOR AGEbrDA OF: FebrumCy.~,_, _000
WITH THE TRACYTON WATER DISTRICT ORIGEN'ATING DEPT: Public Works & Utilities.
ORIGk-NATOR: W. Eugene Sampley,
D^r S - nWED: I8, 2000
City Treasurer .~ <-;,~M ~.._~ A. Tracyron Water District Map.
Administrative Services Department .'%-,'~, ¢(~_ ~,~2...-_~ B. Interlocal Am'cement.
Council Budget & Finance Committee ~ ,~jo-o-~_~,;.~ , -
Operations Committee ~~//.
E2CDOR.S£MZ=NT ' ,12',FF~.~ O N '.7
MAYOR ,..~r.~..- "/' APPROVED BY COUNCIZ PRESDENT FOR SUBMI f t.~L: ,
4. SUNITvLa3~.y STATEM~ENT .az`cD REQUIREM'ENT FOR COUNCIL ACTION:
The Board of Commissioners of the Tracytun Water Disudct anticipates dissolution of the District with the service
area bei2g assumed by the City. of Bremerton Water Utility. l:¥1or to acceptance of the District's service area by
the City., the existing water system must be upgraded to cmTent standards. The District completed a Capital
Improvemdnt Plan (CIP) for the needed improvements as an element of the Trac~on Water District Interim Water
Plan (I998). The Diandct lac~ the technical and adminlskmdve resources to facilitate implementation of the
projects identified in the CP. The attached Interiocal A__o~ment authorLzes the City and District to work
cooperatively on implementing the water main replacement pmj~ts as described in the CIP. The City will manage
implementation of the project through selection and contracting with a qualified en=mkneering consultant to. design
the project, competitively bidding the project, administering the consmletion, and pm,ride assistance in securing.
fi.uanc/ng for the project. The District shall be obligated for all costs of the proje0t. FInancing of these
improvements shall be structured for District dissolution and City assumption of the District's debt without
effecting other Bremertun Water System rate payers. Staff recommends approval of the attached Interlocal
Agreement.
g. RE COMlVIENDATION:
- That the City Council approve the Interlocal Agreement between the City of Bremertun and the Tracyton Water
District, and authorize and direct the Mayor the execute the same. ---'
2::
9. RESPONSIBLE OFFICIAL: Director, PW&U
ENFORCEMENT OFFICIAL: N/A
EXPIRATION DATE:
REVIEW DATE:
10. NOTICE OF ACTION
PULLED TABLED__ APPROVED L~ DISAPPROVED AMENDED
_COUNCIL DIRECTIVE, ~-"/~ ~' '-'' ~,-0'~q DATE:
2. CLEARANCE C OM-YIEI~'TS:
5. .IMPACT ON NON-pASSAGE:
The Tracyton Water Dislrict w~l not be able to/reprove the/r w~ system for assm-npt/on by the Bremerton Water
System. The District will continue to exist ~md provide inadequate water service-to its customers, or will be
assumed by another entity.
6. IMPACT ON STAFFING. BUDGETS. FACILITIES. EOUTP.MENT OR OTI-IER RESOURCES:
All work performed in accordance with this Interlocal A~eement will be funded by the Tracyton.Water Dis~ct.
7. RESEARCH SOURCES
200II
TRAC~TON SERVICE AREA
TRACYTON WATER DISTRICT
DISTRICT & SERVICE AREA BOUNDARIES
SERVlCEAREA BOUNDARY
WATER DISTRICT BOUNDARY
INTERLOCAL AGREEMENT
BETWEEN
THE CITY OF BREMERTON AND TI~4CYTON WATER DISTRICT
Regarding Financing the Design and Construction of
Water System Upgrades within Tracyton Water District
THIS INTERLOCAL
,rra,~c,~a ,~: . AGREEMENT is made and entered into this dt2g~f.Z day of
2001, by and between the City of Bremerton (hereinafter "CITY" and
cyton X~Vater District (hereinafter "DISTRIC" o )
T ), to=ether referred to as the PARTIES ".
WHEREAS, Chapter 39.34 R.CW permits local government units to make the most
efficient use of their power by enabling them to cooperate to their mutual advantage and thereby
to provide services and facilities in a more efficient manner, and '.
WHEREAS, the CITY and the DISTRICT, by Agreement dated J'une 29, 1966 (the
Service Agreement), provide water services to customers within the DISTRICT's water service
area, and
WHEREAS, the CITY and the DISTRICT entered into an agreement dated February 29,
2000 for the Design, Construction and Financing of-Water System Upgrades within Tracyton
Water District in Anticipation of Dis~ict Dissolution, and
WHEREAS, the DISTRICT is obligated for all costs of the Project, including, but not
limited to; administration, design, procurement, construction, inspection, and securing financing,
including Bond Counsel fees, if any, and
WHEREAS, the DISTRICT, with the assistance of the CITY, secured a Pub'tic Works
TruSt Fund loan for the design of the Project, and
WltEREAS, the DISTRICT, with the assistance of the CITY, secured a S{ate Revolving
Fund loan for the capital construction of the Project, and
WHEREAS, the PARTIES desire to establish the method by which capital construction
of the Project, including construction, inspection, and administration will be financed, and
W'[qEREAS, the CITY is, subject to reimbursexnent by the DISTRICT, making and will
continue to make payments to consultants and contractors for design and construction of the
Project, and
WHEREAS, there is a need to provide for cash. flow needs for such payments by the
DISTRICT to the CITY while reimbursement from the State Revolving Fund is processed, and
lnterlocal Ag~'n~nt-2/27/01
Tracyton Syst~mh,,~,,vcemems Exhibit C
Page I of 4
WHEREAS, the DISTRICT desires to establish the rate formula for its customers in the
event of dissolution of the DISTRICT.
NOW THEREFORE, the PARTIES through their respective legislative bodies in
consideration of the mutual covenants contained herein, do agree as follows:
1. PURPOSE. The purpose of th/s Agreement is to set forth the terms and conditions by
which the CITY, on behalf of the DISTRICT, will design, constract and finance water system
upgrades within Tracyton Water District and the terms and conditions by wkich DISTRICT will
reimburse the CITY for those costs.
2. PRIOR AGREEMENT. The terms and conditions of the agreement between the
PARTIES dated February 29, 2000 remain in effect. Said agreement is incorporated herein by
this reference.
3. CASH FLOW FINANCING.- For the purpose of meeting the cash flow requirements
during the period of desi~m and construction of the water system improvements there is hereby
authorized an inter-governmeutal loan fi.om the CITY to the DISTRICT in an amount not to
exceed five hundred thousand dollars ($500,000). Tkis loan shall bear interest at the rate of 5%
per annum, which shall be computed monthly and paid at the time ofloan repayment. This loan
may be repaid in whole or in part at any time but shall be repaid in its entirety not later than the
point at which the State Revolving Fund loan to the DISTRICT is finalized.
4. LOAN DRAWS. The CITY shall, on behalf of the DISTRICT, prepare on a timely
basis, reimbursement requests to the Public Works Trust Fund and the State Revolving Fund.
The CITY' s_hall pursue such reimbursements as it would in the conduct of its own business.
Reimbursement requests shall be author/zed, if required, by the DISTRICT and submitted to the
appropriate State agency within 5 days of DISTRICT receipt.
5. PAYMENTS TO CITY. The DISTRICT shall, within 25 days of receipt of
reimbursement by the Public Works Trust Fund or State Revolving Fund, reimburse:CITY for
costs of the Project.
6. DISTRICT LOAN PAYMENTS. The DISTRICT intends to repay its loans fi.om the
Public Works Trust Fund and the State Revolving Fund fi-om water surcharges levied on
DISTRICT customers. These surcharges will be levied by the DISTRICT until such time as the
DISTRICT is dissolved. After DISTRICT dissolution, the CITY will levy necessary surcharges
and make loan payments to the Public Works Trust Fund and the State Revolving Fund until
such time as the loans are repaid.
7. DISTRICT SERVICE AREA. The service area of the DISTRICT for purposes of this
agreement is set forth in EXI-IIBIT "A" attached hereto and made a part hereof by this reference.
8. CUSTOMER RATES. The monthly rate formula for customers within the DISTRICT
service area following dissolution of the DISTRICT shall be equal to the rates charged city
residents plus a surcharge sufficient to meet the debt service requirements of the DISTRICT
Interlocal Agreement-2/27/01
Trac~on System L,'nprovement~
loans plus a lighting surcharge if appropriate. At such time as the DISTRICT loans are fully
repaid, DISTRICT customers shall be charged rates as county residents plus a lighting surcharge
if appropriate.
9. FRONT FOOTAGE FEES - DISCOUNT. It is agreed that Front Footage Fees, (FFF),
within the DISTRICT service area will be equal to those charged to CITY's customers in
unincorporated Kitsap County. During calendar year 2001, these FFF will be discounted 100%.
On January 1 of each year there after, the percentage of discoant will be reduced by five percent
(5%) until the DISTRICT FFF shall be equal to the rate charged customers in unincorporated
K. itsap County.
10. ALL OTHER FEES .AND CHARGES. All other fees and charges shall be equal to
those charged by the CITY to its customers in unincorporated Kitsap County.
11. RATES, FEES AND CHARGES - EFFECT OF AxNNEXATION. In the event that
property or customers within the district service area are annexed into the CITY, such property
or customers shall be subject to the same CITY rates, fees and charges as all other CITY
residents. Upon such annexation, the CITY will b~come responsible for a portion of the
DISTRICT loans then outstanding equal to the district surcharge paid by the annexed property or
customers during the preceding year divided by the district surcharge paid by all property or
customers during the same period.
Properties served by the District prior to dissolution of the District shall be considered
customers of the CITY at the time of dissolution. Prior to dissolution, the provisions of BMC
15.02.040, SERVICE BEYOND CITY LIM2TS, shall not apply to such existing service,
However, BMC 15.02.040 shall apply to all properties requesting utility service from the CITY
after the effective date of dissolution.
12. TERM. This Agreement shall take effect upon execution of the Agreement by both
CITY and DISTRICT and shall continue until the Project is completed and DISTRICT loans
have been repaid.
13. ENTIRE AGREEMENT. This Agreement constitutes the entire agreement between the
parties and both parties a~knowledge that, excepting the Service Agreement, there are no other
agreements, written or oral, that have not been included by reference in this Agr&ement.
14. AMENDMENTS. The parties hereby further agree that ti'tis Ag-reement cannot be
amended or modified without the written concurrence of both parties.
15. NOTICES. Any notices required to be given by CITY to DISTRICT or by DISTRICT
to the CITY shall be in writing and delivered to the parties at the following addresses:
City of Bremerton Tracyton Water District
Department of Public Works and Utilities P.O. Box 2013
3027 Olympus Drive Silverdale, Washington 98383
Bremerton, Washington 98310
lnterlocal Agreement -2/27/0 I
Tracy~on System
16. VENUE. This Agreement shall be constructed and interpreted in accordance with the
laws of the State of Washington.
17. ORDER OF PRECEDENCE. In the event of an inconsistency in this Agreement,
unless otherwise provided herein, the inconsistency shall be resolved by giving precedence in the
following order:
(a) Applicable State statutes and regulations;
(b) This Agreement, including any other express provisions of tiffs Agreement
whether incorporated by reference or otherwise; and
(c) The Service Agreement;
(d) The terms and conditions oft. he funds being distributed.
18. SEVER. ABILITY. Il'any section of this Agreement is adjudicated to be invalid, such
action shall not affect the validity of any section not so adjudged. .
This Agreement approved and entered into by the undersigned local government un/ts the
day and year first above written.
CITY OF BREMERTON T~C/~ON WATER DISTRICT
LYNN S. HORTON, Mayor GAkt/K~EN/(~ora~fissi~ner
DEPARTME~rT APPROVAL: ~ ~ q/q/CO/
? ~~~. TIM KNAPP, Commissioner
w. EUGEN S -- / --
Director of Public Works and Utilities
LEE WINTEROWD, Commissioner
DAVID ST. PraRRE
Assistant City Attorney
ATTEST: ATTEST:
KATHLEEN McCLUSKEY, City Clerk ~ /~¢rexr~ /-'/~ ~ r/u~', Secretary
Int~rlocal Agr¢~m*nt-2/27101
Traeytou Sy~t~-m
Page 4
INTEP, LOCAL AGI~EEMENT
BETWEEN THE CITY OF BREMEKTON
AND TRACYTON' WATER DISTRICT
/ --- --- i
TRACYTON SERVICE AREA
TRACYTON WATER DISTRICT
DISTRICT & SERVICE AREA BOUNDARIES
SERVICE AREA BOUNDARY
ORDINANCE # 4760
ORDINAaNCE to approve an inteflocal agreement with the Tracyton Water
District regarding financing the design and construction of water system upgrades
with Tracyton Water District, and waive the provisions of BMC 15.02.040 as it
applies to that a~eement.
WI-IEREAS, the City of Bremerton (CITY) and the Tracyton Water District
DISTRICT), by agreement dated June 29, 1966 provide water services to customers
within the DISTRICT's water service area, and
WI-IEREAS, the CITY and the DISTRICT entered into an agreement dated
February 29, 2000 for the Design, Consu'uction and Financing of Water System Upgrades
within Tracyton Water District in Anticipation of District Dissolution, and
WHEREAS, the CITY and the DIST1LIC? successfully secured a Public Works
Trust Fund loan for the design and a State Revolving Fund loan for the construction of
the project, and
WHEREAS, the CITY and the DISTKICT have negotiated the attached interlocal
agreement Regarding Financing the Design and Construction of Water System Upgrades
within Tracyton Water District, and
WI-W,,REAS, the CITY will assume the DISTRICT's water service area upon the
DISTRICT's dissolution, and
WHEREAS, properties served by the District prior to dissolution of the District
will be considered customers of the CITY at the tkne of dissolution, and
WI:IEREAS, the provisions of BMC 15.02.040, SERVICE BEYOND CITY
LIMITS, should not apply to such existing service prior to dissolution; now therefore:.
TI-I~ CITY OF BRE1V[ERTON DOES ]:IlgREBY ORDAIN:
SECTION 1. Interlocal Agreement. The attached interlocal agreement Regarding
Financing the Design and Construction of Water System Upgrades within Tracyton
Water District is hereby approved and adopted.
SECTION 2. Application of BMC 15.02.040 to Existing Water Service. The
provisions of BMC 15.02.040, SERVICE BEYOND CITY LIMITS, shall not apply to
properties served by the District prior to dissolution of the DISTRICT.
SECTION 3. Application of BMC 15.02.040 to New Water Service. The provisions of
BMC 15.02.040, SERVICE BEYOND CITY LIMITS, shall apply to all properties within
the Tracyton Water District service area requesting utility service fi.om the CITY after the
effective date of dissolution of the DISTRICT.
ATTACHMENT: Inteflocal Agreement Regarding Financing the Design and
Construction of Water System Upgrades witkin Trac~on Water District
APPROVED by the City Council on the first reading this 7~ day of March, 2001.
PASSED by the City Council of the City of Bremerton this I4t~ day of March,
2001.
~ Council President
APPROVED this ~day o~2001
L~S. HORTON
Mayor
ATTEST:
KAT2¥~E~'4 I~I~L!jsKE'~', City Clerk
/
EFFECTIVE DATE '~'-,,~,,~-0/
PUBLICATION DATE,-.;'-~m-~t ·
ORDINANCE NUMBER-ff?~o
AGENDA BILL
BREMERTON CITY COUNCIL
1. SUBJECT: ~-~R3T READ I NG FOR AGENDA OF: March 7, 2000
Ordinance # 47~0Approving an Intedocal ORIGINATING DEPT: Public Works & Utflifie~
Agreement with the Tracyton Water District and ORIGINATOR: W.E. Sampley, Director
Waiving the Provisions of BMC 15.02.040. DATE SUBMIITED: February 20, 2000
(Comment 0n bllck ~ry)
2. CI,F~ARANCES: 3. Exlua~rrs:
DirectorPW&U t-f ' · Ordinance# ~7~, 0
City Treasurer 'u~t~clt-3/7/q · Tracyton Water District Map
Operations Committee P R [ - C 0 1
Fiscal & Budget Comm. PRE-C0UNC I L 3/7/01
ENDORSEI~__2qT /~ INFORMATION APPROVED BY COUNCIL PRI~,~qlDENT FOR SUBMITTAL:
MAYOR . COUNCIL PRESIDEN:I~ .
4. S~Y STATEM~ENT AND REQUIREMENT FOR COUNCI~ ACTION: -
On February 29, 2000, the Tracyton Water district and City of Bremerton entered into an intertocal agreement
for the desig~ construction and financing of water system up~-ades witNn Tracyton Water District in anticipation of
District dissolution. The City and District successfully s~cured a Public Works Trust Fund loan for the design and a
State Revolving Fund loan for construction of the project. The ~rmched Inte,local Agreement completes the
agreement between the City and the District providing for an inter-govemmemal loan for cash flow requiremems
during construction, setting forth the means for repayment of ail loans, and other provisions for rates, front footage
8. RECOMMENDATION:
~gr-ee~t.
2) I move that the City Council pass Ordinance # z~3(a D on second reading.
9. RESPONSItlI,I~, OFFICIAL: Director of Public Works '& UI/lifies
ENFOR~ OFFICIAL: Director of Public Works & Urges
EXPIRATION DATE: NA
REVIEW DATE: NA
10. NOTICE OF ACTION
PUIJ.I~D__ TABI,ED__ APPROVEDLJ DISAPPROVED AM]ENDED__
,COUNCIL DIRECTIVE: ?)5" --' f~ DATE:
2.~ C'L~C]~ COMM]~NTS:
4. SUMMARY STATEN[ENT (Continued)
fees and the effect of annexation of properties within the benefit area. Financing of these improvements are
structured for District dissolution and City assumption of the District's debt. Additionally, the attached
Ordinance # ~ waives, prior to dissolution, the provisions of BMC 15.02.040 (SERVICE BEYOND
CITY L/NiITS) for all properties served by the Tracyton Water District that at the time of(tis,solution of the
District become water service customers of the City ofBremertor~ Staffrecommends that City Coun~
approve Ordinance # q"/6, c~ approving the Inteflocal Aga'eement between the City of Bremenon and the
Tracyton Water District, and waiving the provisions of BMC 15.02.040.
5. IM~PACT ON NON-PASSAGE:
The Tracyton Water District will not be able to improve their water system for assumpilon by the Bremerton
Water System_ The District ~ continue to exist and provide inadequate water service to its customers, or will be
assumed by another entity.
6..IMPACT ON STAFFING. BUDGETS, FACr[,FIq]ES, EQUIP~ OR OTFI'I~R RESOURCES:
No impact on budget. All work performed in accordance with this Interlocal Agreement will be funded by the
Trac'yton Water District. This work is included in the PW&U work program for 2000 and 2001.
7. RESEARCIt SOURCES:
MEMORANDUM OF UNDERSTANDING
This MEMORANDUM OF UNDERSTANDhN'G between the City of Bremerton (CITY)
and the Tracyton Water District (DISTRICT) is for the purpose of clarifying the financial
obligations and use of financial resources for the work to be accomplished as set forth in
Interlocal Agreements dated February 29, 2000 and Ae,z~. ~, 2001 between the CITY
and DISTRICT.
The CITY and DISTRICT understand that the DISTRICT's responsibility for watermain
replacement is identified on Exhibit "A" of the February 29, 2000 Interlocal Agreement
as "Initial District Watermain Replacement Projects", Project ID numbers 01 through 21
inclusive (DISTRICT Projects), and the CITY's responsibility for watermain replacement
is identified as "Future City Substandard Watermain Up~ades", Project ID numbers F1
through F8 inclusive (CITY Projects).
Also, the CITY and DISTRICT understand that mfficient funding ex/sts through Public
Works Trust Fund and State Revolving Fund to complete both DISTRICT Projects and
CITY Projects, and it is the best interest of both CITY and DISTRICT to complete all
projects with the available funding.
Therefore, the CITY and DISTRICT agree that Section 6 "DISTRICT LOAN
PAYMENTS" of the Interlocal Agreement dated %u,~- 50 ,2001 is clarified as
follows:
The surcharges levied on DISTRICT customers, prior to and after DISTRICT
dissolution, to repay its loans from the Public Works Trust Fund and State
Revolving Fund shall be limited to the amount required to pay principal and
interest on that portion of the loans used to finance DISTRICT Projects. Principal
and interest on that portion of the loan proceeds used to finance CITY Projects
shall be repaid by the CITY.
Dated this __ day of ,200 l.
City of Bremerton Tracyton Water District
Ly~ S. Horton, Mayor
Exhibi! D
PUBLIC WORKS TRUST FUND
PRE-CONSTRUCTION LOAN AGREEMENT
NUMBER PW-99-691-PRE-114
Tracyton Water District
PART I: EN'IIRE AGREEM2ENT
This agreement, and incorporated attachments, contains all terms and conditions agreed to by the
DEPARTMENT and the LOCAL GOVERNMENT. This contract consists of nine pages and two
attachments. An attachment to this agreement, ATI'ACIt2vlENT I: SCOPE OF WORK, consists of a
description of local project activities, certification of the projecfs useful life, and identification of estimated
project costs and fund soumes and is, by this reference, incorporated into this agreement as though set forth
fully herein. In addition, ATTACHMENT II: ATTORNEY'S CERTIFICATION, is by this reference
incorporated into this agreement.
The DEPARTMENT and the LOCAL GOVERNMENT have executed this agreement as of the date and year
last written below.
DEPAKTlv[ENT OF COMMUNITY', TRADE LOCAL GOVERNMENT
AND ECONOMIC DEVELOPMENT(./~' X/~/~ ~~F,~Z~_~-'
Stev~e)ls ' X ~ z / t '-
TDitr;eCtOr. Local Government Division L~ ~-)/'qTitle ' ~/'' ('' ~ ci ~ ¢
Date Date [ ' !
Approved as to Form by ?/-- ~9 00 / ~,~ 4~
Attorney General Federal Taxpayer Identification Number
Signature On File
Suzanne Shaw
Assistant Attorney General
January 5, 1999
Date "77 ~'--' '~w ~C~r~
~IAR 0 6 2000
RECEIVED
MAY 1 7 2000 Page] 6
¢ffY OF BREAAL:RTON ENGIN~RS CT£DContractNumber $00-69100-078
Exhibil E
PART 1I: INTRODUCTION
This loan agreement is made and entered into by and between the DEPARTMENT OF COMMUNITY,
TRADE AND ECONOMIC DEVELOPMENT, (or its successor) a depar~nent of the state of Washington
(referred to as the "DEPARTMENT")' on behalf of the PUBLIC WORKS BOARD, or its successor,
(referred to as the "BOARD"), and Tracyton Water District (referred to as the "LOCAL GOVERNMENT").
The DEPARTMENT has received an appropriation fi.om the Washington State Legislature under the
authority of Chapter 43.155 RCW to provide financial assistance to selected units of local government for
the repair, replacement, reconstruction, rehabilitation, or improvement of bridges, roads, domestic water
systems, sanitary sewer, and storm sewer systems. Acting under the authority of Chapter 43.155 RCW, the
BOARD has selected the LOCAL GOVERNMENT to receive a Public Works Trust Fund loan for an
approved public works project.
PART III: PURPOSE
The DEPARTMENT and the LOCAL GOVERNMENT have entered into this agreement to undertake a
local public works project which furthers the goals and objectives of the Washington State Public Works
Trust Fund Program. The project will be undertaken by the LOCAL GOVERNMENT and will include the
activities described in ATTACHMENT I: SCOPE OF WORK, as well as in the Public Works Trust Fund
Application submitted to the BOARD by the LOCAL GOVERNMENT and upon which this agreement is
based. The assisted project must be undert, aken in accordance with PART IV: TERMS AND
CONDITIONS, and all applicable state and local laws and ordinances, which by this reference are
incorporated into this agreement as though set forth fully herein.
PART iV: TERMS AND CONDITIONS
The parties to this agreement agree as follows:
4.01 Rate and Term of Loan
The DEPARTMENT, using funds appropriated fi.om the Public Works Assistance Account, shall loan the
LOCAL GOVERNMENT a sum not to exceed $197,000.00. The interest rate shall be three percent (3%)
per annum on the outstanding principal balance. The term &the loan shall not exceed 5 years, with the f'mal
payment due July I, 2004.
4.02 Local Proiect Share
The LOCAL GOVERNMENT pledges an amount of locally-generated revenue not less than ten percent
(10%) of the total eligible portion of the project cost not funded by federal or state grants as identified in
ATTACHMENT I: SCOPE OF WORK, to be verified at the time of project close-out. Any change in the
percentage of locally-generated funds may require an adjustment in the loan amount or interest rate charged,
or both. In such event, the LOCAL GOVERNMENT agrees to execute an amendment to this agreement
adjusting the loan amount or interest rate, as appropriate.
Page 2 E
1999 PWTF Pr~-Construction Loan Agreement
CTED Contract Number S00-69100-078
Local project share must consist of expenditures eligible under WAC 399-30-030(3) and be related only to
project activities described in ATTACHMENT I: SCOPE OF WORK. These expenditures may be made up
to twelve (12) months prior to the execution of the loan agreement and verified at the time of project
close-out.
PUBLIC WORKS TRUST FUND MONIES MAY NOT BE USED TO REIMBURSE THE LOCAL
GOVERNMENT FOR ANY COSTS INCURRED PRIOR TO EXECUTION OF THIS LOAN
AGREEMENT.
4.03 15isbursement of Loan Proceeds
The DEPARTMENT shall issue warrants to the LOCAL GOVERNMENT for payment of allowable
expenses incurred by the LOCAL GOVERNMENT while undertaking and administering approved project
activities in accordance with ATTACHMENT I: SCOPE OF WORK. In no event shall the total Public
Works Trust Fund loan exceed ninety percent (90%) of the eligible actual project costs. The disbursement
of loan proceeds shall be initiated by the LOCAL GOVERNMENT on a Washington State Invoice Voucher
form provided by the DEPARTMENT. The loan funds will be disbursed to the LOCAL GOVERNMENT
as follows:
Within thirty (30) days of the formal execution of this agreement, a sum not to exceed seventy-five percent
(75%) of the approved Public Works Trust Fund loan shall be disbursed by the DEPARTMENT to the
LOCAL GOVERNMENT.
At the time of project completion, a Close-out Report, (refer to Section 4A9 for Close-out Report), shall be
submitted to the DEPARTMENT by the LOCAL GOVERNMENT certifying total actual project costs.
The final Public Works Trust Fund loan disbursement shall not bring the total loan in excess of ninety
percent (90%) of the eligible project costs or the total of $197,000.00 whichever is less, nor shall this
disbursement occur prior to the completion of all project activities and clearance of all Close-out documents
and/or any applicable documents from the Department of Revenue and the Department of Labor &
Industries. The Close-out Report shall serve as a contract AMENDMENT for determining the final loan
amount, interest rate, and local share.
I~ the event that the final costs identified in the Close-out Report indicate that the LOCAL GOVERNMENT
has received Public Works Trust Fund monies in excess of ninety percent (90%) of eligible costs, all funds
in excess of ninety percent (90%) shall be repaid to the DEPARTMENT within thirty (30) days of
submission of the Close-out Report.
Page 3t~
1999 PWTF Pre-Construction Loan Agreement
CTED Contract Number $00-69100-078
4.04 Interest Earned on Public Works Trust Fund Monies
All interest earned on funds disbursed by the DEPARTMENT and held by the LOCAL GOVERNMENT
shall accrue to the benefit of the LOCAL GOVERNMENT and be applied to the eligible costs of the
approved project. Benefits shall accrue in one of two ways:
1. Reduce the amount of the Public Works Trust Fund loan.
2. Pay part of the eligible project costs that are in excess of ATTACHMENT I: SCOPE OF WORK
estimates. (Overrun of project costs.)
The LOCAL GOVERNMENT shall establish procedures to ensure that all monies received from the Public
Works Trust Fund loan can be readily identified and accounted for at any time during the life of this loan
agreement. Such procedures shall consist of the establishment of a separate fund, account, sub-account or
any other method meeting generally accepted accounting principles.
4.05 Time of Performance
The LOCAL GOVERNMENT shall begin the activities identified within ATTACHMENT I: SCOPE OF
WORK no later than three (3) months after the date of loan agreement execution and reach project
completion no later than eighteen (18) months after the date of agreement execution.
Failure to perform within the time frame described in the preceding paragraph may constitute default of this
agreement and require the immediate repayment of any loan funds disbursed. In the event of extenuating
circumstances, the LOCAL GOVERNMENT may request, in writing, that the BOARD e~tend the deadline
for project completion. The BOARD may, by a two-thirds vote, extend the deadline.
The term of this agreement shall be for the entire term of the loan, irrespective of actual project completion,
unless terminated sooner as provided herein.
4.06 Rel~ayment
The first loan repayment under this agreement is due July 1, 2000, and subsequent installments are due on
July 1 of each year during the term of the loan. The first repayment under this agreement shall consist of
interest only at the rate of three percent (3%) per annum, calculated on a 360-day year of twelve 30-day
months, applied to funds received from the DEPARTMENT. Interest will begin to accrue from the date the
DEPARTMENT issues each warrant to the LOCAL GOVERNMENT. Subsequent repayments shall consist
of the principal balance due divided by the loan term remaining plus interest on the unpaid balance of the
loan. The final payment shall be an amount sufficient to bring the loan balance to zero.
The LOCAL GOVERNMENT has the right to repay the unpaid balance of the loan in full at any time, and
the right to repay at a faster rate than is provided in this agreement, provided that any such payment must
equal or exceed the amount normally due on an annual basis.
Page 4~
1999 PWTF Pre-Construction Loan Agreement
CTED Contract Number S00-69100-078
The LOCAL GOVERNMENT will repay the loan in accordance with the preceding conditions through the
use ora check, money order, or equivalent means made payable to the DEPARTMENT and sent to:
Department of Community, Trade and Economic Development
Administrative Services Division/Fiscal Unit
906 Columbia Street S.W.
P.O. Box 48300
Olympia, Washington 98504-8300
4.07 Repayment Account
The LOCAL GOVERNMENT shall repay the loan solely from utility revenues, general obligation
revenues, or a combination thereof. The name of the fund, account, or sub-account shall be '[1~/ 0
4.08 Default in Repayment
Loan repayments shall be made to the DEPART/vlZENT in accordance with Section 4.06 of this
agreement. A payment not received within thirty (30) days of the due date shall be declared delinquent.
Delinquent payments shall be assessed a daily penalty beginning on the thirty-first (3 I) day past the due
date. The penalty will be assessed on the entire payment amount. The penalty will be B,velve percent
(12%) per annum calculated on a 360-day year.
Upon default in the payment of any annual installment, the DEPARTMENT may declare the entire
remaining balance of the loan, together with interest accrued, immediately due and payable. Faiinre to
exercise its option with respect to any such repayment in default shall not constitute a waiver by the
DEPARTMENT to exercise such option for any succeeding installment payment which may then be in
default. The LOCAL GOVERNMENT shall pay the costs and reasonable legal fees incurred by the
DEPARTMENT in any action undertaken to enforce its fights under this section.
Page 5/3
1999 PWTF Pre-Construction Loan Agreement
CTED Contract Number S00-69100-078
'4.09 Loan Security
The LOCAL GOVERNMENT must select one of the following options for securing repayment of the
'/- loan. Please initial the appropriate option.
1. General Obligation: This loan is a general obligation of the LOCAL GOVERNMENT.
OR
2. __ Revenue Obligation: This option may be used only if the entire project is a domestic
water, sanitary sewer, storm sewer, or solid waste utility project. LOCAL GOVERNMENTS performing
a storm sewer project that have not created a storm sewer utility or a combined sanitary sewer/storm
sewer utility may not use this option. Projects providing for a mixture of bridge, road, domestic water,
sanitary sewer, and storm sewer activities may not use this option.
This loan is a revenue obligation of the LOCAL GOVERNMENT payable solely from the net revenue of
the utility system indicated below. Payments shall be made from the net revenue of the utility aRer the
payment of the principal and interest on any revenue bonds, notes, warrants or other obligations of the
utility having a lien on that net revenue. As used here, "net revenue" means gross revenue minus
expenses of maintenance and operations. The DEPARTMENT grants the LOCAL GOVERNMENT the
right to issue future bonds and notes that constitute a lien and charge on net revenue superior to the lien
and charge of this loan agreement.
Please choose and initial one of the following utility systems:
--. Water
Sanitary Sewer (Wastewater)
Stormwater
Water/Sanitary Sewer
__ Stormwater/Sanitary Sewer
Solid Waste
OR
3. __ Local Improvement District: Pursuant to RCW 35.51.050, the LOCAL
GOVERNMENT pledges to repay this loan fi-om assessments collected from a Local Improvement
District, Local Utility District or other similar special assessment district in which the improvements
financed by this loan are located. The name of the special assessment district is
Nothing in this section shall absolve the LOCAL GOVERNMENT of its obligation to make loan
repayments when due, and to adjust rates, fees, or surcharges, if necessary, to meet its obligations under
this agreement.
Page 6~
1999 PWTF Pm-Construction Loan Agreement
CTED Contract Number S00-691004}78
4.10 Recordkeeping and Access to Records
The LOCAL GOVERNMENT agrees to keep such records as the DEPARTMENT may require. Such
records will include information pertinent to work undertaken as part of the project, including demonstration
of compliance with the terms and provisions of this agreement and all applicable state and local laws and
ordinances. The LOCAL GOVERNMENT agrees to retain these records for a period of three years from
the date of project completion.
The DEPARTMENT and duly authorized officials of the state shall have full access and the right to
examine, copy, excerpt, or transcribe any pertinent documents, papers, records, and books of the LOCAL
GOVERNMENT and of persons, firms, or organizations with which the LOCAL GOVERNMENT may
contract, involving transactions related to this project and this agreement.
4.11 Reports
The LOCAL GOVERNMENT, at such times and on such forms as the DEPARTMENT or the BOARD
may require, shall furnish the DEPARTMENT with such periodic reports as it may request pertaining to the
activities undertaken pursuant to this agreement including, but not limited to, quarterly progress reports, the
Close-Out Report, and any other matters covered by this agreement. Failure to file periodic reports as
requested may result in termination of this agreement as per Section 4.15.
4.12 Indemnification
The LOCAL GOVERNM~ENT will defend, protect, indemnify, save, and hold harmless the
DEPARt, the BOARD, and the state of Washin~on from and against any and all claims, costs,
damages, expenses, or liability for any or all injuries to persons or tangible property, arising from the acts or
omissions of the LOCAL GOVERNMENT or any of its contractors or subcontractors, or any employees or
agents of either in the performance of this agreement, however caused. In the case of negligence of both the
DEPARTMENT and the LOCAL GOVERNMENT, any damages allowed shall be levied in proportion to
the pementage of negligence attributable to each party.
4.13 Amendments, Modifications, and Waivers
Except for an increase in the amount of the loan governed by this agreement, the LOCAL GOVERNMENT
may request an amendment of this agreement for the purpose of modifying the SCOPE OF WORK or for
extending the time of performance as provided for in Section 4.05. No modification or amendment resulting
in an extension of time shall take effect until a request in writing has been received and approved by the
Board in accordance with Section 4.05. No amendment or modification shall take effect until approved in
writing by both the DEPARTMENT and the LOCAL GOVERNMENT and attached hereto. No conditions
or provisions of this agreement may be waived unless approved by the DEPARTML*NT in writing.
4.14 Disputes
Except as otherwise provided in this agreement, any dispute concerning a question of fact arising under this
agreement that is not disposed of by this agreement shall be decided by a panel consisting ora representative
of the DEPARTMENT, a representative of the LOCAL GOVERNMENT, and a representative of the
BOARD. The panel shall reduce its decision to writing and furnish a copy to all parties to the agreement.
The decision of the panel shall be final and conclusive.
Page 7~
1999 PWTF Pm-Construction Loan Agreement
CTED Contract Number S00-69100-078
This clause does not preclude the consideration of questions of law in connection with decisions provided
for in the preceding paragraph provided that nothing in this agreement shall be construed as making final the
decisions of any administrative official, representative, or board on a question of law.
4. l 5 Termination for Cause
If the LOCAL GOVERNMENT fails to comply with the terms of this agreement, or fails to use the loan
proceeds only for those activities ideotifled in ATTACffMENT I: SCOPE OF WORK, the
DEPARTMENT may terminate the agreement in whole or in part at any time. The DEPARTMENT shall
promptly notify the LOCAL GOVERNMENT in writing of its determination to terminate, the reason for
such termination, and the effective date of the termination. Upon termination of the loan agreement, the
DEPARTMENT shall declare the entire remaining balance of the loan, together with any interest accrued,
immediately due and payable.
4.16 Govemine: Law and Venue
This agreement shall be construed and enforced in accordance with, and the validity and performance hereof
shall be governed by, the laws of the state of Washington. Venue of any suit between the parties arising out
of this agreement shall be the Superior Court of Thurston County, Washington. The prevailing party is
entitled to recover costs in accordance with Washington State Law (Chapter 4.84 RCW).
4.17 Severabilit¥ .
If any provision under this agreement or its application to any person or circumstances is held invalid by any
court of right~l jurisdiction, this invalidity does not affect other provisions of the agreement which can be
given effect without the invalid provision.
4.18 Proiect Completion
The DEPARTMENT will require and notify the LOCAL GOVERNMENT to initiate a Close-out Report
when the activities identified in ATTACHMENT I: SCOPE OF WORK are completed. In the report, the
LOCAL GOVERNMENT will provide the following information to the DEPARTMENT:
1. A copy of the Close-out Report.
2. A copy of the a resolution accepting the desiga project as being complete.
3. Certification that all costs associated with the project have been incurred. Costs are incurred when
goods and services are received and/or contract work is performed.
4. If applicable, copies of the approved closure reports from the Department of Revenue and the
Department of Labor & Industries, certifying that all sales taxes have been paid and appropriate
industrial insurance and prevailing wages have been paid.
_4.19 Project Close-out
In accordance with Section 4.03 of this agreement, the LOCAL GOVERNMENT will submit, together with
the Close-out Report, a request for a sum not to exceed the final tWenty-five percent (25%) of the loan
amount.
Page 8 6
1999 PW'rF Pre-Construction Loan Agreement
CTED Contract Number S00-49100-078
4.20 Audit
Audits of thc LOCAL GOVERNMENTS project activities may be conducted by the Municipal Division of
the State Auditor's Office in accordance with state law and any guidelines the DEPARTMENT may
prescribe. Payment for the audit shall be made by the LOCAL GOVERNMENT.
4.21 Project Signs
If the LOCAL GOVERNMENT displays, during the period covered by this agreement, signs or markers
identifying those agencies participating financially in the approved project, the sign or marker must identify
the Washington State Public Works Trust Fund as a participant in the project.
4.22 Utilization of Minorit~ and Women's Business Enterprises (MWBE)
The DEPARlqv[ENT reserves the right to add appropriate Minority and Women's Business Enterprise
language that is consistent with Initiative 200, which was approved by the voters on November 3, 1998.
The DEPARTMENT will advise the LOCAL GOVERNMENT of this language by letter..
4.23 Nondiscrimination Provision
During the performance of this contract, the LOCAL GOVERNMENT shall comply with all federal and
state nondiscrimination laws, including, but not limited to chapter 49.60 RCW, Washington's Law Against
Discrimination, and 42 U.S.C. 12101 et seq, the Americans with Disabilities Act (ADA).
In the event of the LOCAL GOVERNMENT'S noncompliance or refusal to comply with any applicable
nondiscrimination law, regulation, or policy, this contract may be rescinded, canceled, or terminated in
whole or in part, and the LOCAL GOVERNMENT may be declared ineligible for further contracts with the
DEPARTMENT. The LOCAL GOVERNMLqST shall, however, be given a reasonable time in which to
cure this noncompliance.. Any dispute of fact may be resolved in accordance with the Section 4.14,
Disputes.
PART V: SPECIAL ASSURANCES
The LOCAL GOVERNMENT assures compliance with all applicable state and local laws, requirements,
and ordinances as they pertain to :the design, implementation, and administration of the approved project.
Of particular importance are the following:
5.01 RCW 43.155.060
The LOCAL GOVERNMENT shall comply with the provisions of RCW 43.155.060 regarding competitive
bidding requirements for projects assisted in whole or in part with money from the Public Works Trust Fund
program.
5.02 WAC 399-30-030(3)
The LOCAL GOVERNMENT assures compliance with WAC 399-30-030(3) which identifies eligible costs
for projects assisted with Public Works Trust Fund loans.
Page 9~3
1999 PgrIF Pre-Construction Loan Agreement
CTED Contract Number S00-691004)78
PUBLIC WORKS TRUST FUND
Pre-Construction Program
ATTACHMENT 1: SCOPE OF WORK
PW-99-691~PRE-114
Tr~ER~'ton Water District
(Jur/sdiction)
Tracvton Water System Upgrade
(Project Title)
1. Provide a clear description of the project to be financed in part by a Public Works Trust Fund
loan. (Attach additional sheets if necessary):
The Scope of Work for this application is to provide desig,~ and bidding sen, ices for t,h,e Tracyton
Water System Upgrade improvements as identified fin the Capital Improvement Plan (Chapter 8) of
the Tracyton Water District lnterim WaterPlan (June 1998). The proposed improvements generally
include an additional connection to the Bremerlon water system; an upgrade of the existing
Fakgrounds Road pressure reducing valve (PRV) connection to the Bremerton water system;
replacement of substandard water dis~ibution mains and the addition of new water mains to connect
and loop system dead ends totaling approximately 22,200 feet of 8 inch main and 11,700 feet of 12
inch main constructed in the system.
2. The term of this loan will be five years. If the local government prefers the term of its loan to
be less than five years, the preferred loan term should be indicated: N/A years.
Signed: Gary Kee~, Commissioner
Date: January 12, 1999
Telephone: (360) 373-3060
JAN 1 4:2000
C:\My Documents\TRACYTON WATER SYSTEM UPGRADE\Scope of Work 1999 Pre-Construction Loan.dot
Scope of Work
Page Two
PW-99-691-PRE- 114
Estimated Project Costs:
Repair or Expansion Total
Replacement or Growth
Preliminary Engineer/ng $ completed $ $
Design Engineering $ 180,000 $ 0 $ 180,000
Bid-document Preparation $ 5,000 $ - 0 $ 5,000
Land/R-O-W Acquisition ' $ - $ $ _
Environmental Studies $ $ $
Sales or Use Taxes $ $ -- $
Contingency ( %) $ 37,000 $ 0 $ 37,000
TOTAL ESTIMATED COSTS $ 222,000 $ 0 $ 222,000-
~ated Fun___d Sources~:
A. Federal Grants $ 0
State Grants $ 0
B. Locally Generated Revenue $ 25,000
General Funds $ --
Capital Reserves $
Other Fund $
Rates
$
Assessments
(Lin, RID, ULm) $
Special Levies
Federal Loan(s) fi.om: (identify all)
$
$
State Loan(s) from: (identify all)
$
Other: identify sources)
$
$
TOTAL LOCAL REVENUE $ 25,000
C. PUBLIC WORKS TRUST FUND LOAN $ 197,000
C:\My Documents\TRACYTON WATER SYSTEM UPGRADE\Scope of Work 1999 Pre-Construction Loan.dot
Scope of Work
Page 3
PW-99-69 I-PRE- 114
Calculating Local Percentage: (Note: Please exclude any expansion/growth costs and funding before
calculating the local percentage.)
Calculate as follows:
Total Local Revenue
PWTF Loan + Total Local Revenue -- Local Loan Percentage 10%.
The local contribution must be at least:
Ten percent (10%) for a loan interest rate of 3%
Twenty percent (20%) for a loan interest rate of 2%
Thirty percent (30%) for a loan interest rate of 1%
C:\My Documents\TRACYTON WATER SYSTEM UPGRADE~Scope of Work 1999 Pre-Construc§on Loan.dot
,, r (
Public Works Trust Fund
ATrACHMENT Il: ATTORNEY'S CERTIFICATION
I am an attorney at law admitted to practice in the State of Washington and the duly appointed
attorney of the ~C~ -~0 ~ ~)~.~-~ ~ O,t~Kl~..~
(the LOCAL GOVERNMENT); and
I have also examined any and all documents and records which ara.pertinent to tho loan
agreement, including the application requesting this financial assistance.
Based on the foregoing, it is my opinion that:
1. The LOCAL GOVERNMENT is a public body, properly constituted and operating under the
. laws of the State of Washington, empowered to receive and expend federal, state and local
funds, to contract with the State of Washington, and to receive and expend the funds
involved to accomplish the objectives set forth in their application.
2. The LOCAL GOVERNMENT is empowered to accept the Public Works Trust Fund financial
assistance and to provide for repayment of the loan as set forth in the loan agreement.
3. There is currently no litigation in existence seeking to enjoin the commencement or
completion of the above-described public facilities project or to enjoin the LOCAL
GOVERNMENT from repaying the Public works Trust Fund loan extended by the
DEPARTMENT with respect to such project. The LOCAL GOVERNMENT is not a party to
litigation which will materially affect its ability to repay such loan on the terms contained in
the loan agreement.
4. Assumption of this obligation would not exceed statutory and administrative rule debt
limitations applicable to the LOCAL GOVERNMENT.
'g of Attorney Date
.×
Name
PUBLIC WORKS TRUST FUND
Pre-Construction Program
ATTACHMENT 1: SCOPE OF WORK
Pw-99-691-PRE-114
Tracvton Water District
(Jurisdiction)
Tracvton Water System Upgrade
(Project Title)
1. Provide a clear description of the project to be financed in part by a Public Works Trust Fund
loan. (Attach additional sheets if necessary):
The Scope of Work for this application is to provide design and bidding services for the Tracyton
Water System Upgrade improvements as identified in the "Capital Improvement Plan" (Chapter 8) of
the Tracyton Water District lnterirn WaterPlan (June 1998). The proposed improvements generally
include an additional connection to the Bremerton water system; an upgrade of the existing
Fairgrounds Road pressure reducing valve (PRV) connection to the Bremertnn water system;
replacement of substandard water distribution mains and the addition of new water mains to connect
and loop system dead ends totaling approximately 22,200 feet of 8 inch main and I 1,700 feet of 12
inch main constructed in the system.
The term of this loan will be five years. If the local government prefers the term of its loan to
be less than five years, the preferred loan term should be indicated: N/A years.
Signed: ~ ~/~ .~
ry Kee~,, Commissioner
Date: January 12, 1999
Telephone: (360) 373-3060
JAN 1 2000
C:\My Documents\TRAC'CfON WATER SYSTEM UPGRADELScope of Work 1999 Pre-ConstruclJon Loan.dot
Scope of Work
Page Two
PW-99-691-PRE-114
Estimated Proiect Costs:
Repair or Expansion Total
Replacement or Growth
Preliminary Engineering $ completed $ $
Design Engineering $ 180,000 $ 0 $ 180,000
Bid-document Preparation $ 5,000 $ 0 $ 5,000
Land/R-O-W Acquisition $ $ $
Environmental Studies $ $ $ ....
Sales or Use Taxes $ $ $
Contingency ( %) $ 37,000 $ 0 $ 37,000
TOTAL ESTIMATED COSTS $ 222,000 $ 0 $ 222,000
Anticivated Fund Sources:
A. Federal Grants $ 0
State Grants $ 0
B. Locally Generated Revenue $ 25,000
General Funds $
Capital Reserves $
Other Fund $
Rates $
Assessments
(LID, RID, ULID)
Special Levies $
Federal Loan(s) from: (identify ali)
$
State Loan(s) fi-om: (identify all)
$
$
Other: identify sources)
$
TOTAL LOCAL REVENUE $ 25,000
C. PUBLIC WORKS TRUST FUND LOAN $ 197,000
C:\My Docurnents\TRACYTON WATER SYSTEM UPGRADE\Scope of Work 1999 Pre-Construction Loan.dot
Scope of Work
Page 3
PW-99-691-PRE- 114
Calculatin~ Local Percentaee: (Note: Please exclude any expansion/growth costs and funding before
calculating the local percentage.)
Calculate as follows:
Total Local Revenue
PWTF Loan + Total Local Revenue = Local Loan Percentage 10%
The local contribution must be at least:
Ten percent (10%) for a loan fiaterest rate of 3%
Twenty percent (20%) for a loan interest rate of 2%
Thirty percent (30%) for a loan interest rate of 1%
C:\My Documents\TRACYTON WATER SYSTEM UPGRADE\Scope of Work 1999 Pre-Construction Loan.dot
AMENDNIENT NUMBER I
PUBLIC WORKS TRUST FUND LOAN AGREEMENT NUMBER
PW-99-691-PRE-114 BETWEEN
THE DEPARTMENT OF COMMUNITY, TRADE AND ECONOMIC DEVELOPMENT
AND
TRACYTON WATER DISTRICT
The purpose of this amendment is to extend the term of Public Works Trust Fund Loan Agreement
Number PW-99-691-PRE-114 fi.om five years to twenty years. This amendment is being entered into
based on Pre-Construct/un program policy adopted by the Public Works Board at/ts February 3, 1998
meeting,
The Washington State Department of Community, Trade and Economic Development (hereinafter
referred to as the DEPARTM~MT) and Tracyten Water District (hereinafter reformd to as the LOCAL
~s ° v laFdq Nlm~Tf~/~T°~¢-'W°rlcx 'D'a st' F trnd'Z~an-~m~" t ~~6~ ~PP, E~ ....
114 as described below.
Section 4.0~[ Rate mad~,.~_ is amended to read as follox, vs:
The DEPARTMENT, using funds appropriated fi.om the ?ublic Works Assistance Account, shall loan the
LOCAL GOVERNMENT a sum not to exceed $197,000.00. The interest rote shall be three percent (3%)
per annum on the outstanding principal balance. The term of the Ioan shall not exceed twenty years, with
the final payment due July I, 2019.
A copy of this amendment, consisting of one (1) page shall be attached to and incorporated into the
original agreement between the DEPARTMENT and the LOCAL GOVERNMENT. Any reference in
such agreement to the "agreement" shall mean "agreement as amended." All other items and conditions
of the original loan agreement or prior amendments shall remain in full force and effect.
IN WITNESS THEREOF, the DEPARTMENT and the LOCAL GOVERNMENT have executed this
amendment as of the date and year last written below.
DEPARTMENT OF COMMUNITY', TRADE
AND C MICDEVELOP ENT
Steve Wells - ---
Director, Local Goverrlment Division
Title Title
APPROVED AS TO FORM ONLY
10~ Day of May, 2000
Attorney General
By: Si~g~ature on File 3LIL 0 I~ 7001
Assistant Attorney General
(Print Name)
P..u O~.e.'~/6~t~l~ B o a r d AMORTIZATION SCHEDULE
t?~D...~' ~ ~/~o~_C~ ommunity, Trade and Economic Development
.2!~fl th~g~k~]~', Suite G2 09/25/2002
........ ~ '~ PW-99-691-P~-l14
T C ON WATER D ST CT
T~C~ON WATER SYSTEM UPG~E
P~cnts ~e due on thc 1 st of ~u~y of the years shown.
20 YE~S INTE~ST ' P~NCIPAL
2.00% ' PA~ENT B~CE
2000 $0.00 ~0.00 $0.00 $0.00
2001 $4.198.56 $7.776.32 $11~974.88 $147~750.00
2002 "$3,146.84 ~ ~ $9,907.40 $13,054.24 $178,333.21
2003 $3,368.52 $9,907.40- $13,275.92, $168,425~81
2004 $3,~70.37 $9,907~ $13,077.77 .... $158,518.41
2005 $2,972.2~ $9,907.40 $12,879,62 $148,611.02
2006 $2,77~.07 $9,907.40 $12~681.47 $138,703.61
2007 $2,575.92 $9.907.40 $12,48~.32
2008 ..... $2,377.78 $9,907.40 "$12,285.18 $118,888.81
2009 $2,179.63 $9,907.40 $ ~2~087.03
2010 $~,981.48 $9,~9~40 ~,888.88 -" $99,074.01
201i" $1,~83.3a $9,90~A0 "$11,690.74 ~' ' $89,166.61
2012
$1.585.18 $9,907.40 $1
2013" $~38J~03 $9,907,40 $11.294.43 $69,3~
2014 . $1,188.89 ~9,907.40 $1~09~.29 $59,~4.40
2015 $990.74 $9,907.40 ~10~898.14 $~9,~37.01
2016 . $792.~ $9,907.40 $10,700.00 $39,629.60
2017 $594.45 $9,907.40 $10 50~5 $29,722:~
2018 $396.29 -- ~ ....
$9~907.40 $10,303.69 $19,814.80
aunty 2002.
D~W ,~ gi47,750.00 I 07/20/2000 ]
D~W $3g,359.53 ~ 01/1~2002 ~
TOT /
Loan calculations are based on a 360-day year oft~'elvc 30-day months.
· . ~ DRINKING WATER g'WATE REVOLVING FUND
LOAN AGREEMENT
00-65120~033
TRACYTON WATER DISTRICT
PART I: ENTIRE AGREEMENT
This agreement, and incorp0~ated attachments, contains all terms and condi'rmns ag~-eed to by the PUBLIC
WORKS BOARD and the BORROWER, and no other statements or represel~tations written or oral, shall be deemed
a part thereof. This contract consists of nine pages and five attachments. ATTACHMENT I: SCOPE 017
WORK, consists of a desmSption of local project ~ctivities, certification of the project's useful life, and
iden!i'fication of estimated project costs and fired sources and is, by this reference, incorporated into th~s
agreement as though set forth fully herein In addition, ATTACHMENT II' ATTORNEY'S CERTIFICATION,
A2'-EACHMF. NT III: FEDERAL AND STATE REQUIREMENTS, ATTA. CHMENT tV- SMALL AND
DISADVANTAGED BUSINESS UTILIZATION REQUIREMENTS, and A~FI'AC HMEN-£ V:
CERTII~2ICATION REGAF, DING DEBARMENT, SUSPENSION, AND OTHER RESPONSIBILITY
MATTERS, are by this ~efmence incoxporated into this agreement.
The PUBLIC WOP-.KS BOARD and the BORROWER have executed this agreement as of the date and year last
written below.
DEPARTMENT OF COMMUNITY, BORROWER
Steve W¢IIs 1'~ amc
D~ ecto2:J~.~ocal Government Division
T~tle
APPROVED AS TO FORM ONLY
1~0~h Day of'
Christine O. Gregorie
Attorney General
By
Jeanne A. Cushmau
Assistant Attorney General
Federal Taxpayer Identification Number
Page 1
Exhibit F SR~ ~,. ^~em~t
Municipal
PART II:iNTRODUCTION
This loan agreement is made and entered into by and between the PUBLIC WORKS BOARD, (or its successor),
a department of~e state of Washington, and Tiacyton Water D/strict (referred to as the "BORROWER").
Acting under the author/ty of RCW 70.119A. 170 and 43.155.040, the BOARD has selected the BORROWER to
receive a Drinking Water State Revolving Fund loan for an approved project. The BORROWER will be a sub
recipient of funds provided by the United States Environmental Protection Agency, CFDA Number 66.468,
Title: Safe Drinking Water State Revolving Fund, award year' 2000.
PART III: PURPOSE
The BOARD and the BORROWER have entered into this agreement to undertake a local project which furthers
the goals and objectives of the Washington Slate Dnnking Water State Revolving Loan Fund Program. The
project will be undertaken by the BORROWER and will include the activities described in ATTACHMENT I:
SCOPE OF WOR~K. The assisted project must be undmtaken in accordance wifll PART IV: TERMS AND
CONDITIONS and all applicable federal, state and local laws and ordinances, including but not limited to these
specifically enumerated in ATTACHMENT I[I.
PART IV: TERMS AND CONDITIONS
The parties to this agreement agree as tbllows:
401 Rate ~an(l Tema of Loan
The BOARD, using funds received from tim Drinking Water Assistance Account, shall loan the BORROWER a
sum not lo exceed Tlrree M/II/on Eight 'l-honsand Four Hundred Ninety Dollars ($3,008,490) The interest rate
shall be Two and One Half Pelceut (25%) pet' annum on /lie outstanding prh~cipal balance The term of the
loan shall not exceed Twenty (20) years, with the final payment due October 1, 2021.
4Q2__.D~ursement of Loan Proceeds and Reqtfired Documentation
Warrants shall be issued to the BORROWER for payment of allowable expenses incurred by the
BORROWER wl~ile undertaking and administering approved project activities in accordance with
ATTACHMENT I: SCOPE OF WORK. The total Drinking Water State Revolving Fund Loan shall not
exceed One Hundred Percent (100%) of' the eligible actual project costs
The loan ftmds will be disbursed to the BOR.ROWER as follows:
The disbursement of loan proceeds shall be initiated by the BORROWER on a Washington State Invoice
Voucher form. Ail expenses must hay6 been incurred by the BORROWER at the time of voucher submittal.
Disbursement requests must be supported by bills or receipts as evidence that costs have beeh incurred.
Expenses incurred after February 13, 2001, are eligible for rehnbursement.
A loan fee will be assessed in the following manner:
Page 2
The first reques..t for reimbursement shall include an amount equal to 2% of the initial loan amount This entire
amount is non-refundable, regardless of the actual final loan amount. If the total loan amount is increased
through an amendment, an additional loan fee equal to 2% of the additional loan amount will be assessed afl
conti'act close-out.
In no case shall loan funds be disbursed for constt'uction activities until the following conditions'have been
met:
The BORROWER issues a Notice to Proceed which fbllows the £ormal award ora construction contract;
The BORROWER has completed the State Environmer~tal Review Process;
Thc Washington State Department of Health (DOH) has approved a project report and related construction
documents for all applicable activities described in ATTACHMENT I: SCOPE OF WORK.
, The project includes installation of source meters, if applicable, per WAC 246 290
At the time of project completion, a Close~out report (refer to section 4.10 for Close-out Report) shall be
submitted to the BOARD by the BORROWER certifying total actual project costs. The Close-out Report
shall include a copy of the Certification of Construction Fom~ flora the Washington State Depmlment of
Health
The final Drinking Water State Revolving Fund lean disbursement for project activities shall not bring the
total loan ia excess of One Hundred Percent (100%) of the eligible project costs. The Close-one Repot~ shall
serve as a contract AMENDMENT for determiuing the finat loan anaount
4.03 Time of Ferformance
The BO~-~LROWER shall begin the activities identified within A~FI'ACI~MENT I: SCOPE OF WORK no later
than ninety (90) days alter loau agreement execution, and reach project completion no later than thirty-six (36)
BlOUthS after the date of agreement execution.
Failure to pm form within the time fi-amc described in tl~e preceding paragraph may constitute default of this
agreement and reqoire tbe immediate repayment of auy loau funds disbursed Iu the event of extelmating
circumstances, the BOICROWER may request, m writing, that the BOARD exteud the deadline for project
completion. The BOA1LD may, by a two-thirds vote, exteod the t/me of completion.
The term of this agreement shall be Ibr the entire term of- the loan, irrespective of actual project completion,
unless temlinated sooner as provided herein.
4.04 Historical and Cultural Artifacts
The BOP.ROWER agzees that if historical or cultural artifacts am discovered during construction, the BORROWER
shall immediately stop construct/on and notify the local historical preservation officer and the state's historical
preservation officer at the Washington State Office of Archeology and Historic Prcservation
The BORROWER shall require tlns prevision to be contained in all'contracts for work or services related to
ATTACHMENT 1: SCOPE OF WOKK..
4 05 Recayment
The first loan repayment under this agreement is due October 1, 2002, and subsequent Installments are due on
October i of each year during the term of the loan. The first repayment trader this agreement shall consist of
Page 3
SRF Lo~n Agreement
Municipal Systerm
interest only at the rate of Two and One Half Percent (2.5%) per annum; calculated on a 360-day year of twelve
30-day months, applied to funds received. Interest will begin to accrue from the date each warrant is issued.
Subsequent repayments shall consist of the principal due divided by the loan term remaining plus interest on the'
. unpaid balance of the loan. The final payment shall be an amount sufficient to bnng the loan balance to zero
The BORROWER has the right to repay the unpaid balance of the loan in full at any time, and the fight to repay
at a faster rote than is provided in this agreement, provided that any such payment must equal or exceed the
principal amount no~nally due on an annual basis.
The BORROWER will repay the loan m accordance with the preceding conditions through the use of a check,
money order, or equivalent means made payable to the Department of Community, Trade and Economic
Development, or its successor, alld sellt to:
Depm~tment of Community, Trade and Economic Development
Admiuistrative Services Divisio~v'Fiscal Unit
906 Columbia Street SW
P.O Box 48300
Olympia, Washington 98504-8300
40~6 Rep_a3qnent Account
The BORROWER shall repay the loan solely fi'om utihty revenues, general obl~ation fffvenues$ or
combination thereof. The name of the fired, account, or sub account shall be ~O ~D
4.07 Default in Rep_~xt33e~n_t
Loan repayme~ts shall be made on the loan in accordallco with Section 4.05 of this agreement. A payment not
~eceived within thirty (30) days et'the due date shall be declined delinquent Delinquent paymm~ts shall be
assessed a daily pena!ty begimling on the thirty-first (3 l) day past the due date The penalty will be assessed
on the entire payment amount ~lhe penalty will be twelve percent (12~) per am~um calculated on a 360-day
year
Upon deht~lt in the payment efm~y annual installment, the BOARD may declare the entire m~naining balance of
the loan, together with interest accrued, immediatcly due and payable. Failure to exercise its option with ~espect
to any such repayment m dehult shall not constitute a waiver by tile BOARD to exercise such option for any
succeeding installment payme~t which may then be in default. The BORROWER shall pay the costs and
reasonable legal fees incurred by the BOAILD in any action undertaken to en£orce/ts rights under this section.
Page
~._~08 Loan 8ecur[12/
Th8 BORROWER must select one of the following options for securing repayment o£the loan. Please initial
tl~e appropriate option.
1. General Obligation: This loan is a general obligation of the BORROWER,
2. Revenue Obligation: This option may be used only if the entire project is a domestic water
project
This loan is a revenue obligation of the BORROWER payable solely from the net revenue of the utfltty system
indicated below. Payments shall be made from the net revenue of the utility after the payment of the principal
and interest on any revenue bonds, notes, warrants or other obligations of the ufihty having a lien on that net
revenue. As used here, "net revenue" means gross revenue minus expenses of maintenance ~'hd operations.
The BOARD grants the BOKROWER- the rigi~t to issue future bonds and notes that constitute a lien and
charge on net revenue superior to the lien and charge of this loan agreement.
If selecting the revenue obligation, please choose and initial one o£ the following utility systems:
_ ~/2~ Water
Combined Water Utility
(Water/Sewer; Water/Sewer/Irrigation; etc.)
OR
3. Local Improvement District: This loan is payable from special assessments collected
from a Local Improvement District, Local Utility District or any other similar special assessment district
created for the purpose of making the improvements financed by this loan. The name of the special
assessment district is
Nothing in this section shall absolve the BORROWER of its obligation to make loan repayments when due,
and to adjust rates, fees, or surcharges, ifnecessacw, to meet its obligations under this agreement
4.09 Project Completion
The BOARD will require and notify the BORROWER to initiate a Close-out Report when the activities
identified in ATTACHMENT I: SCOPE OF WOPd¢ are completed. ]~n the report, the BORROWER
provide the ~bllowing information to the BOARD:
1. A description of the actual work performed,.in addition to a certified statement of the actual dollar
amounts spent, from all fund soumes, in completing the project as described.
2. Certification that all costs associated with the project have been incurred. Costs are incurred when
goods and services are received and/or contract work is performed
Page 5
3. Copy of Certification of Construction Form fi~om the Washington State Department of Health.
4_~_10 Final Draw and Close-out ~,equirements
At the time of project completion, the BORROWER shall submit a Close-out Repmt to the BOARD. The
Close-out Report shall serve as a contract amendment for determimng the final loan amount. The BOARD
shall provide the Close-out Report form to the BORROWER..
4.11. Recordkeepin. g and Access to Records
The BOARD, the BOARD's ageats, and duly authorized officials of the State and Federal governments shall
have fi~ll access and the tight to examine, copy, excerpt, or transcribe any peFdnent documents, papers, records,
and hooks of the BORROWER and of persou~, firms, or organizations with which the BORROWER may
con,tact, involving transactions related to this project aud fl~is agreement.
The BORROWER agrees to retain these records for a period of six years fi'om the date that the debt was retired.
4.12 Reports
The BORROWER, at snch times and on such forms as the BOARD may require, shall furnish the BOARD with
such periodic reports as it may request pertaining to the activities undertaken pursuant to this agreement
including, but not limited to, qum~erly progress reports, MWBE status, the Close-out Report, and any other
matters covered by this agreement. Failure to lile periodic reports as requested may result m termination oftl~is
agreement as per Section 4.16.
4 13 Indemnification
[t is understood and agreed that this Agreement is solely fbr the benefit of the parties to the Agreemm~t and gives
no right to any other party. -the BOFd[OWER agrees that tile BOAIU) is acting only as lender and is not
directing or controlling its business as a manager, pmlner, owner, principal, or any other capacity. It is
understood and agreed that no joint vcnrure or partnership is l'bnned as a resolt of this Agreement. Each party
hereto agrees to be responsible and assume liability fbi/ts owu negligent acts or omissions, o~ those of/ts
officers, agents, or employees to the fullest allowed requircd by law, and agrees to save, indemni£y, defend and
hold the other parties harmless tkom any such liability In the case ofnegligence of more than one party, any
damages allowed shall be levied in proportion to the percentage of negligence attributable to each party; and
each party shall have the right to seek contribution from each of the other parties in proportmn to the percentage
of negligence attributed to each of the other parties
4.14 Amendn~_._.aents, Modifications, and Waivers
The BORROWER may request an amendment of this agreement for the purpose of modifying the SCOPE OF
WORK or for extending the time of peribnamnce as provided for in Section 4.03. No modification or
amendment resulting in an exteusion of time shall take effect t!ntil a request in wrihng has been received and
approved by the BOARD m accordance'with Section 4.03. No amendraent or modification shall take effect until
approved in writing by both the BOARD and the BORROW'ER and attached hereto. No conditions or
provisions of this agreement may be waived unless approved by the BOARD in writing
Page 6
4.15 Terr~_ination for Cause
If the BORROWER fails to comply with the terms of this agreement, or fails to use the loan proceeds only for
those activities identified in ATTACHMENT I: SCOPE OF WORK, the BOARD may terminate the agreement
in whole or in part at any time. Tile BOARD shall promptIy notify the BORROWER in writing of its
determination to terminate, the reason for such temlination, and the effective date of the term/nation. Upon
termination of the loan agreement, the BOA1-LD may declare the entire remaining balance of the loan, together
with ally interest accrued, immediately due and payable
4.16 Trot'iai ap~a!~n for Convenience
The BOARD may terminate this agreement in the event that federal or state funds are no longer available to the
BOARD, or are not allocated for the purpose of meeting the BOARD'S obligations under this agreelllent.
Tennination wilI be effcctlve when the BOARD sends written ~otjce of tmmination to the BORROWER.
4.17 Governing Law and Venue
This agreement shall be constrtied and enforced in accordance with, and the validity and perfomnance hereof
shall be governed by, the laws of the state of Washington. X/enue of any suit behveen the parties ahsing out of
this agreement shall be the Superior Com-t of Thurston County, Washington. The prevailing party is entitled to
recover costs in accordance with Washington btate Law (Chapter 4.84 RCW).
4.18 Severabilit¥
If any provision under this agreement or its appfication to any person or circumstances is held invahd by any
court of rightful jurisdiction~ this invalidity does not affect other provisions of the agreement which can bc g~ven
effect withoat the invalid provision
4.19 Audit
Audits of the BORROWER'S project activities may bt: conducted by the Off'ce of the State Aoditor Audit
costs are etigib]e project costs
The BORROWER shall maintain its records and accounts so as to :Pacilitate the audit requircments of the
Department of Community, Trade and Economic Development, or its successor.
The BORROWER is responsible for any audit exceptions mcun'ed by its own organization. The BOARD
reserves the right to recover fi:om tile BORROWER all disallowed costs resulting flora the audit.
BORROWERS expending $300,000 or more in any fiscal year in federal funds from all sources, dh'eot and
redirect, are required to have au audit conducted in accordance with Office of Management and Budget
(OMB) Revised Circula~ A-133 "Audits of Institutions of Higher' Education and Other Non-Profit
hrsfitutions"
BORROWERS expending less than $300,000 or more in any fiscal year in federal funds from all sources,
indirect and direct, may have audits conducted by the Office of State Auditor (OSA) on the nom~al cycle used
by OSA
Page 7
4.20 project Monitoring.~nd Inspectjg__n
The BOARD and the Washington State Department of Health reserve the right to enter the premises during business
hours to monitor project activities throughout the eontyact period to assess progress, review expenditures and
documenta'don, to review files, and to inspect the system throughout the period of the Agreement
4_.21 Project Sig~
If the BORROWER displays, during file period covered by this agreement, signs or mar'kers identifying those
agencies participating financially in the approved project, the sign or marker must identify the Washington State
Public Works Board Drinking Water State Revolving Fund, and the Washington State Department of Health, as
participants in the project.
4 22 Utilization of Minority and Women Business Enterprises (MWBE)
As mandated by the U.S. Environmental Protection Agency, The BORROWER is required to follow the steps
identified in ATTACHMENT IV: SMALL AND DISADVANTAGED BUSINESS UTILIZATION
REQUIREMENTS. The BORROWER is required to furnish the BOARD with such periodic reports as it may
request pertaining to the utilization of disadvantaged bn~hresses. The goals for the utilization of diaadvantaged
businesses are stated below.
Su~ 10% IvlBE 6% WBE
quipme~t I0% MBE [ 6% WBE .
i Purchased Services 10% MBE [ 6% W]3E !
423 Utilization o£Sl~:ml} Business hr ~ural Areas (SBRA_).
The BORROWER is required to fbl[ow the steps identified m ATTACf-IMENT fV: SMALL AND
DISADVANTAGED BUSYNESS UTIJ_,IZATION REQUIREMENTS. The "Fai~' Share" percentage for SBP, Jks
is 0.5%
4 24 flondisenmination Provision
During the performance of this contract, the BORROWER shall comply with all federal and state
nondisc~m~ination laws, including, but not limited to Chapter 49.60 RCW, Washington's Law Against
Discrimination, and 42 U.S.C. 12101 et seq, the Americans with Disabilities Act (ADA).
In the event of the BORP, OWER'S noncompliance or refusal to comply with any applicable nondiscrimination
law, regnlal[on, or policy, this contract may be rescinded, canceled, or temainated in whole or m part, and the
BORROWER may be declared ineligible for fu~"dmr contracts with the BOARD. The BOIL,ROWER shall,
however, be givexr a reasonable time m which to cure this noncompliance
4.25 Transfer of Ownership
During the term of this loan, any change m ownership of the wa~er system(s) improved with funds received by
the BORROWER under this loan agreement must be approved in writing by the BOAPd:) As a condition of
approval, the BOAILD reserves the right to demand payment in full of the outstanding principal balance of the
loan.
Page 8
Sx'~FLa~n A~eement
Mumc~alSy~em~
p__ART_V: SPECIAL ASSURANCES
The BORROWER assures compliance with all applicable federal, state and local laws, requirements, and
ordinances as they pertain to the design, implementation, and administration of the approved project. Of
particular importance are the following:
5.01 Bidding Requirements
The BORROWER shall comply with the provisions of RCW 43.155.060 regarding competitive bidding
requirements for projects assisted in whole or in part with money from the Drinking Water State Revolving Fund
program
5.0~2 Eligible Project CoStS
The BORROWER assures compliance with WAC 399-30-030(3) which identifies eligible costs for projects
assisted with this loan. ~k~ ct-t"t-o, c~ ~ el
5.03 Prevailing Wage_
The BORROWER assures compliance with the pxevailing wage laws of the Washington State Public Works Act,
Chapter 39.12 RCW.
5 04 Federal and State Requir~cments
The BORROWER assures compliance with all applicable Federal and State tcqmrements, including but not
limited to those listed in Attachment I[I and IV.
5.05 Suspension and Debam~ent
The BO[~ROWER certifies it is not presently suspended or debmred from receiving federal follds The
BOI~ROWER bas satisfactorily completed the E~PA Certification contaiued m Attachment V: Certification
Regarding Debarment, Suspension, and Other Responsibility Matters
The BORROWER shall require'all contractors and subcontractors receiving contracts of $100,000 or more for
work listed in Attachment I; Scope of Work, to certiiy that the federal govm nment has not suspended or debarred
them from receiving {:~deral fimds. Suspension and debarment certification forms shall be provided by tile
BOARD.
The BORROWER agrees to keep debarment and suspension documentation on file in project records.
5.06 No Wa'v~
Waiver of any covenant, term, or condit!on of'this Agaeeme ~t bb( any pa ~y shall not be dee~ned a waiver of any
subsequent breach of the same covenant, term, or coudition. No waiver of any defhult or breach by any party
shall be implied from any failure to take actiml upon stroh det:ault or breach, if the defanlt of breach persists or
repeats.
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Municipal Systems
DRINKING WATER STATE REVOLVING FUND
ATTACHMENT h SCOPE OF WORK
LOAN NUMBER 00-65120-033
TRACYTON WATER DISTRICT
(Recipient)
WATER DISTRICT UPGRADE (CONNECTION TO BREMERTON)
(Project Title)
1. Provide a clear description of the project to be financed ~n part by a Drinking Water
State Revolving Fund loan. (Attach additional sheets if necessary)'
The Project mvobfes the installation of approximately 29 000 hneal feet of ductile ~ron
water pipe. 2 pressure reducing valve vaults, 50 fire hydrants, 13 connect,ohs to the
existing water system, 6 air vacuum release assemblies, 4 blow-off assembhes, 289
service connections and all surface restoration.
2. The term of this loan w!ll be based on an engineer's certification of the expected
'J.sefu! !if9 of [he im~rovements~ as stated below, or 20 years, whichever is less If
the recipient prefers the term of its loan to be less than either 20 years or the usetul
life of the improvements, the pre[erred loan term should be
indicated: 20 years
3.[. Thomas E. Knuckey , licensed engined.r, certify that the average expected
useful life for the improvements described above is 20 . years
Signed:
Telephone: (360) 478-7976 ' ........ ~P~ I 6:2801
SCoP~ °~.W~-rk, UWSRF Eoan A~reement Number
page Two
Est mated Proiect Costs:
Preliminary Engineering $ Completed
Design Engineering $ 220,000
O?~¢ Bid Document Preparation $
Land/Right-Of-Way Acquisition $
Sales or Use Taxes $
Other Fees $
Construction Inspection $ __ 72,000
i~,-- Start-up Costs' $
Relocation Costs $
Financing Costs $
Audit Costs $
.~ Construction $ 2,657,500
'~ Contingency (__ %) $
Other (Specify) $
Other (Specify) $
TOTAL ESTIMATED PROJEC1- COSTS $ 2,949,500
Anticipated Fundinq Sources'
A Federal Grants
State Grants $
B. Locally Generated Revenue
Capital Reserves $
Water Rates
Assessments (LID, RID, ULID) $
Special Levies $
Federal Loan(s) from: 0dentify all)
$
$
State Loan(s) from_ (identify all) --
$
$
Other: (identify sources)
$
$
TOTAL ANTICIPATED FUNDING $ $
SOURCES 2,949,500
DWSRF Loan
C. DWSRF CONSTRUCTION LOAN (for project costs) $ 2,949.500
DWSRF LOAN FEE (2% of construction loan) $ 58,990
TOt,AL DWSRF LOAN $ 3,008,490
· ,-~. , ..-:.~ .: .... · .... ~ ..........
.i J__2~ .............. ~3)oBq,~O
Drinking Water State Revolving Fund
ATTACHMENT [1: ATTORNEY'S CERTIFICATION
I am an attorney at law admitted to practice in the Stale of Washington and the duty appointed
attorney of the
(the BORROWER); and
I have also examined any and ail documents and records which are pedinent to the loan
agreement, includin9 the application requesting this financial assistance.
Based on the foregoing, It is my opinion that:
The BORROWER is 8 public body, properly constituted and operating under the laws of the
State of Washington, empowered to receive and expend federal, state and local funds, to
contract with the State of Washington, and to receive and expend the funds involved to
accomplish the objectives set forth in their application
2 The BORROWER is empowered to accept the Drinking Water State Revolving Fund financial
8ssfstance and to provide fcc repayment of the loan es set fodh in the Joan agreement.
3 There is currently no litigation in existence seeking to enjoin the commencement or
completion of the above-described public facilities project or to enjoin the BORROWER from
repaying the Drinking Water State Revolving Fund loan extended by the DEPARTMENT with
respect to such project. The BORROWER ~s not a party to litiga¢on which will materially
affect its ability to repay such 10an on the terms contained in the loan agreement.
4. Assumption of this obligation would not exceed statutory and administrative rule debt
ons~ the BORROWER
Signature of Attorney Date~-
I
Name
Address /
Attachmcnl I11
Federal and .State Requirements
I) Exlvironmcntal Aulhorilics
a) /\rcheoh)gical and }{istoUc P~c~c~vmion Act of 1974. Public haw 86-523 as amended
b) Clean A~r Ach Pubhc I :m S4 159 as ~m~cndcd
d) Endangered Species Act. ['uhlic I aw ')3-20s ab amended
0 F'loodpkm~ ,Management. Iixccuti~e ()'.dc~ J 1934 as mucndcd
g) P~otecthm ol kVed:mds, I~xcculixc f)rdcr 11990
2) I<comm)ic ami Mi~cellaueoux :kuth.xitic~
;ullClldCd. J~XCULJIIxc ( )ldCl' ] ~ J2
d) Dcbarg~cnl []lld Nll*I)CIISIt)Ii. l<xcctrhxc ()tdcr 12549
3) Social Policy Authorities
a) Age I)ixcrin,i~ahon Act ot 1975. Public l.axv 94-135
h) 'fdic VI of thc Ct~d ](ighls Act of Ig64. Pnb]ic J ax~
c) Section 13 (al'thc [/ctJt'l'ilJ Wi~[CI I'olh:iion ('oran,1 Acl AlllclldlllCtlls uf 197~. Public Law
92-50g (Ibc ('lc:tn ~Vatcr Act)
Orders 11914 :tlld I
C) t{t]Lla] I{ml)lo~mcnt [)pl~Ol'lttl~ty. ['.xcctilt~c ()zdcr 112.16
l) Women's and Mimx/tybusmc~s l{ptclp:ise, l[xccLmvcr)rdc~5 11625, 12138and 12432
Section 129 of thc Small Ilusmess Adminis0abon Reatuh{wizauon and Amcudment Act
ot' 1988. l>ubhc I.aw
Page I
Attachment
a) Chapter 36.70A R(.'\V. (,;rm'4h M:magcmenl Act
b) Chaptcr 39.80 RCW, Contracts tbr Architectural and }(l~gincc~))~g S~:r~iccs
(.'haptm- Y) 12 R('W, XV~shington Sta~e [)tl)~[ic ~'ol'ks Act
d) ('haptcr 43.20 R(;~V, State 13oard ol [Icalfll
c) Chap~o' 4370 RC'W, Dcparlmcnt ol ]Icalth
0 ('haptcr 70 116 I{CW, Public Walcr Systems {.7t)ordinatiml Act t)[' 1977
g) ('}mplo' '/0. I 19 R('W, Public Wato' Supply S3slcms ('cititit:thon and RegulaTion
()pcratitm~
J) ('halMC~ 24(1-2')1 WA( ', (Jr~lklp tt }~ub~ic Wulcl
1)(.hap{el' 2-1fi-29~ WA(', Wale; Sy~lcJ:]S ('oo~dmatim~ Act
( haptct 2d()-29X W.A('. I),'i,~ki)~g XVw. c~ Opct'alh/g l'c~ mits
n) ('hat)let 2.~fi-q95 WA('. SalclHlc Syqcm Nlanagcmcn~
p) I itlc 175 W..~(. I)cpa~m~cnt ,Il ]'.cology
Page 2
Attachment IV
SMALL AND DISADVANTAGED BUSINESS IJTILIZATION REQUIREMENTS
Affirmative steps shall include:
1. Placing qualified small and minority businesses and women's business enterprises on
solicitation listsi;
2. Assuring that small and minority businesses, and women's business enterprises are solicited
whenever they are poteutial sources;
3. Dividing total requirements, when economically feasible, iato smallcr tasks or quantities to
pemuit maximum participation by small and minority business, and women's business
enterprises;
4 Establishing delivery schedules, ~vherc tim requirement permits, which encourage
pm'ticipatiou by small and minority business, and women's business enterprises;
5. Using the services and assistance of the Small Bosiness Administratioa, and lhe Minority
Business Development Agency of tbe Department of Commerce; and
6. Requiring the prime coutractor, if subcontracts are to bc let, to take thc 5 affirmative steps
listed above
i Qualified Women and Minority business enterprises may be found on the Interact at
www.omwloe.wa.qov or by contacting the Washington State Office of Minority and Women's
Enterprises at 360-704-1181.
l:\Contracting\SRF~RF LA Atlachm=n~sXDWSRF Attach IV.doc
ATTACHMENT V
Unrt~J St~e~ F~'~m~meBta~ f~atectJOn ,~en~y
· - Certification Regardin r
Debarment, Suspension, and Other Responsibility Matters
The prospective participant; certifies to t.he best of its knowledge and belief that It and ~ts principals:
(a) Are not pi'~sently debarred, suspende~J, proposed for debarment, declared Ineligible, or voluntarily
excluded from COvered trane, actions by any Federal department or agency;,
(b) Have not within a three year period preceding this proposal been convicted of or had a Cl~il.Judger~ent
rendered against them .for Commission of fraud or a cdmlnal off~nse In co0nectlon with obtaining
attempting t~ obtain, or performing a public (Feder~J, State, or local) trans~ction or contract Under a
public transaction; violation of Federal or St~.te antitrust statutes Or commission of embezzlement,
theft, forgery, bdbery, falsification or destruction of records, ma~ing false statament~ or receiving
stoien property; ,
(c) Are not presently indicted for or otherwise cHmlnally or civilly ch~.rged by a government endtv ~FPdnrnl
St%t.e.: .o..r local), with commission of arty. cf the Offenses enumerated In ,~ara~r--h
rd) Have n?t within a threetyear Reriod preceding this app~icat~o/proposal had one or more public
transactions (Federal, State. or local) terminated for cau se or de'fault.
I understend thai a false statement on this certification may be grounds for rejection of this proposa or
term[ha[loB of the award· In addition, under 18 USC Sec. 1001. a false statement may result in a fine o[ up
!o $10,000 or imprisonment for up to 5 years, or both.
GARY KEENAN. COMMISSIONER
[] [ am unable to certify to the above statements. My explanation i~ a~ached
EXHIBIT G
[Legal Description of Watershed Property]
The Southwest Quarter of the Northwest Quarter of Section 2, Township 24 North, Range 1
East, W.M. in Kitsap County, Washington; except the following described property:
beginning at the Northwest comer of said Section; thence South 2° 57' 05" West, 2,778.15
feet to the West Quarter Comer of said Section; thence North 89° 58' 24" East, 560 feet;
thence North 2° 57' 05" East, 400 feet to the Point of Beginning; thence continuing North 2°
57' 05" East, 220 feet; thence South 89* 58' 24" West, 220 feet; thence South 2* 57' 05"
West, 220 feet; thence East to the Point of Beginning. Together with and Subject to
easements. Situate in Kitsap County, Washington. Also known as Kitsap County Assessor's
Tax Parcel No. 022401-2-003-2008.
Exhibit G
EXHIBIT It
[Assets to be retained by the Tracyton Water District]
1) The District's Community Hall identified as follows;
Address: 4990 Tracyton Blvd., Tracyton, Wa.
Tax Parcel Number: 4474-014-015-0003.
Legal Description: Lot 15, Block 14, First addition to Tracyton, according to Volume
1 of Plats, page 37, records of Kitsap County, Washington.
2) Street lighting system in the franchise area.
3) Tail insurance policy as evidenced by the attachment to this exhibit and identified as
Exhibit H- 1.
4) Cash and financial accounts as follows: All Tracyton Water District ("District") cash and
other financial accounts currently of record to assist in the dissolution of the District;
provided, however, that upon the official dissolution date of the District, or as soon as
practical thereafter, the cash and balance of funds remaining in all of said District accounts
shall be conveyed to the City of Bremerton and become its sole property.
5) Other property as follows: the Districts Compaq computer and printer, the District's 4-
drawer filing cabinet, and the District's records which property will be conveyed to the Port
of Tracyton at a subsequent per the District's prior agreement with the port.
Exhibit H
EXHIBIT I
Return Address: City Clerk
City of Bremerton
239 Fourth Street
Bremerton, WA 98337
AUDITOPJRECORDER'S INDEXING FORM
Document Title(s): 1. Statutory Warranty Deed
Reference Number(s) of Documents assigned or released:
Grantor(s): l. Tracyton Water District
~ Additional names on page of'document.
Grantee(s): 1. City of Bremerton
[~ Additional names on page of document.
Legal Description: SW ¼ NW ~A S2 T24N R1E
(abbreviated)
[~ Additional legal is on 2 of document.
Assessor's Property Tax Parcel/Account Number: 022401-2-003-2008
STATUTORY WARRANTY DEED
Tracyton Water District, ("Grantor"), a corporation, for and in
consideration of mutual benefits derived and/or other valuable consideration receipt of which is
hereby acknowledged by Grantor, conveys and warrants to the City of Bremerton, a Washington
municipal corporation ("Grantee"), the following described real property situated in Kitsap County,
State of Washington.
The Southwest Quarter of the Northwest Quarter of Section 2, Township 24 North,
Range 1 East, W.M. in Kitsap County, Washington; except the following described
property: beginning at the Northwest comer of said Section; thence South 2° 57' 05"
West, 2,778.15 feet to the West Quarter Comer of said Section; thence North 89° 58'
24" East, 560 feet; thence North 2° 57' 05" East, 400 feet to the Point of Beginning;
thence continuing North 2° 57' 05" East, 220 feet; thence South 89° 58' 24" West,
Exhibit I
220 feet; thence South 2° 57' 05" West, 220 feet; thence East to the Point of
Beginning. Together with and Subject to easements.
Subject to covenants, conditions, restrictions, reservations of rights, and easements of record,
if any, affecting title, including those shown on any recorded plat or survey.
DATED this day of ,2003.
GRANTOR:
TRACYTON WATER DISTRICT
By:
Its:
STATE OF WASHINGTON )
COUNTY OF KITSAP )
On this __ day of ,2003, before me a Notary Public in and for the State
of Washington, personally appeared , to me known to be the of
Tracyton Water District, a . corporation, that executed the foregoing instrument, and
acknowledged it to be the free and voluntary act of said corporation, for the
uses and purposes mentioned in this instrument, and on oath stated that he was authorized to execute
said instrument.
-Notary Seal Must Appear Within This Box-
IN WITNESS WHEREOF, I have hereunto set my hand and official seal the day and
year first above written.
NOTARY PUBLIC, in and for the State
of Washington, residing at
My appointment expires
APPROVED AS TO FORM:
ROGER A. LUBOVICH, City Attorney
Exhibit 'J'
TRACYTON WATER DISTRICT
Legend
Tracyton Water Service Area
Trecyton Water D,S ct I inch equals 1,600 feet
F:xhibit d
Return Addres.~: Atm: City Clerk
City of Bremerton
239 Fourth Street
Bremerton, WA 98337
AUDITOR/RECORDER'S INDEXING FORM
Document Title(s): 1. Memorandum of Interlocal Agreement
Reference Number(s) of Documents assigned or released:
Grantor(s): 1. Tracyton Water District
[] Additional names on page of document.
Grantee(s): 1. City of Bremerton
[] Additional names on page of document.
Legal Description: N/A
(abbreviated)
~ Additional legal is on page of document.
Assessor's Property Tax Parcel/Account Number: N/A
MEMORANDUM OF INTERLOCAL AGREEMENT
This Memorandum of Interlocal Agreement is entered into on the date fully executed
below, by and between the City of Bremerton, a Washington municipal corporation (hereinafter
referred to as "City") and Tracyton Water District (hereinafter referred to as "District").
Pursuant to RCW 35.13A.070, Chapter 39.33 RCW, the Intergovernmental Disposition
of Property Act, and Chapter 39.34 RCW, the Interlocal Cooperation Act, the District and City
entered into an agreement entitled "Interlocal Agreement Between the City of Bmmerton and
Tracyton Water District for Assumption of Rights, Powers, Duties, Obligations and Transfer of
Assets of Water District" on ,2003, to convey and deed to the City all of the
District's interest in assets including title to certain real property and Facilities and assets of the
District as set forth in said agreement and the City agreed to assume all rights, duties, powers and
obligations of the District, including loan obligations.
MEMORANDUM OF INTERLOCAL AGREEMENT - 1
Exhibit K
IN WITNESS WHEREOF, the parties have executed this Memorandum of Interlocal
Agreement.
CITY OF BREMERTON TRACYTON WATER DISTRICT
By: By:.
Print Name: Cary Bozeman Print Name:
Its: Mayor Its:
DATE: DATE:
STATE OF WASHINGTON
SS.
COUNTY OF KITSAP
I hereby certify that I know or have satisfactory evidence that Cary Bozeman is the person
who appeared before me, and said person acknowledged that he signed this instrument, on oath
stated that he is authorized to execute the instrument on behalf of the City of Bremerton as its
Mayor, and such execution to be the free and voluntary act of such party for the uses and purposes
mentioned in the foregoing instrument.
-Notary Seal Must Appear Within This Box-
IN WITNESS WHEREOF, I have hereunto set my hand and official seal this __ day of
,2002.
NOTARY PUBLIC, in and for the State
of Washington, residing at
My appointment expires
MEMORANDUM OF INTERLOCAL AGREEMENT - 2
STATE OF WASHINGTON
SS.
COUNTY OF KITSAP
I hereby certify that I know or have satisfactory evidence that
is the person who appeared before me, and said person acknowledged that he/she signed this
instrument, on oath stated that he/she is authorized to execute the instrument on behalf of the
Tracyton Water District as its , and such execution to be the free and
voluntary act of such party for the uses and purposes mentioned in the foregoing instrument.
-Notary Seal Must Appear Withi~l This Box-
IN WITNESS WHEREOF, I have hereunto set my hand and official seal this __ day of
,2002.
NOTARY PUBLIC, in and for the State
of Washington, residing at
My appointment expires
APPROVED AS TO FORM:
ROGER A. LUBOVICH, City Attorney
RSLEGAL~iles\Current Active Files\Tracyton Water DistrictWlemorandum of Agreement.doc
MEMORANDUM OF INTERLOCAL AGREEMENT - 3
+Browse: Next Previous First Last Update Delete Restart X - Exit +
+Retrieve the Next record +
+Found: 8 Record(s) MAINTAIN Contract Transactions +
+ Contract Number 4065 +
+ +
+Vendor Name TRACYTON WATER DISTRICT +
+Subject WATER SYSTEM UPGRADES +
+Department PW - UTIL +
+Status Code GOV +
+ Amount +
+ Begin Date 02/29/2000 +
+ Insurance End Date +
+ Type Amount Review Date 06/15/2004 +
+ +
+ +
+ +
+ Insurance Total $0.00 +
+ Insurance Review Date +
+ +
+ Comments EFFECTIVE UNTIL COMPLETION & LOANS REPAID +
+ REVIEW DATE FOR TRACKING PURPOSES ONLY +
+ +
MEMORANDUM OF UNDERSTANDING
This MEMORANDUM OF UNDERSTANDING between the City of Bremerton (CITY)
and the Tracyton Water District (DISTRICT) is for the purpose of clarifying the financial
obligations and use of financial resources for the work to be accomplished as set forth in
Interlocal Agreements dated February 29, 2000 and tq/t~{ 50,2001 between the CITY
and DISTRICT.
The CITY and DISTRICT understand that the DISTRICT's responsibility for watermain
replacement is identified on Exhibit "A" of the February 29, 2000 Interlocal Agreement
as "Initial District Watermain Replacement Projects", Project ID numbers 01 through 21
inclusive (DISTRICT Projects), and the CITY's responsibility for watermain replacement
is identified as "Future City Substandard Watermain Upgrades", Project lD numbers F1
through F8 inclusive (CITY Projects).
Also, the CITY and DISTRICT understand that sufficient funding exists through Public
Works Trust Fund and State Revolving Fund to complete both DISTRICT Projects and
CITY Projects, and it is the best interest of both CITY and DISTRICT to complete all
projects with the available funding.
Therefore, the CITY and DISTRICT agree that Section 6 "DISTRICT LOAN
PAYMENTS" of the Interlocal Agreement dated/)pOt 3o , 2001 is clarified as
follows:
The surcharges levied on DISTRICT customers, prior to and after DISTRICT
dissolution, to repay its loans fi.om the Public Works Trust Fund and State
Revolving Fund shall be limited to the amount required to pay principal and
interest on that portion of the loans used to finance DISTRICT Projects. Principal
and interest on that portion of the loan proceeds used to finance CITY Projects
shall be repaid by the CITY.
Dated this~~ day of ,,j~' / 2001.
City of Bremerton Tracyt~o..la--WaT~, District
INTERLOCAL AGREEMENT
BETWEEN
THE CITY OF BREMERTON AND TRACYTON WATER DISTRICT
Regarding Financing the Design and Construction of
Water System Upgrades within Tracyton Water District
THIS INTERLOCAL AGREEMENT is made and entered into this ~ day of
t~,Jal ,'~, 2001, by and between the City of Bremerton (h~reinafter "CITY") and
Tra~yton '~Vater District (hereinafter "DISTRICT"), together referred to as the "PARTIES ".
WHEREAS, Chapter 39.34 RCW permits local government units to make the most
efficient use of their power by enabling them to cooperate to their mutual advantage and thereby
to provide services and facilities in a more efficient manner, and
WHEREAS, the CITY and the DISTRICT, by Agreement dated June 29, 1966 (the
Service Agreement), provide water services to customers within the DISTRICT's water service
area, and
VqHEREAS, the CITY and the DISTRICT entered into an agreement dated February 29,
2000 for the Design, Construction and Financing of Water System Upgrades within Tracyton
Water District in Anticipation of District Dissolution, and
VqHEREAS, the DISTRICT is obligated for all costs of the Project, including, but not
limited to; administration, design, procurement, construction, inspection, and securing financing,
including Bond Counsel fees, if any, and
WHEREAS, the DISTRICT, with the assistance of the CITY, secured a Public Works
Trust Fund loan for the design of the Project, and
WHEREAS, the DISTRICT, with the assistance of the CITY, secured a State Revolving
Fund loan for the capital construction of the Project, and
WHEREAS, the PARTIES desire to establish the method by which capital construction
of the Project, including construction, inspection, and administration will be financed, and
WHEREAS, the CITY is, subject to reimbursement by the DISTRICT, making and will
continue to make payments to consultants and contractors for design and construction of the
Project, and
WHEREAS, there is a need to provide for cash flow needs for such payments by the
DISTRICT to the CITY while reimbursement from the State Revolving Fund is processed, and
lnterlocal Agreement -2/27/01
Tracyton System Improvements
Page 1 of 4
WHEREAS, the DISTRICT desires to establish the rate formula for its customers in the
event of dissolution of the DISTRICT.
NOW THEREFORE, the PARTIES through their respective legislative bodies in
consideration of the mutual covenants contained herein, do agree as follows:
1. PURPOSE. The purpose of this Agreement is to set forth the terms and conditions by
which the CITY, on behalf of the DISTRICT, will design, construct and finance water system
upgrades within Tracyton Water District and the terms and conditions by which DISTRICT will
reimburse the CITY for those costs.
2. PRIOR AGREEMENT. The terms and conditions of the agreement between the
PARTIES dated February 29, 2000 remain in effect. Said agreement is incorporated herein by
this reference.
3. CASH FLOW FINANCING. For the purpose of meeting the cash flow requirements
during the period of design and construction of the water system improvements there is hereby
authorized an inter-governmental loan from the CITY to the DISTRICT in an amount not to
exceed five hundred thousand dollars ($500,000). This loan shall bear interest at the rate of 5%
per annum, which shall be computed monthly and paid at the time of loan repayment. This loan
may be repaid in whole or in part at any time but shall be repaid in its entirety not later than the
point at which the State Revolving Fund loan to the DISTRICT is finalized.
4. LOAN DRAWS. The CITY shall, on behalf of the DISTRICT, prepare on a timely
basis, reimbursement requests to the Public Works Trust Fund and the State Revolving Fund.
The CITY shall pursue such reimbursements as it would in the conduct of its own business.
Reimbursement requests shall be authorized, if required, by the DISTRICT and submitted to the
appropriate State agency within 5 days of DISTRICT receipt.
5. PAYMENTS TO CITY. The DISTRICT shall, within 25 days of receipt of
reimbursement by the Public Works Trust Fund or State Revolving Fund, reimburse CITY for
costs of the Project.
6. DISTRICT LOAN PAYMENTS. The DISTRICT intends to repay its loans from the
Public Works Trust Fund and the State Revolving Fund from water surcharges levied on
DISTRICT customers. These surcharges will be levied by the DISTRICT until such time as the
DISTRICT is dissolved. After DISTRICT dissolution, the CITY will levy necessary surcharges
and make loan payments to the Public Works Trust Fund and the State Revolving Fund until
such time as the loans are repaid.
7. DISTRICT SERVICE AREA. The service area of the DISTRICT for purposes of this
agreement is set forth in EXHiBIT "A" attached hereto and made a part hereof by this reference.
8. CUSTOMER RATES. The monthly rate formula for customers within the DISTRICT
service area following dissolution of the DISTRICT shall be equal to the rates charged city
residents plus a surcharge sufficient to meet the debt service requirements of the DISTRICT
lnterlocal Agreement -2/27/01
Tracyton System Improvements
Page 2 of 4
loans plus a lighting surcharge if appropriate. At such time as the DISTRICT loans are fully
repaid, DISTRICT customers shall be charged rates as county residents plus a lighting surcharge
if appropriate.
9. FRONT FOOTAGE FEES - DISCOUNT. It is agreed that Front Footage Fees, (FFF),
within the DISTRICT service area will be equal to those charged to CITY's customers in
unincorporated Kitsap County. During calendar year 2001, these FFF will be discounted 100%.
On January 1 of each year there after, the percentage of discount will be reduced by five percent
(5%) until the DISTRICT FFF shall be equal to the rate charged customers in unincorporated
Kitsap County.
10. ALL OTI-IER FEES AND CI-IARGES. All other fees and charges shall be equal to
those charged by the CITY to its customers in unincorporated Kitsap County.
11. RATES, FEES AND CItARGES - EFFECT OF ANNEXATION. In the event that
property or customers within the district service area are annexed into the CITY, such property
or customers shall be subject to the same CITY rates, fees and charges as all other CITY
residents. Upon such annexation, the CITY will become responsible for a portion of the
DISTRICT loans then outstanding equal to the district surcharge paid by the annexed property or
customers during the preceding year divided by the district surcharge paid by all property or
customers during the same period.
Properties served by the District prior to dissolution of the District shall be considered
customers of the CITY at the time of dissolution. Prior to dissolution, the provisions of BMC
15.02.040, SERVICE BEYOND CITY LIMITS, shall not apply to such existing service.
However, BMC 15.02.040 shall apply to all properties requesting utility service from the CITY
after the effective date of dissolution.
12. TERM. This Agreement shall take effect upon execution of the Agreement by both
CITY and DISTRICT and shall continue until the Project is completed and DISTRICT loans
have been repaid.
13. ENTIRE AGREEMENT. This Agreement constitutes the entire agreement between the
parties and both parties acknowledge that, excepting the Service Agreement, there are no other
agreements, written or oral, that have not been included by reference in this Agreement.
14. AMENDMENTS. The parties hereby further agree that this Agreement cannot be
amended or modified without the written concurrence of both parties.
15. NOTICES. Any notices required to be given by CITY to DISTRICT or by DISTRICT
to the CITY shall be in writing and delivered to the parties at the following addresses:
City of Bremerton Tracyton Water District
Department of Public Works and Utilities P.O. Box 2013
3027 Olympus Drive Silverdale, Washington 98383
Bremerton, Washington 98310
lnterlocal Agreement -2/27/01
Tracy~on System Improvements
Page 3 of 4
16. VENUE. This Agreement shall be c0nstmcted and interpreted in accordance with the
laws of the State of Washington.
17. ORDER OF PRECEDENCE. In the event of an inconsistency in this Agreement,
unless otherwise provided herein, the inconsistency shall be resolved by giving precedence in the
following order:
(a) Applicable State statutes and regulations;
(b) This Agreement, including any other express provisions of this Agreement
whether incorporated by reference or otherwise; and
(c) The Service Agreement;
(d) The terms and conditions oftbe funds being distributed.
18. SEVERABILITY. If any section of this Agreement is adjudicated to be invalid, such
action shall not affect the validity of any section not so adjudged.
This Agreement approved and entered into by the undersigned local government units the
day and year first above written.
CITY OF BREMERTON TRA~.~ON WATER DISTRICT
LYNN S. HORTON, Mayor GAlkl/Kl/ENff~,'-~ommis~si-oner
TIM KNAPP, Commissioner
w. EU EN S -- / -
Director of Public Works and Utilities
LEE WINTEROWD, Commissioner
DAVID ST. PIERRE
Assistant City Attorney
ATTEST: ATTEST:
KA2~HLEEN McCLUSKEY, City Clerk ~ cr'e'~r~ ;/h/~/r'/e~/', Secretary
lnterlocal Agreement -2/27/01
Tracyton System Improvements
Page 4 of 4
EXHIBIT A
INTERLOCAL AGREEMENT
BETWEEN THE CITY OF BREMERTON
AND TRACYTON WATER DISTRICT
TRACYTON SERVICE AREA
TRACYTON WATER DISTRICT
DISTRICT & SERVICE AREA BOUNDARIES
SERVICE AREA BOUNDARY
~'~fi WATER DISTRICT BOUNDARY
After Recording return to:
Tracyton Water District
P.O. Box 2013
Silverdale, WA 98383
Summary for Recorder's Use:
1. Reference Number of documents being assigned or release,d: Not Applicable
2. Grantor(s):
1. CITY OF BREMERTON, a Washington Municipal Corporation;
2. TRACYTON WATER DISTRICT, a Washington Municipal Corporation;
3. Grantee(s):
1. CITY OF BR.EMERTON, a Washington Municipal Corporation;
2. TRACYTON WATER DISTRICT, a Washington Municipal Corporation;
4. Legal Description: Not Applicable
INTERLOCAL AGREEMENT
BETWEEN
CITY OF BREMERTON AND TRACYTON WATER DISTRICT
Regarding the Duties, Design, Construction, and Financing of Water System Upgrades
within Tracyton Water District in Anticipation of District Dissolution and District
Annexation into City.
THIS INTERLOCAL AGREEMENT is made and entered into pursuant to the
proyisions of Chapter 39.34 RCW (Interlocal Cooperation Act), this ~ day of
~, 2000, by and between the CITY OF BREMERTON (hereinafter
referred to as "CFi'Y") and TRACYTON WATER DISTRICT (hereinafter referred to as
"DISTRICT"), and collectively referred to as the "Parties". Pursuant to RCW 39.34.040, after
this Agreement is executed it will be recorded with the Kitsap County Auditor.
Chapter 39.34 RCW encourages local government units to make the most efficient use
of their powers by enabling them to cooperate with one another to their mutual advantage and
thereby provide services and facilities to the public in a more efficient and cost effective
The CITY and DISTRICT, by agreement dated June 29, 1966 (the "Service
Agreement"), provide water services to customers within the DISTRICT's water service area. In
summary, pursuant to the Service Agreement, The CITY provides all water, owns all the piping
and appurtenances, and provides maintenance and billing services to the customers of the
DISTRICT, and the DISTRICT approves all water hookups, sets from foot assessment fees,
determines water availability within the DISTRICT, and generally represents the water supply
issues and interests of its customers.
Interlocal Agreement
City of Bremerton & Tracyton Water District Page 1 02/10/00
The DISTRICT has completed a capital improvement plan for needed improvements as
an element of the DISTRICT's Interim Water Plan dated June 1998, (hereinafter referred to as
the "Plan"). The parties desire to implement the Water Main Replacement Projects as described
in the Capital Improvement Schedule, Table 8-3, of the Plan (hereinafter referred to as the
"Project").
In accordance with the terms of the Service Agreement, the CITY will own, maintain,
and operate the infrastructure constructed pursuant to the Project. The DISTRICT lacks the
technical and administrative resources to facilitate implementation of the Project. The CITY
has agreed to provide the resources to facilitate implementation of the Project on a cost
reimbursable basis as set forth in this Agreement.
NOW THEREFORE, the parties through their respective legislative bodies, in
consideration of the foregoing recitals, and the mutual covenants and promises contained
herein, agree as follows:
1. PURPOSE. The purpose of this Agreement is to set forth the terms and conditions by
which the CITY and DISTRICT will implement the water system infrastructure improvements
described in the Capital Improvement Schedule, Table 8-3, of the Tracyton Water District
Interim Water Plan, 1998 (attached hereto as Exhibit "A").
2. ADMINISTRATION TEAM. The CITY and DISTRICT shall each appoint two
individuals, who may be DISTRICT and CITY officials, who shall meet on a regular basis, at
least twice a month or at such other intervals or times agreed to by the Parties, to administer the
terms of this Agreement and represent the interests of their respective entities. This body shall
herein be referred to as the "Administration Team". If the Administration Team shall ever
disagree on any issues related to this Agreement, after first making a concerted effort to reach
agreement, with agreement still not being reached, they shall seek guidance from their
respective governing bodies. The members of the Administration Team, and the DISTRICT and
CITY, shall always seek to deal with one another in a spirit of cooperation, openness, fairness,
and in a timely manner, so the goals of this Agreement may be fully met in a timely and cost
effective manner.
3. RESPONSIBILITY OF TIlE PARTIES.
A. PROJECT COSTS. The DISTRICT shall be obligated to pay all costs of the
Project, including, but not limited to: administration, design, procurement, construction,
inspection, and securing financing, including Bond Council fees, if any.
B. DISTRICT PERFORMANCE. The DISTRICT shall perform all duties and acts
in a good and timely manner that the ADMINISTRATION TEAM believes are reasonably
required for support of the CITY's duties in implementing the Project.
C. CONVEYANCE OF PROJECT PROPERTY TO CITY AT COMPLETION.
The DISTRICT shall, in accordance with the Service Agreement and upon completion of the
Project, convey to the CITY ownership of all improvements covered by the Project.
Interlocal Agreement
City of Bremerton & Tracyton Water DistrictPage 2 02/10/00
D. REIMBURSEMENT OF PROJECT COSTS. The DISTRICT shall, within 30
days of receipt of invoice, reimburse the CITY for costs of the Project not otherwise provided
directly to the CITY by Project Financing; PROVIDED, HOWEVER, all Project costs not
provided by Project Financing shall, before being incurred, be specifically approved by the
DISTRICT, which approval shall not be unreasonably withheld. In its work hereunder, the
CITY shall strive only to incur those costs covered by Project Financing as defined herein. In
incurring costs not provided for by Project Financing, the CITY shall seek only to incur those
costs that are absolutely necessary to implement the Project as determined by the
Administration Team, and shall seek at all times to keep those costs to the absolute minimum.
E. CITY DUTIES. The CITY shall provide, on a cost reimbursable basis, all services
required to secure financing for the Project, in a form and on terms reasonably agreeable to the
DISTRICT; i.e., bond financing, secured by the assets and/or future revenues of the DISTRICT
and properties served by the improvements; or loan and grant applications such as Washington
State Public Works Trust Fund, State Revolving, Fund, etc. It is the intent of the parties that
these said costs shall be covered by the Project Financing.
The CITY shall manage implementation of the Project by selecting and contracting, on
behalf of the DISTRICT, with a qualified engineering consultant for the design of the Project
with plans, specifications, and estimates, for the purpose of securing competitive bids for
construction &the Project. The DISTRICT shall pay all costs associated with these tasks with
the intent that these costs will be covered by the Project% financing package. The CITY shall
keep the Administration Team advised, on a regular and timely basis, of its efforts in this
regard.
The CITY shall, through competitive bids, contract, on behalf of the DISTRICT, for the
construction of the Project. Prior to accepting the lowest responsible bid for the Project, the
CITY shall fully advise the DISTRICT of the CITY's reasons for accepting the successful bid.
The CITY shall manage and inspect all aspects of the Project's construction in a timely and cost
effective manner.
The CITY, as Project manager, shall be responsible for Project accounting, making
disbursements to the CITY, consultants, and contractors hired to complete the project and for
monitoring the project and project budget. The CITY shall keep the Administration Team
advised on a regular basis of all Project accountings and answer all questions the
Administration Team may have regarding the same. The CITY shall invoice the DISTRICT for
all costs of the Project not otherwise provided directly to the CITY by Project Financing
according to the procedure herein established for non-Project Financing costs.
4. ADMINISTRATION.
A. PROJECT MANAGER. The Project manager for this project shall be the City
Engineer. The City Engineer shall make every reasonable effort to insure the Project is
completed in a timely manner and on budget The CITY Engineer shall keep the Administration
Interlocal Agreement
City of Bremerton & Tracyton Water Disaict Page 3 02/10/00
Team informed on a continuing basis of its work and shall promptly answer all questions
directed to it by the Administration Team.
B. FINANCING. Necessary financing, will be arranged by the CITY Treasurer,
which financing shall first be approved by the DISTRICT, which approval shall not be
u~easonably withheld. Project Financing shall include provision of funding for all costs
associated with the Project including financing, design, construction, and administration. It is
acknowledged that elements of Project Financing may include bonds, grants, loans, and
DISTRICT funds for ineligible costs incurred and local match, if not otherwise provided.
C. AGENCY. After agreement has been reached between the CITY and DISTRICT
regarding the terms of any element of the Project Financing, the CITY shall act in accordance
with the terms of such financing agreement on a timely basis, and shall act as the DISTRICT's
agent in all matters thereafter related to financing and billing for the Project.
5. TERM. This Agreement shall take effect upon its execution by both the CITY and the
DISTRICT, and shall continue until the Project is completed, all available funds fi.om Project
Financing are expended, or the DISTRICT is dissolved, whichever event occurs first.
6. ENTIRE AGREEMENT. This Agreement constitutes the entire agreement between
the parties regarding the matters contained heroin. Both parties acknowledge that, excepting
the Service Agreement, there are no other applicable agreements, written or oral, that have not
been fully set forth in the text of this Agreement.
7. AMENDMENTS. The parties agree this Agreement cannot be amended or modified
without written concurrence of both parties.
8. NOTICES. Any notices required to be given by CITY to DISTRICT or by DISTRICT
to the CITY shall be in writing and delivered to the parties at the following addresses:
City of Bremerton Tracyton Water District
Department of Public Works and Utilities P.O. Box 2013
3027 Olympus Drive Silverdale, WA 98383
Bremerton, WA 98310-4799
9. VENUE. This Agreement shall be constructed and interpreted in accordance with the
laws of the State of Washington.
10. ORDER OF PRECEDENCE. In the event of an inconsistency in this Agreement,
unless otherwise provided herein, the inconsistency shall be resolved by giving, precedence in
the following order:
(a) Applicable State statutes and regulations;
(b) This Agreement, including any other express provisions of this Agreement whether
incorporated by reference or otherwise; and
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City ofBremerton & Tracyton Water District Page 4 02/10/00
(c) The Service Agreement;
(d) The terms and conditions of the funds being distributed.
11. DISSOLUTION OF DISTRICT. The parties agree to negotiate the dissolution of the
DISTRICT in the future. The DISTRICT is agreeable to its dissolution with all DISTRICT
functions being taken over by the CITY so long as the CITY agrees to provide the same level of
service to the DISTRICT's customers as it provides to its other water customers and at a service
rate structure agreed to by the CITY and the DISTRICT prior to dissolution. If reasonably
required, Bond counsel will be consulted on the feasibility and structuring for DISTRICT
dissolution, and CITY assumption of DISTRICT debt may be incorporated into the bond issue
documents. The CITY is agreeable so long as assumption of any debt does not limit the CITY's
debt capacity to a level unacceptable to the CITY.
12. VALIDITY. If any section of this Agreement is adjudicated to be invalid, such action
shall not affect the validity of any section not so adjudged unless such invalidity shall
substantially compromise the overall purpose of this Agreement.
13. DEFAULT. A party shall be deemed in default under the terms of this Agreement if it
fails to substantially perform its duties hereunder after first having, received written notice from
the non-defaulting party itemizing the default(s), with those defaults not being cured within
forty-five (45) days from the date the notice is received. A notice shall be deemed "received"
two days after mailing the same by certified mail, return receipt requested, from a U.S. Postal
drop site in Kitsap County to the other party's address for the receipt of notices as set forth
herein, or upon the delivery date of personal delivery upon any person signing this Agreement,
with the receiving party signing a receipt therefore. After default has occurred, the non-
defaulting party shall have the right to brine, an arbitration action as set forth in section 14.
hereof for specific performance and/or damages as conditions shall warrant. The non-
defaulting, party shall also be entitled to any other relief afforded in law and/or equity in the
arbitration proceeding.
14. ARBITRATION. In the event legal action becomes necessary hereunder, the parties
agree the venue and jurisdiction of any such legal action shall reside in Kitsap County with the
Kitsap County Superior Court. In the event of legal action, the parties further agree to submit
any dispute(s) hereunder or relating to this agreement into arbitration pursuant to RCW Chapter
7.04, except as modified in this section 14, and to provide the selected arbitrator with all
jurisdiction (legal and equitable) to fully and completely settle all matters in dispute.
When the need for arbitration arises, the party demanding arbitration, pursuant to RCW
7.04.060, shall serve upon the other party, personally or by registered mail, a written notice of
its intention to arbitrate. Such notice shall state in substance that unless within twenty (20) days
after its service, the party served therewith shall serve a notice of motion to stay the arbitration,
the party receiving the notice shall thereafter be barred from putting, in issue the existence or
validity of this section 14 of this agreement to arbitrate or the failure to comply herewith.
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Application to arbitrate, pursuant to RCW 7.04.030, shall be made by motion to the
court. When the matter is placed into arbitration on the motion of either party, the court action
shall be stayed.
The arbitration shall proceed pursuant to the rules established in RCW Chapter 7.06
entitled MANDATORY ARBITRATION OF CIVIL ACTIONS, except as modified in this
section 14. One arbitrator shall be selected from the court's mandatory arbitration list in the
same manner as established in RCW Chapter 7.06, and the local rules, dealing with mandatory
arbitration. The taking of depositions, the issuance of Interrogatories, Requests for Production,
and Requests for Admission, shall be specifically authorized as provided by law as if this said
were proceeding as a civil case in Superior Court.
The arbitrator shall issue his or her decision in the same manner prescribed in RCW
Chapter 7.06 within twenty (20) days from the close of the arbitration hearing.
A party may appeal the decision of the arbitrator pursuant to RCW 7.06.050: within
twenty (20) days after the filing of the arbitration award, the aggrieved party to perfect its
appeal rights must file with the superior court clerk a written notice of appeal and request for a
trial de novo in superior court on all issues of law and fact. Provided, however, pursuant to
RCW 7.06.060, and local court rules, if the aggrieved party filing the appeal does not improve
its position in superior court, that party shall have assessed against it, the other party's
reasonable attorney fees and costs incurred from the date the notice of appeal was filed.
The prevailing party or parties in any such arbitration action and/or court action shall be
entitled to receive its/their reasonable attorney fees and costs of suit from the losing party.
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15. AGREEMENT APPROVAL. This Agreement is approved and entered into by the
undersigned local government units as of the date set forth at the commencement of this
Agreement.
CITY OF BREMERTON
ORTON, Mayor
ATTEST:
KATHLEEN MCCLUSKY, ~ity Clerk
Director of Public Work and Utilities
RICH HANNA, C~asurer
APPROVED AS TO FORM:
WATER DISTRICT
GAR¥./~NAff',I, Co~rn~ni~sioner
A TTES T: f ~EE WINT~'~WD 7Commissioner
Terry McKinley, Secretary
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STATE OF WASHINGTON)
) ss COMMISSIONER ACKNOWLEDGEMENT
COUNTY OF KITSAP
On this day personally appeared before me the three commissioners for Tracyton Water
District, namely, GARY KEENAN, TIM KNAPP, and LEE WTNTEROWD, to me known to
be the individuals described in and who executed the within and foregoing instrument, and
acknowledged that they signed the same as their free and voluntary act and deed, for the
purposes therein memioned on behalf of the said District.
SIGNED AND SWORN TO before m~~h_~ '~.]2 .~ , 2000.
Print Name Iq,~-t~ ,.~-d
NOTARY PUBLIC in and for the State of
Washington, residing in
My Commission Expires:
/ab
Tracyton Water System File
From 6~ Diafi
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EXHIBIT "A"