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HomeMy WebLinkAboutAgenda Packet 04/08/2003 PORT ANGELES! WA 9B362~ APRIL iq, 2003 3:00 P.M. AGENDA I. OALL TO ORDER II, ROLL CALL III. APPROVAL DF ~VIINUTE5 FOR MARCH ..~ "PFIO3 IV. LATE ITEMS V. DISOUS~ION ITEMS A. ELWHA ELECTRI~ UNDERGROUND REBUILD ON ~ILWAUKEE RIGHT-OF-WAY (~ HARPER) B, 20~2 WATER ~UALITY REPORT (D ~GINLEY) ~OLAR WATER HEATING PROGRAH AGREEHENT~ (L DUNBAR) D. PHASE III DOWNTOWN WATERHAIN/~IDEWLAKS LOAN APPLICATION (~ 5PERR) E. BROWN & ~ALDWELL ~DNTRAOT (B ~PERR) F. ELWHA RIVER ~ALHDN REARING ~HANNEL LEASE (~ ~PERR) B, ~LALLAH ~DUNTY PUD WHOLESALE WATER ~ONTRA~T (~ HCLAIN) H. REPDRT~ RAYONIER LEACHATE (~UARTERLY) FLUORIDATION PRO.EOT ~TATU~ REPORT BROWN.FIELD5 ~LEAN-UP GRANT APPLICATION (VERBAL) VI. NEXm HEETINB DATE- ~AY 13~ 20~ VII. ADdDURNHENT UTILITY ADVISORY COMMITTEE Special Meeting Port Angeles, Washington March 5, 2003 I. Call to Order: ~'~sz Chairman Erickson called the meeting to order at 3:00 p.m. II. Roll Call: Members Present: Chairman Erickson, Councilmember Rogers, Dean Reed, Allen Bentley, Councilman Campbell Members Absent: None Staff Present: Glenn Cutler, Scott McLain, Ken Ridont, Steve Sperr, Tom McCabe, Cate Rinehart Others Present: Brian Gaawley - Daily News Joan Gloor Sharon Ford III. Approval of Minutes: Chairman Erickson asked if there were any additions or corrections to the meeting of February 11, 2002. Allen Bentley noted the name change from Roberts to Rogers under recommendations in "B" and "C" discussion items. Allen Bentley moved to approve the minutes. Councilmember Rogers seconded the motion. Dean Reed abstained due to absence at the meeting. Chairman Erickson asked if there were any additions or corrections to the meeting of February 24, 2003. Dean Reed moved to approve the minutes. Councilmember Rogers seconded the motion. Councilman Campbell abstained due to absence at the meeting. IV.. Discussion Items A. Benefit Dump Day Tom McCabe, Solid Waste Superintendent, summarized the annual event noting newly imposed vehicle size restrictions and limitations on such items as tires, refrigerators, freezers and other appliances. It was noted that the event diverts the majority of the refuse to the recycling area to conserve valuable landfill space. Residents are requested to donate cash or food items to benefit the Port Angeles Food Bank in lieu of landfill fees. UTILITY ADVISORY COMMITTEE March 5, 2003 Dean Reed moved to recommend City Council continue the annual event tentatively scheduled for April 27, 2003. Allen Bentley seconded the motion, which carried unanimously. B. Fluoridation Project Status Report Glenn Cutler, Director of Public Works and Utilities, pointed out the target date for fluoridation was December 31, 2003. To achieve this goal a number of challenges will be faced including the type of treatment system, location, type of solution, control systems, permits needed, and environmental problems if any. A monthly update will be provided and information is gatherer. There was a short discussion. No action taken. Information only. C. Conservation Program Annual Report Scott McLain, Deputy Director of Power Systems, discussed the various programs conducted this past year noting the expectations in providing energy savings to our customers and utilizing the Conservation and Renewables Discount funding had been met. There was a brief discussion. No action taken. Information only. D. Lower Elwha Klallam Tribe Sewer Connection Item placed on agenda should further discussion be required as a result of the March 4, 2003 City Council meeting. Nothing noted at this time V. Next Meeting: The next meeting will be April 8, 2003, 3 p.m., Public Works Conference Room VI. Adjournment: The meeting adjourned at 3:30 p.m. Councilmember Erickson, Chairman Cate Rinehart, Administrative Assistant 3/6/03 N:~PWKS\LIGHT~CONS\CATE\mar5meet.wpd W A S H I N G T O N, [.J.S..~. [JTI[.[TY ADVISORY COMMITTI=[~ MEMO DATE: April 8, 2003 TO: UTILITY ADVISORY COMMITTEE FROM: James L. Harper, Electrical Engineering Manager RE: Elwha Underground Rebuild Phase I - Project 22-11 Summary: The City water pumping facility at the Ranney Well is served by a 2.5 mile direct buried 12.47 kV underground line along the old railroad right of way (Milwaukee Avenue) installed in 1977. The expected life of underground cables is 20 to 30 years and the number of failures on this line are increasing yearly. The project involves installing 2-5 inch power conduits and 1-4 inch communications conduit in a 4 foot deep trench ? feet offthe south right of way line. Recommendation: Recommend staff proceed with the EIwha Underground Rebuild Phase I Project 22-11 as described below. Background/Analysis: The City water pumping facility at the Ranney Well is served by a 2.5 mile direct buried 12.47 kV underground line along the old railroad right of way (Milwaukee Avenue) installed in 1977. The expected life of underground cables is 20 to 30 years. The cables on this line have been experiencing one or two failures per year over the last few years. Each failure requires several days to locate and repair. The number of failures can be expected to increase rapidly over the next 3 to 5 years if the cables are not replaced. The rebuild of this line in three phases over a three year period was proposed and included in the approved 2002 CFP. The design of the line rebuild was budgeted in 2002 and has been completed. The design of the line calls for the installation of 2-5 inch power conduits and 1-4 inch communications conduit. The location of the trench in the Milwaukee Avenue right of way was sited at 7 feet offofthe south right of way line (right of way cross section shown below). This places the conduits in the City's standard electric location in a 100 foot right of way. This location was selected for several additional reasons; no conflict with the future development of Milwaukee Avenue and to a lesser degree minimize the conflict with the proposed Lower Elwha Tribe sewer force main. The south side of the right of way was selected to minimize the conflicts with the private gravel operation, the proposed Elwha water treatment facility and landfill transfer station, and to minimize timber removal. Phase I of the project is budgeted at $230,000 and is scheduled for construction in 2003. This Phase is for the 4700 foot section of line fxom 18~ Street to the overhead crossing of Dry Creek. Staffrequests UAC approval to proceed with the "Advertisement For Bids" for Phase I construction of Project 22-11. This project has been coordinated with the new water treatment facility, the proposed Elwha tribe sewer line. It is also being coordinated with the National Park Service for cost share reimbursement. MILWAUKEE RO- N:\UAC~FinaBApfil 8 UACelwha ¢lec rebuild.'~rpd WASHINGTON, U.S.A. UTILITY ADVISORY COMMITTEE MEMO DATE: April 8, 2003 TO: UTILITY ADVISORY COMMITTEE FROM: Doyle W. McGinley, Superintendent Water/Wastewatcr Collection SUBJECT: Water Quality Report (2002) Summary: The Washington State Department of Health requires that every water system provide an annual Water Quality Report to its customers. The report is to contain information on the potential contaminants present in the water supply that customers receive. The attached Water Quality Report for the Port Angeles Water Supply has been prepared for distribution to the City's water customers. Recommendation: For Information Only Background / Analysis: In 1996 Congress passed amendments to the Safe Drinking Water Act that included a mandate for the Environmental Protection Agency [EPA] to require community water systems to provide each of their customers with a "Consumer Confidence Report [CCR]" every 12 months. This year's report, using 2002 data, will be delivered to all City of Port Angeles water customers with the May utility billing statement, along with a public information announcement in the local paper, and posted on the City's web site. This year's report must be distributed by July 1 st. The attached Water Quality Report, based on calendar year 2002 data, has been developed in accordance with the EPA/CCR regulations. The regulations require information on the quality of the water delivered by the system, and characterization of any risks from exposure to any contaminants in the drinking water, in an accurate and understandable manner. The report is intended to communicate to customers the quality of their water in terms they can understand. Many of the topics covered are required and some of the actual language used is mandatory. The City was also required to provide information to wholesale customers by April 1 st. Testing information will be forwarded to the Clallam County Public Utility District. Attachment: Water Quality Report N:\UAC\Orig/naI\UAC Memo WQR 2002.wpd WASHINGTON, U.S.A. PUBLIC WORKS & UTILITIES DEPARTMENT City of Port Angeles Water Quality Report - 2002 Date Dear Water Customer: The City of Port Angeles is pleased to provide you with our annual Water Quality Report. The purpose of this report is to tell our customers about the high quality of their water and their water system. We aggressively safeguard our Elwha River and well supplies, which enables us to always provide our customers with a reliable and safe water supply. This report is a summary of the quality of water provided in 2002. It is a record reflecting the hard work by our employees to bring you water that satisfies all of thc requirements of the Safe Drinking Water Act. The report includes details about where your water comes fi.om, its quality and how it compares to stringent standards set by regulatory agencies. We believe that customers who are well informed are able to make better decisions about their drinking water supply. WATER SYSTEM INFORMATION Source of the City's Water: The source for the City of Port Angeles Water System is a Ranney Collector (well) located on the east bank of the Elwha River at mile post 1.9 in Section 3, T 30 N, R 7 W. The system identification number is 68550M. The Ranney collector has been classified as groundwater under the influence (GWI) of surface water. This designation requires the City to meet the requirements of the Surface Water Treatment Rule (SWTR). The City evaluated regulatory compliance options available under the SWTR including filtration and complying with criteria to avoid filtration. The City and the Washington State Department of Health have negotiated an agreement that will effectively meet the filtration avoidance requirement by the construction of a federally-funded municipal water treatment facility under the Elwha River Ecosystem and Fisheries Restoration Act. In the agreement the water treatment facility will be in place before dam removal begins. The current schedule shows that the water treatment facility will be in operation in 2006. Water from the Ranney Collector is tested following the guidelines established by the Washington State Department of Health to detect potential contaminants that could reasonably be expected to be found in drinking water. As water travels over the surface of the land or through the ground, it dissolves naturally occurring minerals and, in some cases radioactive material, and can pick up substances resulting fi.om the presence of animals or from human activity. Because most of the land through which the Elwha River flows is inside the Olympic National Park, there is limited 321 EAST FIFTH STREET · P. O. BOX 1150 ' PORT A~GELES, WA 98362-0217 PHONE: 360-417-4805 · FAX: 360-417-4542 · TTY: 360-417-4645 E-MAIL: PUBWORKS@CI.PORT-ANGELES.WA.US opportunity for human contamination of the water. Contaminants that might be expected in untreated water include: biological contaminants, such as viruses and bacteria; inorganic contaminants, such as salts and metals; pesticides and herbicides; organic chemicals from industrial or petroleum use, and radioactive materials. In order to ensure that tap water is safe to drink, the Environmental Protection Agency (EPA) prescribes regulations which limit the amount of certain contaminants in water provided to the public water systems. Food and Drug Administration (FDA) regulations establish limits for contaminants in bottled water which must provide the same protection for public health. WATER QUALITY TESTING OCCURS DAILY BY CERTIFIED PERSONNEL Drinking water, including bottled water, may reasonably be expected to contain at least small amounts of some contaminants. The presence of contaminants does not necessarily indicate that water poses a health risk. More information about contaminants and potential health effects can be obtained by calling the Environmental Protection Agency's Safe Drinking Water Hotline. (1-800-426-4791) Some people may be more vulnerable to contaminants in drinking water than the general population. Immuno-compromised persons such as persons with cancer undergoing chemotherapy, persons who have undergone organ transplants, people with H1V/AIDS or other immune system disorders, some elderly, and infants can be particularly at risk from infections. These people should seek advice about drinking water from their health care providers. EPA/CDC guidelines on appropriate means to lessen the risk of infection by cryptosporidium and other microbial contaminants are available from the Safe Drinking Water Hotline. (1-800426-4791) Disinfection in the City's water supply is accomplished by dosing the water with chlorine at the Rauney Collector on the Elwha River and at the City's five reservoirs. The chlorine concentration is monitored daily and is maintained at a minimum of .20 mg/1 throughout the system. In the year 2002, city water quality personnel collected more than 300 water samples throughout the water distribution system. None of the samples tested positive for coliform bacteria presence. The City receives a number of calls each year about fluoridation. Fluoride is a natural substance found in varying degrees in almost all water supply. Fluoride was not detected in the last sampling period. The City is scheduled to start injecting fluoride into the drinking water in late 2003. MONITORING WAIVERS, BILATERAL COMPLIANCE AGREEMENTS 0ICA) The City was granted, by the Washington State Department of Health, a waiver through December 2002 for the sampling and testing for synthetic organic chemicals (herbicides, general pesticides). Previous background test results indicated that these substances are not present in this source. The City water system operates under two BCA's with Washington State Department of Health. Docket # 7207 is titled Covering of Uncovered Finished Water Supply Reservoirs and Installation of Corrosion Control and Docket # 00-02-014 is titled Groundwater Under the Influence of Surface Water. Details for both of the BCA's are available upon request from the City of Port Angeles Water System Superintendent at 360-417-4855. 2 lie ulatea water-tJUallty l ata I able: I 8/22/02 ppb AL=15 0 4 NA NO Corrosion of household systems; erosion of natural deposits. ~er 8/22/02 ppm AL=1.3 1.3 0.53 NA NO Corrosion of household systems; erosion of natural deposits. ~c)itsm~ant ppb erage) Total Feb/May/ 100 0 4.2 3.5-4.9 NO By-product of drinking water ~alomethane Aug 2002 chlorination Key and Definitions To Water-Quality Data Table NA= not Applicable ppb= parts per billion, or micrograms per liter (ug/1) MFL= Million Fibers ppm= parts per million, or milligrams per liter (mg/l) Action level [AL] The concentration of a contaminant which, if exceeded, triggers a treatment or other requirement which a water system must follow. Maximum Contaminant Level [MCLl The highest level of a contaminant that is allowed in drinking water. MCLS are set as close to the MCLGs as feasible using the best available treatment technology. Maximum Contaminant Level Goal [MCLG] The level ora contaminant in drinking water below which there is no known or expected risk to health. MCLGs allow for a margin of safety. Milligrams per liter [mg/l] or parts per million [ppm] Metric measurement of concentration ora contaminant or material. [one part per million and one mg/1 = 1 penny in 10,000 dollars] Calcium and magnesium are naturally occurring minerals in groundwater. These minerals are measured to determine water hardness. Hardness interferes with the sudsing of soap. According to the U.S. Geological Survey ,the scale of hardness is: 0-55 mg/l = Soft; 55-100 mg/l = Slightly Hard; 100-200 mg/l =Moderately Hard; >200= Very Hard. Hardness sampling showed 42 mg/l taken in July 2002. Appliance manufacturers convert this number into Grains per Gallon by dividing it by 17.1 (e.g., 42mg/l / 17.1 = 2.46 Grains per Gallon). WATER CONSERVATION TIPS Water conservation measures are an important first step in protecting our water supply. Such measures not only save the supply of our water, but can also cut the cost of water treatment. Here are a few suggestions: Conservation measures you can use inside your home: ~ Fix leaking faucets, pipes, toilets, etc. ~ Install water saving devices in faucets, toilets and appliances. Replace old fixtures with new ones. This will reduce water consumption by nearly one-half. ~ Wash only full loads of laundry. ~ Do not use the toilet for trash disposal. ~' Take shorter showers. Do not let the water run while shaving, washing, brushing teeth, or cleaning fruits and vegetables. ~ Soak dishes before washing. Run the dishwasher only when full. You can conserve outdoors as well: ~ Water the lawn and garden in the early morning or evening. ~ Use mulch around plants and shrubs. ~ Repair leaks in faucets and hoses. Use water-saving nozzles. ~ Use water from a bucket to wash your car. Save the hose for rinsing. For more information: The City of Port Angeles City Council meets at 6:00pm on the 1st and 3rd Tuesday of each month at City Hall, 321 E. 5th Street. Information about the City's utilities may be found on the web site: www.ci.port- angeles.wa.us. If you have questions, the City of Port Angeles Water System Superintendent may be reached at 360-417-4855. Report Date: March 13, 2003 4 pORTA. ¢ r s WASHINGTON, U.S.A. UTILITY ADVISORY COMMITTEE MEMO DATE: April 8, 2003 To: UTILITY ADVISORY COMMITTEE FROM: Larry Dunbar, Power Resources Manager SUBJECT: Solar Water Heating Program Agreements Summary: The Bonneville Power Administration recently offered the City participation in a turn. key solar water heating program for residential customers called "The Bright Way To Hca WaterTM''. Recommendation: Forward a favorable recommendation to the City Council that The Bright Way To Heat WaterTM License Agreement with the Bonneville Power Administration is approved and the Director of Public Works and Utilities, or his designee, be authorized to enter into Amendment No. 1 of the City Authorized Contractor Agreement with eligible contractors. Background: On April 12, 2001, the City Council authorized the Director of Public Works and Utilities to implement a conservation program that qualifies for the Bonneville Power Administration (BPA) Conservation and Renewables Discount (C&RD) program. On May 22, 2001, the City Council authorized the Director of Public Works and Utilities to enter into City Authorized Contractor Agreements with local independent contractors that install eligible conservation improvements. Analysis: BPA has recently purchased rights to a successful residential solar water heating program called "The Bright Way To Heat WaterTM'' from the Eugene Water and Electric Board located in Oregon State. In order for the City to provide its customers rebates under the C&RD program for solar water heaters the City must enter into a license agreement with BPA and amend the City Authorized Contractor Agreement. The license agreement between BPA and the City grants the City the right to use and promote a trademark. The proposed amendment to the City Authorized Contractor Agreement authorizes contractors that have attended BPA required solar water heating system training to use the trademark and copyrighted materials. As part of the proposed amendment the City would require solar water heating systems to meet minimum material and installation specifications and inspect each installation. Over the last two-years there has been increased customer and contractor interest in solar water heating systems that staff believes help justify participation in the proposed program. A local heating contractor, Air Flo Heating Company, who has entered into a City Authorized Contractor Agreement to install heat pumps, attended the required BPA solar water heating program training and has expressed interest in promoting solar water heating systems to City customers. April 8, 2003 Utility Advisory Committee RE: Solar Water Heating Program Agreements Page 2 Renewable resource research, development and demonstration funding In order to help ensure that a solar water heating program is successful, Staff proposes to combine the $800 C&RD rebate for a solar water heater system with C&RD renewable resource research, development and demonstration (P,X)&D) funding for thc first two installations. By combining the C&RD and RD&D funds thc customer's initial cost of thc first two installations will be 25% of total cost (in thc range of $1,000 to $1,500). Use of RD&D funding in subsequent years in support of The Bright Way To Heat WaterTM program may also be appropriate. Customers receiving RD&D funding would be required to agree to a lien that would bc filed against their home that would require repayment of the RD&D funding to the City upon the sale of their home. A total of $20,000 in RD&D funding is available under thc C&RD program. All City costs under thc C&RD and RD&D are reimbursed by BPA. Staff, in cooperation with Air Flo Heating Company, plans to hold a solar water heating workshop in May to promote thc availability of the program and to recruit two customers to participate in this year's RD&D activities. Customers participating in thc RD&D activity will be selected based on solar access, adequate family size/water heating demand, case of installation, and other factors. Customers receiving RD&D funding would be required to read and report solar water heating system metering data to the City on a monthly basis through September 30, 2006 which would be available to the public in an anonymous format via the world-wide-web. WASHINGTON, U.S.A. UTILITY ADVISORY COMMITTEE MEMO DATE: April 8, 2003 TO: UTILITY ADVISORY COMMITTEE FROM: Stephen Sperr, P.E., Engineering Manager RE: Downtown Watermain/Sidewalks Phase III, Project 00-19, Loan Application Summary: This loan application is for the third and final phase of the project to replace the watermains and sidewalks in the downtown area. It will replace all remaining downtown watermains originally installed in 1914. It will also include sidewalk replacement with pavers in the watermain replacement areas along portions of First Street (Both sides, between Laurel and Valley Streets), the north side of Front Street between Laurel and Oak Streets, and if bidding and fimds allow, the west side of Laurel street between Railroad Avenue and Front Street). Recommendation: Forward a favorable recommendation that City Council authorize the Mayor to sign both the PWTF and DWSRF loan application certifications in an amount not to exceed $2,600,000 for Phase III of the Downtown Watermain/Sidewalk Replacement Project. In addition, if either or both the loans are approved, authorize the Mayor to execute the PWTF and/or DWSRF loan agreement(s) provided that the total loan amount does not exceed $2,600,000. Background/Analysis: This is the third phase of the project to replace the watermains and sidewalks in the downtown area. Phase I was completed in 1999. Phase I1 was completed in January 2001. Completion of Phase III will bring the entire downtown area to a service level that meets current fire flow standards. In addition, the replacement mains will provide added safety measures against failure due to age (original watermains were installed in 1914) and seismic risks. In conjunction with the watemaain replacement, sidewalks will be replaced in many areas with pavers which enhance the downtown appearance. Phase III will replace watermains and install sidewalk pavers in the following areas: 1. North side of Front Street between Laurel and Oak Streets. 2. South side of Front Street from Oak Street to Valley Street. 3. Both sides of First Street from Oak Street to Valley Street. In addition, watermain only will be replaced along the east side Of Cherry Street from Front Street to First Street. See the attached map for more details. April 8, 2003 UAC Phase III Downtown Watermain/Sidewalks Page 2 of 2 There are also provisions to place sidewalk pavers along the west side of Laurel Street between Railroad Avenue and First Street if sufficient funding is obtained. This area includes that section of the remaining hollow sidewalks (the west side of Laurel Street from Front Street south to the alley) that has been proposed to remain that way. This portion of the project does not have existing watermain, so a Drinking Water State Revolving Fund (DWSRF) loan would not be able to fund this section of work, while a Public Works Trust Fund (PWTF) loan would likely be able to. The City submitted a PWTF loan application for Phase IH in 2001 and 2002, but it did not make the list of funded projects. The City is in the process of completing this year's application, after consultation with the Washington State Public Works Board, with revisions that should result in a higher ranking. The application will be submitted before the May 12, 2003 deadline. In addition, this year the City will also submit a DWSRF loan application for the same work. DWSRF loans are more competitive, but it may be used as a local match for a PWTF loan. The project to install sidewalk pavers on the west side of Laurel Street between Railroad Avenue and First Street is currently included in the Capital Facilities Plan (GG02-01) as a 2004 project and the total cost of the project is $350,000. The estimated added cost to construct a structural sidewalk to protect the historic underground storefront is $100,000, for a total of $450,000. Assuming that we would proceed with a 15% match to obtain the lowest PWTF loan interest rate the City's matching funds for the Laurel Street sidewalk would be $67,500 from the general fund. $50,000 was allocated in 2002 for the sidewalk replacement. Should the PWTF loan not be approved and the project is constructed using a DWSRF loan the Laurel Street sidewalk will not be eligible for funding and its entire cost, $450,000, would need to come from the general fund. The final decision to construct the Laurel Street can be made following receipt of the loan application results. The total project is currently included in the Capital Facilities Plan (WT30-99) as a 2004 project and the total cost of the project is $2,600,000. The PWTF loan interest rate will be 0.5 - 2.0% over 20 years, depending on the local match amount, which is currently being evaluated. The DWSRF loan interest rate will be 0.0 - 1.5% over 20 years, depending on the local income level. The Utility Advisory Committee supported the previous PWTF loan applications in 2001 and 2002. N:\UAC~Final~April8 DowntownPhase3 Loan Appl.wpd _ o I Z .> I I ~ I CI~ Of PORT ANGELESJ SCALE PUBLIC WORKS lo Plot Date: x Re.sion Date: x ~e~ pORTANGELES WASHINGTON, U.S.A. UTILITY ADVISORY COMMITTEE MEMO DATE: April 8, 2003 TO: UTILITY ADVISORY COMMITTEE FROM: Stephen Sperr, Engineering Manager SUBJECT: Consultant Agreement with Brown & Caldwell for Engineering Services Summary:. Brown & Caldwell, Inc. has been selected to continue to provide engineering services related to the Infiltration/Inflow (FI) Roof Drain Disconnection Pilot, a Condition Assessment of the Sewer Collection System, an update to the Combined Sewer Overflow (CSO) Comprehensive Reduction Plan and other services as directed. The Agreement will ensure that ongoing engineering services provided by Brown & Caldwell will continue, and additional needs related to the City's Wastewater System will be met in the near future. The proposed Agreement has a not-to-exceed amount of $159,920. Recommendation: Forward a favorable recommendation to City Council authorizing the Mayor to sign an Agreement for Professional Services with Brown & Caldwell in an amount not to exceed $159,920. Background / Analysis: On October 17, 2000, the City signed an Agreement with Brown & Caldwell to provide engineering services for a number of tasks related to the City's Wastcwater Treatment Plant (WWTP), Sanitary Sewer Collection System, CSOs and Stormwater. Though thc Agreement expired July 1, 2002, Brown & Caldwell is continuing to provide services under the existing Agreement. Recently, the City has been working with Brown & Caldwell in developing a scope and budget for the continuation of services for existing tasks, and new tasks that are funded as part of the City's 2003 budget. The scope of some of the existing tasks has been revised several times to reflect ongoing system modeling and results of preliminary design work. Instead of amending the existing Agreement, it was clear that the best approach to addressing the remaining work and the new tasks was to execute a new Agreement. Continuing with Brown and Caldwell is in the best interest of the City due to their in-depth knowledge of existing City programs and projects. City staff are satisfied with Brown and Caldwell's expertise and ongoing engineering support services in the wastewater and stormwater areas. Table 1 outlines the key tasks in the proposed new Agreement, with 2003 budgets and estimated 2004 budget. All tasks are funded by thc Wastewater Utility. The funding for tasks anticipated to continue into or start in 2004 will bc added to the Agreement as funds are made available, Brown & Caldwell Agreement Page 2 of 2 April 8, 2003 through an Amendment(s) to the Agreement. Table 1 - Summary of Scope and Budget 2003 City 2003 Task 2004 Budget TASK Budget Amount (Est.) 1. I/I Roof Drain Disconnection Pilot & Related $20,000 $9,276 $60,000 2. Condition Assessment of the Sewer Collection $100,000 $41,512 $0 System 3. CSO Comprehensive Reduction Plan Update - $50,000 $84,132 $100,000 Phase 1 4. Directed Wastewater Services $50,000 $25,000 $50,000 Total $220,000 $159,920 $210,000 The duration of the Agreement will be through January 31, 2004. Funds for the tasks are in the 2003 budget or will be requested in future budgets. Tasks will only be executed when funds become available. If progress on tasks during 2003 is satisfactory, the Agreement will likely be amended in 2004 to include wastewater design work budgeted for that year. N:\UAC\Original~pril8 B&C Contract.wpd WASHINGTON, U.S.A. UTILITY ADVISORY {~O~ll~lTTi=l::: I~Ii::~10 DATE: April 8, 2003 TO: UTILITY ADVISORY COMMITTEE FROM: Stephen Sperr, P.E., Engineering Manager RE: Elwha River Salmon Hatchery Lease Summary: The Washington Department o£ Fish and Wildli£e (WDFW) operates a Ilsh rearing facility on leased City property adjacent to the Elwha River and the City's Industrial Water Line (IWL). The lease allowing them to operate on the site and use a portion of the water diverted from the Elwha River IWL expired in March 2003. A new 3-year lease is being negotiated, to include terms similar to previous lease agreements, as well as addressing new issues related to the Elwha Dam Removal Project. Recommendation: Forward a favorable recommendation to City Council to authorize the Mayor t.o. sign a lease with the WDFW for property adjacent to the Elwha River, subject to any substantial changes to the attached contract being reviewed by UAC before Council action. Background/Analysis: The Washington Department of Fisheries, now part of WDFW, constructed a salmon rearing facility on City property next to the Elwha River in the 1970's. The facility was built to mitigate the impacts that the two dams on the Elwha River had on salmon stocks in the river. Previous leases allowed the WDFW to operate the facility and use a portion of the city's manufacturing water right (up to 50 cubic feet per second out of the original water right certificate amount of 150 cfs) from the surface water intake built by the City in 1929. The current lease was entered into in March 2000, for a period of 3 years. Previous leases were of much longer duration, but due to the unknown impact of the federally-funded Elwha Ecosystem and Fisheries Restoration Act (the Elwha Act) at the time, a short lease seemed appropriate. The lease being negotiated currently is also proposed to be of 3 years duration, and addresses some issues that have come up relative to the Elwha Act. These new issues are as follows: 1. Habitat Conservation Plan (HCP) The lease will include wording to the effect that the WDFW agrees to support efforts by the City and the National Park Service in obtaining a "low effect" HCP to allow activities to take place in the Elwha River to prevent channel meander away from the rearing facility and the City's Ranney Collector well. April 8, 2003 UAC Elwha River Salmon HatchexT Lease Page 2 of 2 2. Fish Screens The lease will include wording committing WDFW to maintaining fish screens on intake facilities associated with facilities constructed under the Elwha Act and/or City's Industrial Water Line (IWL). 3. Permitting & Construction of Facilities under the Elwha Act The lessee will agree to cooperate in the permitting and construction phases of the facilities to be constructed under the Elwha Act. 4. Use of City Water Previous leases allowed the facility to divert as much as 50 cfs of surface water, using that part of the City's manufacturing water fight set aside for "fish rearing". It is proposed under the new lease to allow up to 36 cfs to be used by the facility, with the balance of the 50 cfs to be to be used by the City as it sees fit, subject to the water right. All other terms of the previous lease either remain in place or have been removed because they were no longer applicable. The terms remaining in place include details on the operation or modification of the facility, the coordination of activities with Daishowa America and other potential users of the IWL, access to the site, record drawings and liability. The City Attorney's office has been working with Public Works and Utilities staff, as well as the WDFW, to finalize a new lease in a timely manner. It is recommended that the UAC allow staff to forward the draft lease to WDFW for consideration before sending it to the City Council. If substantial changes are desired, than the lease will be brought back to the UAC for consideration before it is submitted to the City Council. N:\UAC~FinalXApril8 Hatche~ Lease.wpd LEASE This Lease, made and entered into this day of March, 2003 by and between the CITY OF PORT ANGELES, a municipal corporation of the State of Washington, hereinafter referred to as Lessor, and the STATE OF WASHINGTON, Department ofFish and Wildlife, hereinafter referred to as Lessee. WHEREAS, Lessor is the owner of certain lands in Sections 3 and 10, Township 30 North, Range 7 West W.M., and has constructed and operates thereon a water diversion dam, channels, tunnels, and appurtenances for appropriating waters of the Elwha River. AND WHEREAS, Lessee desires to lease certain lands of Lessor for the construction and operation of salmonid rearing facilities and to use Lessor's water diversion facilities for supplying water to the salmonid rearing complex. AND WHEREAS, Lessee acting by and through its director under and pursuant to RCW 75.08.040 has authority to lease such lands and construct all necessary facilities thereon, as may be necessary for the exercise of the powers and discharge of the duties of the Department ofFish and Wildlife. NOW THEREFORE, the Lessor, for and in consideration of the mutual exchange of promises as herein contained and the sum of ($ ), does hereby demise let and lease unto Lessee those portions of the Southeast quarter of the Southeast quarter of Section 3 and the Northeast quarter of the Northeast quarter, and the Northwest quarter of the Southeast of the Northeast quarter of Section 10, all within Township 30 North, Range 7 West, W.M., as shown in Exhibit 1 and 2 attached hereto and by reference incorporated herein, subject to the conditions, exceptions, and reservations hereinafter set forth. A. TERM OF LEASE AND OPTION TO RENEW 1. The term of the lease shall be for 3 years beginning on day of March, 2003 and ending on the __ day of March, 2006 unless sooner terminated as hereinafter provided. 2. At conclusion of said lease term, Lessee shall have the first right of refusal for extending this lease, provided any extension thereof is determined by the Port Angeles City Council to be in the best interest of the City. B. TERMINATION OF LEASE 1. This lease shall terminate: a. At the termination of the lease period or extension thereof; or Page- 1 b. After a period of consecutive years of non-use by Lessee of the leased premises for fish propagation purposes; or c. Thirty (30) days after Lessee has given written notice to Lessor of its intent to terminate this Lease. 2. Upon termination of this lease, or any extension thereof, as provided for herein, Lessee agrees to decommission the facility, at the sole cost of lessee and to certify that there is no evidence of contamination on the property. Lessee further agrees to revert the leased premises to its original condition unless Lessor agrees otherwise in writing. C. NOTICES Any notices to the Lessor or Lessee or others required or authorized by this lease shall be deemed properly given if mailed postage prepaid as follows: LESSOR: Mayor City of Port Angeles PO Box 1150 Port Angeles WA 98362 LESSEE: Director Department of Fish and Wildlife 600 Capitol Way North MS: 43135 Olympia WA 98501-1091 USERS: Daishowa America Attn: Mill Manager P.O. Box 271 Port Angeles, WA 98362 The designation of the person to be notified or the address of such persons may be changed at any time by written notice given in the same manner as provided for in this section for other notices. D. FISH REARING COMPLEX 1. Lessee may construct, operate, repair, improve, replace, and maintain fish rearing facilities, storage buildings, residences and reasonable and necessary appurtenances for building and operating salmonid rearing facilities, at no cost to the Lessor, on the following described portion of Section 3 and 10, Township 30 North, Range 7 West, W.M., to wit: Page - 2 Beginning at the section comer common to Sections 2, 3, 10, and 11, Township 30 North, Range 7 West, W. M.; thence North 03°18'21" East along the East line of said Section 3 a distance of 250 feet, thence North 86°41'39"West a distance of 220 feet, more or less, to a point which lies on the crest of the East bank of an existing water diversion channel; thence South 25o16' West along the crest of said bank a distance of 725 feet, more or less; thence North 85o30' West a distance of 50 feet, more or less; thence North 27°08'35'' East a distance of 114 feet; thence North 62°51'25" West a distance of 100 feet; thence North 27°08'35'' East a distance of 684.12 feet; thence North 02°51'25'' West a distance of 424.56 feet; thence North 30°51'25" West a distance of 559.16 feet to a point on the North line of the Southeast quarter of the Southeast quarter of said Section 3; thence South 86°47'24'' West along the North line of said Southeast quarter of the Southeast quarter a distance of 810 feet, more or less, to a point on the thread of the Elwha River; thence Southerly upstream along said thread of the Elwha River a distance of 260 feet, more or less; thence North 86°47'24'' East a distance of 610 feet, more or less; thence South 30°51'25'' East a distance of 354.57 feet; thence South 02°51'25" East a distance of 331.46 feet; thence South 27°08'35'' West a distance of 707.60 feet; thence South 72008'35'' West a distance of 240 feet; thence South 00°00' East a distance of 190 feet; more or less, to a point on the Northerly line of the abandoned Chicago, Milwaukee, St. Paul and Pacific Railroad right of way; thence Easterly along said right of way line a distance of 1100 feet, more or less, to a point on the East line of said Section 10; thence North 06°26'24'' West along the East line of said Section 10 a distance of 235 feet, more or less, to the point of beginning, identified as Parcel A in Exhibit 1. 2. It is understood by the parties that the diversion channel water control structure as denoted on the Lessee's Drawing entitled Project Layout No. 3574-1 dated May 17, 1974 is not included in Parcel A. The rearing facilities, storage buildings, residences, and reasonable and necessary appurtenances as authorized in Section D, sub-section 1 above, are to be constructed as shown on Lessee's Drawing entitled Project Layout No. 3574-1 dated May 17, 1974, on file in the office of Lessee at Olympia, Washington, and by this reference incorporated herein. 3. Lessee may make such modifications to that portion of Lessor's North overflow channel located on said Parcel A, at no cost to the Lessor, as it may deem necessary for Lessee's operations hereunder, provided that such modifications do not interfere with the use of said Elwha River Extension Project by industrial users under contract with the City of Port Angeles. 4. Lessor reserves the right to construct, operate, repair, replace and maintain one or more water supply pipelines on, over, and across said Parcel A, at no cost to Lessee, in a location mutually agreeable to Lessor and Lessee. Page - 3 E. WATER DIVERSION FACILITIES 1. Lessee may use those portions of Lessor's water diversion facilities located on Parcels A and C and the portions of Lessor's water diversion tunnel located on Parcel A and between Parcels A and C, all as shown in Exhibits 1 and 2 for appropriating waters of the Elwha River for the operation of the fish-rearing facilities authorized herein, in a manner which does not interfere with the use of or the supply of that amount of water to be provided by contract to or guaranteed to present and future industrial users of water fi.om the Elwha River Water Extension Project. 2 Lessee may make such modifications and enlargements of Lessor's water diversion facilities, at no cost to the Lessor, as may be necessary for its operation herein-under subject to the following: a. The modification and enlargement of Lessor's water diversion facilities are to be constructed substantially as shown on Lessee's Drawing entitled Intake Structure Plan and Sections, Rock Dam Plan and Section, and CutoffWall Profile and Section, respectively numbered 3574-2, 3574-28, and 3574-30, dated May 17, 1974, on file in the office of Lessee at Olympia, Washington, and by this reference incorporated herein. The overflow weir from the diversion channel water control structure to the inlet for the salmonid rearing pond shall exceed a height of 92.6 feet as shown on Lessee's Drawing #3574-2 with datum level as shown on Lessee's Drawing #3574-28. b. In the event Lessee raises the height of Lessor's water diversion dam as authorized herein-under, Lessee shall construct and maintain the high water control dike as shown on Lessee's Drawing Nos. 3574-29 and 3574- 30 referenced to in Section E, subsection 2-a. c. Lessee agrees to fnnaish Lessor with full size copies of drawings 1 of 2 and 2 of 2 attached to the Lease of March 2000 and full sized documents listed in Section E.2.a and E.2.b. 3. Lessee assumes no obligation for the maintenance, repair, replacement, modification, or enlargement of Lessor's intake structure, water diversion tunnel and canal shown in Exhibits 1 and 2, unless the requirement for said maintenance, repair, replacement, modification, or enlargement results from the negligence of the Lessee, its employees, agents, or contractors, or unless such maintenance, repair, replacement, modification, or enlargement results from the requirements of the Lessee's operations as contemplated herein. Page - 4 4. Lessee shall assume such maintenance costs or other costs as are required by Lessee's operations herein of Lessor's water diversion rock dam located on Parcel C in Exhibit 2 and shall cooperate in such maintenance with the Lessor and any of the industrial users of water from the Elwha River Water Extension Project. F. CHANGES AND ADDITIONS TO APPROVED STRUCTURES 1. In the event Lessee deems it necessary or desirable to enlarge, modify, or relocate any facilities as authorized herein or to construct additional facilities, the following procedures are to be followed: a. Lessee shall give written notice to Lessor and present and future industrial users of the Elwha River Water Extension Project of its desire to change or relocate existing facilities or to construct new facilities. b. Concurrent with said notice, Lessee shall furnish Lessor and present and future industrial users of the Elwha River Water Extension Project with a layout drawing showing the proposed changes or additions. c. Written approval of the Port Angeles City Council must be obtained prior to proceeding with any modification, addition or other change to the premises. G. ROADS 1. Lessee may use those roads of Lessor's for its operation hereinunder as shown on Parcel D in Exhibit 2. 2. Lessee may use those roads of Lessor's located on Parcels A and B in Exhibit 1 for its operation herein-under. 3. This lease is non-exclusive and Lessor reserves the right unto itself and its agents, assignees, or successors in interest to use the herein described access road in the conduct of its or their business. 4. Lessee agrees to bear its full share and proportion of the burden of maintaining said roads during the term of this lease based upon the use of said roads by Lessor, Lessee, and others. H. COOPERATION WITH NATIONAL PARK SERVICE AND CITY 1. Lessee agrees to support the efforts of the National Park Service and City in the pursuit of the issuance of a low affect HCP and/or Corp of Engineers Permit to allow activities to take place in the channel and/or any other actions that may be necessary to prevent the channel from migrating away from the hatchery and Page - 5 Ranney Collector. 2. Lessee agrees to commit to cleaning the fish screens which are to be installed at the entrance to the surface water diversion intake structure to be modified by the National Park Service as part of the water mitigation facilities to be constructed. 3. Lessee shall fully cooperate with the National Park Service and the City during the permitting and construction phases of the Industrial Water Treatment facilities associated with the Elwha Ecosystem System and Fisheries Restoration Act. 4. Lessee agrees to provide Lessor with copies of all ground water well permits, including renewals and or changes to existing permits as well as applications for new ground water well permits. Lessee shall obtain City concurrence before applications for new ground water well permits are submitted for approval. Lessee shall also provide an accurate map citing location of all existing ground water wells on City property, which map shall be updated in the event that any wells are added. I. LIMITATION OF LIABILITY OF LESSOR The Lessor shall not be liable to the Lessee or to any third parties for any loss, claim of loss, expense, or liability for injury to any person or damage to any property arising out of Lessee's operation of the facilities as authorized herein and Lessee agrees to indemnify and hold Lessor harmless from any such loss._Lessee takes the premises as they are without any warranty by the City of Port Angeles and that the City has no duty to make the premises safe for the Lessee or its employees. J. WATER RIGHTS 1. For the period of this lease or renewals or extensions thereof, Lessor assigns to the Lessee the right to appropriate 36.0 cfs of the waters of the Elwha River as authorized in surface water certificate No. 1328 and modified by certificate of change, No. 43, for the operation of the facilities authorized hereinunder. Lessee grants to the Lessor the right to use, for other purposes, any unused portion of the 36.0 cfs authorized in the surface water certificate No.1328 and modified by certificate of change No .43. K. It is understood by the parties that this lease and rights, duties, grants, covenants, obligations and responsibilities of the parties hereto are subject to the rights and duties of users of the Elwha River Water Extension Project, specifically including but not excluding by non-reference those rights, duties, grants, covenants, obligations and responsibilities arising by virtue of the contracts entered into between the City and the industrial users and their successors, of the water supplied by the system dated December 18, 1929, known as the Elwha River Water Extension Project, as extended by ordinance #888 of the City of Port Angeles. Page - 6 It is further understood that the Lessee will not under this lease pay for any water used in said fish rearing facilities and that Lessor will not charge for such water used thereby relieving Lessee and Lessor for the purposes of this lease of payments, reimbursements, or reductions in rates as contemplated by paragraph 8 of the contract of December 18, 1929 between the Lessor and ITT Rayonier Incorporated's predecessor in interest, and as contemplated by Paragraph 7 of the contract of December 18, 1929, between the Lessor and Crown Zellerbach Corporation's predecessor in interest. L. LIABILITY OF LESSEE Lessee recognizes that RCW 4.92.090 provides as follows: "The State of Washington, whether acting in its governmental or proprietary capacity, shall be liable for damages arising out of its tortious conduct to the same extent as if it were a private person or corporation." and that said statute as now written or hereafter amended is applicable; and Lessee further recognizes that the industrial users of the water from the Elwha River Water Extension Project under contract with the Lessor are, along with other citizens, covered by such statue. M. This lease is subject to temporary modifications of the City's water right and/or mitigation measures necessitated by the removal of the Elwha Dams. IN WITNESS WHEREOF, The pa~ies hereto have hereunto subscribed names and affixed their seals the day and year first above mentioned. LESSOR: ATTEST: CITY OF PORT ANGELES A MUNICIPAL CORPORATION CITY CLERK MAYOR LESSEE: STATE OF WASHINGTON DEPARTMENT OF FISH AND WILDL~E Elyse Axell Kane, Lands Division Manager Page - 7 STATE OF WASHINGTON) ) SS. County of Clallam ) On this day of March, 2003, before me personally appeared Glenn Wiggins and Becky J. Upton, to me known to be the Mayor and City Clerk for the City of Port Angeles, a municipal corporation, that executed the within and foregoing instrument, and acknowledged the said instrument to be the free and voluntary act and deed of said municipal corporation, for the uses and purposes therein mentioned, and on oath stated that he and she were authorized to execute said instrument. GIVEN unto my hand and official seal this __ day of March, 2003. NOTARY PUBLIC in and for the State of Washington, residing at Port Angeles. My commission expires: STATE OF WASHINGTON) County of ) On this __ day of March, 2003, before me personally appeared Elyse Axell Kane, to me known to be the Lands Division Manager for the State of Washington, Department ofFish and Wildlife, that executed the within and foregoing instrument, and acknowledged the said instrument to be the free and voluntary act and deed of said government, for the uses and purposes therein mentioned, and on oath stated that she was authorized to execute said instrument. GiVEN unto my hand and official seal this __ day of March, 2003. NOTARY PUBLIC in and for the State of Washington, residing at Port Angeles. My commission expires: C:\TEMPhelwha.hatchcry.lease. fmal,wpd Apdl 3, 2003 (10:31am) Page - 8 pORTANGELES WASHINGTON, U.S.A. UTILITY ADVISORY COMMITTEE MEMO DATE: April 8, 2003 TO: UTILITY ADVISORY COMMITTEE FROM: Scott McLain, Deputy Director for Power Systems R~: Clallam PUD Wholesale Water Contract Summary: The Clallam County PUD (District) has been receiving wholesale water service from the City for many years to serve PUD water custom~rs in the area east of the City limits and west of Morse Creek. The last agreement was executed in 1994 and annual amendments have extended the contract until the end of 2002. A new agreement has been discussed with the District to continue providing wholesale water for an additional three years. Recommendation: Forward a favorable recommendation to the City Council authorizing the Mayor to sign the Wholesale Water Contract with the Clallam Count~ PUD. Background/Analysis: The Clallam County PUD has had a contract for many years to supply wholesale water to serve their water customers east of the City limits and west of Morse Creek. This wholesale water supplements several wells that are operated by the District in that area. The last contract was executed in 1994 and has been extended by six amendments to the end of 2002. The District and the City have been negotiating a new contract for the past several months which will continue to provide wholesale water to the District for an additional three years. The contract contains some new provisions to address the City's concerns in the Urban Growth Area (UGA) east of the City. Changes to the contract include the following: · Rates have been adjusted based on the water cost of service study completed last year and include increases for the three years of the contract of 6%, 6%, and 4.5%. Withdrawal rates have been established for both the upper zone and the lower zone. · In the event of a water shortage, the District will implement their water shortage plan upon notification by the City. · The District will share in any maintenance costs for the water transmission pipeline that serves their Gales Addition reservoir. · The District will build any new water distribution facilities in the UGA to the City's standards. · New customers, or customers increasing their water service size in the UGA will be required to sign a pre-annexation agreement. April 8, 2003 UAC Memo Clallam PUD Wholesale Water Contract Page 2 There are two outstanding issues with the PUD on contract language and have been highlighted in the contract. The PUD has been requested to provide written justification and if we receive it in time, it will be provided at the UAC meeting. This Contract provides several improvements to the previous contract and staff recommends forwarding a favorable recommendation to City Council to authorize the Mayor to sign the agreement. WHOLESALE WATER CONTRACT THIS CONTRACT, made and entered into by and between the CITY OF PORT ANGELES, a municipal corporation, hereinafter called the "City", and the PUBLIC UTILITY DISTRICT NO. 1 OF CLALLAM COUNTY, a municipal corporation, hereinafter called the "District"; WHEREAS, there has been in existence between the City and the District a Wholesale Water Contract, and the parties hereto desire to continue said contractual relationship and to extend the sale of water by the City to the District as set forth herein; and WHEREAS, the City and the District realize certain mutual benefits from cooperative efforts in the operation and maintenance of their respective water systems and desires to cooperate in planning for the future supply of their customers; and WHEREAS, the City's policy is that the City's primary obligation is to supply water to current and future City residents and businesses and that the District's purchase of City water is subservient thereto~ (Note: PUD desires that this whereas clause be removed.) NOW, THEREFORE, the City agrees to deliver and sell to the District, and the District agrees to buy from the City, wholesale water under the following provisions: 1. Rates and Water Use Limits. A. The District shall pay the following rates: Gales Addition Reservoir (High Zone): Jan. 2003 - Dec. 2003 billing cycle- $0.94 per 100 cubic feet per month Jan. 2004 - Dec. 2004 billing cycle- $1.00 per 100 cubic feet per month Jan. 2005 - Dec. 2005 billing cycle- $1.05 per 100 cubic feet per month -1- Baker Street Intertie (Low Zone): Jan. 2003 - Dec. 2003 billing cycle- $0.90 per 100 cubic feet per month Jan. 2004 - Dec. 2004 billing cycle- $0.96 per 100 cubic feet per month Jan. 2005 - Dec. 2005 billing cycle- $1.00 per 100 cubic feet per month B. The maximum withdrawal rate from the City's water system at the Gales addition reservoir shall be 500 gallons per minute. The maximum withdrawal rate from the City's water system at the Baker Street intertie shall be 175 gallons per minute. Short term changes to the withdrawal rate may be made with the approval of the City. C. The City shall have the unilateral option to adjust the rates described above upon 30 days notice if rates are changed for other City customers. 2. Other Conditions. A. The District agrees to manage its water system to stabilize demand on the City's system. The District has in existence a water shortage response plan for its water systems within the County, and will maintain and update its plan as conditions warrant. In the event of water supply or capacity problems on the City water delivery system, the District shall implement the plan within the Urban Growth Area east of Port Angeles upon notification by the City. B. The District agrees to continue to investigate and develop other feasible sources to supply water to the area serviced by this contract for the Eastern Port Angeles Urban Growth Area. C. The District and the City shall cooperate to the maximum extent possible by participating in water system capital improvement projects of mutual benefit. D. The District agrees to reimburse the City for 95% of the costs for maintaining the transmission pipeline between the City limits and the Gales addition reservoir. E. The District agrees to construct all new and replacement facilities within the urban growth area to a standard that meets or exceeds urban services standards and guidelines. -2- F. In case of emergency, water shortage, or whenever the public health, safety, or the distribution of water so demands, the City may reduce or limit the time for, or temporarily discontinue, delivery of water to the District. Water delivery may also be temporarily interrupted for the purposes of making repairs, extension, or doing other necessary work. Before altering the delivery of water to the District, the City will attempt to notify the District, in advance, of any changing, reducing, limiting, or interruption of service. The City, however, shall not be responsible for any damage resulting from interruption, change, or failure of the water supply system. G. The water purchased by the District shall be for the customers of the area served by the District easterly of the City of Port Angeles. The District agrees to obtain the prior approval of the City when any new customer or combination of new customers of the District are projected to increase the Dislrict's monthly water usage under this contract for both points of delivery bY 50,000 cubic feet in any month. The District also agrees to obtain the prior approval of the City when its total water usage under this contract is projected to exceed 2.5 million cubic feet in any month. H. The City's policy shall be, and the District hereby agrees, that all new and existing customers inside the City have priority over the District for use of City water and that the City may, at its sole discretion, reduce the delivery of water to the District in order to better supply City customers or may terminate this Contract upon 60 days written notice as set forth in paragraph 5 below. (Note: PUD would like this section removed also.) I. All water supplied under this contract, after it passes the point of delivery at the present service connections, shall be the property of the District. The District shall be responsible for all monitoring and reporting requirements to comply with the Safe Drinking Water Act. J. The City shall not be liable for any loss or damage to any person or property, whatsoever, resulting directly or indirectly from the use by the District or its customers of the water supplied under this contract, and the City shall further not be liable for any interruptions in supply of water to the District or its customers. The District agrees to indemnify the City for, and save it harmless from, all losses or damages which the City may suffer or incur by reason of the assertion of any such claim against the City, including all fees, costs, expenses, and attorney fees incurred in defending against such claims. K. The District agrees to allow the City to use access roads and the District's bridge across Morse Creek for access to City facilities. The District also agrees to maintain three phase electric service for backup emergency service to the City's Elwha River pump station and any associated facilities. L. The District and the City agree to jointly participate in the development of a cooperative water supply plan for the area within the Urban Growth Area between the east City limits and Morse Creek. 3. Payment. Billings for services rendered shall be paid by the District monthly, and in the event the District fails to receive a monthly billing, such failure shall not release the District from liability for payment. The billing, payment, and collection of this contract shall be as specified in the City's Utility Accounts Ordinance, 13.16 ?AMC. 4. Pre-annexation agreement The Port Angeles City Council, by Ordinance No. 3082, has established a policy of allowing the extension of City utility services into its urban growth areas without annexation. The policy of the Washington State Growth Management Act is that urban growth areas should be incorporated into cities at sometime in the future. In support of these policies, the City requires that all new water service property owners (including those that increase their service size) using the City's wholesale water shall execute, record, and provide a copy to the City of the attached (Attachment 1 ) pre-annexation agreement before water service is provided. The property owner shall pay for all of its costs and for the recording fees associated with the pre~annexation agreement. The pre-annexation agreement shall be a covenant running with the land and therefore shall be binding on the current property owner and all successors in interest in the property serviced by the City's wholesale water. -4- The property owner shall be reformed by the District that the City is providing wholesale water based on plans for annexation of the property to the City of Port Angeles. The District shall not install water service to the property before receiving a letter of authorization from the City stating that all requirements of the City have been met. The District shall provide new water customers, or customers requesting an increase m the size of their water service, a packet containing the forms in exhibit "A". These forms shall be executed by the water customer and submitted to the City for approval of the water service. Upon receipt of the completed forms, the City shall send approval of the water service connection to the District. The forms provided in exhibt "A" may be changed upon written notification by the City. 5. Termination. This Contract shall terminate with the last billing cycle in December, 2005, or upon 60 days written notice by either party, whichever is earlier. DATED this day of ,2003. CITY OF PORT ANGELES PUBLIC UTILITY DISTRICT NUMBER 1 OF CLALLAM COUNTY Glenn Wiggins, Mayor President ATTEST: ATTEST: Becky J. Upton, City Clerk Secretary APPROVED AS TO FORM: Craig D. Knutson, City Attorney -5- CAPITAL FACILITIES PROJECT Elwha Underground Rebuild Project #: CL03-01 Project Description Estimated Pr¢ ect Costs This Electric Utility project involves the rebuild of Planning/Design: $80,000 ~pproximately 2.5 miles of 3-500 kcmil direct buried Land/Right-of-Way: $0 md~rground primary cable with new cable in conduit. Construction: $640,000 Other: $0 Total: $720,000 Estimated Project Funding Reserves: Donations: 3rants: ~onds: Loans: Utilities: $720,000 3eneral Fund Current: Unknown: $0 Total: $720,000 Yearly Ex ~ense Summa~, - Capital~et Operating Prior Years 2003 2004 2005 2006 2007 I 2008 I 2009 Prol Total $80,000 $230,000 $140,000 $270,000 $0 $0I $0I $0 $720,000 Yr Const Comp:I 0 I First Year ofOperatingCost: 0 Operating Cost Amount: $0 Easements Reqd: No Right of Way: No SEPA Required: No Other Permits: No City Priority: Legal Mandate: No Concurrency: No Contract: Yes Department: Public Works & Utilities Division: Light Cost Center: 0 Contact: Jim Harper Div. Priority: 7 Justification: This rebuild is necessary to replace cablcs installed in 1977 which have reached their expected 20 year life. Cable failures can be expected to increase in number very rapidly over the next few years if the cables are not replaced. Cable failures each require 1-3 days to find and repair. Impact if not executed: Delays in restoring power to Elwha pumps and other customers on this line. Remarks Date Revised [ This project is planned for construction in 3 phases beginning in 2003, with thc design for all 3 phases to be completed in 2002. Elwha Underground Rebuild Project #: CL03-01 Funding Sources ] ILight Fund - Rates $720,000 $720,000 Picture / Area Map REVIEW: Department Head:. Date: Comm. Dev. Director: Date: Finance Director: Date: City Engineer: Date: City Manager: Date: