Loading...
HomeMy WebLinkAbout5.810 Original Contract S.B 10 7~ Oz.-{06{OI Contract 145.06.003.amd 1 INTERLOCAL COOPERATION AGREEMENT AMENDMENT 1 Clallam County and the City of Port Angeles Waiving Utility Surcharge and Amending Construction Cost Provision for the Sewer System in the Eastern Urban Growth Area THIS AGREEMENT is executed by and between Clallam County (hereinafter, "the County''), a political subdivision of the State of Washington, and the City of Port Angeles (hereinafter, the "City'') (the County and the City are collectively referred to herein as "the Parties'') for the purpose of advancing the efforts of the Parties to extend City wastewater collection and treatment services to the commercial areas of the City's Eastern Urban Growth Area (EUGA). WHEREAS, the Parties are authorized and empowered to enter into this Agreement pursuant to Chapter 39.34 RCW, WHEREAS, the Parties have entered into the following agreements, which are incorporated herein by this reference: 1. Interlocal Cooperation Agreement Establishing a Method for Phased Annexation of the Port Angeles Eastern Urban Growth Area, signed November 8, 2005; 2. Interlocal Cooperation Agreement Establishing a Method for Wastewater Collection and Treatment Services Extension to the Port Angeles Eastern Urban Growth Area, signed December 20, 2005; and 3. Interlocal Cooperation Agreement for Coordinating the Construction, Administration, and Operation of the Sewer System for the Port Angeles Eastern Urban Growth Area, signed November 21, 2006. WHEREAS, the Parties now know it is likely the costs of extending the City's wastewater services into the EUGA will exceed five million dollars ($5,000,000), and the Parties wish to amend the Agreements to provide for payment of all construction costs of the EUGA sewer system up to six million dollars ($6,000,000); THEREFORE, in consideration of mutual promises and covenants herein, the Parties agree: 1. The County agrees to pay all construction costs and costs related to construction of the EUGA sewer system that do not exceed six million dollars ($6,000,000). If construction costs exceed six million dollars ($6,000,000), the City and the County will negotiate an agreement to pay those costs that exceed six million dollars ($6,000,000). 2. If construction costs exceed five million dollars ($5,000,000), the City agrees to take action as necessary to apply to residential customers in the EUGA the single residential unit monthly rate established in Port Angeles Municipal Code (PAMC) 13.65.0lD.8 without the sewer utility surcharge established in PAMC 13.65.040, and to apply to commercial and industrial customers the commercial and industrial rate established in PAMC 13.65.020, without the sewer utility surcharge established in PAMC 13.65.040. j:\public\d30 uga management\pa euga\final documents\amendment l.doc Contract 145.06.003.amd 1 3. The amount of the County's System Development Charge is increased to $3,000. 4. The provisions of paragraphs 1, 2 and 3 above are intended to amend the Interlocal Agreements referenced above. Except as amended herein, the Parties ratify and affirm the Interlocal Agreements referenced above. IN WITNESS HEREOF, this Agreement is executed by Clallam County and by the City of Port Angeles, Washington. Dated this 1ft day of February 2007 Dated this 6\.'1'fA1'tiay of February 2007 ATTEST: ATTEST: lv\~ Hz> (Je-v1 Trish Holden, CMC, Clerk of the Board APP~OYED AS TO FORM: 11~ L-- ~ k William E. Bloor City Attorney APPROVED AS TQ ForrJ= 7'1L I r;~ Mark Nichols Deputy Prosecuting Attorney 'r j:\public\d30 uga management\pa euga\finaJ documents\amendment l.doc 5. ?SID r ..~c ~~' h " "._ , ~"'" ." ... "",_W" ~ORTANGELES .I CITY 0 F WAS H I N G TON, U. S. A. CITY COUNCIL MEMO DA TE: February 6, 2007 To: CITY COUNCIL ~-yI'-' MARK E. MADSEN, CITY MANAGERYVl FROM: SUBJECT: AMENDMENT TO EASTERN URBAN GROWTH AREA SEWER EXTENSION INTERLOCAL AGREEMENT Summary: Bids have been opened and evaluated for the Sewer Extension project in the EUGA. The City/County Interlocal Agreement for funding requires re-negotiation of funding should the project exceed $5,000,000. With the bid opening, the project is now expected to be around $5.9 million. Recommendation: Approve amended interlocal agreement and authorize Mayor to sign. Backl!round I Analvsis: This project is a joint City/County project, which benefits the entire community. Planning and design of the project has been ajoint effort, with the City assuming the lead on design and construction, and the County assuming the lead on funding. The previously approved funding plan calls for the use of $3,500,000 of Opportunity Funds, along with other funds from the County and private sources. Summary of major points of amendment: 1. County agrees to pay all construction costs up to six million dollars ($6,000,000). Any costs in excess of that amount will require renegotiation. 2. The City will take action to apply to EUGA residential, industrial and commercial customers the same rate as are applied to City residential, industrial and commercial, without a sewer utility surcharge. 3. County system development charge is increased from $2,600 to $3,000. FINANCE: e Equipment Purchase - Light Duty Velucles Eastern Urban Growth Area Sewer Project ~ ;. ?'\,.. :~.~:~ ')j. - .., I , ~ '. I" '. \ ,. } '\,....! .:...,..:~~ ..)of I , 1 Erickson Park Skate Park Improvements Equipment Purchase - Aerator & Top Dresser Bids e CONSENT AGENDA: CITY COUNCIL MEETING February 6, 2007 o. g I D 6034 1. Equipment Purchase - Light Duty Vehicles: Director Cutler provided information relative to the purchase of four light duty vehicles, noting that approximately $12,000 was saved by the realigmnent of some equipment. Discussion ensued concerning a vehicle for the archeologist and the use of 4 x 4 vehicles. Councilmember Braun moved to authorize the City Manager to sign ~he contract and purchase orders for the light duty vehicles with Ruddell Auto Mall for Schedules A, B, C, and D. The motion was seconded by Councilmember Petersen and carried unanimously. 2. Eastern Urban Growth Area Sewer Project: Manager Madsen reported that bids for the Eastern Urban Growth Area Sewer Project came in higher than the engineer's estimate, so there is a need to amend the Interlocal Agreement. He outlined the major points ofthe amendment in that the County agrees to pay all construction costs up to $6 million; the City will take actIOn to apply to EUGA reSidential, industrial, and commercial customers the same rate as that applied to City residential, industrial, and commercial, without a sewer utility surcharge; and the County system development charge is increased from $2,600 to $3,000. Following brief discussion, Councilmember Munro moved to approve and authorize the Mayor to sign the amended interlocal agreement. Deputy Mayor Williams seconded the motion, which carried unanimously. Manager Madsen informed the Council that an award of the contract has been temporarily delay~d. Director Cutler indicated that discussions have been held with the Washington Department of Transportation on easements and franchises for the installation of the sewer line The City had expressed its desire for an open cut, and WSDOT just today indicated its preference for a jack and bore for the utility corridor. Director Cutler indicated that further discussions must be held with WSDOT before a recommendation can be forwarded to the COunCIl. 3. Erickson Park Skate Park Improvements: Director Cutler provided a summary of finish work to be completed at the Skate Park, to include the installation of additional fencing, sidewalks, entrance ramp, topSOIl work, and seeding in the area. He indicated this is the second time out for bids, and two bids were submitted. Councilmember Munro moved to award and authorize the Mayor to sign the contract with RJ Services, Inc., of Port Angeles, in the amount of $34,606.70, including tax, for the Erickson Park Skate Park Improvements, Project 06-23 and, further, to authorize an additional Governmental Fund allocation in the amount of$8,000 ($38,000 total) for the project. The motion was seconded by Councilmember Petersen. Discussion ensued on the matter of contingency funds included in the project and the likelihood of completing the project without the contingency. Therefore, Councilmember Munro amended the motion to exclude additional contingency funds. Councilmember Petersen, as seconder of the motion, agreed to the amendment. A vote was taken on the motion, which carried unanimously. 4. Equipment Purchase - Aerator & Top Dresser Bids: Director Cutler reviewed the proposed purchase of an aerator and top dresser for the Parks Maintenance Division. Councilmember Munro moved to authorize the City Manager to sign a contract and purchase order with Western Equipment Distributors, Inc., for a ProCore 880 and a 414 Dakota Turf Tender. The motion was seconded by Councilmember Headrick and carried unanimously. The Council was informed that a corrected expenditure approval list had been distributed earlier. Councilmember Braun moved to accept the Consent Agenda, -7- 5. ~/O ~ \l1~d00 Contract 145.06.003 INTERLOCAL COOPERATION AGREEMENT for Coordinating the Construction, Administration and Operation of the Sewer System for the Port Angeles Eastern Urban Growth Area THIS AGREEMENT is executed by and between Clallam County ("the County'') and the City of Port Angeles ("the City'') who are collectively referred to herein as "the Parties" for the purpose of providing for cooperative administration and operation of the extension of City wastewater collection and treatment services to the City's Eastern Urban Growth Area (EUGA). WHEREAS, the City and County have entered into an interlocal cooperation agreement dated December 20, 2005 establishing a method for extension of wastewater collection and treatment services to the Port Angeles Eastern Urban Growth Area; and WHEREAS, the system is currently being designed, and is scheduled for construction in 2007; and WHEREAS, the County has assumed the responsibility for funding the design and construction of the sewer system extension up to a maximum estimated total project cost of $5,000,000 as itemized in Exhibit A; and WHEREAS, the sewer expansion will serve County residents residing in the EUGA outside the City limits; and WHEREAS, the City will own and operate the EUGA Sewer System as an extension of the existing Port Angeles Sewer System; and WHEREAS, potential users of the EUGA Sewer System need information regarding timing of the project, cost of connection, process for connection, and technical requirements for side sewers, lateral sewers, and collection lines; and WHEREAS, the parties wish to coordinate the administration and operation of the EUGA Sewer System; and WHEREAS, the Parties are authorized and empowered to enter into this Agreement pursuant to Chapter 39.34 RCW, THEREFORE, in consideration of mutual promises and covenants herein, the Parties agree: Section 1 - Definitions A. "Agreement" means this interlocal agreement. B. "City" means the City of Port Angeles, Washington. C. "Contractor" means the construction company awarded a contract by the City to construct the EUGA Sewer System. D. "County" means Clallam County, Washington. E. "County Roads" means those roads within Clallam County that are owned by the county and maintained by the County Road Department. F. "EUGA" or "Eastern Urban Growth Area" means that portion of the Port Angeles urban growth area lying east of the eastern city limits. G. "EUGA Sewer System" means that portion of the City of Port Angeles sanitary sewer, including all present and future public interceptors, pump stations, trunk lines, collector sewers, appurtenances, easements and rights of way, located in the Eastern Urban Growth Area. H. "PAMC" means Port Angeles Municipal Code. I. "Project Engineer" means the engineer selected by the City to manage the EUGA Sewer project. Section 2 - Construction of EUGA Sewer System A. Final design plans and bid documents prepared by Brown and Caldwell shall be reviewed and approved by the County prior to advertising for bids. B. The City shall advertise for bids for the construction of the EUGA Sewer System, using the design plans and bid documents prepared by Brown and Caldwell. C. Following bid opening, the City shall submit to the County a complete copy of all bids submitted for the project. The City agrees to make no bid award that is not approved by the County Director of Public Works. County approval (or non-approval) shall be made in a timely manner. D. The County hereby agrees to fund the anticipated project costs of the EUGA Sewer System, with any approved alternatives, up to a target project cost (as itemized in Exhibit A) of $4,743,021. The County will also set aside an additional $256,979 reserve for unanticipated project costs, for a total estimated project cost of $5,000,000. If the successful bid will result in a total project cost that exceeds $5,000,000, the Clallam County Board of Commissioners and the City of Port Angeles must reach agreement on a revised financial plan before any bid can be awarded. E. The County shall pay up to 15 percent (15%) of the total bid price of the successful bidder to the City upon award to cover construction mobilization costs. Progress payments thereafter shall be made to the City based upon approved contractor billings, up to a maximum total project cost of $5,000,000. F. Periodic progress reviews shall be held during construction and shall involve the County, the City, the project engineer, and the contractor. G. Change orders or claims that increase project cost by $15,000 or more during construction must be reviewed and approved by the County Public Works Department before they are approved. County approval of such change orders shall be timely, and not unreasonably withheld. County approval of any change orders or claims that result in a total project cost in excess of $5,000,000 shall constitute agreement for the increased total project cost. J:\public\d30 uga management\pa euga\final documents\constructlon admm operation of sewer system.doc Page 2 H. All construction documents, pay requests or other records pertaining to this project shall be available for County review and inspection during and after construction. Once construction is completed, the City shall supply the County with a set of "as built" plans that accurately reflect the construction details of the EUGA Sewer system. 1. The County intends to issue to the City a Franchise to construct, operate, maintain, repair, and rebuild the EUGA Sewer System within the County's rights-of-way in the EUGA; provided that no work shall be done in a right-of-way until an application for work within the County right of way (ROW) being submitted to the County and approved by the County. Section 3 - Coordination of New Connections A. The parties agree that the standards for side sewers, sewer mains, sewer extensions and all Sewer System appurtenances shall be those set forth in PAMC and the City of Port Angeles Urban Services Standard and Guidelines. B. The parties agree that permits for connection to the EUGA Sewer system shall be administered by the City of Port Angeles, pursuant to Sections 13.61.100 through 13.61.160 of the City of Port Angeles Municipal Code. The County shall receive copies of all such permit applications and copies of all decisions on such applications. The City will not issue any permit for connection that involves work in the right of way or roadway of a County road, without an application for work within the County right of way (ROW) being submitted to the County and approved by the County. C. For the EUGA Sewer System, exemptions from the requirement in PAMC 13.61.070 and 13.61.090 will be issued by the County following the process outlined in subsection D below. The City will be given a copy of all such exemptions. D. For new development or any expansion of use requiring a building permit, the County will issue an exemption only if all the following requirements are met: 1) The lot is farther than 200 feet from the EUGA Sewer System or a lateral thereof, or the cost of extending the EUGA Sewer System would be an economic hardship on the owner or owners in that the estimated cost of a sewer extension would be over 125 percent (125%) of the cost of an approved septic or other private wastewater disposal system; 2) The owner or owners have signed a non-protest agreement for an LID to extend the EUGA Sewer System to the area; and, 3) The exemption will not be effective until a written permit for the septic or other private wastewater disposal system is obtained from the Clallam County Health Officer. E. Copies of all applications for sewer system extensions submitted to the City pursuant to PAMC 13.62.180 will be provided to the County Public Works Director or designee for review. Extensions will not be approved until any work in the right of way or roadway of a County road is approved by the County. F. Requests for utility local improvement districts may be initiated through either the County or the City. ]:\public\d30 uga management\pa euga\final documents\constructlon admln operation of sewer system.doc Page 3 G. Developer reimbursement agreements will be administered by the City pursuant to PAMC 13.68. Copies of all applications for such agreements shall be provided to the County. H. Clallam County will ensure that all building permits, land divisions, and septic system permit applications in the EUGA are issued consistent with the requirements for connection to the EUGA Sewer System. Section 4 - Coordination with County Road Deoartment on Future Sewer Line Locations A. Whenever the City learns of any proposed EUGA Sewer System work, (including side sewers, trunk lines, or extensions) within the right of way or roadway of a County road, the information will be transmitted or developer referred to the County Road Engineer so that the appropriate permitting can take place. B. The City will not issue any permit for connection or expansion of the EUGA Sewer System, in the County, and on or along a County Road or ROW, unless the County Road Engineer has approved all proposed work in the County right of way or roadway. C. The City will work together with the County to plan sewer line extensions and connections in such a way that the impact to the driving surfaces of County roads is minimized. Section 5 - City Collection of County Svstem Development Charae A. The City and County intend that the County shall be paid a System Development Charge, in the amount set forth in subsection B below, per equivalent water meter factor, as described IN PAMC 13.69.050, for each connection to the EUGA Sewer System. This charge is to reimburse the County for the cost of funding the EUGA Sewer System. The County and the City agree to implement a system to impose and collect this fee at the same time that the City connection fee and system development fee is collected. The County hereby authorizes the City, as appropriate and necessary, to collect the fee on behalf of the County. In the event the City does collect the fee on behalf of the County, the City will transmit all system development fees collected on the County's behalf to the County within 30 days after collection. B. The County System Development Charge shall be $2,600 until January 1, 2008. Effective January 1, 2008, and on each subsequent January 1 for a period of ten (10) years, the System Development fee shall be adjusted by the percent change in the January Seattle Consumer Price Index (CPI) between the current year and the preceding year. The County System Development Charge shall not be changed further after the tenth such annual adjustment. C. No property or structure shall be connected to the EUGA Sewer System until the County System Development Charge has been collected. D. Clallam County will use all funds so collected to pay for, or reimburse the funds used to pay for, this EUGA Sewer System project. E. The County's system development Charge is to be collected for all sewer connections within the EUGA through the year 2026, regardless of any intervening annexations. J:\pubhc\d30 uga management\pa euga\final documents\constructlon admln operation of sewer system.doc Page 4 Section 6 - Enforcement ResDonsibilities A. The County and City are each responsible for the enforcement of ordinances they have adopted pertaining to the EUGA Sewer System. To the extent necessary and practicable, such enforcement actions will be coordinated. B. The parties will not knowingly take any action, issue any permits, or allow any work on the EUGA Sewer System that would result in a violation of applicable ordinances of either party. Section 7 - Sewer EXDansion Coordinating Committee A. Sewer Expansion Coordinating Committee: A Sewer Expansion Coordinating Committee (SECC) shall be established. This committee shall be composed of staff from the Parties to this agreement, and will act as an advisory committee to the City Council and Board of County Commissioners on all matters concerning the operation, maintenance, expansion, financing, service fees, and construction of the EUGA Sewer System, and the implementation of this agreement. B. Membership: The SECC shall consist of the following members: 1) Clallam County Director of Public Works 2) Director of Public Works and Utilities for the City of Port Angeles 3) City Engineer or designee for the City of Port Angeles 4) Utilities Manager or designee from Clallam County 5) City of Port Angeles Director of Community and Economic Development or designee 6) Clallam County Community Development Director or designee 7) Clallam County Environmental Health Director or designee The Committee may draw upon other staff members from the agencies as necessary to assist in carrying out its duties. C. Officers and Procedures: The SECC chair shall rotate between the public works directors of the City and the County on an annual basis. The County Public Works Director shall be chair until January 2008. Recommendations of the Committee to the City Council or the County Board of Commissioners shall be presented as determined by the Committee, but the Committee shall make no recommendations that are not agreed to by both the City and County Public Works Directors. Nothing herein shall infringe upon the authority of the City or County officials that constitute the Committee from executing their respective responsibilities. D. Meetings: The SECC shall meet quarterly. The Committee shall be responsible for selecting a time and place for its meetings. E. Powers and Duties: The SECC shall have the following powers and duties: 1) Make recommendations to the City Council and County Board of Commissioners regarding the administration, financing, service fees, and expansion of the EUGA Sewer System. J:\public\d30 uga management\pa euga\final documents\constructlon admln operation of sewer system.doc Page 5 2) Make administrative recommendations regarding the coordination of permitting necessary for connections to or expansion of the EUGA Sewer System. 3) Review and make recommendations regarding the City's Sewer General Plan as it pertains to the EUGA. 4) Review the operation and management of the EUGA Sewer System and make recommendations for resolving any problems that are identified. 5) Make recommendations to the City Council and Board of Commissioners regarding any amendments to this interlocal agreement. 6) Discuss, plan recommend, and review any issues necessary to accomplish sections 1 through 5 of this agreement. Section 8 - Miscellaneous Provisions A. Effective Date: This agreement shall take effect upon signing by both parties, however the requirements for connection or exemptions for connection to the EUGA sewer system shall not be effective until July 1, 2007. B. Amendment: This agreement may only be amended by action of both the Port Angeles City Council and the Clallam County Board of Commissioners. C. Non-Waiver: No waiver by either party of any term or condition of this agreement shall be deemed or construed to constitute a waiver of any other term or condition or of any subsequent breach whether of the same or a different provision of this agreement. D. Risk Allocation - Liability: The City of Port Angeles agrees to defend, indemnify and hold harmless the County, its appointed or elected officers, agents and employees, from and against any and all liabilities of the City arising from the construction, ownership and/or operation of the EUGA Sewage System. E. Indemnity and Industrial Insurance Waiver. With respect to the performance of this agreement, the City agrees that it shall include in all contracts or subcontracts entered Into for the construction or the EUGA the following: The Contractor shall defend, indemnify and hold the City of Port Angeles and Clallam County, their respective officers, officials, employees and volunteers, harmless from and against any and all claims, injuries, damages, losses or suites including attorney fees, arising out of or in connection with the performance of this agreement, except for injuries and damages caused by the sole negligence of the City, in which case the contractor's obligation to defend, indemnify and hold the City harmless shall cease, or by the sole negligence of the County in which case the contractor's obligation to defend, indemnify and hold the County harmless shall cease, or solely by the combined negligence or the City and the County, in which case the Contractor's obligation to defend, indemnify and hold the City and County harmless shall cease. It is further specifically and expressly understood that the indemnification provided herein constitutes the Contractor's waiver of immunity under Industrial Insurance, Title 51 RCW, solely for the purposes of this indemnification. This waiver has been mutually negotiated by the parties. The provisions of this section shall survive the expiration or termination of this agreement. J:\pubhc\d30 uga management\pa euga\final documents\constructlon admln operation of sewer system.doc Page 6 F. Disputes. Each party to this agreement is committed to cooperate with the other in accomplishing the goals of the project, including allocation of adequate staff and budget to meet responsibilities identified by this and the related interlocal agreements. In the event either party believes there is an issue regarding the interpretation of, or compliance with, any provision of this agreement, that party shall provide written notice of that issue to the other party. The City Manager and the County Administrator will then meet within ten (10) days of the written notice in an effort to resolve the issue. If resolution is not achieved, each party will choose a person who is not an employee, appointed official or elected official of that party, and together those persons will choose a single third party who will act as mediator. Each party shall make its choice within five (5) days from the date of any determination that resolution has not been achieved, and the third party mediator shall be chosen by those parties no later that ten (10) days from the date of determination that resolution has not been achieved. The parties will each designate an official with delegated authority to approve a resolution of the issue, and that official will be present at, and participate in, the mediation. Mediated settlements will be reduced to writing, and each party to the dispute will share equally in the cost of the third party mediator. If resolution through non-binding mediation is still not achieved within 30 days of the date the mediator is appointed, then the parties may use other legal remedies available to resolve the dispute. G. Remedies. Except as otherwise provided for herein, no remedy conferred by any of the specific provisions of the Agreement is intended to be exclusive of any other remedy, and each and every remedy shall be cumulative and shall be in addition to every other remedy given hereunder, now or hereafter existing at law or in equity or by statute or otherwise. H. Force Majeure. Neither party shall be deemed to be in violation of this Agreement if such party is prevented from performing any of its obligations hereunder for any reason beyond its control, including without limitation, acts of God or of any public enemy, elements, flood, strikes, or an injunction or other judicial decision. IN WITNESS HEREOF, the parties have caused this Agreement to be executed this ~~hr~r day of NIJllbYYlloe-Y 006. ATTEST: ~. Su. Hz, k:LM1 Trish Holden, CMC, Clerk of the Board ATTEST: Becky J. Upt , C , City lerk A~PRtED AS TO ~ ,1/~~,' 1: 'William E. Blbar, City Attorney APPROVED AS TO Fif t)/7L ( ,1 Mark Nichols, Deputy Prosecuting Attorney ;', j:\publlc\d3q 4ga rnanagement\pa euga\final documents\constructlon admln operation of sewer system.doc Page 7 . EXHIBIT A EUGA SEWER SYSTEM PROJECT COST ESTIMATE Estimated total construction cost 1 $2,912,631 Contingency 10% $ 291,263 Subtotal $3,203,894 Washington State Sales Tax $ 269,127 Subtotal $3,473,021 Add Alternative 1 $ 370,000 Subtotal $3,843,021 Allied costs 2 $ 900,000 Target Project Cost $4,743,021 Additional project reserve $ 256,979 Total Estimated Project Cost $5,000,000 Notes: 1 Includes contractor indirect, overhead, profit, bonds, permits, liability insurance, and small tools 2 Allied costs include project administration, construction management, legal, and design engineering