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HomeMy WebLinkAbout4.4 Amendment (9)RETURN ADDRESS: City of Port Angeles P.O. Box 1150 Port Angeles, WA 98362 2004 1138764 aaam DOCUMENT TITLE: WHOLESALE WATER CONTRACT CONTRACT PARTIES: City of Port Angeles Public Utility District No. 1 of Clallam County FILEDfo: RECORC "+1 k IULS OF YiEC'0,ii0u.0 I;,_s ;.l wit 1E4 AUG TT -4 All 9: 9 Baker Street Intertie (Low Zone): WHOLESALE WATER CONTRACT THIS CONTRACT is 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 a long history of contractual experience has been in existence between the City and the District regarding 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 desire 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 secondary thereto; NOW, THEREFORE, in consideration of the above representations and the agreements set forth below, 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 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 in the City's water delivery system, the District shall implement its water 1 shortage response 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 jointly participating in water system capital improvement projects, including storage capacity, of mutual benefit. D. The District agrees to reimburse the City for 95% of the costs for maintaining the transmission line between the City limits and the Gales Addition reservoir. E. The District agrees to construct all new and replacement facilities within the Eastern Port Angeles Urban Growth Area to a standard that meets or exceeds the City's urban services standards and guidelines. 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. However, the City shall not be responsible for any damage resulting from interruption, change, or failure of the water supply system from any cause. G. The water purchased by the District shall be for the customers served by the District in the Eastern Port Angeles Urban Growth Area. 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 District'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. 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, 2 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 from any cause whatsoever. 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 that ultimately leads toward the implementation of policies adopted in the Water Resource Inventory Area 18 (WRIA 18) Watershed Management Plan. These policies include, but are not necessarily limited to the provision of water supply to urban areas in and between the Elwha River and Morse Creek drainage basins; however, nothing in this contract will prevent the City and District from preparing a joint service plan to benefit residents of the Urban Growth Area (UGA). 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, Chapter 13.16 PAMC. 4. Pre annexation agreement By Ordinance No.3082, the Port Angeles City Council has established a policy of allowing the extension of City utility services into its urban growth areas without annexation at the sole discretion of the City Council. The policy of the Washington State Growth Management Act is that urban growth areas should eventually be incorporated into cities. In support of these policies, the City Council requires that all new water service property owners using the City's wholesale water (including first time customers, customers that increase their service size, and new purchasers of property with existing water service) shall execute, record, and provide a copy to the City of a pre annexation agreement in the form of the attached Agreement for Water Service before water service is provided or continued. The form of the attached Agreement for Water Service may be changed upon written notification by the City to the PUD. Any pre annexation agreement signed by a PUD water service property owner in the Eastern UGA after the effective date of this contract will be valid only if a sanitary sewer system (east west trunk line) is extended or constructed that provides service to the UGA; or said property owner specifically requests annexation through any valid annexation method, whichever occurs first. In order to implement the above mentioned policies, the District shall ensure that the following requirements are met. The District shall inform all property owners in the Eastern Port Angeles Urban Growth Area that the City is providing wholesale water based on plans for 3 eee• oo m a na A w 0 j O.Y f. 4 L eventual annexation of the property to the City of Port Angeles. The District shall provide the attached Agreement for Water Service to all new water customers, customers requesting an increase in the size of their water service, and new purchasers of property, before providing or continuing water service to them using the City's wholesale water. The Agreement for Water Service shall be executed by the property owner and submitted to the City for approval of the water service. The property owner shall pay for all of its costs and fees associated with complying with and recording the Agreement for Water Service. The District shall not provide or continue water service to the property before receiving a letter of authorization from the City stating that all requirements of the City have been met. 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, unless extended by written agreement of the parties. 6. Term: This contract term shall be effective through the last billing cycle in December, 2005. It is the intent of both parties that future wholesale water contracts be negotiated with extended terms via renewal options that afford both parties the opportunity to effectively manage their respective water systems and cooperate in the planning and provision of future water supply to serve their respective customers. 7. Severability: Should any provision of this contract or a subsequent amendment thereto be held by a court of competent jurisdiction to be either invalid, void or unenforceable, the remaining provisions of this contract shall remain in full force and effect. DATED this e day o Y OF PORT GE ES Richard Hea nck, Mayor ti .dr SJ i c ty Clerk ,2004 (effective date). 4 PUBLIC UTILITY DI RICT NUMBER 1 OF CLAL W. E. Purser, President ATTEST Hugh E. Sincbson Jr., Secretary APPROVED AS TO F 4 City Attorney 5