HomeMy WebLinkAboutCAG2000-0097 - Supplement - City of Tacoma, Covington Water District - Second Supply Design Agreement - 06/28/2000 y �
SUPPLEMENTAL PROVISIONS TO THE DESIGN AGREEMENT
BETWEEN THE CITY OF TACOMA, CITY OF KENT AND THE
COVINGTON WATER DISTRICT DATED JUNE 28, 2000
The City of Kent and Covington Water District have provided written notice to
Tacoma Water to proceed with construction of the Kent/Covington Section of the
Second Supply Pipeline in accordance with the provision in Exhibit Q. These
Supplemental Provisions, dated this __day of May 2001,will add details to the
provisions in the design agreement to include construction.
Where the design agreement discusses such issues with reference to design as
nature of project, quality assurance and control, oversight, billings and payment,
and audits, these same provisions will apply to construction, where applicable.
Additional provisions that apply to construction only are included below.
7. Initiation of Project Construction
7.3 The Preliminary Project Construction Schedule and the Preliminary
Construction Budget are attached hereto as Exhibits F and G
respectively. Prior to commencing with bids and Project construction,
Kent, CWD and Tacoma shall accept the design and agree upon the
Project Construction Schedule and Construction Budget. The Parties
acknowledge that the Project Construction Schedule and Construction
Budget will be a best estimate only, and that the actual construction time
and costs of constructing the Project may differ from the Project
Schedule and Construction Budget,
7.4 Upon agreement of the Parties on the Project Construction Schedule and
Construction Budget, Tacoma shall promptly initiate construction of the
Project, and shall take all commercially reasonable actions to complete
construction of the Project in a manner consistent with the Project
Construction Schedule and Construction Budget, and the terms and
conditions of this Agreement.
7.5 Tacoma will follow its public bid process for the award of contracts for
the construction of the Project. If upon any bid opening it is determined
that the bids exceed the amount budgeted therefore (less any
contingency) as set forth in the Construction Budget, Tacoma shall not
award the bid for such element without the agreement of Kent and
CWD. If Kent and CWD do not agree to the award of a bid, Kent and
CWD shall have the right to request a re-bid. If Kent and CWD do not
agree to the award of a bid under such circumstances, Tacoma or Kent
and CWD may elect to terminate this Agreement by providing the other
May Is,2001 Page I of 8
party thirty (30) days written notice of its election to terminate the
Agreement.
7.6 It is the intention of the Parties, in order to allow Project construction to
begin at the earliest feasible date to meet the permit construction
window, to bid and award the contract for the fabrication of the pipe
within environmentally sensitive areas separate from and before the
remainder of the Project. If the Project is not constructed, or if this
Agreement is terminated prior to the completion of Project construction,
then in that event Kent and CWD shall own and be responsible for any
pipe which may have been fabricated for the Project, and for the
payment of any damages or liquidatcd damages to the manufacturer of
the pipe attributable to the Project.
7.7 Upon completion, all or designated portions of the Project needed to
serve Kent and CWD shall be placed in commercial service by Tacoma.
7.7 Tacoma shall not award a contract for construction of the pipeline until
the Habitat Conservation Plan for the Green River operation is approved
and the Incidental Take Permit is issued by the National Marine
Fisheries Service. Additionally, the Memorandum of Agreement with
the Washington State Department of Ecology for extension of the
Second Diversion Water Right shall be executed before awarding the
pipeline construction contract unless this condition is waived by Kent
and Covington before the anticipated June 13`h contract award date..
8. Oversight of Project Design and Construction
8.7 Tacoma personnel charged with the responsibility of overseeing the
construction of the Project in the field shall have the authority to
approve change orders in amounts equal to or less than $50,000, if
doing so is reasonable under the circumstances known to the individual
at the time the change order is approved. Kent and CWD agree that it
will not contest the reasonableness of any such decision to approve a
change order, but can direct Tacoma to contest the amount of the change
order so approved. Kent and CWD shall have the authority to approve
change orders in excess of$50,000.
8.8 If and to the extent a change order which is included in an invoice issued
pursuant to section 9 will result in a Project element exceeding the
amount budgeted therefore in the Construction Budget, Tacoma will
provide Kent and CWD with a recommendation regarding whether
payment of such change order is appropriate. Kent and CWD may elect
May 15,2001 Page 2 of 8
to pay or withhold payment of any such change order. If Kent and
CWD elect to contest a change order, Tacoma will in good faith contest
such change order, and Kent and CWD will pay any and all costs
incurred by Tacoma in contesting such change order.
9. Billings and Payment for Project Design, Permitting and Construction
Where reference is made concerning payments to consultants, the same
provisions will apply for payments to contractors.
11. Construction or Termination of the Second Supply Project
11.1 The second sentence shall read: "If and when that occurs, the payments
made by Kent and Covington for the costs of permitting, designing and
constructin the Project....."
11.2 If the payments made by Kent and CWD pursuant to this Agreement for
the permitting, design and construction of the Project exceed their share
of the costs of the construction of the Second Supply Project, then in
that event the Parties agree to include in the participation agreement for
the Second Supply Project a provision to compensate Kent and CWD
for the excess payments made under this Agreement.
New Section 26. Billings and Payments for Wholesale Water Deliveries
26.1 Tacoma shall bill Kent and CWD for wholesale water deliveries made
pursuant to Exhibit Q in accordance with the Rates and Regulations that
are in effect at the time such wholesale water deliveries are made to
Kent and CWD, and Kent and CWD shall pay the bills for wholesale
water deliveries in accordance with the Rates and Regulations.
26.2 The rights of Kent and CWD to dispute and conduct audits of bills for
wholesale water deliveries made pursuant to this Agreement shall be
governed by the Rates and Regulations.
26.3 Tacoma may from time to time revise the Rates and Regulations, and
upon approval of such revised Rates and Regulations, such revised Rates
and Regulations shall apply to wholesale water deliveries made pursuant
to this Agreement.
May 15,2001 Page 3 of 8
New Section 27. Operations and Maintenance of the Project
Tacoma shall be responsible for the operation and maintenance of all portions
of the Project that have been placed in commercial service. Tacoma will take
all actions necessary to operate the Project to deliver water to Kent and CWD,
and to maintain the Project in good operating condition, consistent with the
terms and conditions of this Agreement and Prudent Utility Practice.
New Section 28. Wholesale Water Deliveries
28.1 Prior to the completion of the Second Supply Project, Tacoma shall
deliver to Kent and CWD the amounts of wholesale water in accordance
with Exhibit Q.
28.2 When the Second Supply Project is completed and Kent and CWD are
thereby able to take delivery of Second Diversion Water Right water,
and Tacoma is able to and does provide such Second Diversion Water
Right water in amounts equaling no less than the amounts agreed to in
the Second Supply Project, Tacoma's obligation to supply wholesale
water to Kent and CWD pursuant to this Agreement shall terminate, and
Tacoma shall have no further obligation to deliver wholesale water to
Kent and CWD under this Agreement.
28.3 Water provided to Kent and CWD by Tacoma pursuant to this
agreement is authorized under existing water rights, exclusive of
Tacoma's Second Diversion Water Right.
New Section 29. Water Quality
Tacoma and Kent and CWD each have their own water treatment
requirements, that are or may be different from the treatment
requirements of the other Party. Kent and CWD agree to accept
wholesale water deliveries from Tacoma under this Agreement with the
understanding that such wholesale water shall only meet Tacoma's
treatment standards and requirements.
New Section 30. Resale of Wholesale Water
Upon the delivery of wholesale water to Kent and CWD at the Point(s)
of Diversion pursuant to this Agreement, such wholesale water shall
become the sole property of Kent and CWD, and accordingly Kent and
CWD may use such wholesale water for any purpose Kent and CWD
May 15,2001 Page 4 of 8
deem appropriate, including without limitation sale of such water at
retail or wholesale.
New Section 31 Capacity Use
31.1 In consideration of Kent and CWD payment of the costs of the Project
pursuant to this Agreement, Kent and CWD shall, during the term, own
a share of Project capacity sufficient to deliver to the Point(s) of
Diversion the amounts of wholesale water set forth in Exhibit Q and
thereafter water capacity in the Second Supply Project facilities pursuant
to an agreement to be executed between the parties.
31.2 Tacoma may utilize any portions of Project capacity not being used by
Kent and CWD pursuant to subsection 31.1.
New Section 32. Metering of Wholesale Water Deliveries
32.1 The meter for recording the deliveries of wholesale water to Kent and
CWD pursuant to section 28 shall be located at or near the Point of
Diversion (Covington Meter).
32.2 Tacoma shall be responsible for the calibration and testing of the
Covington Meter. No less frequently than once each year, the
Covington Meter shall be tested for accuracy, and the results of such
testing shall be made available to the Parties. Any and all maintenance
to the Covington Meter shall be the responsibility of Tacoma. The costs
of all meter tests, and of all meter maintenance, shall be borne by
Tacoma.
32.3 The flow control valve from which Kent and CWD receive water from
the Project shall be owned by and shall be under the control of
Covington, and shall not be a part of the Project. Covington shall be
responsible for the operation and control of the flow control valve
through which it receives its water deliveries. Each Party shall have the
right to enter the meter and valve vaults of the other Party for any reason
related to the Project.
32.4 Tacoma shall have access to the control signals from each meter station,
and access to each vault in which a meter that measures delivery of
water from the Project is located. Each Party shall have the right to
receive the control signal for the meter that measures deliveries of water
from the Project to it.
May 15,2001 Page 5 of 8
COVINGTON WATER DISTRICT
By
Judith L. Nelson
General Manager
CITY OF KENT
By DAA sy
Don Wickstrom J i m wl i e
gg
Public Works Director Mayor
CITY OF TACOMA
By
Kenneth J. Merry
Water Superintendent
May 15,2001 Page 6 of 8
Exhibit F: Preliminary Project Construction Schedule
Kent/Covington Section of the Second Supply Pipeline
April 11, 2001 Award pipe purchase contract at the Tacoma
Public Utility Board meeting for pipe to cross
sensitive areas
April 30, 2001 Advertise for pipeline construction bids
May 22, 2001 Receive pipeline construction bids
June 13, 2001 Award construction contract at the Tacoma
Public Utility Board meeting
September 30, 2001 Installation of the pipe crossing sensitive areas
completed
July 1, 2002 Pipeline placed in service
November 30, 2002 Work totally completed and ready for final
contractor payment
May 14,2001 Page 7 of 8
@
j \ 0 u \ Q
\ \ u \ Q `
{,
>�
%
w 00
00
2 / c c 2 c c c }
\ ƒ R ZCC $ ƒ $ m
§ r \ \ \ %
\/ e e m ƒ_ e m
z \
k ° \
� (
� \ z
■ e m ®
\
� k 0
� 7 l d 2
) § § ® o
4 ) a =
= g e
c ® ) \ &J
.± E O _ ± )
3 OD
( \ )
/ j \ 2 a \ in /