HomeMy WebLinkAboutCAG2000-0555 - Original - South King County Regional Water Association - Joint Operating Agreement - 12/19/2000 SOUTH KING COUNTY REGIONAL WATER ASSOCIATION
JOINT OPERATING AGREEMENT
December 19, 2000
WHEREAS, an adequate and safe water supply for South King County Regional Water
Association(SKCRWA) and its members is vital to both existing citizens and in implementing the
long-term comprehensive plans of SKCRWA members;and
WHEREAS, the State and SKCRWA prepared a Coordinated Water System Plan
(CWSP) for South King County;and
WHEREAS, projects that provide for the coordinated and cooperative use and operation
of supply, transmission, storage, treatment, and pumping facilities to minimize cost, provide for
improved water quality, protect the environment, provide for emergency needs, and maximize the
best use of the resource is in the best interest of the citizens of the region;
WHEREAS, the current and near-term water needs of the local governments and
SKCRWA require steps to establish a cooperative subregional water supply system; and
WHEREAS, the SKCRWA is committed to cooperate toward regional solutions for both
emergency and long range water supply needs: and
WHEREAS, the SKCRWA signatory members developed a Joint Operating Agreement in
1995 and revised the Joint Operating Agreement in 1996 and now want to further revise the
Agreement.
NOW THEREFORE, the SKCRWA signatory members of this Joint Operating
Agreement (JOA), agree as follows:
1. GENERAL
A. The Signatory Members acknowledge the requirement to incorporate land use
planning as defined by the Growth Management Act with water supply planning;
and
B. The Signatory Members recognize the benefits of developing a subregional water
supply system that will allow the optimum use of surface and groundwater to
better manage and protect the area's water resources; and
C. The Signatory Members will hold an Annual Meeting about September 30th to
review the status of this JOA and any Amendments as well as other problems of
mutual concern. The specific date, time, and location of the meeting will be set by
mutual agreement.
December 19,2000 1
D. Merger shall mean when two signatory members merge or when a signatory
member and a non-signatory member merge.
E. Termination — This agreement shall cease to be binding on or to any signatory
member that is not in good standing or whenever a merger occurs.
2. INTENT
A. The general intent is to create a method for the Signatory Members to
cooperatively use certain existing facilities and construct new facilities needed to
develop a subregional water system The Signatory Members may mutually
agree by Interlocal Agreement to produce additional water and distribute it within
the Subregional Service Area, with or without change to their retail service area.
B. The JOA provides a framework for joint development of specific projects that may
include two or more Participants. Each facility, project, and/or intertie shall be
developed under a separate Interlocal Agreement (IA) consistent with this JOA
subject to approval by appropriate affected city council and/or water district
boards. The specific intent of this JOA is to make provisions for a standardized
form to create or expand cooperative agreements to meet the public water supply
needs for both emergency and long-term use, and to establish a basis for agreement
between Participants for financing, ownership, construction, and operation of
mutually beneficial projects required to achieve cooperative objectives. These
projects may include common facilities with other Agencies outside the SKCRWA
planning area
Interlocal Agreements (IA) negotiated under the provisions of this JOA shall speak
for them selves and should reference the version of the JOA, which is in place at
the time that the agreement is reached. It is the intent of the Signatory Members
that any Interlocal Agreements negotiated under the JOA would survive the
withdrawal of a Signatory Member from the JOA or from the South King County
Regional Water Association.
It is further the specific intent of this JOA to preserve Signatory Members' existing
water rights and protect the established or planned interest and needs of each
Signatory Member with respect to sources of water.
Suggested content for an Interlocal Agreement is shown in Exhibit A.
C. It is the desire of the Signatory Members that this JOA be incorporated into the
South King County CWSP at the next update.
D. The term "Participant" as used in this JOA shall mean all the signatories of an IA
consistent with and implemented subsequent to this JOA.
December 19,2000 2
E. The term"Signatory Members" as used in this JOA shall mean a member, in good
standing, of the South King County Regional Water Association who has signed
this JOA. Good standing includes but is not limited to being current on all dues to
the SKCRWA.
3. SUBREGIONAL SERVICE AREA AND FACILITIES
A. "Subregional Service Area " shall mean the Signatory Members' Designated Water
Service Areas identified in the CWSP or as approved by amendments to the CWSP
or as identified in a Signatory Member's approved Comprehensive Water Plan.
B. "Subregional Facilities"shall mean:
(a) that portion of the Participants' sources, interties,transmission, and storage
systems required to supply water to the service areas of the Participants or
new facilities as defined by a separate IA pursuant to this JOA.
(b) those designated capacities within a Participant system as specifically
defined in an appropriate IA.
C. "Facility Ownership". Ownership of the physical facilities that exist on the date of
this JOA shall remain with the individual Signatory Members. Unless otherwise
agreed to within a specific IA, ownership and operational responsibilities of new
facilities shall be based generally on location in designated service areas, with
capacity rights defined by appropriate IA.
4. WATER SUPPLY - CAPACITY RIGHTS
A. CanacitL is - Participants may purchase capacity by IA. Any changes in these
capacity rights shall be recognized by an IA, approved by the appropriate affected
city councils and/or water district boards.
B. Additional JOA Participants - Other agencies may purchase capacity rights in
subregional facilities subject to the provisions of paragraph 4.C. Other agencies
who become Signatory Members of the SKCRWA and become Participants in
future projects undertaken under this JOA and future IAs will be assessed past
costs associated with development of this JOA as specified in Exhibit B.
December 19,2000 3
C. Wholesaling Water -
a) A Signatory Member may wholesale water through lease or otherwise,
delivered through subregional facilities to areas outside of the Signatory
Member's Service Area, so long as the other Signatory Members' capacity
rights are not negatively impacted. Signatory Members of the SKCRWA agree
that, where feasible and mutually beneficial, they will coordinate planning and
development of water resources.
b) Signatory Members fiuther agree that prior to entering into any agreement to
deliver long term water supply or construct joint facilities with a non-Signatory
Member agency, they will first make a good faith effort to offer such supplies
and/or capacities to Signatory Members (provide the right of first refusal).
Such offers shall be made on a cost of service basis as established by separate
IA. Signatory Members shall have 60 days to respond.
c) Signatory Members agree that when entering into any agreement to deliver
long term water supply or construct joint facilities with a non-Signatory
Member agency in accordance with this JOA, they will include and collect for
remittance to the SKCRWA a fee for reimbursement of the costs for
development of the JOA as specified in Exhibit B.
d) Regular meetings of the SKCRWA shall be the forum for making Signatory
Members aware of discussions regarding water sales and joint projects,
however all offers of participation or requests for participation shall be in
writing with copies to other Signatory Members.
D. Conservation - All Participants will develop and implement a conservation plan
that is consistent with State guidelines. Additional or supplemental conservation
requirements beyond basic programs may be included in a specific Interlocal
Agreement.
E. Curtailment - In general, curtailment for delivery of "firm water" shall be on a
uniform percentage basis for both wholesale and retail customers and curtailment
for delivery of "interruptible water" shall be on a "last in first out" basis as
determined by the date of formal agreement. Specific curtailment requirements
and provisions shall be included in Interlocal Agreements implemented under this
JOA.
F. Ouality - An objective of the Signatory Members is to maintain the quality of the
water in the subregional facilities at or above the quality required by the State
drinking water standards. The purchasing Participant will be responsible for
ensuring water quality blending analyses and other water quality issues are
resolved to their own satisfaction. The Signatory Members may meet periodically
to ensure that water quality and operational issues are addressed, and that needed
December 19,2000 4
information is exchanged in a timely fashion. The written results of these meetings
will be circulated in a timely manner to all members and participants and reviewed
at the annual meeting.
G. Additional Facilities - Projected needs will be identified by the Participants based
on the Participant's designated service areas. As five or more years may be needed
to bring major new source capacity capabilities on line, five-year and ten-year
forecasts are required, and must be updated whenever a Participant becomes aware
of any significant change in their forecast demand. These will be discussed jointly
as they arise, and reviewed at the annual meeting.
H. Financin¢ - Each Project IA will include pertinent details of financing for that
project. Financial participation in existing and additional facilities will be based on
each Participant's projected need for each facility, as designated capacity rights.
1. Cost of Service Charge - The Signatory Members and Participants will establish
wholesale water sales charges for both emergency and long-term supply that
include: (1) capital cost, (2) fixed operating cost, and (3) a variable operating cost
based on quantity of water delivered based on actual costs of providing the service.
Fixed and variable operating and maintenance costs payments will be made
monthly per meter and use rates. Projected annual rate adjustments and
documentation shall be provided at the annual meeting. Any rate increase will be
effective beginning January 1, of the following year.
(1) The Rates and Charges for the capital, operation, and maintenance of the
system shall be based on the following:
(a) Capital Cost - Those construction related costs incurred for
Capacity Rights. Capital Costs for facilities contracted solely for a
specific project (described in an IA) are allocated based on
designated capacity to be purchased.
Capital costs shall include the debt service for each Participant.
Such debt service shall be defined as the actual debt service on debt
issued for the Participant's proportionate share of capacity rights,
or if no debt is issued for the Participant's costs by the financing
Participant, the amortized value at the interest rate of the most
recent revenue bond issued by the financing Participant over 20
years. However, should all capital costs be paid in fiill by any
Participant purchasing capacity rights prior to the time of the
financing Participant incurring the costs, no interest charges shall be
assigned to the Participant purchasing capacity rights.
oowmnn 19,2000 5
Capital Costs associated with a supplying Participant's construction
of their internal water system facilities may be included in the fixed
and variable operating costs as appropriate, using cost of service
principles, in the same manner as those costs are included in the
supplying Participant's customer rate base.
(b) Fixed Operating Cost - The cost of labor, supervision, supplies,
utilities, services, taxes, insurance, and all other costs required to
operate and maintain the system other than those items included
under Variable Operating Cost. The operating cost will include an
allocation for renewal and replacement.
(c) Variable Operating Cost - Those costs directly proportionate to the
volume of water produced, including chemicals, electric power, and
other costs required to meet customer and system needs not
included in(a) and(b) above.
(2) Accounting
Subregional facilities accounting shall be documented in accordance with
generally accepted accounting practices acceptable to the Participants.
5. ADMINISTRATIVE,LEGAL AND 0TH9R PROVISIONS
A. Each Signatory Member shall designate in writing their representative responsible
for coordination and implementation of the JOA and the subsequent IAs. The
designated individuals will be the primary contact for all project approvals and
communication and shall prepare and publish a schedule and plan to facilitate the
planning, design and day-by-day operation of facilities associated with the
subsequent Lks.
B. Signatory Members in good standing may propose Amendments to this JOA at
any time. Signatory Members in good standing shall vote on proposed
Amendments at the Annual Meeting. A quorum of Signatory Members present
shall approve any Amendments to this JOA prior to their submittal to Signatory
Members city councils and/or utility district boards for approval. A Special
Meeting of the Signatory Members may be called for the purpose of amending this
JOA by two thirds of the Signatory Members in good standing.
C. A Signatory Member may withdraw from this JOA by providing 120 days notice to
other Signatory Members. Notice shall be provided to each Signatory Member in
writing and shall include the reason for withdrawal.
oo=nber 19,2000 6
D. Any Signatory Member that withdraws from the SKCRWA also withdraws from
this JOA.
E. This JOA shall remain in full force unless terminated in writing by mutual
agreement of all Signatory Members in good standing. Termination of the JOA or
withdrawal by any signatory member shall not affect any Interlocal Agreements
negotiated under a JOA-
F. A Signatory Member who merges with any Agency which is not a Signatory
Member of this JOA must withdraw from the JOA. The merged agency would
then be allowed to reapply for Signatory Membership in the JOA as the merged
Agency.
IN WITNESS WHEREOF, the SKCRWA members hereto have caused this agreement to be
executed by their proper Officers on the day of 199_
By:
Title:
City of Algona
Date:
Attest:
By:
Approved As To Form:
By:
By:
Title:
City of Auburn
Date:
Attest:
By:
December 19,2000 7
Approved As To Form:
By:
By:
Title:
City of Black Diamond
Date:
Attest:
By:
Approved As To Form
By:
By: C _
Title: 0, -�-�
City ofAtent
Date:
Attest:
By:
Approved As To Form:
By:
A-S4. , qM., T G ITV A t+enNc<
By:
Title:
Lakehaven Utility District
Date:
Attest:
By:
December 19,2000 8
Approved As To Form:
By:
By:
Title:
Soos Creek Water and Sewer District
Date:
Attest:
By:
Approved As To Form:
By:
By:
Title:
King County Water District#111
Date:
Attest:
By:
Approved As To Form:
By:
By:
Title:
City of Pacific
Date:
Attest:
By:
Approved As To Form:
Dommber 19,2000 9
By:
By:
Title:
Date:
Attest:
By:
Approved As To Form:
By:
By:
Title:
Date:
Attest:
By:
Approved As To Form:
By:
December 19,2000 10
South King County
Regional Water Association
Joint Operating Agreement
Exhibit A
Check List for Interlocal Agreements
1. Project Title
2. General
• List of Utilities to be parties to the Interlocal Agreement(IA)and approval of the appropriate
city councils and/or water district boards.
• Consistency with the Joint Operating Agreement(JOA).
• Description of need for the project.
• Listing of potential wholesale customers for the water in accordance with Section 4.0 of the
JOA.
• Recognition of assessment of costs associated with development of JOA in accordance with
Section 4.B of the JOA.
• Recognition of right of first refusal to excess capacity of Signatory Members of the South
King County Regional Water Association(SKCRWA)in accordance with Section 4.0 of the
JOA.
• Recognition that rapacity and water rights are available to meet the needs of the IA.
3. Description of Project
• Include a drawing(or description)which identifies all the facilities to be considered within
the IA. Included within the description should be all jointly or solely owned facilities that
are to be operated or paid for by a party to the IA.
• Description of long tens ownership'of the facility.
• Identification of the party responsible for operation and/or maintenance of the facility.
• Identification of the parry responsible for payment for the design and construction of the
facility.
4. Project Costs,Financing,Capacity Rights
• Description of all project costs and the allocation to each party.
• Definition of capacity rights for all facilities.
• Definition of cost sharing for long-term maintenance for each facility.
• Definition of method of reimbursement for moneys expended(if required).
• Description of any applicable latecomer fees or hook-up charges.
• Description of requirements for record keeping and monitoring of costs.
5. Project Design and Construction Management
• Definition of overall project management responsibilities.
• Definition of design and construction management responsibilities for individual facilities.
• Description of basic periodic meeting schedule for review of project progress.
December 19,2000 1 JOA Exhibit A—2000
6. Conditions of Service
• Limitations to source sharing or delivery of water(if any).
• Design criteria for the project facilities.
• Minimum and maximum flow rates and pressures.
• Items specifically excluded from the project.
7. Term of Duration of the Agreement
• Discussion of the length of time the agreement is in effect as well as the method to terminate
the agreement and succeeding agencies' obligations.
8. Amendments
• Method by which the agreement could be amended.
9. Hold Harmless,Liability Language,etc.
December 19,2000 2 JOA Exhibit A—2000
South King County
Regional Water Association
Joint Operating Agreement
Exhibit 8
Computation of Charges
Initial Computation based on 8 shares.
$ 16,652 Cost to develop JOA (from Covington and WD 111).
8
$ 2,081 Initial "charge"for a share.
Cost to the three participants of IA2.
Covington and Auburn, three share $ 6,244
WD 111, two shares= $ 4,163
Final Computation based on 12 shares.
$ 16,652
12
$ 1,388
Ultimate use charge
Algona and Black Diamond, one share = $ 1,388
WD 111, two shares= $ 2,775
Auburn, Kent, Covington WD, Lakehven
UD, Or Soos Creek W&SD, three.shares= $ 4,163
Reimbersement for Development and initial use (to Covington, WD 111,and Auburn)
$ 16,652 Cost for development.
Covington WD 111 Auburn
$ 8,326 $ 8,326 $ - development cost
$ 6,244 $ 4,163 $ 6,244 use charge IA2
$ 2,081 $ 4,163 $ (6,244)
$ 2,081 $ 4,163 $ - recovery charge IA2 (Auburn)
$ 6,244 $ 4,163 $ 6,244
$ 4,163 $ 2,775 $ 4,163 ultimate use charge
$ 2,081 $ 1,388 $ 2,081 remaining reimb.
$ 463 $ 463 $ 463 recovery charge IA3(Algona)
$ 1,619 $ 925 $ 1,619 remaining reimb.
JOA Exhibit B Fees-2000
December 19,2000