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HomeMy WebLinkAboutCAG1991-0575 - Original - KC Water District No. 111 - Joint Use Reservoir Purchase - 06/06/1991 AGREEMENT BETWEEN CITY OF KENT and KING COUNTY WATER DISTRICT NO. 111 WHEREAS, the CITY OF KENT ("City") , and KING COUNTY WATER DISTRICT NO. 111 ("District") , jointly own a 3 . 5 MG steel storage reservoir ("Joint Reservoir") , located at 124th Avenue and South 286th Street; and WHEREAS, the terms of ownership are outlined in a letter agreement dated March 14, 1983 ("Joint Reservoir Agreement") ; and WHEREAS, the existing and future water supply and storage needs of both parties can best be met by the District terminating its use of the Joint Reservoir and constructing a new storage reservoir that is hydraulically designed and operated to meet the independent needs of the District; NOW, THEREFORE, the City and District agree to terminate the Joint Reservoir Agreement and the City agrees to purchase the District's interest in the Joint Reservoir under the following terms and conditions: 1. Purchase of Reservoir Equity by the City: The City agrees to purchase the District' s equity in the Joint Reservoir, including real estate. The legal description of said property is appended hereto as Exhibit A. The District's equity value is 43% of the original total project cost of $773 , 643 .89 as increased in proportion to the increase in the Consumer Price Index (United States City Average for All Urban Consumers) all items, or the substituted Index, as prepared by the United States Department of Labor from the date of completion of the Joint Reservoir to the date of this agreement. The District' s equity value in 1991 dollars is $664,202.67 ( . 043 x $773 , 643 . 89 )4135.17/67=.4 664,202.67 ) . The City agrees to pay the sum of $ 664,202.67 to the District in full within thirty (30) days of the execution of this agreement. The District agrees to convey to the City all of its right, title and interest in and to the subject tank in consideration for payment of said sum. 2 . New District Reservoir/Overflow Elevation: The District may proceed with the planning, design and con- struction of at least a 1. 5 MG reservoir adjacent to the AGREEMENT BETWEEN CITY OF KENT AND KING COUNTY WATER DISTRICT ORIGINAL NO. 111 - 1 Joint Reservoir. The District may at its sole discretion build a larger reservoir. If the District elects to construct a new reservoir adjacent to the Joint Reservoir, the District will meet with King County and adjacent land owners to determine the amount of additional land, if any, required for the new reservoir. Upon determining the land required and the conditions for purchase, the District will meet with the City to determine the most appropriate way to acquire the necessary land. The City agrees to provide a good faith effort to support the District in its acquisition of whatever additional land may be required. The expense of securing additional land shall be the sole responsibility of the District. If the District elects to construct a new storage reservoir adjacent to the Joint Reservoir, the District agrees to design the new reservoir to enable operation at the City's 590 overflow elevation. The District's new reservoir may be no more than than 30 feet higher than the 590 foot overflow elevation of the Joint Reservoir. The City agrees to provide such easement as may be necessary to the District to allow the construction and perpetual operation of a new reservoir with related appurtenances on available city property adjacent to the Joint Reservoir so long as the District's use and operation of the new reservoir is compatible with the City' s existing use of the Joint Reservoir and that the District' s use does not disrupt or otherwise adversely affect the City's operation of the Joint Reservoir. 3 . Interim Use of Joint Reservoir Storage Capacity: Until the District's replacement reservoir is available for use, or two (2) years from the date of execution of this agreement, whichever first occurs, the City will give its best effort to operate the City' s system to maintain the water elevation in the Joint Reservoir at a near full condition to allow the District to use the reservoir during peak day conditions. The District will modify the intertie between the District and the City at 150th Place S.E. and 272nd Street to allow the manual operation of the intertie for flow from the District well supply into the City system to replenish any water withdrawn from the City system. It is the District's intent to utilize the Joint Reservoir only under conditions where the District is unable to meet its peak day needs without use of the Joint AGREEMENT BETWEEN CITY OF KENT AND KING COUNTY WATER DISTRICT NO. 111 - 2 Reservoir. The District will limit its Joint Reservoir withdrawal to 750, 000 gpd unless prior consent from the City is obtained. Although there is no limit on the number of days during which the District can use the Joint Reservoir, it is anticipated that the number of days will not exceed thirty (30) per year. 4. Compatibility of Water Quality: The quality of water from the District's wells was evaluated for com- patibility with water from the City's spring supply at the point of mixing. Based upon an analysis of the data provided by the two utilities, and the ratio of District water to City water in the transmission line during peak period usage, there does not appear to be a problem of water quality compatibility or residual water quality problems for the City. Some iron or manganese deposits are possible, even though it is not anticipated that such a problem would be significant. 5. District Facilities for Replacement of City Water: The District shall modify its metering and valving facilities to allow for manual operation of the intertie facilities. Through joint monitoring of the metered withdrawal and replacement water, the District will assume the responsibility to replace City water used within twenty-four (24) hours. In the event the District supply system is unable to replace the water within a twenty-four (24) hour period, the quantity of water utilized by the District that is not replaced will be purchased from the City at the established District commodity cost. The 1990 District cost is $1.20/100 cubic feet. If the District is unable to replace the water withdrawn from the City in forty-eight (48) hours, the District will purchase the excess water at a rate equivalent to the City's in-City commercial commodity rate. The 1990 City commercial commodity rate is $1. 64/100 cubic feet. If the District is unable to replace the water withdrawn from the City in seventy-two (72) hours, the District will purchase the excess water at a rate equivalent to the City' s outside-City commercial commodity rate. The 1990 outside-City commercial rate is $2 . 00/100 cubic feet. The method of accounting for the quantity of water to be replaced or purchased by the District will utilize the meter reading and accumulative assessment of AGREEMENT BETWEEN CITY OF KENT AND KING COUNTY WATER DISTRICT NO. 111 - 3 costs outlined above. Exhibit B provides a sample ledger to account for the responsibilities of the District to the City for the replacement or purchase of water. Actual payment by the District will be required prior to the end of the calendar year. 6. Execution of Additional Documents: Both parties agree, upon request, to execute such other and further documents as may be necessary or desirable to effectuate the intent of this agreement. Specifically, hout limiting the generality of the foregoing, the District agrees to execute a statutory warranty deed to the City conveying the District' s interest in the Joint Reservoir. 7 . Water Supply Shortage: In the event the City has a water shortage problem due to drought conditions or other water supply needs, the District will follow the same conservation and/or drought response plan used by the City and will terminate use of the City's supply system if the City's supply is unable to meet City demands. 8. Shared Maintenance Expenses: The District agrees to share equally with the City all costs of maintaining jointly used facilities utilized by the District for access, construction and maintenance of the District' s proposed reservoir, including but not limited to the cost of maintaining the access road to the site. 9 . Cit ' s Review of District' s Plans: The District agrees to provide the City with copies of all construction documents for the proposed reservoir for the City' s review and approval. The City desires to assure itself that the contemplated new reservoir will not adversely affect the structural integrity of the Joint Reservoir. 10. Effective Date: This Agreement will become effective on signing of both parties. C TY OF KENT KING COUNTY WATER DISTRICT O. 111 1 �,� ti �r t By: SON Secretary CHARLES WI , AGREEMENT BETWEEN CITY OF KENT AND KING COUNTY WATER DISTRICT NO. 111 - 4 STATE OF WASHINGTON ) ) ss. COUNTY OF K I N G ) On this 14. day of 4 �?JL . , 1991, personally appeared before me, 0,' vV,6 j r; !��i-L-rt�,� to me known to be the individual that executed the fore- going instrument on behalf of the City of Kent, and acknowledged the said instrument to be its free and voluntary act and deed, for the uses and purposes therein mentioned. WITNESS my hand and official seal hereto affixed the day and year in this certificate above written. NOTARY PUBLIC in and for the State of Washington, residing at My Commission Expires. STATE OF WASHINGTON ) ) ss. COUNTY OF K I N G ) On this o7J�` day of Ap , 1991, personally appeared before me, harles Wilson, to me known to be the individual that executed the foregoing instrument on behalf of King County Water District No. 111, and acknowledged the said instrument to be its free and voluntary act and deed, for the uses and purposes therein mentioned. WITNESS my hand and official seal hereto affixed the day and year in this certificate above written. 1 1 6z�� z T Y/ BLIC in and for the t e Washington, residing at My Commission Expires: AGREEMENT BETWEEN CITY OF KENT AND KING COUNTY WATER DISTRICT NO. 111 - 5