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HomeMy WebLinkAboutCAG2023-345 - Original - Lake Meridian Water District - Water Service Area Boundry Adjustment Agreement - 06/15/2023 FOR CITY OF KENT OFFICIAL USE ONLY Sup/Mgr: Agreement Routing Form DirAsst: • For Approvals,Signatures and Records Management Dir/Dep: KENT This form combines&replaces the Request for Mayor's Signature and Contract Cover (optional) WASHINGTON Sheet forms. (Print on pink or cherry colored paper) Originator: Department: Karin Bayes for Dave Brock Public Works Date Sent: Date Required: c 06/05/2023 6/7/2023 QAuthorized to Sign: Date of Council Approval: Q �✓ Mayor or Designee 6/6/2023 Budget Account Number: Grant? Yes NoF-] Budget? Yes Type: N/A Vendor Name: Category: i Lake Meridian Water District Contract Vendor Number: Sub-Category: Original 0 W Project Name: Lake Meridian Water District Service Area Boundary Adjustment Agreement OProject Details: With this service area boundary adjustment, the KEHOC property and the entirety of Clark Lake Park will be in the City's water service area. In exchange for *, adjusting the boundaries, the City has agreed to extend the District's franchise. C (11.111 Basis for Selection of Contractor: Agreement Amount: �Q N/A E *Memo to Mayor must be attached i Start Date: Termination Date: N/A Im a Local Business? Yes F]No*If meets requirements per KCC 3.70.100,please complete"Vendor Purchase-Local Exceptions"form on Cityspace. Business License Verification: ❑Yes In-Process F1 Exempt(KCC 5.01.045) Authorized Signer Verified Notice required prior to disclosure? Contract Number: Yes❑No CAG2023-345 Comments: 6/13/23 - rtn for full execution. M.M. IM � C I a, a cc Date Received:City Attorney: 6/7/23 Date Routed:Mayor's Office 6/12/23 ty Clerk's Office 6/13/23 adccW22373_7_20 Visit Documents.KentWA.gov to obtain copies of all agreements rev.20221201 1400 • 11� KEN T WASHINGTON DATE: June 6, 2023 TO: Kent City Council SUBJECT: Lake Meridian Water District Service Area Boundary Adjustment Agreement - Authorize MOTION: Move to authorize the Mayor to sign the Water Service Area Boundary Adjustment Agreement between the City and Lake Meridian Water District, subject to final terms and conditions acceptable to the City Attorney and Public Works Director. SUMMARY: Over the past year, the City and Lake Meridian Water District (District) have been negotiating a Franchise Amendment, Service Area Boundary Adjustment, and a Property Use and Easement Agreement. These three agreements have been negotiated concurrently and are viewed as bundled together' by both agencies. The City's and the District's water service area boundaries were established and approved pursuant to RCW 70,116, the Public Water System Coordination Act of 1977. Since that time, the City and District have worked collaboratively to make adjustments to our mutual boundary accounting for lot line changes and existing infrastructure. With this service area boundary adjustment, the Kent East Hill Operations Center parcels and the entirety of Clark Lake Park (including the parcels recently purchased by the City), will become part of the City's exclusive water service area. In exchange for adjusting the boundaries and allowing the City to serve these properties, the City has agreed to extend the District's franchise in the Franchise Amendment that is also before Council. BUDGET IMPACT: There is no budget impact to the water utility. SUPPORTS STRATEGIC PLAN GOAL: Innovative Government - Delivering outstanding customer service, developing leaders, and fostering innovation. Evolving Infrastructure - Connecting people and places through strategic investments in physical and technological infrastructure. Thriving Citv- Creating safe neighborhoods, healthy people, vibrant commercial districts, and inviting parks and recreation. Sustainable Services - Providing quality services through responsible financial management, economic growth, and partnerships. ATTACHMENTS: 1. Lake Meridian Water District Service Area Boundary Adjustment Agreement (PDF) 05/15/23 Public Works Committee MOTION PASSES RESULT: MOTION PASSES [UNANIMOUS]Next: 6/6/2023 7:00 PM MOVER: Marli Larimer, Councilmember SECONDER: Satwinder Kaur, Councilmember AYES: Brenda Fincher, Satwinder Kaur, Marli Larimer WATER SERVICE AREA BOUNDARY ADJUSTMENT AGREEMENT This Water Service Area Boundary Adjustment Agreement ("Agreement") is between the City of Kent, a Washington municipal corporation ("City"), and Lake Meridian Water District, a Washington special purpose municipal corporation ("District"). Recitals A. The City and the District own and operate water systems and provide retail water utility services to customers located within their respective corporate and approved utility service area boundaries. Portions of the District's and the City's water service area boundaries are adjacent. B. The City's and the District's exclusive water service area boundaries have been established and approved pursuant to Chapter 70A.100 RCW, the Public Water System Coordination Act of 1977 ("Act"). In accordance with the South King County Coordinated Water System Plan prepared pursuant to the Act, the City and the District have been designated the exclusive water service purveyors within their respective authorized water service areas. The City's and District's retail water service area boundaries have also been established and approved pursuant to water system plans approved by the Washington State Department of Health (DOH), King County, and other public agencies with jurisdiction. The water system plans designate the City and the District as the exclusive water service purveyors within their respective authorized retail water service areas. C. The City acquired three parcels within the District's service area in 1999 for the purpose of building a maintenance and operations center ("KEHOC") for its Public Works and Parks Departments. Since the time of acquisition, the City has continued to make investments to support KEHOC. These improvements included the construction of a 4 Million Gallon Water Reservoir in 2011 and an accompanying 20- inch diameter distribution main. The City has an interest in incorporating KEHOC into its service area, so that it would lie entirely within the City's exclusive retail water service area, so long as the City retains ownership of these parcels. D. Clark Lake Park is a passive recreational facility owned by the City. Approximately one-third of the park acreage currently lies within the City's exclusive water service area, and the other two-thirds of the park acreage lie within the District's exclusive water service area. The City owns an existing 20-inch diameter water main within SE 248th Street, which runs along the southern border of Clark Lake Park. Because of this existing infrastructure, it is in the City's interest to serve the entirety of Clark Lake Park. Water Service Area Boundary Adjustment Agreement (City of Kent and Lake Meridian Water District) Page 1 F. In 2017, the District and the City entered into a franchise agreement ("Franchise") authorizing the use of the City's rights-of-way for the installation and maintenance of the District's facilities. As part of the Franchise, the District agreed to pay to the City a franchise fee in the amount of 6% of the District's revenue. The Franchise has a term of 10 years, with an additional automatic extension of 5 years. In exchange for allowing the City to serve KEHOC and Clark Lake Park and altering the City's and the District's water service areas accordingly, the term of the Franchise term will be extended as set forth in this Agreement and a separate amendment to the Franchise. The Parties therefore agree as follows. Agreement 1. Water Service Area Boundary Adjustment. The Parties hereby agree to adjust the water service area boundary between the City and the District so that all the property as set forth in this Section 1 and legally described in Exhibit A will be added to and lie entirely within the City's exclusive retail water service area as of the Effective Date of this Agreement. A depiction showing the adjusted and modified exclusive retail water service area boundaries between the Parties is attached for illustrative purposes as part of Exhibit A. 1.1 KEHOC Site. This Agreement adds the following three City-owned parcels planned to be used to build the City's Kent East Hill Operations Center ("KEHOC") to the City's exclusive retail water service area: 2122059132; 2122059140; and 2122059147. If, at any time after the Effective Date of this Agreement, the City conveys its ownership interest in the KEHOC site to another party, the City shall pay the District one-half of the water system development charges ("SDC") collected pursuant to Kent City Code 7.02.090(C). The City shall tender payment of the SDC to the District within sixty (60) calendar days from the date the City receives payment. 1.2 Clark Lake Park. This Agreement adds the remaining portion of the assemblage of parcels owned by the City comprising Clark Lake Park to the City's exclusive retail water service area ("New Clark Lake Service Area"). Previously, roughly one-third of the Park's acreage was included within the City's exclusive water service area. If, at any time after the Effective Date of this Agreement, the City constructs new improvements on the New Clark Lake Service Area or conveys its ownership interest in the New Clark Lake Service Area to another party, then the City shall pay the District one-half of the SDC collected. The City shall tender payment of the SDC to the District within sixty (60) calendar days from the date the City receives payment. Water Service Area Boundary Adjustment Agreement (City of Kent and Lake Meridian Water District) Page 2 2. Consideration. In addition to other consideration set forth in this Agreement, the City agrees to amend the Franchise the parties entered into in 2017 to extend its term. The parties agree that the franchise term section will be amended to extend the term to 20 years from the effective date of the franchise amendment, with an automatic extension of one additional five-year period. The amendment of the Franchise will take place in a separate agreement and must be separately approved by the Kent City Council and accepted by the District. 3. Planning Documents, Other Approvals, and Governmental Notifications. The Parties agree to amend their respective water system plans and any other required planning or permitting documents during the next update of said documents to include the adjusted exclusive water service area boundary between the Parties as provided for in this Agreement. Both Parties shall provide any required government notifications, including without limitation, notifications to DOH and the King County Boundary Review Board. However, failure to make those amendments, failure to obtain any required plan approvals involving the service area adjustment, or failure to provide required notifications will not affect the contractual obligations between the Parties as provided for in this Agreement. 4. Miscellaneous. 4.1 Duration. This Agreement will remain in effect as a permanent water service area boundary change between the Parties. 4.2 Indemnification. The City will defend, indemnify, and hold the District, its officers, officials, employees, agents, and volunteers harmless from any and all claims, injuries, damages, losses, or suits, including all legal costs and attorney fees, arising out of or in connection with the City's negligent performance of this Agreement. The District will defend, indemnify, and hold the City, its officers, officials, employees, agents, and volunteers harmless from any and all claims, injuries, damages, losses, or suits, including all legal costs and attorney fees, arising out of or in connection with the District's negligent performance of this Agreement. 4.3 Non-Waiver of Breach. Either Party's failure to insist upon strict performance of any of the covenants and agreements contained in this Agreement or to exercise any option conferred by this Agreement in one or more instances will not be construed to be a waiver or relinquishment of those covenants, agreements, or options. 4.4 Governing Law, Resolution of Disputes and Legal Costs. Washington law will govern this Agreement. If the Parties are unable to settle any dispute, difference or claim arising from this Agreement, the exclusive means of Water Service Area Boundary Adjustment Agreement (City of Kent and Lake Meridian Water District) Page 3 resolving that dispute, difference or claim, will only be by filing suit exclusively under the venue, rules and jurisdiction of the King County Superior Court, King County, Washington, unless the Parties agree in writing to an alternative dispute resolution process. In any claim or lawsuit for damages arising from the Parties' performance of this Agreement, each Party will pay all its legal costs and attorney fees incurred in defending or bringing that claim or lawsuit, including all appeals, in addition to any other recovery or award provided by law; provided, however, nothing in this paragraph will be construed to limit either Party's right to indemnification under subsection 4.2. 4.5 Assignment or Modification. Assignment, waiver, alteration, or modification of all or part of this Agreement will not be binding on the Parties unless in writing and signed by a duly authorized representative of each Party. 4.6 Entire Agreement. The written provisions and terms of this Agreement supersede all prior verbal statements of any officers or other representatives, and those statements will not be construed as part of this Agreement. 4.7 Counterparts. This Agreement may be executed in one or more counterparts, each of which shall constitute an original, and all of which together will constitute one agreement. 4.8 Authority. The Parties represent and warrant this Agreement has been duly approved and authorized by their respective legislative authorities, that each Party has full power and authority to enter into this Agreement and to carry out the actions required of them in this Agreement, and all persons signing this Agreement in a representative capacity represent and warrant they have the full power and authority to bind .their respective municipal entities. 5. Effective Date. This Agreement will take effect on the last date entered below ("Effective Date"). The City of Kent Lake Meridian Water District c_ "L By /QXIL� . By - Cam• Its Mayor Its Date: 06/12/2023 Date: OG I ao�3 Water Service Area Boundary Adjustment Agreement (City of Kent and Lake Meridian Water District) Page 4 EXHIBIT A THAT PORTION OF THE LAKE MERIDIAN WATER DISTRICT FRANCHISE LYING WITHIN SECTION 21, TOWNSHIP 22 NORTH, RANGE 5 EAST, WILLAMETTE MERIDIAN, IN KING COUNTY, WASHINGTON, AS DESCRIBED IN CITY OF KENT ORDINANCE 3447 UNDER KING COUNTY RECORDING NUMBER 19991012000148 SHALL BE RELOCATED TO INCLUDE THE LANDS LYING EASTERLY, NORTHERLY AND SOUTHERLY OF THE FOLLOWING DESCRIBED LINE; BEGINNING AT THE INTERSECTION OF THE WEST MARGIN OF 124TH AVENUE SOUTHEAST (60 FEET IN WIDTH) AND THE WESTERLY EXTENTION OF THE NORTH LINE OF THE NORTH HALF OF THE SOUTH HALF OF THE SOUTHWEST QUARTER OF THE NORTHWEST QUARTER OF THE SOUTHEAST QUARTER OF SAID SECTION 21; THENCE EASTERLY, ALONG SAID NORTH LINE TO THE EAST LINE OF SAID SOUTHWEST QUARTER; THENCE SOUTHERLY, ALONG SAID EAST LINE TO THE SOUTH LINE OF SAID NORTHWEST QUARTER; THENCE EASTERLY, ALONG SAID SOUTH LINE TO THE WEST LINE OF THE EAST 384.205 FEET OF SAID NORTHWEST QUARTER; THENCE NORTHERLY, ALONG SAID WEST LINE AND THE EXTENSION THEREOF, TO THE NORTH MARGIN OF SOUTH 248TH STREET (60 FEET IN WIDTH); THENCE EASTERLY, ALONG SAID NORTH MARGIN TO THE EAST LINE OF THE WEST HALF OF THE NORTHEAST QUARTER OF SAID SECTION 21, THENCE NORTHERLY, ALONG SAID EAST LINE TO THE SOUTH MARGIN OF SOUTH 240TH STREET; THENCE WESTERLY, ALONG SAID SOUTH MARGIN, THE FOLLOWING COURSES: N89003'30"W 430.59 FEET, THENCE NO°57'08"E 20.00 FEET, THENCE N89003'30"W 495.67 FEET; THENCE S0158'35"W 20.00 FEET; THENCE N891103'30"W 396.00 FEET TO THE WEST LINE OF SAID NORTHEAST QUARTER; THENCE CONTINUING ALONG SAID SOUTH MARGIN, N88°58'15"W 495.00 FEET TO THE WEST LINE OF THE EAST 495.00 FEET OF THE NORTHWEST QUARTER OF SAID SECTION 21, SAID POINT BEING ON THE WEST LINE OF THE EXISTING LAKE MERIDIAN WATER DISTRICT FRANCHISE LIMIT AND THE TERMINUS OF THE HEREIN DESCRIBED LINE. ioW 3/14/2023 IMPORTANT: THIS IS NOT A SURVEY.IT IS TERMINUS SOUTH MARGIN FURNISHED AS A OF 240TH CONVENIENCE TO LOCATE THE LAND INDICATED HEREON SE 240TH ST WITH REFERENCE TO STREETS AND OTHER LAND. NO LIABILITY IS ASSUMED BY REASON OF RELIANCE HEREON. } I Z Q pQ Olm I O p UIU W W U W co W W co of U) W11T- � //12f w < NEW CLARK LAKE Z Q SEG3MC�C AREA � z I I- a Y �-Q / W 0 IOI2 c- W I W I O 2i UIJ Y UI o�o� W I ZW Z I I �l EAST LINE OF THE W 1/2 OF NE1/4 SE 248TH ST— NORTH MARGIN I OF 248T WEST MARGIN OF 124TH IK/EHOC I I II N WEST LINE OF THE EAST 384.205 w OF THE NW 1/4 OF THE SE 1/4 LU POINT OF BEGINNING Q L Line,N1/2,S1/2, = SW,NW,SE v SOUTH LINE I I r Project#WATER DISTRICT BOUNDARIES OF THE NW1/4 OF SE1/4 LAKE MERIDIAN PORTION OF WATER DISTRICT THE NE 1/4 AND THE SE 1/4 BOUNDARY ADJUSTMENT OF SEC 21,TOWNSHIP 22 N, KENT DRAWN BY: JF RANGE 5 E,W.M. CITY OF KENT SCALE: 1"=600' EXHIBIT LAND SURVEY SECTION DATE: 3/2023