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005-02 - City of Bremerton - ContractINTERLOCAL AGREEMENT for RECEIVE.si FEB 12002 Cooperative Water System Development CITY OF PORT ORCHARD in the PUBLIC WORKS Port Orchard 580 Zone / Bremerton 580 Zone THIS AGREEMENT is made and entered into this,l.:(.,day of 2001, by and between the CITY OF BREMERTON, a municipal corporation, hereinafter referred to as Bremerton, and the CITY OF PORT ORCHARD, hereinafter referred to as Port Orchard. FACTUAL BACKGROUND: 1. Port Orchard's 580 zone water system and the Bremerton's 580 zone water system abut at Old Clifton Road. 2• Reliability and Efficoency of Servica - Port Orchard and Bremerton desire to provide the highest reliability of service to their customers at reasonable cost. The Cities recognize that water resources are finite and vulnerable and that prudent use and management of these resources can be facilitated by cooperation among water utilities. The Cities agree that cooperation in the construction, operation and management of the water systems that serve the Port Orchard 580 and Bremerton 580 zones will: Improve overall system reliability, Enhance the manageability of the systems, • Provide opportunities for conjunctive use of water supplies, Delay the need to develop new water sources, and Result in cost efficiencies for both systems 3• - Currently, Bremerton has no significant system improvements in its 580 zone. To serve the 580 zone, Bremerton must construct new pumping, storage, transmission and distribution facilities. Port Orchard has existing storage and transmission mains in its 580 zone. These facilities have excess capacity on an interim basis. The Port Orchard 580 and Bremerton 580 zones can be made hydraulically consistent so that the excess capacity of the Port Orchard system can be utilized by Bremerton. Cooperation with Port Orchard will allow phasing of Bremerton system improvements, deferring capital expenditures and reducing the overall system cost. 4. Sharing of Existing Port ege[y_ojr Site - Bremerton requires a site for a future reservoir to serve its 580 zone. Port Orchard owns a site at the regional topographic high point. The site is large enough to accommodate a future Bremerton reservoir. 5 - A portion of the Port Orchard service area is too high to be served by the existing Port Orchard 580 zone reservoir. Port Orchard plans to create a new 660 pressure zone, served by a new pump station, to serve this high area. A portion of the Bremerton 580 zone is also too high to be served by its future Bremerton reservoir and o95560-1843.doc Page 1 of 6 HGG Inc. December 17, 2001 service to this area will also require a new high pressure zone and pump station. It is logical and cost effective to coordinate service to these adjacent high areas so that only a single new high pressure zone and pump station is required. 6• - Port Orchard requires an additional source of supply to satisfy its 2017 system growth projections. Port Orchard has applications pending for additional water rights, but the ultimate disposition of these applications is uncertain. Bremerton has available source of supply to provide to the City of Port Orchard on a long term, uninterruptible basis. 7. RCW 39.34 and 35.92.200 empower Bremerton and Port Orchard to enter into a cooperative agreement for providing outside water service. IT IS AGREED: 1. COOPERATIVE WATER SYSTEM DEVELOPMENT PLAN: Port Orchard and Bremerton agree to cooperate in the design, installation, operation and management of major water system infrastructure and water supply to serve the Port Orchard 580 zone, the Bremerton 580 Zone and the future Port Orchard/Bremerton 660 zone, as outlined in the attached Cooperative Water System Development Plan, (The Cooperative Plan). The Cooperative Plan, which is attached and made a part hereof, has been reviewed and is approved upon adoption of the Interlocal Agreement by the City Councils for Bremerton and Port Orchard. 2. SERVICE AREA: Nothing in this agreement is to be construed as changing or altering the water service area boundaries that exist as of the date of this agreement. 3. RESALE: Water supplied under this agreement shall not be resold to third party utilities without the prior written consent of the supplying utility. 4. WATER SUPPLY: 4200 Fe0gley Property - Port Orchard agrees to supply water for domestic use and fireflow to the 4200 Feigley Property from its 580 pressure zone via its 16 inch water main in Old Clifton Road, until such time as a separate Bremerton watermain in Old Clifton Road (or its equivalent) is constructed and operational. Fireflow rates/volumes and domestic/ fireflow service pressures supplied by Port Orchard will be a minimum of 1,700 gpm for one hour at a minimum of gradient of 540 at the connection. Bremerton agrees to supply water to Port Orchard, via its 12 inch Campus Parkway watermain (Old Clifton Road connection), to replenish the water supplied by Port Orchard to the 4200 Feigley property. The water supplied by Bremerton to Port Orchard will be delivered at a minimum hydraulic gradient of 580. The volume of water supplied by Port Orchard to the 4200 Feigley property shall be replenished by Bremerton on a continuous basis, or as otherwise agreed to. 660 on - Upon implementation of the 660 zone, Port Orchard agrees to supply water for domestic use and fireflow to Bremerton's 660 service area, via the 660 pump station. Fireflow rates/volumes and domestic/fireflow service pressures supplied by Port Orchard will be agreed to and approved by both Port Orchard and Bremerton prior to implementation of the 660 zone. Bremerton agrees to supply water to Port Orchard, via the Campus Parkway connection or reservoir site connection, as applicable, to replenish the water supplied by Port Orchard to Bremerton's portion of the 660 service area. The water supplied by Bremerton to Port Orchard will be delivered at a minimum hydraulic o95560-1843.doc Page 2 of 6 HGG Inc. December 17, 2001 gradient of 580. The volume of water supplied by Port Orchard to Bremerton's 660 service area shall be replenished by Bremerton on a continuous basis, or as otherwise agreed to. - Port Orchard agrees to supply the Bremerton 580 zone with fireflow, via the Old Clifton Road connection or reservoir site connection, as applicable, until such time as a separate Bremerton storage reservoir is constructed and operational. Fireflow will be provided at a maximum rate of 1,700 gpm for a maximum period of 3 hours at a minimum gradient of 540 at the connection. If either Bremerton or Port Orchard has a need for an emergency water supply (other than fireflow), it shall notify the other utility of this and of the volume required prior to activating the connection between the two systems. Notification of this need may be verbal, but it will be followed up within 10 working days by written confirmation. The emergency supply of water between each system shall not be unreasonably be denied by either party. The volume of water supplied for fireflow or emergency supply shall be replenished by the receiving utility to the supplying utility within 24 hours after the emergency, or as otherwise agreed to. - Beginning on January 1, 2004 (or at a later time agreed by the parties, Bremerton agrees to supply a uninterruptible water supply to the Port Orchard 580 Zone of up to a maximum of 285 ac.-ft. on a yearly basis, at a maximum rate not to exceed 350 gpm, via the Old Clifton Road connection or reservoir site connection, as applicable. This supply is in addition to water supplied by Bremerton to Port Orchard for service of the 4200 Feigley property, the Bremerton 660 zone, emergency purposes or for service of other portions of the Bremerton service area that may be included in this agreement (and served via the Port Orchard system) in the future. The water supplied by Bremerton to Port Orchard will be delivered at a minimum hydraulic gradient of 580. Port Orchard agrees to compensate Bremerton for this long term water supply in accordance with the terms of this agreement. The water supplied by Bremerton to Port Orchard shall be firm and uninterruptible until such future time as Port Orchard may secure new water rights to replace the Bremerton supply. Port Orchard agrees to make diligent, continuous, best efforts to acquire water rights to replace the Bremerton supply. Nothing in this Agreement shall abrogate Port Orchard's obligation to provide its water supply needs through its own sources at the earliest possible date. Bremerton agrees that if new water rights are not secured, the water supplied by Bremerton will continue indefinitely. For purposes of this Agreement Port Orchard is a wholesale customer of the City of Bremerton and will make no claim to any Bremerton water right. 5• WATER QUALITY: Bremerton agrees to deliver water to Port Orchard at the purity and quality in effect for residential customers of Bremerton. Port Orchard agrees to deliver water to Bremerton at the purity and quality in effect for residential customers of Port Orchard, except that water delivered by Port Orchard to Bremerton shall not be fluoridated. In the event of water quality problems in either system, Bremerton and Port Orchard agree to work cooperatively and diligently to determine the source/location of the problem and correct it. Regardless of the source/location of water quality problems, each party agrees to assume the cost of correcting water quality problems in its own system. 6. COMPENSATION: For purposes of this agreement the cost of water shall be fixed at ninety-five percent (95%) of Bremerton's County retail rate. In calculating costs, the Master o95560-1843.doc Page 3 of 6 HGG Inc. December 17, 2001 Connection between the Port Orchard and Bremerton systems shall be assumed to be an 8 inch meter (regardless of actual meter size). For all other connections between the systems, the meter size for billing purposes shall be the actual installed size. All water provided from or to either utility will be charged at this cost, unless otherwise agreed to. Payment for supplied water shall be made monthly by the receiving utility, upon receipt of an invoice from the supplying utility. Any and all fixed costs for a meter connection shall cease at such time that the receiving utility notifies the supplying utility that the connection is no longer necessary for normal domestic supply. After this notification, if the connection remains in place for purposes of emergency supply, it will not be subject to the fixed cost portion of a rate structure, although any water used for emergency purposes will be subject to the agreed upon unit rate for water use. This agreement is based on the City of Bremerton's current rate structure, as of the date of this agreement. This rate structure consists of two parts: a fixed cost (based on meter size) and a variable cost (based on the actual volume of water purchased). It is acknowledged that changes to this rate structure may occur during the life of this agreement. It is agreed by the parties that any further rate structure changes to add progressive rates for increased water usage, will accommodate the fact that the water supplied under this agreement will serve a large number of ERU's and that the estimated total number of ERU's served will be used to calculate the volume of water in each rate tier. 7. WATER CONSERVATION: Port Orchard has begun to prepare and implement a water conservation plan for the Port Orchard 580 zone. The goal of this plan is to reduce domestic water consumption in the Port Orchard 580 zone. Upon execution of this agreement, Port Orchard will move to complete and implement the conservation plan. During drought conditions or other supply shortages suffered by Bremerton for any reason, it is agreed that Port Orchard customers using Bremerton supplied water will comply with similar restrictions and conservation measures required or requested of Bremerton customers according to Bremerton's Water Conservation Plan. 8. NOTICES: All notices and other written communications required by this Agreement shall be in writing and, except as expressly provided elsewhere in this Agreement, shall be deemed to have been given at the time of delivery, if personally delivered, or at the time of mailing if mailed by first class, postage pre -paid and addressed to the party at its address as stated below, or at such address as any party may designate at any time in writing. Director of Public Works & Utilities City Engineer City of Bremerton City of Port Orchard 3027 Olympus Drive 216 Prospect Street Bremerton, WA 98310-4799 Port Orchard, WA 98366 9. SEVERABILITY: It is the intent of the parties that if any provision of this contract or its application is held by a court of competent jurisdiction to be illegal, invalid, or void, the validity of the remaining provisions of this contract or its application to other entities, or circumstances shall not be affected. The remaining provisions shall continue in full force and effect. The rights and obligations of the parties shall be construed and enforced as if the contract did not contain the particular invalid provision. However, if the invalid provision or its application is found by a court of competent jurisdiction to be substantive and to render performance of the remaining provisions unworkable and non -feasible, it is found to seriously affect the consideration and/or is inseparably connected to the remainder of the contract, the entire contract shall be null and void. o95560-1843.doc Page 4 of 6 HGG Inc. December 17, 2001 10. MODIFICATION: This Agreement represents the entire agreement between the parties. No change, termination or attempted waiver of any of the provisions of this Agreement shall be binding on either of the parties unless executed in writing by authorized representatives of each of the parties. This Agreement shall not be modified, supplemented, or otherwise affected by the course of dealings between the parties. 11. BENEFITS: This Agreement is entered into for the benefit of the parties to this Agreement only and shall confer no benefits, direct or implied, on any third persons. The rights granted by this Agreement may not be assigned without the written consent of the Mayor of the City of Bremerton and the Mayor of the City of Port Orchard. 12. ARBITRATION: Disputes under this Agreement shall be settled through binding arbitration and the parties agree and stipulate pursuant to MAR 8.1 that the Mandatory Arbitration Rules for Superior Court shall apply, except Section VIII, Trial De Novo. 13. Consent: Whenever it is provided in this contract that the prior written consent or approval of either party is required as a condition precedent to any actions, the requested consent or approval shall not be unreasonably withheld. When prior consent is sought, failure of the party to respond in writing within 90 days of the request shall be deemed as the party's consent or approval. This provision does not apply to requests for amendments of this contract. 14. Emergency Situations: Nothing in this contract shall be deemed to preclude either party from taking necessary action to maintain or restore water supply in emergency situations and such action shall not be deemed a violation of this contract. 15. No Joint Venture - Individual Liability: This is not an agreement of joint venture or partnership. No provision of this contract shall be construed so as to make either party individually or collectively a partner or joint venture with the other party. Neither party is an agent of the other. Neither party shall be liable for the acts of the other in any representative capacity whatsoever. 16. Complete Agreement: This contract represents the entire agreement between the parties hereto concerning the subject matter hereof. This contract may not be amended except as provided herein. 17. Venue, Jurisdiction and Specific Performance: In the event of litigation between the parties, venue and jurisdiction shall lie with the Kitsap County Superior Court of the State of Washington. The parties shall be entitled to specific performance of the terms hereof. 18. Default: In the event of default of any provision of the contract, the non -defaulting party shall send written notice to the other party setting forth the nature of the default. If the default is for a monetary payment due hereunder, the defaulting party shall have thirty (30) days to cure the default. In the event of other defaults, the non -defaulting party shall use its best efforts to cure the default within ninety (90) days. If such default cannot be reasonably cured within such ninety (90) day period, the non -defaulting party shall, upon written request prior to the expiration of the ninety (90) day period be granted an additional sixty (60) days to cure the default. 19. Force Majeure: The time periods for either party's performance under any provisions of this contract shall be extended for a reasonable period of time when either party's performance is prevented, in good faith, due to fire, flood, earthquake, lockouts, strikes, o95560-1843.doc Page 5 of 6 HGG Inc. December 17, 2001 embargoes, acts of God, war and civil disobedience. If this provision is invoked, the invoking party agrees to immediately take all reasonable steps to alleviate, cure, minimize or avoid the cause preventing such performance, at its sole expense. 20. Successors: This contract shall inure to the benefit of and be binding upon the parties and their successors and assigns. IN WITNESS WHEREOF the parties hereto execute this Agreement this '�L'Qzk- day of waj 2022—. CITY OF BREMERTON BY: ti 'x/.V4, t ayor ATTEST: V M.-L. Clerk DEPARTM T PPROVAL: Director of Public o s & Utilities CITY OF PORT ORCHARD BY: )01- Mayor ATTEST: Clerk r r_ Vey i r ■ 0 o95560-1843.doc Page 6 of 6 HGG Inc. December 17, 2001 Port Orchard 580 Zone / Bremerton 580 Zone Plan for Cooperative Water System Development This Document provides a plan for cooperative water system development between the City of Port Orchard and the City of Bremerton. The Cooperative Water System Development Plan ("The Cooperative Plan") outlined below describes phased water improvements in the Port Orchard 580 and Bremerton 580 zones which will provide safe, reliable service in an efficient and cost effective manner. Cooperation between the City of Bremerton and the City of Port Orchard in the development of their adjacent water systems will result in the following benefits: A. RefiabmfiLy aod EfficipanQy Qf Seryice - Water resources are finite and vulnerable and the prudent use and management of these resources can be facilitated by cooperation among water utilities. Cooperation in the construction, operation and management of the water systems that serve the Port Orchard 580 and Bremerton 580 zones will: Improve overall system reliability, Enhance the manageability of the systems, Provide opportunities for conjunctive use of water supplies, Will delay the need to develop new water sources, and Result in cost efficiencies for both systems B. Deferral/Phasing of Bremerton Infrastructure - Currently, Bremerton has no significant system improvements in its 580 zone. To serve the 580 zone, Bremerton must construct new pumping, storage, transmission and distribution facilities. Port Orchard has existing storage and transmission mains in its 580 zone. These facilities have excess capacity on an interim basis. The Port Orchard 580 and Bremerton 580 zones can be made hydraulically consistent so that the excess capacity of the Port Orchard system can be utilized by Bremerton. Cooperation with Port Orchard will allow phasing of Bremerton system improvements, deferring capital expenditures and reducing the overall system cost. C. Sharing Qf Existing Part Orchard Reservoir Site - Bremerton requires a site for a future reservoir to serve its 580 zone. Port Orchard owns a site at the regional topographic high point. The site is large enough to accommodate a future Bremerton reservoir. D. Elimination of Duplicate Pump5tations - A portion of the Port Orchard service area is too high to be served by the existing Port Orchard 580 zone reservoir. Port Orchard plans to create a new 660 pressure zone, served by a new pump station, to serve this high area. A portion of the Bremerton 580 zone is also too high to be served by its future Bremerton reservoir and service to this area will also require a new high pressure zone and pump station. It is logical and cost effective to 095560-1842.doc Page 1 of 11 HGG Inc. December 17, 2001 coordinate service to these adjacent high areas so that only a single new high pressure zone and pump station is required. E. Satisfartion of Port Orchard Water Source_ Requirements - Port Orchard requires an additional source of supply to satisfy its 2017 system growth projections. Port Orchard has applications pending for additional water rights, but the ultimate disposition of these applications is uncertain. Bremerton has available source of supply to provide to the City of Port Orchard on a long term, uninterruptible basis. The Cooperative Plan will be implemented in four phases, as described below. Attached is a summary chart which provides a quick one page synopsis of the main points of The Cooperative Plan. Also attached is a map of The Cooperative Plan area (Figure 1) with key landmarks noted. For purpose of this Cooperative Plan, a Port Orchard 580 zone ERU connection is defined as a single family residential connection or, if other than single family, a connection which has an average daily demand of 290 gpd and a maximum daily demand of 650 gpd, and a Bremerton 580 zone ERU connection is defined as a single family residential connection or, if other than single family, a connection which has an average daily demand of 202 gpd and a maximum daily demand of 392 gpd. Phase 1 extends from the present through 923 Port Orchard ERU connections in the Port Orchard 580 Zone (approximately year 2004) QL through 1,260 Bremerton ERU connections, in the Bremerton 580 Zone, whichever occurs first. During Phase 1 the 4200 Feigley property will be served by Port Orchard with water replenished by Bremerton, Phase I of the Northwest Corporate Campus will be served by the Bremerton system, and the McCormick Woods PUD and McCormick West will be served by the Port Orchard system. In Phase 1, Bremerton will construct new Pump Station 2A, a new 12 inch transmission main in Campus Parkway (from pump station 2A to Old Clifton Road) and a new connection between the Port Orchard and Bremerton systems at Old Clifton Road (termed the Old Clifton Road connection). Port Orchard will provide up to 1,700 gpm of emergency fireflow for up to 3 hours to the Bremerton system, via the new Old Clifton Road connection. This will defer the need for Bremerton to construct a separate new storage reservoir in the 580 zone and a separate new water main in Old Clifton Road. Water will also be supplied from Bremerton to Port Orchard, via this connection, in the event of a supply emergency in the Port Orchard system. The 4200 Feigley property is within the Bremerton service area and its internal water system will be constructed, owned and operated by Bremerton. In Phase 1, the 4200 Feigley project will connect to, and be supplied water from, the existing Port Orchard 16 inch water main in Old Clifton Road. This will defer the need for Bremerton to construct a separate new water main in Old Clifton Road. o95560-1842.doc Page 2 of 11 HGG Inc. December 17, 2001 Bremerton will supply water to the Port Orchard system, via the Old Clifton Road connection, to replenish the water supplied by Port Orchard to the 4200 Feigley property. Port Orchard and Bremerton will also replenish and/or reimburse each other for water supplied for emergency and/or fireflow purposes. Specific responsibilities in Phase 1 are: Consistent Pressure Gradient - A consistent pressure gradient between the Bremerton and Port Orchard systems is required to facilitate cooperative service. Therefore, as part of Phase 1, Bremerton will adjust its adjacent water system to a 580 pressure gradient so that it is consistent with the hydraulic gradient in the Port Orchard system. The adjustment of Bremerton's hydraulic gradient may require revisions to the design of Bremerton's planned Pump Station 2A. These revisions are the responsibility of Bremerton. All planning and design revisions necessary to accomplish the change in hydraulic gradient shall commence upon execution of this agreement and be completed by January 1, 2002. Bremerton Pump Station 2A - In Phase 1, Bremerton will construct, operate and maintain pump station 2A to supply a minimum of 1,600 gpm at a hydraulic gradient of 580 at the Port Orchard reservoir. Pump Station 2A will be equipped with a standby power generator sufficient to maintain operation of the pump station during a power outage. The pump station will be completed and operational by July 1, 2002. 1-2-inch Trarlsmi55iQn Main in Campus Parkw,-iy - Bremerton will construct, operate and maintain a 12 inch transmission main in Campus Parkway from Pump Station 2A to the Old Clifton Road connection with the existing Port Orchard 16 inch water main. This transmission main shall be completed and operational by July 1, 2002. Connection between the Bremerton and Port Orchard Systems nt Old Qifton Road - Bremerton will construct a connection (including meter) between the 12 inch transmission main in Campus Parkway and the existing Port Orchard 16 inch water main in Old Clifton Road (Old Clifton Road connection). The meter shall be capable of measuring the flow of water both from Bremerton to Port Orchard and from Port Orchard to Bremerton. The specific design and method of operation of the connection/meter shall be approved by both Port Orchard and Bremerton prior to installation. Construction and maintenance of the connection/meter is the responsibility of Bremerton but the cost of construction, operation and maintenance will be shared equally by both Port Orchard and Bremerton. The connection shall be completed and operational by July 1, 2002. Port Orchard and Bremerton shall work together to secure Washington State Department of Health and Washington State Department of Ecology approval of the connection. If amendments to water system plan documents are required these shall be completed by each system at its own expense. If additional specific studies/designs are required to secure approval of the connection these shall be completed as agreed to and the cost shared equally by both Port Orchard and Bremerton. Ficeflnw for Northwest Corporate Campus - Fireflow for the Northwest Corporate Campus is reported by Bremerton to be 1,700 gpm for 3 hours. Port Orchard has approximately 306,000 gallons of available storage in its existing reservoir which allows Port Orchard to provide up to 1,700 gpm of fireflow for 3 hours to the Bremerton system (at a minimum hydraulic gradient of 540). With Port Orchard supplying 1,700 gpm fireflow, Bremerton need not supply any fireflow o95560-1842.doc Page 3 of 11 HGG Inc. December 17, 2001 directly from Pump Station 2A. If the fireflow requirement at Northwest Corporate Campus increases above 1,700 gpm due to unforeseen circumstances, Bremerton will supply the fireflow amount above 1,700 gpm. Port Orchard's supply of 1,700 gpm for 3 hours for fireflow is contingent on the approval of the local fire district and the Washington State Department of Health to allow standby and fireflow storage to utilize the same volume (in the Port Orchard 580 reservoir). Port Orchard and Bremerton will work together to secure these approvals. Service to 4200 Feigley Property - Bremerton will construct a connection (including meter) between the 4200 Feigley water system and the existing Port Orchard 16 inch water main in Old Clifton Road (Feigley connection). The meter shall be capable of measuring the flow of water from the Port Orchard system to the 4200 Feigley system. The specific design and method of operation of the connection/meter shall be approved by both Port Orchard and Bremerton prior to installation. Construction, operation, maintenance and all associated costs of the connection /meter is the responsibility of Bremerton. 660 Pressure Zone - Port Orchard will create a 660 pressure zone by designing, constructing, operating and maintaining a new pump station at the 580 reservoir site. The 660 pump station will be designed and constructed to service area in both Port Orchard and Bremerton. The 660 pump station will be designed to supply domestic demands and fireflow, in accordance with applicable state regulations. The 660 pump station will be equipped with a standby power generator sufficient to maintain operation of the pump station during a power outage, in accordance with applicable state regulations. Design and construction of the 660 pump station, and implementation of the 660 zone, will begin at a future date to be agreed on by Bremerton and Port Orchard. Design of the 660 pump station, the 660 zone boundaries, the number of connections to be served and required fireflow will be approved by both Port Orchard and Bremerton prior to implementation. The cost of design and construction of the 660 pump station will be shared by Bremerton and Port Orchard on a pro-rata basis, based on the total number of ERU connections within the 660 zone. Distribution mains within the 660 zone will generally be the individual responsibility of Port Orchard and Bremerton, depending on which service area they serve. The cost of shared distribution facilities in the 660 zone, if any, will be shared by Bremerton and Port Orchard on a pro-rata basis based on the total number of ERU connections served by the facility. Water supplied from the 660 pump station to the Bremerton service area will be metered. The specific design and method of operation of the connection/meter shall be approved by both Port Orchard and Bremerton prior to installation. Construction, operation, maintenance and all associated costs of this connection/meter is the responsibility of Bremerton. Bremerton will supply water to the Port Orchard system, via the Old Clifton Road connection, to replenish the water supplied by Port Orchard to the Bremerton service area within the 660 zone, including domestic, fireflow and emergency supply. o95560-1842.doc Page 4 of 11 HGG Inc. December 17, 2001 I&EM: Phase 2 extends from 923 Port Orchard ERU connections in the Port Orchard 580 Zone (approximately year 2004) through 1,500 Port Orchard ERU connections (approximately year 2007) QL through 3,350 Bremerton ERU connections in the Bremerton 580 Zone, whichever occurs first. In Phase 2, Bremerton will provide a long term, uninterruptible source of supply to the Port Orchard system of up to 285 ac.-ft. on a yearly basis, at a maximum rate not to exceed 350 gpm. This supply is in addition to water supplied by Bremerton to Port Orchard for service of the 4200 Feigley property, the 660 zone or for emergency purposes. This source of supply will be provided by upgrading the capacity of Bremerton Pump Station 2A (unless it was oversized in Phase 1). In Phase 2. Port Orchard will continue to provide up to 1,700 gpm of emergency fireflow for up to 3 hours to the Bremerton system at a minimum hydraulic gradient of 540, via the Old Clifton road connection, and Port Orchard will continue to supply water to 4200 Feigley via the Feigley connection, deferring Bremerton transmission main and storage improvements. In Phase 2 water will also be supplied between the systems, via the Old Clifton Road connection, in the event of a water supply emergency in either system. Specific responsibilities during Phase 2 are: RrpmertQn Pump Sta_tion 2A - In Phase 2, Bremerton will upgrade the capacity of Pump Station 2A to accommodate the supply of a maximum of 350 gpm to the Port Orchard water system. All incremental costs associated with the required capacity upgrades to Pump Station 2A will be the responsibility of Port Orchard. The pump station capacity upgrades will be completed and operational within one year of Port Orchard's request, in writing, that the source be made available, but no sooner than January 1, 2004. - If the supply of an additional 350 gpm to the Port Orchard system requires upgrading the capacity of transmission mains in Campus Parkway, the cost of these upgrades will be the responsibility of Port Orchard. However, Bremerton will cooperate with Port Orchard to minimize the need for transmission main upgrades by managing its system as efficiently as possible, including utilizing distribution mains as transmission facilities where feasible. Beginning in Phase 2, Bremerton will provide a uninterruptible source of supply to the Port Orchard 580 Zone of up to a maximum of 285 ac.-ft. on a yearly basis, at a maximum rate not to exceed 350 gpm, via the Campus Parkway or reservoir site connection, as applicable. This supply is in addition to water supplied by Bremerton to Port Orchard for service of the 4200 Feigley property, 660 zone or for emergency purposes. The water supplied by Bremerton to Port Orchard will be delivered at a minimum hydraulic gradient of 580 (at the 580 reservoir). 095560-1842.doc Page 5 of 11 HGG Inc. December 17, 2001 The water supplied by Bremerton to Port Orchard shall be firm and uninterruptible until such future time as Port Orchard may secure new water rights to replace the Bremerton supply. Port Orchard agrees to make diligent, continuous, best efforts to acquire water rights to replace the Bremerton supply. Nothing in this Agreement shall abrogate Port Orchard's obligation to provide its water supply needs through its own sources at the earliest possible date. Bremerton agrees that if new water rights are not secured, the water supplied by Bremerton will continue indefinitely. For purposes of this Agreement Port Orchard is a wholesale customer of the City of Bremerton and will make no claim to any Bremerton water right. Bremerton will coordinate its operation and maintenance of pump station 2A so that interruptions, if any, in water supplied to Port Orchard occur during low water use periods. Regulatory Approvals ovals - Port Orchard and Bremerton shall work together to secure Washington State Department of Health and Washington State Department of Ecology approval of Bremerton's supply to Port Orchard. If amendments to the water system plan documents are required these shall be completed by each system at their own expense. If additional specific studies/designs are required to secure approval these shall be completed as agreed to and the cost shared equally by both Port Orchard and Bremerton. Phase 3 extends from 1,500 Port Orchard ERU connections in the Port Orchard 580 Zone (approximately year 2007) through 2835 Port Orchard ERU connections in the 580 Zone (full buildout - approximately year 2018) ar through 3,350 Bremerton ERU connections in the Bremerton 580 Zone, whichever occurs first. After approximately 1,500+/- ERU connections in the Port Orchard 580 Zone, the existing Port Orchard 16 inch main in Old Clifton Road may not have sufficient capacity to supply fireflow to the Bremerton system. In Phase 3 Bremerton will construct a permanent transmission main in Old Clifton Road from Campus Parkway to the Port Orchard reservoir and 4200 Feigley will be disconnected from the Port Orchard 16 inch main and served from this new Bremerton main. In Phase 3 the connection between the Port Orchard and Bremerton systems at Old Clifton Road will be relocated to the Port Orchard reservoir site (termed the reservoir connection). In Phase 3, Port Orchard will continue to provide up to 1,700 gpm of emergency fireflow for up to 3 hours to the Bremerton system at a minimum gradient of 540, via the reservoir connection, deferring the need for Bremerton to construct a separate new storage reservoir in the 580 zone. During Phase 3, Port Orchard will construct a second reservoir on its existing reservoir site to satisfy its growth requirements in its 580 zone. Port Orchard will coordinate the design of this second reservoir with Bremerton so that space is available at the Port Orchard site for a future Bremerton reservoir(s). Specific responsibilities during Phase 3 are: o95560-1842.doc Page 6 of 11 HGG Inc. December 17, 2001 Bremerton ,12 �inch Transmissim Main in Old CliftQ ad - Bremerton will construct, operate and maintain a 12 inch transmission main in Old Clifton Road from Campus Parkway to a connection with the Port Orchard water system at the Port Orchard reservoir site (reservoir connection). The transmission main will be completed and operational within 1 year of Port Orchard's request, in writing, that the main be constructed, but no sooner than 2007. If Bremerton's long term supply of 350 gpm to the Port Orchard system requires upgrading the capacity of the Bremerton transmission main in Old Clifton Road, the cost of this upgrade will be the responsibility of Port Orchard. However, Bremerton will cooperate with Port Orchard to minimize the need for transmission main upgrades by managing its system as efficiently as possible, including utilizing distribution mains as transmission facilities where feasible. Relocation of the Connection between the Bremerton end Port Orchard Systems - As an element of the installation of its transmission main in Old Clifton Road, Bremerton will relocate the Old Clifton Road connection and meter to the Port Orchard reservoir site (reservoir connection). The specific design and method of operation of the connection/meter relocation shall be approved by both Port Orchard and Bremerton prior to installation. Installation and maintenance of the connection/meter at the reservoir site is the responsibility of Bremerton, but the cost of installation, operation and maintenance will be shared equally by both Port Orchard and Bremerton. The construction schedule for relocation of the connection/meter shall be coordinated with Port Orchard to avoid disruptions in supply to Port Orchard. Regulatory Approvals ovals - Port Orchard and Bremerton shall work together to secure Washington State Department of Health and Washington State Department of Ecology approval of the connection relocation. If amendments to the water system plan documents are required these shall be completed by each system at their own expense. If additional specific studies/designs are required to secure approval these shall be completed as agreed to and the cost shared equally by both Port Orchard and Bremerton. Term: There is no specific timetable for the start of Phase 4. Phase 4 begins when Bremerton requires separate standby storage in its 580 Zone and/or when separation of the Port Orchard and Bremerton systems is desired by either City, whichever occurs first. In Phase 4, the Bremerton and Port Orchard systems will be functionally separated. Bremerton will construct separate storage reservoir(s) on the Port Orchard reservoir site(s) and a separate distribution main in Old Clifton Road (if necessary). In Phase 4 Bremerton will provide its own fireflow. Port Orchard will provide space within its reservoir site to Bremerton for a reservoir, when requested to do so by Bremerton. Specific responsibilities during Phase 4 are: - �� - • • . ■ - U - - ■ • ■ - 1167;1-:l[.T>E 17M &1 • 1 •T%1iFTN1-7�iRi71't• • 1 1 11. 1 .1• is "DIM1111 - Me _• - • o95560-1842.doc Page 7 of 11 HGG Inc. December 17, 2001 reservoir site(s) for Bremerton to construct, operate and maintain a separate storage reservoir or reservoirs to serve the Bremerton 580 zone. The exact location of the Bremerton reservoir(s) will be determined by mutual agreement prior to construction. Title for the land on which the Bremerton reservoir(s) are built will remain with Port Orchard. Port Orchard will grant a permanent easement to allow Bremerton to construct, maintain and operate the reservoir(s) and associated water mains and appurtenances on the site in perpetuity, at no cost to Bremerton. Each party shall be responsible for the cost of construction, site restoration, operation and maintenance of its own reservoirs and water system infrastructure on the reservoir site(s). After construction of the Bremerton reservoir, the cost of routine maintenance of the reservoir grounds and access roads will be shared equally by Bremerton and Port Orchard. Due to uncertainties regarding future land use and sensitive area codes, Port Orchard will not warrant that any specific area, size or shape of land will be available for use by Bremerton. However, from the date of this agreement Port Orchard will coordinate with Bremerton regarding its future space requirements prior to constructing any additional infrastructure on the site(s). Separat.ian_nf the Bremerton and Port Orr -hard Systems - Separation of the Bremerton and Port Orchard systems and/or restoration of both systems to a permanent configuration may require the removal and/or relocation of temporary piping, valving meters, etc., the addition of new connections at the reservoir site, etc. The cost of these miscellaneous adjustments will be shared equally between Bremerton and Port Orchard unless it is clearly demonstrated that the work is for the benefit of a particular system. All water supply delivered as described in this plan shall be measured by the supplying utility using electronic metering equipment of a type which is agreeable to each utility. Meters shall be read and metering results shall be reported to the receiving utility on a monthly basis, or at such frequency as may otherwise be agreed to by the parties. The metering equipment shall be furnished, installed, maintained, and calibrated by the receiving utility, as specified below. Calibration shall be done at least once every three (3) years and a copy of calibration results submitted to the supplying utility. Both utilities shall have access to and be permitted to install and maintain its own monitoring and recording system at its own expense. 4200 Feigley meter - For this connection Port Orchard is the supplying utility and Bremerton is the receiving utility. 660 Zone meter - For this connection Port Orchard is the supplying utility and Bremerton is the receiving utility. Old Cloffon RQad connection and/or Reservoir QQnoection meters - For these connections Bremerton is the supplying utility and Port Orchard is the receiving utility. However, Bremerton will be responsible for furnishing, installing, maintaining, and calibrating the metering equipment for these connections, and the cost shall be shared jointly. In the event any meter fails to register, or it registers incorrectly, the Water Utility Billing Department for the supplying utility shall estimate the amount of water delivered for the period during which such meter failed to register by taking an average of the total deliveries of water o95560-1842.doc Page 8 of 11 HGG Inc. December 17, 2001 through such meter for the preceding two months in which water was delivered. Each utility shall install, operate, and maintain isolation valves and related facilities on their respective water mains at the point where those mains are interconnected. Each utility shall cooperate with the other utility in coordinating the operation of the isolation valves and related facilities for the purposes of this Agreement. o95560-1842.doc Page 9 of 11 HGG Inc. December 17, 2001 Phase I Timing Port Orchard 580 Zone / Bremerton 580 Zone Cooperative Water System Development Plan - Summary Chart Port Orchard • Up to 923 ERU in Port • Orchard 580 (2004) or • Up to 1,260 ERU in Bremerton 580 • 4 I• Up to 1,500 ERU in Port Orchard 580 (2007) or Up to 3,350 ERU in Bremerton 580 Satisfies buildout requirements of Port Orchard 580 (2,835 ERU) (2018) or Up to 3,350 ERU in Bremerton 580 Required when Bremerton requires significant standby storage in 580 Zone or when separation of systems if required Satisfies buildout require- ments of Bremerton zone Bremerton Provide fireflow to • Bremerton, max 1,700 gpm • for 3 hrs. (min. 540 gradient) • Create 660 pressure zone when necessary and agreed • to Provide domestic supply and fireflow to 4200 Feigley • Pay incremental cost of upgrading Pump Station 2A to provide additional 350 gpm. Construct 2"d reservoir in Port Orchard 580 Zone Provide space on Port Orchard reservoir site for Bremerton reservoir Responsibilities Joint Comments Adjust HGL of Zone to 580 • Secure local fire district and • Construct interim Pump Station 2A DOH approval for reservoir Construct 12" transmission main from Pump vol. sharing Station 2A to Old Clifton Rd. • Share cost of Old Clifton Rd. Construct connection between Port Orchard connection & Bremerton systems (incl. meter) at Old • Share cost of 660 pressure Clifton Rd. zone improvements Construct connection between 4200 Feigley & exist. Port Orchard 16 main (incl. meter) Provide water source for 4200 Feigley and Bremerton portion of 660 zone via Old Clifton Rd. connection _ Upgrade capacity of Pump Station 2A to Work together to secure all • provide long term Uninterruptible source regulatory approvals (350 gpm) to Port Orchard 10 • Construct permanent transmission main in • Old Clifton Rd. - remove Feigley connection • Relocate Old Clifton Rd. connection to • reservoir site (reservoir connection) • Construct separate storage reservoir on Port • Orchard reservoir site • Construct permanent distribution main in Old Clifton Rd. (if required) Share cost of relocating Old Clifton Rd. connection Work together to secure all regulatory approvals Share cost of removal of all temporary piping and any adjustments of connection control valves, meters to permanent configuration • Defers permanent Bremerton storage reservoir(s), transmission main in Old Clifton Rd. and distribution main in Old Clifton Rd. Defers permanent Bremerton storage reservoir(s) and trans- mission main in Old Clifton Rd. and distribution main in Old Clifton Rd. Defers permanent Bremerton storage reservoir(s) and distribution main in Old Clifton Rd. All major infrastructure components for both systems are constructed in their permanent configuration o95560-1.842 Page 10 of 11 HGG Inc. December 17, 2001 Figure 1 - Port Orchard/Bremerton Cooperative Water System Development Plan o95560-1.842 Page 11 of 11 HGG Inc. December 17, 2001