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003-96 - City of Bremerton - Contract\t krVzr>-A@ 61., {^i'L,* \Cet+tcil i -t .+- !. !:_ '',urr ' .\"r9 INTERLOCAL AGREEMENT FOR WATER SUPPLY THIS AGREEMENT is made and entered into this aL, day of I99 6 , by and be twe en the C I TY OF BREMERTON, a municipal corporation, hereinafter referred to as "Bremertort," and the City of Port Orchard, hereinafter referred to as "Port Orchard." FACTUAL BACKGROUND: 1. The parties desire to provide the highest refiability of service to their customers at reasonable cost. 2. The parties recognize that water resources are finite and vulnerable and that prudent use and management of these resources could be facilitated by cooperation among water utilities. 3. Bremerton and Port Orchard have water facilities which are interconnected. 4. RCW 39.34 and 35.92.200 empower Bremerton and Port Orchard to enter into a cooperative agreement for providing outside wat.er service. 1 *I v IT IS AGREED: 1. SCOPE: Subject to the terms and conditions set forth herein, Bremerton and Port Orchard agree to the contj-nuation and maintenance of a water system intertie at Anderson Hill Road and SR 16 for the purpose of supplying domestic water between the two systems during emergency conditions. Bremerton agrees to sel1 and deliver to Port Orchard and Port Orchard agrees to purchase from Bremerton surplus water for the needs of inhabitants of Port Orchard and adjacent areas for domestic, irrigation, and fire protection purposes. 2. TERM: The term of this Agreement shall run f rom the date o f thi s agreement with automatic renewal through the until December L996, last day of the next of successivef ol lowing December and each December years, wri t ten be f ore 3. unless notice December SUPPLY: f rom Bremerton pu rchased wi 11 be identi f ied on or before February L, which wiIl include aeach calendar year by letter written proj ection of how much one or both of the utilities furnish to the other utility of non-renewal 1 of the then current calendar year. Port Orchard agrees to purchase water each calendar year. The amount to be 2 water Port Orchard will \r,' purchase from months o f the Bremerton watershed and year. agrees to deliver reservoirs at the surplus water from its purity and quality in o f Bremerton . Bremerton duringr each of the calendar effect for residential customers If Bremerton has a need for an emergency water supply, it shalI notify volume requi red pr j-or to Port Orchard of this and of the opening t he valve between the two systems. Notification of this need on Bremerton, s part may be verbal, but it will be followed up within 1 0 working days by written confirmation. 4. COMPENSATION: The initial unit price of water sold to either jurisdiction during L996 shall $0.3529 per 100 cubic feet. The rate for subsequent calendar year shall be computed be any by themultiplying the I996 base price the ratio of ( 1 )by forNational Consumer Price Index AI I Urban Consumers of the United States Department of Labor Statistics for the Seattle/Everett, WA area, as of the November preceding such rate revision, and (2) the same consumer price index for November 1995. 5. INTERTIE FACILITIES: All surplus or emergency water supply delivered pursuant to this Agreement shall be measured by the delivering municipality using suitable measuring equipment, of standard manufacture, 3 11 F'r' -ts\..t- a-U rl ? f Y a \t/\- to be furnished, instal-l-ed, maintained, and calibrated by Port Orchard at the expense of Port Orchard. Port Orchard shal1 retain ownership of said meters. Cal-ibration shall be done at least once each three (3) years and a copy of calibration results submitted to Bremerton. Bremerton shall have access to and be permitted to instafl and maintaj-n its own monitoring and recording system at its expense. In the event any intertie meter fail-s to register, or it registers incorrectly, the Bremerton Water Utility Billing Department shal1 estj-mate the amount of water del-ivered for the period during which such meter failed to regj-ster by taking an average of the total deliveries of water through such meter for the preceding two months in which water was delivered. Each utility shatl instatl, operate, and maintain isol-ation valves and related facilities on their respecti-ve water mains at the point where those mains are interconnected. Each utility shalI cooperate with the other utility in coordinating the operation of the isolation valves and related facilities for the purposes of this Agreement. 6. PRIORITY OF BREMERTON WATER CUSTOMERS ATiID THE PUGET SOT,ND NAVAL SHIP]TARD: ]t iS diStiNCTlY 4 \,/ understood and agreed between parties hereof that by prior agreement, sel l ing part o f its supply to Puget Sound Naval Shipyard and give precedence to any and all needs and of Bremerton's water customers and the Nava1 Shipyard f or surplus water. Surplus Port Orchard under thiswater to be supplied to Bremerton i s, surplus water that it wiIl requi rements Puget Sound Agreement shar 1 over and above the Bremerton be such as Bremerlon may irave on hand present users ofthe requi rement s system and the requirements of Puget City Engineer City of Port Orchard 2L6 Prospect Street Port Orchard, WA 98366 of the Sound Nava1 Shipyard. 7. NOTICES: AI1 notices and other written communications required by this Agreement shall be in writing and, except as expressly provided elsewhere in this Agreement, shatl 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 part 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 of Bremerton 3021 Olympus Drive Bremerton, WA 98310-41 99 5 L .''-,i ' f t B. Agreement remainder remainder oJo of this Agreement of this Agreement v SE\TERABILTTY: I f or its application \- any provision of this is held invalid, the the application of the shall not be affected. or MODIFICATION: This Agreement represents the entire agreement between the parties. No change, terminaticn or attelnpteci waiver of any of the provisions of this Agreement shal-I be binding on either of the parties unless executed in writing by authorized representatives of each of the partj-es. This Agreement sha1l not be modified, supplemented, or otherwise affected by the course of dealings between the parties. 10. BENEFITS: This agreement is entered into for the benefit of the parties to this Agreement only and sha11 confer no benefits, direct or implied, on any third persons. The right.s 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. L2. ARBITRATION: Disputes under this Agreement shall be settled through binding arbitration and the parties agree and stipulate pursuant to l{AR 8.1 that 6 .\tu t f \-r ,i.- i -..t? I ? ! i v the Mandatory Arbitration Rules for Superior Court shal-I apply, except Section VIII, Trial De Novo. IN WITNESS WHEREOF the parties hereLo execute this Agreement thi s aL day or+, L996. CITY OF BREMERTON CITY OF ORCHARD \ir BY ,L{ Horton, Mdyor ATTEST: Kathleen L. McCluskey Clerk FORM: Ian R.rs, City Attorney DE PARTT{EN TAL APPROVAL : w.Sampley, P. E. Director of Pub1ic Works & Utiliti-es BY Mayor ATTEST: er APPRO\IED AS TO FORM: City o v 7