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037-19 - Resolution - Interlocal Agreement with City of Bremerton for Purchase and Sale of Water and Water Systemsn AssestRESOLUTION NO. O37-L9 A RESOTUTION OF THE C TY OF PORT ORCHARD APPROV NG AN NTERTOCAL AGREEMENT WITH THE CITY OF BREMERTON FOR THE PURCHASE AND SALE OF WATER AND WATER SYSTEMS ASSETS N THE 580 ZONE. WHEREAS, in accordance with Chapter 39.34 RCW, the "lnterlocal Cooperation Act", the City is authorized to contract with other governmental agencies to provide services that the City is authorized to perform; and WHEREAS, Bremerton and Port Orchard each own and operate separate 580 Zone water systems that are contiguous to each other; and WHEREAS, Bremerton and Port Orchard share the use of an existing L6" water transmission main (Transmission Main) and an existing 0.45 MG storage reservoir ("Reservoir") located within the 580 Zone under the terms of an existing lnterlocal agreement; and WHEREAS, Port Orchard currently owns, operates and maintains the 580 Zone Transmission Main, Reservoir, and underlying 4.63-acre property listed under tax parcel number 082301-2-OOL-2O05 ("Property" ); a nd WHEREAS, Port Orchard currently owns, operates and maintains an 8" water distribution main and fire hydrant ("Distribution Main") serving McCormick Village Park within Bremerton Water Service Area, which must be conveyed to Bremerton in accordance with the Kitsap County Coordinated Water System Plan; and WHEREAS, Port Orchard is constructing additional storage within its 580 lone, which will allow for the surplus sale of the above-mentioned Reservoir, Transmission Main, Property, and Distribution Main to Bremerton; and WHEREAS, Bremerton desires to purchase, own, operate, and maintain the City of Port Orchard's existing 580 Zone Reservoir, Transmission Main, Distribution Main, and Property; and WHEREAS, Bremerton currently has an easement, recorded under Auditor's File Number 20100602OOt4, which allows for the future construction of water storage reservoirs on property which is owned by Port Orchard and listed under tax parcel number O723OL-1-006-2003, adjacent to the Property; and WHEREAS, Bremerton desires to purchase Port Orchard's 580 Zone Transmission Main, Reservoir, Property, and Distribution Main through the sale and delivery of water to Port Orchard Resolution No. O37-L9 Page 2 of 3 in the 580 Zone on an interim basis, until system improvements are completed that will allow for the separation of the two systems; and WHEREAS, Bremerton currently sells water to Port Orchard in the 580 Zone, and there is an existing agreement in place that establishes the water volumes and flowrates which apply to the sale of water to Port Orchard; and WHEREAS, PortOrchardownsWell llinthe580Zoneforwhich PortOrchard hassecured Permits to Appropriate Public Waters equal to 750 gallons per minute and is pursuing the development of Well 11 to replace the current shallow Wells L,2, and 3; and WHEREAS, Port Orchard has required McCormick Communities to drill and pump test the future Well L2in the 580 Zone; and WHEREAS, Bremerton and Port Orchard wish to define the terms and conditions by which Port Orchard will purchase water and Bremerton, in turn, will assume ownership, operations, and maintenance of the City of Port Orchard's 580 Zone Reservoir, Transmission Main, Distribution Main, and Property; and WHEREAS, the South Kitsap School District owns real property for the development of a future high school (School Site) which will require substantia! fire flow. This property is listed under tax parcel number 0523010-3-037-2004; and WHEREAS, it is Bremerton and Port Orchard's desire to reduce above average water use in Port Orchard's 580 Zone; and WHEREAS, the City Council finds it in the public interest to authorize the Mayor to execute the proposed lnterlocal Agreement for Purchase and Sale of Assets in the 580 Zone with the City of Bremerton which is attached to this Resolution as Exhibit"L"; now, therefore, THE C TY COUNCIL OF THE CITY OF PORT ORCHARD, WASH NGTON, DOES HEREBY RESOLVE AS FOIIOWS: SECTION 1. Asreement Authorized. The M ayor Pro-Tem is hereby authorized to execute the lnterlocal Agreement for Purchase and Sale of Assets in the 580 Zone with the City of Bremerton in substantially the form attached hereto as Exhibat"L". SECTION 2. Posti ng on We bsite Required. Pursuant to RCW 39.34.040, once this Agreement has been executed by both Port Orchard and Bremerton, the City Clerk is directed to post a copy of this Agreement on the City's website. Resolution No.037-L9 Page 3 of 3 PASSED by the City Council of the City of Port Orchard, SIGNED by the Mayor Pro-Tem and attested by the City Clerk in authentication of such passage this 12th day of Novemb er 2OL9. k Ashby, Mayor Pro-Tem ATTEST: Brandy Ri nearson,MMC, City Clerk RPO ; SEAL a INTERLOCAL AGREEMENT FOR PURCHASE AND SALE OF ASSETS IN THE 580 ZONE This Interlocal Agreement ("Agreement") is entered into by and between the City of Bremerton, a municipal corporation of the first class ("Bremerton"), and the City of Port Orchard, a municipal corporation of the first class ("Port Orchard"). RECITALS WHEREAS, Bremerton and Port Orchard each own and operate separate 580 Zone water systems that are contiguous to each other; and WHEREAS, Bremerton and Port Orchard share the use of an existing 16" water transmission main (Transmission Main) and an existing 0.45 MG storage reservoir ("Reservoir") located within the 580 Zoneunder the terms of an existing interlocal agreement; and WHEREAS, Port Orchard currently owns, operates and maintains the 580 Zone Transmission Main, Reservoir, and underlying4.63-acre property listed under tax parcel number 082301 -2-OOl-2005 ("Property") as shown on Exhibit A; and WHEREAS, Port Orchard currently owns, operates and maintains an 8" water distribution main and fire hydrant ("Distribution Main") serving McCormick Village Park within Bremerton Water Service Area, which must be conveyed to Bremerton in accordance with the Kitsap County Coordinated Water System Plan; and WHEREAS, port Orchard is constructing additional storage within its 580 Zone, which will allow for the surplus sale of the above-mentioned Reservoir, Transmission Main, Property, and Distribution Main to Bremerton; and WHEREAS, Bremerton desires to purchase, own, operate, ffid maintain the City of Port Orchard's existing 580 ZoneReservoir, Transmission Main, Distribution Main, ffid Property; and WHEREAS, Bremerton currently has an easement, recorded under Auditor's File Number 2010060 2ool4, which allows for the future construction of water storage reservoirs on property which is owned by Port Orchard and listed under tax parcel number 072301-l-006-2003, adjacent to the Property, as shown on Exhibit A; and WHEREAS, Bremerton desires to purchase Port Orchard's 580 Zone Transmission Main, Reservoir, property, ana Distribution Main through the sale and delivery of water to Port Orchard in the 580 Zone on an interim basis, until systemlmprovements are completed that will allow for the separation of the two systems; and WHEREAS, Bremerton currently sells water to Port Orchard in the 580 Zone, and there is an existing agreement in place that establishes the water volumes and flowrates which apply to the sale of water to Port Orchard attached as Exhibit B; and Agreemenl of htrchase and Sale of Ass* in the 5E0 Zone Page I of I WHEREAS, Port Orchard owns Well I I in the 580 Zone for which Port Orchard has secured Permits to Appropriate Public Waters equal to 750 gallons per minute and is pursuing the development of Well l l to replace the current shallow Wells 1,2, and 3; and WHEREAS, Port Orchard has required McCormick Communities to drill and pump test the future Well 12 inthe 580 Zone; and WHEREAS, Bremerton and Port Orchard wish to define the terms and conditions by which Port Orchard will purchase water and Bremerton, in turn, will assume ownership, operations, and maintenance of the City of Port Orchard's 580 Zone Reservoir, Transmission Main, Distribution Main, and Property; and WHEREAS, the South Kitsap School District owns real property for the development of a future high school (School Site) which will require substantial fire flow. This property is listed under tax parcel number 0523010-3-037 -2004; and WHEREAS, it is Bremerton and Port Orchard's desire to reduce above average water use in Port Orchard's 580 Zone; NOW, THEREFORE, based upon the above recitals, and in consideration of the mutual covenants contained herein, the parties hereby warrant, covenant, and agree as follows: AGREEMENT 1. Existing and Future Agreements. 1.1 Existine 580 Zone Agreement. The existing Interlocal Agreement for Cooperative Water System Development in the Port Orchard 580 ZonelBremerton 580 Zone date December 26,2001is hereby terminated. (See Exhibit B) 1.2 Future Emergencv Intertie. Port Orchard and Bremerton agree to consider an emergency intertie agreement at the conclusion of this Agreement. 2. Assets Purchased and Liabilities Assumed. 2.1 Assets Purchased. On the terms and conditions hereinafter set forth, Bremerton agrees to purchase from Port Orchard, ffid Port Orchard agrees to sell to Bremerton, all of the assets of Port Orchard relating to the existing 0.45 MG Reservoir; existing 16-inch Transmission Main; existing 8" Distribution Main, Fire Hydrant and Meters in McCormick Village Park; and Tar Parcel 082301 -2-001-2005 (the "Purchased Assett"), as listed in Exhibit C, upon completion and agreement of the below: a- A new Port Orchard 580 Zone water storage reservoir will be completed on tax parcel 072301-l-006-2003 by April 30,2021. Agreenunt of Pztchw ond fuIe of Asets in lhe SEL Zone Page 2 of I b. Port Orchard will continue the active operation and maintenance of the existing Reservoir; Transmission Main; Distribution Main; and Property including all scheduled maintenance and inspections until the transfer of ownership to Bremerton is complete. c. Bremerton will vacate the Water Reservoir Easement on tax parcel 072301-l- 006-2003 and recorded under auditors file number 201006020014, attached in Exhibit A. d. Port Orchard will modiff the existing drain piping for the Reservoir to allow shared use of the drainage pipe and pond, if necessary, as shown in Exhibit A. e. Port Orchard will grant to Bremerton an easement for the 8" Distribution Main, Fire Hydrant and three Water Meters serving McCormick Village Park. 2.2 These improvements allow the complete separation of the two water systems with the exception of any service connection or emergency intertie allowed by the two parties. The sale of the Purchased Assets shall be by a Deed of Conveyance in the form of Exhibit D attached hereto and no warranty as to the condition of the Purchased Assets shall be provided. The real estate associated with the purchased assets shall be conveyed by Quit Claim Deed in the form of Exhibit E attached hereto. 2.3 Asugunaeqt of Contract Riehts. Contract rights and licenses relating to the Purchased Assets shall be assigned to Bremerton pursuant to such instruments of assignment as are mutually acceptable to and agreed by Bremerton and Port Orchard and their respective legal counsel. Port Orchard shall obtain any required consents or waivers with respect to such assignments at or prior to Closing. 3. Purchase Price. The total purchase price for Purchased Assets is established as $804,000 and will be paid on the basis of the value of water sold to Port Orchard over an extended period of time as outlined below: 3.1 Purchased Assets Value. The value of the Reservoir and Property tax parcel #082301-2-001 -2005 (including appurtenances) is established at $434,000. 3.2 Purchased Asset Value. The total length of the transmission main is 6,900 feet. The value of the asset is established at $345,000. 3.3 Purchased Asset Value. The value of the Distribution Main, Fire Hydrant and three Water Meters serving McCormick Village Park is established at $25,000. The total length of the distribution main is approximately 330 feet. An easement shall be provided to Bremerton. Agreement of huchose and Sale of Assets in the 580 Zone Page j of E 3.4 Water Value. The value of the water supplied to the Port Orchard 580 Zone by Bremerton shall be calculated at 95oh of Bremerton's most current published outside retail water service rates with no monthly service charge. 4. Rate of Water Supplied to Port Orchard by Bremerton. Bremerton agrees that water supplied to Port Orchard between the effective date of this Agreement andthe completionof the newPort Orchard 580 Zone Reservoir, Well 11, and Well l2 improvements (the date on which the last component is completed or the expiration of the Term of this Agreement pursuant to Section l0 below, whichever occurs first) shall be 750 Gallons Per Minute (GPM) as the marimum rate of supply required to supplement and deliver Port Orchard's Maximum Day Demand. This commitment shall not survive the Term of this Agreement. Port Orchard and Bremerton agree to cooperatively provide adequate fire flow to the School Site. Bremerton agrees to collaborate with Port Orchard when determining the fire flow capacity available from both utilities. Any infrastructure required to provide adequate fire protection will be determined by both Bremerton and Port Orchard. 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 to 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 within its own system. 6. Port Orchard Commitment for Source and Storage. Port Orchard agrees to ensure that the new Port Orchard 580 Zone Reservoir is completed and operational by April 30,2021. Port Orchard agrees to prepare complete bid ready PS&E forthe Well 11 Project in 2020 and pursue construction in202l. Port Orchard has secured a commitment from McCormick Communities for the construction of Well 12. McCormick Village Splash Pad. Port Orchard agrees to retrofit the Splash Pad at McCormick Village Park with a recirculating water supply system by April 30, 2021. McCormick Village Park. Bremerton agrees not to charge Port Orchard for water used at McCormick Village Park until May 1,2021 at which time Bremerton will assume ownership of any Water Meters serving said Park. Port Orchard Water Proqram. Port Orchard will establish and 6.1 6.2 6.3 Agreerent of hnr;hosc and Sole of As* in the 5E0 Zone Page I of I implement a Water Conservation Program designed for the users of the McCormick Woods Water System. The goal of this program is to reduce domestic water consumption in the Port Orchard 580 Zone. Conservation efforts by Port Orchard will be enumerated in the annual Water Use Efficiency report to the Office of Drinking Water and is available online through Sentry Internet on the Office of Drinking Water website. 6.4 Drought Conditions. During drought conditions or other supply shortages suffered by Bremerton for any reason, it is agreed that Port Orchard customers supplied with water will comply with similar restrictions and conservation measures required or requested of Bremerton customers according to Bremerton's Water Shortage Contingency Plan. 6.5 Alternative Sources. Port Orchard agrees to actively pursue the development of alternative sources for the 580 Zone. Projects for consideration to accomplish this include installing an intertie between Port Orchard's 390 and 580 Zones and development of an alternative and/or additional well site. 7. Accounting. 7.1 Accountinq for Water Su DD lied Port Orchard in the 580 Zone. Bremerton will provide a quarterly accounting of Port Orchard's water consumption in the 580 Zone and billing under the existing agreements located in Exhibit B but defer any payment by Port Orchard until the purchase price of the Reservoir, Property, Distribution Main, and Transmission Main has been satisfied in accordance with this Agreement. The quantity of water delivered to Port Orchard shall be determined by Bremerton by deducting the volume measured by the three lO-inch master meters (Account numbers 4647120, 4647110, 4647090) from the total volume delivered by P*np Station 2,A. as measured by the pump station mag meter (Account number 4626960). 7.2 Value of Water Supplied to Port Orchard. Bremerton will provide an accounting at the end of each year that identifies the value of water consumed by Port Orchard which has been applied to the amount owed by Bremerton. 8. Taxes. 8.1 Ta<es Resulting from Sale. To the extent applicable to this transaction, Bremerton shall be responsible for and shall pay at closing all local and state use or excise ta<es that are applicable on the sale of the Purchased Assets to Bremerton, if any. Bremerton and Port Orchard agree to split equally the excise tares due on the real property conveyed by Port Orchard to Bremerton. 8.2 Prior Tores Owing. Port Orchard shall be responsible for all personal property tares, B&O ta>res, and other tares owing in connection with the conduct of Port Orchard's business prior to Closing. Agreemcnl of h.rthase ond Sole of Assels in lhe 5E0 Zone Page 5 of I 9. Closing Date and Delivery Date of the Assets. The Closing shall be scheduled at such time as mutually agreed that the physical separation of the two water systems is possible without a detrimental effect on either system. At the Closing, Port Orchard shall deliver to Bremerton the Deed of Conveyance in the form attached hereto as Exhibit D and shall convey the real estate by Quit Claim deed in the form attached hereto as Exhibit E. 10. Term. It is understood by both parties that this Agreement should remain in effect until such time that Port Orchard has acquired adequate source to provide water to Port Orchard's 580 Zone. The term of this Agreement shall run from the date of this Agreement until December 3l ,2024. Upon written agreement, the term of this Agreement may be extended by the Mayor of each of the parties hereto, for successive one-year terms with the same terms and conditions. 11. Notices. All notices, requests, demands and other communications hereunder shall be in writing and shall be deemed to have been duly given if delivered or if mailed, by United States certified or registered mail, postage prepaid, to the parties or their assignees at the following addresses (or at such other single address as shall be given in writing by one party to the other): Notice to Bremerton shall be sent to: City of Bremerton Attn: Public Works & Utilities Director 100 Oyster Bay Avenue North Bremerton, WA 98312 Notice to Port Orchard shall be sent to: City of Port Orchard Athr: Public Works Director 216 Prospect Street Port Orchard, WA 98366 12. Severability. If any portion of the Agreement or its application is held invalid, the remainder of the Agreement or the application of the remainder of this Agreement shall not be affected. 13. Modification. This Agreement represents the entire agreement between the parties. No change, Agreenunl of htrthasc and Sole of Assar in the 5E0 Zone Page 6 of I 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. 14. Benefit. This Agreement shall be binding upon, and inure to the benefit of, the respective legal representatives, beneficiaries, successors and assigns of Port Orchard and Bremerton. Without limiting the foregoing, Port Orchard's rights hereunder may be enforced by it in its own n€rme. In the event that Bremerton causes the assets and business of Port Orchard to be transferred to some other corporation, the rights of Bremerton and of Port Orchard hereunder may be enforced by such other corporation in its own name. 15. Dispute Resolution. Any claim by either party against the other related to this Agreement shall be filed in Kitsap Counfy Superior Court. Each party is responsible for its own attorney's fees and litigation costs. 16. Indemnification. Each pafty shall defend, indemniff and hold the other party, its officers, officials, employees, agents and volunteers harmless from any and all claims, injuries, damages, losses or suits, including all legal costs and attomey fees, arising out of or in connection with its performance of this Agreement. In cases of concurent fault of the City and County, the provision requiring each party to defend, indemnifu and hold harmless the other party are valid and enforceable only to the extent of the fault of the respective party. 17. Entire Agreement. This Agreement (including all exhibits and schedules attached hereto and all documents delivered as provided for herein) supersedes all oral staternents and representations and contains the entire agreement among the parties hereto with respect to the subject matter hereof and the transactions contemplated hereby. 18. Effective Date. This Agreement shall becorne effective upon execution by both parties. IN WITNESS WHEREOF, the parties below have duly executed this Agreement. CITY OF BREMERTON CITY OF PORT ORCHARI) w {or By' its: Mayor 'By its: : Robert Putaansuu Mayor Agtcencnl of htrrlior d Sde dAc*f i, te 5e0 Zoru Pagc 7 af$ ))*o- 3Date:I City Date: A form A.L City Attorney Attest: Approved as to form: Robertson Attorney for Port Orchard Agndud ef hlrcke d Sd. {Asfr h tu fl Zu Pege t of t ooC! OEzo gJ-. C)o EEfo noO+o5z,? JNul--(Jo cE q?<:;'o-6 o F>6E8GOCIFE9 RBOs(J@ a 8g dc =u _q EE )e =a =J,Fg o t^ 4=PAe-o=a=AE E2) gEE EEUgEe- HeEplg b=E ^& =ryEE E? E3EASE ET FU i Eoc! o o_ ooo o b tl @z =do UF o dn o q, o, GI (J =o- E'E(g LL!- Gt OL ='6uJ6ooE, EoEq, Eq, .D EXHIBIT A BREMERTON RESERVOIR AND LAND PURCHASE A - I of 2Exhibit A n Reservoir ond Land Purchase I*= =lgE BEga EE a i I a I ,4 HE dg)d Fe z isi:od Lar o6er Cet9 I EXHIBIT B INTERLOCAL AGREEMENT FOR COOPERATIVE WATER SYSTEM DEVELOPMENT IN THE PORT ORCHARD 580 ZONE/BREMERTON 580 ZONE INCLUDING ADDENDUM NO. I TO INTERLOCAL AGREEMENT Exhibit B - tfor Cooperative Water System Development in the Port Orchard 580 Zon 5E0 Zone B - I of 19 NTERLOCAL AGRE T for Cooperati're ater Syste evelop ent in the ott orcharrl 580 one / re erton sBO one THIS AGREEMENT is r oI 01, by and between the ClTy oF BF n, to 6s Bremerton, and the Clfi OF P( herelnafter referred to as Port Orchard. FAGTUAL BACKGROUITID: 1. Porl Orchard'g (i80 zone water system and the Bremerton'E SB0 zone water system abut at Old Cllfton Road. 2- RrliahlllllrirrflEfi@ - Port Orchard and Bremertofi desire to provlde lhe highest reliabtllty of servioe lr: their cuslomers at reasonable cost, The Citiee recognize that water resources are finlte and wlnerable and that prudent use and rnanagernent of lhesn resources ,':en bc fscilitoted by ooopor'allurr Bmong water uttllties. The Clties agree that . cooperation in the constructlon. operatlon and management of the water systerns that ierve the' Port Orchard 580 and Bremerton 5S0 zonee wlll: . mprove overall syr;tem rellablllty,r Enhance the manrryeability of lhe systerns,r Provlde opportunltles for conJunctlve uso of watersupplles,r pelay the need to develop new wat€r 6ourc6g. andr Result ln cost efficlencies for both systerns 3. ndnrrql/ph+cing il!--Bternarlnn Jnfrashrcl!&r - Currently, Bremerton has no slgnlficant system Improventents ln lts 580 zone. To serue lhE S80 ione, Bremeilon must construct new pumprng, storage, lran slorage and transrnlsslon malns in I interlm hasle. The port Orchan:l f80 an 4. . r Bremerlon requlres a site lor a future reseruo r I Orchard owns a site al the regional topographlc hlghpoint. The site b large enough to itcoommodate a future Bremerton reservolr. . ls too . i create of the !3B0.te1l,€cc prge I of0.fGG fnc. Osceobcri?.2@t Page B2 of 19 service to lhis area will also require a new hircost effective to coordinate {iervice to these gh pressure zone and pump station. lt is logical and adjacent high areas so that only a singte n'ew highpressure zone and purnp statlon is reguired. upply to provide to the City of port Orchard on a 7' RCW 39.34 arrd 35.92.200 empower Brernerton and Port Orchsrd to €nterinfo acooperative egreemant for prorddtng outslde witer seruice. IT IS AGREED: M DEVELOPIIdENT P[AN: Port Orchard and lallelion, operatlon and management of maJor serve the Port Orchard SB0 zone, lhE Brernerton erton 660 zone, as pulllned in the attached Ohe Cooperatlve plan). Tha Cooperative plan, TlJt?3frfJ:d uPon adoPrron or 2. sERvlCE AREII: Nothlng ln this agreement is to be conetrued as changing oraltering the waterservice area houndarleJtfrat exist is of the date of thfs agieement, 3. RESALE; Wate,r supplled under this agreernent shall not be resold to thlrd party utilities without the priorwritten r.:ons€ot of lhe supplyinjuilllty. 4. WATER SUPPL'f: es to supply water for domesilc use and fireflow pressure zone vla lts 16 Inch water maln in Old Bremerton watermaln ln Old Clifton Road (or lts ; fil'ff: ffi i#f#Tff , ;[3 3iil?::ix^g',ff.Hat a rninlmurn of gradlent of 640 at the connection. Brernorton Port orchard, vla its 12 tnch carnpus parkway watermaln (old to replenish the water supplled by port orchard to the 4zct0 Fe supptied by Bremedon to Port Orchard wlll be delivered at a rninlmurn hydraulb gradient of580. The votume of waterr supplied by Port Orchard to the 4zl}Feigley properiy shall oe replenished by Bremerton on e conlinuous basls. or as otherulse agreeC tb. l^l17qc ' Upon lmpteme,ntation of the 660 zone, Port Orchard agrees to supply water for oorneslic use and lirellotv lo Bremerton's 660 servi@ area, vla the 660 pump stetion. Firellow ratesfooturneE anrt domesttc/fireflow service pressures supplied by'eori Orchard will- be agreed lo and approved by both Port Orchard ano' gremlfion prhr to implementation of the 66(, zbha Br merton agre€s to supply water to iort Orcliard, viathe con nne.udn, as appllcabd, to replenlghthe Por. ortlon olthe obb seMce arei. Thewat met Orchard will be dellvered at a mlntmurn hydraullc r955ti0.1Bi3.doa ?Ec 2 of g {GG lnc. OcqoberiZ. ?OOr Page &3 of 19 gradient of 580. Ther volume of water supplied by Port Orchard to Bremerton's 660 service area shallbe repleniirhed by Bremerton on a continuous besls, or as otherwlse agreed lo. Fireflonurnct.EnrergrlneyrslJpfr$( - Port Orchard agregs to supply the Bremerton 680 zone with fireflow, via tl',e Old Cliflon Road connectlon or reservoir slte connecllon, es appllcable, until such lime as a separate Bremerton storage res€Noir is conslructed and operatlonal. Fireflorl will be provided at a maxlmum nate of 1,700 gpm for a maximum perlod of 3 hours at e rninlmum gradlent of 540 at the connectlon. lf either Bremerton or Port Orchard has a need for an emergency water supply (other than fireflow), It shall notlfir the other utility of thls and of lhe volume requlred prtor to actlvating the cpnnection betwe,+n the two systems. Notiflcation of thls need may be verbal, but lt will be followed up wlt{rln 10 wort<lng days by written confirmalion. The emergency supply of water between eacl system shall rrot be unreasonabty be denied by elther parly. The volume of watsr rrupplled for tireflow or emergency suppty shall be replenished by the receivlng utlllly to the .tupplylng utility wlthin 24 hours afier lhe emergency, or as otheMtse agreed to. Frevqednn Llniolpn$ti - Beglnning,oo January l, 2904 (or at a later time agreed by thu parties, Bremerton agraes to supply a unlntErruptlble water supPly to the Port Orchard 5t)0 Zone of up to a rnaxlmum of 2gS ac-f,. on a yearly basls, at a rnaxlmum rale not to ,lrxceed 360 gpm, vla the OId Ctlfton Road conneolion or reservoir site connectlon, as apprllcable. This supply is ln addition to waler supplled by Bremerton to Port orchard for serrdce of the 4200 Felgley properly, the Bremerlon 660 zone, emergency purposes or for service of other portlons of the Brernerton servlce area that may be tncluded In thlg agreernent (and seryed vla the Port Orchard system) ln lhe future. The water supplled by Bremerton to Port Orchard wll be dellverad al a mlnimum hydraullc gradient of 580. Port ri)rchard egrees to compensate Bremerton for thls long terrn waler supply in accordance wlth the terms of lhls agreement. The water supplied by Bremerton lo Port Orchard shall be llrm arrd unlnterruptible untll such future lirne as Po'l Orch ard may secure new water dghts to replace the Bremerlon supply. Port Orchard agrees to make dlligent, continuoug, best eflorts to ac,gulre weter rights to replace the Blemeflon supply. Nothlrg ln lhlE AEreement sha I abrogate Port Orcherd's obllgatlon to provide lts water supply needs through its own oourcee at the ;i',':"':.iil,1l,ir'f i;"fl:T"#fr iffi :lli#,L"il.-Fl?"HH.T,iLl,,'^x'flhll..i Port Orchard ls a whole:rale customer of the City of Eremerton and wtll rnaka no clalrn to any Bremerlon water rigl'rt, 5. WATER OUALfi'Y: Brernerton agrees to dellver weter to Port Orchard at the punty and quallty ln effect for re*ldential customers of Brernerlon. Port Orchard'agrees to cleliver urter to Bremerton at the purltSr and quallty in effect for resldentlal customsrB of Port Orchard, except lhat waterdeflvered by Prrl Orchardlo Bremertonshall not.be fluorfdaled. ln the eventof water quallty problems ln either uy$tern, Bremerton and Port Orchard agree lo rirrork cooperalively and dillgently lo deterrnine lha source/location of the problem and @rrect lt. Regardless of the source/locatlon of uater quallty problerns, each party agrees lo assume the cosl of corrac'llng water quallty probhrns ln [s own system. 6. COIIIPENSATIONI For purpos€s of lhls agreement the cost of water ehall be tlxed at nlnety-flve parcent (95%) of Elremerton'g County retai rals. ln catculattng costs. lhe Master o95Etl0.t6l3.doc pege t 016 HGG tna gecrmboriZ zOOr Page B-4 of 19 Connection beh,rreen the Porl Orchard and Bremerton systems shall be assurned to ba an I inch meter (regardless of actual rn cfions between the systems, the meter size.for billing p.urposes shalt I waler provided from or to either utility will be charged at this cost, Payment for supplied water shail b6 made rnonthly by the receivinltr ulility, upon recelpt of an involceirom the .upbiving utility. Any and ell fixed costri for a meter conneciion shatl cease at such llme that the receMng utllity notlfies lhe supplylng utllity that the connectlon ls no tonger necessary for normal domestlI supply' Afler thls notlficatloll, if the connection rernains ln place for purpos€s of emergency gupply, it wlll not be subject to the fixed cost porllon of a rate ilructure, although any wateiuseit for ernergenoy purposes will bg subJect to tho agreed upon unlt rate forwater usl. Thls agreement ls basrld on the Glty of Bremerton's current rate structure, as of the datE of thls agreemenl. This rate ritructurs conslsts of two parts: a fixed cost (based on moter she) ' and a variable cost (based orr the ac-tual votume of water purchased). lt.ls acknowledged that changes to thls rate structure ma parli* that any further rate stnlclu will accorrrrnodate lhe fast that lheof ERU's and that the estlmarted volurne of water ln each rat6 tl€rr. 7. WATER CONSIIiRVATION: Port Orchard has begun to prepare and lrnplement a watei conservatlon plan for tlrE Port Orohard 580 zone- Thdeoat 6f.thts plan is io reduce dornestic water corsumption lrr the Port Orchard 580 zone. Upon execution of this agreemenl, Port Orchard wlll move to complele and Implement lhe conservation plan. During drought tronditlons or other supply shortages suffered by Bremerlon for any reason, it is agreed that Port O'chard customers ustng Bremerlon supplied waterwill comppw[th similar resklctions and consen,allon measures requl-red or requested of Bremerton cudtomers according to Brernerlon's Water Consertatlon Plan. 8. NOTICES: All nolices and other writlen cornmunicatlons required by lhls Agreement shall be ln wrltlng r shall be deemed to heva been 1of malling ff maited by tirst ctasi stated below, or al such address Dlreclor of Publlc Works & UtillUes City of Brernedon 3027 Olyrnpus Drive Bremerton, WA 9S3104799 City Englneer City of Port Orchard 216 Prospect Slreet Port Orchard, WA 9E366 9. SEVERAE LITY: t ls the intent of the parties that lf any provlston of thls contract or ils dlction to be illegal, Invalid, or vold, the valtdfi of pplicatbn to olher entilles, or clrcumstances shall Continue in full force and effect. The nlghts and d enforced as il lhe contract dld not contain lhe cornpetent Jurrsdrcuon ro be subr;ranuve and ro"i,{3:iiTr:lH;gllitffl [#'li'i1?ir','iffi unworkable and norrfeaslble, lt b fotnd to serlously affect the conslderation and/or isln-separabty connected to the remalnder of the ontnact the enfire conlrac{ shall be null and void. o.9-5S6Grad.doc pege { oltHGG lnc. oecember it.Nr Page B5 of 19 10. trlODlFICAT|Ol'l: This Agreeme 11. BENEFITs: Tt.ris Agreement is entered lnto for the benefit of the partie$ to this Agreement only ,nA sfraff conf,:rr no-benefits, dtrect or implied' on any thlrd persOns' The rights grarrted by thls Agreernent may n9!.be assigned without the written consent of the Mayor of the crty of Biemerton and inl Mrv"r of the city of Porl orchard' 12. ARBITRAT|ONI Dlsputes under thts Agreement shall be settled through hinding arbltration and the parties agre$ and silputat" pursuant-to rtJlan 8.1 that lhe Mandatory Arbilration nufiJtor Superior bourt stri'tt Gpply, exdept $action Vlll, Trial Ba Novo' 13. Consent: Whetlaver it is provld approval of or approval to respond approval. T 14. Emergoncy sltrrstlons: Nothtng ln this ronqd shall be deemed to preclude either party from taklng neces*rry-raion tq rilainlain or restore water supply In emergency situations ano surtra"iiin "nan rrot irc deerned a violation of this contract. greement of Joint venture as to make elther Party Neither Party ls en agent y fepresentallve capacity whatsoever. 16- Cornplete Agreernent: Thls contract represints the entire agreement between the parttas hereto ioncerning uiii-=,iL:ect rnattei r,Lieoi. Thls conlract may not be amended except as provided hereln. 1?, Venue, Jurisdlclton and speclfic Performanee: ln the event of litlgatlon between the parrte.s, venue "no jirriiorciion .l',?ll lle with the Kitsap county.s..upgrior court of'the state of washird;. 'ini p.rtrei srr"rr be entliled to speclfic perloimance of lhe terms hereof' {8. Default: ln the evrrnt of default party s tc default ent to cure t ol lo cure the delault wlthln nlnety (90) days. lf su ninety (90) day period. the nonde:laultlng P_a.ry the ninity lsOi day perlod be granlrad an additto lg.TheUmeperiods'manceunderany provisrons oI ur, axtenaeo for a re when eilher part/s performence 6;r.e i;',tli,- due to , tockouts' strit<es' o955€0.lB43.ttec Pngo O el6 HG€ lnq, Decsmbar t7.2001 Page &6 of 19 embargoes, ects of God, wer and civll disobedience. lf thls provision is invoked, tha lnvoklng party igre.s to irnrnediately take atl reasOnable steps to alteviate, cure, rnlnlmlze or avoid the cause preventing such perfonrmnco, et lts sole expense. 20. Successorst Thls contract shal tnure to the benefit of and be blnding up0n lhe parties and thelr successors and essigns. SS WHERI::OF the partlEg hereto exeoute this Agreernenl thls a2& day ol 20a,*. CIW OF BREMERTON CIW OF PORT ORCI.IARD BY: ffiF-.-Mayor ATTEST;ATTEST: Clerk AP Dlrector of I ROVAL: UtiliHes AP o9-5!l6Gltl43.doc pago 6 of 0 HGG lne. Decembcr1t.Nl Page B7 of 19 BY: /Yd* t Port Orchard 580 Zone I re erton 580 Zone P an for Cooperat ve ater yste eve o e t This Docurnent provides a plan for cooperalive water syslem development,between the City of port Orchard and the City of Bremeilon. The Cooperative Water System Development enn 1"Tfre Gooperative Plan") outlined betow describes phased water improvernents in the Pofl Orchard 580 and Brernerton 580 zones which witl provlde safe, reliable seryice in an efflcient and cost effective manner. Cooperation between tha City of Brarnerton and the City of Port Orchard in the development of their adiacent water systems witlresult in the followlng benefits: A. Retiabilitfand Efiipiency of Se-rylce - Waler rssources are linite and vulnerable and ne pruOent- uie and management of these resources can be facilitated by cooperation among water utililies. Gooperation in the construclion, operatlon and management ol the water system I that serue the Port Orchard 580 and Brerneilon 580 zones will: B. c. D. o95560-l842doc Pags I otll Decernbcr l7.20Ol Page B8 of 19 o lmprove overall system reliability, . Enhance the manageability ol the systems' . Provide opportunlties tor conjunctive use of water supplles, . Willdelay the need to devolop new water sources, and r Result ln cost etficlencies for both systems ,;.::"'#\"ffTI%J1,[: BgB,' transmlssion and distributlon facilities. Port Orchard has existing slorage and lransmission mains ln its 580 zone. These faclllties have oxcess capacity on an lnterim basls. The Port Orchard SB0 and Bremerton 580 zon€s can be made hydraulically consistent so that the Port Orchard system can be utilized by Bremerton. Orchard wlll allow phaslng of Bremerton system capital expenditures and reducing the overallsystem cost' Bremerton requires a slte for a ard owns a site at the regional topographic high point. The site ls large enough to accommodate a future Bremerton reseryolr. new hlgh pressure zone and pump station. lt is logical and cosl eflective lo coordinate seruice lo these adjacent high areas so that only a single new high pressure zone and pump station is required. SatlsfAction of, Port Orchard Water Sotifce Requirer.4ents - Port Orchard requires an additional source of supply to satisfy its 2017 systern growth projections. Porl Orchard has appllcations pending lor additional water rights, but the ultlmate dlsposltion of lhese applications is uncerlain. Bremerton has available source of supply to provide to lhe Cig of Port Orchard on a long terrn, uninlerruptible basis, The Cooperative Plan will be implemented in four phases, as descdbed below, Attached is a sumrnary chart which provides a quick one page synopsis of the main points of The Cooperalive Plan. Also attached Is a map of The Cooperative Plan area (Figure 1) wilh key landmarks noted. For purpose of thls Cooperalive Plan, a Port Orchard 580 zone ERU connection is delined as a single family residential conneclion or, lf other than single family, a connection whlch has an average daily demand of 290 gpd and a ma<lmum daily demand of 650 gpd, and a Bremerlon 580 zone ERU connection is defined as a slngle family residential connectlon or, if other than slngle tamily, a conneclion which has an average dally dernand o1202 gpd and a maxlrnum daily - demand of 392 gpd. Phase 1 Tefm: Phase 1 exlends frorn the present through 923 Port Orchard ERU connections in the Port Orchard 580 Zone (approximately year 200q q through 1,260 Brernerton ERU connecllons, ln the Bremerton 580 Zone, whlchever occurs flrst. During Phase 1 the 4200 Feigley property wilt be served by Port Orchard wlth water replenished by Bremerlon, Phase I of the Northwest Corporate Gampus wlll be sorued by the Bremerton systern, and the McCormlck Woods PUD and Mc0ormick West urill be served by the Porl Orchard syslem. Phase I Water Qystem PIan: ln Phase 1, Bremerton will construct new Pump Station 2A, a new 12 inch lransrnission rnain in Campus Parlo,vay (from pLrmp station 2A lo Old Clifton Road) and a new connection between the Port Orchard and Brernerton systems at Old Clifton Road (termed the Old Clifton Boad conneclion). Port Orchard wil provide up lo 1,700 gpm of emergency fireflow for up lo 3 hours to the Bremerton system, vi,a the new Old Clllton Road connectlon. This wil deter the need for Bremerton to construct a separate new storage reseruoir ln the 580 zone and a separate new water main in Old Clitton Road. Water will also be supplied lrom Bremerlon lo Port Orchard, via this connection. in the event of a supply emergency in the Port Orchard system. The 4200 Felgley property ls wilhin the Brernerton seruice area and its internal water system will be conshucled, owned and operated by Bremerton. ln Phase l, the 4200 Felgley project will connecl to, and be supplied urater from, the existing Port Orchard 16 inch water main o9556o-1 842.d* Page 2 of r I Decembcr l?.20(J.1 E Page B-9 of 19 I in old clifton Road. This will defer the need for Bremerton to construct a separale n€w water main in Old Clifton Fload. Bremerlon will supply water to the Port Orchard system, via the Old Glifton Road connection, to replenish the water supplied by Port Orchard to me 42Oo Felgley proper$' l?tt orchard and Bremerton will also replenisn .nd/o, reirnburse each other for water supplled {or emergency and/or firellow purposes. Specific responslbilitles in Phase 1 are: Consistgnt Pressure- QFdient ' A con and Port Orchard systems ls required to fac Phase 1, Bremerton will adiust ils'adiacenl wa consistent with the hydraulic gradient in the Port hydraulic gradient rnay requile revisions to the These revlslons are the responsibility ol Breme lo accompllsh the change in hydraulic gradient s and be comPleted hY January 1 ,2002. completed and operational by July 1 ,2042' conslrucl, oPerate and maintai station 2A lo the old Cliflon Road conneclion wlth the exlsting Porl aln' This transmission main shall be completed and operationalbyJuly 1 ,2002- Bremerton will consttuct a connection (including meter) between the 12 lnch transmisslon main in Campus Partovay and the existing Port Orcha rd 16 inch water main in old Cllfton Hoad (Old Clitton Road conneclion). The mete r shatl be caPable of measuring the llow of water both frorn Bremerton to Port Orchard and from Port Orchard to Bremerton. The sPe cilic design and method of operation of the connecliorr/meter shall be approved by both Port Orcha rd and Bremedon Prior to installation.Construction and maintena nce of the connectloilmeter ls the responsibilitY of Bremerton but the cost of construction, operatlon and maintenance will bs shared equallY bY both Port orchard and Bremerton. The connection shall be completed and operallonal by July 1 ,2002' o95560-l842.doc ru13 of rl December 17.zdll Port Orchard and Bremerton shall work of Heatth and Washlngton State Departmen amendrnents to water syslem at lts own expe of the connection these Orchard and Eremerton. Fireflow for the lrtorthwest Corporate Campus ls repo urs. Port orchard has approxlmately 306'000 Page &10 of 19 gallons of available storage in its existing reservoir which allows Port Orchard to provide up to I,zoo gprn of lirellow for -g hours lo the Bremerton system (at a minimum hydraulic gradient of S40). lilim Poil Orchard supplying 1,700 gpm fireflow, Bremerton need not supply any lireflow directly frorn Pump Station 'dA. lt ttre lirellow requirement at Northwest Corporate Campus increales above t,zoo gpm due lo unforeseen clrcumstances, Brernerton will supply the lireflow amount above 1,700 gpm. Port Orchard's supply ol 1,700 gpm lor 3 hours for firellow is contingent on lhe anppval of the local lire dlstrict and tire Washlngton State Department of Health to allow standby and firellow storage to utilize the sarne volume (in the Port Orchard 580 reservoir). Port Orchard and Bremerton willwork together to secure these approvals. Seruice to 4?00 Fqlgley Propery - Bremefton wlll construct a connection (including meter) between the 4200 Feigley water system and th Clifton Road (Felgley connection). The meter lrom the Port Orchard system to the 4200 Fel operation of tha connection/meter shall be app installation. Gonstruclion, operation, maintena /meter ls the responslbllity ol Brernerton. will create a 660 pressure zono by designlng, constr pump station at the 580 reservolr site. The 660 pump ted trc servlce area in both Port Orchard and bremerton. The 660 pump shrlon will be designed to supply domestic demands and flreflow, in accordance with appit .Ut. state regulalions. The 660 pump station wlll be equipped with a standby power generator sutflclent to maintain outage, in accordance wlth applicable state regul station, and implernentation of the 660 zone, Bremerton and Poft Orchard. Design of the 6 number of connections to be serued and requir and Bremerton prior to lmplementatlon. o95560-1842.d* Pa& 4 d t r December l7.2OOl The cost of deslgn and conslruclion of the 660 pump station will be shared by Bremerton and port Orchard on a iro.r*a basls, based on the total number of ERU connections wlthln lhe 660 zone. Distribution rnatns wlthin the 060 zone will generally be the individual responsibility of Pot! Orchard and Bremerton, depending on which seMce area they serue. The cost of shared distribution lacilittes in the 660 zone] ff any, will be shared by Bremerton and Port orchard on a pro-rata basls based on the totalnumber oi ERU connections serued by the facllity. Water supplied from the 660 pump slation to the Bremeflon seruice area wlll be metered. The speclllc desidn and melhod ol'op.rrtion of the connectlon/meler shal! be approved by both port Orchard and" Bremerton prior to lnstallation. Construction, operatlon, malntenance and all assoclated cosls of this .onne.tiorr/meter ts the responsibility of I remerton. Bremerton will supply water to the porl Orchard system, via the Old Clifton Road connection, to replenlsh the walor supplied by port Orchard to ine Brernerton servhe area within the 660 zone, including domestic, fireflow and emergency supply. Page &11 of 19 Phase 2 Term: phase 2 extends trom 923 port orchard ERU connections in the Port Orchard 580 Zone (approxirnately year 2004) through 1,500 Port orchard ERU connections (approximately year zool) or through g,gso Bremert-on EBU connections in the Brernefion 580 Zone, whichevor occurs lirst. Phage 2 Water Qystemflan: ln Phase 2, Brernerton will provide a lon Orchard system of up to 285 ac.-fl. on a yearly This supply ls in addition to water supplied by Feigley property, lhe 660 zono or for emergen by upgrading the capaclty ol Bremerton Pump ln Phase 2, Port lor up to 3 hours to the Clifton road connection, Feigley connection, defe 2 waler will atso be sup ms, via the old clifton Road connection, ln the event ol a water supply emergency in either system' Specific responsibilities during Phase 2 are: Brernenon pump Station,2A. ln phase 2, Bremerton will upgrade th9 capacity of Pump starion 2A roffipprv or a maximu, "::J3,,r#H","H["[ffH1H11 n capacity upgrades will be cornpleted t, ln wrlting, that lhe source be made of an additional 350 gPm to mission malns " in Campus Port Orchard. However, nimize lhe need for lransmisslon main upgrades sible, including utilizing distribution malns as p 2 o Bremerton lo Port Orchard for service of the 4 pulposes. The water supplied by Bremerton i'rycirauli,c gradient of 580 (at the 580 reservoir)' o8556o-l842.doc Page 5 of I I December 17.2@l Page 812 of 19 The water supplied by Bremerton to Port Orchard shall be firm and uninterruptible unlil such luture lime as Port Orchard may secure new water rlghts to replace lhe Bremedon 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 obligatlon to provide its water supply needs through ils own sources at the earliest possible date, Bremerton agrees that If new water rights are not secured, the water supplied by Bremerton will continue indelinilely. For purposes of this Agreernent Port Orchard is a wholesale customer ol lhe City ol Brernerton and will rnake no clairn lo any Bremerton water rtght, Bremerton witl coordinate lts operation and maintenance of pump station 2A so lhat interruplions, if any, [n water supplied to Port Orchard occur during low water use periods. Begullalgry Approvals . Porl Orchard and Bremerton shall work together to secure Washington Slate Department of Health and Washington State Oepartment of Ecology approval of Bremeflon's supply to Port Orchard, If amendmenls to the water system ptan documents are required these shall be completed by each system at their own expens€. ll additional speciflc studies/designs are required to secure approval these shall be cornpleted as agreed to and tho cost shared equally by both Port Orchard and Bremerton. Phase 3 Term: Phase 3 extends from 1,500 Port Orchard EHU connec'tions in the Port Orchard 580 Zone (approxlmately year 2007) through 2835 Port Orchard ERU connections in the 580 Zone (full bulldout - approximately year 2018) 91 through 3,&50 Bremerton ERU connections in lhe Bremeflon 580 Zone, whichever occurs first. Phase 3 Water System PIan: After approxlmately 1,500+/- EHU connectlons in the Pon Orchard 580 Zone, the existing port Orchard 16 inch maln ln Old Clifton Road rnay not have sufllclent capaclty to suppty fireflow to the Bremerton systern. ln Phase 3 Brerneilon wltl construct a permanent transmlssion main ln Old Clifton Road from Gampus Parlrway to tho Port Orchard resevolr and 4200 Feigley will be disconnecled lrorn the Port Orchard 16 inch main and served frorn this new Brernerton main. ln Phase 3 the connect on between the Port Orchard and Bremerton systems at Old Clifton Hoad will be relocated to the Port Orchard reservoir slte (termed the reseruoir connection). ln Phase 3, Port Orchard wilt continue to provlde up to 1,700 gpm of emergency fireflow for up to 3 hours lo lhe Bremerton system at a minimum gradlent ol 540, vla the reseruoir connection, deferring the need for Bremerton lo construct a separate new storage reseruolr in the 580 zone. During Phase 3, Port Orchard witl conslruct a second reseruoir on lts exisling reservolr slte to satisfy s growth requlrernents in lts 580 zone, Port Orchard wlll coordlnate the design of this second leservoir with Bremerton so that space ls avallable at lhe Port Orchard site for a luture B rem e rton reservoir(s), o95560-18{2.doc Page 6 of r r December l7.zml Page 813 of 19 -Asan element of the lnsta llation ol its lransmissilon maln in Old Clifton 'Road, Bremerton wlll relocate the Old Clifton Road connection and meter to the Port Orchard reservoir site (reservoir connectlon). The specific deslgn and rnethod ol oPeration of the connection/meter relocalion shall be approved by both Port Orchard and Brernerton Prior to installation. lnstallation and malntenance ol the conneclion/rneter at the reservolr slte is the respons ibllity of Brerneflon, but the cost of installatlon' operation and mai nlenance will be shared equallY by both Port Orchard and Bremenon- The construction schedule for relocation of the conne ctlon/meter shall be coordinated wllh Port Orchard to avold disruPtions in supplY to Port Orchard. possible, including utitizing dlstribution mains as I Washi t o of the lf these shall be completed by each systam .e studies/designs are raquired to secure approval cost sharedLqually by both Port Orchard and Bremedon. Specilic responsibilities during Phase 3 are: - Bremerton will construct, operate and maintain a 12 inch transmission rnaln in Old Clifton Road lrom CamPus ParlrwaY to a connection with the Port Orchard water sYstem at the Port Orchard reservolr site (reservoir connection). The transrnissi on mdn will be comPleted and operational within 1 Year of Port Orchard's request, in writing' that the rnain be constructed , but no soonsr than 2007' o95560-l842.doc Page 7 of ll December l7.Nl for the start of Phase 4. Phase 4 begins whe-n Bremerton its 580 zone and/or when separation of the Port orchard eilher City, whichever occurs lirst' : tn Phase 4, lhe Bremerton and Port ruct seParate storage res main ln Old Clifton Road rchard will Provids space when requested to do so by Bremerton' Specific resPonshllities dufing Phase 4 are: Page &14 of 19 4?00 Felgley mej.ef - For lhls connection Port Orchard Is the supplying ulility and Bremerton is the receiving utllity. 660 Zone melet - For thls connection Port Orchard ls the supplying utility and Bremerton is the receiving utility. OH. Sli8gn Foad cpnnectlon and/or Reservoir--corutection meters - For these connections Brernerton b lhe supplyrng utillty and Port Orchard Is the recelving utllity. Howevsr, Brernerton wlll be responsible for turnishlng, lnslalling, maintaining, ard calibratlng the metering equipment for these connections, and the cost shall be shared lointly. o95560.1 842.doc Fage I of I I Decembcr lZ, Z(X)l Page &15 of 19 be deterrnined by mulual agreernent prior lo construction. Title for the land on which the Bremerlon reservoi(s) are built wlll remain with Port Orchard. Porl Orchard will grant a permanent easement to allow Bremefton to construct, maintain and operate the reservolr(s) and associated water mains and appurtenances on lhe site ln perpetuity, at no cost to Bremerton. Each party shall be responslble for the cost of conshuction, site restoralion, operation and maintenance of its own reseruoirs and water system lnfrastructure on the reservolr site(s), After construction of lhe Bremefion reseruolr, lhe cost of routine matntenance ol lhe reseruoii grounds and access roads will be shared equalty 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, srze or shape of tand wlll be ! However, lrom the date ol this agreement port orchard will coo g its future spacg requlrements prior to constructing any additional Separation ol the Brgmerton and Port Orchard Systemq - Separation of the BrEmerton and Port Orchard systems and/or restoralion of both systems to a perrnanent conflgurallon may require the removal and/or relocation of temporary piping, valving moters, etc., the aOOition of new connections at the reseryoir slte, etc. The cost ol thesa miscallaneous adjustments wiltbe shared egually between Brernerlon and Port Orchard unless lt ls clearly dernonstrated that the work !s for . the benefit of a particular system. All water suppty delivered as descrlbed in thls plan shall be measured by the supplying utility using electronlc meterlng equlpment of a type whlch is agreeable to each utility. Meters shall be read and melering results shal be reported to the receiving utility on a rnonthly basis, or at such frequency as may otherwise be agreed to by the partles. The metering equipment shall be furnished, lnstalled, mainlalned, and calibrated by the receiving utility, as specilied betow. Calibratfon shall be done at least oncs every three (3) years and a copy of calibration resutts submltled to the supplying utility. Both utilltles shalt have access lo and be permitted to instatland rnainlain its own monitoring and recordlng system at its own expense. I ln lhe event any meter fails to register, Department for the supplying utility shall e during which such meter failed to register through such meter lor the preceding two rn Each utility shall lnstalt, operate, and malntain isotation va tles on thelr respective water mains at the point where those mains are in utility shall cooperate with the other utility ln coordinating tt ofurution of and related facillties for the purposffi of this Agreernent' o9556O- 1842.d@ Page I oI I I December l7.20/Jl Page &16 of 19 Port orchard sBO Zone / Bremerton sgo Zonecooperat ve ter systern Deve opment plan summary chart HesponsibililiesPhaseTiming Port Orchard Brenrerton Joint Comments o UptogO ERU in port ffirard 580 (20r)g or. Up to 12S ERU in Bremenon 580 Provide fireflorrv to Bremerton, max 1,700gpm for 3 hn. (mtr. 540 gradient) Create 66! pressure zone when necessary and agreed to Provkle dorne$ic suppty and fireflortto42@ Feigley a a a r Ad;rst HCrLol Zone to 560. Conslnrd interim Pump Station 2A. Construcll}" tansrn[ssion maintom pump Slalion 2A b Old Clifton Rd.o Constuctconneclion between poil Orchard & Bremeion q6lerns (irrcl nrter) at Otd Cilllhn Rd.. ConsEuct oonnec.tion betrryeen 42fiI Feigtey & exist Port Orchard 16" main $ncL rneter)o Proide wder source for 4200 Feigey and Bremerton portion of OO0 zone via Old Clibn Rdconnection Secure bcal frre drstic{ and DOH approral for reseruoir vol. sharing Sture cost of Old CIifton Rd. connection Share oostof 660 pressure zone improrrements a a Deferspermanent Bremerton $orage ree ryoir(s). transm lsion main in OH Clifton Rd- and dstfrution main h Old Oilhn Hd. o 2 Upto 1500ERU h poil Orchard 580 (2002)or Up to 3,350 ERU ir,r Brernerton 5E0 a a . Payincrementalcostof upgradrng Pump Statbn 2A to provide additional 350 gPrlt o Upg,rade capacity ol Rrmp $atbn 2A to provide long term Unlntem.rpfible sot rce (350 gpm)to Port 0rchard Work togeher h searre all regulabry appromls a Defes pemanent Bremerton storage resenoir(s) and trany rnlsion main in Old CIifton Rd. and dstibution main h OH Clifion Rd. a 3 Satislies hildout requLementsof Port Orchards80 (2.8&5 EHU) (2018) orUp h3350 EBU in &emerton580 a a Condrucl 2d resenoir In Port Ordrad5S0Zone o Construct pemanent fansmissron main in OH Ctifun Bd. remorle Feigleyconnection Relocde old cflhon M. conneclion to reservo[r sib (resenrcir connedion) a t . Sharecostof rclocating Old CNibn Rd. connection. Woiltogdhertosecure all regulatory approvats Deles permanent Bremerton slor:age resenrc,i(s) aM d'strbut'rm main in Ots Cffton Rd. a 4 Requiredwhen Bremenon regites s$gnificant $andby $ongein 580 Zone or when sepantion ol q6tans if rcquired SatiSies bddortrequte ments of Brerrelton zone o o Prov-rdespace on Port Or$ard rcseruchsite lor Bremerton reservoir a Constud separate storage reseruoiron Port Orchud reservohsite Conshrct pemanentdistbution main in Old Ctifton Hd. fif required) a a S:hare coeilot remorral of all temporaypping and any aqushents ofconnedlcn controlralves, meErslo perman ent conf gu rat'ron o Allmaior infrasUuaure omponenB forboth slptemsaleconshrcted h heilpernanent contigtralbn a !o G)o P o @ o9556G1.^--" Page lO of tl HGG Inc. :h 18.2002 1 ADDENDUNI NO.1 TO INTERLOCAL AGREEMENT F-or Cooperative Water System Developrnent In the Port Orchard 580 Zcne / Bremerton 580 Zonc This Addendum No. 1 amends the Interlocal Agreement (the "Agreement") entered into betrveen flre City of Bremerton, a municipal corporation, hereinafter referred to as "Bremerton," and the City of Port Orchard, hereinafter referred to as "Poft Orchard" executed on December 26,7001, and WFIEREAS, the parties mutually desire to modify the responsibilities of each party with respecl to the agreed ilpon provision of l.,,ater; NOW THEFGFORE All provisions in the Agreement shall remain in full force and effect except as expressly rnodified by this document. For valuable consideration and by mutual consent of the parties, the modifications to the Agreement are as follows: I. Delete the section titled "4200 Feigley Property" in its entirety and re;:lace it with the following; B West 580 Sunply Port Orchard agrees to supply water for domestic use and lireflow to the Bremerton West 580 presstue zone via its l6 inch water main in Old Clifton Road, until such tirne as a separate Bremerton storage reservoir is constructed and operational. Fireflow rates/volLlmes and service pressures supplied by Port Orchard rvill be a minimum of 1 ,700 gpm for tlree hours at a minimum gradient of 540 feet at the connection, Bremerton agrees to supply water to Port Orchard, via its connection to the l6 inch Port Orchard watermain in Clifton Road (Old Clifton Road corurection), to replenish the rvater supplied by Port Orchard to the Bremerton West 580 pressure zone. The rvater supplied by Bremerton to Port Orchard will be delivered at a rninimum hydraulic gradient of 580. The volume of water supplied by Port Orchard to the Bremerton West 580 pressure zone shall be replenished by Bremerton on a continuous basis, or as otherwise agreed to. Distribution piping, as required by the City of Bremerton, will be extended by others from Port Orchard's water main in Old Clifton Road. Connection locations and cletails require approval from ttre City of Port Orchard- Mastermeters will be installed at the point of connection. Domestic meters will be installed and maintained by the City of Bremerton, or as otherwise agreed to, and be billed directly to the customer. June 18,2004 Page &18 of 19 Addendunr No- I to Interlocal Agreement l. Amend Section 4. entit ed "Water Surrply,' aq follorvs: )Iransmission Main: Delete all references in tlre agreentent to the City of Bremefion "|2-inch transmission main" and replace thern r,vith "16-inclr transmission main". -J.an r Coo tive w S stem Amend the section entitled "N{onitoring of Supplied Water" on page 8 of I I as follorvs: Delete "4200 Feigley meter - For this connection Port Orchard is the supplying utility and Brenrerton is the receiving utility." and replace it with flre following: "West 580 Zone supply Meters - For these connections Port Orchard is the supplying utility and Brernerton is the receiving utility." The parties whose names appea.r represent that they are authorized to enter into a conlrac[ amendment that is binding on the parties of this contract. IN WITNESS WHEREOF, the parties have executed this Addendum l. to the Agreement on the day fully execured below. CITY OF PORT ORCHARD CITY OF B TON a B Its B Its ivlavo r DATE: APPROVED AS TO FORrM; DATE: <_i 6* Roger A. Lubovich Bremerton City Attorney A J APPROVED AS TO FORTII: ATTEST: -rL .,June 18,2004 Page &19 of 19 Addendum No. 1 to Interlocal Agreement City C L. EXHIBIT C PURCHASED ASSETS l. Tax Parcel 082301-2-001-2005 consisting of 4.63 acres; 2. 0.45 MG storage reservoir located on the parcel noted above; 3. 6,900 feet of 16" ductile iron Transmission Main located in the Right of Way of Old Clifton Road between the 0.45 MG Reservoir and the intersection of Old Clifton Road and McCormick Woods Drive; 4. 330 feet of 8" ductile iron Water Main, a Mueller Fire Hydrant,as/i'domestic meter, a 1- ll2 inigation meter, and a 2" meter to the Splash Pad all located within McCormick Village Park. Iiitt O. a o ana Eq) @o -c(J)(L ) i Exhibit C - Purchased Assets C - I of 2 \ I i T] EXHIBIT D DEED OF CONVEYANCE When recorded return to: City of Bremerton Attn. City Clerk 345 6n Street, Suite 600 Bremerton WA 98337 DEED OF CONVEYANCE Grantor: City of Port Orchard, a Washington municipal corporation Grantee: City of Bremerton, a Washington municipal corporation Abbreviated Legal: Resultant Parcel A of Boundary Line Adjustment Recorded Under Auditor's File No. 3031737 Assessor's Tax Parcel Number: 082301-2-001 -2005 THE GRANTOR, City of Port Orchard, a municipal corporation of the first class ("Port Orchard"), hereby transfers, conveys and sells to the GRANTEE, City of Bremerton, a Washington municipality ("Bremerton"), the assets of Port Orchard identified as the "Purchased Assets" pursuant to, and as more particularly described as: 1 . Tax parcel #082301-2-001-2005 (conveyed via Exhibit E - Quit Claim Deed) and the 0.45 MG Reservoir located on said parcel valued at $434,000; Z. 6900' of Ductile Iron Water Main (Transmission Main) located in the Right-of-Way on Old Clifton Road between the Reservoir and McCormick Woods Drive valued at $345,000; 3. 330' of S" Ductile Iron Water Main (Distribution Main), a Mueller Fire Hydrant, a3/a" Domestic Water Meter, a l-l 12" lrngation Water Meter, and a 2" Water Meter serving the Splash Pad all located within the McCormick Village Park and valued at $25,000- port Orchard hereby warrants and defends the conveyance of the Purchased Assets made to Bremerton, and its assigns, against all and every person and persons whomsoever lawfully claiming the same. The City of Port Orchard makes no w€uranty as to the condition of the purchased Assets. The City of Bremerton has had the opportunity to inspect the Purchased Assets and accepts the Purchased Assets, "as is, where is-" Port Orchard and Bremerton have hereunto set their hand and seals effective as of day of 20 CITY OF BREMERTON CITY OF PORT ORCHARD By:By: its: Mayor Date: its: Mayor Date: Deed of Conveyance Page I of2 Approved as to form: Bremerton City Attorney Attest: City Clerk Approved as to form: Attorney for Port Orchard Deed of Conveyance Page 2 of2 EXHIBIT E QUIT CLAIM DEED When recorded return to: City of Bremerton Attn. City Clerk 345 6th Street, Suite 600 Bremerton WA 98337 QUIT CLAIM DEED Grantor: City of Port Orchard, a Washington municipal corporation Grantee: City of Bremerton, a Washington municipal corporation Abbreviated Legal: Resultant Parcel A of Boundary Line Adjustment Recorded Under Auditor's File No. 3031737 Assessor's Tax Parcel Number: 082301-2-001-2005 THE GRANTOR City of Port Orchard, a municipal corporation in Kitsap County, Washington for and in consideration of valuable consideration as described under the Agreement For Purchase and Sale of Assets of West 5 80 Zone Reservoir executed by the parties on Novemb er 20, 2019 in hand paid, conveys and quit claims to the City of Bremerton, a municipal corporation in Kitsap County, Washington, the following described real estate, situated in the County of Kitsap, State of Washington together with all after acquired title of the grantor(s) herein: RESULTANT PARCEL A OF BOUNDARY LINE ADJUSTMENT RECORDED UNDER AUDITOR'S FILE NO. 3031737; THAT PORTION OF THE NORTHWEST QUARTER OF THE NORTHWEST QUARTER OF SECTION 8, TOWNSHIP 23 NORTH, RANGE I EAST, W.M., KITSAP COUNTY, WASHTNGTON, LYING NORTHWESTERLY OF FTEGLEY ROAD SW AND OLD CLTFTON ROAD SW (COUNTY ROAD NO. 234) AND LYING NORTHWESTERLY OF OLD CLIFTON ROAD SW (ALDER ROAD); EXCEPT THAT PORTION THEREOF DESCRIBED AS FOLLOWS: BEGINNING AT THE NORTHWEST CORNER OF THE NORTHWEST QUARTER OF THE NORTHWEST QUARTER OF SAID SECTION 8; THENCE Sl*55'45 W, ALONG THE WEST LINE OF SAID NORTHWEST QUARTER, A DISTANCE OF 330.14 FEET TO THE souTHwEST CORNER OF THE NORTH 330.14 FEET OF THE NORTHWEST QUARTER OF THE NORTHWEST QUARTER OF SAID SECTION 8 AND THE TRUE POINT OF BEGINNING; THENCE CONTINUIING SI*55'45 W ALONG THE WEST LTNE OF THE NORTHWEST QURTER OF SAID SECTION 8, A DISTANCE OF 412.36 FEET TO THE NORTHWESTERLY RIGHT-OF-WAY MARGIN OF OLD CLIFTON ROAD; THENCE N42*51'37 E, ALONG SAID zuGHT-OF-WAY MARGIN, A DISTANCE OF 306.20 FEET; THENCE N47*08'23 W A DISTANCE OF 140.10 FEET TO THE BEGINNING OF A 95.00 FOOT RADIUS CURVE TO THE RIGHT; THENCE NORTHWESTERLY (CLOCKWISE) ALONG SAID CURVE, THROUGH A CENTRAL ANGLE OF 49*04'08 E, AN ARC DISTANCE OF 81.36 FEET; THENCE Nl *55'45 E A DISTANCE OF 18.02 FEET TO THE SOUTH LINE OF THE NORTH 330.13 FEET OF THE NORTHWEST QUARTER OF THE NORTHWEST QUARTER OF SAID SECTION 8; THENCE N88*34'43 W, ALONG SAID SOUTH LTNE, A DISTANCE OF 62.00 FEET TO THE TRUE POINT OF BEGTNNING; SUBJECT TO A NON. EXCLUSIVE EASEMENT FOR TNGRESS, EGRESS AND UTILITIES PURPOSES OVER, UNDER, ACROSS AND THROUGH A STRIP OF LAND 35.0 FEET TN WIDTH, THE SOUTHWESTERLY AND WESTERLY LTNE OF WHICH IS DESCRIBED AS FOLLOWS: BEGINNTNG AT THE NORTHWEST CORNER OF THE NORTHWEST QUARTER OF THE NORTHWEST QUARTER OF SAID SECTION 8; THENCE Sl*55'45 W, ALONG THE WEST LrNE OF SAID NORTHWEST QUARTE& A DISTANCE OF 742.50 FEET TO THE NORTHWESTERLY RIGHT-OF-WAY MARGIN OF OLD CLIFTON ROAD; THENCE N42*51'37 E, ALONG Quit Claim Deed Page I of3 SAID RIGHT-OF-WAY MARGIN, A DISTANCE OF 306.20 FEET TO THE TRUE POINT OF BEGINNING OF SAID DESCRIBED LINE; THENCE N47*08'23 W A DISTANCE OF 140.10 FEET TO THE BEGINNING OF A 95.00 FOOT RADIUS CURVE TO THE RIGHT; THENCE NORTHWESTERLY (CLOCKWTSE) ALONG SAIDCURVE, THROUGH A CENTRAL ANGLE OF 49*04'08 E, AN ARC DISTANCE OF 8I.36 FEET; THENCE NI*55'45 E A DISTANCE OF 18.02 FEET TO THE SOUTH LINE OF THE NORTH 330.13 FEET OF THE NORTHWEST QUARTER OF THE NORTHWEST QUARTER OF SAID SECTION 8 AND THE TERMINUS OF SAID DESCRIBED LNE; THE NORTHEASTERLY AND EASTERLY LINE OF SAID STRIP SHALL BE PROLONGED OF SHORTENED, AS THE CASE MAY REQUIRE, TO TNTERSECT THE NORTHWESTERLY RIGHT-OF.WAY MARGIN OF OLD CLIFTON ROAD AND TO TERMINATE AT THE souTH LINE OF THE NORTH 330.13 FEET OF THE NORTHWEST QUARTER OF THE NORTHWEST QUARTER OF SAID SECTION 8. ATTACHED AS EXHIBIT F DATED this _ day of 20 THE CITY OF PORT ORCHARD, a municipal corporation By: Its:Mayor Quit Claim Deed Page 2 of3 ATTEST: Port Orchard City Clerk APPROVED AS TO FORM: Attorney for Port Orchard STATE OF WASHINGTON COUNTY OF KITSAP I certifi that I know or have satisfactory evidence that is the person who appeared before me, and said person acknowledged that he signed this instrument, on oath stated that he was authorized to execute the instrument and acknowledged it as the to be the free and voluntary act of such party for the uses and purposes mentioned in the instrument. Dated: (print or type name) NOTARY PUBLIC in and for the State of Washington, residing at: My Commission expires: ) ) ) SS. Quit Claim Deed Page 3 of3 )(l