012-14 - West Sound Utility District - ContractContract No. 012-14
INTERLOCAL AGREEMENT BETWEEN
WEST SOUND UTILITY DISTRICT AND CITY OF PORT ORCHARD FOR
WASTEWATER TREATMENT FACILITIES MANAGEMENT AND OPERATIONS
This Agreement is entered on this ay of , 2014, by and between
the CITY OF PORT ORCHARD, a Washington municipal corporation, hereinafter referred to
as "City", and WEST SOUND UTILITY DISTRICT, a Washington municipal corporation,
hereinafter referred to as "District".
WHEREAS, Washington State's Interlocal Cooperation Act, RCW Chapter 39.34,
encourages local government units to enter into agreements with one another on a basis of
mutual advantage in order to make the most efficient use of their resources for the benefit of
their respective constituents; and
WHEREAS, the City and District entered into an intergovernmental agreement on
January 31, 1983, for the management and operation of the joint wastewater treatment facilities
referred to as South Kitsap Water Reclamation Facility (SKWRF); and
WHEREAS, the City acquired state property and the District conveyed the remaining
portion of the land to the City in 1983 needed for the construction of SKWRF; and
WHEREAS, the City and District collaborated in 2002 and 2004 to secure funding for
the expansion of SKWRF's treatment capacity and the construction of physical, chemical and
biological process systems to meet the Washington Department of Ecology's effluent discharge
requirements; and
WHEREAS, the City and District entered into an interlocal agreement on August 14,
2012, to extend the terms and conditions of the January 31, 1983 Agreement until December 31,
2013; and
WHEREAS, the City and District entered into an interlocal agreement on December 11,
2013, to extend the terms and conditions of the January 31, 1983 Agreement until March 1,
2014; and
WHEREAS, it is in the mutual interest of the City and District to continue with the long-
standing partnership arrangement for the management and operation of SKWRF; and
WHEREAS, the purpose of this Agreement is to formalize new terms and conditions for
the continuing partnership between the City and District relative to ownership, management and
operation of SKWRF; NOW, THEREFORE,
IN CONSIDERATION of the foregoing recitals, promises and covenants hereinafter set
forth, the parties hereto agree as follows:
Wastewater Facilities Management Interlocal Agreement . Page I of 11
Section 1 Purpose of Agreement
It is the purpose of this Agreement to provide for an intergovernmental arrangement appropriate
to manage the daily operation, maintenance and financial affairs of SKWRF and to carry out its
future capital improvements serving the residents of the City and customers of the District and
capable of serving future growth areas that are identified within the City and District's
comprehensive plans. It is recognized this Agreement may be relied on by the holders of
revenue bonds of the Participants to this Agreement. This Agreement is entered into in
accordance with RCW 35.13A.070 and amends and supersedes the Intergovernmental Contract
for Wastewater Facilities Management entered into by the City and District on January 31, 1983
and all amendments thereto.
Section 2 Definitions
The following words and phrases used herein shall have the following meanings:
(a) "Advisory Committee" shall mean the governance body charged with oversight of the
organization's audit and control functions. The purpose of the committee is to make
recommendations and advise the District and City regarding the operation and
management of the SKWRF. The committee shall consist of six (6) members with a
biannually -elected chairperson.
(b) "City" shall mean the City of Port Orchard, Washington.
(c) "District" shall mean West Sound Utility District, Kitsap County, Washington. West
Sound Utility District is the successor in interest to Sewer District No. 5 and Karcher
Sewer District.
(c) "Equivalent Residential Unit ERU" shall mean:
1. One separate single family residence, or
2. With respect to residential duplexes and multiple residential structures, one per single
family unit; or
3. With respect to all remaining users served by the Joint Facilities, each 700 cubic feet
or less of monthly discharge of sewage based on metered water consumption.
An ERU shall be counted if the structure to which it is charged is either connected to or
billed for availability of use by Local Facilities.
Any structure having a mixed residential and nonresidential use shall be charged one
ERU for each residential unit and the estimated value of ERU usage for the balance of the
structure.
(e) "SKWRF" (South Kitsap Water Reclamation Facility) shall mean the sewage treatment
facilities, sewage outfall lines, sewage pumping stations, sewage force mains, and
appurtenances and communication facilities related thereto, and other sewage facilities
used to transport, treat and dispose of sewage for more than one Participant, as listed on
the attached Exhibit A.
Wastewater Facilities Management Interlocal Agreement Page 2 of 11
(fl "SKWRF Bonds/Loans" shall mean loans issued to or sewer revenue bonds issued by the
City or District to pay SKWRF Costs, and bonds issued to refund such bonds.
(g) "SKWRF Costs" shall include all costs and expenses attributable to the construction and
installation of SKWRF capital improvements and financing thereof, including but not
limited to the actual cost of design and construction, compliance with any applicable
environmental policy act or procedures, engineering fees, legal fees, financial consultant
fees, interest during construction, SKWRF Bond discount, taxes, publication costs,
Agreement administration costs and other costs and expenses relating to the planning,
design, construction, installation, and financing of the treatment plant, excluding the costs
of acquiring all of the land necessary to the construction of the treatment plant as a part of
the original SKWRF.
(h) "SKWRF Maintenance and Operation Expenses" shall mean all costs and expenses
relating to labor, fringe benefits, power, light, water, heat, chemicals, equipment
including repair and replacement thereof, tools, materials, supplies, insurance premiums,
Agreement services, legal services, inspections, and administrative overhead directly and
properly chargeable to the operation and maintenance of SKWRF.
(i) "Local Facilities" shall mean all sewer facilities owned or operated by the Participants for
the local collection and transmission of sewage to be delivered to the SKWRF. City
Local Facilities include, but are not limited to, the Marina Pump Station, transmission
line and force transmission line from Port Orchard to SKWRF.
(j) "Participants" shall mean the City and the District, and hereafter any other political
subdivision or municipal corporation which enter into agreement with the then existing
Participants to be served by the SKWRF pursuant to the terms of this Agreement and
such other terms as may then be agreed upon, but the Participants may agree to permit
any person or governmental entity to use the SKWRF without becoming a Participant
upon terms and conditions acceptable to the Participants.
(k) "Unmodified Opinion" shall mean financial statements shall be prepared using Generally
Accepted Accounting Principles. State Auditor's Office (SAO) audit reports shall contain
no pattern or ongoing instances of noncompliance or other matters required to be reported
under Government Auditing Standards.
Section 3 Maintenance and Operation of SKWRF
Maintenance and operation of the SKWRF shall be conducted as follows:
(a) The District shall maintain and operate the SKWRF in accordance with accepted
engineering standards and in conformity with the then current standards and requirements
established by applicable state and federal agencies having jurisdiction over such
maintenance and operation. Audits shall meet the highest standards relating to an
unmodified opinion that financial statements give a true and fair view of SKWRF
operations and management.
Wastewater Facilities Management Interlocal Agreement Page 3 of 11
(b) In the event of mismanagement by the District materially affecting the cost of
maintenance or operation of the SKWRF or a material violation of state or federal
standards or requirements due to neglect, misfeasance or malfeasance by the District,
operation and maintenance shall revert to the City. It shall be the responsibility of the
Advisory Committee or, in the absence of consensus by the Advisory Committee, an
Arbitrator as provided in Section 11, to determine whether there has been a violation of
standards or regulations, mismanagement or failure by the District so material as to
warrant transfer of management and operation of the SKWRF to the City.
(c) Employment of the Chief Operator of the SKWRF shall be made by the District only
upon the express approval of the Advisory Committee.
(d) In the event a supervisor of the District is responsible to oversee the function of the Chief
Operator, not more than 20% of the salary and benefits of the supervisor shall be charged
as a SKWRF Maintenance and Operation Expense. Finance services and administrative
support will be a SKWRF maintenance and operation expense as required, subject to
review by the Advisory Committee.
Section 4 Operation Budgets, Financial Reports, Funding Maintenance and Capital
Improvements
(a) The District shall prepare operations and capital improvements budgets for the SKWRF
on an annual or biennial basis. Such budgets shall be prepared in a manner consistent
with the District's financial management policies, which policies shall be reviewed and
ratified by the Advisory Committee, and in accordance with generally accepted
accounting principles (GAAP) and State budget preparation standards.
(b) The District shall prepare annual financial reports and quarterly budget status reports for
review by the SKWRF Advisory Committee. The capital facilities fixed assets and debt
funding liabilities shall be accounted and recorded on the SKWRF's financial statements.
(c) The fixed assets, property ownership and SKWRF current and future bond/loan payments
and debt liability shall be assigned, vested and allocated to the District and City on a
50%-50% basis.
(d) SKWRF Maintenance, Operations and Capital Expenses shall be paid as follows:
(1) By October 15 of each budget preparation year, the District shall notify the
City of its proposed budget for SKWRF Maintenance, Operation and Capital
Expenses and the ERU calculations used to determine the Participant's
payments to SKWRF for the ensuing year. Thereafter, the District shall adopt
its final budget subject to approval of the proposed SKWRF budget by the
Advisory Committee. The rate per ERU used to determine the amount
assessed to each Participant shall be based on the final budget, except as
otherwise provided in this paragraph. By October 15 of each year following
the year in which the budget estimates apply, the District shall determine and
notify the City of the actual SKWRF Maintenance, Operation and Capital
Expenses.
(2) During any year, the District shall operate the SKWRF within the level of
funds appropriated in the SKWRF budget. Expenditures not included in the
budget shall not be made without approval of the Advisory Committee.
Should SKWRF Maintenance and Operations and Capital Expenses increase
Wastewater Facilities Management Interlocal Agreement Page 4 of 11
above the amount in the approved budget, the District shall notify the
Advisory Committee of such increase and the Committee shall approve
amendments to the SKWRF budget and increase ERU charge rates to the
Participants, subject to the approval of the District's Board of Commissioners
and the City Council. Any amendment to the SKWRF budget will be made
only after demonstrating actual need based on unforeseen circumstances over
which the District had no reasonable control.
(3) Neither the District nor the City shall have a financial or equity interest in the
Local Facilities of the other party. Each party shall be solely responsible for
the management, operation and expense of its respective Local Facilities. The
management, operation and maintenance of the Port Orchard Marina Pump
Station, transmission line and force main transmission line from Port Orchard
to the treatment plant shall be the sole responsibility of the City.
Section 5 Billings -Payments
The District shall bill the City on the first day of each calendar month for ERU charges accrued
to the first day of the immediately preceding month, and the City shall pay such charges so billed
by the 241h day of the month in which such bill is received after which time such billing shall be
delinquent. Charges omitted in one month may be billed in the following months. Delinquent
charges will accrue interest on the unpaid balance at the rate of four percent (4%) per annum
from date of delinquency until paid.
Section 6 Covenants to Make Payments
It is recognized the City has or may have outstanding revenue bonds payable in whole or in part
from the gross revenues of its sewerage and/or water system. Nothing in this section is intended
to violate, nor shall it be construed to violate, any covenants respecting those outstanding bonds
and to the extent there is conflict between them and this section such covenants and bond terms
shall control with respect to such outstanding bonds and bonds issued on parity therewith.
The City agrees to establish rates and collect fees for sewer service or sewer and water service in
the case of a combined utility which will be at least sufficient to pay the sewer service charge to
the District and to pay the other maintenance and operation expenses of its system and the
principal of and interest on all revenue bonds issued by it for its sewer or water and sewer utility
and to meet the coverage covenants thereof which will constitute a charge upon the gross
revenues of its system The District agrees to establish rates and collect fees for sewer service
which will be at least sufficient to pay the expenses of maintenance and operation of its water
and sewer utility and meet the principal, interest and coverage requirements of any and all
revenue bonds of the District which constitute a charge upon the gross revenue of such utility.
Section 7 Maintenance of Local Facilities and Sewer Utility — Insurance — Liability
The Participants shall maintain and operate their respective Local Facilities and control and
regulate the discharge of sewage into those Local Facilities in accordance with accepted
engineering standards and in conformity with the standards established by the state and federal
agencies having jurisdiction over the same. If there are any deficiencies in the respective Local
Wastewater Facilities Management Interlocal Agreement Page 5 of 11
Facilities or the discharge of sewage into them causing excessive flow or below standard quality
sewage, such deficiencies shall be corrected by the applicable Participant forthwith. Deficiencies
may constitute excessive flow, BOD discharges for five-day period of over 300 parts per million,
suspended solids over 300 parts per million, or quality of sewage discharge which damages the
sewage treatment process or SKWRF, increases the SKWRF Maintenance and Operation
expenses per unit of sewage treated, or causes the violation of any federal or state law or
regulation. The offending Participant shall pay for any additional cost or expense caused by its
breach of this paragraph.
Funded from SKWRF operating revenues, the District shall acquire and maintain property and
general liability insurance for SKWRF with limits in accordance with standard practice at any
such time. The City shall be a named additional insured on any property or general liability
insurance policy for SKWRF. The District shall hold the City harmless and defend all claims for
personal injury or property damage, including attorney fees, arising out of or in connection with
its maintenance and operation of SKWRF. The provisions of this Section 7 shall survive the
expiration or termination of this Agreement.
As a condition of the District's operation and maintenance of SKWRF, the District shall be liable
for all penalties and assessments charged against the SKWRF by any state or federal agency
resulting from negligence, misfeasance or malfeasance in its maintenance and operation of the
facility, and shall further indemnity and hold harmless the City from any such penalty or
assessment.
Section 8 Local Rates and Charges
Each Participant agrees to conform its rates and charges for sewage collection, treatment and
disposal service to equitable standards consistent with the requirements of applicable federal and
state agencies.
Section 9 Expansion — Improvement of SKWRF
(a) Expansion. At such time as SKWRF reaches 85% of capacity, or SKWRF is required to
be expanded by federal or state agencies having jurisdiction over the facilities, the
Participants shall immediately commence the planning, design and construction of the
expansion of SKWRF. Expansion of SKWRF shall also be deemed required if directed
by a federal or state agency in order to comply with existing federal and/or state
standards or regulations. SKWRF expansion or upgrades to be constructed shall be
agreed upon by the Participants, but in no event shall such expansion or upgrades be less
than the capacity and quality that is required by applicable federal, state or local
standards or regulations or the minimum capacity and quality which good engineering
practice would dictate under the circumstances. The Participants shall confer and
negotiate a method for financing the expansion that shall be based on a funding formula
and method of payment mutually agreed to by the Participants.
(b) Capital Improvements. If regulatory agencies with jurisdiction over the SKWRF direct
the upgrading of SKWRF by the making of qualitative improvements to such facilities,
the Participants shall immediately commence the planning, design and construction of the
improvements. The Participants shall confer and negotiate a method for financing the
Wastewater Facilities Management Interlocal Agreement Page 6 of 11
improvements that shall be based on a funding formula and method of payment mutually
agreed to by the Participants.
Section 10 Advisory Committee
There is created the SKWRF Advisory Committee which shall consist of three (3)
representatives of each of the Participant's legislative bodies, which appointments shall be made
as determined by the individual Participants. Each representative, including the chairperson,
shall have one vote on matters brought before the committee.
It shall be responsibility of the Advisory Committee to: 1) review and approve SKWRF's
operating and capital budgets, 2) the maintenance and operation of SKWRF and plan for future
SKWRF's capital improvements, 3) recommend adequate funding of SKWRF based on equitable
share of revenue contributions for the Participants, 4) foster cooperation between the Participants
under this Agreement, 5) review budget status reports and financial management policies, and 6)
otherwise perform the duties assigned to it by this Agreement.
The Advisory Committee shall select its chairperson and such other officers, and shall fix a time
and place for its meetings and establish such rules and procedures as it deems appropriate.
Except as provided herein, the Advisory Committee shall be advisory to the Participants
respecting all conditions required in the Agreement. The District shall submit to the Advisory
Committee all proposed and final budgets, grants, grant applications and other matters related to
the Advisory Committee's responsibilities or that the Advisory Committee requests relating to
SKWRF. All Participants shall submit to the Advisory Committee annually and at other times
when requested, all data pertaining to water consumption, sewerage discharge, sewer
connections, sewage quality, plans for additional Local Facilities, ERUs and other information
relating to SKWRF.
The Advisory Committee shall annually review the ERU factor assigned to each nonresidential
unit and shall make necessary adjustments based on actual or estimated sewage discharge as it
deems appropriate.
Section 11 Disputes
In the event of a dispute between any of the Participants, including but not limited to SKWRF
Costs, the estimated or actual SKWRF Maintenance and Operation Expenses, the number of
ERUs of any participant or the compliance with any maintenance, management operation or
construction standards or requirements, any party to such dispute may submit the dispute to the
Superior Court of Kitsap County for arbitration proceedings as provided by Chapter 7.04A
RCW. Such arbitration shall be limited to the interpretation and application of this Agreement
and shall not impair the City's or the District's contractual and debt obligation to third parties .
The arbitrator appointed shall prescribe the rules of the arbitration not agreed upon by the parties
to the dispute. The arbitrator shall be provided with all legal and equitable power to fully and
completely settle any disputes that arise. The parties to the dispute may also agree upon any
other method of resolving this dispute prior to arbitration, including but not limited to a meeting
Wastewater Facilities Management Interlocal Agreement Page 7 of 11
of the parties' governing bodies and/or mediation. Each party to a dispute shall be responsible
for its attorney fees and costs.
Section 12 Industrial Cost Recovery - Industrial Share Payment
Under the provisions of the Federal Water Pollution Control Act (the Act), 33 U.S.C. §1251 et
seq., sewerage agencies providing wastewater treatment must identify all industrial/commercial
waste dischargers as defined by the United State Environmental Protection Agency (EPA). Once
identified, the Act requires that the industry must repay that portion of any federal grant received
by local agencies for wastewater treatment relating to the treatment of that discharger's industrial
waste discharges.
Each Participant agrees that any waste discharger whose total discharge into SKWRF is
sufficient to cause that discharger to be classified as a significant industrial waste discharger as
described by Pretreatment of Pollutants Introduced into Publicly Owned Treatment Works,
October, 1973, EPA, as amended, shall be required to enter into an agreement with the
Participant into the Local Facilities and provide payment of any required local and industrial cost
recovery costs pursuant to federal and state regulations.
Any Participant which receives industrial cost recovery funds from any affected industry or a
federal or state agency shall pay all such money to the SKWRF, which in turn shall use that
money in the SKWRF capital improvement budget to fund the cost of future capital
improvement projects.
In addition to the industrial cost recovery payment and any sewer charges of a Participant for its
Local Facilities, the industry shall pay to SKWRF for payment of the SKWRF costs based on its
share of sewage flow capacity and the cost of those portions of the SKWRF designed to handle
BOD loadings and suspended solids from that industry and the industry's share of the SKWRF
maintenance and operation expenses and bond coverage requirements based on sewage flow and
the expenses of handling and treating the BOD loadings and suspended solids for that industry,
which additional payment is referred to in this Agreement as the "industrial share payment."
The precise amount of the industrial share payment payable by any industry cannot be
determined at this time, but will be specified in a later Agreement between that industry, the
Participant, the Local Facilities into which that industry initially discharges its sewage, and the
City. Such later Agreement shall provide for the times and manner such payment will be made.
Section 13 Access to SKWRF - Cooperation
The Participants enter into this Agreement committing all sewage discharge into their Local
Facilities to be transported to the SKWRF for treatment and disposal, thus foregoing the
opportunity of treating and disposing of such sewage individually and not risking the control of
the growth of or accessibility to sewers to property owners within their respective communities
by other Participants or to property owners lying outside the boundaries of all Participants but
within the areas for which the SKWRF are designed to serve by any Participant. Because this
Agreement contemplates that all Participants will use the SKWRF and most, if not all,
Wastewater Facilities Management Interlocal Agreement Page 8 of 11
Participants will be transporting sewage collected in their Local Facilities through the political
jurisdictions of one or more other Participants, the Participants declare and agree that this
Agreement is not intended as an instrument to permit one Participant to control the amount of
sewerage collection service furnished by another or by a nonparticipant within the area for which
the SKWRF is_designed to serve. All Participants will cooperate to provide the other Participants
and nonparticipants with reasonable access for sewage flow to the SKWRF either by sharing
capacity, if reasonably available, through Local Facilities at reasonable and nondiscriminatory
charges or by permitting the acquisition of necessary rights -of -way, franchises and permits
through and under public streets and property under reasonable conditions for such access.
Participants agree they will permit any area outside their boundaries but within the designated
service area of SKWRF to be served by SKWRF in accordance with the above standards and
under terms respecting the quantity and quality of sewage discharge that will be no more
burdensome than those applicable to the Participants.
Section 14 Assignment/Dissolution
Without the written consent of all Participants, no Participant shall have the right to assign its
interest in this Agreement or any of its rights and obligations hereunder either by operation of
law or by voluntary agreement to any third party or to terminate its obligations hereunder by
dissolution or otherwise unless one Participant shall be lawfully merged into another Participant,
municipal corporation or political subdivision, or all of the Local Facilities of one Participant
located within the area for which SKWRF was designed to serve shall be lawfully acquired by
another Participant, and this Agreement shall be binding upon and inure to the benefit of the
respective successors and assigns of the Participants, except in the event a municipal corporation
shall be created pursuant to law to perform the function of sewage disposal for the area for
which SKWRF is designed to serve. The Participants may assign SKWRF responsibilities
hereunder to such municipal corporation subject to all other terms and conditions of this
Agreement.
In the event the District should be dissolved or should no longer be authorized to operate sewer
facilities, the Local Facilities owned and operated by the District and any outstanding debts shall
be assigned and transferred to the City in accordance with applicable state law, including but not
limited to Chapter 35.13A RCW. Upon such dissolution of the District, the City shall remain
obligated to continue to maintain and operate the sewer treatment facilities.
Section 15 Notices
Whenever in this Agreement notice is required to be given, the same shall be given by certified
mail addressed to the respective Participants at the following addresses:
City of Port Orchard West Sound Utility District
City Hall 2924 SE Lund Avenue
216 Prospect Street Port Orchard, Washington 98366
P.O. Box 186
Port Orchard, WA 98366
Wastewater Facilities Management Interlocal Agreement Page 9 of 11
unless a different address shall be hereafter designated in writing by either of the Participants.
The date of giving such notice shall be deemed to be date of mailing thereof. Billings and
payments described in paragraph 7 may be made by regular mail.
Section 16 Effective Date, Term of Agreement
The effective date of this Agreement shall be 1 - 33 , 2014. Because this Agreement
gives all Participants rights and obligations regarding SKWRF facilities, such rights and
obligations must continue until terminated by agreement. This Agreement shall be for a term of
twenty five (25) years from the date of this Agreement unless terminated earlier as set forth
below.
Upon providing the other Participant with a one-year written notice, any Participant may
individually terminate its participation and rights and obligations under this Agreement provided
all bonds or loans are retired or payment thereof are fully provided for, secured and funded. After
the first five (5) years of this Agreement and subsequent five (5) year periods, any Participant
may request a review of the terms and conditions of the Agreement to determine if any
amendments or modifications of this Agreement are needed.
Section 17 Repeal of Agreements
The Interlocal Agreements entered into between the City and District on January 31, 1983,
August 14, 2012, and December 11, 2013, regarding the maintenance, capital improvements and
operations of the Joint Facilities are hereby repealed.
Section 18 Complete Agreement
This Agreement constitutes the full and complete agreement of the parties as to the matters
contained herein. No other verbal or prior written understandings shall be provided with any
legal effect whatsoever. Any amendments hereto shall be in writing and signed by both parties.
Section 19 Reasonable Interpretation
For the reason that both parties hereto have had ample opportunity to provide input for the
preparation of this Agreement, it shall not be interpreted in favor of or against either party: it
shall be provided with a reasonable interpretation to the end that its terms and intent may be fully
and reasonably implemented.
Section 20 Approval of Parties
The City's governing body duly considered and entered into this Agreement at its regularly
scheduled public meeting held on the day of 2014, and authorized the
individuals signing this Agreement hereafter to sign the same on its behalf. The District 's
governing body duly considered and entered into this Agreement at a public meeting held on the
Wastewater Facilities Management Interlocal Agreement Page 10 of 11
12"' day of February, 2014, and authorized the individuals signing this Agreement hereafter to
sign the same on its behalf.
CITY OF PORT ORCHARD
Mayor Tim Matthes
Date of Signing: &/ ' � - R� q
ATT T:
Port Orchard City Cler p •
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APPROVED AS TO FORM: „ IM11 F1„�,���`
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Port Orchar Ci Atto y
WEST SOUND UTILITY DISTRICT
by:
' Comrnissioa460imfiart
Date of Signing: / 1Z
Wastewater Facilities Management Interlocal Agreement Page 11 of 11
EXHIBIT "A"
GAFFNER'S GARDEN TRACTS, REPLAT PTN
THAT PORTION OF GAFFNER PARK AND LOT 1, BLOCK 7, PLAT OF GAFFNER'S
GARDEN TRACTS, VOLUME 2, PAGE 61 OF PLATS, AND THAT PORTION OF BLOCK
B, AND LOT 1, BLOCK C, REPLAT OF GAFFNER'S GARDEN TRACTS, VOLUME 2,
PAGE 89 OF PLATS, AND THAT PORTION OF VACATED DANIEL AVENUE AND
PORT ORCHARD STREET AND FRONT STREET, PER KITSAP COUNTY
COMMISSIONER'S JOURNAL, VOLUME 3, PAGE 326, AND THAT PORTION OF
VACATED BEACH DRIVE, BAY STREET AND OLNEY AVENUE, PER KITSAP
COUNTY COMMISSIONER'S JOURNAL, VOLUME 13, PAGE 337 AND VOLUME 15,
PAGE 242, ALL IN THE NORTHEAST QUARTER OF SECTION 25, TOWNSHIP 24
NORTH, RANGE 1 EAST, W.M., IN KITSAP COUNTY, WASHINGTON, DESCRIBED AS
FOLLOWS: COMMENCING AT THE EAST ONE -QUARTER CORNER OF SAID
SECTION 25; THENCE NORTH 1015'24 EAST, ALONG THE EAST LINE OF THE
NORTHEAST QUARTER OF SECTION 25, 1924.48 FEET, TO THE CENTERLINE OF
COUNTY ROAD (BAY STREET); THENCE NORTH 72136'57 WEST, ALONG
CENTERLINE OF BAY STREET, 221.24 FEET; THENCE CONTINUING ALONG THE
CENTERLINE OF BAY STREET, NORTH 85°38'37 WEST, 684.22 FEET; THENCE
LEAVING SAID CENTERLINE, SOUTH 4021'23 WEST, 30.00 FEET TO THE SOUTH
RIGHT-OF-WAY MARGIN OF BAY STREET AND THE TRUE POINT OF BEGINNING;
THENCE SOUTH 85038'37 EAST, ALONG SAID SOUTH MARGIN. 111.89 FEET TO A
POINT OF CURVATURE; THENCE SOUTHEASTERLY ALONG A CURVE TO THE
RIGHT, HAVING A CENTRAL ANGLE OF 79014'02 AND A RADIUS OF 35.00 FEET FOR
AN ARC DISTANCE OF 48.40 FEET TO A POINT ON THE WESTERLY RIGHT-OF-WAY
MARGIN OF OLNEY AVENUE; THENCE SOUTH 6124'35 EAST, ALONG SAID
WESTERLY MARGIN, 855.33 FEET; THENCE CONTINUING ALONG SAID WESTERLY
MARGIN SOUTH 5044'55 WEST, 82.44 FEET; THENCE LEAVING SAID WESTERLY
MARGIN NORTH 88020'59 WEST, ALONG THE SOUTH LINE OF THAT CERTAIN
PROPERTY AS DESCRIBED IN DEED RECORDED UNDER KITSAP COUNTY
AUDITOR'S FILE NO. 35866,256.46 FEET; THENCE NORTH 19045'10 EAST, 133.17
FEET; THENCE NORTH 16123'27 WEST, 185.57 FEET; THENCE NORTH 1013'42 WEST,
87.99 FEET; THENCE NORTH 21020'01 EAST, 45.33 FEET; THENCE NORTH 49°59'19
EAST, 59.30 FEET; THENCE NORTH 85038'37 WEST, 185.44 FEET; THENCE NORTH
9023'28 EAST 200.57 FEET, TO A POINT OF CURVATURE; THENCE NORTH
WESTERLY ALONG A CURVE TO THE LEFT, HAVING A CENTRAL ANGLE OF
29021'49 , AND A RADIUS OF 362.69 FEET FOR AN ARC DISTANCE OF 185.88 FEET;
THENCE NORTH 19058'21 WEST, 76.86 FEET, TO A POINT OF CURVATURE; THENCE
NORTHEASTERLY ALONG THE ARC OF A CURVE TO THE RIGHT HAVING A
CENTRAL ANGLE OF 124011'18 , AND A RADIUS OF 35.00 FEET FOR AN ARC
DISTANCE OF 75.86 FEET TO A POINT OF REVERSE CURVATURE; THENCE
EASTERLY ALONG A CURVE TO THE LEFT, THE CENTER POINT OF SAID CURVE
LYING NORTH 14012'57 EAST, 746.78 FEET, THROUGH A CENTRAL ANGLE OF
9051'34 , FOR AN ARC DISTANCE OF 128.50 FEET TO THE TRUE POINT OF
BEGINNING. CONTAINING 6.14 ACRES.
SKWRF Fixed Asset List
As of 12/31/2013
EXHIBIT "A"
Asset Description Installed Life Orig Cost Accum Depr Book Val
JAE
Treatment Pit -Aeration Diffuser
500-0036
CIP03-Aeration Diffuser System
01-01-2004
120
40,273
40,273
0
500-0037
Aeration Diffuser System
01-04-2005
120
606
545
61
JAE
Treatment Plt-Aeration Diffuser
40,879
40,818
61
JCE
Office Equip & Furniture
02181
Canon Copier
01-01-2004
120
6,317
6,317
0
02188
Telephone System
01-01-2005
120
4,794
4,313
481
02202
Ricoh Copier MPC2800
01-01-2010
120
6,767
2,435
4,332
500-0021
CIP06- Office Furniture
01-01-2007
120
27,154
18,945
7,714
JCE
Office Equip & Furniture
45,032
32,010
12,527
JCO
General Plt-Computers
02184-6
Dell Monitors (3)
01-01-2005
72
1,517
1,517
0
02195
PowerEdge Server
01-01-2004
72
2,631
2,631
0
02216
Dell Optiplex GX620
01-01-2007
72
1,731
1,731
0
02218
Panasonic Laptop CF-51
01-01-2007
72
3,206
3,206
0
500-0012
Optiplex Computers
01-01-2004
72
2,314
2,314
0
500-0094
Telemetry
01-01-2008
36
5,951
5,951
0
JCO
General Plt-Computers
17,351
17,351
0
JFM
Flow Measuring Devices
02147
F1exMaster Flowmeter
01-01-2005
120
3,664
3,296
368
500-0022
1996 Capital Expenditures
01-01-1997
120
2,327
2,327
0
500-0023
Digester Liquid Sensors
01-01-2001
120
4,125
4,125
0
500-0024
Foxboro Magnetic Flow Transmitte
01-01-2002
120
1,269
1,269
0
928-0015
Electromagnetic Flowmeter
12-01-2013
180
11,274
63
11,211
JFM
Flow Measuring Devices
22,659
11,080
11,579
JLE
General Plt-Lab Equipment
02112
Digester Flow Meter
01-01-1999
120
3,316
3,316
0
02146
Gas Detector
01-01-1999
120
1,637
1,637
0
02164-1
Sampler
01-01-2001
120
4,739
4,739
0
02164-2
Sampler
01-01-2001
120
2,944
2,944
0
02167
Incubator
01-01-2002
120
920
920
0
02194
Harvey MC10 Sterilizer
01-01-2006
120
5,791
4,631
1,160
500-0066
1996 per B/S-Capital Expenditure
01-01-1997
120
17,664
17,664
0
500-0067
Effluent Sampler
01-01-1999
120
3,779
3,779
0
500-0104
PST8 SamplerPST8D1F1C7H2
O1-01-2008
120
2,761
1,655
1,107
500-0105
XS204 Balance 220g x 0.1MG
01-01-2008
120
4,064
2,436
1,628
JLE
General Plt-Lab Equipment
47,613
43,719
3,894
JOU
Outfall
500-0038
1996 Capital Expenditures
01-01-1997
420
499,516
242,622
256,894
JOU
Outfall
499,516
242,622
256,894
JSD
Treatment Plt-Sludge Dewatering
02174
Conveyor Lifting Device
01-01-2004
180
3,198
2,131
1,068
1
SKWRF Fixed Asset List
As of 12/31/2013
EXHIBIT "A"
Asset Description Installed Life Orig Cost Accum Depr Book Val
500-0026
Sludge Equip"87
01-01-1997
180
339,754
339,754
0
500-0027
WAS Primary Pump
01-01-2000
180
914,558
853,576
60,982
500-0028
Progressive Cavity Pump
01-01-2002
180
11,533
9,225
2,308
500-0030
Odor Control Sludge Dewatering
01-01-2002
180
46,496
37,194
9,302
500-0031
Engineering Upgrades
01-01-2003
180
204,692
150,101
54,591
500-0032
Centrifuge Project
01-01-2003
180
485,088
355,723
129,365
500-0034
Flotwegg Centrifuge Rebuild
01-01-2005
180
6,945
4,164
2,780
500-0035
CIP05-Centrifuge Parts
01-01-2006
180
49,251
26,263
22,987
500-1213
CIP 10-Odor Control
01-01-2013
180
21,785
1,307
20,478
928-0016
Flottwegg
12-01-2013
180
30,491
169
30,322
928-0017
CIP12-Disc Thickener
12-01-2013
180
177,514
986
176,527
JSD
Treatment Plt-Sludge Dewatering
2,291,304
1,780,595
510,710
JST
Gen.Plt-Structure & Improvement
500-0001
Initial Plant
01-01-1983
420
7,715,242
6,833,465
881,778
500-0002
Plant General Upgrade
01-01-1996
420
151,062
77,686
73,376
500-0003
Storage Shed
01-01-1997
420
20,718
10,061
10,657
500-0005
2 Chem-Pruf Doors
01-01-2006
420
6,469
1,477
4,993
500-0006
CIP05-Shop Remodel
01-01-2007
420
24,769
4,952
19,817
500-0007
CIP05-Methane Gas Pipe
01-01-2007
420
62,429
12,484
49,945
500-0008
CIP-Mud Room
01-01-2007
420
2,943
589
2,354
500-0090
CIP-Metathane Pipe
01-01-2008
600
14,299
1,714
12,585
500-I 101
CIP I I -Rebuild 2nd Clarifier
01-01-2012
600
85,989
3,096
82,894
500-7001
2007 Plant Exp from City of PO
01-01-2008
600
21,525,250
2,324,762
19,200,488
500-7002
Capitalized 2007 CIP Project
01-01-2008
600
485,578
57,103
428,475
928-0014
Glass Windows
12-01-2013
600
99,753
166
99,586
928-0019
CIP08-Reclaim Water System
12-01-2013
120
881,051
0
881,051
JST
Gen.Plt-Structure & Improvement
31,075,552
9,327,553
21,747,999
JTE
Treatment Plt-Equipment
02183
Eurodrive Elec Motor
01-01-2004
180
1,642
1,093
549
500-0039
1996 B/S -Capital Expenditures
01-01-1997
180
2,056,193
2,056,193
0
500-0040-1
Gas Piping & Burners
01-01-1998
180
28,213
28,213
0
500-0040-2
Varec Flame Assembly
01-01-2005
180
5,239
3,141
2,097
500-0043
Primary Clarifier -Rehab
01-01-1999
180
16,559
16,559
0
500-0044
1999 per B/S Capital Expenditure
01-01-2000
180
10,153
9,476
678
500-0045
1999 per B/S Capital Expenditure
01-01-2000
180
530
501
36
500-0046
Variable speed Control
01-01-2001
180
9,931
8,605
1,326
500-0047
Bowl Assembly -Centrifuge
01-01-2001
180
5,529
4,790
739
500-0048
Wetwell monitor
01-01-2002
180
3,899
3,117
782
500-0051
Sand Handler -small Trash Pump
01-01-2005
180
1,851
1,108
742
500-0052
Hydromatic Pump
01-01-2005
180
4,911
2,944
1,966
500-0053
Hydromatic Pump
01-01-2005
180
5,403
3,240
2,163
500-0055
Honeywell 7800 Contrls
01-01-2006
180
5,271
2,809
2,462
500-0056
Primary Scope
01-01-2006
180
13,607
7,255
6,352
500-0057
T3 Aerator Strips
01-01-2006
180
8,631
4,601
4,030
500-0058
CIP04-Digester Mixing System
01-01-2006
180
264,587
141,109
123,478
500-0059
CIP05-Class A Digester System
01-01-2007
180
85,038
39,681
45,357
SKWRF Fixed Asset List
As of 12/31/2013
EXHIBIT "A"
Asset Description Installed Life Orig Cost Accum Depr Book Val
500-0060
CIP05-Chlor System
01-01-2007
180
52,535
24,513
28,022
500-0061
CIP-Gas Instrum
01-01-2007
180
764
357
408
500-0095
Moyno Pump
01-01-2008
180
12,681
5,070
7,610
500-0096
Curtis Reciprocating Compressor
01-01-2008
180
5,202
2,079
3,123
500-0097
324TC Footless Reliance Motor
01-01-2008
180
6,968
2,786
4,183
500-0098
Exp Tank w/ Seismic Restraints
01-01-2008
180
3,987
1,593
2,394
500-0099
Moyno Pump
01-01-2008
180
18,784
7,512
11,272
500-0100
Mag Meter w/ Protection Plate
01-01-2008
180
4,262
1,703
2,560
500-0101
CIP07-Dechlorination
01-01-2008
180
10,992
4,395
6,597
500-0102
CIP07-PLC Integration
01-01-2008
180
19,958
7,982
11,976
500-1001
CIP08-Zenon Mods
01-01-2011
180
65,049
11,708
53,342
500-1002
CIP 2010-PLC Integration
01-01-2011
180
17,772
3,199
14,573
500-1210
CIP08-Zenon Project
01-01-2013
180
19,777
1,187
18,590
500-1211
CIP09-CAS Blower
01-01-2013
180
201,171
12,070
189,101
500-1212
CIP09-Water Heater
01-01-2013
180
22,565
1,354
21,211
500-8001
5 CIP 2008
01-01-2009
180
62,597
18,642
43,554
928-0001
CIP12-Non Portable Water Booster
06-01-2013
180
36,845
1,433
35,412
928-0002
CIP12-Grit Classifier & Reroute Line
06-01-2013
180
88,316
3,435
84,882
928-0008
3 Way Valve
08-26-2013
180
11,899
277
11,622
928-0018
CIPI I-Cahts Modifications
12-01-2013
180
104,749
582
104,167
928-0020
CIP12-Instrumentation Upgrades
12-01-2013
180
16,076
0
16,076
JTE
Treatment Plt-Equipment
3,310,137
2,446,309
863,434
JTO
General Plt-Small Tools & Equipment
02162
Scaffolding Kit
01-01-2002
120
1,802
1,802
0
02169
10 ton puller set
01-01-2002
120
550
550
0
02170
1/2" hole hawg drill
01-01-2002
120
322
322
0
500-0080
Pressure Washer
01-01-1997
120
2,492
2,492
0
500-0088
Diesel Compressor
01-01-2005
120
9,602
8,641
962
JTO
General Pit -Small Tools & Equipment
14,768
13,807
961
JVE
General Plant -Vehicles
500-0062
1983 Dump Truck (P.O.)
01-01-1997
120
81,256
81,256
0
500-0103
Forklift at WA Liftruck
01-01-2008
120
22,322
13,391
8,931
500-1100
Ford F350-96141
01-01-2012
120
26,976
4,856
22,121
500-1300
2010 Ford Escape
05-01-2013
120
12,500
750
11,750
JVE
General Plant -Vehicles
143,054
100,252
42,802
Totals
37,507,865 14,056,117 23,450,858
3