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CHV COUNUL King C.tunty,State Of Washington
King County Courthouse SeaNlr Wasiingtdn 98704 Ttlrphaat 1106) 344
TO ALL GOVrli"nAL UNIETS ADDRESSED: April 19, 1982.
IN RE:
T.F. #4 1: K,C,W,D, e69!77/Rg - Proposed Consolidation
Tha King County Boundary
With Review Board take@ this mans of informing all
Withh the
Board.Potentially interested parties of Notices Of In•.ention that are tiled
Bo
The anclo#ed meP lmlicates the area involved in an action presently
Pending before this Board. If you feel this at it On should be reviewed
by the Boundary Review Board, you may r4Queet review pursuant to RCII 36,93.100(,). This office will be available on request.
Your# very truly,
kI 0 DowKEPT" BOARD
4,Cs��✓� �.7
G. BRICE MARTIN,
GBMIP" Executive Secretary
Enclosure
XC: The Honorable Lois North 6 Bruce Laing, Ruby Chow, King County Couny
The Honorable City Council; City of Renton; City of Seattle, City of
The Honorable Board of Commissioners, K.C.W,D, #14; #2S; PSI; 063; a
6125; K.C,F,P,D, 1i1; ell; #18; 920; 040; Bryn Mawr Sewer District
king County Fire Marshall
Renton School District 0403
South Central School District 1406
Sesttle School District 01
King Subregional Council
Sesttle_King County Department of Public Health
Municipality of Metropolitan Seattle
Port of Seattle
Washington Surveying 6 Rating Bureau
All King County Boundary Review Board Members
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WATER DISTRICT I26
TOTAL AREA - 435 ACRES
KING COUNTY WATER DISTRICT NO. 88 sv
P.O. BCX 78317
SEATTEE,WASHINGTON 98178
April 26, 1y02
Public rorAs Department
City Rentou
cjo Rogprt S. Bergstrom, i.c.
Subject: rroposed Joint skyway/west hi" Resevoir
Dear oir:
king Jou::ty hater .)Istrict so3 is i::terested iu the join roservoir
as outlined 1n your lattor of April y, 19o2.
As you are trobpoly aware, 41;69,77 k 38 will be asking; our
customers to approve the 3 alstric4 consoiidatiou st the ,Nov.
elections.
Very truly yours,
wiles n. i'ste• a
Commissioner Tres. of oa.
OF RF
i
r.
PUBLIC WORKS DEPARTMENT
p %ICHARD C nOI�GNJt • DIRECt,�R
p $ MUNICIPAL BUILDING 700MILLAVE SO RENT044 WASH 98066
P e
\"to sE � 7a6 '�5 1569
SEv INTEROFFICE HEMOW1h9
BARBARA Y. SHINPp(;H
MAYOR
To: Larry Warren, City Attorney
From: Dick Houghton, P/W Director
Subject: Water District Mo. 63 Water Sales Contract
with Jolnt West Hill Reservoir Construction
Please find attached for your review the draft contract
between Renton and Water District No. 63 for water sales
from Renton to the district and provisions for joint con-
struction and operation of the West Hill Reservoir, Pump
Station, Well No. 9 and transmission mains. This contract
is a requirement to satisfy the 1/2 Million Dollar state
grant.
REB:jft
Attachment
KING C*4TY WATER DISTRICT NIOBER 77
P O BOX 78457•SEATTLE.WASHINGTON 98178.(205)772-5274
Robert E. Bergstrom P.E. April 29. 1982
Engineering Supervisor
Municipal Building
200 Mill Avenue South
Renton, Washington
98055
Mister Bergstrom:
TTue commissioners of King County Water District Humber 77 are
interested in the pursuit of a state :ant for the construction
of a water reservoirletandpipe, pump station, water mains and
booster pump station on and near the Dimirt Junior High School
grounds.
Although we will not participate in the construction costs we
are Interested in a possible purchase of water through a long
term contract dependent upon the rate charges. We would par-
ticipate, of course, in item 44, the booster pump station, to
our district.
Sincerely,
r'
Kenneth R. Harmon, clerk
Water District *77 of
King County
KRHlalo
RING COUNT! WATFA DISTRICT #63
P. . Sox 78W
Seatt.. WA 98178-0068
:Say 10. 1982
Robert 3ergetr�m
kagineering Sapervisor
eublic Yorks Dept., City of Renton
200 ?d-'l Avenae So.
Renton Wk 98%5
Dear !'.r.. '3erg3tr:i
This is to confirm King County Water District M631e
interes' in pursuing the proposed joint Skywaytweat
Hill Reservoir Plan. Final ooMitnemt Would be cased
on onr review of testa and receipt of Referenda• )8
monies.
'lease keep us appraised of actions regarding the proposal
and p-orida a timeline setinate for cur review.
Sincerely,
Charles H. Talmage
Secrat:,ry
King County W..%-r ulatrlct #63
PROJECT SUMMARY
FOR
PROPOSED WEST HILL FACILITIES
APPROACH
The City of Renton would own the supply and storage facilities to provide
service to the City's West Hill service area and Water Districts 14 and 63.
The capital cost would be partly funded by a grant from the State Department
Of Social and Health Services (approximately 40 percent). The City, as
the lead agency and owner, would finance the remainder and be paid for the
Districts' share by the Districts for the term of the revenue bonds. The
City and Districts would all benefit from the economies of scale and a 40
Percent grant while resolving severe problems in the West Hill service area.
OPERATIONS AND MAINTENA'10E
The City would operate and maintain the facilities and be reimbursed for the
proportionate share of 0 & M ct,ts for providing supply and storage.
REIMBURSEMENT COSTS
Two costs components are considered: the first is the capital cost or
construction cost for the facilities while the second is the cost for
operating and maintaining the facilities. The former would be paid over a
20-year to 30-year term and then terminate while the 0 & M cost would
fluctuate according to the cost of labor and materials. Costs are summarized
in the following tables.
RH2 ENGINEERING, P.S.
June 1, 1982
1981 ESTIMATED PROJECT COSTS
1. Project Costs $ 1,120,000
2. Project Funds
State Grants $ 354,000
City Revenue Bonds $ 766,000
3. Repayment of Revenue Bonds
(Debt `.service) $ 87,500/Year
Districts' Share 24,500
City's share 63,000
3a. Ccmparison for City alone
City Revenue Bonds (Cost) $ 806,000
City's Debt Service 92,000
4. Cort• per 100 cubic feet to Water Districts 14 & 63
Capital rost recovery $ 0.167/100 CF
0 a M Cost recovery $ 0.19/100 CF
for supply and transmission
Total Cost S 0.357/100 CF
5. Net Savings to City per year
City with Independent Facilities $ 29,000/Year
versus Joint Facilities
($92,00) - $63,000)
"Based on 1981 eW,11ated costs as of March, 1981
a
Engineering
June 28, 1982
S1070.20
KING COUNTY WATEF DISTRICT NO. 63
P.O. Box 78068
Seattle, Washington 98178
SUBJECT: West Hill Joint Use Water System FacllU'es-
Grent Application Status
Gentlemen:
This letter •ummarlaea the statue of the Grant Application made to the
State Department of Social and Health Services under the Referendum No. 38
program for a 40 percent Grant to construct the Joint Ilse Water System
Cacilities discussed previously.
A. You are aware, a preliminary application was submitted Approximately 6
week: ago, and the State has now reacted faverably by forwarding a final
application to us. This means that the Pr t has qualified under their
guldellnee for funding consideration and that they are asking us to prepare
a final application and refine our project cost
Possible. to be as accurate as
As a part of this, we Intend to show a revised map that illustrate• the
reservoir being located on the southern portion of the Junior N1gA School
site and the supply pump station being located on the east aide of Rainier
Avenue, and also showing revised transmission main alignments, all based on
the most recent Information available and the lowest cost for site
acquisition. Functionally, the project In the same as shown In the Went
Hill Facilities Plan Update prepared by our firm In Kay 1981.
At this point, negotiations should be carried further with the City to
develop the conditions of an agreement and also to draft the agreement ao
that the constraints for operatior., maintenance, and retirement of debt for
the system can be determined. This would also have an effect on the rate
that would be charged to all participants in the project.
Water Districts 69, 77, and 88 have expressed renewed Interest in the
Project, and they currently are reviewing a proposal to modify the study
that was performed for you and the City to determine the facilities
necessary to provide service to them. We have requested a response from
them Ly July 7, 1982, to indicate, on A preliminary basis, their intentions
1410 Market Street,P0,Boa 1 180,Kvklan0.Washington 98033(206)827.6400
KING COUNTY WATER DISTRICT NO. 63
June 28, 1982
Page Two
regarding whether to participate in the project. Should they decide to
participate, the cost for facilities which are attributable to thee can be
included in the Grant Application, and there is the advantage that they
could reduce the cost per hundred cubic feet of water to everyone due to
the economies of scale. We believe, therefor*, that It is in all
pa.ticipanta' best interests to encourage these Districta to participate in
the project.
In summary, the next steps are, 1) to fill out and return the completed,
final application to the State, 2) to have representatives of the City and
the Districts review the preliminary recommendatione for a joint operating
agreement and develop a drat_ agreement, and 1) to determine whether Water
Df.@tricts 69, 77, and 88 will participate in the project. We will
certatnl) Keep you abreast of any development regarding the project as the
event@ occur.
Sincerely,
RH21ENGINEERING, P.SS../
Richard H. Harbert, P.F.
altG�Q�..Gc�.
Ronald R. Reinke, P.E.
RHHIRRH:Ire
cc: Bob Bergatrom, City of Renton ,
Ktng County Water D14tri^t No. 14
�RgFT
August 12, 19R2
S105?.01
KING COUNTY WATER DISrkicT No.
Renton, Washington 98055
Subject: West Hill Joint-Use Reservoir Project
Dear
hnelosed are copies of tables and other documentation indicating th_ design
criteria and the associated costs of the proposed joint use facilities ta•reservoir, pump station. and transmissions main for the Renton-West Hill
and Districts service area. These document, reflect the dlffereet
combinations of participation of Water Districts Noa. 1s, bd, 69, ii, and
the
In this project. Lust figures for all combinations of participation by
[he Districts are tabulated sad surarired in Table, 1 thru o.
The facilities have been sited based on the projected year 2000 maaiaw day
demand for the various Districts. The cost per 100 cubic feet of water for
each District Is based on I9g0 and 19R1 actual consumption. The costs
consist of the following three factors:
1) A charge per 100 cubic feet to retire the debt on the bonds sold
by the City of Renton for the construction cost of the facilities.
:) A 30% Increase in the rate computed Above to satisfy bond
coverage, -
A charge per 100 cubic test which 1s added to 1) and 2) 'have, and
reflects the average cost of operating and maintaining the supply
to the joint facilities from the Renton water sy,tem and Qso
operating and maintaining the Joint facilities. The unit charge
Is based on the City of Rem on's actual operating and maintaining
cost for its entire System, and the share of the total amount of
water consumed by each District.
We anticipate that the City can Goleta bonds with a 15-year term at an
annual iiterest rate of 12% for construction of the facilities. The unit
charge* to each District computed in 1) and 2) above will therefore
tsniaate at the end of the 15wear term. The unit charge for the costs to
supply "ter to the facilities a computed in 1) above would be computed
annually by Renton based on actual cost. It is noted that the Districts
could reduce the initial unit charges computed above by using a graduated
payment plan or by extending the term of their particular payment schedule.
(The rate of the graduated payment plan is tabulated for reference In
Tables 3-6.) we need to obtain City Council approval of this procedure
since, for expendiency, we have simultaneously suhwitted a copy to the
Districts and the Council.
Districts should compare these unit costs with Seattle's rate schedule
(including allowances for imereaking demand metering charges aN
anticipated inflation, rates for the Seattle Supply) when finalizing their
decision to participate in the pro]ect.A draft contract has been prepared
and to Included with this letter. Please refer to thls draft contract for
details of the rate schedules.
The City of Renton Is committed to the construction of the proposed
facilities on the west Hill, and intends to proceed. The construction
costs for the City without participation by the Districts are shown in
Table 1. The costs Including Districts' participation are shown in Tables
3-6. These costs are based on the City o• Renton assuming the sane costs
as if It participated in the project none. Tee inclusion of one
District's participation increases the pusslbiltty for Referendum 0 Brent
eligibility and, therefore, reduces the net construction costs out of
pocket . Additional Districts' participation does not affect the net
construction cost to the City but does Increase the City's bond
requirement. The key point here is that by working together we can reduce
everyones' costs for providing adequate facilities.
The various combinations of participation by the Districts are somewhat
complex with regard to costs In alved ono the benefits Afforded and should
be reviewed carefully. It is our lrtention to explain the development of
costs and our joint alternatives at the August 18th meeting. Please feel
free to contact me If you have questions or commentn.
Very truly yours,
Rob.rt E. Bergstrom, P.E.
Engineering Supervisor
President
Enclosures-x
CASH FLOW SCHEDULE
RENTON WEST HILL JOINT-USE FACILITIES
198" Total S 36,000.00
December S 16,000
1983 Total $1 ,327,000,00
January $ 36,000
February 42,!)00
March 42,C00
April 42,),30
May 42,000
Ju,e 45,000
July 52,000
August 136,000
September 136,000
October 136,000
November 309,4(.0
Decembe, 309,00P
1 M4 Total S 600,000,00
January S 120,000
February 120,000
March 120,000
April 170,000
Kay 120,000
PRESENTATION AGENDA
RENTON JOINT-USE FACILITIES
1. Introduction
2. Physical Facilities; Sec. map, Facilities Summary
a. Extra facilities for 69, 77, 88
3. Advantages of Joint-Use
a. Improved fire flow
b. Nn demand charges
C. 15-year capital Cost termination or
d. 23-year capital cost termination
4, Financial Characteristics
a. Use handout for reference, explain structure
b. Seat-le cost rurves
c. W.D. 63 cost curves
d. 15-year recovery/negative amortization
e. 23-year recovery/negative amortization
f. Cost ravings Renton $400,000
63 $314,000
14 $1501000
69, 77, 88 r $300,000
g. Combinations of participation
h. Questions
Water District 14's main function and intent is to r-1,.ly water to its cupturnse
At the least `st possible. We have indicated that we wou'd like to be informed of
the progress of the Nest Hill prv,ieet tilt have not made a commitment to become an
active participant.
Fourteen has signed a long term contra^t with Seattle and, if it appears to be
more cost refective to purchase water from 'Renton, the terms of the Seattle contract
must be delt with. If the contract with Seattle ip terminated, the District nay be
required to financially compensate the R, tonal slater Supply System and nullify any
coat savings.
Rentonls proposed metering shoss fourteen with two meterp: are located at 94th
& NN 1,th and the other mated at 90th 4 So. 116th (N.E. corner of the Districts
water shed). loth meters appm,, to by 1)Ated in the wrong place. The District does
not need a aster in the lower preasur- zone (area presently and adequately served by
the Districts "Ile). 4rea served by "Seattle water is everything smith of So. 119th.
If fourteen has any connection to the nroponed Nest Hill supply, the lo✓icnl connec-
tion and meter location appears to be 80th Ave. So. & So. 123rd St. or at v,- end of
the line suet north ?f 124th & 90th Ave.
The City of Renton can install their proposed "Supply" line through the District:
franchise area one of two says: ( I) obtain in agreement with fourte,^i to operate und-
our franchise or (2) request from the county a double franchise to install the supply
line within the county right-of-way.
Questions:
1. Are the proposed plarm going to be submitted King ^ounty for approval?
2. Under what fran.hiee sill the water main be iuntalled?
3. Does the proposed contract provide for the connection to each district^
4. What are the costa to each district and how are the coats determined?
5. What protection will ear. district have to voice opinion and policies that
will affect rates and tnmilp
our present cost for water from Seattle is .21 cents per 100 cubic feet plan abnv
.11 to .12 cents for demand charge and meter charge.
• Cc-Cam 0
Cc oporation Committee King County Water Districts 069- 077 a88
Mr. Richard C. Houghton
Director, Public Works Department
200 Mill Avenue South,
Renton, Washington, 98055
Dear Mr. Houghton:
Reference is made to your correspondence of August 12, 1982,
regarding the West Hill Joint Use Reservoir Facility.
After careful review of the contract for "Joint Water Supply,
Storage and Transmission", whicn your office developed and forwarded
for our signatures, it is our opinion at this time that because of
the economics involved our districts would be :11 tdvised to partici-
pate in the development of your West Hill Facility.
Review of the contracts we have with the Seattle Water Depart.
ment indicate that we would be ccntingently liable for our contin.
uing share of capital improvements the Seattle Water Department
puts in place during the term of our contact with them. This situa-
tion would exist regardless as to where we acquire our water. There-
fore, it appears that the Water Districts in the Skyway area that
have contracted with Seattle Water Department caanont participate in
your West Hill Project without being put in the position of being
liable of duplicate facilities of both the City of Renton and Seattle
Water Department.
It is suggested that your office discuss with the Seattle Water
Department this situation to see is they would be willing to negotiate
that portion of our contracts to eliminate those paragraphs of the
contract, or release u, from any future liablity for such capital
improvements.
li Your office would be successful in obtaining relief from the
indicated liabilities, at that time, we would be glad to sit down with
you and discuss your proposals again.
Sincerely ,
Seattle Water Department
Kenneth M. Lowthian
Matey Districts, 14, 63, 69, 77, BE AcTir�c 5' CR G77fRy
State of Washington Department of
Social and 9ealt.*. 'ervir,Ps
OFF Rfl.
� T
J 7
PUBLIC WORKS DEPARTMENT
RICHARD C HOUCHTON • DIRECTOR
MUNICIPAL BUILDING 300 MILL AVE.SO RENTON.WASH 9e016
P" 206 235.369
BARBARA V. SHINP(XH
MAYOR
August .5. 1982
Seattle water Department
water Management and Engineering
2700 Airpor• Way South
Seattle, Washington 98134
Attention, Mr. Jim Miller
Director, water Management and Engineering
Subject: west Hill Joint-Use Facilities/Pur,eyor Contract
Dear Jim:
The City of Renton has completed its planning efforts and financial
evaluation for the West Hill Joint-Use Facilities in which the various
Water Districts in the West Hilt/Skyway area are interested in participating.
1'he major objective of the joint-use facilities would be to obtain better
hydraulic behavior, improve fire flow capabilities, and increase reliability
for the area served. In doing so, the ability to reduce peak flow rate
fluctuations and, therefore, avoid demand charges would also be provided.
The facilities are grouped according to bro functions:
1. Provide storage for equalizing and standby purposes,
transmission pipelines to convey the water from storage
and pump stations where necessary to provide hydra�-'ic
elevations which are compatible with the pressure zone
be,ng served.
2. Provide supply to the West Hill/Skyway area from the
City's wells.
Seattle Water Department
August 25, 1982
Page Two
As you are aware, these Districts are King County water Districts Nos.
14, 63, 69, 77, and 88 411 but District No. 63 have previously signed
the City ct Seattle's water purveyor contract. At this juncture, the
City of Penton intends to proceed jointly with District '1o. 63 in
developing facilities. However, the remaining Districts are currently
interested in pa• ' cipating since they are experiencing demand charges
and need to improve fire flow capability. Further, it appears that the
City of Pentun can produce and sell water to these Districts at a
lower rate than the City of Seattle.
are, therefore, interested in knowing what the City of Seattle's
position is in regard to the referenced Districts' participating in
either joit.t-use supply or storage projects or both.
It appears that Section 1 ,B.6 and others establish a framework for
responding. Further, it also appears that the City would be in a
position where the supply to these Districts is an insignificant quanity
and, therefore, virtually no change in operations and maintenance unit
costs are associated with these Districts no longer obtaining supply from
the City of Seattle. Our final point is that there appears to be no
additional capital costs which have been incurred since the contract
execution which would be attributable to the Districts.
Thank you for your consideration of this requwst. We await your
description of position.
Sincerely,
T�4 D
Robert E. Bergstrom, P.E.
Engineering Supervisor
KING COUNTY WATER DISTRICT NO. 6S
P. 0. Box 78068, Skyway Br.
Seattle WA 98178
.August 31, 1982
Mr. Richard C. Houghton
Director; Public Works Dept.
200 hull Avenue South
Renton WA 98OSS
Dear Mr. Houghton:
This letter is to confirm that the Commissioners have in
principle approved to proceed with our participation in
the Joint Water Supply, Storage and transmission project
with the City of Renton. We have submitted the proposed
contiict to our attorney for review and will advise you
of o.r concurrence or suggested contract changes upon
receipt of his recommendations.
Please call if further action is necessary on our part
at this time.
Sincerely,
Charles H . Talmage
Secretary
lc
cc: Richard Harbort
R42 Engineerin,,
1410 Market Street
P. 0. Box 1180
Kirkland WA 98033
OF RFti
*� z
THE CITY OF RENTON
.. _ MUNICIPAL BUILDING 200 MILL AVE SO RFNrON.WASH 98056
�9 MEN
F BARBARA Y. SHINP7CH, MAYOR • FINANCE DIRECTOR
e MICHAEL I MULCAHY
�1'Fo SEPtF' a 235.2558
MEMORANDUM
DATE: September 13, 1982
TO: Robert E. Bergstrom, Engineering Supervisor
FROM: Michael J. Mulcahy, Finance Director qj LLB`-�
SUBJECT: JOINT USE WATER SUPPLY AGREEMENT
We have heard from Jim Gay, Renton's Bond Council, and he has recommended the
following minor modifications to the proposed agreement for water supply and storage
on the lcest Hill:
1. In paragraphs 2a and 2.b, District "V and "districts" appear to be redundant
terms in any final draft of this agreement. It seerns that it should either be
District N63, for example, or "districts" as defined in 2-b, as they might
participate.
2. Section 7, first paragraph, fourth sentence: It appears the 5 should be a 7, and
in the last sentence it appears that the 6 should be an &
3. Paragraph 7, second paragraph: The term "commitment of state grants" should
be interpreted to mean "after execution of the grant contract with the State cf
Washington." In the same paragraph, in the third line, lien position "on" the
gross revenue.
4. Paragraph 8, third sentence: Change the 5 to a 7.
5. Paragraph 12, line 7: District is misspelled.
6. Paragraph 14: It appears that the first sentence is redundant. Suggest
removing the period after Washington and making the comma after costs a
period, deleting the rest of the sentence.
The basic substance of the agreement is satisfactory, and its author should be
complimented.
CC. Rick Harbert, RH2 Engineering, P.O. Box 1180, Kirkland, WA 98033
,Jim Gay, Roberts S Schefelman
George Mack, Roberts 8 Schefelman
1,101 ,000
I,000,ojo
• 900,000
800,000- /
700,000
600,000
N
2
500,000
\\\\
S \N
W \
a 400,DDG r
V J
300,000 \LZ N
V � W
H 200,000 nZi Q
100,000
WATER DISTRICS 63, 30 YEAR TOTAL COST (PARTICIPANTS; RENTON, N.G. 63)
r
PRESEN'ATION AGENDA
RENTON JOINT-USE FACILITIES
1. Introduction
2. Physical Facilities; Sec. map, Facilities Summary
a. Extra facilities for 69, 77, 88
3. Advantages of Joint-Use
a. Improved fire flow
b. No demand charges
c. 15-year capital cost termination or
d. 23-year capital cost termination
4. Financial Characteristics
a. Vse handout for reference, explain structure
b. Seattle cost curves
c. N.D. 63 cost curves
d. 15-year recovery/negative amortization
e. 23-year recovery/negative amortization
f. .:ost savings Renton $400,000
53 $314,000
14 x $150,000
69, 77, 88 z $300,000
g. Combinations of participation
h. Questions
WATER DISTRICT COMMISSIONERS
KING COUNTY WATER DISTRICT NO, 14 Oscar Bartley
8419 South 116th Street B. P. Dove
Seattle, Washington 98178 R. J. Starkovicn
KING COUNTY WATER DISTRICT NO. 63 Charles L. Talmage
P.O. Box 78068 R. E. Storwick
Seattle, Washington 98178 Bruce L. Gould
KING COUNTY WATER DISTRICT NO. 69 Orville Peterson
7126 South 130th Street Harold Hoyt
Seattle, dashington 98178 Theodore Sowers
KING COUNTY WATER DISTRICT NO. 77 Lloyd Garrett
P.O. Box 78457 James Parker
Seattle, Washington 98178 Stanley H. Valandra
KING COUNTY WATER DISTRICT NO, 88 Howard nark
P.O. Box 78317 Milos R. Peters
Seattle, Washington 98178 Patricia Thursen
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September 23, 1982
Robert E. Bergstrom, P.E.
Engineering Supervisor
City of Renton
200 Mill >venue South
Renton, WA 98055
RE: West Hill Joint.-Use Facilities/Purveyor contract
Dear Bob:
This letter is in answer to your August 25, 1982 letter and
a subsequent telephone conversation. You indicated that the
City of Renton is planning to build water facilities in the
Wcst Hill/Skyway area for the purpose of increasinq the pressure,
improving fire flows, increasinq reliability, and reducing peak
flow rates. At this time, the City of Renton intends to proceed
jointly with Water District 63 in developing these facilities.
water District No. 63 has not signed a purveyor contract with
the City of Seattle.
You indicated that the other Skyway water districts (i.e. 14,
69, 77, and 88) are interested in participating in the propused
facilities since they are experiencing demand charges and need
improved fire flow capability. Therefore, you wanted to know
what the City of Seattle's position was with regard to these
districts' participating in the proposed water supply projects
which include storage, transmission pipelines, and pump stations.
The City's position depends on the conditions under which the
purveyors who have signed 30-year contracts will be purchasinq
water from the City of Renton.
Condition No. 1: If the Skyway water districts inter-
connect with Renton's system for summer water supply
peaking purposes in order to avoid a demand charge, this
could be done upon the prior written consent of the
city of Seattle without any penalty according to Section
I.B.S.b. of the Purveyor Contract.
Condition No. 2: If the purveyor wishes to reduce the
amount or water it has contracted for in its Purveyor
Contract, it may do so under the conditions listed in
Section S.B.4. of the Purveyor ;:'ontract. Basically, these
Robert E. Bergstrom, P.E.
September 23, 1982
Page Two
conditions require five years' written notice of the reduc-
tion, approval of the reduction by the City of Seattle, and
a penalty for reducing the amount of water contracted for.
You asked how much t.his penalty might be should the contract-
signing purveyors decide to purchase their water from the
City of Renton. It would require a rather complicated analysis
in order to make a definitive determination of what the penalty
might be in this particular situation. -his analysis would be
quite expensive and time-consuming. However, we have made a
very rough estimate of what the magnitude of the penalty might
be relative to the present commodity rates that the Skyway
water districts are presencl} paying. We have determined that
the penalty which is based on compensating the City and other
purveyors for any increased capital costs allocated to them as
a result of any reduction in water contracted for would he
approximately 50% of the commodity charge that is presently
being paid by the water districts. Ttis amount would probably
vary some over the 30 year term of the contract, but at this
time we would guess that it would still be approximately 50%
of the present commodity billing.
The final point in your letter was that there appears to be
no additional capital costs which have been incurred since the
contract execution which would he attributable to the districts.
You should be aware that the Purveyor Contract does not limit
capital costs to "additional capital costs". The Contract in
Section I.B.4.b, requires that any purveyor reducing the amount
of water contracted for must hold the City of Seattle and other
purveyors harmless by compensating them for as increased capital
costs allocated to them as a result of any suc, rare uIcta'an in
water contracted for. This pertains to existing capital costs
as well as future capital costs during the term of the contract
which would have been allocated to the purveyor in nueetion h�.
now has to be allocated to the City or other purveyors. There.ore.
your point about no additional capital costs is not relevant to
the issue of reducing the amount of water contracted for.
Please contact me at 625-4128 if you have any further questions
on this m
aatter.
ey
n�1
WMI R, F.E.
pC,oW ater Management 4 Engineering
cc: Jeanette P£otenhauer, City Attorney's office
Miles Fuller, Cnairman of Purveyor Committee
Water Districts 14, 63, 64, 77, 88
J'WM:tmd
OF 1?4"1
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PUBLIC WORKS DEPARTMENT
_Z RICHARD C HOUGHTON • DIRECTOR
P F MUNICIPAL BUILDING 200 MILL AVE.SO. RENTON,WASH.6B066
P° 206 235 2569
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BARBARA Y. SHINPOCH
MAYOR
November 2, 1982
S10S3.30
King Co:mty Water Districts 14, 69, 77, and 88
Renton, Washington
Subject: West Hill Joint-Use Facilities Status
Gentlemen:
The status of the West-Hill Joint-Use Facilities is that the State has
now asked the City to identify as accurately as possible who will be
participating in the project and how much it will cost so that they can
grant only the amount necessary for the actual participants and facilities
being constructed. The net result is that the City needs a final response
by :onday, November 8, regarding your participation in the development of
the joint-use facilities.
As you are aware, the City of Renton has corresponded with the City of Seattle
to determine their reaction to the Districts' (excluding District 63)
participation in the joint-use facilities. The City of Seattle responded by
stating that, in accordance with the purveyor agreement, Districts 14, 69,
77, and 88 would be required to financially compensate the City of Seattle
in an amount equal to one half of the revenue Seattle would have obtained for
the remainder of the agreement (approximately the next 30 years). This,
obviously, makes the project economically impractical for the Districts who
signed the purveyor agreement.
The alternatives at this point consist of:
1 . Pursue the City of Seattle to obtain a modified response which
is acceptable to the Districts.
2. Not participate in the joint-use facilities.
3. Participate on a peaking basis only, eliminate the need to buy your
way out of the purveyor agreement, and avoid future demand charges
from the City of Seattle.
King County Wate- Districts 14, 69, 77, and 88
November 2, 1982
Page Two
As you are aware, the City has paid almost all of the costs to date to reach
this juncture where we have now been assured of a grant but need to
respond rapidly with the actual grant amount needed. The City needs to
know your reaction by Nonday, November 8, 1982, regarding which alternative
you wish to pursue. At this point, the Ci'.y has nc other funds allocated
to further pursue this with the City of Seattle and, therefore, further
efforts will need to be funded by the Districts.
Please contact us at your il, ost convenience regarding your decision.
Sincerely,
Robert E. Burgstram, P.E
Engineering Supervisor
REB:Ire
King County Water District No. 14
Omer a�nw Hovecber J, i3c:
R.L swkw,,
a I'Pow
Robert E. Bergstrom, P.E.
Engineering Supervisor
City of Renton
200 Will Avenue So.
Renter., Washington W55
Subiect: West Hill Joint-11ee heilities Statue
Dear T+ob:
The Board of Co JLsionare of King county Water Dirtriet have tevieeed the ean.
aspect:, of the above eubject matter. `.S:e probab! 1a1..ationo and a cort,nued
financial obligation to the 'amity of Seattle &a p ,i iB a wrveyor contract
vakee the participation in the above joint facil. ._a unfeasible for King County
Water District NO. 14.
Of the alternative:, listed in your letter of Novemper 2, 1467, Lumber (3) partici-
pate or a peaking tasis only, has not tee& prev!^usly discussed in dated. It may,
however, be a point of futu interest.
Sincerely,
f r
T. E. Fanwood
Xanagtr
November 8, 1982.
City of Renton
Public ::orks Department
city Hull
enton, -lashington 98055 Att: Hr. Ho3art Burgetram.
Dear B.Ir:
In reference to the converse zin between Mr.:"Iles
Peters and Mr. H. Hoyt of King Counts Water District
0128 and yourself on *v vembcr 3, I'M2 concerning, the
nertici�ation Of Kin:,, Co+aty eater District #128 and
the city of Renton in a joint water facilities on the
lest Hill.
Ao you. are aware that we .have Ptarveyora Contract
with the ^.ity of Seattle and do not at thio time feel
wo can rartfcinRte in a pro,'ert that will force us
to pay k penalty for rurehased water.
We wish to thank you for your effort and courteav
in our past dealings and mavbe in the future thinva
will be it a different level.
Youre truly,
. Oyt n.f en en
tiny County 'rater ;district 0128
7455 South 127th
: eattl , 'onshington
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4/Fa SEP•E MARK E aARBU. sv n.+. c •..••TM•
January 21, 1983 ZAN TTAL r0hTEs .,..,•„• .,..•a.„,,.
TO Richard Houghton, Public Works Director
FROM Lawrence J Warren, City Attorney
RE Water District No. 63 - Water Sales Contract
Dear Dick:
The Contract as forwarded to me has been reviewed with the
following comments.
1. In paragraph 4 of the proposed contract, approximately
nine lines down, there is a reference to paragraph 5
of this contract . However, that is an incorrect
reference. Later in that name paragraph there is a
requirement that the City will maintain and operate
the joint facilities in accordance with high engineering
standards. The word "high" would apparently impose
ggreater operating and maintenance requireu. nts on the
C'.ty than normal. The word should be changed to
'• ecepted'. 'hrevalent', or some other word denoting
the standard in municipal water works Furthermore,
chat paragraph requires the City to carry rablic liabili!.v
insurance with limits in accordance with standard practir
As you may know, the City is considering becoming self-
insured and this requirement then would be arguably
violated,
2. In paragraph No. 6, second full paragraph thereof, I
think there needs to be some qualification. That
paragraph requires that. if a regulatory agency directs
the upgrading of the facilities, the City shall immediately
commence the planning, designing and construction of the
improvements. I do not think we can make that type of
commitment as it would involve funding decisions by
by a later council. For the City to commit to that
Richard Houghton
Page 2
January 21. 1983
type of requirement, at the present , would not bind
a later council, but would leave the City open for
potential damages for breach of contract. The
requirement must be qualified as subject to the
approval of the City Council and availability of
sufficient funds to finance such improvements.
3 In paragraph 7 there is a requirement that the City
issue water and sewer revenue bonds . I an not sure
that the City has committed to issuing those bonds
and we should not pre-dispose the Council to any
such bonds. If the Council has approved such bonds,
we should be careftil to make sure the bouds meet
the requirements of paragraph 7. That job would
probably be for bonding counsel.
4. In numbered paragraph 14 of the agreement there is
a mention to paragraph 7. There are no percentage
shares set forth in oaragraph 7 as mentioned in the
body of this contract.
5. Exhibit "B" and Exhibit "C" set forth certain water
service quantities and projected costs which I presume
your office has reviewed and find to be appropriate.
If not , then new exhibits should be prepared or some
disclaimers included in the body of the contract.
This contract commits the City to substantial expenditures over a
substantial period of time. I feel like I am working a bit in the
dark as I am not aware of all of the negotiations and work that
might have gone into this contract in the past. If you believe
there is any information that I should be aware of before approving
this contract, please let me know. I have reviewed the contract
with an eye for generally accepted legal principles, for conflicts
in numbers cn for incorrect statements. I can express no opinion
about the numbers involved, as T am without specific knowledge
to support any such comment .
If I can provide you with any further information on this topic .
please feel free to contact me.
ru`4'lt<q' L�IL41 f
awrence J.y arren
1JW.nd
Encl.
cc: Mayor
Engineering
February 10, 1983
51053.10
KING COUNTY WATER DISTRICT '!0. 63
Beard of Commissioners
P. 0. Box 78068
Seattle, WA. 98178
Subject: Revisions to Draft Contract Agreement
Gentlemen:
The draft contract agreement for the ,Joint West Hill Facilities has
been revised moderately and copies of the revised agreement have been
attached to this letter for your review. The modifications have been
for the purpose of improving the clarity of Sections 7 and 8 which
deal with the statement of the District's portion of the Debt Service
and also the calculation of payments for operation and maintenance
expenses. Further, exhibits which were not developed and attached
previously are now included with the final draft of this contract.
The exhibits state the respective capacities attributable to the
District and the City and also, therefore, form the basis for the
proportionate share of costs for the Joint Facilities. Also
included in the exhibits is an estimated cost for the Joint Facilities.
It is noted that this estimated cost is higher than what was originally
presented due to inclusion of all costs for Well No. 9 based on a reduced
capacity of approximately 1,200 gallons per minute which is the
capacity needed for the West Hill Service Area. However, it is
anticipated that the cost attributable to the West Hill area will reduce
since it is anticipated that the production capacity from this Well
will be approximately 3,500 gallons per minute.
Further modifications were incorporated based on review by
Mr. Lawrence J. Warren, City Attorney. These modifications have
also improved the contract by eliminating potential pitfalls for the
City. A copy of Mr. Warren's memo to Mr. Richard Houghton„ the
City Public Works Director, is attached for your reference.
1410 Market Street,P.O.Box 1180.Kirkland,Washington 98033(206)82 7-6400
King County Water District No. 63
February 10, 1983
Page 2
A copy of this letter and the revised contract has also been sent to
the Dis+'^ict's Attorney, Mr. Bob Anderson, in order that he may review
the co-tract simultaneously with the Commissioners. It is noted that
Part 15 of ;he contract is new and it directly responds to the District's
desire to include a "buy-in" provision by a future participant in the
Joint Facilities.
I trust Chat these modifications will meet with : Party's approval
and that following review by the City Council anu t .strict Commission,
we can incorporate any final revisiois and thrn consummate the agreemen'
If there are any questions or concerns, please contact Bob Bergstrom,
Ron Olsen, or myself dt your earliest convenience.
Sincerelv,
RH2 ENGINEERING, P.S.
Z" ^9 /!',
Richard H. Harbert, P.E.
cc: Mr. Bob Anderson
Mr. Ror Olsen
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DESIGN/UTILITY ENGINEERING 0 235 2631
n MUNICIPAL BUILDING 200 MILL AVE SO. RENTON.WASH 98055
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BARBARA Y. SHINPOCH
MAYOR
February 17, 1983
To: Larry Marren, City Attorney
From: Dick Houghton, P/W Director
Subject: Contract for Joint Water Supply, Storage,
and Transmission - Water District No. 63
and the City of Renton
Attached is the subject co .ract. Please review for legal content
as soon as possible.
Thanksl
jft
i •
OF RE.
1r
r, OFFICE OF THE CITY ATTORNEY* RENTON.WASHINGTON
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February 18. 1983 zANErrAL rONrES
TO: Richard Houghton, Public Works Director
FROM: Lawrence J. Warren, City Attorney
RE: Contract for Joint Water Supply - Water District 63 and
the City of Renton
The contract as forwarded to me is approved as to legal form
with several minor comments .
1 . Paragraph 4 refers to paragraph 5 and I think that
is an incorrect reference.
Paragraph 7 refers to joint facilities bonds and a
lien position on the gross revenue of the City's waterworks
utility, including a system of sewerage. I suppose that
this inclusion is intentional since water used in the water-
works utility quite often make it back into the sewerage
system.
3, Paragraph 8 d. refers to calculating joint facilities
maintenance and operation expenses, using the cost of the
entire City water supply. It should be realized that this
figure is probably lower than if just this joint facility
was used, as the older portions of the City's water system
are probably cheaper to run.
4. The last paragraph of numbered paragraph 10 has a
partial parenthesia only.
5. I no' c in Exhibits B and C that the water usage
of the District is almost as great as that of the City and
yet the cost of the system is being paid nearly three to one by
the City.
None of the comments herein are substantive so as to prevent the
execution of this contract . 1 /
Lawrence J. Warren
LJW:nd
cc : Mayor
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February 18, 1983
Board of Commissioners
Water District No. 63
P.O. Box 76068
Seattle, WA 98178
Subject: Revisions to hater Sales Contract with
City of Renton
Gentlemen:
I have now reviewed both the original draft and the
revised draft of the proposed joint water supply contract
between Water District No. 63 and the City of Renton. The
following comments are with regard to the revised contract.
which was forwarded to me by Richard H. Harbert. P.E. ,
of RH2 Engineering. on February 10, 1983.
1 . The revised contract has corrected a number of
inaccurate paragraph references contained in the original
contract.
2. Numbered paragraph 4, line 9, incorrectly references
paragraph 5.
3. The last paragraph and sentence of numbered para-
graph 10 is missing the eniing parenthesis.
4. I believe numbered paragraph 15 should give the
District adequate say regarding charges to any late-coming
districts that may request irclusion in this joint water
facility in the future.
S. On page 11. Exhibit C, I presume the word
'estimated" should follow the District's share, the same as
it does the City's shire.
I have discussed the above corrections with Mr.
Harbert and he will see that each of these items are
corrected in the contract. The other matter that I dis-
cussed with Mr. Harbert was numbered paragrar', 8, sub-
section Idl on page 4. I was concerned tha io District's
share of the Joint Facilities Maintenance a. Operation
Expense was being computed by dividing the entire City's
Water Supply Maintenance and Operation cost by the entire
volume of water supplied to the City's service area. My
Water District 463
February 18, 1983
Page 2
concern was that the ::osts should be based upon the new joint
facility, of which the District is a part. According to Mr.
Harbert, it will result in less expense to the District if
the computation is based upon the City's entire Maintenance
and Operation Cost as opposed to merely the Maintenance and
Operation Costs for the new joint facility. I have no
basis on which to agree or disagree with Mr. Harbert and take
his assurance at face value. However, this might be a question
that would t• appropriate for the District to explore further
to make sure that it is satisfied with this way of computing
its share oi- the joint facility's maintenance and operation
expense.
Other than the above comments, I believe that the
revised contract does meet generally accepted legal standards
and principles which will bind both parties for its term.
If I can be of any further assistance or answer any other
questions, please do not hesitate to give me a call.
Very truly yours,
. Robert I.. Anderson
RI.A:j j
,,,n,
Englneerkm
February 21, 1983
S1053.11
CITY OF RENTON
2DO Mill Avenue South
Rentcn, Washington 98055
Attention: Mr. Ron Olsen
Dear Ron:
Attached are two originals and one copy of the current Contract
between the City and District No. 63 for the West Hill Joint
Facilities. T`is version has all corrections/modirications requested
by Mr. Mike Mulcahey, Finance Director, Mr. Larry Warren, City Attorney,
and Mr. Bob Anderson, District No, 63 Attorney.
Please contact me if you desire additional changes. The originals
are ready for the City's and the District's signatures with an original
to be retained by each.
Best Regards,
RH2 ENGINEERING, F.S.
al.
Richard H. Harbert, P.E.
Attachments-3
1410 Market Street,PA Box 1180.Kirkland,Washington 98033 12081 827-64M
UTILITY COMMITTEE REPORT
February 21, 1983
Subject: 1. West Hill Grant Offer/Agreement
11. West Hill Joint Use Water Agreement - City of Renton/
Water District Ne. 63
Ill. Joint Use Agreement for Sewer Services - Renton/Kent
I. The Utility Committee recomments the City accept the Grant offer in
the ameunt of $517,691.00 and the Mayor and City Clerk be authorized
to sign the agreement.
I1. The Utility Committee recommends the Joint Use Agreement between the
City of Renton and Water District No. 63 for water service on the West
Hill be approved and further recommend the Mayor and City Clerk be
authorized to sign the Agreement.
Ill. The Utility Committee recommends the joint use agreement for sewer ser-
vice between the City of Renton and the City of Kent be accepted and
authorize the Mayor and City Clerk to sign said agreement.
Nancy Mathews, Chairman
Robert Hughes, Vice Chairman
Earl Clymer, Member
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DESIGN/UTILITY ENGINEERING 0 235 2631
� IT MUNICIPAL BUILDING 200 MILL AVE.SO. RENTON,WASH.SSM
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1TEO gE PTEJOE
BARBARA Y. SHINPOCH
MAYOR
MEMORANDUM
Uate: March 4, 1983
To: Barbara Shinpoch, Mayor
Maxine Motor, City Clerk
From: Bob Bergstrom, Engineering Supervisor
Subject: water District M63 - Interlocal Water
Agreement for west Hill Reservoir
The City Council recently approved this water District #63/
Renton contract for water sales and defining the responsi-
bilities for the construction, maintenance and operation of
the new West Hill Water Standpipe.
Please find attached the City Attorney's comments. We have
revised this contract in accordance with Mr. Warren's comments,
and also have developed the contract with the advise of our
City Finance Director.
Please sign and return this contract for later signing by
representatives of water District 463•
Thank /Y/oul
REB:jft
Attachments CITE CIEPK
r
INTEROFFICE CORRESPONDENCE
note March 10
TO- Bob Bergstrom, Engineering Supervisor
FROM: Maxine E. Motor, City Clerk
sCe3ECT. CAG 011-83 Water District #63
•......................_............_..__....._.._........-_....__.....-----_--
We return herewith fully executed document(s), as above-
captioned, copy of which we have retained for our official
public records. Copies should be forwarded to
Water District 463.
and the other for your file.
L] Pursuant ro your memo of we return herawtth
docummuttsf, as above-capt toned, which have been signed by
City Officials and need to be torwarded for further execution
by
We return herewith recorded document s), as above-captioned,
copy of which we have retained for our official public records.
Copies should be forwarded to appropriate parties and retained
to necessary for vour files.
C", Please file a fully executed copy with the City Clerk's office
Jfor out permanent records when received.
Thank you.
MEM:db
cc: I
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DESIGN/UTILITY ENGINEERING 0 235-2631
MUNICIPAL IUIIDING 200 R9LL AVF SO. RENTDN,WASK 99096
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\tr0 %Eo1E^"
BARBARA Y. SHINPOCH
MAYOR
March 10, 1983
Water Oistrict tao. 63
P.O. Box 78W,
Seattle, WA 98178
Subject, Renton - Water District No. 63
Water Sates Contract, Renton CAG Ull-83
Gentlewn: -
Please find enclosed an executed original of the Water Sales
Contract for your records.
Rober�C. Bergstrom, P.E.
Engineering Supervisor
jt
Enclosure
e • • CAG 011-83
CONTRACT FOR JOINT WATER SUPPI.Y, STORAGE, AND TRANSMISSION
This contract between the CITY OF KENTON. a municipal corporation of the
State of Washington, hereinafter called the 'City' and KING COUNTY WATER
DISTRICT NO, 63, for and in consideration of the covenants and agreements
rontained herein, it Is hereby agreed by the Parties hereto As follow:
1. Parpose_of Contract It is the purpose of this contract to provide
an agreement for improving the existing water supply, storage, and
transmission facilities serving in* City of Renton west Hill area and King
County Water District No. 63, and also for servtnA expanxion of these areas
in the future and to provide an agreement for operating and maintaining
Joint supply, storage and transmission facilities, and to ensure that the
District will receive the water supply and facilities' capacity stated in
this contract sod that the City will he compensated for providing that "
service.
t. Definitions The following words and Phrases used In this contract
shall Mva-ttie r0U"ing meanings:
A. '_Ctt * shall mean the City of Renton, Washington.
b. 'District" shall mran water District No. 63 of King County,
4ashington.
<. Jntnt Facl titles' shall mean the reservoir, the transmission
Pipelines. the supplypulp station, the portion of Well No. 4
used to supply the District, the City West Bill areas, the
metering facilities, and the necesaary land, rights-of-way,
and other propetty rights required therefor, all as more
specifically described In Exhibit A, attached hereto and by
this reference made a part hereof,
d. "Joint Facilities Costs' shall Include all .:arts sod expenses
attributable to the construttlwn a" Installari..n of Joint
Facilities and financing thetenf, in,1dtnK but not limited
t•r the actual cost of deslKn and construction, 1..1u/sltldn Of
land, compliance with anv applicable envtronwvtal lwrlt:y act
or pr-.cedures, ••ng t Pro r l nit fees, lagai tees, linanctal
consultant fees, interest dartng crntattuetlnn, Jo t nt
►arillt lam sond discount, Cases, nuhltcat ton Cost.• rant fact
admintstratton coats, Gnats In preparlog, rxetultng, ant
-f&.ct init th1A ront rm't, ant .,I her <aata .tnd +apron"
relating to the plAnnina, design, con.trurtlor. Inxt Atlalion,
1
March g, 1303
and financing of the water supply, storage, and transmission
facilities.
e. 'Joint Pecilities Bonds' shall scan water and newer revenue
bond; issued by Renton to pay Joint Facilities Costs of the
Original Joint Facilities or Future Joint Facilities and any
future bonds hereafter issued and sold to refund such bonds
if such refunding of bonds effects a savings to Renton. It
only a portion of the proceeds of any Issue or series of
bonds to devoted to .Joint Facilities Costs or to the
refunding, of Joint Facilities Bonds, the percentage that such
portion represents of the entire proceeds shall be applied to
each maturity of such bonds and the amount of each redemption
of such bonds, and such amounts equal to that percentage
shall be Joint Facilities Bonds.
t. 'Joint Facilities Maintenance And_Operation Expenses" shall
include all tofu and expenses re latinR to labor, fringe
benefits, power, light, water, heat, chemicals, equipment
trcluding repair and replacement thereof, tools, materials,
supplies, insurance premium, contract services, legal
services, inspections, taxes, and "in-lteu-of taxes- other
than those imposed by the City, directly and properly
chargeable to the operation and metntenAnce of the Joint
Facilities.
It. "Joint Facilities Debt Servtce Enpense- shall include the
re intest, prindple, coverage and reserve dep,aits on the
Joint Facilities Bads as defined above.
J. Construcrlon of the Original Joint facilities The City shall
construct the Jot nt Pact titles and advance all Joint Facilities Caste
therefor through the sale of Joint Facilities Bonds. The Joint Facilities
constructed shall be owned by the City.
A. Maintenance and Opt[atlon of Joint Facilities The City shall
supply the District through the Joint Face-tTtties, and the District. shall be
entitled and have the enforceable right to receive therefrom, water service
in (but not exceeding) the quantities specified In Sxhlbit B (attached
hereto and by this reference made a part hereof) subject to (a) the design
capacity of the Joint Facilities to furnish that water at Any one time, (b)
aft of Cad, force "Jeure, or other cause beyond the reasonable ccrtrol of
the City, and (J) change in quantities specified in Exhibit B made
pursuant to Paragraph 6 of this contract. It is recognised by the District
that the City may need to implement -.onservation measures for the entire
City and District service area In order to seat An emergency condition.
The District also would be subject to and support such conservAtion
measures.
The City shall malntaln and operate the Joint Facilities In accordance
with prevalent engineering standards And In conformity with the then
current standards and requirements established by appltcable State and
2
Federal law and agencies having jurisdiction over such matntenance and
operation. Included with such maintenance and operation shall be the
carrying of public liability insurance with limits in accordance with
standard practice unless the City elects to become pelf-Insured. Should
the City elect to become self-insured, the Joint Facilities shall also be
self-tneured by the City. The District shall have the right to observe the
operation and review maintenance at any time provided that a reasonable
time period of notification has been provided to the City.
5. Access to Joint Facilities The District may have access to the
Joint Facilities at any time after a reasonable notification period has
been provided to the City.
6. Future Joint Factllttea suture Jolrt Facilities to he constructed
shall be agree open by the District and the City, but to no event shall be
of less capacity and Quality than is required by applicable Federal, State,
or local standards, regulations, or the minimum capacity and quality which
good engineering practice would dictate under the circumstances. The
District and the City shall confer and agree upon a method for financing
such facilities. The payment of the cost of such Future Joint Facilities
shall be made in accordance with Paragraph 7 of this Contract.
If regulatory agencies with jurtadtetton over the Joint facilities
valldly direct the upgrading of the Joint Facilities by the making of
qualitative laprovesents to such facilities, the City shall tm di
commence the planning. design, add construction of the improvements subject
to the approval of the City Council and availability of sufficient funds to
finance such improvements.
7. Financing Construction and Maintenance of Joint Facilities In
_ —_ T_-_______._.__._..._
consideration for the—___Clty • acquiring, cenrt rutting, 1nK aljtng,
malntatning, and operating the Joint Facilities and as a condition for use
thereof and service therefrom, the District shall pay to the City the
amounts provided for in Paragraph B. All such payments shall be made at
the times and in the smaller specified in Paragraph B.
To finance the Joint Facilities Costs remaining after execution of the
grant contract with the State of Washington, the City may Issue water and
sever revenue bonds (Joint Facilities Bonds) which may have ♦ lien poeitinn
on the gross revenue of the City`s waterworks utility, including the system
of sewerage as a part thereof, on a parity with its outstanding water And
sewer revenue bonds and any bonds hereafter Issued on a parity of lien with
those revenue bonds. Such Joint Factlides goods may be lssueA and sold at
any time after the effective date of this Contract.
If there are any excess proceeda from Joint Facilities Bonds And
earnings from the investment thereof after payment of ail costs relating to
the purposes of su.h Bends, the City shall deposit such excess proceeds and
earnings Into the Bond Redemption Fund for much Bonds for the purpose of
paying principal and interest as they come due or redeem such Bonds prior
to their maturity. at such time such Bonds are subject to prior redespG on.
The charges for the District's share of the Joint Facilities Costs and
Joint Facilities Maintenance and Operation Expenses shall be deemed rater
service charges made by the C'ty to the District.
8. g111tUs_and_ Payments The District's annual billings for Joint
Pact lities should be determined as follows:
a. The Distrtct's total share of the Joint Facilities Debt
Service Expense shall be computed by dividing the District's
share of the estimated project cost as shown in Exhibit C by
the total estimated project cost and then multiplying by the
Joint Facilities Debt Service Expense.
b. The District's annual share of the Joint Facilities Debt
Service Expense shall be determined by multiplying the actual
annual debt servtce repayment schedule for the Joint
Facilities Bonds by the same percentage as in (a) above.
e. The District's annual Debt Service Expense shall be billed at•
a rate of $.17 per 100 cubic feet of water used for the first
year and such per 100 cubic feet rate increased by 8.026 each
year thereafter until the District's total .Aare of the Debt
Service Expense as COa.puted in (a) above has been paid.
If the amount of the billing to the District is less than the
annual share of the District's Joint Facilities Debt Service
Expense as calculated in (b) above. the City shall pay the
difference and is entitled to a rate of return on this
difference at a rate equal to the interest rate on the bonds
until the Distrlc' 's share as determined in (a) above has
been paid by the District.
d. The District's share of the Joint Facilities Mintenance and
Operation Expense shall be computed by dividing the entire
City's Water Supply Maintenance and Operations cost by the
volume of water supplied to the Clty's servtce area and then
multiplying by 0e volume of water supplied to the District.
e. The District's annual billings for the Joint Facilities Cost
shall he the sus of (c) and (d) above. Such charges shall he
divided into equal monthly amounts for each calendar year or
part thereof remaining and shall commence on the first day of
the month first following the month in which Joint Facilities
Maintenance and Operation Expenses are initially incurred.
The City shall bill the nlstrict on the first day of each
rxlendar aonth. The District shall pay by the twentieth day
of the next month, after which time the billing shall be
delinquent_ Charges omitted in one month say be billed in
the following month. Delinquent charges shall accrue
Interest on the unpaid balance at the rate of 12 percent per
annum from date of delinquency until paid.
By October i of each year, the City shall notify the District of the
proposed budget for the Joint Pacilities showing the estimate of the Joint
Facilities Debt Service Expense for the Joint Facilities Bonds and the
estimate of the Joint Facilities Maintenance and Operation Fxpenses for the
ensuing calendar year. The budget amounts will be for Informational
purposes only to provide advance notice of anticipated changes, If any.
By Match 1 (or as anon as practical thereafter) of each year following
the year for which the budget estimates apply, the City shall determine and
notify the District of the actual Joint Facilities Debt Service Expenses,
the actual Joint Facilities Maintenance and Operation Expenses, and the
actual water cc suaption by the District and the City for the immediately
preceding calendar year or part thereof covered by this Contract. If the
actual requirements and expenses exceed the total payments made by the
District, the District within 70 days after such notificatinn shall pay to
the City its share of that deficit. If the actual requirements and
expenses for the District were less than the total payments made by the
District for that preceding calendar year, the City shall retain those
excess payments and credit the excess payments against the next payments
due from the District.
During any year, the City shall operate within the Joint Facilities
budget. Should Joint Facilities Debt Service Expense increase above budget
estimates, the City may amend the Joint Facilities budget and increase the
charges to the District after notifying the District at least 90 days
before the increase shall take effect. Such notification shall state The
reasons for such increase.
9. Covenants to Make_Plyments The District irrevocably covenant.,
s
obligate , and binds Itself to pay to the City the applicable payments and
charges referred to in Paragraph d as water service charges out of the
gross water revenues, and/or water and sewer revenues of the District or
its% such other money legally available to the District for such purpose as
determined by the District. The water service charges shall, subject to
the qualification below, be treated as maintenance and operation expenses
and shall expressly be made • part of the maintenance and operation
expenses of the District's System in any future bond issue or other
financing payable in whole or in pert from the revenues of the System.
Further, the water service charges shall be payable and constitute a charge
prior and superior to any charge or lien of any revenue bonds issuea by the
District payable from the gross revenues of the System, unless such future
bond Issue or other ftnencing shalt he on a partly of Item on such revenues
with presently outstanding revenue bonds and such outstanding bonds do not
petmlt such priority of payment.
5
It to recognized the District say have outstanding revenue bonds
payable In whole or in part frost the gross revenues of the System. Nothing
to this section is Intended to violate, nor shall it be construed to
violate, any covenants respecting those outstanding ponds, and such
covenants, to the extent there Is a conflict between then and this section,
shall control with respect to such outstanding bonds and bonds issued on a
parity therewith.
The District irrevocably covenants and agrees to establish rates and
collect fees for water service, which will be sufficient to pay the vat r
service charges to the City and to meet the covenants of existing bond
Issues which constitute s charge upon the gross revenues of the System.
The City agrees to establish rates and collect tees for water service which
will be at least sufficient to pay the expenses of matntenanct and
operation of the water utility of the City and meet the principal.
Interest, and coverage requirements .f any and all revenue bonds of the
City which constitute a charge upon the gross revenue of such water
utility.
10. Use of Payments Made for Coverage and bond Reserve Payments to
the City "is under ibis contract by the District which represent the
District's share of the coverage requirement on any Joint Facilities bonds
shall be identified a separate account within the office of the Director of
Finance of the City and may be used at the City's option only for any of
the following purposes:
(1) Funding the reserve account In the Rood Redemption Fund for
any Joint Fittlitiet Ronds;
(2) Redeeming prior to maturity any Joint Faclltttes Ronde;
(J) Making extraordinary repstra or replacing any ,'oint
Facilities;
(A) Acquiring, constructing, and installing additional Joint
Facilities; or
(5) Paying any debt service for which the District Is responsible
and the City has paid.
(6) Paying a portion or all of the District's share of the Joint
Facilities Maintenance and OperaCton Expenses.
(7) Any other purpose stipulated by the District.
Until used, money In the coverage fund or account shall be Invested in
any legal Investment for cities and earnings from such investments shall be
deposited Into such fund or account. After all Joint facilities Sonde have
peen redeemed, any money in such coverage fund account shall be returned to
the District on the basis of the District's then share of the coverage
requirement under paragraph R or used in accordance with -he above
purposes.
6 El
Paysents made by the District to the City or transfers from the
coverage fund or accouat for the purpose of funding the required reserve In
any Joint Facilities Bond Redemption Fund, and earnings on the investments
of such funds attributable to such payments or transfers, shall be used by
the City only for any of the following purposes:
(I) To satisfy the required obligations of the reserve; or
t2) To redeem prior to maturity any Joint Facilities Bonds, if
permitted; or
(1) To be used In any plow, for refunding Joint Facilities Bends
with new Joint Facilities Bonds; and
(a) If not used otherwise in (2) and (3), to pay the last
remsining Joint Facilities Bonds payable from that Bond
Redemption Fund.
Earnings In a fully funded bond reserve (attributable to payments made
by the District transferred into a principal and interest account, or an
equivalent account shall be credited against payments required to be made
for debt service by the Districts pursuant to Paragraph R.
H. Furnishing of Books and Records The District will make available
at reasonable [toes to the City for inspection and toying its books and
records relating to the operation of its water utility. At a reasonable
use prtrr to the sale of any Joint Facilities Bonds, the District shall
furnish to the City and Its representatives all public information which
the City my require having a bearing on the issuance and sale of such
bonds.
12. Covenant Against Asefgnmen_ ct Cory eyentt, Merger The District
shall not assign Its obligations under this contract or assign ur convey
its local facilities to any person or entity without first receiving the
written consent for such action from the City Council. The City sh•)1 not
assign its obligations under this contract or convey the Joint Facilities
to any person or entity without first providing the written notice to the
District. The District shall not permit the merger of It or its local
facilities into another municipal corporation without the written coneen_
of the City Council unless the entity resulting from the merger shell
assume and agree to perform all obligations of the merging entities under
this Contract.
13, Holders of Joint _Facilities Ronda The obligations of the
District unn e tht contract nha-F canco- the benefit of the holders of the
Joint Facilities Bonds and bonds issued on a parity therewith,
ta. Effective Date - _Term of Contract The effective date of this
contract shall De then a State of Washington Referendum IR grant Is
committed to pay part of the Joint Facilities Costs, but in no event will
7
this contract take effect unless a Referendum 18 grant is offered by the
State and accepted by the City. This contract shall terminate if the King
County Council shall not approve of the District's and the City's plans of
addition& and betterments to their respective orlitinal general
comprehensive plans for water supply incorporating the Joint Facilities his[
In the event the County shall not approve such plans, the District shall
reimburse the City for costs of design of the Joint Facilities incurred to
the same proportion as the District's share of the Joint Facilities Debt
service Expenses as set forth to Paragraph 8. Because this contract gives
the District and the City rights to use, and, therefore, interest in the
.Joint Facilities, such rtRhts must continue until by agreement they are
terminated. Commencing on the effective date specified above, this
contract shall be for a term of 25 years or such longer period as any Joint
Facilities Bolds are outstanding or the payment thereof is not fully
provided for, secured, and funded, and shall continue thereafter until
terminated. The District may withdraw from the obligations of this
contract with the consent of the City after all bonds are retired or
payment th^reof is fully provided for, secured, and funded. Such
wltndrawal shall not be effective until at least 90 days after the consent
Of the City to obtained.
is. Partielpation _bt_ Others Provision is hereby made for
FOPS
-de ration of providt nR se rvtce [o a third party or parties by the use
Of t;+e Joint facilities or supply from the Ctt)'a or the Dttrict's system
from the Joint facilities. Such considetallor, would be based upon- 1) a '
sufficient amount of unused capacity of the ;OLOL facilities to provide the
service requested. Z) payment amounts that provide compensation to the City
and the District that is adequate as determined mutually by the City and
District, and 1) a autua l ly aRreed upon distribution of such compensation
hetwee.i the City And the District.
IN WITNESS WHEREON, the Districts and the City have executed this
contract as of the date and year first above written.
CITY OF RENTON, WWA`SHINGTON KING COIIPTY WATER DISTRICT NO, 61
BY Y.EA�SOS�_ Ry _ ..F..
BarM1a ra Y. npoch, Mayor -ruse L. Clu , Pres dent
�— � RY�
RYMaxtne F, Motor, C�tr Clem a�r es"t . Tea ,QAv e; p/et�ar�y.
Russell C. Storwick, Cor1s&toner
ATTEST ATTEST
TITLE___. TITLE
e
ESHIEIT A
JOINT FACILITIES DESCRIPTION
The Lint tacilities consist of the following components:
1. The portion of Well No. 9 used to supply the District and City West
Hill service �a.
2. The West Hill Supply Pump Station which pumps water from the City's
196 pressure tone to the West Hill Reservoir.
1. The 12-inch dfam-ter transmission pipeline frum the West Hill
Supply Pi Station to the West Hill Reservoir.
6. The 1.15 million gallon West Hill Reservoir located c.a the Dimmitt
Middle School sits.
S. The 12-inch diameter transmission pipeline from the West Hill
reservoir to the District including meter vault(,) a.id meter(s).
6. The telemetry link and supervisory control equipment for the Joint
Use Facilities.
Legal descriptions of the sites and locations of thee facilities shall be a
described and shown on the design plans for the construction of these .
facilities.
9
EXHIBIT a
WATER SERVICE QUANTITIES
The volumes, `low rates, and puantitles allocated tc the Ctry and the Dtstrtct are as
stated In the follovtnR table.
MAXIMUM STORAGE CAPACITY
SERVICE DAY WELL NO.9
POPULATION DEMAND SUPPLY FIRE
PART[C(PANT YEAR 2000 (GALLONS) (GALLONSi OAY) EQUAL12lNG (GALLONS) STANDBY TOTAL
CITY 3,400 715,000 980.000 1651000 170,000 430.No 765,000
DISTRICT 1 600 546_000 _750,000 125,000 130,000 310.000 585y000
TOTAL 6,000 1,261,000 1.710,000 290,000 200,000 760,000 1,350,000
10
!e
EXHtAtT C
ALLOCATED COST AND SCHEDULE Of PAYMENTS
The allocated cost to the District and City to based on the current
estimated cost of the joint-use facilttes. This estimated cost is to be
adjust" baaed on the actual project costs follovtng completion of the
project. For the purposes of establishing a project budget and allocation
of costs to the City and the District, the follovtng costs are provided:
Facility Estimated Project Cost (s)
Well He. 9 $ 241,200
Transmission Pipelines 187,600
West Hill Pump Station 108,600
West Hill Reservoir 508 g00
Total $1 ,646,000
Grant Adount 482,000
City's and Dtnlrict's Share (Fat.) $964,000
Financing i Attorneys' Pees 18,600
Total 1,002,AM
City's Share $751.950 (¢atlmated)
District's Share $250,650 (Estimated)
it
2
Engineering
()Ctoher 1, 1945
s109R,1A (15739)
Hoard of Commissioners
KiNO COUNTY WATER DISTRICT N0, 63
P.O, Rox ROAR
Seattle, WA 98179
Mr, Ron Olsen
CITY nF PENTON
Public Works Department
200 Mill Avenue South
Renton, Washington 990ss
subject: 101et Ilse Facilities Agreement with
King County Water District No, 63
Gentlemen:
The West 14I11 facilities, A Joint use water supply, storage, and
transMis%inn project, is nearing completion, in accordance with the jcint
use agreement, notificatlOn of estimated costs must be provided to the
both participants, city of Renton and King County Water District No. 6T,
This letter, therefore, 44011114riles the Current project status, the
anticipated schedule for bringing the facilities on-line, and, in
accordance with the agreement between the District and the City, the
estimated rots to the I11%trict for the forthcoming year,
rOmpletion of the West Hill project is expected within three weeks, and
Supply should commence to the District on or about November 1, 198S, The
%'Apply component of the West Hill facilities, Well 9, is complete while the
reservoir is underg5ing sterilization and the exterior is being cleaned up
and landscaped The hnostar pomp station punch list (mtsc el lanemas Arms
not vat accompl'shed) 1s being completed while the transmission pipelines
are complete and ready for operation.
Total project costs are projected to be 57,094,186,07, plus interim
(construction) interest which 11 currently tieing comiited. The net cost to
the rity and the nistrict after grant funding in the projjectee. amount of
SA51,n6 L.75, will he S1,AIS,IN.77, plus interim interest. The formula
used in the rrintnect for determining share responsibility allocates costs
at 75 per cent for the rity (Sl,OAT,R15.5R) and 75 per cent for the
District (5361,PR1,11), Attactvxeet A 1s a wnrksheat which indicate% the
Costs for each of the re%pettive components of the West Hill facilitip%,
1410 Market Street.P.O. Box 1180.Kirkland,Washington 96033(206)827 6400
DISTRICT 63/CIIY OF RENTON
nctober 1, 19R5
Page 2
The District's billing from the city for water I$ to be composed of two
Items: 1) 25 psr cent Of the joint facilities debt service, and 2) A pro
rata share of the City-wide operations and maintenance expense for the
water supplied to the District. Under the terms of the agreement, the
District I% to he billed 50.17 per Inn Whir feet of water supply daring
the first year for the District's share of the joint use fac pities debt
service. This amntint will then be increased In succeeding years by 2.6
cent% per year to pay the District's share of debt service until the
negative amortization amount has been paid.
The second billing component is the joint facilities maintenance and
operation exppnso. The language used in the contract clearly dpfines the
specific cost the City is to use in allocating oporat-ion and maintenance
expenses for purposes of billing the District. However, It was the intent
of the contract to have the District billed for those costs associatod with
operation and maintenance Of the City's waterworks utilities which were
ased in supplying water to District 63, Those costs would he the pro rata
%harp Of. 1) the maintenance budget, and 21 from operations, power costs
and utility shop rent, which results in a projected supply and transmission
operations and maintenance cost Of tljfi%.Rnn for 1996, The contract ralls
for this amount to he divided by the total water supply or 2,726,318 units
(Inns of cubic feed which resOlt% in an operations and naintpnan,p cost
c'.cyaponent of S9.43 per unit. The total budgot amount billable to the
District is, therefore, $4.60 per Inn cubic feet supplied.
The figures Prespnted here are budget romputatinns only and required some
Interpretation of the contract nil our part. Fly this IpCter, we are
notifying the District as rrquired in the contract by October 1, 19RS, of
these bvdgpt amounts. At the %amp time, we are stating that these aro
preliminary figures only and that we will provide thorn with firm budget
figures prior to November 1. IgA5. This will Allow time for the City to
rpvipw sprciflc terminology Andlor wordinq change% to the contract which
would clarify the operations And maintenance charge to thr District. If
you have any goostlons, p1eASe contact me at your earliest convenience,
Sincerely.
R82 fNGi NEERING, P.S.
Richard M. Harbert, P.E.
Attachment
• ATTACHMENT A •
ASt ,TILL PBILi6CIS 30141 U% ACC✓EFIBA/
I IMICIAL #OMP
SAM: DCTUEA 1, 199
share 1ktM:rrtim Iw lint 0sy Fact linos Cacti
Rolwt Cants Slo Anwisibility
6larvoir li stw Peso 1ranNissim wo 63 Issll Ib 9 Tetstry, Tnai. Grant futds City Share District Shan
Still" P44a PiPltee
1683,727.84 1333,468.61 1343,131.73 1307,067.38 1337,01D.03 W,572.00 Q,098,186,C' t65.3,061.35 11,1k3,W.54 1361,261.IS
Debt Servict Caspotattan - 1986 Pre7wtlm
Debt Swvin Asasnt Prolwtatl Amual Ant iciWted
City District Total DRtrlrt's District Alm~vt Cast Ib681y Annal Debt Servoce Lns
94m Shan Ansul SMn cwwjwims Pw Units Payson Pgsan Mind Paywrt
11,08.1,M151 1361,261.19 sifil o .00 941,510.75 91651 10.17 11,397.67 116,172.03 1124,738.721
OPwatim a,1d Iiainenance hile! - 1986 Rn3wtlm
1966 1965 City 1966 Prolacte8
Budwnd Aatw 110 Pre7wttd District Mmtnlr M1emai
0 1 A Cnts' in Attso Alt Costa Sealy# Payunl Psy-rot
11,10,600,00 2726118 W43 98699 113.511% 02,111.30
Pro)wtvd bvwxar D►City Ira District - 1986 Prolwtim
0 1 A Bolin liebl Sevin ToW District Psysenl
"ftly Anwal MwAhly Nssrl koth1v Rawl
t3,57S.9a 112,111.30 si'W.67 M.ne.03 14,V..3.61 09,W.33
Ibtw: a But, rrmsssot:im .re .m,t% ns t.PM M tr 100 c.t.
e 1984 is wit as tnt brie rear
• 6rcidn inwie irtweat
Prodwtla W transetasim torts mly
w •
Z
Engineering
October 30, 1985
51098.18 (151%)
CITY OF RE.NTON
Public Works Department
200 Mill Avenue South
Renton, Washington 98055
Attention: Mr, Dick Houghton, Director of Public Works
Subject: West Hill Agreement-Terminology Clarification
Dear Dick:
Some terminology contained 'n the original agreement with Water District
No. 63 is not as originally intended when we drafted the agreement. Under
Item 8 (d) of the contract agreement, the current language results in using
the entire operations and maintenance cost for the water system rather than
the o rations and ma intenaca costs associated with roductton and
transm ss on one et ca y, a current term no ogy s as—inI OWs:—
Ad, The District's share of the Joint Facilities Maintenance and
Operation Expense shall be computed by dividing the entire City's
water supply maintenance and operations cost by the volume of
water supplied to the City's service area and then multiplying by
the volume of water supplied to the District.
and, we recommend that this he revised by a contract amendment as follows:
Ad, Revised
The District's share of the Joint Facilities Maintenance and
Operation Expense shall he computed by dividing the entire City's
Water Supply Maintenance and Operations cost for production aad
trammissian ally by the volume of water supplied to the City's
service area and then multiplying by the volume of water supplied
to the District.
Incorporation of this modification would then bring the agreement into
conformance with our original intent when writing the document. Therefore,
the costs attributable to supplying District 61 would be the pro rate share
Of the 11 entire maintenance cost for the City's water system, and 2) from
operations; power costs and utility shop rent. This cost would then be
divided by the total water supply for that year to compute the operations
and maintenance cost component chargeable to District 63,
1410 Market Street P.O.Box 1180,Kirkland,Waahinpton 98033(2O8)827-6"
Mr. Dick Houghton
October 30, I"S
Page 2
Following the City's determination, a unit cost of water can he finalized
for District 63. Please contact me at your earliest convenience if you
have any questions regarding this matter.
Sincerely,
RH2 EI,LGINEERIN6. P.S.
Richard H. Harbert, PE
cc: Mr. Ron Olsen
OF RE.
tit -r z PUBLIC WORKS DEPARTMENT
RICHARD C HCUGH%DN • C1IRt."p
MUNICIPAL BUILDING 200 MILL AVE SO. RENTON WASH 98055
EP 20t 235.;`6=
"eo sEPst"�
BARBARA Y. SHINPOCM
November 4, 1965
MAYOR
MEMORANDUM
TO: Ron Olsen
FROM: Richard Houghton
Per our discussion - Put the pressure on UNIFACE. We need to obtain the
new equipment ASAP.
i would prefer the Rolling Hills tank system first.
We need it now.
RCHcpmp
• • Cler ,�
UTILI11E5 COMMITTEE
COMMITTLL REPORT
November 4. 1985
I. WEATHER NOS STORM DRAINAGE MINTENANCE (Referred 10!7185)
The Utilities Committee concurs in the recommendation of the Public Yorks
Department and recommends acceptance by the City Council of the storm sewer
outfall and easement for continued maintenance in the Plat of Heather Downs
from Leonard Builders (property described as an easement over the south 80
ft. of Lot 6 Heather Downs Div, 02).
2. NEST HILL HATER SYSTEM (Referred 10114,85)
The Utilities Committee concurs in the recummenaatlun of the Public Works
Department and recommends the Council concur in the amendment to the Agree.
ment with Water District 063 (CAG 011-83) which will clarify the meaning of
item 8(d) in said contract agreement.
This section deals with how the charges to Water District 063 are computed.
The current language results in using the entire operation> and maintenance
costs for the water system rather than the-0—rations_ -� � and mn ntenance cost
associatea with production and transmission onl'
The Committee further recommends the Mayor and City Clerk be authorized to
sign the amendment.
3. 1905 CRD SEWER REMA8ILITATIgi.S-384, 385._386
The Utilities Committee concurs in the recommendation of the Public Works
Department to accept the low bid of King Construction Company in the amount
of $8,1,439.22.
The Committee also recommends that the Mayor and City Clerk be authorized
to execute the contract documents.
Robert Hughes, -thairman
ar ymer , '9Tce ni7i:W4
Ka hyy Keo ki er, J�ber
• • Wo r4s
OF R4 A Y •,t
y •'1
PUBLIC WORKS DEPARTMENT
DESIGN/UTILITY ENGINEERING 0 235 2631
MUNICIPAL BUILDING 2DO MILL AVE SO RENTON.WASH.91055
c�
BARBARA Y. SHIN-:
MAYOR
MEMORANDUM
CATE, December 20, 1985
,0 Maxine Motor, city Clerk
FROM, Ronald Olsen, Utility Engineering
SUBJECT: Agreewent Amendent No. 1 to Contract for
Joint Water Supply, Storage and Transmission
Please execute three originals for the contract pn•�rment as approved by
the City Council on November 4, 1985.
A copy is attached as well as a letter of approval as to terminology from
Larry Warren.
:mf
Attachments
Aaw'iwoent to Agreement
Contract for Joint Water Supply, Storage and lransmissuon
Retween the
City of Renton and
King rounty Water District No. 63
This Agreement Amendment No. I to the Contract for Joint Water Supply,
Storage, and Transmission, exer.uted this day of , 199s, by and
between the CITY 11 RENION, Washington, referred to hereinafter as th,
"CITY" and KIN, CCONTY WATER OISTRIrT NO, 63 referred to hereinafter as the
"IIISiRICT".
The purpose of this Amendment is to clarity the tern"inotogy used in the
original agreement, a copy of which is attached as Exhibit A. as follows.
ORIGINAL AGREEMENT
Section A - Billings and Payments
d. The District's share of the Joint Facilit +s
Maintenance and Operation Expense shall be Uxaputed
by dividing the entire City's Water 4ujgdy
Maintenance And Operations cost by the volume tit
water suppled to the City'S service area and then
multiplying by the volume of water supplied to the
District.
AGREEMENT AS AMENDED
Section A . Rulings and Payments
d, The District's share of the Joint Facilities
NaintPuanCe ant Operation Expense shall be compute't
by dividing the entire City's Water Supply
Maintenance anti Operations cost for production and
transmission only by the volume of water supplied
to the rity s service area and then multiplying by
the volume of water Supplied to the District.
IN WITNESS WNFRFDF the parties hereto have signed this Agreement on the
dates tndicatpd below.
KING COUNTY WATER DISTRICT NO. 63 CITY 01 RENTON
By:____ By:_
Title: Title T_
Date:----- tte:
Attested by: sttested by:
ty prk
Rentor CIt, C.,II
11/k/e5 Page tot
Cor yspordencr Contlnwd
tine..let reOwf[td that the hafts be referred to the Cou.cills Vals
Adv lfory and Nears Comeittet to..pi.,* a,. Kulghy'1 a,oposAl and
Seer1" (tort) deterelne the Mr,fit, to 1M City. ROVED By CLVNEA, Sr C0NDE0
IY HUGHES, COUNCIL RE/EA THIS CORRESPONDENCE TO VAV�S AN�O N�AN�S
CONHITTEE, Upon 1n.ui.v. Admlhlst,.tlrR Rul,tanl nt�r
iav steed IMt to hit knowledge. rot Itglslatim .,lets NNlch
..to prohibit uecutior of a contract for .onwlting ier rice.
.ith A fo,mrr eaP lnYaa. 1q1 and Me,,, Cafsltue Chairman
Ciym.r •lked that Nr. Kul.ahy be Invited to the nut Gomm life.
wsetin9 or Monday, "yea mi it. 1985.
OLD BUSINESS (OYnCilyammn Keolkv, .,had worths IMds.Ap Irg .gutter."
Lincoln Pro,rtY I., Llncoln Prp.,q CoapMY /ewloprnt M M.tw Hill They.
crcemi been r[ by the dew)par. Mayor Shin,mh IndlcAted that
Land,cpin9 - lm""t"'On o/ Iandsupinq and fencing 11 antICIPHed lh El
Fenton Hill week, followed by Inprctlon be Clty staff, aeolk., indicted
de tire for City enforctrnl of r1qulternts PrOOlsed by City
,left prior to dar.l diem.
Utilities Utilities Temple life. chair"H NugHas presented • report
IP COitter regarding (he "rather Oo s ,term drainage rintrna,c,
Neither 6o,n, preernt prp.,ed by Leorud Dullde". The C.Ill.,
Storm Drainage concurs in the recrlarndRtlor of 1M Public Work,
Maintenance O.partmht to a..eyl the at-r. sever outfall and *a.,,
Agrornl for eohtln.w rintan.hce in the Plat of ii DON., froth
(Referred Leonard •uildera (prperty described as M easement over
10/7/e5) the south e0 feet of lot 6 Of Mather Dawn, Division Nn. 2).
NOVED By HIIGHES, WWII) BY KEOLKER, COINKIL CONC'IA IN THE
UTILITIES C0KHITTS2 KEPOAT. CARRIED,
Was) Hill 01111th,t CV ittw C11alre,a Repot presKnted • report
Water SYllm npN1p cu"tat1M s1 clearg s to water District NO. 6S
(Fefarr.d for the West gilt wte, "04 wlr, P, sf.tlon and Nat"
10114/85) mains, JOlnt OFF it"IlItY tdth KIn9 County "far Dltlri,t
No, 63 eamatrOetN Is 1"). Th. C.Ittee Cent." In the
ratpmaA411w Of tha P1A)It Works Oepartr.t to amend
the agrt.rnt to clarity the wring of it Par e(d) of the
ldrtlau "roue, ICAO 041-83). That Ali Nrulnl to
cnr.talion Of eMrp, to Wolo Dlltr le[ No. 6i and should
he Chaapd to rafba costs for p.,atlM And YIn1Man.!
alloclalod with prndu tlo. no t.,r,miulor poly Inu.ad
of the entire dp.cllon aw rintanbn.. Costs. TM Ce.witt..
further rtcoerhd.d that the MYor Ind Cite CILIA be
authorized to sign the arndladnt. 40 10 gY NCS, SECONOIO
By AMAIN, COUNCIL CONCUR IN THE COmm III[( RpOAT. CARRIED.
Dld Hard - Utilities Coral Otte chair Pan Hugh-[ presented a .rPnrt
1945 CDD $ew, conw.r inq In the ncarmrenda t'mn of the Pull,, w,k,
ee N.bililatior M"elywnt to accept the Iom bid of K'n9 Conttruct ion
t Nefer.ed CORanY I. the taOMt Of SB7,1)9.77 to, the 19et Cab
11/NOS) Se,wr FeMbll ilatl,n Progrm, S-)e\, S-)OS end S-3e6.
Out to burd", .onstrolnts. MIY SCMdule "A" .I11 by
rot ld.d. The (.life. Iurther relomrnd,d that t),.
Ma or And Cit Clerk M author Iced to .scut. the c tract.
HOV 0 y WWI 2, CONDED IV CLYNER. COUNCIL CONCUR ,N IME
CONK ITTEE REPORT. CARRIED,
714-mltotio. TIAnSport.tion Cm Ittet (Avbrlon) Cram it Chair".
vlotlon Noth..$ p,a,.Oltd a repots regarding qnc M. f1YwY,, Inc.
cam Itw Leue, LAG-06-76, Iw,l side off It, •,ea) opt le.Uor /n*
"re IYwyb ,PP+owl of prpolal to Mlid hangar,. IMeher Me
Inc. Leese for submilted A Prpo,ed IaYOW for 'Mwd .o "'ar l ION of
Nang", In three M1194+ Millings M IMrr I.1l.d olf ice are, p,pert,
Vets Side O/flee --,ad on the tovlllw,t corn" of the hart.. Airport, SM
A,,, po1s1 ref"enls Y.Wti.tlorl .ilh Ce nna Al+.,ttt
LAG D6-76 VenY for a Calto, lea le"Mo. The Cawlttee recoRrntll
• torch.. be ANlhdrlard to PIM,.d .11, th, *,W,,l
u.r .11 to /.)lowing oil ado inin",ive p.r..sses. ,OWED
SV M:"EVS, SECONDED aY TRIM, COUNCIL CONLUP IN THE
LOW 1 .0 Rrsawt, CARRIED.
y 11F RF1, • 0
1�1 OFFICE. OF THE CITY ATTORNEY • RENTON, WAS111NGTON
ro+r grgE•ox•iE 1••a iM en1EE1 • Mr MrON w+swN6r0„ asosr ie5 Nn
8 � $
LAWRENCEI WARREN, cnr+n
e ux•[v DANIEL KELLOOO, +sa,n+a,crtv+nom,Er
4P DAVID M DEAN, +ssuuxr nry u,o„rrtr
Zo SEPtP MARK E BARBER, +xVaru„crtr+,ro•ra.
IANETTA L FONTES, +avaae,m,r+rrq•,
October 31, 1985 M.ARTHA A FRENCH,+ssisr•x,c,rv+,T n ,
TO: Ron Olsen, Public Works Department
FROM: Lawrence J. Warren, Ci y Attorney
Re: West Bill Agreement-Terminology Clarification
Re: Water Agreement with WD #63
Dear Ron:
I have reviewed the proposed terminology clarification in
the above agreement and approve same,
&wrence J. rran
LJW:nd
cc: Mayor
• CAC. 011-83
\dden. AI-85
Amendment to Agreement -
Contract for Joint Water Supply, Storage and transmission
Between the
City of Renton and
King County Water District No. 63
This Agreement Amendment No, 1 to the Contract for Joint Water Supply,
Storage, and Transmission, exeoited this day ofoelue . , 198y, by and
between the CITY DF NE NION, Washington, r erred to hereinafter as the
"CITY" and KINr, COUNTY WATER DISTRICT NC. 63 refer-ea to hereinafter as the
"DISTRICI".
The purpose of this Amendment Is to clariey the terminology used in the
nriginal agreement, a cagy of which s attached as Exhibit A, as follows.
ORIGINAL AGREEMENT
Section R - Riliings and Payments
d. The District's share of the Joint Facilities
Maintenance and Operation Expense shall be computed
by Dividing the entire City's Water Supply
Maintenance and Operations cost by the .nl ume of
water supplied to the C�ty's service area and then
mul ti piping by the volume of water supplied to the
District.
AGRFFMFNT AS AMENDED
Section A - Billings and iaaym•,its
d. The nistrict's share of the Joint Facilities
Maintenance and Operation Expense shall be computed
by dividing the entire City's Water Supply
Maintenance and Operations cost for production and
transmission Only by the volume Of water Supplied
to the City'; service area and thl•n multiplying by
the volume of water supplied to the nistrict.
IN WITNESS WHEREOF the parties hereto have signed this Ayreement an the
dates indicateP below:
KING COIiq WkTER ,PISTRICT NO. 63 CITY OF RENTON
dy:
Title-
Title Miyor Pro tam
Date:__.__. Date: „Z• 30_ �5 ,
Attested �r'� Attested by: j
.: City r1pri
tip kF
41 l i
y. PUBLIC WORKS DEPARTMENT
RICHARD C HOUGHTON • DIRECTOR
p MUNICIPAL BUILDING 200 MILL AVE.SO. RENTON•WASH.M056
9 b
\iEO S'E PtE W 'p 206 235 2%9
BARBARA a. SHINfUCH
MAYOR
January 8, 1966
Board of commissioners
King County Water Diitrict No. 63
P.O. Box 78068
Sea`tle WA 98178
SubJect: Amendment to contract Agreement
for Joint hater Supply. Storage and Transmission
Gentlemen:
Attached herewith are three originals of Amendment No. 1 to the Contract
Agreement for Je ITIL Water Supply, Storage and Transmission. These
originals ne^d to be execul.ed by the appropriate District official .
Yo,, should retain one original for your records and forward the remaining
two for our file.
As you are aware, the rurpose of Amendment No. 1 is to clarify terminology
container; in the original Agreement in ortler that. the District will pay
their pro-rated share of ripe-ations and Maintenance costs for water pro-
duction and transmission Only, and net for the entire wat-r system
Operations and Maintenance.
Thank you for your continued cooperation. Please contact me at your
earliest convenience ii' you have any Questions or concerns regarding this
matter.
Sincerely,
Richard C. Houghton, Director
Department of Public Works
RLO:mf
Attachments (3)
• a
Engineering
Novivab,,r 19. lo°'
51098.19 (G23/8)
Mr. Ron Olsen, Water Engineer
CITY OF RENTON
Public Works Department
200 Ntii Avenue South
Renton, NA 9R055 e
Subject: 1987 Rate Roc commendation for Water District 63
Dear Ron:
This letter contains the projected 1987 costs for supplying water to King
County Water District No, 63, in addition, historical costs of servica as
well As the 19R6 estimated actual costs (hased on the first eight months of
19817 actual- results) are also provided for your information. The
information in this letter should he officially coniounicatod to the
District as SOO" as ymi and Other Appropriate city official% have reviewed
this letter so that we technlcatty fu' ` III the reghireR.-:.ts of the
agreement with the Dist^ict. As ymi are aware, they have already been
verbally informed of the information rontalnpA in this letter based on rho
previous meetings that wa have held with them,
Attachment A summarizes the originally prn,i, .trd rate for 79A6 A% moll as
the estimated actual cost for 19A6 and alto the cirrentiy projected rats
which shmild he charged to District A3 fr.r 1947, Attachment A to this
letter is a more detailed reporting if expenses for water �uppl y,
treatn-nt, transmission, distribution And administratinn costs, It Is
noted and emphasized that In developing A wholesale produrtion And
transmission cost for the City to charge nistrict 63, all supply costs Ara
included and only Ora transmission portion of transmission and distribution
are included. Further, Only A pro rate O Rro of administration and goneral
costs Attributable to producing and transmitting watood to er (and not to
distributing water) are included in the rAte char District 63. the
fonmilas used are Smimarized in footnotes at the bottom of the ietailed
I-Ahle attached, These cost ii will he further explained in a
separate letter which will fol' ow this suamwry 1p•'ar.
The primary reasons for the significant incraase in wholesale production
And tr,. ,mission costs as well as 6cher costs t it the City charges retail
customor� are as follows:
1. Power supply costs for operating wall pumps have increased 223%, and
this Alone constitutes Z01 Of tho operations Aid maintenance change in
cost.
M
1410 Markel Street,P.O.Rox't80.Wickland,Washington 98033(206)827.6400
Mr. Ron Olsen • •
November 19, 14rA
Page ?
2. The state excise tax has more than doubled.
1. insurance costs have increased significantly,
4. Voters in the 1986 general election approved, and thereby mandated,
fluoridation of the city water, which inc-eases trea6nent costs
significantly for 1987,
S. Failure of Well No, 2 has increascd production costs significantly due
to the need to purchase Seattle water during the smamaers of 19P.5 and
1496, F,irthor, a demand charge has now been levied by Seattle. against
Renton.
6. The City has replaced their old and nut-dated maintenance facilities
(City shnpsl and • portion of these costs are attributable to water
suopiy, production .d transmission,
7. Social Security taxes have increased significantly, which has the
effect of increasing labor costs for production and transmission as
well as all nt.hcr facets of water system operation and maintenance.
As a result of these cost increases, the city has raised its retail rates
charged to its cost role rs during the period from April 1991 to December 1985
approximately 94%. and for Decnmher 1496, a projected 11% rate increase is
necessary and will he considered by the City Council in their forthcoming
rate review, Currently rnticipated to occur during December 19Rt A copy
of the City's rate adjust.aent history is also attached for your Terence
as Attachment f,
It is noted that operations and maintenarlL, costs, whether they go tip or
down, are charged in that year haled on an estimate that is provided at the
end of the preceding year. Technically, the ac:ual 1986 costs will not he
known until approximately February, P87, after detailed financial
re- -Ling has boon accomplished. However, according to the agreement
between the City and District 63, capital costs are charged on a fixed
schedule starting in 1086 at 17 cents per 100 cubic feet (ccf) with fixed
incre ses per year at the rate of Z.6 cents/ccf until the District's
portion. of the capital facilities debt service is paid in full. Therefore,
for 1987 the capital cost will increase to 19.7 cents/ccf and in contrast,
the rate for 1986 was 17 cents/-cf.
This capital cost component df the rate charged to District 63 repvesents
an investment on the part of the District i., their pro rata share of tlw
West Hill facilities, The capital cost omponent of the rate charged
District 63 will he eliminated wben the debt service on these facilities is
paid ?Ind this is currently estimated at ?1 years and in comparison, the
anticipated life of these Facilities is 50 years er more. Therefore, it is
anticipated that pistfict customers oil have apprnximatel; 30 years or
more of no capital cost component included in their rates for the Nest Hill
facilities. This clearly indicates that rates charged the District
customers will be slightly higher now in order to avoid substantially
• 10
Mr. Ron Olsen
November 19, 1986
Page ;+
higher rat . in the future. This situation is uhvinnsly different than
that of fining supply from the City of Seattle in that no ownership
rights a .apital cost elimination is provided with supply from Seattlr.
It is true that the operation and maintenance cots from Seattle ar�,
currently less than from Renton, although our interpretation of th-
abort-to•he approved Seattle comprehpnsive plan shows a capital Improvement
plan of $446 million in improvpmen, s at today'% costs or approximately S731
million including inf'ation to the year of construction of whit? District
63 would he arguably responsible for $4.S million, without an ownership
Interest In those facilities. The capital i.ost component of these
f„rilities would be orders of magnitude greater than their counterpart
equivalent obtained from the City of Renton.
It is further nnted that although District 63 has been conserving water and
therpbv Mductng Its total nporatinns and maintenance cost per year, the
other impact of reducing water consumptior is that of extendinq the payout
period for District 61's capital cost responsibility for their share of the
Best Hill facilities. He are further aware that the District is intend'unq
to provide service to additional retail C-mtnmera within their system anti
this can have the benefit of shortenin4 the payout period for capital costs
attributable to the nistrict.. It is intended that this information be
reviewed and discussed at a meeting on Novemhrr 19 at ?:(In p.m. in City
Hall,
Please contact uae at your earliest convenience if you have questions or
concerns regardinq this letter.
Sincerely.
Richard H. Harbert, P.F.
Attacmrapts
cc* Dicx Houghton
Rob Rergstram
Mike McCarty
TAd Rpnnett
1
ATTACP'riNT A
MNILESALE RA tF COMPARISON
0 PER CCF
COST COMPONENT 1996 PROJECTED 1986 ESTIMATED 19117 PROJECTED •
(OCTORER, 1985) (NOVEMBER. 19861 (NOVEMBER, 19861
OPERATIONS AND MAINTENANCE 0.430 0.453 0.509
CAPITAL WITH NEGATIVE AMORTIZATION 0.170 0.170 0.196
TOTAL 0.600 0.622 0.705
•
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6R'Sdts )L.`9rt• GL'Nt•002'< liso wl f4's024 9L.'<s21 9M'r9H 92b'092s bt0'L92s
91 ,N•evrQ 1 N+.nf ult •"++•nwt
6 Y1f 6L+'•H [• 9L '91• IS''EI• 9K•6 t. A<'LI• 9.L't2s IZ[ irs WAp[N3 .•amufl fpna^Q
2]•+9•. ._ 696,92s Nt'Rs xf'<H bP[':N LLt'£s Z69'<s 269'Ls H.'H Nr[aan8 •+VIO
CPG• ^goes 900f 6acs itN 6110 91Ts 69" Ila$ Nt+ftf9 t.+waL a f•,a.+i.ru,paa
[49'Kf Co:'rrs <9t•BLs Wt'Lls E9:'+ts _ 'L'Gt• 4f'<as 6t£'GL'•__. [0<'9H _.
GPb'PL• .L•t9. _" :.ou t9.40!f T1.'litf 111OWTO 1st'! • MO Will P95'29t♦
91t'rLf 9W." __ alC'•» 4VFl" too'L1• ev.9" well" pfl'ELf _ _"-__ ..au+c•� uc..: I..- f .a.ga•Y .Npa. G
Llr-m Iso'.Cs L6:'no [:"Crf 281 bM "A.91% on'"o, 711 us NI ING ••.+wqp._ fura.•f +f.aN
__ _
p _ panvf - -i363,IN - t]31,]i] f13],)t] f333.`2] f2a1.191 QK.P99--631{„N! •t i3.K1 t96,•
oil$-000 _ 63C -M _ 611,P3_ _ 610.96 _ •u,923 plot�f3 __ K,k9_ M99S1 f5,
i.f,w�ufion 'nq 63u.9K 0316.m f29D,:-A K96.Its 02:S,.% f1K,6T1 tell.lA •Ua,ip •:OB,Bi
p3D,"1 fll i,I90 wll,M "t1.911 "23.AV f35i,251 f30a.:49 fK6,
` Lnf.ai iaaaus-..a;,va f213,Lo9 02 n,=4 s026,.tit Q22,m 1176,0Y'
-------------
a: c-oextioe I '.a.�sa[w[an •t.2'_S.'al •:,L..C32 ar_.,DDa f9:7.2S f'2a,707 KSc,863 $S2C,DS3 f ,296_ w a
•
19Y Cwt GILULtsr SuYtctal
6wval 1 aea[n[stst..a Cu[ s —___
64,V^al a aa�[n[ft N[-[w CNea Itl_-
Toal all Cost Coapo..es• - Df.oa: i awsm ftnat ra Costs
aa.rant of atwLns l."" 10• i
".f,wisfian 3n1y fiawnp t . __��__�_.
r-
e
•
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0
.__ weux� asp us-�y ±nos
�i:Tw$ T .y 416W1 F�rrb id j0 a.6lilrl
ATTACHMENT C
CITY OF REN/ON WATER RUES FOR 3/4' SERVICE
1974 - 1986
Cost of Water
Based On percent Increase
Date Base/Mo. 1000 Cu. ft./Mo. Between
Ord. No. Fassed Commodity Rate Cnnsumptiun_ Increases'__
2849 May 1974 $1.55 $ 4.45
S .29/100 cu. ft.
3056 Aug. 1976 $2.00 $ 5.40 21%
$ .34/100 cu. ft.
3531 Apr. 1981 $2.00 S 7.40 37%
$ .54/100 cu. ft.
3594 Dec. 1981 S2.3D S 8.20 11%
S .59/100 cu. ft.
3690 Dec. 1982 $2.55 $ 8.75 7%
S .62/100 cu. ft.
3765 Dec. 1983 $2.80 $ 9.60 10%
S .68/100 cu. rt.
347 Dec. 1984 $3.10 $10.60 12%
$ 75/100 cu. ft.
Dec. 1985 $3.60 $12.40 17%
S .88/100 cu. ft.
'Note length of time between increases.
r .
b0 b,BT CAZdabrldd
e
77- 9PL 9P03PP . 8037l.4P` JJ0.92G
°PP 334 29 • q�44iz • 4,121
19P9 Mrroo 'rt0io ` i50.430
1110
__ Bodo u
19773 19PG____9PL.4 .Coil %,42• ,332. 747
I20 .339.6JY • 447�f14 u YL2
YPP 33G„SPY ! 9s�4LL2 L, 731 _
19P9 /LS. I30 ! 930110to I It.olt
2107/ --
-- _-.-- C•o�F �ootse rue+:R Rial�l3 _-- 71,000 ----
- _ 764 95f
RRr CITY OF RENTON
FINANCE DEPARTMENT
Earl Clymer. Mayor thih0es Division
November 22, 1989
Board of Cotaalsaic•iers
Lakeridge Water Distrivt
P.O. Box 78068
Seattle, WA 98178
Re: Joint Facilities - 1990 Projected Rate
Gentlemen:
Enclosed is a copy of the 1990 rate projection workshoet .
Based on the worksheet's results, the wholesale projected
rate for 1990 will be 91 .00 per 100 Cubic feet . I'Le
projection was calculated using costs prov;ded by RH2
Engineering's rates management analysis.
We were unable to provide the worksheet sooner as required
by the agreement doe to the reorganisation of the Public
Works department and due to the new rates study process that
delayed -he utility's budget .
If you have any questions, please contact me at 235-2729.
Very truly yours,
CITY Or RENTON
-ra&CL A.14tk /.5rk
Paula A. Henderson
Utility Accounting Supervisor
l Pah
enclosure
cc: Iwen Wang
Ron Olsen
Rick Harbert
'Q Mill Avenue South - Renton, Washington 98055 - (206) 135-2510
_.'. �: GEr7n':Ae EnittiE o472P DI57F I:7 ie"O:PIe
,Oil, A-- "07E:TIOe .:.5r:0( Y
+.:::.:.. ba a• :auiuet llOr LOOS.n/1 :,92E.14: 3,05:.::5 :.:2e.:S: :A/l C'i 2.'Si.i6t ;.s7t '.- ..:°. . . _ ..]'S.t4. ._...JO: :.U:.521 LSS=.:
:9.. e.: .....
( c'c :.90i 'CC :.
Tot'. biter ianeeengon - . -- _. -
_. ... .-_......... .:-c.... _..-...:
ICU. Proeettioo 6 T.IOPel"I" 1L554-,214 ti.325.M4 11.16t.S1S 1l S52.945 lL2aE.m -. 1971.11" 144. .05 174: )4. 10 a. Sh L,,.615 SAL tt; fat. 1.1
Less CO It Of Seattle IMM' for 0 C 0 S C C 0 ( 5C.000
Realer wi 6-i It Serrlot
_._....--.._.._.__........................... ................ ._..-------_ ....... ---------.------------..........._-...........-.-......._......................._... ........
611otataal! Prot I traps Cosa 4TT,OP5 e62,515 7N,g2 615.Ie2 S10.7I7 1C:.w 415,t40 44.,414
6llocatu Ealstie/We Servin I11 cab,717 104,715 .118.71, 06,467 IN.039 170,273 Its,7" all.m U1.014 125.14, 107.046 120,111 C22.171
61107ate0 State Etclu 14, t P 1 0 0 0 0 0 0 0 IS.311 0 O
__......__,_,_ -.................. ------ _.._._..._..-............................................-._._...........................................------------ ----------...........
toll! biter Pr-6a:ttor a TVam%no :.111,076 l.'1 S.54S ..31i.G: t::.4 t: . 466.322 .14-,276 1.126.U3 10t5.377 11:.7% "S.PSG 42t,071 60562i W.02
Pre: E 'ran 1C.: Pe: ;rl a P4 1:': SE SEi; f: aCY. 1: t.tt. 11,4"' 31.G2t 1c,4374 1: -184 It :11P f0.2B7 1:-1`9C K.249t 15.11M
14E5 boas Peet Setw'f. us: RiA eo. 10.174, 10.2410 /0.2.10 1': :hf] 16.1760
.... ..............'_.-..,___--,--,_._._.._........_,...---,_..._......,,..._.................... ..................................... _..................'"""'.........._..._____-__-_"-------
Total lost Pe' IC" C: e1.00 11C.13 so." 10.e4 $0.67 Y.0 10.44 1C.3/ 10.111 10.24 M.17 it'.Is 16.7'
S lacres•e of late 2C.071 23.541 $,an -cmil 62.4171 -$.775 is M Icilas 14.9y1 64.121 13.321
7 . Ina or. Pro:a Ir,A Cost VAR 119,33% 2,111 -10.m 20.871 5.771 15.731 i4,P31 14.433 69.121 13.321
Ert4ti R9 Nate, "booty F l'"Misslo4 Coat 426,071
40ltlor. to Enl:1r0 Cost: far Supply to Neal Mill n 41.260
/eo72lOu; D"'Itiae a RalatPnance Cost to' Net: 0111 FU111ti t 24.100
............................................................................... .................---------..................................__--------
Total a .•r SepOly s Trametsum Cost 642.431
Total or ;only 1 Tr&MI%S10R Cost For 100 CF r - 80.19"
ry�X
i:^ ( GSi'0911F`.fi:i4; IW'EF
R9¢ s6sE RNE 'Ah .:'Si':00 F!
lr- .a9c ;99: 19E' 196t :°i`. 1961 i9i: .-ES i9E: :Gf fst :903 lo'°
.�:: .naxrc^: 9-.�eaee EdtlnSte[
.._.._ ..--_ ...__-------------------------- -----_....._..__...._......._.._......_...._._..................
,--q87 SfevliE 4-1DIFA%b. 753.245 a5°.'7° 9I:.334 3T.10' :2E.s0c 29'.95- 25, 87c 28c.i46 I9;.905
ftBt Sr;: c: tF85 Band 29s,s: 2'1l.09E 2v. ^:9 301.30 287.07:
lost Otis "fit" 445.611 131.i7s 12+.542 136.157 13'.415 in.905 702.725
IOU, Debt Sr9C an prod 8 "V 764 151 `.:F.297 355,101 315.882 3M.9ss 27.1,033 185.79 :M.215 iU.014 125,I42 W.061 120.111 122.:78
Gas 3M5 Mat till Portion 1138.04) (134,5421 036.3S7) 1137,e151 1130,905) t102,125i _-_-•--. 0_ 0 0 _-_•-.___0'.•--__•_. 0-_---__--- 0 _-_-___-_0_
.._-._ E . ......... ---------------------------
.........
.--------------------_-__._.. ._..._._._._-_-.-.-_._.
12C.18
Gott M, aF AMIM19 rstu eSt,'T 99.715 218,747 :71.N7 IW,859 liC.308 1/S,T79 l5s.285 :St.Ou ....IC ....... ......: R2.17e
_.............._ .......__..._.__....-__.__.__..._-..._.....__--.----......_..._._--.-.._......__.__..._....._._.._.___...._.._..__.._..__........._..._.....
:17' OF RE$TC* -Af Ee:O6E WATER DISTP:"
:990 COS' A.-CCA'IOm Wlly,:5 .::`f-:0i ay
I",1 1484 :98: 1482 Sue; .481 :91c
„MCinf< �:la ttlL E4t:att2g 4[:6i. 4rt.I- actual y+ctval Actual 4:t91i act". ktva: 4ct9a. A^v9,
..... ............................................... .............. ------- ..........------ --•-_••_.----.-.-_-..-----_-----_---------
SMC: E1 'Lpc:
Du•a:..ri.Ynses 6:.000 SC'.4is W.0ri4 s20.::E Slt.3:l S'.853 31.986 310.1p k.34: $1.45E St.C34 S5.526
purcralsee else• 3c,000 U.DDC 15,9C6 107,890 65.360 29.216 2t.lk 43.004 37,154 3:.911 49,656
Ralnten"Ce C, 4e!i: a So-Inp 9.389 ._.162 1.010 •E.83: 14.61' 713 600 4.114 004 '34 35: :31
fota: Source 0` Subtly 1rai,389 69,690 43.050 62.22 132.114 13.946 31,872 43.139 Some 45,54 4C,997 55.293
w 7ro le_ Ei9ER5EE
420
Rome. Rurcnama fo' OMIM; eater 43i.96e MOB 293,370 283.670 247,766 221.779 202.7% 15.1,125 132.827 110.121 47.788 19 1 .1
Ral/.t'"Ve of punning E9mnaent 255."s24 i4E.266 137,263 141.383 1141945 115.934 1e9,477 ",1" S3,9S2 24,738 16.081 , 12
1H
.0tal punning ENemes 51U.492 4st'sm 430,653 425.OS3 367.161 357,713 3511523 241,391 136.774 13S.459 L'2.60 %.531
fREA?RERt
Cmee:cais 75.000 7C.000 44.139 5,170 3.3Te 457 67H 1,019 701 NA 479
Ma:Otrnam of 1.eateent EMINItt 39,1S0 1'.121 1,.682 4:.448 '.495 1.1.119 11.247 9,372 5,626 4.:S: 4,905
Total Treate.nt 114,150 99.121 66.031 83.be: 46,710 11,373 10.576 11.925 10.391 6,329 4.995 5,384
?0.ReiR:SS,Om 6 DISTRIIU7108
O4eratiom 15foereisim 6 Eigineerang 91,261 81.40.1 72,753 97,515 74,094 75,479 69.460 64,927 44 107 54.549 51.084 37,971
Storage Facilities ERbeme 0 0 0 11146 1,624 1.068 925 21214 I'm 836 561 0
TransaiSsmr 6 Dletributla9 LOOS rot 6,252 5.58, 4,904 4,039 2.120 110 773 34 320 0 139 215
Mate Eaotmes 39,024 34.841 31 :: C 46,421 16,709 21,954 48,047 4S,613 34.3$2 29,495 21.699
ace SHOO Rent 86,190 89,582 79,0A, 77,626 41.654 91,520 49,200 0 0 0 0 0
Rao nteunce ISuoer mofi 4 Engingrin 55,204 49.289 44.006 63,259 63.238 73,613 57.057 64.40.1 46,062 53,511 49.625 15.642
Maintenance of Distribution RMmir 24.595 21,96, 19 4r' '6 277 12.924 11,566 21,553 6,394 20.319 11.496 40,623 18.555
Rntenance of 7ranseassion 6 Di6trib 271,806 149,114 >31 197303 170.924 115,111 13,6S5 142.534 67,491 77,6N 71,441
RaintenaKe Of Service! 269,245 166.16; 71:1.%0 241,211 258,473 189.3" 101,329 67.865 77.013 69,697
Maintenance of Meters 73,167 93.295 4 79,821 %.920 64.919 59,917 44,021 33,944 29,046 18,251
111,flWARCe of Hydrants 57,902 40,332 3 62,533 39,907 SO,233 44,872 42.376 82,947 21.341 9,429
maintenance of misceilanabus plant 26.018 31.404 17. 8,099 104 2.735 1,008 1,310 7M i,411 2,$3/
Total Tr4asaission a Distributitn 922,815 87053 78C-851 +°'.871 81'.941 774.201 '24,473 SW760 489,324 449,5I7 378,212 285,234
:1'• :r REA79M%.AAEfiD6p_W7Ef. DISC>I:' lae-:-ep
!99: :2-:' ALLOCATION ANALYSIS :::5.':0( AP
_ ;ecr ;9ec Copt :eE' !9i! :c': 1984 !98- :ot^ '-a8: M, :cie
.9e p^"e c; 6,;ycled ES:i eat!, C'ma: Act'.. +::Ja: ACt93: An", Actual Att6Ai actual ACtua. A:taa:
_..._._..-..-_....._---- _,_--------_______________________________________________________________________________________________________________________________________________
ini'fc: r.9l;C:
n6t5 :vans nc EaD!n.e° 92,4b2 36,72t 'S.6a3 ?'. ,. 'S.09t ".966 66.9T
Customer ke:uut 6 `.oilecttpn CxDee!e 84,- 7x'2!1 71.303 60.96i U.aa6 s6.i10 6i,011 61.337 N.096 N.476 53.316 SO,NO
Tctat Cvstome- Service 1B2.320 164,585 1605i 16i.:78 112.530 126.13a X.318 In,b2 10, 469 101,7'1 8'.67 78.957
AOOI0I3TP1ri9E a 6ENEFAt
Administrative 6 6emera. SAlc:es 27.115 2C.37i 18.186 :5,091 24.o92 27,159 15.751 14,70 IL1O5 18111' 3:.50.1 21.671
Witt $miles 111,494 10.263 9.161 62 100 264 119 051 309 268 305 525
Outside Services Enioyet 75.032 60."3 54.815 i5?.047 1361508 %692 3.777 !1,319 :7,235 Z1,166 2b,569 022
lcsuo7ce I;npries 6 Daesees :1.629 ::,596 29,995 26AB9 3C.892 15,746 19.746 13,03; 16.036 17,70C 14.454 18,%6
Administrative Pension 6 le"fits 32,238 29.077 26.447 Z7,625 39.306 54,233 121.106 57.211 $%:37 57,005 52,03 41.614
Maintenance of 6etera: plat: S.:SF 4,779 a,266 1.221 1,754 1,685 1.710 1.159 1.12e 2 210 1.215 636
Refits 0 C 0 C C 0 0 0 0 0 5.100 :0,260
Taxes 415.S6: 471.ti0 421.080 420.03' ae.206 36e,911 33C.464 35'.88t 34:.742 2L.123 238.9e' 236,302
tots. NOAtNstrA!,ve 1 Genera; 6n1,162 637.281 569,007 656,625 613.194 47e.604 W-614 s50.666 1"'M 420.!57 ,72,86! W-096
--------------___________.......______............................._-------------------------- ___......................_____------------------.._____-_--_-_--_---__.___-__.____.___
Total Sritn Ccst 82,569,309 62,301.531 $2,038,243 12.IH,951 12.702,263 11,799.773 11 7%95: 11,423,143 11,333,065 11.Na,599 /995,251 N6S.302
7
DIRECT PRORWC'ION WE TRANSMISSION COSTS
Source or Supply 101,385 64,680 43,950 62,382 132,814 77,966 39,572 63,i39 50.010 45.3a6 40,"7 55,293
PuntnS Ezosnses $67,492 45t,304 430,e53 4 !A5 367.761 437,711, 351,523 241,391 186,779 IMAS9 113,869 %'538
Treatment 116,!50 99,121 66,831 51,692 46,711 11,573 10.576 11,925 10,391 6,329 4,99S 5.304
lrnsetasior. OAIT I11 352.054 333,642 297,895 30:,191 327,1" 295.350 216,311 215,456 186,677 171,117 144.m 108,817
___________________-___-___-_______________-----________.________-_____.-..____--_-___..____-___._.____-_.__....__...._......._-..-___-_......_._.______-----_.....__._-__._..
Direct Production and TraeMI!Sion Co 1,155.085 958,747 139.329 111,301 674.4m 711,3" 677,359 $11,411 133.857 351,251 3041 141 266,032
1 Prorsta Adam t General !21 400,214 367,133 325.056 ]et,637 391,800 258,615 265,Z.i 237,111 2S1,e25 202,a66 181,291 115,463
..... ........___-_._._....___.__-__-_-__-___-..._-_--_._.._.._.__--..--__-._.._____.--._-_.._._-_._-_-._-_.__.______---__.-__---..._........___....__..__-_-_--.-_.._._.___
TO WI : %Ction 6 Transdissin 81155512r- .25,110 $1.164,385 $1,252,905 11,2N,263 1977,00S 8942,515 1741.M SM5,212 15U.717 SM.440 $441.494
sr Ak
-489 WEST HILL RESERVOIR WTR-11 2
..,
#3 datea% District #63-Joint Use Agreen
,.•� Or 9EeTWATUME GATE; EISTPI:7 l9-Ott-l9
?9: CC - ALLOCOIOa ANALf3iS :1:50'M AP
;99C ;9lG -99f 14f, 198, 1985 1994 /981 A82 !92: 199C 1979
tz: i0cocn!'.: P't1e:teC Es:ll2tf- -::>.s. A:-A: actual A:tuai actual A:t", actual Attu:: x:Coal a:tull
_...._._....._..................._..__..------.__......_...._...-.............--..._..........._....._............--....--....--.-_...........__...-.....---- -----..
i-sail-lor t CLstributitL C9st
'raesussior On:9 Eawass a 3S2.04 `33.642 291,895 100.:91 321.190 295.158 274.I88 215,456 186.677 171.117 144.288 109.917 11)
91str LS,tLM Onl. Easeha O 570,162 S0,91; 182.95t 486,680 S30.4511 478.843 448.090 349.506 302.0,47 277.420 231,924 Ilt,417 (2)
Total Tans 6 Dist ".Su 874,533 79C.l51 736.911 857,6a1 774,201 724,678 564.760 489.324 449.517 376.211 285.234
Psresat of Pioslase Length I0' 6 Larger
i TrAm",star, hit Ecaense t -------------------------_.--..._...------------------ .61l5
Total BMt" P409 Length
Perms of P;Pe17ee Legth ! t 5salier
u Our:Wt:er Mir Expense t : -------------------------------------------------------- : 3915
Total Scit" gins Length
"Tact PleeeCtlan t IranWsLM Cost
(2) ProgU Amin a geeers: Cost -- a Total alieistratin s 9xeral
Total ll"tee Lest - asainistrativ s general
e
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�7?�
n 5 A ` Bryn Mawr•Lakeridge
Water and Sewer District f :
8419 SOUTH 116TH STREET
SEATTLE, WASHINGTON 98178
BUSINESS 772-1580
Y
77115 BIU, IS PAID UFIIER PTOT" WMI PARTICDIAR CUNC N
IN 711E CAILIAATION OF jVJk7.S INi7AQ)IW 111F, CITY OF
REMONS 1C71'Al, DEFT SFMICE ON PRC")C'rION AN' TRANSMISSION.
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°�°1^ March 22, 1990
Pol.•a y A ise°n , MI MI D
Mr. Ron Olsen MAP 2 J MID
Utility Engineer CITY O( RENIUN
Citv of Renton PUBLIC WORKS
200 Mill Avenue South CUSTOMER SERVICES
Renton, WA 98055
Re: Bryn Mawr-Lakeridge Water and Sewer District
Dear Mr. Olsen:
At the meeting on January 30, 1990, between
representatives of Bryn Mawr-Lakeridge Water and Sewer
District and the Cit} of Renton, Richard Harbert and your
staff agreed to look for documents relating to the payment by
the District of a pro rate share of the city's debt service
:or revenue bonds, the proceeds of which were used to
construct facilities for the production and transmission of
water. Because we have not heard from you, we assume that the
City has bee , unable to locate such documents.
As stated at the reeting, the District's position is that
the contract between the District and the City for water
supply, storage and transmission requires the District to pay
a pro rate share of the Joint Facilities Bonds of the City; it
does not require the District to pay a pro rata share of the
City's debt service on other revenue bonds, the proceeds of
which were used to construct facilities for the production and
transmission of water. Proceeds from the Joint Facilities
Bonds were used to finance all of the production and
transmission facilities used by the District, including a
portion of Well No. 9 used to supply water to the District.
Therefore, the District has paid for the cost of the
facilities that are in place. Mr. Harbert stated at the
meeting, however, that the District should pay for a pro rata
share of the debt service for revenue bonds that "keep the
Mr. Ron Olsen
March 22, 1990
Page 2
capacity in place." Under the terms of the contract, the
construction of new facilities and the upgrading and
maintaining of already constructed facilities must be agreed
upon in advance by the District and the City. The District
and the City, of course, have not reached such an agreement.
In view of these considerations, the District has decided
not to pay for a pro rat& share of the City's debt service for
water production and transmission that is projected as
$630,770.00 for 1990. Any payments of that debt service which
have been made by the District so far this year will be
deducted from future monthly payments in 1990.
we always have appreciated the willingness of the City to
meet with the District to discuss matters relating to the
contract. In the spirit of cooperation, we hope that the City
will meet with us as soon as possible to begin discussions on
whether the contract should be amended to require the District
to pay for the capital costs of maintaining and upgrading the
facilities that provide water to the District.
Sincerely,
INSLF,E, BEST, DOEZIE 4 RYDER P.S.
Rod P. Kaseguma
RPK:lr
cc: Board of Commissioners
Tom Earwood
Richard Harbert
0211R
Bryn Mawr-Lakeridge
Water and Sewer District
8419 SOUTH 116TH STREET Ja
SEATTLE. WASHINGTON 98178
BUSfNESS 772-1580
March 22, 1990 -
We are deducting from this bill changes nude that �- lude, in
calculating the costs per 100 cubic feet, the citys debt service. The
Distri--t does not believe these charges are authorized in a contract
between the City and the District for joint facilities operations and
the purchasing of water from the City of Renton.
Current March billing $2,897.00
Less: Jan. billing (695.70)
Feb, billing (814.86)
Mar. billing (607.79)
$ 718.65
These deductions are obtained by subtracting Renton's debt service
of $630,777 from the 1990 Rate projection Conguter print out Sul plied
the District. This ca Putaticr equals a reduction of .2098 cents per
100 cf.
r
erg --):I CITY OF RENTON
'a. Public Worxs Department
Earl Clymer, Mayor Lyon Guttmaar.Director
April 2, 1990
Suregard Capital Group
4630 Pacific Hwy E., Suite B-10
Tacoma, WA. 98424
Allen: Mr. Ray Fath
Subject: Suregard Development. In Rmtoo at NE 44tb ST.
Dear Mr Fath,
This letter is to confirm our telephone conversation a few days ago. I have contacted Lincoln
Properties Co., who presently have an option to purchase the Seelig property adjacent to your
property on the East side, with regards to ubtaining a ten foot easement. This easement is
required so that the existing 12' Water Main may be relucated away from your proposed building
location. Lincoln Properties stated that it would make every effort to acquire such an easemerl
for the City. They also stated that it mignt be difficult to get the Seelig brothers to agree to
grant an easement because of their pending law suite against the city.
This letter will aeso confirm the City's position on participating in the relocation of the existing
12' water main. The City has no obligation to move the aforementioned water main from its
present location. All other developers to the South have moved the existing main at their own
expense when it suited them to relocate the water main
If you have any additional questions regarding this matter, please contact myself on 235-2631.
Very truly yours,
Ronald L. Olsen,
Water Utility Supervisor
SURGAR6RLO
100 Mill Avenue South - Renton, Washington 98055 - t206)235-?01
Cm' OF RENTON
MEMORANDUM
DATE.: .April 3. 1990
TO Larry Warren, City Attorney
FROM: Ron Olsen, water Utility Super.isor
SUBJECT: Bryn Mawr-Lakeddde Water i ..ewer District
Per our telephone conversation, attached please find copier of the Much 22 letter from
Rod P. Kaseguma, Attorney at Law, representing Bryn Mawr-Lakeridge Water and Sewer
District, Contract fcr Joint water Supply. Storage, and Transmission (CAG 011 63 -
Exhibit 'A' to Adden. s1-85 dated March d, 1983) and CAG 011-93 Addeo. of-85
.Amendment to Agreement dated Disc. 30, 1985.
pRyHa. wR/Rip if
Attachments
Al M CITY OF RF.
." NTON
PUBLIC WORKS DEPARTMENT
Earl Clymer, May•r DesignilAility Engineering
S326L15 t.330)
April 12, 1990
BOARD OF COMMISSIONERS
Bryn-Mawr-Lakendge Water and Sewer District
8419 South 116th Street
Seattle, WA 98178
SUBJECT: RESPONSE TO LETrIM DATED MARCH 22. 1990
FROM ATTORNEY KASSECUMA
Dear Commissioners.
This letter is in response to your attorney's letter dated March 22, 1990 and our meeting on January
30 1990, 1 want to respond to specific statements in vour letter and propose a method of resolving
the issue.
1. "Proceeds from the joint facilities bonds were used to finance all the production and
transmission facilities used by the District."
The assertion that proceeds from the Joint.Facilities bands%ere used to f t.arce all of
the production and transmission facilities used by the District is technically incorrect
since Joint-Faciliti, .Is were used to pay for the District's and City's prorate
shares of 1)Well No. ,ocated near City Hall,and 2)the West Hill
booster reservoir and transmission pipeline between the booster pump station and reservoitr
as well as between the reservoir and District meter,all of which are located west of
Renton Airport. The obvious exception to your attorneys assertion is that 1)no
facilities located between Well 9 and the West Hill booster station were financed with
Joint-Facilities bonds,and 2) no facilities which provide supply redundancy to Well
No 9 were financed with Joint-Facilities bondson the event that Well No.9 has failed
or is out of operation for normal maintenance and repairs.
These exceptions tbut we have noted form the basis for the City's inclusion of debt
service for production and transmission facilities as r. part of the cent of supplying
water to the District The precedence for this is noted on Pages 23 and 25 of the
ENGINEERING REPORT ON WEST HILL JOINT WATER SYSTEM FACILITIES
(AMENDMENT TO COMPREHENSIVE WATER SYSTEM PLAN,OGTOBER 1976),
by RH2 Engineering, P.S. dated March, 1981. Pages 23 and 25 are included as an
attachment to this letter and we direct your attention to the first and second
paragraphs under the heading,Vater Use Charge-Operation and Maintenance".
200 Mill .Avenue South- Renton, Washington 98055 - (2061 235-2631
i
BOARD OF COMMISSIONERS
April 12. 1990
Page 2
Specifically, in the second paragraph, the sentence starting with the items of costs,
"Cost of water supply and transmission," includes operation and maintenance costs
associated with production and transmission, a prorated allocation of general and
administrative costs,and allocation of existing debt service to supply and transmission
facilities,and a computed amount of State excise tax related to thew items.
The fin: paragraph has a specific reference to, "includine current fnancine costs
associated with these facilities." It is the City's position that this clearly demonstrates
costs included in the definition of"thr entire CitYr water supply maintenance and
operations costs,' as referenced in Section 80 of the contract. As originally drafted.
Section 8D was not restricted to production and transmission costs only and in
December, 1985,this amendment wasjointly agreed upon by the City and the District
which was clearly to the District's benefit and was voluntarily recogr-zed by the City.
The purpose in mentioning this is to revisit the alternative available to tie District
during consideration of this contract for joint water supply storage and transmission.
During 1981 and 1982, the City of Seattle had proposed a water purveyor contract
between the District and the City of Seattle. An element of this contract was payment
of tht prorate share of the debt service on all facilities used to supply each and every
purveyor. Two versions of this purveyor agreement were made available to all
prospective purveyors, and the purv.-.,r would select one in which to enter into
agreement with the City of Seattle.
Both versions of the purveyor agreement contained the requirement tiat all costs to
serve purveyors will be recovered,including debt service for all facilities ased by the
purveyor. The assertion in your attorneys letter of March 22, by way of analogy,
w,uld state that if the District were supplied by Seattle,that the District should only
pay for the joint-use facilities west of the Renton Airport, and a portion of a new
source of supply in the Cedar River Watershed;farther,that this would constitute all
facilities necessary to supply water to the District.
What is obviously missing is the prorate share of the cost of the transmission pipelines
to get water from the Cedar River Watershed to the District. In order that a direct
comparison of economies could be made,the City of Renton's contract with the District
wn,structured it many respects similar to the purveyor agreement Specifically,that
a� elements of the Seattle transmission pipelines and source of supply wore rait and
needed to be replaced,the cost for doa,g so would be borne on an equitable prorate
basis for all customen who benefit; this is precisely the approach U.at is used in
Section 81)of the contratt This is fartl.•r substantiation for including a prorate share
of debt service for production and tratu mssion and attributing that prorate share to
the District based on the District's consumption.
2. The ne-t statement,"therefore,the District has paid for the cost of the facilities that
are in place," is also technically incorrect.
Another statement in the second paragraph of your attorney's letter states as follows,
"therefore, the District has paid for the cast of the facilities that are in place." This
statement is also technically incorrect The District is clearly obligated to pay the cost
BOARD OF COb51ISSIONERS
April 12, 1990
Page 3
of the debt sen.ce for the joint usefacilities which include as discussed previously.
Well 9, the West Hill Reservoir and Booster Pump Station, and the transmission
pipelines between the reservoir and booster station as well as between the reservoir
and the District's meter. These facilities are not yet "paid for' since there is a
substantial principal and intemstbalance outstanding on the bonds used to fay for the
joint-use facilities. Further, the District has entered into a debt service retirement
schedule which includes negative amortisation which has been explained in previous
correspondence to the District from the City.
3. The District has decided not to pay for a prorate share of the City's debt service for
water production and transmission." This, in our opinion, represents a breach of
contract. Further,your conclusion to not pay for a prorate share of the debt service
is a premature conclusion since you have not allowed an opportunity to discuss a
contract modification.
We believe it is inadvisable and a technical violation u:he contract between the City
and District to not pay a prorata share of the Cityvs debt service for water production
and transmission for the remaining payments due the City during 1990. Prior to
taking that action,we would suggest that we meet again to discuss the rationale used
to support this conclusion and also would advise that Section 9 of the Agreement
applies in this instance.
As an alternative to withholding payment, I suggest that you deposit the disputed
unount (that portion related to the City's debt service for water production and
distribution)in an interest bearing account as a showing of good faith to mwlvmg the
dispute. Further, that the District and City enter into binding arbitration on the
interpretation of the current contract language.
Please consider the points made in this letter as well as correspondence previously sent to the Distrito
prior to any further action. As always,we art ready to discuss any prudent alternative and present
to the City Cauncil the City states recommendation regarding a specific proposal for contract
modification for their acceptance or rejection. Please contact me at your earliest convenience when
you would like to discuss this further.
Sincerely,
CITY OF RENTON
r
Richard And�mn,P.E.
Utility Systems Manager
ec: Mr.Ron Olsen,Water Utility Supervisor
Mr. Rick Harbert,RH2 Engineering
Attachment: P3„res 23 and'25 of March, 1981 Report by RH2 Engineering
1
The second part of the charge would be a rate per one hundred Cubic
feet representing a partial recovery of the annual principal and interest
cost of the city of Renton required to repay the bonds issued for financ-
ing of the joint facilities. This charge would be fixed initially and
remain constant over the life of the revenue bonds. At such time as the
revenue bonds were repaid, this charge would he discontinued. A prelimi-
nary determination of these two water use charges is presented below
WATER USE CHARGE
Operation and Maintenance
The charge established far -ecovery by the City of Renton of its
operation and maintenance costs must include the city's current
cost of operating and maintaining its water supply and transmission
system, including current financing cost- associated with these
facilities, and the cost of operation and maintenance of the joint
facilities. Vc pr000ae that this operation and maintenance charge
be established based on the total cost of the items identified
relating to the total Renton water system consumption. We believe
this is rr nable since the facilities wi.l be an integral part of
Renton's total star supply system.
Table 10 illustrates a deteminatinn of the city's current
cost of water supply and transmission. This tabulation is based on
information presented in the recently completed "'Water and Sewer
Rate Study" for the city of Renton by peat, Mamic\. 'Mitchell and
Co. , December 1980. The tabulation is based on the 1981 estimates
presented in this report. The items of cast include operation .rnd
maintenance costs associated with production and transmission, o
-33-
prorated allocatlam of general and administrative cost, in allocation
of existing debt service to supply and transmission fatuities and
A computed amount at state excise tax related to these items.
Deducted frog• these costs are current estimated 1981 costs of the
City of Renton for purchase of water supply from the city of Seattle.
These costs are based wn the city of Seattle current water rates
including the demand charge for the West Hill in 19111. The total
1931 estimated water supply and transaiss ion cost is $4:6,071
Based on an estimated consumption for 1981 of .50,600,300 cubic
feet, the total water s•Jpply and transmission cost per 100 cubic
feet is $0. 17.
Table 11 illustrates a determination of the cost of Renton
water supply and transmission including the operation of the Joint
facilities. This determ,natioo is based on 1981 operation estimates.
The existing city-wide water supply and transmission costs are
added to projecte4 costs for supply to the joint facilities and the
operation and maintenance costs for the joint facilities, to arrive
at a new total water supply and transmission cost of $492,431. The
additional consumptioa of Water Districts 14 and 63 raises the
total 1981 consumption to 265,300,000 cubic feet. The total water
supply mad transmission costs per 100 cubic feet is determined to
be $0.19. We propose that this rate be established as the rate to
be charged for operation and maintenance to Water Distric s 14 and
63 per 100 cubic feet of later obtained through the joint facilities.
This rate would apply if the tocil it ies were in operation in 1981
Adjustment to this rate would be made in the following manner.
PHI
Engineering
1144.15(.309)
October 17. 1990
McCaw COMM Qenmun auras
617 FASUake Arenu�Gait
Seattk, A A 98109
Atientum: Lynn Qmgkton
Subject: City of Realm
11'est 1141 kesenoir Cmlting
Darr Lynn:
As we discussed on the telef Nwe last Friday.the emtmg 0oo you msullM at the well 11111 Rewnvu In Rcntoo.,.
tun of an antenna rekuauon pc lm, l wan not mulled utulaaunl,. the coma ui
rc(ecscru:tirers,and does not match the Voice of thew snw coming
u ding cong rin the lark, a rant unlcct<d by Cuy
The('11) Itai rrymwil MAL do areas alfactcd be recomlal in dw prr,,eaoc of CRY aulauv,M crapaeulm pnaound
with the ptnper coumg malerud" We cuggcst that ycw call Rom Olsen re 277,6207,to whed de a pre-cormruelim
mnkrencc,and esuDluh a wrnk aJwAluk kv a,:nl4rung th¢work
Pleax call if y,w have any+lueukms,of reyutm addaauml mfomwUrvt
Suwcr��dy,
Rf�2'tiNOL+isF.ER1PtlCi PS. /�
Wnrot R. Er in.p,l,.
a Rwt 06M City of Realm
1410 Market Street, P 0 Boa 1180. Kirkland. Washington 98033(206)8278400
t
WTR- II StvRacze. Foci it-
ENDING
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