HomeMy WebLinkAboutContract CAG-11-093
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CITY OF SEATTLE
PARTIAL REQUIREMENTS CONTRACT
FOR THE
SUPPLY OF WATER
TO
CITY OF RENTON
TABLE OF CONTENTS
Pa e s
SECTION I. DEFINITIONS................................................................................................................................2
SECTION II. TERM OF CONTRACT AND GUARANTEES..........................................................................5
II.A. TERM OF CONTRACT...................................................................................................................................5
II.B. AGREEMENT TO SUPPLY AND PURCHASE WATER.......................................................................................7
II.C. CONTINUITY OF SERVICE WITHIN THE TERM OF THE CONTRACT...............................................................10
II.D. WATER QUALITY......................................................................................................................................11
II.E. CONSERVATION.........................................................................................................................................14
SECTIONIII. CONDITIONS OF SERVICE.................................................................................................16
III.A. MINIMUM HYDRAULIC GRADIENT............................................................................................................16
III.B. RESALE TO OTHER PARTIES......................................................................................................................17
III.C. INTERCONNECTION WITH OTHER SYSTEMS..............................................................................................18
IILD. DEVELOPMENT OF REGIONAL SUPPLY AND TRANSMISSION INFRASTRUCTURE.........................................19
III.E. METERING EQUIPMENT.............................................................................................................................20
SECTION IV. COST OF WATER SUPPLY&TRANSMISSION..............................................................20
IV.A. RATE-MAKING AND COST-ALLOCATION PRINCIPLES.................................................................................20
IV.B. RATEMAKING FRAMEWORK......................................................................................................................22
IV.C. WATER SUPPLY PRICING-BASIC SERVICES.............................................................................................24
IV.D. TRANSMISSION PRICING-BASIC SERVICES...............................................................................................26
IV.E. ALLOCATION OF COSTS AND REVENUES INTO COST POOLS......................................................................29
IV.F. ELECTIVE SERVICES..................................................................................................................................43
IV.G. RATE ADJUSTMENT...................................................................................................................................43
IV.H. RETAIL RATE-SETTING.............................................................................................................................44
IV.I. TRUING ACTUAL COSTS AND ACTUAL REVENUES....................................................................................44
SECTIONV. OPERATING BOARD.................................................................................................................46
SECTIONVI. PLANNING..............................................................................................................................47
VI.A. REPORTING OF PLANNING DATA...............................................................................................................47
VI.B. SUBMITTAL OF WATER UTILITY WATER SYSTEM PLANS..........................................................................47
VI.C. SEATTLE AS WATER PLANNING AGENCY..................................................................................................47
VI.D. COMPREHENSIVE CAPITAL FACILITIES PLAN............................................................................................48
VI.E. EMERGENCY PLANNING............................................................................................................................49
SECTIONVII. PAYMENT................................................................................................................................49
VII.A. COLLECTION OF MONEY DUE CITY......................................................................................................49
VII.B. PENALTIES FOR LATE PAYMENT...........................................................................................................49
VII.C. BILLING DISPUTES................................................................................................................................49
SECTION VIII. CONTRACT AMENDMENTS...............................................................................................50
SECTIONIX. DISPUTE RESOLUTION.......................................................................................................50
IX.A. OPERATING BOARD REVIEW.....................................................................................................................50
IX.B. SEATTLE CITY COUNCIL REVIEW..............................................................................................................51
IX.C. NONBINDING MEDIATION........................................................................................................................51
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IX.D. RESORT TO LITIGATION.............................................................................................................................51
IX.E. EFFICIENCY OF REVIEW.....................................................................................................................52
SECTIONX. MISCELLANEOUS......................................................................................................................52
X.A. NOTIFICATION...........................................................................................................................................52
X.B. SEVERABILITY...........................................................................................................................................53
X.C. CONSENT...................................................................................................................................................53
X.D. EMERGENCY SITUATIONS..........................................................................................................................54
X.E. NO JOINT VENTURE- INDIVIDUAL LIABILITY...........................................................................................54
X.F. COMPLETE AGREEMENT............................................................................................................................54
X.G. RELINQUISHMENT OF PRIOR CONTRACT...................................................................................................54
X.H. VENUE,JURISDICTION AND SPECIFIC PERFORMANCE................................................................................54
X.I. DEFAULT...................................................................................................................................................55
X.J. FORCE MAJEUR.........................................................................................................................................55
X.K. SUCCESSORS..............................................................................................................................................55
X.L. EXHIBITS...................................................................................................................................................55
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PARTIAL REQUIREMENTS CONTRACT
BETWEEN
THE CITY OF SEATTLE
AND
CITY OF RENTON
FOR THE SUPPLY OF WATER
THIS CONTRACT is entered into between the CITY OF SEATTLE ("Seattle"), a
municipal corporation of the State of Washington, and the CITY OF RENTON ("Water
Utility"), a municipal corporation of the State of Washington.
RECITALS
1. Seattle owns and operates a system for the supply, transmission, and distribution of
potable water and is authorized to sell and distribute water to its residents and to other
persons and customers located outside the corporate limits of Seattle.
2. Seattle's water system is integral to the health and welfare of the residents located within
the water service area shown in Seattle's Water System Plan. Seattle intends to provide
water from the system to meet the current and future needs of the residents of such water
service area when such service is requested from Seattle.
3. In meeting this service commitment, Seattle must ensure that this role does not place
financial burdens on its retail customers for which they do not receive a corresponding
benefit.
4. This contract and contracts of a similar nature with other wholesale customers of Seattle
located within Seattle's service area are intended to provide those customers with the
security of a long term service commitment and to describe the terms and conditions
associated with that commitment.
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CITY OF RENTON Page 1
5. Under this contract, Seattle intends to provide wholesale water to Water Utility at an
equivalent Wholesale Level of Service with the same pricing and operational principles
as it provides itself.
6. Given the extensive growth of Seattle and the surrounding areas and the impacts upon
infrastructure and costs, this contract is intended to provide sufficient water for growth.
As a general philosophy for cost sharing purposes, the parties desire to adopt the
principle that"growth should pay for growth."
7. Seattle and Water Utility, together with other Wholesale Customers of Seattle, have
agreed to establish an Operating Board comprised of representatives pledged to represent
the best interests of the region in order to provide overall direction to the Administrator
of the Seattle Regional Water Supply System.
NOW, THEREFORE, in consideration of mutual covenants herein, it is agreed as follows:
SECTION I. DEFINITIONS
For the purposes of this contract,the following terms have been defined as:
"Administrator" - The Director of Seattle Public Utilities or any other title given to that person
who maintains the authority to operate and manage the Seattle Regional Water Supply System.
"Block Purchase Contract" — A contract in which Seattle sells a fixed quantity of water to a
wholesale customer on a take or pay basis.
"Existing Supply Resources" - Current components of the Seattle Regional Water Supply
System which consist of the Cedar River storage, treatment and diversion facilities, the Tolt
River storage, treatment and diversion facilities, and the Seattle Well Fields as set forth in
Exhibit VII.
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"Full Requirements Contract"—A contract in which Seattle supplies a Wholesale Customer with
its Full Water Requirements.
"Full Water Requirements" - All of the water needed by Water Utility to meet the needs of its
present and future water customers within its service area as shown in Water Utility's water
system plan, and as shown on Exhibit X.
"Operating Board" —A board of representatives established by Section V hereof and having the
powers and duties set forth in Sections II, I1I, and IV hereof.
"Partial Requirements Contract" - A contract in which Seattle supplies a Wholesale Customer
with that portion of its Full Water Requirements above that provided by the Wholesale
Customer's own supply.
"Partial Water Requirements" — The amount of water over and above Water Utility's own
sources of supply as identified in Exhibits I and XIII and in accordance with this contract needed
to meet the needs of its present and future water customers within its service area as shown in
Water Utility's water system plan and as shown on Exhibit X.
"Rate of Return on Investment" - Seattle's Average Cost of Debt,plus 1.5 percent.
"Regional Water Conservation Program" -A program which addresses water conservation goals
for the Seattle Regional Water Supply System for Seattle, Wholesale Customers, and other
customers who enter into a water supply contract with Seattle that includes participation in the
Program.
"Seattle's Average Cost of Debt" - The weighted average interest rate on Seattle's water system
debt outstanding over the course of a calendar year calculated at the end of each calendar year
during the term of this contract.
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"Seattle Retail Distribution System" — Seattle's retail water distribution system consisting of its
retail customers within the Seattle retail service area as defined in its Water System Plan, and
including storage facilities, distribution mains, pumps, disinfection facilities, service
connections, and all other facilities not included in the Seattle Regional Water Supply System.
"Seattle Regional Water Supply System" - Seattle's water supply system consisting of dams,
impounded water, supply and transmission mains, pumps, treatment facilities, and all other
facilities utilized in conveying water to the Seattle Retail Distribution System, Water Utility, and
other wholesale customers. This definition does not include the Seattle Retail Distribution
System.
"Seattle Transmission Facilities" —Those facilities serving the transmission needs of the Seattle
Regional Water Supply System as set forth in Exhibit VIII.
"Seattle Water System Plan" - Seattle's Water System Plan dated April, 2007, and amendments
thereto, prepared by Seattle to comply with the requirements of WAC 246-290-100, and
successor regulations.
"Service Connection" - The water meter and associated appurtenances, including everything
from the outlet from the supply pipeline to the end of the Seattle Public Utilities vault, through
which water is delivered from the Seattle Regional Water Supply System to a Wholesale
Customer's water system, except that for the two (2) Service Connections located in Logan
Avenue South in Water Utility's retail service area, the water meter and associated
appurtenances will include everything from the south wall of the SPU meter vault to the flanges
before the 900 bends north and outside of the vault.
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"Stranded Costs"—Those water supply and related costs that Seattle and others have invested for
the region which may not be recovered as a result of lost revenues.
"Wholesale Customer" — Those customers who purchase water from Seattle under a Full or
Partial Requirements Contract for the purposes of reselling to others.
"Wholesale Level of Service" — Water delivered by Seattle in accordance with this contract to
the Service Connection intended for Wholesale Customers' distribution to their retail customers.
Seattle is not responsible for compliance with Department of Health ("DOH") standards,
including fire flow, emergency back-up and water quality within Water Utility's retail service
area.
SECTION II. TERM OF CONTRACT AND GUARANTEES
II.A. Term of Contract
I. Term. This contract shall be in effect beginning at 12:01 AM on the Effective Date of
this contract and shall remain in effect until 12:00 AM on January 1, 2062.
2. Effective Date. This contract shall be effective upon the date that both parties have
signed the contract after approval by their respective legislative bodies ("Effective
Date").
3. Subsequent Right of First Refusal. At the end of the term of this contract, Water Utility
shall have a right of first refusal to continue to purchase the amount of water then
purchased from Seattle at the time of contract expiration.
4. Periodic Review and Right to Change Certain Terms and Conditions. The parties may
review and change certain terms and conditions governing the sale of water hereunder by
January 1, 2022 and January 1, 2042, or as soon as practicable thereafter, as follows.
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a. Consensual Process. On or before January 1, 2021, and then again on or before
January 1, 2041, either party may provide the other with a written proposal to
amend the contract terms. The parties shall then meet and consider the proposal.
If the parties agree to the proposal prior to January 1, 2022 and January 1, 2042,
respectively, a written amendment to this contract shall be approved and executed
by both parties and this contract shall be amended accordingly.
b. Seattle' s Right to Amend. If the parties are unable to agree on a proposal by
Seattle pursuant to subsection a above within the respective one-year periods,
Seattle may propose in writing its desired amendment to the Operating Board.
Seattle and the Operating Board shall meet and consider the proposed amendment
and use reasonable efforts to resolve any differences in the proposal. After 90
days from Seattle's written proposal to the Board, Seattle may propose its desired
amendment to the Seattle City Council. If the Operating Board does not agree
with such proposal, it may submit a revised proposal to the Seattle City Council
within 90 days of Seattle's submission of its proposal to the Seattle City Council.
After receiving the Operating Board's alternate proposal, or after the lapse of the
90 day period for the Operating Board to make an alternate proposal, the Seattle
City Council may then deny both proposals or approve one of them and issue an
amendment to this contract which shall be in effect for the remaining term of the
contract from the date of issuance, unless later amended pursuant to subsection a
above, or by mutual agreement.
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C. Limitation on Seattle's Right to Amend. Notwithstanding subsection b above,
Seattle shall not have the right to: (i) reduce its obligation to provide the Full or
Partial Water Requirements of Water Utility, as appropriate; (ii) cease to provide
wholesale water to Water Utility at an equivalent Wholesale Level of Service as it
provides to itself, (iii) charge a higher wholesale rate for water supply and
transmission to Water Utility than that charged to the Seattle Retail Distribution
System; (iv) reduce its water quality obligations hereunder; (v) change the
methodology for calculating Rate of Return on Investment; (vi) restrict Water
Utility's right to terminate the contract or reduce its purchase commitment; (vii)
disband or significantly reduce the powers of the Operating Board; or (viii)
amend any contract provision that will apply only to Water Utility.
H.B. Agreement to Supply and Purchase Water
1. Partial Requirements Commitment. Seattle shall supply the Partial Water Requirements
of Water Utility for the term of this contract. Except as set forth in Exhibits I and XIII
and Section II.B.5 below, Water Utility shall purchase its Partial Water Requirements
from Seattle.
2. Adjustments in Water Utility's Service Area. In the event Water Utility acquires
additional service area that is: 1) located outside of the service area identified in Exhibit
X and 2) which is not already served with water from the Seattle Regional Water Supply
System, then Seattle shall supply the Full or Partial Water Requirements, as appropriate,
of the additional service area subject to a)the availability of water in the Seattle Regional
Water Supply System determined on the same basis as would be applied to determine the
availability of water for new or expanded wholesale service customers of Seattle; b) the
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limitation of geographical boundaries in Seattle's water rights claims or permits; and c)
an update to Water Utility's percentage share of the costs of the Renton New Supply Cost
Pool as of January 1 of the year following the acquisition of the additional service area in
accordance with section IV.E.7.e.iii.
3. Assumption or Transfer of Responsibilities. In the event Water Utility's entire service
area and service responsibilities are assumed by or are transferred to another utility or
utilities, then this contract shall become null and void at the time the assumption or
transfer becomes effective; provided, however, if the transferee of the service area is a
Wholesale Customer, Seattle shall provide water to the transferee according to the terms
of the transferee's water supply contract with Seattle. If the transferee is not a Wholesale
Customer, then Seattle shall issue the transferee a water supply contract for such area
subject to terms and conditions as Seattle shall determine.
4. Annexation by Seattle. If the entire service area of Water Utility is annexed to Seattle,
then this contract shall become null and void upon the effective date of Seattle's
assumption of Water Utility's water system.
5. Water Utility's Right to Terminate or Reduce Purchase Commitment. Water Utility's
commitment to purchase water from Seattle under this contract may be terminated or
reduced subject to the terms and conditions set forth below. Water Utility shall provide
Seattle at least 5 years written notice of termination or reduction, provided, however, if
Seattle unilaterally amends the terms and conditions of this contract pursuant to Section
II.A.4 above, Water Utility may terminate this contract at any time within 1 year
thereafter by giving Seattle 1 year written notice.
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a. Automatically Permitted Reductions. Water Utility may, without restriction, upon
five years written notice to Seattle, reduce its water purchases from Seattle by an
amount not to exceed 10 million gallons per day ("MGD") of its average annual
demand.
b. Reductions Requiring Permission. Water Utility may reduce quantities of water
purchased from Seattle by more than 10 MGD or by providing less than five years
advance notice of such reduction if in the judgment of the Operating Board, using
the criteria listed below, it determines that such reduction is in the best interest of
the Seattle Regional Water Supply System as a whole.
C. Criteria. The criteria to be used by the Operating Board in determining the best
interest of the Seattle Regional Water Supply System shall include but not be
limited to the following:
i. The potential for Stranded Costs and impacts on rates to either the
remaining Wholesale Customers or Seattle;
ii. The cost of new resources;
iii. The feasibility and benefit of reallocating to Seattle or other customers the
amount of water foregone by Water Utility; and
iv. Environmental aspects of the proposed change.
The Operating Board shall act promptly and reasonably in evaluating and deciding upon
Water Utility's request. The Operating Board may approve, with or without reasonable
conditions, or deny Water Utility's request based on the above criteria. Approval
conditions may include a requirement that Water Utility waive its rights to be served its
Full Water Requirements. If the approval conditions are unacceptable to Water Utility, it
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may elect in writing to withdraw its request and this contract shall continue in full force
and effect.
H.C. Continuity of Service within the Term of the Contract
I. Parity of Service. Seattle shall provide wholesale water to Water Utility at an equivalent
Wholesale Level of Service that it provides to itself. In the event of a general emergency
or weather-related water shortage affecting the entire Seattle Regional Water Supply
System, general restrictions placed upon water deliveries to Water Utility shall be
determined by the Operating Board and applied consistently to other Wholesale
Customers and the Seattle Retail Distribution System. In the event of localized
emergency problems, Water Utility acknowledges temporary, localized service
interruptions may occur for the duration of the emergency.
2. Emergency Curtailment Measures. It is recognized by both parties that emergency water
use curtailment measures may have to be adopted by Seattle to implement on a regional
basis in order to meet an emergency condition or a regional water shortage. The
procedures to be used in the event of a weather-related regional water shortage, or
shortages caused by other emergency factors, shall be as described in Seattle's Water
Shortage Contingency Plan in effect as of the effective date of this contract, or successor
contingency plans. Successor water shortage contingency plans shall be developed and
implemented by Seattle in consultation with the Operating Board. Water Utility shall
assist with and support all procedures or emergency curtailment measures that are
implemented under the Water Shortage Contingency Plan, or its successor.
3. Other Emergencies. Seattle may temporarily interrupt or reduce deliveries of water to
Water Utility if Seattle determines that such interruption or reduction is necessary or
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reasonable in case of system emergencies or in order to install equipment, make repairs,
replacements, investigations and inspections or perform other maintenance work on the
Seattle Regional Water Supply System. Except in cases of emergency, and in order that
Water Utility's operations will not be unreasonably interrupted, Seattle shall give Water
Utility and the Operating Board reasonable notice of any such interruption or reduction,
the reasons for and the probable duration. Seattle shall use its best efforts to minimize
service interruptions to Water Utility.
4. Waiver Of Charges. If interruption or reduction in deliveries of water to Water Utility
requires that Water Utility draw water supply in a manner that subjects Water Utility to
demand charges (as described in Exhibit III hereto), Seattle shall waive such charges
during the period of such interruption or reduction.
H.D. Water Quality
I. Seattle Regional Water SupplySystem. Seattle shall be responsible for water quality
within the Seattle Regional Water Supply System as set forth below. Seattle shall
construct, operate and maintain water quality treatment facilities and use its best efforts to
carry out its water quality responsibilities in the most cost-effective manner for the
region.
2. Applicable Standards. Seattle shall at all times during the term hereof deliver water to
Water Utility's system that meets or exceeds all applicable Federal, State and local
regulations as the same may change from time to time.
3. System-wide Water Quality Plan. Seattle, in consultation with the Operating Board, may
develop and maintain a system-wide regional water quality plan. The plan shall describe,
at a minimum, goals, objectives, procedures and the means to satisfy legal requirements
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and industry standards for water quality, monitoring, information exchange, best
management practices, adaptive management practices, public health protection, and
cross connection control. The Operating Board may form a technical subcommittee to
provide input and review of such plan. Seattle shall share available water quality data and
technical expertise with all Wholesale Customers.
4. Distribution Systems. Water Utility shall be responsible for compliance with all
applicable federal, State and local water quality laws and regulations applicable to water
in its distribution system including any water from its own supply sources.
5. Monitoring. Water quality monitoring shall be performed by Seattle in the Seattle
Regional Water Supply System and by Water Utility in its distribution system to comply
with federal, State and local water quality regulations, to verify the condition of water
that is passing from one entity to the other,to enhance system operation and to document
the aesthetic qualities of the water. Notwithstanding the foregoing, Water Utility may
contract with Seattle for water quality monitoring services as an elective service under
section IVY. hereof.
6. Water Quality Notifications to Customers (Consumer Confidence Reports). Each party
shall prepare at its sole cost periodic water quality notifications to its respective retail
customers and regulatory agencies as required by law. Seattle shall provide Water Utility
all water quality data in a timely manner regarding the Seattle Regional Water Supply
System that Water Utility may be legally required to report in such notices.
7. Water Quality Best Management Practices and Adaptive Management Practices. The
Operating Board may develop best management practices ("BMPs") and adaptive
management practices ("AMPs") as reasonably necessary to protect water quality within
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the Seattle Regional Water Supply System. The BMPs and AMPS will include
recommendations to prevent deterioration of water quality in transmission and
distribution systems. The parties shall use reasonable efforts to comply with the BMPs
and AMPS.
8. Flushing. Water Utility shall be solely responsible for flushing water mains within its
system. Flushing allowances will be provided by Seattle only when the Operating Board
determines that flushing is required to maintain or improve regional water quality.
9. New Water Sources. Prior to the introduction of any new water supply source, including
any direct or indirect potable reuse water, by Water Utility which mixes with water in the
Seattle Regional Water Supply System, the proposed source must be evaluated using
customary and reasonable water quality criteria developed in consultation with the
Operating Board to ensure compatibility with Seattle water and approved in writing by
Seattle. The proposed Water Utility source must also meet all federal, state and Seattle
water quality and treatment standards. Upon Seattle's request, Water Utility shall also
provide Seattle with satisfactory results from a blending study to determine the
compatibility of the source with existing sources already in the Seattle Regional Water
Supply System, the appropriate method and level of treatment and the probable
distribution of the new supply within the Seattle Regional Water Supply System. Water
Utility shall also complete a flavor rating analysis of no more than 3.0 as tested by
Seattle's flavor profile panel according to the methodology described by the American
Water Works Association, or its successor. Water Utility shall obtain all necessary and
appropriate regulatory permits, reviews, and approvals for rights to and operational use of
such water supply source.
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The Operating Board may form a technical subcommittee to develop water quality
standards and review and advise on the water quality evaluation criteria for proposed new
sources. Such criteria for new sources shall be the same for surface water and ground
water.
10. Transfers Outside the Seattle Regional Water Supply System. If,with the written consent
of Seattle, water from the Seattle Regional Water Supply System is transferred between
Water Utility and another water utility in a manner that does not use the Seattle Regional
Water Supply System, Water Utility, the other water utility, or both, shall be fully
responsible for meeting all applicable water quality standards related to the transfer of
such water between their respective systems. Seattle will not be responsible for water
quality outside of the Seattle Regional Water Supply System or Seattle Retail
Distribution System except as may be agreed to under Section II.D.5.
II.E. Conservation
The parties acknowledge that conservation prolongs the time before new supply resources are
needed and thus constitutes an important ongoing tool in managing the water resources of the
region. Accordingly, Water Utility hereby adopts and agrees to be bound by the Regional Water
Conservation Program, as it may be amended from time to time during the term of this contract.
In accordance with Part 1, Section B.1.5 of the Settlement Agreement between the Muckleshoot
Indian Tribe and the National Marine Fisheries Services and the City of Seattle (Civ. No. 03-
3775JLR), Water Utility will implement, through its participation in the Regional Water
Conservation Program, conservation measures that are substantially similar to those
implemented by Seattle within the Seattle Retail Distribution System.
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1. Performance Measurements. For the purposes of determining water conservation
performance, Water Utility's water use shall be measured in conjunction with the use of
all other participants in the Regional Water Conservation Program. The Operating Board
may develop reasonable criteria to measure the participants' water conservation
performance in accordance with such program.
2. Conservation Above the Regional Water Conservation Program. Water Utility
acknowledges that water conservation beyond the Regional Water Conservation
Program may be required as a condition of State or federal regulations, court orders,
settlements or agreements made to avoid litigation, fines or penalties, or as otherwise
determined to be reasonably necessary by the Operating Board. The Operating Board
may adopt reasonable additional conservation measures and targets for such purposes.
Such conservation measures and targets shall apply in the same manner to all holders of
Full and Partial Requirements Contracts and the Seattle Retail Distribution System.
Except as provided in the next subsection, Water Utility shall implement such additional
water conservation measures and meet the additional adopted targets.
3. Water Utility's Option to be Conservation Service Provider. Water Utility may elect to
provide its own water conservation program, beyond its commitment to the Regional
Water Conservation Program to meet conservation targets adopted by the Operating
Board, or more stringent targets. Water Utility shall bear the additional costs thereof and
shall be solely responsible for its implementation. Under this option, Water Utility shall
be evaluated for meeting the additional water conservation targets solely by its own
performance.
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4. Incentives and Penalties. The Operating Board may adopt penalties for shortfalls in
water conservation and rewards for meeting or exceeding adopted targets. In the event
Water Utility or Seattle fails to meet the adopted targets set by the Operating Board, the
Operating Board may assess a penalty. Penalties may not exceed the cost of Seattle
undertaking those conservation measures reasonably needed to achieve the adopted
target.
5. Postponing the Need for New Water Supply Facilities. In order to avoid the necessity of
developing new physical water supply facilities for as long as reasonably practicable, any
water saved through conservation in either Seattle's or Water Utility's retail service areas
shall be dedicated first to the municipal and industrial water supply requirements of the
Seattle Regional Water Supply System before any other use of such water may be
undertaken.
SECTION III. CONDITIONS OF SERVICE
III.A. Minimum Hydraulic Gradient
1. Initial Minimum. Seattle shall maintain a minimum hydraulic gradient or head at a
maximum flow rate in amounts and at locations described in Exhibit II attached hereto
for each Service Connection from the Seattle Regional Water Supply System to Water
Utility's distribution system. Such gradients and locations shall be contained in Seattle's
and Water Utility's future water system plans. Seattle shall operate and maintain the
Seattle Transmission Facilities necessary to carry out such obligation. If Seattle and the
Operating Board find that a project resulting in the modification of such minimum
gradient or head would benefit the Seattle Regional Water Supply System as a whole, the
minimum hydraulic gradient or head described in Exhibit II may be modified by Seattle if
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such modification is feasible from an economic, land use and engineering perspective
taking into account the facilities required to carry out and for Water Utility to adapt to
such modification. Seattle may make these modifications only once during any fifteen
(15) year period provided that four (4) years advance written notice is given to Water
Utility,unless a shorter notice is approved by the Operating Board.
2. Emergencies. If Seattle is prevented by emergency circumstances from providing such
minimum hydraulic gradient, Seattle shall supply not less than the volume of water
equivalent to the maximum 24-hour average flow rate required by Water Utility as shown
on Exhibit 11 for each 24 hour period that the minimum hydraulic gradient is interrupted.
3. Additional Service Connections. Additional Service Connections between Water
Utility's and Seattle Regional Water Supply System's water systems or adjusted
minimum gradients may be established from time to time by mutual agreement between
Seattle and Water Utility subject to approval by the Operating Board. Exhibit II shall be
appropriately revised to reflect such additions or adjustments.
III.B. Resale to Other Parties
Water Utility may sell water supplied by Seattle to other water utilities located outside of Water
Utility's existing or future service area only upon the prior written consent of Seattle (or oral, in
case of emergency). Agreements for resale of water by Water Utility listed in Exhibit I are
hereby approved by Seattle subject to whatever written terms, conditions and limitations that
Seattle has imposed on such resale.
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III.C. Interconnection With Other Systems
1. Prohibition on Interconnection. Water Utility shall not interconnect any part of its system
supplied with water from Seattle with other water systems without the prior written
approval of the Operating Board, or, in case of emergency, upon oral approval by Seattle,
which shall not be unreasonably withheld. Any such interconnection shall be subject to
the approval of the Washington State Department of Health and the installation of a
meter. Such other systems must be in compliance with all applicable local, State and
federal laws and regulations including the requirement that they have a valid operating
permit issued by the Washington State Department of Health.
2. Requests by Seattle to Interconnect. Seattle may request that Water Utility interconnect
its water system to the water system of an adjacent Wholesale Customer. Water Utility
shall comply with that request subject to the terms and conditions set forth below.
a. Requirement for Interconnection. If Water Utility does not consent to Seattle's
request for interconnection, Seattle may propose the interconnection of Water
Utility's water system to the adjacent Wholesale Customer to the Operating
Board. Water Utility may present facts and arguments to the Operating Board in
opposition to the interconnection and document its costs in making the
interconnection and conveying water to the adjacent Wholesale Customer. The
Operating Board shall hear and consider the matter. Upon(a) a written finding by
the Operating Board that the proposed interconnection with an adjacent
Wholesale Customer is feasible taking into account Water Utility's capabilities,
limitations, and obligations, (b)a written finding by the Operating Board that such
interconnection benefits the Seattle Regional Water Supply System and (c) a
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written demand of the Operating Board that Water Utility carry out the
interconnection, Water Utility shall be required to interconnect its facilities to the
adjacent Wholesale Customer for the purpose of supplying water to that
Wholesale Customer through the distribution system of Water Utility, provided
that the adjacent Wholesale Customer agrees to perform the interconnection in a
location and according to a schedule which does not unduly disrupt Water
Utility's operations, and to be responsible for the payment and indemnity
obligations in Section III.C.2.b below.
b. Payment and Indemnity. Water Utility shall be paid its actual costs of providing
such interconnection and water transmission service by the adjacent Wholesale
Customer receiving the water, plus a reasonable amount for overhead,
administration and rate of return (equal to Rate of Return on Investment) on such
costs, and Water Utility shall be indemnified from any liability that may result
from providing such interconnection by the adjacent Wholesale Customer. The
Operating Board shall adopt a standard methodology for calculating costs that
ensures that Water Utility is fairly compensated for such service.
III.D. Development of Regional Supply and Transmission
Infrastructure
Final decisions and authority to approve construction of capital infrastructure related to the
Seattle Regional Water Supply System shall rest with the Seattle City Council. Capital
construction activities include, but are not limited to installations, renewals, replacements,
upgrades, expansions, and any other costs included in Seattle's comprehensive capital facilities
plan.
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III.E. Metering Equipment
Seattle shall own and perform testing, cleaning and recalibration on appropriate metering devices
and associated appurtenances to measure the amount of water delivered to Water Utility at the
Service Connection pursuant to this contract. Seattle shall perform all other work at Water
Utility's expense regardless of the cause provided that the cause is consistent with AW WA and
safety standards and practices. Water Utility shall operate and maintain its water system in a
manner that the water flowing through the Service Connection meter operates within the normal
operating range for the meter as specified by the manufacturer.
Until such time as Seattle determines it to be economical to install metering devices to measure
the amount of water delivered from the Seattle Regional Water Supply System to the Seattle
Retail Distribution System, the amount of water delivered to the Seattle Retail Distribution
System shall be measured indirectly by subtracting the metered water delivered to all of Seattle's
wholesale customers from 98% of the total amount of water exiting Seattle's sources of supply
as measured by the supply meters.
SECTION IV. COST OF WATER SUPPLY & TRANSMISSION
Cost-based rates are a water industry accepted practice and the historical practice of Seattle and
the Wholesale Customers. The rate-making principles, policies and methodologies set forth in
this Section IV are intended to meet the objective of equitable and cost-based rates.
IV.A. Rate-making and Cost-allocation Principles
The parties will apply the following general principles and policies to the establishment of all
rates, charges, and cost allocations for water supply,transmission, and related services under this
contract.
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CITY OF RENTON Page 20
1. No expenses attributable to electric power development may be allocated to the cost
pools identified herein unless the pools are allocated a commensurate share of revenue
derived from such development.
2. Seattle shall utilize generally accepted accounting principles, as may be amended from
time to time, consistently applied as a basis for developing the financial information upon
which rates and charges are based.
3. Abrupt changes in financial policies should be avoided.
4. The rate structure should encourage the efficient use of water, conservation and the
timely development of new environmentally responsible water sources and should
incorporate seasonal rates and other pricing approaches to encourage efficient use.
5. The rate structure should be innovative, flexible and adaptive whenever it is cost effective
and beneficial in furthering the rate-making policies.
6. The rate structure should be simple to administer and easily understandable.
7. The rate structure should be fair and equitable while balancing the needs of all parties.
8. Capital costs which benefit only a new Wholesale Customer shall be allocated to that
customer and not to any cost pool described in this contract.
9. Capital costs associated with improvements or facilities which benefit or serve individual
Wholesale Customers or the Seattle Retail Distribution System may be allocated to a sub-
regional or regional cost pool to the extent necessary to alleviate a disproportionate
adverse impact to that Wholesale Customer or the Seattle Retail Distribution System
from a regional or sub-regional capital improvement and where (i) such impact could
have been reasonably avoided through a different project design, or (ii) the other
PARTIAL REQUIREMENTS CONTRACT
CITY OF RENTON Page 21
rlMr' '
Wholesale Customers, including the Seattle Retail Distribution System, receive tangible
benefits,directly or indirectly, from the adopted capital facilities plan.
10. The Seattle Retail Distribution System shall be treated as the equivalent of a Wholesale
Customer of the Seattle Regional Water Supply System for the purpose of charging
Seattle the same wholesale rates and charges as Water Utility for water supply and
transmission. Costs calculated under the costs pools described below shall apply to all
Wholesale Customers and to the Seattle Retail Distribution System, except as otherwise
stated in a particular wholesale water supply contract.
11. The allocation of costs associated with capital construction activities within the Seattle
Regional Water Supply System shall be the responsibility of the Operating Board. The
Operating Board shall use its best efforts to determine and approve a cost allocation
method for infrastructure projects prior to the capital project obtaining construction
approval from the Seattle City Council. Failure of the Operating Board to determine and
approve a cost allocation method shall not hinder the Seattle City Council from approving
capital infrastructure projects in order to assure Seattle's ability to fulfill the requirements
of this contract.
12. All parties will use best efforts in establishing rates and cost allocations that reflect the
rate-making and cost allocation principles set forth in this Section IV.A.
IV.B. Ratemaking Framework
Subject to the foregoing principles, wholesale rates and charges for the services described in this
contract shall be developed by Seattle based on the following framework:
1. Water Supply and Transmission Service. The costs of water supply and transmission of
water shall be accounted for separately in the water supply and transmission cost pools
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CITY OF RENTON Page 22
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described below. The price for each service shall be recovered through separate rates for
each service. All direct costs incurred in providing water supply and transmission
services shall be allocated to the appropriate cost pool and recovered through the rates for
each service. In addition, certain indirect costs consisting of a reasonable overhead and
administration cost shall be allocated to the appropriate cost pool and recovered through
rates for each service.
2. Water Supply - Basic and Elective Services. The costs of supplying water falls into two
categories — basic and elective services. Basic service costs include direct and indirect
costs attributable to the delivery of water to the Wholesale Customers and to Seattle's
Retail Distribution System pursuant to the foregoing principles. Elective services are
optional services, such as water quality laboratory services and specific engineering
support that Seattle makes available.
3. Conservation. Costs incurred by Seattle for the Regional Water Conservation Program
shall be allocated to both the New Supply Cost Pool and Renton New Supply Cost Pool,
which is defined in Section IV.C.I.c. Only the Renton New Supply Cost Pool will be
allocated to Water Utility in accordance with Section IV.E.7 and the costs shall be
recovered through a block payment in accordance with Section VII.A.
4. Block PgMents In Lieu of New Supply Rates or Facilities Charges. Water Utility's
payment of the annual costs allocated to it through the Renton New Supply Cost Pool
will be in lieu of paying new supply rates or facilities charges under this contract.
Accordingly, Seattle will set a rate for Water Utility consisting of the existing supply rate,
existing transmission rate and new transmission rate only.
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IV.C. Water Supply Pricing—Basic Services
1. Three Water Supply Cost Pools. For the purposes of determining costs of water supply,
there shall be three cost pools: An existing supply cost pool ("Existing Supply Cost
Pool'), a new supply cost pool ("New Supply Cost Pool") and a new supply cost pool for
Renton ("Renton New Supply Cost Pool') authorized under Section IV.E.5.a and defined
in Section IV.C.l.c below.
a. Existing Supply Cost Pool. The Existing Supply Cost Pool shall be accounted
for as follows:
i. A basic services rate for water supply shall be charged to recover the full
costs of operating, maintaining, repairing, renewing and replacing the
Existing Supply Resources incurred by Seattle.
ii. All regional conservation programs undertaken by Seattle prior to January
1, 2002, shall be considered an Existing Supply Resource cost.
iii. Renewal and replacement of Existing Supply Resources will be an
Existing Supply Resource cost.
b. New Supply Cost Pool. The New Supply Cost Pool shall be accounted for as
follows:
i. Water supply resources developed after January 1, 2002 that expand the
capacity of the Seattle Regional Water Supply System ("New Supply
Resources"), including the costs of the Regional Water Conservation
Program from January 1, 2002, shall be included in the New Supply Cost
Pool. If any portion of a New Supply Resource project enhances
reliability of Existing Supply Resources, the costs thereof may be
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CITY OF RENTON Page 24
allocated to the Existing Supply Cost Pool if the Operating Board and
Seattle both agree.
ii. The cost of New Supply Resources plus Rate of Return on Investment
may be recovered either through FCs or new supply rates charged to the
holders of Full and Partial Requirements Contracts, except for Renton, and
the Seattle Retail Distribution System. The new supply rate shall be
applied to all holders of Full and Partial Requirements Contracts, except
for Renton, and the Seattle Retail Distribution System.
iii. The Operating Board shall determine the portion of the New Supply
Resource costs that shall be recovered through FCs or through new supply
rates. The FCs and new supply rates may be scalable to create an
incentive for developers to build housing or commercial units with
efficient water usage levels. Wholesale Customers and Seattle in setting
rates for retail customers shall be free to choose the method of
incorporating FCs or new supply rates into their own retail rates and
charges.
iv. Holders of Full and Partial Requirements Contracts who have not
purchased water from Seattle under the 1982 Water Purveyor Contract
shall be assessed the full marginal costs of the operation, including Rate of
Return on Investment, of the New Supply Resources. This assessment
may be satisfied by either paying FCs and new supply rates or arranging a
special water supply rate in lieu of paying FCs.
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C. Renton New Supply Cost Pool. The Renton New Supply Cost Pool shall be
accounted for as follows:
i. New Supply Resources developed after January 1, 2012, including the
costs of the Regional Water Conservation Program from January 1, 2012,
shall be included in the Renton New Supply Cost Pool.
ii. The cost of the New Supply Resources plus Rate of Return on Investment
will be recovered through a block payment in accordance with Section
VILA.
d. Emergency Surcharge. In the event of a drought, catastrophe, or other
extraordinary condition that requires emergency expenditures to maintain a
sufficient water supply, Seattle may impose an emergency surcharge on all
holders of Full and Partial Requirements Contracts in order to pay for such
expenditures or maintain financial stability of the Seattle Regional Water Supply
System, or both. Any such emergency surcharge shall be presented to the
Operating Board prior to adoption by the Seattle City Council. Seattle shall
consider the comments of the Operating Board but shall nevertheless have the full
authority to adopt the emergency surcharge.
IV.D. Transmission Pricing-Basic Services
1. Transmission Costs Pools. For purposes of determining the cost of the transmission of
water to the Wholesale Customers there shall be three transmission cost pools consisting
of an existing transmission cost pool ("Existing Transmission Cost Pool'), a new
transmission cost pool ("New Transmission Cost Pool"), and a Renton Sub-regional Cost
Pool ("Renton Sub-regional Cost Pool').
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a. Existing Transmission Cost Pool. Costs to be allocated to the Existing
Transmission Cost Pool shall consist of the following: operation, maintenance,
repairs, renewals, and replacements to the Seattle Transmission Facilities.
i. The Seattle Transmission Facilities are owned and operated as a regional
network by Seattle to convey water to wholesale customers and to the
Seattle Retail Distribution System. Therefore, the price of transmission for
water transmitted within the Seattle Transmission Facilities shall be
calculated on the same basis to holders of Full and Partial Requirements
Contracts and the Seattle Retail Distribution System.
ii. Costs incurred for purposes of transmission reliability may be included in
the Existing Transmission Cost Pool subject to the approval of the
Operating Board and Seattle.
b. New Transmission Cost Pool. The cost of new transmission facilities shall be
included in the New Transmission Cost Pool. The renewal, replacement, upgrade,
expansion, or modification of existing Seattle Transmission Facilities which
create an expansion of transmission capacity may be allocated to the New
Transmission Cost Pool. The Operating Board shall decide what portion of costs
of renewal, replacement, upgrade, expansion or modification of existing Seattle
Transmission Facilities may be allocated to the New Transmission Cost Pool and
what portion of costs of a transmission project that extends the geographic extent
of the transmission system that shall be allocated to the New Transmission Cost
Pool or recovered from a new Wholesale Customer if the project benefits only
that new Wholesale Customer. Except for costs allocated to a specific Wholesale
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CITY OF RENTON Page 27
Customer, New Transmission Cost Pool costs shall be recovered through new
transmission rates or FCs as determined by the Operating Board. The new
transmission rate shall be applied in a uniform manner to all holders of Full and
Partial Requirements Contracts and the Seattle Retail Distribution System.
C. Renton Sub-regional Cost Pool. Water Utility is served, in part, by the sub-
regional water transmission facilities listed in Exhibit XI. The costs of operating,
maintaining, repairing and replacing these facilities shall be included in the
Renton Sub-regional Cost Pool, together with any other costs Water Utility and
Seattle agree to include.
2. Demand Charge.
a. Seattle may adopt a demand charge in accordance with the methodology
described in Exhibit III. The demand charge rate (i.e., dollars per 1000 gallons of
deficient storage) shall be based on the equivalent cost of providing the deficient
storage.
b. The proceeds of the demand charge will be treated in rate setting as a credit to the
New Transmission Cost Pool.
C. Seattle shall suspend the demand charge rate in the event of emergencies and
unforeseen conditions.
3. Cost of New or Changed Service Connection. If Seattle requests a change in the location
of the Service Connection to Water Utility for the benefit of the Seattle Regional Water
Supply System, then the costs, including any retirement costs of the old Service
Connection, shall be included in the appropriate transmission cost pool. If Water Utility
requests a new Service Connection or a change in location of an existing Service
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Connection, then Water Utility shall pay the costs of the new or changed Service
Connection, including any retirement costs of the old Service Connection regardless of
the cause provided that the cause is consistent with AWWA and safety standards and
practices.
IV.E. Allocation of Costs and Revenues into Cost Pools
1. Accountine. Seattle shall maintain a cost accounting system consistent with the
provisions of this contract and generally accepted accounting principles, as amended
from time to time, consistently applied in developing the financial information for
determining the costs of acquisition, construction, repair, renewal, replacement, upgrade,
expansion,maintenance, and operation of the facilities in each cost pool.
a. Asset Accounts. An asset account shall be maintained for each facility and within
that account Seattle shall record the original cost of that facility plus betterments
and less retirements.
b. Depreciation. Facilities shall be depreciated according to industry-standard water
system asset lives and a record of life-to-date depreciation shall be maintained for
each facility. No depreciation shall be recorded in the first calendar year of
operation of a facility. A full year's depreciation shall be recorded in every
subsequent year.
C. Net Book Value. The net book value of any facility shall be its original cost plus
betterments and less retirements as recorded in its facility asset account, less life-
to-date depreciation.
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CITY OF RENTON Page 29
2. Infrastructure Costs. Each cost pool shall include the infrastructure costs for its
respective facilities, calculated on a utility, cash or other basis depending upon the
facility and the cost pool as set forth below.
a. Utility Basis. The utility basis shall be used to calculate the infrastructure costs
for all Existing Supply Resources and Seattle Transmission Facilities, as well as
their replacements and betterments. The utility basis may also be used for New
Supply Resources and new transmission facilities in Seattle's discretion. Under
the utility basis, the infrastructure cost for a facility in any year shall be the sum
of (i) the annual depreciation expense recorded for that facility and (ii) the
product of the net book value of that facility and the Rate of Return on
Investment.
At Seattle's discretion, interest costs may be considered current infrastructure
costs during the construction of a facility. However, any such interest costs must
be considered contributions in aid of construction, and not included in the Net
Book Value of the facility for purposes of calculating Utility Basis costs in future
years.
b. Cash Basis. The cash basis may be used in Seattle's discretion for New Supply
Resources and transmission facilities or a portion thereof. Under the cash basis,
the infrastructure cost for a facility in any year shall be the actual cash
expenditure made by Seattle in that year for either the payment of construction
costs or actual principal and interest costs on debt issued to finance its
construction. In the event that the depreciation lifetime of the facility is less than
the term of the debt issued to finance all or a portion of the facility, debt
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i
maturities will be selected such that the construction cost of the facility will be
fully amortized at the end of its depreciation lifetime.
C. Other Basis. Seattle, with the approval of the Operating Board, may determine
one or more other bases on which to calculate infrastructure costs and may apply
these bases to facilities in the New Supply, Renton New Supply, and New
Transmission Cost Pools. Disposition of any facilities under another basis will be
determined at the same time in accordance with Section N.EA
3. Operations Costs. The costs of operating the assets assigned to a cost pool shall be
included in the cost pool. The annual operations costs of a cost pool shall be the labor,
materials, equipment and other direct costs required for the operation, maintenance, and
repair of the facilities in that cost pool, together with any net profit or expense from the
disposition of facilities in that pool. Operations costs shall include the cost of general and
administrative overhead applied in a manner consistent with its application to capital
construction projects.
a. Existing Supply Operations Costs. The parties agree that an efficient way of
handling operations costs for the Existing Supply Cost Pool shall be as follows:
The operations cost base in the Existing Supply Cost Pool for the year 2010 shall
be determined in accordance with the line item labeled "2010 Costs in identified
activities" under Existing Supply in Note 2 — Operations Costs, Notes to the
Wholesale Statements for the City of Seattle, Seattle Public Utilities, Water Fund,
during the annual cost-audit process for 2010 in accordance with Section ME.10,
which occurs by the end of 2011 and applies to all Wholesale Customers and
Seattle. Seattle will notify Water Utility of the actual 2010 operations cost base in
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the Existing Supply Cost Pool in writing, which shall become incorporated as part
of this contract at that time. In each succeeding year, the amount of the
operations cost base from the previous year shall be adjusted by the percentage
increase in the operations cost in the Existing Supply cost centers identified in
Exhibit IX, as amended from time to time.
b. Existing Transmission Operations Costs. The parties agree that an efficient way
of handling operations costs for the Existing Transmission Cost Pool shall be as
follows: the operations costs base in the Existing Transmission Cost Pool for the
year 2010 shall be determined in accordance with the line item labeled "2010
Costs in identified activities" under Existing Transmission in Note 2—Operations
Costs, Notes to the Wholesale Statements for the City of Seattle, Seattle Public
Utilities, Water Fund, during the annual cost-audit process for 2010 in accordance
with Section IV.E.10, which occurs by the end of 2011 and applies to all
Wholesale Customers and Seattle. Seattle will notify Water Utility of the actual
2010 operations cost base in the Existing Transmission Cost Pool in writing,
which shall become incorporated as part of this contract at that time. In each
succeeding year, the amount of the operations cost base from the previous year
shall be adjusted by the percentage increase in the operations cost in the Existing
Transmission cost centers identified in Exhibit IX, as amended from time to time.
C. New Supply Operations Costs. The operation costs of the Regional Water
Conservation Program after January 1, 2002, together with the costs of operating
facilities assigned to the New Supply Cost Pool and any other costs allocated by
the Operating Board, shall be assigned to the New Supply Cost Pool. The
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operations cost base in the New Supply Cost Pool for 2010 shall be determined in
accordance with the line item labeled "2010 Costs in identified activities" under
New Supply in Note 2 —Operations Costs,Notes to the Wholesale Statements for
the City of Seattle, Seattle Public Utilities, Water Fund, during the annual cost-
audit process for 2010 in accordance with Section IV.E.10, which occurs by the
end of 2011 and applies to all Wholesale Customers and Seattle. Seattle will
notify Water Utility of the actual 2010 operations cost base in the New Supply
Cost Pool in writing, which shall become incorporated as part of this contract at
that time. In each succeeding year, the amount of the operations cost base shall
be adjusted by the percentage increase in the operations costs in the New Supply
cost centers as identified in Exhibit IX, as amended from time to time.
d. Renton New Supply Operations Costs. The operation costs of the Regional Water
Conservation Program after January 1, 2012, together with the costs of operating
facilities assigned to the Renton New Supply Cost Pool and any other costs
allocated by the Operating Board, shall be assigned to the Renton New Supply
Cost Pool. The operations cost base in the Renton New Supply Cost Pool for 2012
shall be determined in accordance with the line item labeled "2012 Costs in
identified activities" under New Supply in Note 2 — Operations Costs, Notes to
the Wholesale Statements for the City of Seattle, Seattle Public Utilities, Water
Fund, during the annual cost-audit process for 2012 in accordance with Section
IV.E.10, which occurs by the end of 2013 and applies to all Wholesale Customers
and Seattle. Seattle will notify Water Utility of the actual 2012 operations cost
base in the Renton New Supply Cost Pool in writing, which shall become
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incorporated as part of this contract at that time. In each succeeding year, the
amount of the operations cost base shall be adjusted by the percentage increase in
the operations costs in the New Supply cost centers as identified in Exhibit IX, as
amended from time to time.
e. New Transmission Operations Costs. The actual costs of operating facilities
assigned to the New Transmission Cost Pool and any other costs allocated by the
Operating Board, shall be assigned to the New Transmission Cost Pool.
f. Renton Sub-regional Operations Costs. The actual costs of operating facilities
assigned to the Renton Sub-regional Cost Pool, together with any additional
operations costs approved by Water Utility and Seattle.
4. Disposition Costs. The costs of disposing of assets within a cost pool shall be included in
the cost pool.Net disposition costs shall be calculated as follows:
a. Disposition Under the Utility Basis. The net book value of the facility, less any
sales, salvage, or other revenues derived from the disposition of that facility.
b. Disposition Under the Cash Basis. The value of principal of unpaid maturities of
debt used to finance the construction cost of the facility, less any sales, salvage or
other revenues derived from the disposition of that facility.
C. Disposition Under Other Basis. Disposition of any facilities whose infrastructure
costs are calculated on another basis under section IV.E.2.c. above shall be
determined by the parties as part of the definition of such other basis.
5. Creation of Additional Cost Pools. Seattle, in its discretion, may create additional cost
pools to provide equity and flexibility in payment arrangements and the allocation of
costs as the Seattle Regional Water Supply System expands to include new infrastructure,
PARTIAL REQUIREMENTS CONTRACT
CITY OF RENTON Page 34
operations, and customers. The costs in an additional cost pool, or a portion thereof, may
be added to an existing cost pool subject to the consent of the Operating Board if the
costs to be allocated satisfy the criteria for allocation to the existing cost pool.
a. Creation of Renton New Supply Cost Pool. The parties agree that, due to the
unique circumstances that Seattle will provide Regional Conservation Program
services throughout Water Utility's entire retail service area, but that Water
Utility's purchases of water from the Seattle Regional Water Supply System are
expected to be a minor portion of overall demand for Water Utility, the parties
agree to an alternative cost recovery mechanism for the term of the contract in
lieu of the new supply rates or FC's applicable to other Wholesale Customers.
Accordingly, pursuant to this Section IV.E.5, Seattle is creating the Renton New
Supply Cost Pool.
6. Facilities Charge Revenues. Supply FC revenues, which consist of those revenues from
FCs the Operating Board has determined are to recover a certain portion of New Supply
Resources costs, shall offset infrastructure costs in the New Supply Cost Pool. Surpluses
and deficits in actual Supply FC revenues over costs to be recovered through the Supply
FC shall be carried forward and earn simple interest at Seattle's Average Cost of Debt.
Any current-year deficit (including any surplus balance available from previous years)
shall be paid by rates for the New Supply Cost Pool.New Supply Cost Pool rates shall be
discounted by surplus Supply FC revenues until any deficit Supply FC balance is repaid,
except the amount of this discount shall not exceed, without the agreement of the
Operating Board, twice the maximum annual deficit paid by the rate for the New Supply
Cost Pool in any one year.
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In the event that Supply FC surplus balances exceed the Net Book Value of assets whose
costs are allocated to the Supply FC, the difference between the Supply FC balance and
the Net Book Value of these assets shall be used to discount the rate for the New Supply
Cost Pool (and the Supply FC surplus balance shall be reduced by the amount of this
discount). The use and accounting for transmission FCs shall be done in a like manner to
supply FCs. Seattle and Water Utility agree that FC revenues are the sole property of
Seattle.
7. Allocation of Cost Pools by Customer Class. The costs in cost pools shall be allocated
within the pools as follows:
a. Allocation of Existing Supply Cost Pool. The total cost of the Existing Supply
Cost Pool shall be allocated to two customer classes as follows:
i. Block Purchase Customer Class. The portion of costs in the Existing
Supply Cost Pool allocated to holders of Block Purchase Contracts shall
be determined pursuant to those contracts.
ii. Full and Partial Requirements Customer Class. The holders of Full and
Partial Requirements Contracts and the Seattle Retail Distribution System
shall be allocated the remaining costs in the Existing Supply Cost Pool.
b. Allocation of New Supply Cost Pool. The costs allocated to the New Supply
Cost Pool shall be:
i. Block Purchase Customer Class. The holders of Block Purchase Contracts
shall be allocated no costs from the New Supply Cost Pool.
ii Full and Partial Requirements Customer Class. The holders of Full and
Partial Requirements Contracts, except for Renton, and the Seattle Retail
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CITY OF RENTON Page 36
Distribution System shall be allocated all costs in the New Supply Cost
Pool.
C. Allocation of Existing Transmission Cost Pool. The costs of the Existing
Transmission Cost Pool shall be allocated as follows:
i. Block Purchase Customer Class. The proportion of costs in the Existing
Transmission Cost Pool allocated to holders of Block Purchase Contracts
shall be determined pursuant to those contracts.
ii Full and Partial Requirements Customer Class. The holders of Full and
Partial Requirements Contracts and the Seattle Retail Distribution System
shall be allocated the remaining costs in the Existing Transmission Cost
Pool.
d. Allocation of New Transmission Cost Pool.
i. Block Purchase Customer Class. The holders of Block Purchase Contracts
shall be allocated no costs from the New Transmission Cost Pool.
ii Full and Partial Requirements Customer Class. The holders of Full and
Partial Requirements Contracts and the Seattle Retail Distribution System
shall be allocated all costs in the New Transmission Cost Pool.
e. Allocation of the Renton New Supply Cost Pool.
i Block Purchase Customer Class. The holders of Block Purchase Contracts
shall be allocated no costs from the Renton New Supply Cost Pool.
ii. Full and Partial Requirements Customer Class. The holders of Full and
Partial Requirements Contracts, except for Renton, and the Seattle Retail
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Distribution System shall be allocated no costs from the Renton New
Supply Cost Pool.
iii. Water Utility. Water Utility shall be allocated 5.7% of the costs from the
Renton New Supply Cost Pool. Seattle may update the 5.7% share of
costs allocated to Water Utility, either as a result of Water Utility
acquiring additional service area pursuant to Section II.B.2.c, or as of
January 1, 2017 and every 5 years thereafter during the term of the
contract, which will be a calculation of the percentage of Water Utility's
retail flows for all customers in its retail service area as compared to all
retail flows of the Wholesale Customers and the Seattle Retail Distribution
System.
f. Allocation of Renton Sub-region Cost Pool. All costs in the Renton Sub-regional
Cost Pool shall be allocated according to Exhibit XII.
g. Allocation of Additional Cost Pools. At the time an additional cost pool is
created by Seattle pursuant to Section IV.E.5, the additional cost pool will be
allocated by customer class.
8. Facilities Charges. If Seattle establishes FCs as authorized herein, then such charges
shall be calculated as follows:
a. ERU Definition. Seattle shall develop a definition of an Equivalent Residential
Unit ("ERU") based on, meter size as set forth in Exhibit VI, number of
residential units, water use, or other basis which shall be consistent with accepted
industry standards. The Operating Board shall have the right to review and
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comment on the definition and Seattle shall consider the Operating Board's
comments.
b. Record-Keeping. Upon reasonable notice, Water Utility shall make its billing and
connection records available to Seattle for inspection and copying during normal
business hours and Seattle's billing and connection records shall be made
available to any Wholesale Customer on the same basis.
C. Annual Calculation of ERUs. Until such time as Seattle develops another basis,
the calculation of ERUs in any year shall be the annual growth in the number of
meters installed by Water Utility during the year taking into account the size of
each meter.
d. Imposition of Facilities ChgMgs. Seattle shall collect and Water Utility shall pay
FCs based on the following:
i. Independent Sources. Water Utility operates the sources of water supply
independent of the Seattle Regional Water Supply System listed in Exhibits I
and XIII.
ii. Record Maintenance. Water Utility shall maintain records of the monthly
production of each independent source of supply in a manner consistent with
industry standards, and shall allow Seattle, upon reasonable notice, to
examine and copy these records at their customary location during normal
business hours.
iii. Permanent Interruption of an Independent Source. In the event that the annual
water supply capacity of an Independent Source, or of all Independent
Sources in aggregate, is found to be permanently interrupted, Water Utility
shall pay Seattle an amount equal to the then-current ERU Fee multiplied by
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the number of ERUs that could be served, on an annual basis, by a supply of
the same size as the permanently interrupted independent supply. This
amount shall be paid in annual installments over a period not to exceed five
years.
iv. Seattle Report on ERUs. Seattle shall prepare and distribute a report no later
than March 31 St of each year showing the ERU count of the Seattle Retail
Distribution System and each Wholesale Customer, except Renton, on such
basis for the previous year and each year since the effective date of this
contract.
e. Rate Setting. The structure of FCs or water rates charged to the holders of Full
and Partial Requirements Contracts shall be determined by Seattle, at its sole discretion,
except that the price may not, without the consent of Water Utility, be set to collect more
than the costs forecast under Section IV hereof and Rate of Return on Investment. FCs
shall be calculated as set forth on page 1 of Exhibit VI.
9. Cost Audit. At the end of each fiscal year, Seattle shall provide a statement of actual
costs allocated to each cost pool and other costs and revenues received, which statement
may be audited by an external auditor selected by the Operating Board. In addition,
Water Utility may have the statement audited by an external auditor of its choice, solely
at Water Utility's expense.
10. Transition.
a. Prior Operating Board Decisions. Water Utility acknowledges and agrees it will
be bound by decisions the Operating Board has made under the authority in this
PARTIAL REQUIREMENTS CONTRACT
CITY OF RENTON Page 40
contract that have been made prior to the Effective Date of this contract so that
such decisions apply to all holders of Full and Partial Requirements Contracts.
b. Early Contract Signing Fee. Within two months of the Effective Date of this
contract, Water Utility agrees to pay to Seattle an Early Contract Signing Fee of
$6373.00. If a Water Utility requires a longer period, it may pay the fee in
monthly increments until December 2011 at I%interest.
C. Transfer to Full and Partial Rates.
i. Within two months of the Effective Date of this contract, Seattle will: 1)
make appropriate changes to its billing system to charge Water Utility for
water supplied under this contract at the then current rates for Full or
Partial Requirements Contracts under Seattle Municipal Code ("SMC")
Section 21.04.440.E.2 ("Billing System Change Date"); and 2) credit back
to Water Utility the difference between the amount Water Utility paid for
water supplied at the then current rates under its Water Purveyor Contract
between the City of Seattle and the City of Renton for the Sale of
Wholesale Water by Seattle to Renton, dated November 1, 1998, and what
the Water Utility would have paid for water supplied at the then current
rates for Full or Partial Requirements Contracts under SMC 21.04.440.E.2
from January 1, 2011 until the Billing System Change Date.
PARTIAL REQUIREMENTS CONTRACT
CITY OF RENTON Page 41
d. Existing Regional Deficit. The parties acknowledge and agree that as of
December 31, 2010, there may be an existing regional deficit or surplus in the
running balance under Section IV.1.1 that was created by Wholesale Customers
signing contracts prior to 2011 and the Seattle Regional Distribution System.
Although Water Utility did not contribute to the existing deficit or surplus, it will
have to pay higher or lower rates in the 2012-2014 rate period to help eliminate
the deficit or surplus, respectively. In the event of a deficit, Seattle agrees to
credit back to Water Utility, 70% of the amount that Water Utility will contribute
to eliminating the existing deficit through higher rates. In the event of a surplus,
Water Utility agrees to pay Seattle 70% of the amount that Water Utility will
benefit from eliminating the existing surplus through lower rates. The actual
amount of the existing deficit or surplus will be determined during the annual cost
audit process for 2010,which is targeted for third quarter 2011. The amount to be
credited or charged will be based on Water Utility's percentage of 2010 annual
flow times the total existing regional deficit or surplus times 70%. Upon the
completion of the 2010 annual cost audit process, Seattle will provide Water
Utility with an accounting of the total credit or charge in writing. Beginning
January 2012, Seattle will provide one or more monthly credits or charges on
Water Utility's water bill until the entire credit or charge balance is paid off.
Seattle or Water utility, as appropriate, will pay the entire balance by December
31, 2012. Any outstanding credit or charge balance will accrue interest at
Seattle's average cost of debt from December 31, 2010 until the entire balance is
paid off.
PARTIAL REQUIREMENTS CONTRACT
CITY OF RENTON Page 42
e. One-time Regional Conservation Program Fees.
i. Water Utility agrees to pay Seattle a one-time Regional Conservation
Program start-up fee of$15,000 no later than December 31, 2011.
ii. Water Utility agrees to pay Seattle a one-time Regional Conservation
Program buy-in fee of$34,000 no later than January 31, 2012.
IV.F. Elective Services
1. Water Supply Services. Seattle may provide certain elective services (e.g. conservation,
engineering) to Water Utility upon request by Water Utility. Such services shall be
negotiated and contracted for separately between Water Utility and Seattle.
2. Transmission Wheeling. In consultation with the Operating Board, excess transmission
capacity may be made available by Seattle for a fee for purposes of wheeling water
between points within the Seattle Regional Water Supply System to Water Utility or to
others.
3. Water Quality. So long as Seattle owns and operates a water quality lab, Water Utility
may request the services of that lab based on its published rates.
IV.G. Rate Adjustment
1. Rate Adjustment. Upon 120-days notice to Water Utility of its intent to do so, Seattle
may adjust water service rates and FCs, if applicable,to Water Utility subject to the terms
of this contract. Rate adjustments will be effected only within five years of the
completion of a cost of service study to be conducted by Seattle, which shall include an
analysis of the allocation of operation, maintenance and capital costs between cost pools.
Such study shall be prepared in accordance with accepted industry standards. In addition,
Seattle shall review the Operating Board's comments and recommendations on the rate
PARTIAL REQUIREMENTS CONTRACT
CITY OF RENTON Page 43
proposal and provide a written explanation of any recommendations that are not
accepted.
2. Statement of Annual Costs for Block Payment. On or before December lst of each year,
beginning December 1, 2011, Seattle will notify Water Utility of the costs allocated to
Water Utility through the Renton New Supply Cost Pool for the next year. The annual
cost will be the sum of the prospective cost estimate allocated to Water Utility through
the Renton New Supply cost Pool plus or minus the amount of deficit or excess,
respectively, indentified in the most recent cost audit for the Renton New Supply Cost
Pool in accordance with Section IV.I.4.
3. Rate Consultant. An independent rate consultant shall be selected by Seattle in
consultation with the Operating Board. Detailed information and progress reports from
the consultant will be made to Water Utility during the course of the study upon drafting
of each major study section directly affecting Water Utility and other Wholesale
Customers. A final consultant report shall be made available to Water Utility not less
than 30 days before Seattle formally transmits any resulting rate adjustment proposal to
the Operating Board.
IV.H. Retail Rate-Setting
Each party to this contract shall have sole authority for establishing retail rates, connection
charges and other fees and charges within its respective jurisdiction.
IV.I. Truing Actual Costs and Actual Revenues
A mechanism for reconciling revenue targets for the various cost pools and the actual revenues
received during each year shall be implemented by Seattle as follows:
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CITY OF RENTON Page 44
1. For each previously identified class of customers in each cost pool, except for the Renton
New Supply Cost Pool, Seattle shall maintain a running balance of the excess or deficit of
actual rate revenues collected less actual expenses incurred. Each balance under this
section shall earn simple interest at the rate of Seattle's Average Cost of Debt. At the end
of each year, each balance under this section shall be adjusted to reflect the operating
results of that year. The statement of these balances shall be reviewed and approved by an
external auditor.
2. FC balances shall be carried forward as set forth in Section IV.E.6.
3. Each wholesale rate study shall adjust rates to eliminate the cost pool balances. ERU fees
shall be based on the costs of increments in supply and transmission capacity, and shall
not be adjusted to reflect surpluses or deficits in FC revenues.
4. No later than August 1 of each year, Seattle shall provide Water Utility a statement of
actual costs allocated to Water Utility through the Renton New Supply Cost Pool and
other costs and revenues for that cost pool received during the prior year, which
statement shall be audited by an external auditor. Water Utility may also have the
statement audited by an external auditor of its choice, solely at its expense. This
statement shall clearly identify the amount by which payments made by Water Utility
during the prior year were in excess of, or insufficient to meet the actual costs allocable
to Water Utility through the Renton New Supply Cost Pool for the prior year. This
surplus or deficit shall earn interest at Seattle's Average Cost of Debt, and shall be
included in the Statement of Annual Costs under Section IV.G.2. No later than
December 31 of the year following termination of the contract, any remaining surplus or
deficit balance shall be paid in cash by the party owing the balance to the other party.
PARTIAL REQUIREMENTS CONTRACT
CITY OF RENTON Page 45
SECTION V. OPERATING BOARD
1. Purpose. The purpose of the Operating Board is to provide certain limited authority to a
board of representatives over policy and operational matters as they affect the Seattle
Regional Water Supply System.
2. Structure and Authority. The Operating Board shall have the powers and authority as set
forth herein. Exhibit IV describes the structure and authority of the Operating Board.
In the event of a conflict between provisions of this contract which grant specific powers
to the Operating Board and Exhibit IV, such grants of specific powers shall control.
3. Review. The structure and authority of the Operating Board may be reviewed as of
January 1, 2012 and every five years thereafter to determine its effectiveness in
addressing regional and contractual issues. The review may address the composition of
the Board and its powers and authority as set forth herein and in Exhibit IV, provided that
notwithstanding any other term or provision of this contract, Seattle shall not have the
power to disband the Operating Board nor take away or diminish the powers vested in the
Operating Board as set forth in Sections II, III and IV of this contract. Either party may
initiate the review. The reviewing party shall provide the other with its comments and
proposals. The parties agree to consider the other party's comments and proposals and to
respond in writing stating its reasons for rejecting any proposals and the reasons for its
own counter-proposal. After consideration of all comments and proposals at each five
year interval, Seattle may make changes in the structure and authority of the Operating
Board that are not inconsistent with the provisions of this subsection.
PARTIAL REQUIREMENTS CONTRACT
CITY OF RENTON Page 46
SECTION VI. PLANNING
VI.A. Reporting of Planning Data
1. By no later than April 1 of each year, Water Utility shall report to Seattle and the
Operating Board as follows:
a. Its annual and peak day total system demand for each year, during the term of this
contract, as of December 31St of the previous year.
b. Its forecast of Full or Partial Water Requirements, as appropriate, for the year
including estimates of annual water consumption and maximum 24-peak demand
for the ensuing calendar year, and for the fifth, tenth, and fifteenth year in the
future. Such forecasts shall reflect the best judgment of Water Utility.
2. Water Utility shall report other data relating to water supply and demand as may be
reasonably requested by Seattle for water planning purposes.
3. Records relevant to water supply and consumption within the possession of Seattle or
Water Utility shall be provided to the other upon reasonable request.
VI.B. Submittal of Water Utility Water System Plans
Water Utility shall provide a copy of its water system plan, including any amendments,to Seattle
for review.
VI.C. Seattle as Water Planning Agency
Seattle shall be the lead agency and primary planning authority for the purposes of fulfilling its
obligations to provide for the Full or Partial Water Requirements of Water Utility, as appropriate.
Seattle, in consultation with the Operating Board, shall examine and investigate water supplies
suitable and adequate to meet the present and reasonable future needs of Seattle and the
Wholesale Customers. Seattle shall prepare and adopt a plan for acquiring such water supplies in
PARTIAL REQUIREMENTS CONTRACT
CITY OF RENTON Page 47
a timely fashion. The plan shall provide for the lands, waters, water rights and easements
necessary therefor, and facilities for retaining, storing and delivering such waters, including
dams, reservoirs, aqueducts and pipelines to convey same throughout the Seattle Regional Water
Supply System. In preparing or adopting the plan, Seattle shall consider as possible alternatives
or additional water supply sources, the acquisition of water from sources controlled or developed
by individual water utilities, legally constituted groups of water utilities or utilities which are not
presently supplied by the Seattle Regional Water Supply System. Seattle has final responsibility
for the plan and for fulfilling the obligations of this contract. However,the Operating Board may
participate in developing the plan by proposing goals and objectives for the Seattle Regional
Water Supply System,by making any additional suggestions and by acting in a review capacity.
VI.D. Comprehensive Capital Facilities Plan
Before ordering any major improvements to fulfill the requirements of this contract, Seattle shall
adopt and maintain a comprehensive capital facilities plan for the Seattle Regional Water Supply
System, which provides for such improvements. Any capital facilities plan adopted by Seattle
for the Seattle Regional Water Supply System shall comply with and implement the Rate-making
and Cost Allocation Principles in Section IV.A of this contract. This plan shall identify any
reasonable costs for capital improvements to alleviate a disproportionate adverse impact to the
distribution system(s) of Water Utility, another Wholesale Customer represented on the
Operating Board or Seattle, to the extent it is caused by a capital improvement in the capital
facilities plan for the Seattle Regional Water Supply System. When such plan is updated or
amended, it shall be reviewed by the Operating Board prior to submission to the Seattle City
Council. The Operating Board shall respond within 60 days of receipt of the plan, or its approval
shall be presumed to be given. The response submitted by the Operating Board regarding
PARTIAL REQUIREMENTS CONTRACT
CITY OF RENTON Page 48
facilities substantially affecting Water Utility and other Wholesale Customers shall be seriously
considered by Seattle. Seattle shall reply to the Operating Board within 90 days with its
comments. The Operating Board and Seattle shall use their best efforts to arrive at a mutually
acceptable plan.
VI.E. Emergency Planning
An emergency plan shall be prepared and maintained by Seattle as part of its Water System Plan
to provide for water supply in the event of drought or disaster. Such plan shall be prepared
pursuant to the procedure outlined in Section VI.D. Water Utility shall use reasonable efforts to
comply with the provisions of such plan, or alternatively, Water Utility may adopt its own
emergency plan if it believes it is prudent to do SO.
SECTION VII. PAYMENT
VII.A. Collection of Money Due City
Seattle shall bill Water Utility on a monthly basis for all charges due under this contract. For the
annual cost allocated to Water Utility each year through the Renton New Supply Cost Pool,
Seattle will bill Water Utility 1/12 of the annual cost each month. Water Utility shall pay such
charges within 60 days of the billing date.
VII.B. Penalties for Late Payment
All late payments, and any refund of an amount in dispute that was paid under protest, shall
accrue interest at I%per month.
VII.C. Billing Disputes
Water Utility may dispute the accuracy of any portion of charges billed by Seattle by notifying
Seattle in writing within the 60-day payment period of the specific nature of the dispute and
paying the undisputed portion of the charges. This provision is not intended to limit Water
PARTIAL REQUIREMENTS CONTRACT
CITY OF RENTON Page 49
Utility's right to dispute billing errors or charges that are not reasonably discoverable by Water
Utility within the 60-day payment period.
Seattle shall consider and decide any billing dispute in a reasonable and timely manner. Any
billing disputes that remain after such consideration shall be reconciled pursuant to the dispute
resolution procedures of this contract.
SECTION VIII. CONTRACT AMENDMENTS
Seattle shall notify Water Utility and all other holders of Full or Partial Requirements Contracts
of any amendments to such contracts within 30 days of the execution of such amendment. Water
Utility shall then have 90 days to decide whether to include such amendment in this contract by
giving written notice to Seattle of its election to do so. Upon the issuance of such notice, Seattle
shall issue the amendment to Water Utility and the amendment shall be final and binding upon
both parties upon mutual execution.
SECTION IX. DISPUTE RESOLUTION
Dispute resolution shall proceed as follows:
IX.A. Operating Board Review
Any dispute regarding this contract that remains unresolved after good faith negotiations
between Water Utility and Seattle shall be referred to the Operating Board for consideration and
recommendation. Each party shall submit a written statement regarding the dispute to the
Operating Board.
I. If the dispute cannot be resolved in discussions with the Operating Board, then the
Operating Board shall provide written recommendations to each party within 60 days of
the above submittal setting forth its interpretation of the applicable facts and law.
PARTIAL REQUIREMENTS CONTRACT
CITY OF RENTON Page 50
2. If either party rejects the written recommendation of the Operating Board, that party
shall,within 10 days, notify the other party in writing of its reasons.
IX.B. Seattle City Council Review
The written statements of the parties, the recommendations of the Operating Board, if applicable,
and the written reasons for either party's rejection of those recommendations shall then be
submitted to the Seattle City Council for review.
1. Within 60 days of the submittal of the written materials, the Seattle City Council shall
provide written recommendations to resolve the dispute.
2. If either party rejects the written recommendation of the Seattle City Council, that party
shall, within 10 days,notify the other party in writing of its reasons.
IX.C. Non-binding Mediation
Within 10 days of receiving the written rejection of the Seattle City Council's recommendations
by one or both parties, each party shall designate in writing not more than 5 candidates it
proposes to act as a non-binding mediator.
1. If the parties cannot agree on one of the mediators from the combined list within 5 days,
the Operating Board shall, within an additional 5 days, select one of the mediators from
either list to serve as mediator.
2. Upon selection of the mediator, the parties shall use reasonable efforts to resolve the
dispute within 30 days with the assistance of the mediator.
IX.D. Resort to Litigation
If mediation fails to resolve the dispute within 30 days of selection of the mediator, the parties
may thereafter seek redress in court subject to Section X.H below.
PARTIAL REQUIREMENTS CONTRACT
CITY OF RENTON Page 51
1w low
IX.E. EFFICIENCY OF REVIEW
In order to facilitate a more efficient review of disputes under this Section, the Parties agree to
skip the step in Section IX.A above in order to avoid a redundant act. The Parties may also
mutually agree to skip the step in Section IX.C, if it is in the best interests of the Parties in
resolving the dispute.
SECTION X. MISCELLANEOUS
X.A. Notification
Whenever written notice is required by this contract, that notice shall be given to the following
representatives by actual delivery or by the United States mail (registered or certified with return
receipt requested,) addressed to the respective party at the following addresses or a different
address hereafter designated in writing by the party):
SEATTLE: WATER UTILITY [CITY OF l:
Director Administrator-Public Works Department
Seattle Public Utilities City of Renton
Seattle Municipal Tower Renton City Hall
700 Fifth Ave. , Suite 4900 1055 South Grady Way
PO Box 34018 Renton,WA 98057
Seattle, WA 98124-4018
The date of giving such notice shall be deemed to be the postmarked date of mailing.
PARTIAL REQUIREMENTS CONTRACT
CITY OF RENTON Page 52
r.rP
X.B. Severability
The purpose of this contract is to provide for long-term water supply planning and certainty for
both Seattle and Water Utility through adoption of orderly plans calling for the expenditure of
significant sums of money for regional water supply and transmission facilities. It is the intent of
the parties that if any provision of this contract or its application is held by a court of competent
jurisdiction to be illegal, invalid, or void, the validity of the remaining provisions of this contract
or its application to other entities, or circumstances shall not be affected. The remaining
provisions shall continue in full force and effect, and the rights and obligations of the parties
shall be construed and enforced as if the contract did not contain the particular invalid provision;
provided, however, if the invalid provision or its application is found by a court of competent
jurisdiction to be substantive and to render performance of the remaining provisions unworkable
and non-feasible, is found to seriously affect the consideration and is inseparably connected to
the remainder of the contract,the entire contract shall be null and void.
X.C. Consent
Whenever it is provided in this contract that the prior written consent or approval of either party
is required as a condition precedent to any actions, in each such instance said consent or approval
shall not be unreasonably withheld, and in each such instance where prior consent is sought,
failure of the party to respond in writing within 90 days of the request shall be deemed as that
party's consent or approval unless expressly stated herein. This provision does not apply to
requests for amendments of this contract.
PARTIAL REQUIREMENTS CONTRACT
CITY OF RENTON Page 53
X.D. Emergency Situations
Nothing in this contract shall be deemed to preclude either party from taking necessary action to
maintain or restore water supply in emergency situations and such action shall not be deemed a
violation of this contract.
X.E. No Joint Venture- Individual Liability
This is not an agreement of joint venture or partnership, and no provision of this contract shall be
construed so as to make Water Utility individually or collectively a partner or joint venturer with
any other Wholesale Customer or with Seattle. Neither party is an agent of the other. Neither
Seattle nor Water Utility shall be liable for the acts of the other in any representative capacity
whatsoever.
X.F. Complete Agreement
This contract represents the entire agreement between the parties hereto concerning the subject
matter hereof. This contract may not be amended except as provided herein.
X.G. Relinquishment of Prior Contract
Upon the Effective Date of this contract, Water Utility relinquishes its then existing 1982 Water
Purveyor Contract with Seattle and the terms and conditions of that 1982 Water Purveyor
Contract shall have no further force and effect.
X.H.Venue,Jurisdiction and Specific Performance
In the event of litigation between the parties, venue and jurisdiction shall lie with the King
County Superior Court of the State of Washington. The parties shall be entitled to specific
performance of the terms hereof.
PARTIAL REQUIREMENTS CONTRACT
CITY OF RENTON Page 64
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X.I. Default
In the event of default of any provision of the contract, the non-defaulting party shall issue
written notice to the other party setting forth the nature of the default. If the default is for a
monetary payment due hereunder, the defaulting party shall have thirty (30) days to cure the
default. In the event of other defaults, the defaulting party shall use its best efforts to cure the
default within ninety (90) days. If such default cannot be reasonably cured within such ninety
(90) day period, the defaulting party shall, upon written request prior to the expiration of the
ninety(90) day period be granted an additional sixty(60) days to cure the default.
X.J. Force Majeur
The time periods for the parties' performance under any provisions of this contract shall be
extended for a reasonable period of time during which a party's performance is prevented, in
good faith, due to fire, flood, earthquake, lockouts, strikes, embargoes, acts of God, war and civil
disobedience. If this provision is invoked, the parties agree to immediately take all reasonable
steps to alleviate, cure, minimize or avoid the cause preventing such performance, at their sole
expense.
X.K. Successors
This contract shall inure to the benefit of and be binding upon the parties and their successors
and assigns.
X.L. Exhibits
Exhibits I through XIII are attached hereto and are hereby incorporated by reference as if set
forth in full herein.
PARTIAL REQUIREMENTS CONTRACT
CITY OF RENTON Page 55
INTENTIONALLY BLANK
PARTIAL REQUIREMENTS CONTRACT
CITY OF RENTON Page 56
SIGNATURE PAGE
IN WITNESS WHEREOF, the parties hereby execute this contract.
CITY OF RENTON:
BY: �� r
TITLE: Denis Law, Mayor
�f��4NL1.0-�0- !.(JL2 /
Attest: DATE // ' • •
Bonnie I. Walton
City Clerk
AUTHORIZING LEGISLATION: ORDINANCE/RESOLUTION 4089
THE CITY OF SEATTLE:
BY: �At(�
Director, Seattle Public Utilities
DATE:
AUTHORIZING LEGISLATION: ORDINANCE No.
PARTIAL REQUIREMENTS CONTRACT
CITY OF RENTON Page 57
LIST OF EXHIBITS
I. Contract Sections II.B and III.B List
II. Service Connections, Minimum Hydraulic Gradients, and Maximum Flow Rates of
Water Supplied
III. Demand Charge Methodology
IV. Operating Board Structure
V. Reserved
VI. Calculation of ERUs as a Part of Facilities Charges
VII. Seattle Supply Facilities
VIII. Seattle Transmission Facilities
IX. Cost Centers used for Operations Cost Indexes
X. Water Utility Service Area
XI. List of Renton Sub-region Transmission Facilities
XII. Allocating Costs and Setting Rates for the Renton Sub-region
XIII. Water Utility Independent Sources of Supply
PARTIAL REQUIREMENTS CONTRACT
CITY OF RENTON Page 59
INTENTIONALLY BLANK
PARTIAL REQUIREMENTS CONTRACT
CITY OF RENTON Page 60
+..►
EXHIBIT I
List of documents, commitments, adjustments, reductions, agreements, and/or written approvals
by Seattle regarding the supply,purchase or resale of water according to Sections II.B. and III.B
of this Contract:
1. Intertie Agreements:
Entity/location Meter Capacity Type of Comment
Size Service
Coal Creek Utility District(2009) 8" 1,250 gpm Emergency To Coal Creek
2610 Lynwood Ave NE - PRV 53 One-way Utility District
City of Tukwila(1995) 8" 1,250 gpm Emergency To/From
17300 W. Valle Hwy- PRV 23 2-way Tukwila
City of Kent(1995) 10" 1,950 gpm Emergency To/From Kent
4208 Lind Ave SW 2-way
Skyway Water District/12603 82" 12" 2,800 gpm Emergency To/From
Ave S (2006) 2-way Skyway
City of Seattle(2002) 8" 1,050 gpm Emergency To Seattle
2000 Kirkland Ave SE
City of Seattle (2002) 10" 1,950 gpm Emergency To Seattle
Union Ave SE& SE 2°d Pl.
2. Independent Well Sources:
Existing Water Rights
Permit Name of Maximum Maximum
Certificate or Rightholder or Priority Date Source Name Primary or Instantaneous Annual
Claim No. Claimant /No. Supplemental Flow Rate t Volume
(Q) (Qa)
gpm ac-ft/yr
Infiltration
G1-20605C City of Renton May 3,1973 Gallery(Springbrook Primary 1,050 1,680
Springs)
GWC 886-D City of Renton Jan 1, 1944 RW-1 Primary 19040 1,676
GWC 5838- City of Renton Apr 14, RW-1 Primary 960
A 1966
GWC 5838- City of Renton Apr 14, RW-1 Supplemental 1,536
A 1966
GWC 887-D City of Renton Jan 1, 1944 RW-2 Primary 11040 838
GWC 5835- City of Renton Apr 14, RW-3 Primary 1,600 2,560
A 1966
GWC 5836- City of Renton Apr 14, RW-1,2,3 Primary 1,960
A 1966
GWC 5836- City of Renton Apr 14, RW-11 2,3 Supplemental 3,136
A 1966
PARTIAL REQUIREMENTS CONTRACT
CITY OF RENTON Page 61
GWC 6775- City of Renton Apr 1, 1968 PW-8 Primary 3,000 3,622.5
A
GWC 6775- City of Renton Apr 1, 1968 PW-8 Supplemental 1,216.5
A
GWC 6776- City of Renton Jan 21,1969 PW-8 Primary 500 800
A
G1-24191C City of Renton Oct 18, 1982 PW-9 Primary 1,300 1,040
GWC 3591- City of Renton Feb 18, PW-5A Primary 1,300 2,000
A 1953
GWC 5834- City of Renton Apr 14,1966 PW-5A Primary 200 320
A
SWC 463 City of Renton May 17, Springbrook 1930 Creek Primary 1,032.3
GWC 884-D City of Renton Nov 1, 1942 Well 4 Primary 170
G1-24783-P City of Renton Jan 2, 1986 PW-10 Supplemental 1,600 1,792
G1-24781-P City of Renton Jan 2, 1986 PW-11 Supplemental 1,600 1,792
G1-25396-P City of Renton Feb 23, PW_11 Supplemental 900 1,008
1989
G1-24782-P City of Renton Jan 2, 1986 PW-12 Supplemental 1,600 1,792
G1-25397-P City of Renton Feb 23 1989, PW-17 I Supplemental 1,500 1,680
TOTAL 15,152.3 14,809.5
3. Water Supply Contracts To Other Water Utilities:
CAG-93-097 - Agreement with Bryn Mawr/Lakeridge Water and Sewer District, now known as
Skyway Water& Sewer District for Water Supply and Joint Storage and Transmission facilities.
This agreement dated January 1, 1993, is for the financing and cost-sharing between the City and
the District for the design, construction, operation, maintenance and joint-use of the City's West
Hill 1.3 MG reservoir and transmission mains. The agreement also provides for the wholesale of
water from the City to the District. The City supplied the District an average of 0.15 MGD over
the past six years through a single 10-inch metered connection. The agreement was effective on
January 1993 and shall remain effective until it is terminated by agreement of the parties.
CAG-02-123 — Agreement for the sale of water in an emergency by the City of Renton to the
City of Seattle, dated November 30, 2002.
CAG-95-034 —Agreement for the sale of water in an emergency by the City of Renton and the
City of Tukwila, dated March 21, 1995.
CAG-95-071 — Agreement for the sale of water in an emergency by the City of Renton and the
City of Kent, dated May 15, 1995.
2011 Agreement for the sale of water in an emergency by the City of Renton and Skyway Water
& Sewer District. The agreement is anticipated to be executed by both parties before December
2011. The emergency intertie was constructed in 2006 and is currently operational.
PARTIAL REQUIREMENTS CONTRACT
CITY OF RENTON Page 62
2011 Agreement for the sale of water in an emergency by the City of Renton and Coal Creek
Utility District. The agreement is anticipated to be executed by both parties before December
2011. The emergency intertie was constructed in 2009 and is currently operational.
PARTIAL REQUIREMENTS CONTRACT
CITY OF RENTON Page 63
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EXHIBIT III
DEMAND CHARGE METHODOLOGY
The policy of Seattle Public Utilities is to supply water to its Wholesale Customers at, as near as
is practical, the twenty-four hour average flow rate, during the peak demand season (June
through August). To comply, the Wholesale Customers have to construct adequate storage
volume within their individual systems, or sometimes collectively, so as to avoid excessive peak
flow withdrawals from the Seattle Transmission Facilities. The Demand Metering Program is
established to set performance standards, and to monitor the Wholesale Customer's compliance
with this policy. If an individual Water Utility exceeds the prescribed threshold, a "demand
charge" is calculated.
Except where other agreements supersede the provisions of this contract, each Water Utility shall
be subject to a demand charge based on effective deficient storage, as determined by the peak
instantaneous flow rate, and the equivalent financing costs to provide storage. The demand
charge rate (i.e., dollars per 1000 gallons of deficient storage) shall be based on the equivalent
cost of providing the deficient storage. This rate will be determined as part of each rate study.
The Demand Metering Program is charged with implementation of the "demand charge"
methodology. It shall be the responsibility of Seattle, in consultation with the Operating Board,
to determine the appropriate means to achieve the program's purpose. The options that may be
considered range from temporary suspension on a year by year basis to full activation, as
described below.
There shall be no requirement for Seattle to install demand-metering equipment at each Service
Connection in order to assess a demand charge. Seattle may choose to apply"demand metering"
selectively to certain parts of the Seattle Transmission Facilities that are designated as "critical"
from the standpoint of hydraulic capacity or other operational considerations. Seattle may choose
to apply"demand metering" intermittently in various parts of the Seattle Transmission Facilities
for the purpose of monitoring for compliance by individual Wholesale Customers or groups of
Wholesale Customers on a given line segment.
PARTIAL REQUIREMENTS CONTRACT
CITY OF RENTON Page 67
EXHIBIT IV
OPERATING BOARD STRUCTURE
1. Structure. The Operating Board(or"Board") shall be structured as follows:
a. The Board shall consist of seven (7) members, composed of three members representing
Seattle Public Utilities (SPU), three members representing Seattle's Wholesale
Customers selected as described below and one independent party selected as set forth
below to be a tie-breaker as needed. Board members shall, to the best of their ability, act
in the best interests of the Seattle Regional Water Supply System as a whole and shall not
represent the interest of a group of utilities or an individual utility.
b. The term of each Board position shall commence on January 1 and shall be for four (4)
years. Terms of each Board position shall be staggered such that no more than two
positions are renewed in any single year. Board members may serve not more than three
successive terms.
c. Three Board members representing the Wholesale Customers will be selected from the
holders of Full and Partial Requirements Contracts . Wholesale Customers will be sorted
into three categories based on utility size. The selected categories will be small, medium
and large utilities, which will be made up from approximately equal numbers of holders
of Full and Partial Requirements Contracts. Each category of utility may elect, by
majority vote (one vote per utility) its representative to the Operating Board. The Board
will be recomposed on January 1, 2012 and every 5 years thereafter.
d. The seventh member of the Board shall be a person having expertise in the operations of
regional water supply systems. Such person shall be selected by majority vote of the
other Board members. In the event of a deadlock in selecting the independent
representative, the independent Board member shall be selected by Judicial Arbitration
and Mediation Services Inc., of Seattle, Washington or its successor. The seventh
member shall not vote on issues coming before the Board unless there is a deadlock in the
voting among the other six Board members. The seventh member may nevertheless
express his or her opinions in Operating Board discussions. Such member shall have no
employment, financial or contractual relationship with Seattle nor any Wholesale
Customer or any other actual or apparent conflict of interest in holding this position.
2. Voting. Except as otherwise provided above, each member of the Board shall have one vote
on all matters coming before the Board. Each Board member may appoint an alternate to
vote in his or her absence. A quorum of four (4) Board members present shall be required
for any vote. Members of the Board may not grant proxies for any vote.
3. Chairperson. The Board shall have a Chairperson who will be selected and have duties as
defined below:
a. The Chairperson shall be selected at the first regularly scheduled meeting of each new
year.
PARTIAL REQUIREMENTS CONTRACT
CITY OF RENTON Page 68
b. All Chairpersons shall be selected by the Board using a nomination and voting
process.
c. Nomination for the position of Chairperson shall be taken from Board members. The
Chairperson shall be selected based upon the simple majority vote of Board members.
Should the Board fail to elect a Chairperson at the first regularly scheduled meeting
of the new year, a designated representative from SPU shall be the Acting
Chairperson until such time as the Board elects a Chairperson.
d. The Chairperson shall have the responsibility to call meetings, determine the agenda
and preside over meetings. In the absence of the Chairperson, for whatever reason, a
designated representative from SPU shall be the Acting Chairperson for that meeting.
The Chairperson shall also act as the spokesperson for the Board and liaison between
the Administrator and the Seattle City Council's Committee on Seattle Public
Utilities&Neighborhoods or successor committees.
4. Schedule/Procedures. The Board shall adopt a regular meeting schedule and notify all
Wholesale Customers of the schedule. The Operating Board may adopt it own internal
procedures. The latest edition of Roberts Rules of Order shall, in the absence of agreement by
the Operating Board on procedural matters, govern all meetings and votes of the Operating
Board.
5. Reporting. The Board will provide reports to the Wholesale Customers and to the Seattle
City Council Committee on Seattle Public Utilities&Neighborhoods, or successor City Council
committee, on its decisions and recommendations in a timely manner.
6. Responsibilities and Authority of the Board. Where no clear responsibility or authority on an
issue is established in this contract the responsibility and authority shall rest with the Seattle City
Council.
7. Expenses. The Board shall be authorized to incur reasonable expenses which will be
allocated by the Board to either or both of the New Transmission or Supply Cost Pools.
PARTIAL REQUIREMENTS CONTRACT
CITY OF RENTON Page 69
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EXHIBIT VI
Calculation of ERUs as a Part of Facilities Charges
The ERU Fee is:
• the flat debt service payment required to finance the facility providing the ERU over
the lesser of(i) the facility life or (ii) the period over which new demand will fully
utilize the facility's supply
- divided by -
• the number of new ERUs of demand expected in each year.
Seattle's Average Cost of Debt shall be used as the interest rate in this calculation. In the
event that several New Supply Resources are added simultaneously, the facilities may be
considered together as providing a total new supply capacity for a total construction cost.
Example: A new facility costing $100 million is built with a capacity of 100,000 ERUs.
Growth of 5,000 ERUs per year is expected over the next 20 years, so the facility is
projected to be supplying its full capacity in 20 years. Were this facility financed over 20
years at 6% interest, the flat annual debt service payment would be $8.7 million. Each
ERU would cost 0.02%of this annual amount, or about $1,740.
At the time a New Supply Resources is added, the ERU price for this supply shall be calculated.
This ERU price shall then be averaged with the then-current ERU Fee. This average shall be
weighted by the number of unpurchased ERUs available at the then-current ERU fee and the
number of new ERUs being added at the new ERU price. This weighted average shall be the
new ERU Fee, and the number of ERUs available at the fee shall be the sum of the unsold ERUs
at the previous fee and the ERU capacity of the new facility.
Example: 10 years ago, a $100 million facility was constructed that can supply 100,000
ERUs. Growth and demand projections have proven accurate, and now 50,000 ERUs
have been purchased, each for $1,740. The facility also has an additional 50,000 ERUs
still available at the same price. This year, we construct a facility worth $70 million, with
a capacity of 40,000 ERUs. Based on demand projections, this facility (on its own)
would be fully utilized in 10 years, and its ERU price is therefore $2,375. The average
price of any of the 90,000 available ERUs is therefore $2,022.
PARTIAL REQUIREMENTS CONTRACT
CITY OF RENTON Page 73
EXHIBIT VI
ERUs by Connection Size
Connection Size Number of ERUs
3/4" and smaller 1
1" 2
1 1/2" 5
2" 8
3" 22
497 31
6" 66
8" 112
10" 169
12'° 238
ERU Proving Methodology
The size of the water service connection used to serve an establishment depends upon both the
total demand of that establishment and the instantaneous flow required by that establishment.
For this reason, connection size is only a general indicator of the annual demand placed on water
supplies by the establishment.
PARTIAL REQUIREMENTS CONTRACT
CITY OF RENTON Page 74
EXHIBIT VII
Seattle Supply Facilities
1. Cedar Source
• All roads, buildings, structures, water supply facilities, recreational and educational
facilities, and fisheries enhancement and mitigation facilities located within or close to
the Cedar River Hydrographic Watershed boundary as defined by Seattle land ownership,
including the land itself, and any capitalized studies related to the above. Excepted are
facilities solely owned by Seattle City Light for the purpose of power generation.
Facilities shared by Seattle City Light and Seattle Public Utilities shall be part of the
Seattle Regional Water Supply System only to the extent of SPU share or responsibility.
• All facilities located within the Lake Youngs Reservation as defined by Seattle ownership
of the land except for conveyance facilities used to transport finished water during non-
emergency operation
• All facilities located within the Lake Youngs Aqueduct, the Landsburg Tunnel, and the
Lake Youngs Supply Lines right-of-way, including the right-of-way itself
• Existing Morse Lake Floating Pump Stations
2. Tolt Source
• All roads, buildings, structures, water supply facilities, recreational and educational
facilities, and fisheries enhancement and mitigation facilities located within or close to
the South Fork Tolt River Hydrographic Watershed boundary as defined by Seattle land
ownership, including the land itself, and any capitalized studies related to the above.
Excepted are facilities solely owned by Seattle City Light for the purpose of power
generation. Facilities shared by Seattle City Light and Seattle Public Utilities shall be
part of the Seattle Regional Water Supply System only to the extent of SPU share or
responsibility.
• Tolt Treatment Facility
3. Seattle Wellfields
• Riverton Wells, including all pumping and treatment equipment, original yard piping, to
the connection to CRPL4, and the low flow piping to Riverton Reservoir
• Boulevard Well, including all pumping and treatment equipment, and all piping up to the
connection to CRPL4
4. Other
• One Percent Conservation Program through December 31, 2001
• GIS Projects related to facilities identified herein as part of the Seattle Regional Water
Supply System
PARTIAL REQUIREMENTS CONTRACT
CITY OF RENTON Page 76
EXHIBIT VIII
Seattle Transmission Facilities
1. Pipelines
• Tolt Pipeline No. 1 from the Tolt Regulating Basin to Lake Forest Reservoir, including
any transfer and ancillary small diameter parallel pipes
• Tolt Pipeline No. 2 (where constructed), including any transfer and ancillary small
diameter parallel pipes
• Tolt Tieline
• Tolt Eastside Supply Line (from TESS Junction to the intersection of SE 16th ST and
145th Place SE)
• Tolt Eastside Line Extension (from the intersection of SE 161h ST and 145th Place SE to
Eastside Reservoir)
• The 540 head Pipeline from Maple Leaf Reservoir to Lake Forest Reservoir
• Lake Youngs Bypass No. 4 from the outlet of each of the Cedar Treatment Facility
clearwells to Control Works
• Lake Youngs Bypass No. 5 from the outlet of each of the Cedar Treatment Facility
clearwells to the Lake Youngs Tunnel
• The Lake Youngs Tunnel (from the original lake outlet to Control Works)
• The Maple Leaf Pipeline (from the intersection of 18th Avenue E. and E. Prospect Street
to Maple Leaf Reservoir)
• Cedar River Pipeline No. 1 from Control Works to Volunteer Reservoir
• Cedar River Pipeline No. 2 from Control Works to Lincoln Reservoir
• Cedar River Pipeline No. 3 from Control Works to the intersection of 18th Avenue E. and
E. Prospect Street
• 30"intertie between Cedar River Pipelines 2 and 3 in east Olive Street
• Cedar River Pipeline No. 4 from Control Works to the West Seattle Pipeline
• Cedar Eastside Supply Line (from the Cedar Wye to the intersection of SE 16th St and
145th Place SE)
• West Seattle Pipeline from Augusta Gatehouse to Cedar River Pipeline 4
• The 8th Avenue S. Pipeline between S. 146th Street and S. 160th Street
• The Bow Lake Pipeline (between 8th Avenue S. and CRPL 4, and as relocated outside
runways at Seatac Airport)
• The Burien Feeder(in S. 146th Street between 8th Avenue S. and CRPL 4)
• The Fairwood Line (between Fairwood Pump Station and Soos Reservoirs)
• The 24-inch discharge pipeline of Lake Youngs Pump Station up to Soos Reservoirs
• The 12-inch discharge pipeline of Lake Youngs Pump Station up to Soos Reservoirs
• The 630 head pipeline between Lake Youngs Pump Station and the Cedar River WSD
pump station at the eastern boundary of the Lake Youngs Reservation
PARTIAL REQUIREMENTS CONTRACT
CITY OF RENTON Page 76
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2. Reservoirs, Tanks, and Standpipes, including overflow pipes, all valves, appurtenances, and
disinfection facility located on the premises of each storage facility, unless otherwise noted
• Lake Forest Reservoir
• Eastside Reservoir
• Riverton Reservoir
• Maple Leaf Reservoir (excluding Roosevelt Way Pump Station and its suction and
discharge piping, Maple Leaf Tank and 520 zone piping, except where solely serving the
disinfection facility)
• Soos Reservoirs
3. Pump Stations, Major Valve Structures, and other Facilities
• Eastgate Pump Station
• TESS Junction Pump Station
• Lake Hills Pump Station
• Maplewood Pump Station
• Maple Leaf Pump Station
• Bothell Way Pump Station
• Fairwood Pump Station
• Lake Youngs Pump Station
• The Control Works
• Augusta Gatehouse
4. Service Connections to Wholesale Customers installed before January 1, 2002 are part of the
Seattle Transmission Facilities. Service Connections to Wholesale Customers installed after
December 31, 2001 shall not be part of the Seattle Transmission Facilities.
The Seattle Transmission Facilities include all necessary and convenient appurtenances,
including, but not limited to, rights of way, line valves, system meters, and remote automation
devices.
PARTIAL REQUIREMENTS CONTRACT
CITY OF RENTON Page 77
EXHIBIT IX(as amended)
Cost Centers Used for Operations Cost Indices
The following costs centers or successor cost centers, as reflected in the amended Exhibit IX,
and as amended further from time to time, that capture the direct costs of operation of Existing
Supply Facilities, Seattle Transmission Facilities and the Regional Water Conservation Program
shall be used as the indices for operations cost in the Existing Supply Cost Pool, Existing
Transmission Cost Pool and for the Regional Water Conservation Program in the New Supply
Cost Pool.
Supply
Program Project Project Name Activity
Communications N1203 Communications Activity Group N120304 Purveyor Relations
Audit&Accounting N3303 Customer Audit N330303 Purveyor Audit
Watershed Management N5401 Program Management N540194 Department Support
Watershed Management N5401 Program Management N540195 General Expense
Watershed Management N5401 Program Management N540196 General Management
Watershed Management N5401 Program Management N540197 Training
Watershed Management N5401 Program Management N540198 Safety
Watershed Management N5401 Program Management N540199 Personnel
Watershed Management N5401 Program Management N540289 Capital Purchase
Watershed Management N5403 Support Services N540301 Modified Duty
Watershed Management N5403 Support Services N540302 Procuring/Paying/Receiving
Watershed Management N5403 Support Services N540303 Vehicle Equipment Downtime
Watershed Management N5404 Watershed Protection N540401 Hydrological Data Collection
Watershed Management N5404 Watershed Protection N540402 Fire Protection
Watershed Management N5404 Watershed Protection N540403 Inspection
Watershed Management N5404 Watershed Protection N540404 Boundaries
Watershed Management N5405 Facility Management N540501 WS Grounds
Watershed Management N5405 Facility Management N540502 WS Buildings
Watershed Management N5405 Facility Management N540503 WS Facilities&Roads
Watershed Management N5406 Watershed Road Maintenance N540601 Grade/Gravel/Ditching
Watershed Management N5406 Watershed Road Maintenance N540602 Bridges/Streams Culvert
Watershed Management N5406 Watershed Road Maintenance N540603 Roads/Row/Vegetation Cutting
Watershed Management N5406 Watershed Road Maintenance N540604 Tolt Roads&Streams
Watershed Management N5407 Watershed Operations Support N540701 Veh/Equipment Management
Watershed Management N5407 Watershed Operations Support N540702 Veh/Equip/Tool Repair
Watershed Management N5408 Water Quality&Hydrology N540801 Water Quality Monitoring
Watershed Management N5408 Water Quality&Hydrology N540802 Hydrological Monitoring
Watershed Management N5409 Public/Cultural Programs N540901 Recreation Planning
Watershed Management N5409 Public/Cultural Programs N540902 Management&Research
Watershed Management N5409 Public/Cultural Programs N540903 Watershed Education
Watershed Management N5409 Public/Cultural Programs N540904 Watershed Public Information
Watershed Management N5410 Wildlife&Fisheries Programs N541001 Program Planning&Evaluation
Watershed Management N5410 Wildlife&Fisheries Programs N541002 Interagency/Public Involvement
Watershed Management N5410 Wildlife&Fisheries Programs N541003 Ecological Monitoring&Research
Watershed Management N5410 Wildlife&Fisheries Programs N541004 Habitat&Species Inventory
Watershed Management N5410 Wildlife&Fisheries Programs N541005 Habitat Enhancement/Restoration
Watershed Management N5411 Resource Information Mgmt N541101 Program Plan/Evaluation
Watershed Management N5411 Resource Information Mgmt N541102 Information Maintenance
PARTIAL REQUIREMENTS CONTRACT
CITY OF RENTON Page 78
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Watershed Management N5411 Resource Information Mgmt N541103 Information Services
Program Project Project Name Activity
Watershed Management N5412 Special Projects N541202 Silviculture
Watershed Management N5412 Special Projects N541205 Land Exchanges/Acquisitions
Watershed Management N5415 Cedar HCP N541501 ASSESS OF EXPAND FOREST STAND
Watershed Management N5415 Cedar HCP N541502 ASSESS EXPAND FOREST ATTRIBUTE
Watershed Management N5415 Cedar HCP N541503 AUGMENT FOREST HABITAT INV
Watershed Management N5415 Cedar HCP N541504 LONG-TERM FOREST HABITAT
Watershed Management N5415 Cedar HCP N541505 OLD-GROWTH CLASSIFICATION
Watershed Management N5415 Cedar HCP N541506 RIPARIAN RESTOR PROJECT MONIT
Watershed Management N5415 Cedar HCP N541507 UPOLAND FOREST RESTOR PROJ MONT
Watershed Management N5415 Cedar HCP N541515 GIS DATA COMPATIBILITY STUDY
Watershed Management N5415 Cedar HCP N541516 FOREST HABITAT MODELING
Watershed Management N5415 Cedar HCP N541517 SPECIE HABITAT RELATION MODEL
Watershed Management N5416 Cedar HCP N541601 CRHCP GIS SUPPORT
Watershed Management N5416 Cedar HCP N541603 CRHCP TECHNICAL SUPPORT
Watershed Management N5417 Cedar HCP N541701 ROAD MAINTENANCE
Watershed Management N5418 Cedar HCP N541801 EXPERIMENTAL STREAM MONITORING
Watershed Management, N5418 Cedar HCP N541802 LONG-TERM STREAM MONITORING
Watershed Management N5418 Cedar HCP N541803 AQUATIC RESTORATION MONITORING
Watershed Management N5418 Cedar HCP N541804 BULL TROUT SURVEYS(ADULT)
Watershed Management N5418 Cedar HCP N541805 BULL TROUT SPAWNING SURVEY
Watershed Management N5418 Cedar HCP N541806 BULL TROUT FRY/JUVENILE SURVEY
Watershed Management N5418 Cedar HCP Riparian Zone Studies
Watershed Management N5418 Cedar HCP N541809 BULL TROUT STREAM DISTRIBUTION
Watershed Management N5418 Cedar HCP N541810 BULL TROUT REDD INUNDATION STU
Watershed Management N5418 Cedar HCP N541811 COMMON LOON MONITORING
Water Quality&Supply N5503 Water System Operations N550301 Water Management
Water Quality&Supply N5503 Water System Operations N550302 Water System Control
Water Quality&Supply N5503 Water System Operations N550303 Anadromous Fishery Mgmt
Water Quality&Supply N5503 Water System Operations N550304 SCADA Management
Water Quality&Supply N5503 Water System Operations N550305 Highline Well Field
Water Quality&Supply N5503 Water System Operations N550306 Morse Lake PS
Water Quality&Supply N5503 Water System Operations N550307-SAFETY PROCESS MGMT COMPLIANCE
Water Quality&Supply N5503 Water System Operations N550308-EPA RISK MGMT COMPLIANCE
Water Quality&Supply N5504 Water System Analysis N550401 Eng Analysis/Modeling
Water Quality&Supply N5504 Water System Analysis N550402 Water Rights Mgmt
Water Quality&Supply N5504 Water System Analysis N550403 DEMAND METERING
Water Quality&Supply N5505 Surface Water Trtmnt Rule N550501 Monitoring,Reporting&Admin
Water Quality&Supply N5505 Surface Water Trtmnt Rule N550502 Cholrination Facilities O&M
Water Quality&Supply N5505 Surface Water Trtmnt Rule N550503 Watershed Management
Water Quality&Supply N5506 Total Coliform Rule Compl. N550601 Monitoring,Reporting&Admin
Water Quality&Supply N5508 Lead&Copper Rule Compl. N550801 Monitoring,Reporting&Admin
Water Quality&Supply N5508 Lead&Copper Rule Compl. N550802 Corrosion Trtmnt Facil O&M
Water Quality&Supply N5509 Fluoridation Program N550901 Fluoridation Program O&M
Water Quality&Supply N5510 Other Reg Comp/Monitoring N551001 Otr Reg/Operational Analysis
Water Quality&Supply N5510 Other Reg Comp/Monitoring N551002 Disinfection By-Product Rule
Water Quality&Supply N5510 Other Reg Comp/Monitoring N551003 Limnology
Water Quality&Supply N5510 Other Reg Comp/Monitoring N551005 WQ Lab
Water Quality&Supply N5510 Other Reg Comp/Monitoring N551006 DW Reg Dev&App Research
Water Quality&Supply N5510 Other Reg Comp/Monitoring N551007 Public Information/Notification
Water Quality&Supply N5511 Special Projects N551104 LIMS&QA/QC
Program Project Project Name Activi
PARTIAL REQUIREMENTS CONTRACT
CITY OF RENTON Page 79
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Water Quality&Supply N5512 Cedar HCP N551201 INTERIM CHINOOK COHO
Water Quality&Supply N5513 Cedar HCP N551301 HCP STREAMFLOW GAUGING
Water Quality&Supply N5513 Cedar HCP N551302 SWITCHING CRITERIA STUDY
Water Quality&Supply N5513 Cedar HCP N551303 STEELHEAD REDD MONITORING
Water Quality&Supply N5513 Cedar HCP N551304 CHINOOK STUDIES
Water Quality&Supply N5513 Cedar HCP Salmonid Studies
Water Quality&Supply N5514 WQ Monitoring N551403 DRINKING WATER QUALITY MONITOR
Water Quality&Supply N5515 HCP Fisheries N551501 FRY CONDITION AT RELEASE
Water Quality&Supply N5515 HCP Fisheries N551502 FRY MARKING&EVALUATION
Water Quality&Supply N5515 HCP Fisheries N551503 FRY TRAPPING&COUNTING
Water Quality&Supply N5515 HCP Fisheries N551504 FISH HEALTH
Water Quality&Supply N5515 HCP Fisheries N551505 SHORT-TERM FRY REARING
Water Quality&Supply N5515 HCP Fisheries N551506 LAKE WASHINGTON PLANKTON STUDY
Water Quality&Supply N5515 HCP Fisheries N551508 ADULT SURVIVAL DISTRIBUTION
Water Quality&Supply N5515 HCP Fisheries N551509 PHENOTYPIC&GENETIC STUDY
Water Quality&Supply N5516 Tolt DBO N551601-CONTRACTOR PAYMENTS
Water Quality&Supply N5516 Tolt DBO N551603-MANAGEMENT COSTS
Resource Planning N5609 Water Resource&Habitat Issues N560903-ESA
PARTIAL REQUIREMENTS CONTRACT
CITY OF RENTON Page 80
NAW, N"001
Transmission
Program Project Project Name Activity
Water Operation N6540 WT-Headwork/Storage N654001 Program Maintenance
Water Operation N6540 WT-Headwork/Storage N654002 Event Driven Repairs
Water Operation N6541 WT-Transmission Pipeline Maint N654101 Program Maintenance
Water Operation N6541 WT-Transmission Pipeline Maint N654102 Event Driven Repairs
Water Operation N6542 WT-Value Op/Maint-Water Tran N654201 Program Maintenance
Water Operation N6542 WT-Value Op/Maint-Water Tran N654202 Event Driven Repairs
Water Operation N6543 WT-Grounds/Roads/ROW N654301 Grade/gravel roads-P
Water Operation N6543 WT-Grounds/Roads/ROW N654302 Grade/gravel roads-E
Water Operation N6543 WT-Grounds/Roads/ROW N654303 Bridges/culverts-P
Water Operation N6543 WT-Grounds/Roads/ROW N654304 Bridges/culverts-E
Water Operation N6543 WT-Grounds/Roads/ROW N654305 Fences/gates-P
Water Operation N6543 WT-Grounds/Roads/ROW N654306 Fences/gates-E
Water Operation N6543 WT-Grounds/Roads/ROW N654307 Mow ROW-P
Water Operation N6543 WT-Grounds/Roads/ROW N654308 Mow ROW-E
Water Operation N6543 WT-Grounds/Roads/ROW N654309 Mow Other
Water Operation N6544 WT-Facility Maintenance N654401 Program Maintenance
Water Operation N6544 WT-Facility Maintenance N654402 Event Driven Repairs
Water Operation N6545 WT-Castings N654501 Casting Adjustments
Water Operation N6546 WT-Customer Services N654601 Communications/Dispatch
Water Operation N6546 WT-Customer Services N654602 Locating/Marking
Water Operation N6547 WT-Damage by Others N654701 PAL/ROW/Facility
Water Operation N6548 WT-Transmission Shops N654801 Shops/Fabrication
Water Operation N6549 WT-General Expenses N654905 Tools/small equipment
Water Operation N6549 WT-General Expenses N654906 Standy
Water Operation N6549 WT-General Expenses N654907 Truck Inventory
Water Operation N6549 WT-General Expenses N654908 Downtime-Job Related
Water Operation N6549 WT-General Expenses N654909-DISASTER-EMERG RESPONSE
Reeional Water Conservation Program
Program Project Project Name Activity
Community Services N5303 Resource Conservation N530301 1%Conservation
PARTIAL REQUIREMENTS CONTRACT
CITY OF RENTON Page 81
Cost Centers Used for Operations Cost Indices
amended 12/31/2009
Existing Supply
Program Project Project Name Activity Description
SPU General Expense N0108 Emergency Response NN90036 4/23/09 Tolt Tnnt Plant Emrgcy
SPU General Expense N0503 Water Fund Contracts N050302 Tolt DBO Contract Payments
SPU General Expense N0503 Water Fund Contracts N050303 Cedar DBO Contract Payments
Branch Administration N3106 Water Wholesale Contracts N310601 Wholesale Water Contracts Mgmt
Customer Billing Services N3303 Customer Audit N330303 Purveyor
Cedar&Tolt Watershed Srvcs N5401 Program Management N540198 Safety
Drainage&Wastewater N6210 Landsburg Mgmt&HCP Support N621001 Oprtn of Passage Facility-HCP
Drainage&Wastewater N6210 Landsburg Mgmt&HCP Support N621002 Interim Hatchery Ops-HCP
Water Operation N6510 Misc Water Operations N651004 Alternative Duty
Water Operation N6540 Headwork/Storage N654003 (Cedar)Chlorination Facility O&M
Water Operation N6540 Headwork/Storage N654004 Fluoridation Program O&M
Water Operation N6540 Headwork/Storage N654005 RMP/PSM Compliance
Water Operation N6573 In-Town Reservoir Treatment N657304 Highline Well F(Location Code)
Asset Data Systems N6903 SCADA Development&Support N690301 SCADA SYSTEM PLANNING
Asset Data Systems N6903 SCADA Development&Support N690302 SCADA INFRASTRUCTURE O&M
Asset Data Systems N6903 SCADA Development&Support N690303 DAM SAFETY SCADA
Surface Water LOB N7311 Landsburg Mtgtn&HCP Support N731101 Fry Condition @ Release-HCP
Surface Water LOB N7311 Landsburg Mtgtn&HCP Support N731102 Fry Marking&Evaluation-HCP
Surface Water LOB N7311 Landsburg Mtgtn&HCP Support N731103 Fry Tapping&Counting-HCP
Surface Water LOB N7311 Landsburg Mtgtn&HCP Support N731104 Fish Health—HCP
Surface Water LOB N7311 Landsburg Mtgtn&HCP Support N731105 Adult Survival Distribution-HCP
Surface Water LOB N7311 Landsburg Mtgtn&HCP Support N731106 Pheno&Gen Study-HCP
Surface Water LOB N7311 Landsburg Mtgtn&HCP Support N731107 Zoopinktn Stds(Spmg)-HCP
Surface Water LOB N7311 Landsburg Mtgtn&HCP Support N731108 HCP Support
Surface Water LOB N7311 Landsburg Mtgtn&HCP Support N731109 Operation of Passage Facility-HCP
Surface Water LOB N7311 Landsburg Mtgtn&HCP Support N731110 Landsburg Fish Ladder-HCP
Surface Water LOB N7311 Landsburg Mtgtn&HCP Support N731111 DW Quality Monitoring-HCP
Surface Water LOB N7311 Landsburg Mtgtn&HCP Support N731112 Interim Hatchery Ops-HCP
Surface Water LOB N7311 Landsburg Mtgtn&HCP Support N731113 Adaptive Mgmt-Sockeye Hatch
Drinking Water LOB N7503 Water LOB Planning&Perf N750303 Network Hydraulic Model Dev
Drinking Water LOB N7504 Water Resource Business N750403 Hydrology Model Dev&Maintenance
Drinking Water LOB N7504 Water Resource Business N750404 Water Resource Operation Mgmt
Drinking Water LOB N7504 Water Resource Business N750406 Morse Lake Pump Plant
Drinking Water LOB N7504 Water Resource Business N750407 Anadromous Fishery Mgmt
Drinking Water LOB N7504 Water Resource Business NN90053 Tolt Spillway Leak Repair
Drinking Water LOB N7505 HCP Instream Flow Monitor&Res N750501 Existing Stream Gage At Cedar F
Drinking Water LOB N7505 HCP Instream Flow Monitor&Res N750502 Exist.Stream Gage Below Landsburg
Drinking Water LOB N7505 HCP Instream Flow Monitor&Res N750503 New Stream Gag Above Powerhouse
Drinking Water LOB N7505 HCP Instream Flow Monitor&Res N750504 New Gage At Renton
Drinking Water LOB N7505 HCP Instream Flow Monitor&Res N750505 Temporary Gages In Lower River
Drinking Water LOB N7505 HCP Instream Flow Monitor&Res N750506 Accretion Flow Study
Drinking Water LOB N7505 HCP Instream Flow Monitor&Res N750507 Switching Criteria Study
Drinking Water LOB N7505 HCP Instream Flow Monitor&Res N750509 Instream Flow Commission
Drinking Water LOB N7505 HCP Instream Flow Monitor&Res N750511 Dead Strg Bull Trout Dlta Mdln
Drinking Water LOB N7505 HCP Instream Flow Monitor&Res N750512 Steelhead Redd Monitoring
Drinking Water LOB N7507 Water Quality&Treatment Business Area N750705 Tolt Management Costs
Drinking Water LOB N7507 Water Quality&Treatment Business Area N750707 Cedar DBO Management Costs
Drinking Water LOB N7509 Operations Plan&System Control N750802 Water System Monitor&Control
Drinking Water LOB N7511 Landsburg Mitigation.&HCP Support N751101 Fry Condition @ Release-HCP
PARTIAL REQUIREMENTS CONTRACT
CITY OF RENTON Page 82
'Now *NOV
Drinking Water LOB N7511 Landsburg Mitigation.&HCP Support N751102 Fry Marking&Evaluation-HCP
Drinking Water LOB N7511 Landsburg Mitigation.&HCP Support N751103 Fry Trapping&Counting-HCP
Drinking Water LOB N7511 Landsburg Mitigation.&HCP Support N751104 Fish Health—HCP
Drinking Water LOB N7511 Landsburg Mitigation.&HCP Support N751105 Adult Survival Distribution-HCP
Drinking Water LOB N7511 Landsburg Mitigation.&HCP Support N751106 Pheno&Gen Study—HCP
Drinking Water LOB N7511 Landsburg Mitigation.&HCP Support N751107 Zoopinktn Stds(Spmg)-HCP
Drinking Water LOB N7511 Landsburg Mitigation.&HCP Support N751108 HCP Support
Drinking Water LOB N7511 Landsburg Mitigation.&HCP Support N751109 Operation of Passage Facility-HCP
Drinking Water LOB N7511 Landsburg Mitigation.&HCP Support N751110 Landsburg Fish Ladder-HCP
Drinking Water LOB N7511 Landsburg Mitigation.&HCP Support N751112 Interim Hatchery Ops-HCP
Tech systems N7705 SCADA Development&Support N770501 SCADA System Planning
Tech systems N7705 SCADA Development&Support N770502 SCADA Infrastructure O&M
Watershed Management N7801 Program Management N780196 General Management
Watershed Management N7803 Support Services N780301 Procuring/Paying/Receiving
Watershed Management N7804 Watershed Protection N780401 Hydrological Data Collection
Watershed Management N7804 Watershed Protection N780402 Fire Protection
Watershed Management N7804 Watershed Protection N780403 Inspection
Watershed Management N7804 Watershed Protection N780404 Boundaries
Watershed Management N7804 Watershed Protection N780405 Facilities Security
Watershed Management N7805 Facility Management N780501 WS Grounds
Watershed Management N7805 Facility Management N780502 WS Buildings
Watershed Management N7805 Facility Management N780503 WS Edo Facilities Mgmt
Watershed Management N7806 Watershed Road Maintenance N780601 Grade/Gravel/Drain
Watershed Management N7806 Watershed Road Maintenance N780602 Bridges/Streams Culvert
Watershed Management N7806 Watershed Road Maintenance N780603 Roads/ROW/Vegetation Cutting
Watershed Management N7806 Watershed Road Maintenance N780604 Tolt Roads&Streams
Watershed Management N7807 Watershed Operations Support N780701 Vehicle/Equipment Management
Watershed Management N7807 Watershed Operations Support N780702 Vehicle/Equip/Tool Repair
Watershed Management N7808 Water Quality&Hydrology N780801 Hydrological Monitoring
Watershed Management N7809 Public/Cultural Programs N780901 Recreation Planning
Watershed Management N7809 Public/Cultural Programs N780902 CR Management&Research
Watershed Management N7809 Public/Cultural Programs N780903 Watershed Education
Watershed Management N7809 Public/Cultural Programs N780904 Watershed Public Information
Watershed Management N7809 Public/Cultural Programs N780905 Educational Center Operations
Watershed Management N7809 Public/Cultural Programs N780906 Cedar River Watershed Institute
Watershed Management N7809 Public/Cultural Programs N780907 Tolt WS MP Impl Cultural Rest
Watershed Management N7810 Wildlife&Fisheries Programs N781001 Program Planning&Evaluation
Watershed Management N7810 Wildlife&Fisheries Programs N781002 Interagency/Public Involvement
Watershed Management N7810 Wildlife&Fisheries Programs N781003 Ecological Monitoring&Research
Watershed Management N7810 Wildlife&Fisheries Programs N781004 Habitat&Species Inventory
Watershed Management N7810 Wildlife&Fisheries Programs N781005 Habitat Enhancement/Restoration
Watershed Management N7811 Resource Information Mgmt N781101 Information Services
Watershed Management N7812 Special Projects N781201 Silviculture
Watershed Management N7813 CRHCP WS Terestrl Mnitr/Resrch N781301 Assess Of Expand Forest Stand
Watershed Management N7813 CRHCP WS Terestrl Mnitr/Resrch N781302 Assess Expand Forest Attribute
Watershed Management N7813 CRHCP WS Terestrl Mnitr/Resrch N781303 Long-Term Forest Habitat Inventory
Watershed Management N7813 CRHCP WS Terestrl Mnitr/Resrch N781304 Old-Growth Classification
Watershed Management N7813 CRHCP WS Terestrl Mnitr/Resrch N781305 Riparian Restoration Project Monitoring
Watershed Management N7813 CRHCP WS Terestrl Mnitr/Resrch N781306 Upland Forest Restoration Project Mont
Watershed Management N7813 CRHCP WS Terestrl Mnitr/Resrch N781308 Experimental Murrelet Habitat
Watershed Management N7813 CRHCP WS Terestrl Mnitr/Resrch N781309 Spotted Owl Baseline Survey
Watershed Management N7813 CRHCP WS Terestrl.Mnitr/Resrch N781311 OPTION SPECIES/HABITAT SURVEYS
Watershed Management N7813 CRHCP WS Terestrl Mnitr/Resrch N781312 GIS Data Compatibility Study
Watershed Management N7813 CRHCP WS Terestrl Mnitr/Resrch N781313 Species Habitat Relation Modeling
Watershed Management N7814 CRHCP Program Support N781401 CRHCP Technical Support
Watershed Management N7814 CRHCP Program Support N781402 BPA Mitigation Program-Watershed
Watershed Management N7815 CRHCP Watershed Road Managment N781501 Road Maintenance
Watershed Management N7816 CRHCP WS Aquatic Monitr/Resrch N781601 Long-Term Stream Monitoring
PARTIAL REQUIREMENTS CONTRACT
CITY OF RENTON Page 83
taw
Watershed Management N7816 CRHCP WS Aquatic Monitr/Resrch N781602 Aquatic Restoration Monitoring
Watershed Management N7816 CRHCP WS Aquatic Monitr/Resrch N781604 Bull Trout Spawning Survey
Watershed Management N7816 CRHCP WS Aquatic Monitr/Resrch N781605 Bull Trout Fry/Juvenile Survey
Watershed Management N7816 CRHCP WS Aquatic Monitr/Resrch N781606 Bull Trout Stream Distribution
Watershed Management N7816 CRHCP WS Aquatic Monitr/Resrch N781607 Common Loon Monitoring
Watershed Management N7817 Watershed Svc MIT Implement N781701 Watershed Tribal Relations Coordination
Watershed Management N7818 Tolt WS MP Impl Habitat Rest N781801 Tolt WS MP Impl Habitat Rest
Laboratory Services N7903 WQ Regulatory Compliance N790301 SWTR Monitoring,Reporting&Adm.
Laboratory Services N7903 WQ Regulatory Compliance N790302 TCR Monitoring,Reporting&Adm
Laboratory Services N7903 WQ Regulatory Compliance N790303 LCR Monitoring,Reporting&Adm
Laboratory Services N7903 WQ Regulatory Compliance N790304 DBP Monitoring,Reporting&Adm
Laboratory Services N7903 WQ Regulatory Compliance N790305 Public Information/Notification
Laboratory Services N7903 WQ Regulatory Compliance N790306 Regulatory Support
Laboratory Services N7904 WQ Monitoring N790402 Operations Support
Laboratory Services N7904 WQ Monitoring N790403 Limnology
Laboratory Services N7905 Customer Support N790502 Applied Research
Laboratory Services N7906 Lab Systems N790601 WQ Lab Facility O&M
Laboratory Services N7906 Lab Systems N790602 Lab System Administration&Support
Laboratory Services N7906 Lab Systems N790603 QA Admin
Pre-Capital N5001 E-Water Fund E100078 Cedar Falls Railroad Hazard
Pre-Capital N5001 E-Water Fund E101008 Rock Creek Fishway
Pre-Capital N5001 E-Water Fund E105018 BPA-Rd Improve
Pre-Capital N5001 E-Water Fund E105019 BPA Roads Other Decommission
Pre-Capital N5001 E-Water Fund E105035 BPA Forest ROW Plant Removal
Pre-Capital N5001 E-Water Fund E105036 BPA Forest ROW Wood Rplment
Pre-Capital N5001 E-Water Fund E105038 BPA Old Forest Restore
Pre-Capital N5001 E-Water Fund E107004 Watershed Emergency/Opportunity
Pre-Capital N5001 E-Water Fund E107015 Watershed Vegetation Management
Pre-Capital N5001 E-Water Fund E107016 Muckleshoot Agreement Implementation Plan
Pre-Capital N5001 E-Water Fund E107019 Restoration Thinning Slash Tree
Pre-Capital N5001 E-Water Fund E109001 BPA Cedar Invasive Vegetation Mgmt
Pre-Capital N5001 E-Water Fund E109002 BPA Restoration Slash Treatment
Pre-Capital N5001 E-Water Fund E109003 BPA Information Mgmt Systems
Existing Transmission
SECTION XI. PR Project Project Name Activity
OGRAM
Water Operation N6540 WT-Headwork/Storage N654001 Program Maintenance
Water Operation N6540 WT-Headwork/Storage N654002 Event Driven Repairs
Water Operation N6541 WT-Transmission Pipeline Mai N654101 Program Maintenance
Water Operation N6541 WT-Transmission Pipeline Mai N654102 Event Driven Repairs
Water Operation N6541 WT-Transmission Pipeline Mai NN90043 CRPL4 at Airport Expressway
Water Operation N6542 WT-Valve Op/Maint-Water Tran N654201 Program Maintenance
Water Operation N6542 WT-Valve Op/Maint-Water Tran N654202 Event Driven Repairs
Water Operation N6543 WT-Grounds/Roads/Row N654301 Grade/Gravel Roads-P
Water Operation N6543 WT-Grounds/Roads/Row N654302 Grade/Gravel Roads-E
Water Operation N6543 WT-Grounds/Roads/Row N654303 Bridges/Culverts—P
Water Operation N6543 WT-Grounds/Roads/Row N654304 Bridges/Culverts—E
Water Operation N6543 WT-Grounds/Roads/Row N654305 Fences/Gates—P
Water Operation N6543 WT-Grounds/Roads/Row N654306 Fences/Gates—E
Water Operation N6543 WT-Grounds/Roads/Row N654307 Mow Row—P
Water Operation N6543 WT-Grounds/Roads/Row N654308 Mow Row—E
Water Operation N6543 WT-Grounds/Roads/Row N654309 Mow Other
Water Operation N6543 WT-Grounds/Roads/Row NN90042 Derby Creek and Tolt ROW
Water Operation N6544 WT-Facility Maintenance N654401 Program Maintenance
Water Operation N6544 WT-Facility Maintenance N654402 Event Driven Repairs
Water Operation N6545 WT-Castings N654501 Casting Adjustments
Water Operation N6546 WT-Customer Services N654601 Communications/Dispatch
PARTIAL REQUIREMENTS CONTRACT
CITY OF RENTON Page 84
Water Operation N6546 WT-Customer Services N654602 Locating/Marking
Water Operation N6547 WT-Damage By Others N654701 P/L/Row/Facility
Water Operation N6548 WT-Transmission Shops N654801 Shops/Fabrication
Water Operation N6549 WT-General Expenses N654905 Tools/Small Equipment
Water Operation N6549 WT-General Expenses N654906 Standby
Water Operation N6549 WT-General Expenses N654907 Truck Inventory
Water Operation N6549 WT-General Expenses N654908 Downtime-Job Related
Water Operation N6549 WT-General Expenses N654909 Disaster-Emergency Response
New Supply
Program Project Project Name Activity
Customer Service N3904 Resource Conservation N390401 Water Conservation
Customer Service N3904 Resource Conservation N390412 Water Conservation-Landscape
New Transmission
Program Project Project Name Activity
Branch Administration N3106 Water Wholesale Contracts N310602 Operating Board Website
PARTIAL REQUIREMENTS CONTRACT
CITY OF RENTON Page 85
EXHIBIT X
Water Utility Service Area
SEE NEXT PAGE
PARTIAL REQUIREMENTS CONTRACT
CITY OF RENTON Page 86
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EXHIBIT XI
List of Renton Sub-region Transmission Facilities
The 12-inch pipelines, from the outlets off the CRPLs 1, 2, and 3 up to the south wall of the SPU
meter vaults in Logan Avenue South.
PARTIAL REQUIREMENTS CONTRACT
CITY OF RENTON Page 87
EXHIBIT XII
Allocating Costs and Setting Rates for Renton Sub-region
In any year, Renton Sub-region Wholesale Customer means a Wholesale Customer that is served
in whole or in part by the Renton Sub-region Transmission Facilities listed in Exhibit XI, or
successor facilities.
In each year,the cost of all Renton Sub-Regional Transmission Facilities listed in Exhibit XI
shall be allocated to the Renton Sub-region Wholesale Customer(s).
The Renton Sub-region Wholesale Customer(s) shall pay either a rate established by Seattle or a
lump sum, to recover the costs for the Renton Sub-Regional Transmission Facilities. The rate
shall apply to every unit of water delivered to Renton Sub-region Wholesale Customer(s). The
parties may agree to the payment of a lump sum over a reasonable period of time, plus interest at
Seattle's Average Cost of Debt.
Actual costs and actual revenues for the Renton Sub-Region shall be trued up in a manner
consistent with Section IV.I.
PARTIAL REQUIREMENTS CONTRACT
CITY OF RENTON Page 88
EXHIBIT XIII
Water Utility Independent Sources of Supply
Water Utility operates the following independent sources of supply (each an "Independent
Source"):
Source Description Production Capacity
( m) (m d
Active Sources
S rin brook 1,050 1.51
Well RW-1 see note 1) 2,200 3.17
Well RW-2 (see note 1) 2,200 3.17
Well RW-3 (see note 1) 2,200 3.17
Well PW-8 (see note 1) 3,500 5.04
Well PW-9 (see note 1) 1,300 1.87
Well PW-11 2,500 3.60
(supplemental—see note 1)
Well PW-12 1,500 2.16
(supplemental—see note 1)
Well PW-17 1,500 2.16
(supplemental—see note 1)
Total of all active sources 17,950 25.85
(see note 1)
Emer enc Active Source
Well EW-3 1,600 2.30
Non-active source(see note 2)
Well PW-5A 1,250 1.80
Note 1: All these active sources can be used in any combination as long as the total Qa(annual)
does not exceed 14,809.5 Acre-feet per year(or 4,825 MG/year) and as long as the total
Qi (instantaneous) for all these sources does not exceed 11,400 gpm.
Note 2: Well PW-5A is currently inactive due to water quality issues. The City of Renton
anticipates adding water quality treatment in the future in order to use this source of supply.
Water Utility shall use its best efforts to maintain and operate the Independent Sources in order
to maintain their annual production capacity as listed above. Water Utility shall provide written
notice to Seattle within thirty days of determining that it is not possible or not cost effective to
maintain and operate an Independent Source at its listed production levels. Such written notice
shall describe the new level of production expected for Independent Source, and shall trigger a
charge of Facilities Charges under Section IV.E.8.d.
Water Utility shall use its best efforts to cure any interruption of water supply from an
Independent Source, shall provide oral notice to Seattle of an interruption of an Independent
PARTIAL REQUIREMENTS CONTRACT
CITY OF RENTON Page 89
. a
Source lasting longer than I week, and shall provide information on the expected additional
demand for water deliveries from Seattle resulting from the interruption. Water Utility shall use
its best efforts to minimize the impact of an interruption of an Independent Source on the Seattle
Regional Water Supply System by utilizing its other Independent Sources unaffected by the
interruption within their operating and maintenance constraints.
It is the intent of the parties that the production capacities listed in this Exhibit fairly represent
the.production capability of the Independent Sources. In the event that, over a five year period,
(i) the actual total annual production, as may be adjusted to reflect a reasonably unforeseeable
interruption in Water Utility's Independent Source that lasts a substantial amount of time and is
cured within a reasonable time, of the Independent Sources is consistently less than represented
in this Exhibit, and (ii) the annual deliveries of water to Water Utility by Seattle are consistently
increasing, the capacities of the Independent Sources listed in this Exhibit shall be reduced, and
the reduction shall be deemed a permanent interruption and trigger a charge of Facilities Charges
under Section IV.E.8.d.
PARTIAL REQUIREMENTS CONTRACT
CITY OF RENTON Page 90