HomeMy WebLinkAbout2455 - Everett, City of - Agreement - Water Supply ContractEVERETT AND JOA PA RTICIPANTS
WATER SUPPLY CONTRACT
AGENCY
THIS CO NT RACT is made and entered into by and between the City of Everett, a municipal
co r poration of the Sta t e of Washingt on, herei nafter referre d t o as "Everett," and the City of
Ma rysville ("Marysvil le"), and Public Util ity District No. 1 of Snohomish County ("PUD"), municipa l
corpo rations of t he State of Washington, and the Tulalip Tribes of Was hi ngton (Tribes), a
federally recognized Indian Tribe, the latter three e ntities hereinafter ref erred to as
"Participan t s''
WHEREAS, Eve r ett owns and operates a water supp ly system located i n Snohomish
Co u nty, Washington. Th is system has regiona l supp ly capab ility for domestic, commercial, and
industr ial water consumption; and
WHEREAS, purs uant to RCW 35.92 and RCW 39.94, Everett is authorized to enter into
co ntracts w ith other m un icipalities and recognized tribes to supp ly water. Pursua nt to WAC 246-
290-100, Everett has prepared a Water Syst em Plan identi fying certain areas of north Snohomish
County as being withi n its long-range who l esale water supp ly service area; and
WHEREAS, the Participants own and operate water su pply systems in north Snohomish
Co u nty, Washington, and distribute water on a retail basis to domestic, commercia l, and
in dustrial customers w ith in t heir re spective service areas; and
WHEREAS, the Partic ipants i n 1991 entered into a Jo i nt Operating Agreement ("JOA")
for the purpose of the construction and operation of a 30-inch pipeline by Ma r ysvil le from the
Eve r ett transmissi on l in e to the Sunnyside vicinity (the "P hase I JOA Pipel i ne"), allocating pipeline
capaci t y among the Participants, and cooperating in a regio n al so lution to meet fut ure water
supply needs; and
WHEREAS, the Participants together with Washington State, Snohomish County, Ev erett
and other public water purveyors have j o intly prepared a Coord i nated Water System Plan
("CWSP") for north Snohomish Coun t y and have prepared i ndiv idua l Comprehensive Water
Sys t em Plans; an d
WHE REAS, the execution of this Contract and t he participation of the Tribes in the
processes contemp lated by the Contract do not constitute nor imply any abrogation,
diminishment or waiver of the Tribes existing or reserved r ig hts or sovereign powers, whether
arising under treaty, statute or common law; and
WHEREAS, Everett and Tribes executed a separate who lesale water de livery contract in
2016 and nothing in t hi s Contract is intended to alter the terms of that contract or the water
delivered thereu n der, and
WHEREAS, Eve r ett and the Partici pants entered into a water supply contract in October
ORIGINAL
of 1991 which termi nated July 1, 2020, and has been extended to July 1, 2021. That contract
states that the Participants shall have the right to renew the contract for an extended term of
sim ilar duration and for a quantity of water consistent with the demands projected by the CWSP .
NOW, THEREFORE, for the mutual benefits to be derived, the parties agree as follows:
1. Delivery of Water. Everett hereby agrees to deliver and sell to the Participants,
and the Participants hereby agree to purchase from Everett, a maximum of twenty million gallons
of water per day (20 MGD). The Participants will pay Everett for the delivery and treatment of
such water, to be used as one of Participants' sources of supply, in accordance with Everett's
usual and accustomed rates and conditions for customers simila rly situated and as provided in
Section 5 hereof.
2. Point of Delivery. Everett sha ll deliver water to the Participants at the connection
point located at 87t h Ave SE and 20th St SE. This connection point is referred to in this Contract
as the "Everett connection point." Since this tap is owned by Marysville, Everett will coordinate
any operational issues with Marysville as well as the PUD . Other future connection points to
serve multiple Participants shal l be subject to mutual agreeme nt. The actual point of delive r y at
the connection point shall be the upstream flange of the valve downstream of the master meter
and check valve.
3. Quantity of Water. Marysville constructed the Phase I JOA Pipeline from the
Everett connection point as Phase 1 of the preliminary CWSP and JOA. Everett and Participants
agree that each have, and will continue to make, significant capital investments in water supply
fac ilities which are interdependent, and that coordinated planning w il l be required throughout
the term of this Co ntract•to maximize public benefits and minimize costs. In the design of
future Participants' water supply projects, Everett shall not be responsible for storage beyond
Everett's existi ng storage at Chaplain Reservoir. Everett agrees to use best efforts, subject to
meeting the requirements of all Everett customers and subj ect to Section 10 and Section 11
below, to provide a regular and uninterrupted supply of water at the Everett connection point.
Everett will exercise best efforts to operate so as to supp ly water at a hydraulic head of not less
than 440' mean sea level at the Everett connection point throughout the term of this Contract as
long as parties are in compliance with the Operating Plan (Exhibit B).
It is understood that the Participants may reach peak demands of 20 million gallons per
day (MGD) through the Phase I JOA Pipeline before the expi ration of this Contract and that
additional facilities, including a second pipeline connection to Everett and a regional reservoir,
may be required to meet long range demands . A second pipeline connect ion wil l requ ire a
separate water contract between Everett, Marysville and as many of the other Participants who
choose to participate in this second pipeline connection.
Estimated average daily demands and peak day demands of the Participants are shown
in the Participants' individual Comprehensive Water System Plans. Everett's facilities have, or
wi ll have in the future, the capacity to supply the Participants' water quantity demands at the
Everett connection point of a peak of 20 MGD. The PUD and Tribes have other points of
withdrawal from Everett's water system that are not subject to this Contract.
:rhe Participants have developed an Operating Plan (Exhibit B) to accommodate the
operational needs of the'parties. This plan is for operating purposes only. If conditions change, it
may be modified by mutual agreement of the Public Works Directors of Everett and Marysville
and the PUD AGM-Water Utility or their designees.
If peak flow ratios (i.e. peak flow/average flow)1 become an issue that adversely affects
Everett's ability to deliver water under the conditions of this Contract, it will convene a
committee of itself and the Participants. This committee will be charged with modifying the
Operating Plan (Exhibit B) in such a manner to reduce the adverse effects of peaking. If this effort
is unsuccessful, Everett reserves the right to implement, and the Participants shall pay, a demand
charge as may be established by Everett ordinance.
The quantity of water delivered shall be measured by the master meter referred to in
Section 2 above. Nothing herein, however, shall be construed as obligating the Participants to
take or purchase any minimum quantity of water from Everett at any time except as Everett's
rates require minimum payment related to each connection.
4. Quality of Water. Everett agrees that all water delivered to the Participants at the
Everett connectio'n point shall be of the same standard and quality as that normally delivered by
Everett to master meter customers east of the Snohomish River. Everett shall be responsible for
meeting state and federal standards for safe, high-quality drinking water at the point of delivery.
All water supplied by Everett for use or sale by the Participants shall. be upon the express
condition that after it has passed the point of delivery the water becomes the property and
responsibility of the Participants, and Everett shall not be liable for any damages or loss resulting
from degradation of water quality which may occur beyond such point. Further, Everett shall not
be responsible for changes in water quality or operating problems which may result from mixing
of different sources-·of water in the Participants' systems. Participants shall provide means to
assure that water will not backflow into the Everett system. Everett shall not be responsible for
acts of sabotage that might degrade the quality of water delivered to the Participants.
5. Rates and Charges. Rates and charges to be paid by Participants, including a
demand charge as described in Section 3 above, shall be established by ordinance of Everett from
time to time. (As of the date of this Contra.ct, Everett rate ordinance is Ordinance 3793-27.) The
charges for water service shall include a base rate, a minimum charge ·for each connection, and
a filtration charge. The base rate for water and the minimum charge for each connection and the
filtration charge shall be established by ordinance of Everett and shall be based on cost of service
principles; provided that it is agreed that rates may -include usual and accustomed charges
imposed on the Everett utility by the Everett's general fund. The rate structure may include a
minimum charge for each point of connection without regard to consumption plus a commodity
' charge. The Participants agree to read each of the master meters on a monthly basis and provide
Everett with the readings by the 7th day of each month. Everett agrees that the Participants shall
be served with notice of any future rate modifications that will impact the Participants at least
thirty (30) days prior to consideration of such modifications by the Everett City Council.
6. Payments by Participants. On a monthly basis, Everett shall bill Marysville for
water delivered through the Phase I JOA pipeline master meter less the amount that the PUD
withdraws from its Soper Hill tap off of the Phase I JOA pipeline. Everett shall bill the PUD for
their water withdrawal from this tap. These bills shall be payable within thirty (30) days after
receipt of the invoice. Delinquent bills shall accrue interest at the rate of twelve percent (12%)
per annum for any delinquency greater than sixty (60) days.
7. Resale or Distribution of Water by the Participants After water has passed the
point of delivery and has entered Marysville's Phase I JOA pipeline, the water becomes the
property of the Participants according to the point of delivery and/or their respective capacity
right as established in the JOA and the use and distribution of the water shall be under the
exclusive authority of the Participants, subject only to the following express limitations.
a. Everett Ordinance No. 1347-87 (EMC 14.15.460) requires that new
connections outside the City of Everett greater than 12 inches are subject to Everett Water
System Plan modification. Participants agree not to allow any customer connection to
Participants' water systems which is using water purchased from Everett under this Contract if
such connection is greater than 12 inches in diameter or supplies more than ore million gallons
per day, unless Participants first obtain approval from Everett for such connection. Everett's
approval shall not be unreasonably withheld and shall be based on the water supply impacts to
the Everett water system caused by such connection.
b. The Participants will distribute water received from Everett in a manner
consistent with the Everett Water System Plan, the CWSP, and the individual Participants' Water
Systems Plans, as approved by the Washington State Department of Health, if appropriate.
c. The Participants shall not serve water received from Everett, pursuant to
the terms of this Contract, in areas outside the service area shown in Exhibit A attached hereto.
Exhibit A shall be changed if future Everett Comprehensive Water Plans change the Everett
Service Area.
8. Term of Contract The term of this Contract shall be from the date of its mutual
acceptance by all parties until December 31, 2050. The Participants shall have a right to renew
this Contract for an extended term of similar duration and quantity of water for a peak of 20
MGD.
9. Construction, Operation and Maintenance of Capital Improvements. The
Participants at no cost to Everett shall construct all capital improvements to their water systems
and shall own all capital ·improvements downstream from the point(s) of delivery and shall
assume exclusive responsibility for the operation, maintenance, and repair of the same. AU
construction, operation, and maintenance and repairs shall be in strict compliance with standards
approved by the Washington State Department of Health as appropriate. The Participants shall
annually provide to Everett a water system report to include number of customers, peak use and
other information useful in optimizing joint operations.
10. Continuity of Service.
a. To the extent feasible, Everett shall continuously maintain service to the
Participants as set forth in this Contract. In the event of a general emergency or water shortage,
Everett and the Participants will share in implementing the necessary water conservation
measures. Recognizing that both Everett and the Participants have critical customers, Everett will
consult with the Participants regarding water allocations. General restrictions placed upon
deliveries to the Participants shall be made according to Everett's most recent Emergency and/or
Drought Response Plan. In the event of localized emergency problems, temporary service
interruptions may result.
b. It is recognized by the parties that emergency conservation measures may
have to be implemented by the Parties on a regional basis in order to meet an emergency
condition. The Participants shall assist and support such emergency conservation measures.
c. Everett shall provide oral notice to the Participants, and may temporarily
interrupt or reduce deliveries of water to the Participants, •if Everett determines that such
interruption or reduction is necessary or reasonable in case of system emergencies. Except in
cases -of emergency, and in order that Participants' operations will not be unreasonably
interfered with, Everett shall give the Participants five (5) days' notice of any other interruptions
or reduction in services, the reason therefor, and the probable duration thereof, including any
interruptions or reduction in_ services that will be caused by installation of equipment, repairs,
replacements, investigations, inspections, or other maintenance performed by Everett on its
water system or those parts of the system supplying the Participants.
11. Force Majeure and Changes in Law. None of the parties hereto shall be
considered to be in default in respect to any obligations hereunder if prevented from fulfilling
such obligations due to conditions beyond their reasonable control or due to changes in state or
federal law. If a party is unable to.perform in whole or in part because of such condition or change
in the law, the party shall diligently and promptly take reasonable steps to· allow it to perform.
12. Miscellaneous
a. Assignment; Successors Bound. Neither this Contract nor any right or
privilege herein shall be assigned by any party without the written consent of the other parties.
This Contract shall apply to and be binding upon the lawful successors of all parties.
b. Notices. Unless otherwise provided herein, all notices complying with this
Contract shall be sent by registered mail as follows:
To Everett:
Public Works Director
Everett Municipal· Building
2930 Wetmore Avenue
Everett, WA 98201
To the PUD:
AGM-Water Utility
PUD No. 1 of Snohomish County
PO Box 1107
Everett, _WA 98206
To Marysville:
Utility Manager
City of Marysville Public Works
80 Columbia Avenue
Marysville, WA 98270
To the Tribes:
Public Works Director
Tula lip Tribes of Washington
6406 Marine Drive
Tulalip, WA 98271
c. Legal Relations. Notwithstanding any other provision of this Contract,
no party to this Contract will liable to any other party for indirect, incidental, special,
exemplary or consequential damages, including but not limited to damages for lost
revenues or benefits, even if such party has been advised of the possibility or existence
of such damages.
d. No Joint Venture. This Contract describes the entire relationship of the
Participants with Everett with regard to the subject matter herein concerned. Except as
maybe explicitly provided otherwise herein, the parties ar,e independent agencies and
shall not be deemed to be partners, joint ventures, principals, or agents of each other
for any purpose whatsoever: Each party shall have and maintain sole and complete
control over all of its employees, agents, and operations.
e. Dispute Resolution. Any dispute under _or in connection with this
Contract may, upon the mutual agreement of the parties, be submitted for resolution
by mediation.
f. Entire Agreement. This Contract, together with any exhibits, sets forth
the entire agreement of the parties with regard to the subject matter hereto.
g. No Third Party Beneficiaries. None of the provisions of this Agreement
shall inure to the benefit of or be enforceable by any third party.
h . Waivers. Any waiver at any t ime by a party of its rig ht with respect to a
default under this Co ntract, or with respect to any other matter ar ising in connect ion
therewith, shall not be deemed a waiver with respect to any subsequent default or
matter. Any party may waive any notice or agree to accept a shorter notice than
spec ified in th is Contract. Such waiver of notice or acceptance of shorter notice by a
party at any time regarding a notice shal l not be considered a waiver with respect to any
subsequ ent notice required under this Contract.
i. Amendment. Except for change s to the Operating Plan, no change,
amendment or modification of any provision of this Contract shall be valid unless set
forth in a written amendment to this Contract signed by al l parties w ith the same
forma lity as this contract.
IN WITNESS WHEREOF, the parties ha ve caused this Contract to be execut e d by
their proper officer and will become effective on the date of the latest signature
on the day of , 2021.
CITY OF EVERETT
WASH INGTON
Date -
ATTEST:
APP ROVED AS TO FORM :
Office of the City Attorney
APPROVED AS TO FORM
David C. Hall, City Attorney
City Attorney
Date: ______ _
CITY OF MARYSVILLE
WASH IN GTON
Date: ~ I 11 !-io"7,\
ATTEST:
P~tyClerk
Date: 51 it l 1-ov'.I
APPROVED AS TO FORM:
~
Date : tf · ~· 2--<
PUBLIC UTILI TY DISTRICT NO. 1 OF
SNOHOMISH COUNTY
Manager
Date:
APPROVED AS TO FORM:
Assistant General Counsel
Date: f/t9-pt12-{
. TULALIP TRIBES OF WASHINGTON
By:~~
~air of Tribal Board
cif Directors
Page 538 of 1140
Service Area
EXHIBITB
JOA OPERATING PLAN
1. PURPOSE
This Plan establishes the terms and conditions under which Everett and the Participants shall
operate their facilities, how flow changes at the point of delivery and Transmission Line
operations shall be coordinated, and the conditions under which Everett meters the flow from
Everett's Transmission Line at Marysville's point of delivery.
2. RESPONSIBILITIES OF THE CITY OF MARYSVILLE AND THE PUD
A. Marysville shall maintain and repair all its Facilities starting at the point of delivery from
Everett's Water Transmission Line No. 3 downstream of Everett's valve and meter.
B. Marysville and th_e PUD shall provide Everett's operations contact advance oral or written
notice of any proposed flow change that will result in a flow change (Increase or decrease) as
follows:
1) For flow changes less than 2 fY!lllion gallons per day (MGD), no notification is
necessary.
2) For flow changes equal to or greater than 2 MGD,at least one (1) hour
notice, if not previously scheduled.
3, RESPONSIBILITIES OF THE CITY OF EVERffi
A. Everett shall notify Marysville's and the PU D's Operations Contact, as listed in Section 6 of
this Plan, at least 24-hours prior to any significant operational changes, construction or
shutdown of key Everett facilitles that could impact operations of Marysville and the PUD except
for an emergency shutdown. Significant operational changes shall include but not be limited to:
1) Closure of valves on Everett's Transmission Line No. 3
2) Removal from service of either of Everett's clearwells located at Everett's Water
Filtration Plant.
B. Everett shall Immediately notify Marysville's and the PU D's Operations Contact whenever it
experiences or initiates an operational change outside the normal operating parameters of
Everett's supply system or Everett's Water Transmission Line No. 3.
C. Everett shall own, maintain, and operate a meter including arranging and paying for
calibration and or maintenance by the manufacturer or other acceptable service provider.
D. Everett shall respond to Marysville's and the PU D's flow change notifications by managing
flows on Everett's WaterTransmisslon Line No. 3 in a manner that is consistent with the
"Everett and JOA Participants Water Supply Contract".
4. SHUTDOWNS
A. For any planned shutdowns that Impact Marysville and the PUD, Everett shall:
1) Communicate with Marysville's and the PUD's Operations Contact listed in Section 6
about plans that may Impact Everett's Water Transmission Line No.3 at least four
months in advance to allow for coordination of planned shutdowns. . .
2) Provide written and verbal notice to Marysville's and the PU D's Operations Contact
listed in Section 6 at least 30 calendar days prior to the shutdown.
3) Strive to avoid planned shutdowns on Fridays through Sundays, and during the period
from May 15 to September 15.
~-Everett shall immediately inform Marysville's and the PUD's Operations Contact if an
emergency shutdown of Everett's Water Transmission Line No. 3 is necessary.
C. Data Sharing
A. As Everett, Marysville and the PUD mutually agree, each party shall provide the other party
their system's digital communications, if requested, as described below:
Status cifflow, storage, pumping and power supply.
S. EMERGENCIES
A. Everett shall immediately notify Marysville's and the PU D's Operations Contact listed in
section 6 whenever it experiences or initiates an operational change outside the normal
· operating parameters of Everett's supply system or Everett's Water Transmission Line.No. 3.
Everett shall Inform Marysville's and.the PU D's operational contact if it believes that an
emergency shutdown is necessary, including any closure of the isolation valve on Everett's
Water Transmission Line No. 3'.
B. Marysville and the PUD shall be responsible for modifying.or sh'uttlng down its operations
.during a shutdown emergency as defined in Section 5.A. above.
C. Whenever Marysville or the PUD believes an emergency shutdown of its operations is
necessary, their operational contact shall immediately inform Everett's Operations Contact of
the pending emergency shutdown .
. D. Marysville and the PUD sh?II be responsible for contacting Everett's Operations Contact and
coordinating the re-start of its operations following any em~rgency shutdown.
E. Marysville or the PUD shall be responsible for any damage to Everett's Water Transmission
Line No. 3 caused by their negligent operation of facilities by Marysville or'the PUD. Everett shall
be responsible for any damage to the.Marysville or the.PUD Facilities caused by the negligent
operation of Everett's water supply system.
6. OPERATIONS CONTACTS
The following persons shall serve as the points of contact for notification of all changes that
impact the operation of Marysville and the PUD facilities or the flow in Everett's Water
Transmission Line No. 3 under normal and emergency conditions, and oversight of this Plan:
EVERETT'S OPERATIONS CONTACT:
Senior Operator (for emergency conditions)
Everett Water Filtration Plant 425-257-8200
After Hours: 425-257-8821 or 425-568-6650
For Operations Plan Oversight:
Operations Superintendent
425-257-8967 (office) or425-210-0103 (mobile)
MARYSVILLE'S OPERATIONS CONTACT:
Water Operations Supervisor
360-363-8163 (office) or 425-754-2597 (mobile)
After hours: Standby, 360-913-2560
For Operations Plan Oversight:
Utility Manager
360-363-8161 (office) or 425-583-9030 (mobile)
PUD'S OPERATIONS CONTACT:
Water Superintendent
425-397-3005 (office) or 425-359-0403 (mobile)
After hours only: 425-879-6735
Main water number: 425-397-3000