HomeMy WebLinkAboutCOW 2003-07-14 Item 4A - Contract - Cascade Water Alliance (CWA) Update and City of Seattle Supply1908
I CAS Number: 03-095
Agenda Item Title:
Original Sponsor:
Timeline:
Sponsor's Summary:
Recommendations:
Sponsor:
Committee:
Administration:
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1 Meeting Date
1 7/14/03
Meeting Date
7/14/03
COUNCIL AGENDA SYNOPSIS
Meeting Date
7/14/03
0 3 -0 95
Cascade Water Alliance Update Seattle Supply Contract
Council
Cascade Water Alliance recently completed contract negotiations to purchase a wholesale
block of water from the City of Seattle. A 50 -year declining block water supply agreement
will need approval by the City of Seattle and CWA members before the next CWA board
meeting in mid August. Cost impacts will be assembled and brought back later in July. Also,
DOE has approved the Lake Tapps water right and CWA will now proceed with PSE to
finalize settlement arrangements.
Forward to Committee of the Whole for review and direction.
Same as sponsor.
401 Water Fund
Attachments
Information Memo dated July 9, 2003 (revised after UC meeting)
Cascade Water Alliance Water Program Summary
50 -Year Declining Block Water Supply Agreement between City of Seattle CWA
Utilities Committee Meeting Minutes from July 8, 2003
Initials
Prepared by 1 Mayor's review 1 Council review
G4'L�_
E M INFORMATION
Original Agenda Date: July 14, 2003
Admin.
Action
ITEMNO.
Public Works
To: Mayor Mullet i
From: Public Works Directo
Date: July 9, 2003
Subject: Cascade Water Alliance Update Seattle Sunnly Contract
ISSUE
The Cascade Water Alliance (CWA) continues in their role of providing regional responsibility
and leadership to growing water demands and environmental issues. As part of establishing a base
supply of water for its members, CWA has recently completed contract negotiations to purchase a
wholesale block of water from the City of Seattle.
BACKGROUND
INFORMATION MEMO
Over the last three years, CWA and Seattle have been negotiating a "Water Supply Agreement" to
meet the needs of Cascade members while accommodating Seattle's concerns regarding a
wholesale block of water. Seattle had preferred a 50 -year contract. CWA staff members developed
a 50 -year contract and reached agreement with Seattle Public Utilities on provisions related to
block size and other items as outlined in the attached summary. Cost impacts will be assembled
shortly and brought back to Utilities Committee in July.
The next step in the process is to present this agreement to the legislative bodies of Cascade
Members and then the Seattle City Council. The Cascade Board is expected to take action on this
at the first Board meeting in August. The agreement would become effective for 2004. Staff
members from CWA would be available in July to present this to council including a briefing on
the CWA rate model.
On another note, DOE has approved the Lake Tapps water right. CWA will now need to proceed
with a process to fully acquire the right from PSE and fulfill obligations from the Memorandum of
Understanding.
RECOMMENDATION
This is intended to initially brief council culminating toward an action item at a future meeting.
attachments
Cf: Jim Haggerton
Cascade Wate
A lliance
CASCADE WATER PROGRAM SUMMARY
July 2003
The Cascade Water Alliance has adopted two planning and policy documents in the past year. The Action
Plan (adopted in September 2002) and the Plan for Regional Water Supply (adopted in January 2003) set
direction for the development of the Cascade Water System. The Cascade program provides an immediate
and "base load" water supply for Cascade Members, additional water for the intermediate (10 20 year)
term and a long -term supply for people and fish throughout the Region. The major components of the
Cascade Water System are the:
Block Contract with the City of Seattle;
Wholesale Purchase Contract with the City of Tacoma; and
Development of the Lake Tapps Reservoir as a public water supply.
In order to continue development and implement the Cascade Water System, the Board of Directors must
take certain specific actions. These actions include:
Approval of the 50 -Year Declining Block Water Supply Agreement with the City of Seattle;
Adoption of amendments to the Interlocal Contract;
Acquisition of the Bellevue /Issaquah Pipeline;
Acquisition of the Lake Tapps Water Right;
Negotiation of a Wholesale Water Purchase Agreement with the City of Tacoma;
Negotiation of a "wheeling" agreement with the City of Seattle;
Development of required plans; and
Adoption of the 2004 Budget
Together these actions and the related activities that support them will authorize Cascade to establish the
contractual arrangements and develop the infrastructure assets necessary to meet the current and future
water demands of its Members for the next 50 years.
Each major action required of the Board is discussed below:
Approval of the 50 -Year Declining Block Water Supply Agreement with the City of Seattle
Cascade has essentially completed negotiation of a long -term water supply agreement with the City of
Seattle. It is anticipated that the 50 -Year Declining Block Water Supply Agreement (the Block
Contract) will be presented to the Cascade Board and Seattle City Council for review and approval in
1309 114" Avenue SE, Suite 300, Bellevue, WA 98004
Telephone: 425 453 0930; Fax: 425- 453 -0953
www.cascadewater.org
Cascade Water System Development —DRAFT
July 2003
Page 2 of 2
July 2003. The Cascade Board is scheduled to act on the agreement at its August 2003 Meeting. This
agreement culminates more than three years of negotiations and provides for the purchase of water
and transmission capacity that will meet the needs of Cascade Members in the immediate future. A
summary of the major provisions of the agreement follows:
A Effective date: January 1, 2004 Termination date: December 31, 2053
Initial Cascade Block of 30.3 million gallons per day (MGD) average
Peak Season Block of 41.0 MGD
Peak Month Block of 51.2 MGD
Declining Block provisions
25.3 MGD from January 1, 2024 to December 31, 2029
20.3 MGD from January 1, 2030 to December 31, 2034
15.3 MGD from January 1, 2035 to December 31, 2039
10.3 MGD from January 1, 2040 to December 31, 2044
5.3 MGD from January 1, 2045 to December 31, 2053
First right of refusal to continue to purchase up to 5.3 MGD (with notice) for an additional 50
years
Block for resale to Cascade Members and customers within Seattle's place of use
Provision for adjustment of the Block for changes in Cascade Membership (addition or deletion of
current Seattle wholesale customers only) through December 2011
A Limits on delivery obligation for year, Peak Season, Peak Month, 30 -day period outside Peak
Season, 7-day period and single day
Seattle may install limiting devices if these limits are exceeded
A Transmission capacity to deliver the Block to Cascade Delivery Points
Water to meet or exceed federal and state standards
Cascade responsible for its own planning, shortage management and conservation programs
Coordination of planning and shortage management
Payments limited to the Existing Supply and Existing Transmission Cost Pools as well as the
Cascade Sub regional Cost Pool
Annual cost estimate provided by October 1 each year
"Take -or -Pay" obligation based on proportion of Block to Firm Yield of the current Seattle Supply
System (Cedar/Tolt/Highline)
Monthly payment schedule based on percent of annual amount
Delayed payment (with interest) for 2004 at Cascade option
A. Penalties for exceeding the Block
Rebates for failure to deliver the Block
Provision for emergency surcharge proportionate to other wholesale and retail customers
A. Individual Members accept individual contingent liability for payment in event of default (in
proportion to Block usage)
The Block Contract requires approval by the Seattle City Council prior to execution by the Director of
Seattle Public Utilities.
50 -YEAR DECLINING BLOCK
WATER SUPPLY AGREEMENT BETWEEN
THE CITY OF SEATTLE
—50 -Year Declining Block Water Sunnly Agreement
I
AND
THE CASCADE WATER ALLIANCE
6 -20 -03
Seattle Draft
ARTICLE I
ARTICLE II
ARTICLE III
ARTICLE IV
ARTICLE V
ARTICLE VI CONSERVATION
ARTICLE VII PLANNING
ARTICLE VIII COST RECOVERY
ARTICLE IX ADMINISTRATION 13
ARTICLE X TECHNICAL COMMITTEE 15
ARTICLE XI DISPUTE RESOLUTION 15
ARTICLE XII UNFORESEEN AND UNAVOIDABLE EVENTS 16
SIGNATURE PAGE 181817
Other Agreements
Points of Delivery
Block Allocation by Individual Water Utilities
Seattle Supply System Facilities
Seattle Transmission System Facilities
Cost Centers used for Operations Cost Indexes
Cascade Sub regional System Facilities
—50 -Year Declining Block Water Sunnly Agreement
TABLE OF CONTENTS
LIST OF SECTIONS
AGREEMENT 1
DEFINITIONS 1
SUPPLY
TRANSMISSION
WATER QUALITY
LIST OF EXHIBITS
2
3
5
6
6
6
7
This Agreement between the City of Seattle, a municipal corporation "Seattle and the
Cascade Water Alliance, a non profit organization of municipalities formed under authority of
Chapter 39.30 RCW "Cascade is dated this day of 2003 to be effective
January 1, 2004.
Whereas Seattle is a regional water supplier currently providing service to numerous
water utilities in King County Washington; and
Whereas a group of utilities being served by Seattle have joined together to form the
Cascade Water Alliance; and
Whereas the Cascade Water Alliance, as an organization negotiating on behalf of its
individual Member utilities, desires to enter into a single agreement for water supply with Seattle
for its Members in lieu of separate, existing contracts; now
Therefore Seattle and Cascade agree to the following terms and conditions for the
provision and purchase of a 50 -vear declining block water supply and transmixion canacity:
ARTICLE I AGREEMENT
Seattle agrees to sell to Cascade and Cascade agrees to purchase from Seattle, according to the
terms of this Agreement, a wholesale supply of water and the ncccrzary transmission capacity
sufficient to enable- deliver such water supply to Cascade.
The term of this Agreement is fifty (50) years, with an effective date of January 1, 2004 and a
termination date of December 31, 2053.
Apart from the contract right to purchase water from Seattle under the terms of this Agreement,
neither Cascade nor anv Cascade Member has any right or claim to the Seattle Water System or
to anv water right or claim held by Seattle. At the termination of this Agreement, Seattle shall
have no further obligation to supply Cascade or any of it Members with water. with the
exception of Cascade's right of first refusal to purchase up to 5.3 MGD as set forth in Section
3.4.
ARTICLE II DEFINITIONS
Average Daily Demand ("ADD"). The amount of water supplied by the Seattle Water System to
Cascade in a calendar year divided by the number of days in that calendar year.
AWWA. American Water Works Association.
Cascade Block. The total amount of water Seattle commits to supply Cascade under this
Agreement, as more fully expressed in Article III.
50 -Year Declining Block Water Supply Agreement
50 -YEAR DECLINING BLOCK
WATER SUPPLY AGREEMENT BETWEEN
THE CITY OF SEATTLE
AND
THE CASCADE WATER ALLIANCE
Cascade Member. A municipal water supplier that has entered into a Membership Agreement
with the Cascade Water Alliance.
Cascade Sub regional System. Seattle Transmission assets serving Cascade Members as listed in
Exhibit VII.
Cascade Volume Charge. In any year, the Cascade Volume Charge is the average cost to
Cascade of each million gallons of water in the Cascade Block. The Cascade Volume Charge
shall be calculated by dividing the projected annual cost of the Cascade Block calculated in
accordance with Section 8.8.B, by the product of the Cascade Block and 365.
Cascade Water System. Tangible and intangible assets owned or operated by Cascade useable in
connection with the provision of water supply.
Existing Sunnily System Facilities. Seattle Supply System assets as listed in Exhibit IV.
Existing Transmission System Facilities. Seattle Transmission System assets as listed in Exhibit
V.
Firm Yield. The estimated amount of water that Seattle's Supply System can provide according
to Seattle's 98°/ supply reliability standard and expressed in annual average MGD. Seattle's Firm
Yield as of the effective date of this agreement is 171 MGD.. Firm Yield be adiustcd if so
ordered'., S. or Feelefa' c zu1at =rent° with appropriate iurisdictic ___1:'t of
undated climatic t utilized in the h °draulic model used to calculat old. 2a:,cado shall
be n tifi d f anv notcntial c:,aritc rri xss Yield as fa :1i.
lecc than 180 days prior to tho effcotivo date of an :aMstment to Firm Yield.
Management Agreement. A written agreement, pertaining to subjects authorized by this
Agreement, between the Director, Seattle Public Utilities, and the General Manager, Cascade
Water Alliance.
MGD. Million gallons per day.
Party (ies). Seattle and/or Cascade, as well as their respective successors and assigns.
Peak Month. The consecutive thirty- (30) day period during a calendar year in which Cascade
puts its maximum demand upon the Seattle Water System.
Peak Season. June 1 through September 30.
Points of Delivery. Specific metered delivery locations at which Seattle provides a defined level
of service.
Rate of Return on Investment. The average cost of debt of the Seattle Water System plus 1.5
percent.
2
50 -Year Declinine Block Water Supply Agreement
Seattle Water System. The Seattle Supply System as listed in Exhibit IV and the Seattle
Transmission System as listed in Exhibit V together comprise the Seattle Water System.
Sub regional Facilities. Any facilities owned and operated by Seattle that are not identified as
Existing Supply System (Exhibit IV), Existing Transmission System (Exhibit V), or Cascade
Sub regional System (Exhibit VII).
ARTICLE III SUPPLY
3.1 Each calendar year from the effective date of' this Agreement through December 31, 2023,
Seattle shall make available to Cascade 31.7 30.3 MGD Average Daily Demand (the
"Cascade Block based on the current Membership of Cascade as set forth in Exhibit III.
3.2 In the event the Firm Yield of the Seattle Supply System is reduced, the Cascade Block
will be reduced in proportion to such reduction in Firm Yield In the event the Firm Yield
of the Seattle Supply Syarc,n, iraf C...:.aa. c shall have tho oition t: .c the
BI ck in or norti n t such incrcasc.Firm Yield may be adjusted if so ordered by a State or
Federal regulatory agency with appropriate jurisdiction or as the result of updated climatic
data utilized in the hydraulic model used to calculate Finn Yield. Cascade shall be notified
of any potential change in Firm Yield as far in advance as possible, but in no event less
than 180 days prior to the effective date of an adjustment to Firm Yield.
3.3 Seattle will supply the Cascade Block during the Peak Season and Peak Month as follows:
A. During the Peak Season Cascade demand shall not exceed 41_0 MGD the Cascade
Block multinliod b° 1.35;
B. During the Peak Month Cascade demand shall not exceed 51.2 MGD tJte =tde
3.4 The Cascade Block shall be adjusted in accordance with the following schedule:
A. Beginning January 1. 2024 through December 31, 2029 Seattle shall make available to,
Cascade 25.3 MGD Average Daily Demand:
B. Beginning January 1. 2030 through December 31, 2034 Seattle shall make available to,
Cascade 20.3 MGD Average Daily Demand:
C. Beginning January 1. 2035 through December 31. 2039 Seattle shall make available to
Cascade 15.3 MGD Average Daily Demand:
D. Beginning January 1, 2040 through December 31. 2044 Seattle shall make available to
Cascade 10.3 MGD Average Daily Demand:
E. Beginning January 1. 2045 through the termination date of this Agreement Seattle shall
make available to Cascade 5.3 MGD Average Daily Demand:
3.5 At the conclusion of this Agreement on December 31. 2053. Cascade shall have a first right
of refusal to purchase un to 5.3 MGD of water for a period of 50 vears. This first right of
refusal is for the sole nurnose of serving Cascade Members that cannot be served by any
other means than the Seattle Transmission System and shall be exercised by Cascade upon
a minimum of one year's written notice to Seattle specifying the Block of water from zero
to 5.3 MGD and the Cascade Members to be served by that Block.
3
50 -Year Declining Block Water Supply Agreement
3.6 All water supplied to Cascade under this Agreement is for the purpose of re -sale to Cascade
Members and other customers of Cascade; provided that all water supplied under this
Agreement must be used within the designated place of use of Seattle's water certificates,
permits, or claims.
3.7
A. Before December 31, 2011, if an agency identified in Exhibit III becomes a Cascade
Member, Seattle will release that agency from its obligations under its existing water
supply contracts with Seattle in accordance with the provisions of such contract and the
Cascade Block will be increased by the allocated amount of water identified in Exhibit
III, with corresponding proportional increase to the adjusted Cascade Block in Sections
3.2 and 3.43. If that agency takes delivery of all or a portion of its water through a
Sub regional Facility, Cascade and Seattle shall enter into a Management Agreement
for the costs of such facility.
B. Before December 31, 2011, if a Cascade Member, previously a Seattle wholesale
customer, withdraws from Cascade and contracts for water supply directly with Seattle,
Cascade will release that Member from its Membership Agreement in accordance with
the provisions of such Agreement, and the Cascade Block will be decreased by the
amount of allocated water identified in accordance with the provisions of such
Agreement in Exhibit III, with corresponding proportional decrease to the adjusted
Cascade Block in Sections 3.2 and 3.43. If that agency takes delivery of all or a
portion of its water through a Cascade Sub regional System Facility, Cascade and
Seattle shall enter into a Management Agreement for the costs of such facility_orior to
increasing the Cascade Block.
3.8 For the purpose of determining the consecutive 30 -day period, which constitutes the Peak
Month, a daily average delivery may be calculated so long as meter readings occur no
fewer than 26 days apart. In such cases, daily average delivery shall be calculated by
dividing the total deliveries by the actual number of days between meter readings. Periods
less than 26 days shall not be applicable for determining the Peak Month.
3.9 Daily average delivery during the Peak Season may be calculated using meter readings
taken closest to June 1 and September 30 each year and dividing the total delivery during
such time by the actual number of days between meter readings. Periods less than 110 days
shall not be applicable for determining the Peak Season.
3.10 Seattle shall endeavor to read the meters at all Points of Delivery on the same day. In the
event that meters at all Points of Delivery cannot be read on the same day, all meter reads
for that metering period shall be considered to occur on the day on which the meters
measuring the majority of the Cascade volume for that metering period were read.
3.11 Normal operation of the water system includes the periodic shutdown of various facilities
for routine maintenance, rehabilitation and replacement. Seattle and Cascade shall
cooperate in the timing of such activities. Cascade shall not use such activities as evidence
of the unavailability of supply or transmission services provided by Seattle under this
Agreement.
4
50 -Year Declinine Block Water Supply Agreement
3.12 Nothing in this Agreement, including, but not limited to, any penalties for exceedance of
the Cascade Block, shall be construed to require Seattle to sell or deliver water in excess of
the following amounts:
A. Total deliveries during a calendar year in the amount of the Cascade Block multiplied
by 365 (366 in leap years);
B. Total deliveries during the Peak Season in the amount of the Cascade Block multiplied
by 165;
C. Total deliveries during the Peak Month in the amount of the Cascade Block multiplied
by 51;
D. Total deliveries during any consecutive 30 -day period from October 1 to May 30 in the
amount of the Cascade Block multiplied by 30;
E. Total deliveries during any consecutive 7 -day period ef—in the amount the Cascade
Block multiplied by 13;
F. Total deliveries within any one -day period ef—in the amount of the Cascade Block
multiplied by 2.
Upon notice by Seattle of exceedance of these limits, Cascade must immediately reduce its
deliveries of Seattle water. Upon the failure of Cascade to reduce its demand, Seattle may
install and operate devices that limit deliveries to Cascade to these amounts, all at
Cascade's expense.
ARTICLE IV TRANSMISSION
4.1 Each calendar year during the term of this Agreement, Seattle shall sell to Cascade and
Cascade shall purchase from Seattle capacity in the Seattle Transmission System according
to the following terms and conditions:
A. Seattle shall provide capacity sufficient to supply the Cascade Block to Cascade at
Cascade's Points of Delivery. Adjustments in the Cascade Block shall result in an
equivalent adjustment in Seattle's Transmission capacity commitment. The specific
Points of Delivery that are to be adjusted and the adjustment for each Point of Delivery
shall be determined by Management Agreement so long as a determination is made that
there is no adverse impact on the overall Seattle Water System.
B. Points of Delivery are identified in Exhibit II. The location, hydraulic gradient and
instantaneous flows at each Point of Delivery may be changed by Management
Agreement. Seattle shall bill Cascade for capital costs associated with Cascade Points
of Delivery.
C. Seattle shall supply water at the inlet side of each Point of Delivery meter at a hydraulic
gradient no less than the minimum identified in Exhibit II and with an instantaneous
flow rate not to exceed that Point of Delivery's peak day demand as set forth in the
same exhibit. Seattle may change the minimum hydraulic gradient at any Point of
Delivery once during any fifteen -year period, provided that four years prior notice is
given to Cascade. Under emergency conditions or other unusual short-term operating
situations Seattle shall not be obligated to meet minimum hydraulic gradients.
50 -Year Declinine Block Water Supply Agreement
5
D. Cascade may request additional Points of Delivery from the Seattle Transmission
System, which Seattle may approve or reject at its sole discretion. Seattle shall
establish the minimum hydraulic gradient for any new Point of Delivery at its sole
discretion, after consultation with Cascade. Changes in Points of Delivery shall be
determined by Management Agreement.
E. No provision of this Agreement shall be construed to require Seattle to provide more
than the instantaneous flow identified in Exhibit II. Upon notice by Seattle, Cascade
shall immediately reduce Cascade deliveries at a Point of Delivery to not more than
those identified in Exhibit II. In the event that Cascade is unwilling or unable to reduce
deliveries as required under this provision, Seattle may install and operate flow
restricting devices at non compliant points of delivery, all at Cascade expense.
4.2 Cascade is served, in part, by transmission facilities referred to as the Cascade Sub regional
System listed in Exhibit VII. The costs of operating, maintaining, repairing and replacing
these facilities shall be the responsibility of Cascade as outlined in Section Exhibit VIII
4.3 Nothing herein shall restrict Cascade's authority to construct an independent water
transmission system for its own water supply.
4.4 Cascade Members have interties, listed in Exhibit I, with adjacent water utilities that are
non Cascade members. Any existing agreements related to the billing and meter_reading
arrangements for these interties are assumed as a part of this Agreement. If new
interconnections between Cascade or Cascade Members and non Cascade members require
similar billing and meter reading arrangements, such arrangements shall be defined in an
agreement to be entered into by Cascade, Seattle and the non Cascade member.
ARTICLE V WATER OUALITY
Seattle shall be responsible for water quality within the Seattle Water System, and it shall supply
water to Cascade, that meets or exceeds federal and state drinking water quality standards, as
those standards may change from time to time.
ARTICLE VI CONSERVATION
Each Party is committed to the principles of water conservation and each intends to achieve its
anticipated savings by implementing water conservation programs either unilaterally or in
partnership with other agencies.
ARTICLE VII PLANNING AND SHORTAGE MANAGEMENT
7.1 Each Party recognizes its obligation to plan for water supply and distribution in compliance
with the State Department of Health water system planning regulations Each Party shall
develop a water system plan for its service area and the Parties shall coordinate those
elements of overlapping responsibilities.
50 -Year Declining Block Water Supply Agreement
6
7.2 Cascade and Seattle shall coordinate the development, adoption and implementation of
their respective Water Shortage Management Plans. Before invoking its Water Shortage
Management Plan, the Parties shall communicate with each other concerning current and
projected water supply conditions.
7.3 Seattle has negotiated agreements with federal agencies, state agencies and tribes for the
long term preservation and enhancement of watersheds and in- stream beneficial uses and
habitat. Such agreements have direct bearing on decisions to curtail the amount of water
available for municipal and industrial water supply in any given season Any water use
restrictions imposed under the terms of such agreements shall be borne proportionately by
Seattle, its other wholesale customers, and Cascade with respect only to the Cascade
Block.
ARTICLE VIII COST RECOVERY
8.1 The provisions of this Article shall apply to the establishment of fees and charges for water
supply and related services beginning January 1, 2004. Prior to that date, the pricing
provisions of each Cascade Members' individual water supply contract with Seattle shall
be maintained.
8.2 For the purposes of determining costs of water supply, there shall be two water supply cost
pools consisting of an existing Seattle water supply assets cost pool "Existing Supply Cost
Pool and a new Seattle water supply assets cost pool (the "New Supply Cost Pool
A. Existing Sunnly Cost Pool. The costs of infrastructure, including operation,
maintenance, repair and replacement of Seattle Supply System Facilities listed in
Exhibit IV shall be included in the Existing Supply Cost Pool
B. New Sunnly Cost Pool. The costs of water supply resources developed in the future
"New Supply Resources that expand the capacity of the Seattle Supply System,
including the costs of the 1% conservation program from January 1, 2004 through 2010
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 allocated to the Existing Supply Cost Pool by Management Agreement.
8.3 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 Cascade transmission cost pool "Cascade Sub
regional System Cost Pool
A. Existing Transmission Cost Pool. Costs to be allocated to the Existing Transmission
Cost Pool shall consist of the following: operation, maintenance, repairs and
replacements to the Seattle Transmission System Facilities listed in Exhibit V. Costs
incurred for purposes of transmission reliability may be included in the Existing
Transmission Cost Pool by Management Agreement.
7
50 -Year Declining Block Water Supply Agreement
B. New Transmission Cost Pool. The cost of new transmission facilities shall be included
in the New Transmission Cost Pool. A portion of the renewal, replacement or
modification of existing transmission facilities which create an expansion of
transmission capacity may be allocated to the New Transmission Cost Pool.
Cascade Sub regional System Cost Pool. The costs of operating, maintaining, repairing
and replacing the Cascade Sub Regional System Facilities owned by Seattle and listed
in Exhibit VII shall be included in the Cascade Sub regional System Cost Pool, in an
amount proportionate to the use of' the facilities by Cascade, together with any other
costs Cascade and Seattle agree to include by Management Agreement. In the event
that Cascade ceases to receive water through one or more of the facilities in the
Cascade Sub regional System, these facilities may be decommissioned at Seattle's sole
discretion, and Cascade shall pay Seattle for the remaining Net Book Value of the
decommissioned facilities in an amount proportionate to the use of the facilities by
Cascade together with any decommissioning costs.
&4D 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 Water System expands to include new infrastructure and new
customers. The costs in an additional cost pool, or a portion thereof, may be allocated
to a cost pool identified in Section 8.2 and 8.3 provided the costs of the facilities within
that additional cost pool could be allocated directly to the cost pool in accordance with
this Agreement. Any cost may be allocated to any cost pool by Management
Agreement.
8.4 A. If Seattle determines that changing the location of a Cascade Point of Delivery is
required for the improved operation of the Seattle Transmission System then such costs
shall be included in the Existing Transmission Cost Pool. Seattle shall notify Cascade
of any proposed changes to a Cascade Point of Delivery and consult with Cascade to
ensure minimal impact on the affected Cascade Member's distribution system and
appropriate coordination of operation and construction activities.
B. If Cascade requests the change in location of a Cascade Point of Delivery or if
improvements are required to a Cascade Point of Delivery, then such coot shall be
included in the Cascade shall Dav the costs associated with the change. Sub Regional
System C ct P 1. Seattle will bill Cascade for, and Cascade shall pay, all capital costs
associated with the Cascade requested change in location of or necessary improvement
to a Cascade Point of Delivery, including, but not limited to, meter replacement,
telemetry equipment and vault replacement. The cost of improvements to a Cascade
Point of Delivery shall be bome by Cascade regardless of the cause for the
improvements provided that such cause is consistent with AWWA and safety standards
and practices. Capital costs will be invoiced and due in 30 days upon receipt or as
otherwise provided for by Management AgreementScattic shall notify az nie of any
C.
annr nriatc c rdinati n f ncrati n and eetietpaetlea
8
50 -Year Declining Block Water Supply Agreement
8.5 Seattle shall maintain a cost accounting system consistent with the provisions of this
Agreement and generally accepted accounting principles consistently applied in developing
the financial information for determining the costs of construction, replacement,
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 Iess
retirements.
B. Depreciation. Facilities shall be depreciated according to 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.
8.6 Costs in each cost pool shall be calculated as follows:
A. 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.
1. Utilitv Basis. The utility basis shall be used to calculate the infrastructure costs for
all Existing Supply Facilities, all Existing Transmission Facilities, and all Cascade
Sub Regional System facilities, as well as their replacements and betterments.
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 then 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. Onerations 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 and maintenance
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
facilities construction projects.
1. Existing Sunnly Onerations 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 2001 shall be
9
50 Year Decl ining Block Water Supply Agreement
$17,780,262.00. In each succeeding year, the amount from the previous year shall
be adjusted by the percentage change in the total cost of all the supply cost centers
identified in Exhibit VI, except that the increase in treatment operations costs
caused by the first full year start-up of the Cedar Treatment Plant at Lake Youngs in
or around 2005 shall not be included in the percentage adjustment. Any increase in
Cedar Treatment operations costs for the first full year of operation of the plant
shall instead be added directly to the Operations Cost total from the prior year as
adjusted by the index. For each year after the first full year of operation, increases
in Cedar Treatment operations costs shall be included in the adjustment index.
2. 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 2001 shall be $4,531,931.00. In each succeeding year, the amount of these
costs from the previous year shall be adjusted by the percentage change in the total
cost of all the transmission cost centers identified in Exhibit VI.
3. Cascade Sub regional System Cost Pool Operating Costs. Cascade Sub regional
System Cost Pool Operating Costs shall include: (i) the actual costs of operating the
facilities listed in Exhibit VII in proportion to the actual use of such facilities by
Cascade; (ii) the electricity costs paid by Seattle after the effective date of this
A in accordance with certain contracts effective on or before January 1,
2002 identified in Exhibit I, for pump stations owned and operated by Cascade
Members and connected to the Tolt East Side Supply Line; and, (iii) any other costs
approved by Management Agreement shall be Cascade Sub regional System Cost
Pool Operating Costs.
C. 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:
1. 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.
8.7 The costs in cost pools shall be allocated to Cascade as follows:
A. Allocation of Existing Supply Cost Pool. Cascade shall pay one hundred two percent
(102 of the product of the Cascade Block and the costs in the Existing Supply Cost
Pool divided by the Firm Yield.
B. Allocation of New Sunnly Cost Pool. Cascade shall pay none of the costs in the New
Supply Cost Pool.
C. Allocation of Existing Transmission Cost Pool. Cascade shall pay one hundred two
percent (102 of the product of the Cascade Block and the costs in the Existing
Transmission Cost Pool divided by the Firm Yield.
D. Allocation of New Transmission Cost Pool Cascade shall pay none of the costs in the
New Transmission Cost Pool.
P.,E. Allocation of the Cascade Sub- regional System Cost Pool. Cascade shall pay the
entire costs in the Cascade Sub regional System Cost Pool as outlined in Exhibit VIII.
10
50 -Year Declining Block Water Supply Agreement
8.8 Cascade shall pay the costs of penalties for exceeding the Cascade Block, as defined in
Section 8 9S and any other costs requiring invoice by Seattle within 30 days of invoice by
Seattle. Cascade shall pay the annual costs allocated to Cascade in accordance with
Section 8.7 as follows:
A. Prosnective Cost Estimate. Seattle may conduct a cost estimating study to revise
estimates of the annual costs allocable to Cascade upon 120 days notice to Cascade.
Cascade shall pay Seattle according to the estimated annual costs in such study,
provided that not more than five years has elapsed from the time a study is conducted to
the year in which the estimates from that study are used. Each study shall estimate the
annual costs for not less than the five following years.
B. Statement of Annual Costs. On or before December 1 of each year, Seattle shall
notify Cascade of Cascade's annual cost for the next year. Such annual cost shall be
the sum of the prospective cost estimate determined in accordance with Section 8.8A
and the amount of excess or deficit identified in the most recent cost audit performed in
accordance with Section 8.8D. On or before October 1 of each year Seattle shall
provide Cascade with its best, non binding estimate of the annual cost for the next year.
C. Payment Distribution. On or before the last day of each month, Cascade shall pay
Seattle that portion of Cascade's annual cost for that year, calculated pursuant to
Section 8.8B, according to the following schedule:
January 5%
February 5%
March 6%
April 6%
May 6%
June 12%
July 13%
August 15%
September 13%
October 7%
November 6%
December 6%
Upon 45 days written notice to Seattle, the payment schedule for 2004 only may be as
listed below. In addition to these amounts. Cascade shall include an additional 545.000
in its December 2004 navment as a one time service fee associated for this navment
schedule.
January 0%
February 0%
March 6%
April 6%
11
50 -Year Declining Block Water Supply Agreement
May 8%
June 14%
July 15%
August 16%
September 14%
October 7%
November 7%
December 7%
December payment as a one time service f::
Overdue balances shall bear interest at the rate of 1% per month. In no event shall
Cascade be required to pay Seattle a monthly payment during a year until at least 30
days after Seattle provides Cascade with a statement of annual costs for that year, and
such payments shall not be considered overdue, until 30 days after such statement is
provided to Cascade.
D. Cost Audit. No later than August 1 of each year, Seattle shall provide a statement of
actual costs allocated to each cost pool and other costs and revenues received during the
prior year, which statement shall be audited by an external auditor. In addition,
Cascade may have the statement audited by an external auditor of its choice, solely at
Cascade's expense. This statement shall clearly identify the amount by which
payments made by Cascade during the prior year were in excess of, or insufficient to
meet the actual costs allocable to Cascade for the prior year. This surplus or deficit
shall earn interest at the Rate of Return on Investment, and shall be reduced in
accordance with Section 8.8B. No later than December 31 of the year following the
termination of the contract, any remaining surplus or deficit balance shall be paid in
cash by the party owing the balance to the party to whom the balance is owed.
E. Payment from Gross Revenues. Cascade shall pay the charges out of its gross revenues.
Cascade's payments to Seattle pursuant to this Agreement and payments otherwise
required or provided for by this Agreement shall be maintenance and operation
expenses of Cascade, payable prior to and superior to any charge or lien of any revenue
bond issued by Cascade that are payable from the revenues of Cascade. Cascade shall
establish rates and collect fees and charges for wholesale water service sufficient to pay
for the maintenance and operation of its Water Supply System, including payments to
Seattle, and the principal and interest on any and all Cascade revenue obligations that
constitute a charge against the revenue of Cascade.
F. Emergency Surcharge. In the event of a catastrophe or other extraordinary condition
that requires emergency expenditures to maintain a sufficient water supply, Seattle may
impose an emergency surcharge proportionately on all of its retail and wholesale
customers, including Cascade in order to pay for such expenditures. Any such
emergency surcharge shall be presented to Cascade prior to adoption by Seattle. Seattle
shall consider Cascade's comments but shall nevertheless have the full authority to
adopt the charge.
12
50 -Year Declining Block Water Supply Agreement
8.9 A. Charges imposed for exceeding the Cascade Block, Peak Season or Peak Month
limitations will be determined through the application of multipliers to the Cascade
Volume Charge. The charge for exceeding the Cascade Block, Peak Month or Peak
Season shall be calculated by (1) multiplying the Cascade Volume Charge by the
appropriate factor in the following table, (2) multiplying by the amount of the
exceedance (in MGD) and (3) multiplying by the actual number of days in the year,
Peak Month or Peak Season, whichever is applicable.
Category
1 Annual Average Daily Demand
1 Peak Month Demand
1 Peak Season Demand
Category
1 Annual Average Daily Demand
1 Peak Month Demand
1 Peak Season Demand
ARTICLE IX ADMINISTRATION
50 -Near Declining Block Water Supply Agreement
13
O to 1 MGD 1 >1 to 3 MGD
B. In the event that the Cascade Block, Peak Season or Peak Month limitations are
exceeded in 2 or more years during any consecutive five -year period, the following
charges apply:
0 to 1 MGD
1.0
1.5
1.5
1.1
9.1
3.1
>1 to 3 MGD
1.2
16.7
4.7
>3 MGD
1.2
16.7
4.7
>3 MGD
1.2
16.7
4.7
C. In the event of a charge for exceeding the block occurs in more than one category in
either a single year or in multiple years during any consecutive fiveyear period, only
the category that results in the highest charge will be assessed.
8.10 Except in the case of an emergency, the provisions of Section 8 9 shall be applied
reciprocally to Seattle to calculate credits to Cascade, should Seattle fail to deliver the
Cascade Block as required by this Agreement.
9.1 Seattle shall own and maintain appropriate metering devices to measure the water flowing
from the Seattle Water System to each Point of Delivery. At Cascade's request and sole
expense, Seattle will install and maintain equipment selected by Cascade and approved by
Seattle to transmit signals to recording equipment of Cascade or its Members (located
elsewhere) of the amount of water delivered, as measured by Seattle's meters.
9.2 As of the end of the calendar year immediately following the effective date of this
Agreement and following a change in Cascade Membership through 2011, Seattle shall pro
rate the balances in the Purveyor Balance Accounts among its contract Purveyors (1982
Water Purveyor Contract, Version A or B) and transfer to Cascade the pro rated balance of
each Purveyor that is a Cascade Member, provided that such transfer shall occur only once
for each Cascade Member.
1
9.3 Seattle shall keep full and complete books of accounts for the Seattle Water Supply System
and Seattle's retail distribution system in compliance with current standards required by the
State Auditor. Cascade, at its own expense, may at any time audit Seattle's book of
accounts using the services of a public accounting firm and Seattle shall make the books
and records of the Seattle Water System and Seattle's retail distribution system available to
such auditors during reasonable business hours upon reasonable notice at the place where
such records are normally kept. Seattle shall provide adequate facilities; i.e., room and
workspace, so the audit can be performed. Seattle shall have reciprocal rights to audit
Cascade books and accounts.
9.4 This Agreement shall be interpreted according to the laws of the State of Washington and
the venue for any litigation between the Parties concerning its terms shall be in the
Superior Court of King County at Seattle. The Parties shall be entitled to specific
performance of the terms of this Agreement.
9.5 This Agreement shall inure to the benefit of and be binding upon successors of interest and
assigns of the Parties. Neither this Agreement nor obligations to perform hereunder may
be voluntarily assigned by either Party without the other Party's written consent, which
shall not be unreasonably withheld; provided however, that a change in Cascade's corporate
form; e.g., from interlocal organization to another form of organization authorized by
Washington law, shall not be considered an assignment. Seattle may not convey the Seattle
Water System or its component parts without providing for an assumption of this
Agreement and the obligations contained herein by the conveyee. The Parties do not intend
to confer rights or benefits upon any third party. Only a writing executed by the Parties
may modify this Agreement.
9.6 All notices relating to this Agreement shall be sent to the following addresses, certified
mail, return receipt requested, unless the other Party is previously notified in writing of a
change in recipient or address:
To Seattle:
Director
Seattle Public Utilities
700 Fifth Avenue, 49 Fl.
Seattle, WA 98104
50 -Year Decl inine Block Water Supply Agreement
14
To Cascade:
General Manager
Cascade Water Alliance
1309 114th Ave SE, Suite 300
Bellevue, WA 98004
9.7 If any provision of this Agreement or its application is determined by a court of law to be
illegal, invalid, or void without rendering performance of this Agreement impossible or
infeasible, then the Parties intend that the validity of the remaining provisions of this
Agreement or their application shall not be affected and shall continue in full force and
effect.
9.8 This Agreement is intended to be and is a contract for the purchase and sale of water and
transmission services related to that water and no provision hereof and shall not be
construed to make the Parties partners or joint ventures. Neither Party is the agent of the
other nor shall either Party be held liable for the acts of the other on a theory of agency or
any other representative capacity.
9.9 In the event of default of any provision of this Agreement, 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 non 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 non 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.
9.10 In the event of a default in payment by Cascade, Seattle shall have the right to
compensation from the constituent Cascade Members up to the proportionate share of each
Member's use of the Cascade Block pursuant to thowhich in the first 15 months of the
Agreement shall be established by Exhibit III. and thereafter by the most recent annual
report of' Cascade Member's proportionate use of the Cascade Block. which proportionate
use shall total 100 percent of the Cascade Block which Cascade's annual proportionate
use report shall be completed and delivered to Seattle no later than March 31 of each year.
Each Cascade Member must acknowledge and accept this individual, contingent liability to
Seattle in writing at the time that Cascade enters into this Agreement. Those agencies that
later join Cascade in accordance with Section 3.4A shall convey such written
acknowledgment to Seattle within one month of joining Cascade. Should any Cascade
Member fail to convey such written acknowledgement, Seattle shall have the unilateral
right, upon written notice to Cascade, to reduce the Cascade Block by the amount allocated
to such Cascade Member as set forth in Exhibit III. or by Cascade's most recent annual
proportionate use report. until such written acknowledgement is provided to Seattle.
9.11 Upon entering into this Agreement, or upon later becoming a Cascade Member, each
C iwater utility that is listed in Exhibit III thereby relinquishes its then
existing Seattle wholesale contract and the terms and conditions of that contract shall have
no further force or effect as to those utilities that are or become Cascade Members.
ARTICLE X TECHNICAL COMMITTEE
Technical Committees comprising Seattle staff and other affected parties will address day to day
operational issues related to the Seattle Water System. Finance cost and rate issues will be
addressed independently between the Director of Seattle Public Utilities and the General
Manager of Cascade Water Alliance, or their respective designees as provided for in written
notice to the other. It is recognized that daily operation of the Seattle Water System may require
direct communication between Seattle staff and the staff of the Cascade Members.
ARTICLE XI DISPUTE RESOLUTION
11.1 Cascade and Seattle shall make good faith efforts to resolve by informal discussion any
dispute arising under or in connection with this Agreement. If at any time a Party to a
dispute determines that such informal discussions will not result in a resolution, such Party
may initiate non binding mediation of any dispute arising under or in connection with this
Agreement. Within ten (10) days of receiving written notice of initiation of non binding
mediation by one or both Parties, each Party shall designate in writing not more than five
50 -Year Declining Black Water Supply Agreement
15
(5) candidates it proposes to act as a non binding mediator. The Parties shall within an
additional five (5) days select one of the mediators from either list to serve as mediator.
Should the parties be unable to agree upon a mediator, a mediator shall be chosen from one
of the two lists by the presiding judge of the King County Superior Court at Seattle. Upon
selection of the mediator, the Parties shall use reasonable efforts to resolve the dispute
within thirty (30) days with the assistance of the mediator. The cost of mediation shall be
shared by Cascade and Seattle equally.
11.2 If mediation fails to resolve the dispute within thirty (30) days of selection of the mediator,
the Parties may thereafter seek redress in court.
11.3 Pending the decision in any mediation or litigation process pursuant to this section, the
Parties to such process shall continue to fulfill their respective duties under this Agreement.
ARTICLE XII EMERGENCY EVENTS
The Parties recognize that unforeseen and unavoidable events may occur which would require
Seattle to act unilaterally for what it deems to be in the best interest of the general public served
by the Seattle Water System; including water shortages resulting from drought circumstances
and temporary reduction in water supply associated with turbidity events. Upon the occurrence
of an unforeseen or unavoidable event, Seattle shall, to the extent practicable, treat its wholesale
and retail customers equally and any curtailment of supply shall be imposed proportionately
among those customers. This authority to act unilaterally carries with it a unilateral responsibility
of Seattle to restore, expeditiously, the Seattle Water System to its pre- emergency capability to
supply the region.
4449e= :r_ =foreseen c_ Didablc cv nt that adversely impacts the :'e
Wat r System. Cascade may r oucst S attic m difv r sus end provisions fthis Acreem nt and
Seattle -shall make 'plc cff rts to Grant such request. Cascade will aot o_ no to
rest re the Cascade Water Svst m t its pre emcrzcncv capability.
The time periods for Seattle's both parties' performance under any provisions of this Agreement
shall be extended for a reasonable period of time during which Seattle's performance is
prevented, in good faith, due to fire, flood, drought, turbidity events, earthquake, lockouts,
strikes, embargoes, acts of God, war and civil disobedience. If this provision is invoked, Seattle
agrees to immediately take all reasonable steps to alleviate, cure, minimize or avoid
the cause preventing such performance.
ARTICLE XIII EXHIBITS
Exhibits I through VIII are attached hereto and are hereby incorporated by reference into the
Agreement as if set forth in full herein.
ARTICLE XIV COMPLETE AGREEMENT
This Agreement represents the entire agreement between the parties concerning the subject
matter hereof. This Agreement may not be amended except as provided in Section 9.5.
50 Year Declining Block Water Supply Agreement
16
BY: DATE:
CHAIR, BOARD OF DIRECTORS
B DATE:
DIRECTOR, SEATTLE PUBLIC UTILITIES
SIGNATURE PAGE
THE CITY OF SEATTLE, a municipal corporation
THE CASCADE WATER ALLIANCE, a nonprofit corporation
50 -Year Declining Block Water Supply Agreement
18
Other Agreements
A. List of documents, commitments, adjustments, reductions, agreements, and/or written
approvals by Seattle regarding the supply, purchase and/or resale of water according to
Section 4.4 of this_Agreement:
1. Intertie Agreements:
2. Independent Well Sources:
2.
3.
a.
Entity/location
Meter
Size
Capacity
3. -Water Sunnlv Contracts To Other Water Utilities:
Type of Comment
Service
EXHIBIT I
13. List of electric contracts for Hump stations owned and operated by Cascade Members and
connected to the Tolt Eastside Sunnis/ Line according to Section 8.6.B.3 of this Agreement:,
19
5O -Year Declining Block Water Supply Agreement
EXt4Ithh it
C GRADIENTS, AND MAXIMUM
MINIMUM HYDRAUL ELIV FLOW RATES OF WATE M RYDRAULIC iATE UP T O W
POINTS OF DELIVERY,
FLOW RTE M NINTH H M
G RADIENT FOR X1M INIMU
METER SERVICE PIPELINE SIZE OF PLANNING METER ES AT
I
UPSTREAM OF GRADIENT APPLICS
STATION SEGMENT METER STATION ENT t.l
t METER
LOCATION NUMBER n IN.) (FEET NA Datum)
al NEMBER VD -88
Bellevue ("Redmond
132 3 Ave. SE SE 26th Street
12 8 Ave. SE Newport Way
Mercer Is. Pipeline 108th Ave. SE
134'" Ave. NE NE 24 Street
140th Ave. NE 40 Street*
132`g Ave. NE &PIE 14 St.
132 a Ave. NE NE 24 Street
152m Ave. NE NE a Street
145 Pl. SE SE 28 Street
Kirkland 1 Redmond
132n6 Me. NE NE 113th Street
132' Ave. NE NE 85 Street
140th Ave. NE NE 70 Street
59
56
66
64
65
62
63
61
58
74
75
72
.8
reement Cascade Comments December 10, 2002
25 Year Mock
Water Supply A@
.8
.9
.1
.1
.1
.1
.1
.1
8
8
8
8
10
10
10
10
12
.1 10
.1 10
.1 I 10
20
415
425
410
475
520
505
475
485
500
545
535
530
M3reer Island
Notes:
(1)
METER SERVICE
LOCATION STATION PIPELINE
NUMBER SEGMENT
(2) NUMBER(»
Redmond
4.4814' Ave. NE NE 80 Street
NE 104 Street
NE 172' Street (nlanned new location)
Tri loev Parkway
Trilouv Parkway (nlanned additional meter)
Skyway
Beacon Ave. S S 128`" Street
84 Ave. S S 134 Street
Tukwila
Beacon Ave. S S Leo Street
E. Marginal Way S. 112 Street
4
1
6
7
.12
.12
.12
.15
25 Year Block 21
Water Supply Agreement Cascade Comments December 10, 2002
SIZE OF
METER
ON.)
6
6
4
6
MINIMUM HYDRAULIC
GRADIENT FOR
PLANNING PURPOSES AT
STATION UPSTREAM OF
METER
(FEET NAVD -88 Datum)
445
455
445
435
TOTAL:
MAXIMUM FLOW
RATE UP TO WHICH
THE MINIMUM
HYDRAULIC
GRADIENT APPLIES
(gpm) (2)
CWA
Existing Purveyors 30.28 41.02 51.23
Bellevue 17.67 1.35 a, b 23.85 1.70 f, b 30.04
Kirkland 4.40 1.35 a, b 5.94 1.70 f, b 7.48
Redmond 4.56 1.35 a, b 6.16 1.70 f, b 7.75
Skyway 0.48 1.12 a, c 0.54 1.32 t, c 0.63
Tukwila 3.17 1.43 a 4.53 1.68 f 5.33
New Purveyors 0.00 0.00 0.00
Covington 0.00 1.24 a 0.00 1.45 e 0.00
Issaquah 0.00 1.24 e 0.00 1.45 e 0.00
Sammamish Plateau 0.00 1.24 e 0.00 1.45 e 0.00
NON CWA
EXHIBIT III
BLOCK ALLOCATIONS BY INDIVIDUAL WATER UTILITIES
As Measured at the Meter Net of 2% Transmission Losses)
weak Peak Peak eleak
Annual Season Season Month Month
Block Factor Block Factor Block
30.3 41.0 51.2
Existing Purveyors 42.38 54.86 68.30
Bothell 1.62 1.42 a 2.30 1.78 g 2.88
Cedar River 2.83 1.45 a 4.10 2.08 f 5.89
Coal Creek 0.94 1.42 a 1.33 1.90 f 1.79
Duvall 0.83 1.34 a 1.11 1.66f 1.38
Edmonds 0.00 1.00 0.00 1.00 0.00
Highline 6.89 1.22 a 8.41 1.45 f 9.99
Mercer Island 2.15 1.44 a 3.10 1.86 f 4.00
Northshore 6.05 1.31 a 7.93 1.64 f 9.92
Olympic View 1.02 1.14 a 1.16 1.53 f 1.56
Shoreline 1.91 1.24 a 2.37 1.55 f 2.96
Soos Creek 4.62 1.17 a 5.41 1.27 f 5.87
Woodinville 5.57 1.42 a 7.91 1.84 f 10.25
WD 20 2.73 1.22 a, d 3.33 1.47 f, d 4.01
WD45 0.30 1.22 0.37 1.47f,d 0.44
WD 49 1.39 1.22 a 1.70 1.39f 1.93
WD85 0.11 1.22a, 0.13 1.47f, 0.16
WD 90 0.93 1.27 a 1.18 1.67 f 1,55
WD 119 0.42 1.16 a 0.49 1.62 f 0,68
WD 125 2.07 1.22 a, d 2.53 1.47 f, d 3.04
Notes: a. Based on water purchased from Seattle In 1998, which was the year in the period from 1994 to 2000 with the
highest total system peak season factor. Billing data from May 22 -Sept 22, 1998, was used to compute the
factors.
b. Total average peaking factor for Bellevue, Kirkland and Redmond, since Redmond purchases Seattle water from
Bellevue and Kirkland.
c. Based on total from Bryn Mawr and Skyway, which merged in 2001.
d. Total average peaking factor for W.D. 20, 45, 85, and 125, since these water districts operate as a consortium.
e. System average
f. Based on water purchased from Seattle in 1998, which was the year In the period from 1994 to 2000 with the
highest total system peak month factor. Demand Metering data and Allocation Factor calculations for
July 17- August 15, 1998, was used to compute the factors.
9. Because of possible metering errors during the peak month for Bothell in 1998, peak month factor is based on
August purchases from Seattle in 2000.
i0 -Year Declining Blnrk Water Supply Agreement
YY 23
SO -Near Declining Rlnck Water Supply Agreement
Seattle Supply System Facilities
24
EXHIBIT IV
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 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 Supply System only to the extent of SPU share or responsibility.
Tolt Treatment Facility
3. Highline Wellfield
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, 2003
Commercial Incentive Program through December 31, 2003
Commercial Toilet Retrofit Program through December 31, 2003
Showerhead retrofit Program through December 31, 2003
The Seattle Forecasting Model (SEAFM Model)
GIS Projects related to facilities identified herein as part of the Seattle Supply System
Seattle Transmission System Facilities
EXHIBIT V
1. Pipelines
Tolt Pipeline No. 1 from the outlet of the Tolt Treatment Facility (TIT) to Lake Forest
Reservoir, including any transfer and ancillary small diameter parallel pipes (Note:
Includes TPL1 and TPL2 between the Reg. Basin and TTF in Supply!)
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 16 ST and
145 Place SE)
Tolt Eastside Line Extension (from the intersection of SE 16 ST and 145 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 the intersection of 18 Avenue E and
E. Prospect Street
Cedar River Pipeline No. 2 from Control Works to the intersection of 12 Avenue E. and
E. Olive Street
Cedar River Pipeline No. 3 from Control Works to the intersection of 18 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 16 St and
145 Place SE)
West Seattle Pipeline from Augusta Gatehouse to Cedar River Pipeline 4
The 8 Avenue S. Pipeline between S. 146th Street and S. 160 Street
The Bow Lake Pipeline (between 8 Avenue S. and CRPL 4, and as relocated outside
runways at Seatac Airport)
The Burien Feeder (in S. 146 Street between 8 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
50 -Year Declining Block Water Supply Agreement
25
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
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
Eastgate Pump Station
The cost of upgrades and replacements of nurvevor tan and meter installations incurred prior to
January 1. 2004 shall be part of the Regional Transmission System. All capital costs of purveyor
tap and meter installations incurred on or after Jannary 1 2004 shall not be part of the Regional
Transmission System except as specified in Section 8.4A. Commencing on January 1. 2004. the
capital cost of purveyor tan and meter installations shall be borne by the purveyor served by the
installation regardless of the cause for the improvements (except as noted in Section 8.4A)
provided that such cause is consistent with AWWA and safety standards and practices.
The facilities include the appurtenances to the transmission lines including but not limited to
rights of way, line valves, system meters and remote automation devices.
50 -Year Declining Block Water Supply Agreement
26
Supply
Program
Communications
Audit Accounting
Watershed Management
Watershed Management
Watershed Management
Watershed Management
Watershed Management
Watershed Management
Watershed Management
Watershed Management
Watershed Management
Watershed Management
Watershed Management
Watershed Management
Watershed Management
Watershed Management
Watershed Management
Watershed Management
Watershed Management
Watershed Management
Watershed Management
Watershed Management
Watershed Management
Watershed Management
Watershed Management
Watershed Management
Watershed Management
Watershed Management
Watershed Management
Watershed Management
Watershed Management
Watershed Management
Watershed Management
Watershed Management
Watershed Management
Watershed Management
Watershed Management
Watershed Management
Watershed Management
Watershed Management
Watershed Management
Cost Centers Used for Operations Cost Indices
The following costs centers or successor cost centers that capture the direct costs of operation of
Existing Supply Facilities, Existing Transmission Facilities and the 1% Program shall be used as
the indices for operations cost in the Existing Supply Cost Pool, Existing Transmission Cost Pool
and for the 1% Program in the New Supply Cost Pool.
Project
N1203
N3303
N5401
N5401
N5401
N5401
N540I
N5401
N5401
N5403
N5403
N5403
N5404
N5404
N5404
N5404
N5405
N5405
N5405
N5406
N5406
N5406
N5406
N5407
N5407
N5408
N5408
N5409
N5409
145409
145409
N5410
N5410
N5410
N5410
N5410
N5411
N5411
N5411
N5412
N5412
Project Name
Communications Activity Group
Customer Audit
Program Management
Program Management
Program Management
Program Management
Program Management
Program Management
Program Management
Support Services
Support Services
Support Services
Watershed Protection
Watershed Protection
Watershed Protection
Watershed Protection
Facility Management
Facility Management
Facility Management
Watershed Road Maintenance
Watershed Road Maintenance
Watershed Road Maintenance
Watershed Road Maintenance
Watershed Operations Support
Watershed Operations Support
Water Quality Hydrology
Water Quality Hydrology
Public /Cultural Programs
Public/Cultural Programs
Public/Cultural Programs
Public/Cultural Programs
Wildlife Fisheries Programs
Wildlife Fisheries Programs
Wildlife Fisheries Programs
Wildlife Fisheries P...
Wildlife Fisheries Programs
Resource Information Mgmt
Resource Information Mgmt
Resource Information Mgmt
Special Projects
Special Projects
_27_
EXHIBIT VI
Activity
N120304 Purveyor Relations
N330303 Purveyor Audit
N540194 Department Support
14540195 General Expense
N540196 General Management
N540197 Training
N540198 Safety
N540199 Personnel
N540289 Capital Purchase
N540301 Modified Duty
N540302 Procuring/Paying/Receiving
N540303 Vehicle Equipment Downtime
N540401 Hydrological Data Collection
N540402 Fire Protection
N540403 Inspection
N540404 Boundaries
N54050I WS Grounds
N540502 WS Buildings
14540503 WS Facilities Roads
N540601 Grade/Gravel/Ditching
N540602 Bridges/Streams Culvert
/4540603 Roads/RowNegetation Cutting
/4540604 Tolt Roads Streams
14540701 Veh/Equipment Management
N540702 Veh/Equip/Tool Repair
N540801 Water Quality Monitoring
N540802 Hydrological Monitoring
14540901 Recreation Planning
N540902 Management Research
N540903 Watershed Education
N540904 Watershed Public Information
N541001 Program Planning Evaluation
14541002 Interagency/Public Involvement
N541003 Ecological Monitoring Research
N541004 Habitat Species Inventory
N541005 Habitat Enhancement/Restoration
N541101 Program Plan/Evaluation
/4541102 Information Maintenance
N541103 Information Services
N541202 Silviculture
N541205 Land Exchanges/Acquisitions
Program
Watershed Management
Watershed Management
Watershed Management
Watershed Management
Watershed Management
Watershed Management
Watershed Management
Watershed Management
Watershed Management
Watershed Management
Watershed Management
Watershed Management
Watershed Management
Watershed Management
Watershed Management
Watershed Management
Watershed Management
Watershed Management
Watershed Management
Watershed Management
Watershed Management
Watershed Management
Watershed Management
Water Quality Supply
Water Quality Supply
Water Quality Supply
Water Quality Supply
Water Quality Supply
Water Quality Supply
Water Quality Supply
Water Quality Supply
Water Quality Supply
Water Quality Supply
Water Quality Supply
Water Quality Supply
Water Quality Supply
Water Quality Supply
Water Quality Supply
Project Project Name
N5415 Cedar HCP
N5415 Cedar HCP
N5415 Cedar HCP
N5415 Cedar HCP
N5415 Cedar HCP
N5415 Cedar HCP
N5415 Cedar HCP
N5415 Cedar HCP
N5415 Cedar HCP
145415 Cedar HCP
N5416
N5416
N5417
N5418
145418 Cedar HCP
Cedar HCP
Cedar HCP
Cedar HCP
Cedar HCP
N5418
145418
N54I8
N5418
N5418
N5503
N5503
145503
N5503
N5503
145503
N5503
N5504
N5504
N5504
N5505
N5505
N5505
N5506
Cedar HCP
Cedar HCP
Cedar HCP
Cedar HCP
N5418 Cedar HCP
N5418 Cedar HCP
N5418 Cedar HCP
Cedar HCP
Water System Operations
Water System Operations
Water System Operations
Water System Operations
Water System Operations
Water System Operations
Water System Operations
/45503 Water System Operations
Water System Analysis
Water System Analysis
Water System Analysis
Surface Water Trtmnt Rule
Surface Water Trtmnt Rule
Surface Water Trtmnt Rule
Total Coliform Rule Compl.
28
Activity
N541501 ASSESS OF EXPAND FOREST
STAND
N541502 ASSESS EXPAND FOREST
ATTRIBUTE
N541503 AUGMENT FOREST HABITAT
INV
14541504 LONG -TERM FOREST
HABITAT
14541505 OLD GROWTH
CLASSIFICATION
N541506 RIPARIAN RESTOR PROJECT
MONIT
N541507 UPOLAND FOREST RESTOR
PROJ MONT
N541515 GIS DATA COMPATIBILITY
STUDY
N541516 FOREST HABITAT MODELING
/4541517 SPECIE HABITAT RELATION
MODEL
N541601 CRHCP GIS SUPPORT
N541603 CRHCP TECHNICAL SUPPORT
N541701 ROAD MAINTENANCE
N541801 EXPERIMENTAL STREAM
MONITORING
N541802 LONG -TERM STREAM
MONITORING
N541803 AQUATIC RESTORATION
MONITORING
N541804 BULL TROUT SURVEYS
(ADULT)
N541805 BULL TROUT SPAWNING
SURVEY
N541806 BULL TROUT FRY /JUVENILE
SURVEY
Riparian Zone Studies
N541809 BULL TROUT STREAM
DISTRIBUTION
14541810 BULL TROUT REDD
INUNDATION STU
N541811 COMMON LOON MONITORING
N550301 Water Management
N550302 Water System Control
N550303 Anadromous Fishery Mgmt
N550304 SCADA Management
N550305 Highline Well Field
N550306 Morse Lake PS
N550307- SAFETY PROCESS MGMT
COMPLIANCE
N550308 -EPA RISK MGMT
COMPLIANCE
N550401 Eng Analysis/Modeling
N550402 Water Rights Mgmt
N550403 DEMAND METERING
N550501 Monitoring, Reporting Admin
14550502 Cholrination Facilities O &M
14550503 Watershed Management
N550601 Monitoring, Reporting Admin
Program
Water Quality Supply
Water Quality Supply
Water Quality Supply
Water Quality Supply
Water Quality Supply
Water Quality Supply
Water Quality Supply
Water Quality Supply
Water Quality Supply
Water Quality Supply
Water Quality Supply
Water Quality Supply
Water Quality Supply
Water Quality Supply
Water Quality Supply
Water Quality Supply
Water Quality Supply
Water Quality Supply
Water Quality Supply
Water Quality Supply
Water Quality Supply
Water Quality Supply
Water Quality Supply
Water Quality Supply
Water Quality Supply
Water Quality Supply
Water Quality Supply
Resource Planning
Project
N5508
145508
N5509
N5510
N5510
N5510
145510
N5510
N5510
145511
N5512
N5513
145513
145513
145513
N5513
N5514
Project Name
Lead Copper Rule Compl.
Lead Copper Rule Compl.
Fluoridation Program
Other Reg Comp/Monitoring
Other Reg Comp/Monitoring
Other Reg Comp/Monitoring
Other Reg Comp/Monitoring
Other Reg Comp/Monitoring
Other Reg Comp/Monitoring
Special Projects
Cedar HCP
Cedar HCP
Cedar HCP
Cedar HCP
Cedar HCP
Cedar HCP
WQ Monitoring
N5515 HCP Fisheries
145515 HCP Fisheries
145515
N5515
N5515
145515
HCP Fisheries
HCP Fisheries
HCP Fisheries
HCP Fisheries
145515 HCP Fisheries
145515 HCP Fisheries
N5516 Tolt DBO
N5516 ToltDBO
N5609 Water Resource Habitat I
29
Activity
N550801 Monitoring, Reporting Admin
14550802 Corrosion Trtmnt Facil O &M
N550901 Fluoridation Program O &M
N551001 Otr Reg/Operational Analysis
N551002 Disinfection By- Product Rule
14551003 Limnology
N551005 WQ Lab
N551006 DW Reg Dev App Research
N551007 Public Information/Notification
14551104 LIMS QA/QC
N551201 INTERIM CHINOOK COHO
/4551301 HCP STREAMFLOW GAUGING
N551302 SWITCHING CRITERIA STUDY
/4551303 STEELHEAD REDD
MONITORING
14551304 CHINOOK STUDIES
Salmonid Studies
N551403 DRINKING WATER QUALITY
MONITOR
/4551501 FRY CONDITION AT RELEASE
14551502 FRY MARKING
EVALUATION
/4551503 FRY TRAPPING COUNTING
N551504 FISH HEALTH
14551505 SHORT -TERM FRY REARING
N551506 LAKE WASHINGTON
PLANKTON STUDY
14551508 ADULT SURVIVAL
DISTRIBUTION
14551509 PHENOTYPIC GENETIC
STUDY
N551601- CONTRACTOR PAYMENTS
14551603- MANAGEMENT COSTS
sues N560903 -ESA
Transmission
Program Project
Water Operation N6540
Water Operation N6540
Water Operation N6541
Water Operation N6541
Water Operation N6542
Water Operation N6542
Water Operation N6543
Water Operation N6543
Water Operation N6543
Water Operation N6543
Water Operation N6543
Water Operation N6543
Water Operation N6543
Water Operation N6543
Water Operation N6543
Water Operation N6544
Water Operation N6544
Water Operation N6545
Water Operation N6546
Water Operation N6546
Water Operation N6547
Water Operation N6548
Water Operation N6549
Water Operation N6549
Water Operation N6549
Water Operation N6549
Water Operation N6549
1% Program
Program
Community Services
Project Name
WT Headwork/Storage
WT Headwork/Storage
WT Transmission Pipeline Maint
WT Transmission Pipeline Maint
WT Value Op/Maint Water Tran
WT Value Op/Maint Water Tran
WT Grounds/Roads/ROW
WT Grounds/Roads/ROW
WT Grounds/Roads/ROW
WT Grounds/Roads/ROW
WT Grounds/Roads/ROW
WT Grounds/Roads/ROW
WT Grounds/Roads/ROW
WT Grounds/Roads/ROW
WT Grounds/Roads/ROW
WT Facility Maintenance
WT Facility Maintenance
WT Castings
WT Customer Services
WT Customer Services
WT Damage by Others
WT Transmission Shops
WT General Expenses
WT General Expenses
WT General Expenses
WT General Expenses
WT General Expenses
Project Project Name
30
Activity
N654001 Program Maintenance
N654002 Event Driven Repairs
N654101 Program Maintenance
N654102 Event Driven Repairs
N654201 Program Maintenance
N654202 Event Driven Repairs
N654301 Grade/gravel roads P
N654302 Grade/gravel roads E
N654303 Bridges/culverts P
N654304 Bridges/culverts E
N654305 Fences/gates P
N654306 Fences/gates E
N654307 Mow ROW P
N654308 Mow ROW E
N654309 Mow Other
N654401 Program Maintenance
N654402 Event Driven Repairs
N654501 Casting Adjustments
N654601 Communications/Dispatch
N654602 Locating/Marking
N654701 P/L/ROW/Facility
N654801 Shops/Fabrication
N654905 Tools/small equipment
N654906 Standy
N654907 Truck Inventory
N654908 Downtime Job Related
N654909- DISASTER -EMERG
RESPONSE
Activity
N5303 Resource Conservation N53030I 1% Conservation
Cascade Sub- regional System
EXHIBIT VII
The facilities included in this Exhibit incorporate all appurtenances including but not
limited to rights of way. line valves. system meters. and remote automation devices.
Facilities used by Cascade:
The NE 8 Street Feeder, from the Cedar Eastside Supply Line to the Bellevue pump
station near the intersection of 151 PL NE and NE 8 Street
The Bel -Red Road Feeder, from the Cedar Eastside Supply Line to the Bellevue
Point of Delivery at the intersection of Bel -Red Road and 132 Ave NE
The NE 24 Street Feeder, from the Cedar Eastside Supply Line to the Bellevue
Point of Delivery near the intersection of NE 24 Street and 132 Ave NE
The 326 zone feeder in West Marginal Way from the West Seattle Pipeline to the
Tukwila Point of Delivery at '-'==:4:7
Tukwila spurs
AN -rne__ _'tc. etc. for Cascade P ints of Delivers
Eastside Sub- regional Transmission Facilities shared by Cascade:
SEGMENT 1 Includes use by Bellevue, Coal Creek.. Mercer Island. and Seattle
The Portion of the of the original Mercer Island Pipeline from the tee off the Cedar
Eastside Supply Line in Factoria Boulevard SE to the west flange of the main line tee at
the east end of the 16 -inch Mercer Slough Bridge Pipeline (30- inchl.
SEGMENT 2 Includes use by Bellevue, Mercer Island. and Seattle
1. The portion of the of the original Mercer Island Pipeline from the west flange of the
main line tee at the east end of the 16 -inch Mercer Slough Bridge Pipeline to the west
flange of the 20 -inch valve west of the Enatai service to Bellevue (30- inchl.
2. The entire 16 -inch Mercer Slough Bridge Pipeline (16- inchl.
New. ungraded or replaced tan and meter installations shall not be part of the Cascade
Sub regional Transmission Facilities. The cost of such imnrovements shall he borne by
the wholesale customer served by the installation regardless of the cause for the
imnrovements nrovided that such cause is consistent with AWWA and safety standards
and practices.
Seattle may from time to time eliminate facilities from this list provided that it secures
the written consent of Cascade in the event that Cascade is served by a tap or meter
installation on the facility being eliminated. Seattle shall provide Cascade with 180 days
prior written notice of any proposed change
31
EXHIBIT VIII
Allocating Costs and Setting Rates for Cascade Sub region
In any year. Cascade Sub regional Customer means a Cascade Member that is served in
whole or in part by a tap or meter installation from a facility listed in Exhibit VII or
successor (replacement) facility.
For those facilities within the Eastside Sub regional System listed in Exhibit VII. costs
will be allocated annually based on consumption by each party within each segment.
Costs will be allocated based on Peak 7 Dav flows through each facility segment. In the
event that Peak 7 Dav flow data is not available. Peak Month flows may be substituted.
Cascade's allocation of Eastside Sub regional System costs shall be based on the flows of
Cascade Sub regional Customers.
Cascade will be allocated 100% of the costs associated with all other facilities listed in,
Exhibit VII.
All Cascade Sub region costs shall be added to and billed with other annual Cascade
costs consistent with Sections 8.8 B &C. and trued consistent with Section 8.8D.
32
U J l/ Committee chair approval
Utilities Committee
SJuly 8, 2003
Page 2
4. Cascade Water Alliance !Iodate After many months of wrangling between CWA and
City of Seattle over a block contract, the two agencies have agreed on a 50 year declining
water block. The amount of water CWA gets from Seattle will continue for 50 years, but there
will be less water from Seattle each year of the contract. The CWA has other issues, too, such
as buying the Bellevue/Issaquah pipeline, getting Lake Tapps water rights, getting an
agreement to buy water from Tacoma, a "wheeling" agreement with Seattle for use of their
pipes, and a budget for next year. Whether to pursue CWA as our major water supplier in
future years instead of Seattle is a very big decision. Pam L said she appreciated that even
though we've been in CWA for four years she appreciated that the city could still decide that
was not a good option for us for future water. Much depends on estimating the stability of
CWA's future water resources, or Seattle's willingness to serve outside the city of Seattle.
There is not a clear answer to these questions, so it's an estimate on anyone's part.
Recommend issue and Agreement to COW.