HomeMy WebLinkAbout07-059 - King County - Sewage Disposal Agreement and AmendmentCITY OF TUKWILA
KING COUNTY
AMENDMENT TO AGREEMENT FOR SEWAGE DISPOSAL
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THIS AGREEMENT made as of the 9 i' jJ
day of 0, i 2007 between
the City of Tukwila, a municipal corporation of the State of Washington (hereinafter referred to
as "the City and King County, a political subdivision of the State of Washington (hereinafter
referred to as "the County
WITNESSETH.
WHEREAS, the City and the County have entered into a long term agreement for sewage
disposal dated October 1, 1966 as amended and previously extended (hereinafter referred to as
the `Basic Agreement and the County has proposed certain changes to, and a second extension
of, the Basic Agreement; and
WHEREAS, the extension of the Basic Agreement will ensure that the County is able to
obtain the most favorable bond financing terms for necessary improvements to the region's
wastewater treatment system and will therefore ensure the lowest possible sewer rates and sewage
treatment capacity charges for the system's ratepayers, and
WHEREAS, the City concurs that said proposed changes and extension are in the best
interest of the parties and the citizens of the Metropolitan Area,
NOW, THEREFORE, IT IS HEREBY AGREED AS FOLLOWS
Section 1. Amendment of Basic Agreement— Section 5.3. Section 5.3 of the Basic
Agreement is hereby amended by adding the following new subparagraph d)
"d) An additional charge may be made to recover unforeseen costs to operate and
maintain the metropolitan sewerage system or meet debt requirements if the county executive
declares and the county council by a supermajority vote (two thirds of members) finds that an
emergency exists and the system cannot be adequately maintained, and debt requirements or debt
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policies met, without such additional charge The additional charge shall then be effective no
earher than the first day of the fourth month following the emergency declaration described in
this subparagraph 3 d) and shall be billed and collected in the same manner as the monthly rate
referenced in subparagraph 3.c) The additional charge described in this paragraph 3 d) may be
incorporated into the next rate setting cycle but will otherwise terminate within twelve months of
the date approved. The additional charge described in this subparagraph 3.d) shall not be made
until and unless it also conforms to the sewage disposal agreements with all remaining
Participants."
Section 2 Amendment of Basic Agreement— Section 5.4 Section 5 4 of the Basic
Agreement is hereby amended to read as follows.
"4 The County shall impose a charge or charges (hereinafter the capacity charge) directly
on the future customers of a Participant for purposes of paying for capacity in Metropolitan
Sewerage Facilities. The proceeds of the capacity charge shall be used only for capital
expenditures or defeasance of outstanding revenue bonds prior to matunty The capacity charge
shall be set at a level to ensure that, in combination with the monthly sewer rate described in
subsection 3 above, 95% of the costs incurred to provide the wastewater conveyance, treatment
and biosolids capacity to serve new customers are recovered from new customers.
The City shall, at the County's request, provide such information regarding new
Residential Customers and Residential Customer Equivalents as may be reasonable and
appropriate for purposes of implementing the capacity charge
Section 3. Amendment of the Basic Agreement —New Section 18 A new Section 18 is
added to the Basic Agreement as follows.
"Section 18. Future Amendments. The City agrees to amend and hereby concurs in any
amendment to this agreement which incorporates any changes in the terms for sewage disposal
and payment therefor as may be proposed by the County and agreed to by those Participants that
shall represent, in total, not less than 90% of the residential customers and residential customer
equivalents then served by the Metropolitan Sewerage System and 90% of the Participants."
Section 4. Amendment of Basic Agreements with other Participants. If the Basic
Agreements with any other Participants are amended or otherwise modified to include terms,
conditions, or provisions not included in this amendment, the City shall have the option of
incorporating said terms, conditions or provisions into its Basic Agreement. The County shall
then expedite and approve any amendments to the Basic Agreement as may be necessary and
appropriate for such purpose
Section 5. Extension of Basic Agreement. The Agreement for Sewage Disposal between
the City of Tukwila and King County dated October 1, 1966, as amended, is hereby extended for
a penod of twenty years and shall continue in full force and effect until July 1, 2056 The
agreement dated October 1, 1966, as subsequently amended and extended shall constitute the
entire Agreement for Sewage Disposal between the parties
IN WITNESS WHEREOF, the parties have executed this agreement as of the day and
year first written above, said agreement to be effective upon execution.
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