HomeMy WebLinkAboutCOW 2011-11-28 Item 4J - Contract Amendment - Cascade Water AllianceCOUNCIL AGENDA SYNOPSIS
CAS NUMBER:
AGENDA ITEA2 TI
CATEGORY Discussion
Initials
Meeting Date Prepared by I I Mayor's review
11/28/11 I BG l/1/,�
12/05/11 BG�
ITEM INFORMATION
STAFF SPONSOR: BOB GIBERSON
Council review
U N
ITEM NO.
4.J.
ORIGIN.ALAGE DA'Z'E: 11/28/11
Cascade Water Alliance Interlocal Contract Amendment
Motion Resolution Ordinance Bid Award Public Hearing ❑Other
Mtg Date 11128111 17tg Date 12/09111 Mtg Date Mtg Date Mfg Date Mtg Date Mtg Date
SPONSOR Council Mayor HR DCD Finance Fire IT P &R Police PW
SPONSOR'S Cascade Water Alliance's (CWA) forecasts anticipated the region's growth, but now with
SUMMARY the economic slowdown, the revenue model needs to be updated. The equity redistribution
needs to maintain member parity so costs are more stable. This contract amendment to the
Interlocal shows administrative dues increasing from 5% to 9% of annual revenue
requirements. For Tukwila, CWA administrative dues will increase from $69k to $126k and
the overall rate model shows an increase of 9.4% in 2012.
REVIEWED BY COW Mtg. CA &P Cmte F &S Cmte Transportation Cmte
Utilities Cmte Arts Comm. Parks Comm. Planning Comm.
DATE: 1 1/15/11 COMMITTEE CHAIR: DE'SEAN QUINN
RECOMMENDATIONS:
SPONsoR /ADMIN. Public Works
COMMIT TEE Unanimous Approval; Forward to Committee of the Whole.
EYPENDIT'URI REQUIRED
$0.00
Fund Source: 401 WATER FUND
Comments:
MTG. DATE
11/28/11
12/05/11
COST IMPACT FUND SOURCE
AMOUNT BUDGETED
$0.00
APPROPRIATION REQUIRED
$0.00
RECORD OF COUNCIL ACTION
MTG.DATEI ATTACHMENTS
11/28/11 Informational Memorandum dated 11/18/11 (revised after 11/15 UC)
CWA Letter to Mayor Haggerton dated 11/4/11
CWA Memo Documentation of 2012 Member Charges
Amended and Restated Interlocal Contract
Minutes from the Utilities Committee meetings of 11/15/11
12/05/11 1
291
292
City of Tukwila
Jim Haggerton, Mayor
INFORMATIONAL MEMORANDUM
TO: Mayor Haggerton
UTILITIES COMMITTEE
FROM: Bob Giberson, Public Works Director q4
DATE: November 18, 2011 (Revised after 11115 Utilities Committee meeting)
SUBJECT: Cascade Water Alliance Interlocal Contract Amendment
ISSUE
The Cascade Water Alliance Board has adopted Resolution 2011 -17 to amend the 2004 Amended and Restated
Interlocal Contract. This Contract is to be further ratified by each of the member agencies.
BACKGROUND
The Tukwila Water Utility receives its wholesale water supply as a member of the Cascade Water Alliance (CWA).
The initial Interlocal Agreement was first signed in 1999. Since then Cascade's administrative needs have changed.
Members pay administrative dues based on the number of Cascade Equivalent Residential Units (CERUs) they
serve.
The economic slowdown in the region's growth has affected forecasts anticipated among the growth agencies. This
has caused the revenue from the Regional Capital Facilities Charge (RCFC) to be materially below forecasts. In
response to the overall CWA revenue model, an equity redistribution and reallocation was completed to maintain
member parity so that member costs are more stable and less likely to be affected by future new water surcharges.
DISCUSSION
The Board of Directors of CWA which represents the 8- member agencies has unanimously voted to make changes in
the Interlocal Agreement. Section 4.7 of the Amended and Restated Interlocal Contract (second paragraph) is to be
amended in the following format:
Each Member must pay annual dues to defray part or all of Cascade's administrative costs based on the number
of CERUs served by its water system, regardless of water usage or capacity, and regardless of whether those
units are served by the Supply System or by Independent Supply. Total administrative dues collected from all
Members may not exceed the greater of $1,000,000 oF 5 9% of Cascade's annual revenue requirement less debt
revise This limit may be amended in the budget by a 65% Dual Maioritv Vote of the Board. The Board may
establish minimum annual dues per Member and may provide that less than all of the Member's CERUs be
taken into account in establishing dues.
From the 9% annual revenue requirement and the CERU reallocation, Tukwila's administrative dues will increase
from $69,895.00 to $126,558.00, or an increase of $56,663 (Table 4, page 4, of attached Cascade memorandum).
Adding some perspective, Tukwila's annual expense, including administrative dues, conservation fees, and water
demand charges was $2,010,047.00 in 2011 and will be $2,198,189 in 2012 representing a 9.4% increase.
RECOMMENDATION
The Council is being asked to approve the Amended and Restated Interlocal Contract with Cascade Water Alliance
and consider this item at the November 28, 2011 Committee of the Whole meeting and subsequent December 5,
2011 Regular Meeting.
Attachments: CWA Letter to Mayor Haggerton dated 11 -4 -11
Memo Documentation of 2012 Member Charges
Amended and Restated Interlocal Contract
W: \Shared Copy Only \TC -UC \Info CWA Amended Interlocal 11- 18- 11.docx
293
[P•.I
November 4, 2011
SE 8` "Street Suite 4417 Be3ievue_ VVA 98004
Phone: 425.453.0930 Far.: 425.453.0953
Vvebsiie wwovcascadewate;.org
295
Jim Haggerton
Mayor
City of Tukwila
Board of Directors
6200 Southcenter Boulevard
Chair
Tukwila, WA 98188
Lloyd Warren
Comm =ss one- Sammamish
PiateaL
Dear Mayor Haggerton:
Ijater Sev fer District
Vice chair
At its regular meeting on October 26, 2011, the Board of Directors of the Cascade
John r ar Redmond
r ?ayor: City of Rst,tf
Water Alliance unanimous) adopted Resolution No. 2011 -17 for the u ose of
y p purpose
adopting an Amended and Restated Interlocal Con tract. A copy of the Board's
ecretaryr`Treasurer
Jinn Haggerton
approval Resolution is enclosed.
Ilklayor, City of Tukwila
Grant Degginger
Adoption of the Amended and Restated Interlocal Contract is a two -step process.
Coundimcmber, City of
Once adopted by a 65% Dual Majority Vote of the Board, amendments to the
Bellevue
Interlocal Contract must be ratified by 65 as measured by Dual Majority Vote of
David Knight
the Members' legislative authorities, within one hundred and twenty (120) days.
er "m'S'ia "er:
Cev €notch `Nate- District
Cascade relied upon the amended language in establishing its 2012 Rates and
p g
Charges, therefore, we respectfully request that your legislative authorities ratify the
°t r' r`"yer
Cnuncil President, Cit o f
Amended and Restated Interlocal Contract by December 31, 2011.
Issaquah
Penny sweet
Also enclosed for presentation to, and ratification by your legislative body are two
Deputy Mayor, City of
originals of the Amended and Restated Interlocal Contract, dated October 26, 2011,
Kirkland
executed by Cascade. Once your legislative body has acted to ratify the Amended
Jost Ault
and Restated Interlocal Contract, please have both copies executed. Return one
Cormn ssioner, Skyway
W''at{ r Sevver District
executed copy and the resolution or official action of your legislative body
approving the agreement to Cascade. Once Cascade has received all the signature
pages, which are being executed in counterparts, Cascade will send each Member a
fully executed document.
Chief Executive Officer
There are a series of memorandum available that summarize the changes made to
Chuck Clarke
the Amended and Restated Interlocal Contract, as well as other actions taken by the
Board on October 26, 2011, related to Cascade's Rates and Charges. If these
documents would be useful in providing your legislative body with additional
background on the nature of the amendments, please let me know and I will provide
any additional material you require.
SE 8` "Street Suite 4417 Be3ievue_ VVA 98004
Phone: 425.453.0930 Far.: 425.453.0953
Vvebsiie wwovcascadewate;.org
295
296
6�
/,�`e
CA S CA D E MEMORANDUM
WATER ALLIANCE
DATE: October 25, 2011
TO: Cascade Member Agencies
FROM: Ed Cebron, Economist
SUBJECT: Documentation of 2012 Member Charges
A key product of Cascade's budget process is an established set of Member Charges for the upcoming year. With the
adoption of a biennial budget in 2010, the rate setting process for 2012 focuses on introduction of actual 2010 data for
Member customer base and demands. In addition, this summary reflects the results of structural changes in member
charges based on a year -long review of member equity. The charges contained in this summary are based on Board
approval of the recommended package of actions on October 26, 2011 and contingent on subsequent ratification by
Member legislative bodies. The 2012 revenue increase (prior to adjustments) is set at 6.0% by prior Board action. After
adjustments, the year -to -year increase in revenues is 3.2
Cascade Eauivalent Residential Units (CERUs)
Discussed in the Interlocal and the RCFC Methodology, the CERU is one of the key metrics that Cascade uses to allocate
costs to its Members. It is relevant in several ways:
Administrative Dues are based on projected January 1�` CERU counts, and are expressed in terms of a charge per
CERU. Members pay Administrative Dues based on the number of CERUs that they serve. With the package of
member charge revisions, the contractual limit on administrative dues is increased from 5% of revenue
requirements net of debt service to 9% of total revenue requirements. For 2012, the charge is below this limit.
Conservation Charges are also based on projected January 1'` CERU counts, but have historically been
discounted for Members that are not within the 15 -year supply commitment horizon. In 2008, Cascade made
the policy decision to phase out this discounting by 2012. Effective with the 2012 fiscal year, all members make
fully proportional payments toward conservation based on CERU counts. The 2012 Conservation Charge
includes a revision to the applicable costs which derived from the member equity review. Roughly $100,000 of
conservation program salaries were removed from the administrative budget and assigned to the conservation
program for rate setting purposes.
New Water Surcharges expire at the end of 2011, and are not a part of the 2012 member charge structure.
However, reconciliation of historical years continues, with 2012 charges reflecting adjustments based on 2010
usage. This will continue in 2013, with adjustments based on 2011 actual usage. Beginning in 2014, there
would be no further reconciliation adjustments related to New Water Surcharges.
Demand Share Charges are initially based on a rolling three -year demand history and adjusted for CERU growth
occurring between the midpoint of the three -year period and the most recent actual data available. Because
Demand Share Charges account for the majority (roughly 80% to 90 of Cascade's rate revenue, the Rate
Methodology explicitly establishes a Demand Share calculation that is solely based on actual historical data.
Per Table 1 of the RCFC Methodology, CERU counts are based on an inventory of water meters and flow equivalency
factors established by the American Water Works Association. Table 1 summarizes the calculation of CERUs based on
water meter counts as of 12/31/09 and 12/31/10:
297
Table 1: CERU Calculations
Water Meter Size
3/4"
1"
1 -1/2"
2
3
4"
6"
8"
10"
Total Number of Meters
Total Number of CERUs
Water Meter Size
3/4"
1"
1 -1/2"
2
3
4"
6
8"
10"
Total Number of Meters
Total Number of CERUs
1.0
32,648
15,971
5,033
10,659
13,608
2.5
3,529
103
438
1.0
32,692
16,129
5,127
10,712
13,900
14,916
3,144
1,261
97,881
2.5
3,545
105
439
503
808
485
111
268
6,264
5.0
2,149
77
410
519
1,264
752
31
328
5,530
8.0
956
38
264
328
632
133
12
182
2,545
16.0
160
23
24
32
65
22
8
34
368
25.0
80
3
10
10
68
6
0
27
204
50.0
29
0
5
0
11
0
0
18
63
80.0
6
0
0
0
5
0
0
10
21
115.0
1
0
0
0
0
0
0
3
4
1.0
32,648
15,971
5,033
10,659
13,608
2.5
3,529
103
438
516
804
5.0
2,129
76
404
520
1,262
8.0
945
38
262
321
631
16.0
156
18
23
30
63
25.0
77
3
8
10
68
50.0
29
0
4
0
11
80.0
6
0
0
0
5
115.0
1
0
0
0
0
345 1s'2U9 6.T L2.05!i
SPW pY TukW la total
14,771
3,146
1,392
97,228
484
111
315
6,300
750
32
334
5,507
132
11
192
2,532
22
8
36
356
6
0
26
r 198
0
0
18
62
0
0
9
20
0
0
3
4
It is worth noting that the water meter and resulting CERU counts shown in Table 1 reflect several adjustments to the
meter counts reported by Members on the Member Data Form.
Section 2.2 of the RCFC Methodology explicitly states that fire sprinkler and exempt/deduct meters are not
counted as CERUs because they do not increase system demand. Section 2.3 requires Members to report total
connected CERUs to Cascade on a quarterly basis for the purpose of collecting RCFCs for this reason, meters
that are not actually connected to the water system are not counted as CERUs either (they will be counted once
they are connected to the system).
Several Members (Redmond, Sammamish Plateau Water Sewer District, and Skyway Water Sewer District)
reported some combined domestic /fire meters. These meters are generally 1 -inch meters that were oversized
from 3/4 -inch meters to provide fire flow capacity —these meters are included in Table 1 as 3/4 -inch meters and
assigned 1 CERU per meter.
Because the City of Kirkland does not impose charges on irrigation (sprinkler) meters based on meter size, it has
a limited amount of data available regarding the size of its irrigation meters. It was able to develop an
approximate breakdown by size for 12/31/09 based on a sampling of its irrigation meters Table 1 uses the same
proportionality to estimate a breakdown for 12/31/10.
3/4" 230 232
1" 62 63
1 -1/2" 78 79
2" 76 77
Table 2 summarizes the CERU growth projections assumed for 2012:
2
M•:
Table 2: CERU Proiections by Member
Total
The distribution of estimated 2012 growth between Members is broadly based on year -to -date growth through 9
months of 2011, extrapolated to a full year projection. In addition:
The CERU count at the beginning of 2012 reflects a shift of 196 CERUs from Redmond to Kirkland resulting from
an annexation of the Kingsgate area effective June 1, 2011.
Sammamish Plateau has a request in process to serve the Overdale service area, which contains 153 homes. It
is assumed that this service is formally accepted for the 2012 service year. These are added to the District's
total CERUs.
Administrative Dues
Administrative Dues are imposed on Members to recover the various administrative costs that Cascade incurs in its day
to -day operations examples of relevant expenses include salaries and benefits of administrative personnel, office space
rental, and public process. Members pay Administrative Dues annually, according to the number of Cascade Equivalent
Residential Units (CERUs) that they serve and the prevailing Administrative Dues rate per CERU.
The Administrative Dues rate is generally derived for a given year by dividing that year's projected administrative
expenses by the number of CERUs at the end of the prior year (for example, the 2012 Administrative Dues rate is based
on the projected 2011 year -end CERU count, which is assumed to be the same as the CERU count as of January 1, 2012).
Cascade policy imposes constraints on the amount that Cascade can collect in Administrative Dues annual collections
are limited to nine percent of the Member Charge revenue requirement. Given these requirements, Table 3 shows the
derivation of the 2012 Administrative Dues rates:
Table 3: Derivation of 2012 Administrative Dues
AdministMtive Dues Rate Calcula
Projected Administrative Expenses:
CERU Growth Forecast
MGM
r
amm
930,791
Bellevue
66,553
187
0
66,739
Covington WD
17,524
197
0
17,720
Issaquah
11,271
158
0
11,429
Kirkland
17,951
57
196
18,204
Redmond
30,986
318
(196)
31,108
Sammamish Plateau WSD
21,455
205
153
21,813
Skyway WSD
3,801
6
0
3,807
Tukwila
8,291
3
0
8,294
Total
The distribution of estimated 2012 growth between Members is broadly based on year -to -date growth through 9
months of 2011, extrapolated to a full year projection. In addition:
The CERU count at the beginning of 2012 reflects a shift of 196 CERUs from Redmond to Kirkland resulting from
an annexation of the Kingsgate area effective June 1, 2011.
Sammamish Plateau has a request in process to serve the Overdale service area, which contains 153 homes. It
is assumed that this service is formally accepted for the 2012 service year. These are added to the District's
total CERUs.
Administrative Dues
Administrative Dues are imposed on Members to recover the various administrative costs that Cascade incurs in its day
to -day operations examples of relevant expenses include salaries and benefits of administrative personnel, office space
rental, and public process. Members pay Administrative Dues annually, according to the number of Cascade Equivalent
Residential Units (CERUs) that they serve and the prevailing Administrative Dues rate per CERU.
The Administrative Dues rate is generally derived for a given year by dividing that year's projected administrative
expenses by the number of CERUs at the end of the prior year (for example, the 2012 Administrative Dues rate is based
on the projected 2011 year -end CERU count, which is assumed to be the same as the CERU count as of January 1, 2012).
Cascade policy imposes constraints on the amount that Cascade can collect in Administrative Dues annual collections
are limited to nine percent of the Member Charge revenue requirement. Given these requirements, Table 3 shows the
derivation of the 2012 Administrative Dues rates:
Table 3: Derivation of 2012 Administrative Dues
AdministMtive Dues Rate Calcula
Projected Administrative Expenses:
Salaries Benefits
1,001,204
930,791
Professional Services
659,500
647,500
Communications Intergovernmental
727,000
617,000
Office Rent
124,000
126,000
Other Administrative Expenses
219,900
211,900
Operating Budget Contingency
200,000
200,000
Total
2,931,604
2,733,191
Administrative Dues Revenue Cap
1,444,763
2,915,663
Projected CERU Count as of January 1
177,829
179,113
Administrative Cost per CERU
16.49
15.26
Administrative Dues Rate per CERU
The administrative expenses shown reflect a re- assignment of labor costs related to the conservation program out of the
administrative budget, estimated at $100,000.
Table 4 shows the projected 2012 Administrative Dues payment for each Member:
299
Table 4: Proiected 2012 Administrative Dues Pavments by Member
Administ Dues
T
Fig
Bellevue
Covington WD
Issaquah
Kirkland
Redmond
Sammamish Plateau WSD
Skyway WSD
Tukwila
Total
Conservation Charges
539,117
140,921
90,583
146,818
251,439
17S,041
30,949
69,895
1,018,414
270,403
174,395
277,784
474,696
332,855
58,086
126,558
Conservation Charges were introduced in 2005 as a means of recovering the costs of Cascade's conservation program.
Like Administrative Dues, Conservation Charges are imposed on Members on a CERU basis. Table 5 shows the
derivation of the Conservation Charge for 2012:
Table 5: Derivation of 2012 Conservation Charges
Conserva Char Ra Calc ulation
Projected Conservation Expenses:
Bellevue
Salaries Benefits
116,645
220,145
Rebates
825,000
825,000
Fixture Replacement Supplies
90,000
90,000
Audits
30,000
30,000
Communications Public Information
175,000
175,000
Other
46,000
46,000
Total
1,282,645
1,386,145
Applicable Number of CERUs 177,829 179,113
Conservation Charge per CERU
The 2012 conservation expenses reflect the addition of related conservation program labor that had been previously
budgeted under administrative expense.
Given the proposed Conservation Charge rates discussed above, Table 6 shows the projected 2012 payments for each
Member:
Table 6: Proiected 2012 Conservation Charge Pavments by Member
QQnservation Charms
Bellevue
482,150
516,491
Covington WD
116,578
137,136
Issaquah
81,011
88,445
Kirkland
131,304
140,879
Redmond
224,870
240,743
Sammamish Plateau WSD
156,545
168,809
Skyway WSD
27,679
29,458
Tukwila
62,510
64,184
Total
difference in total
due to rounding
New Water Surcharges
The New Water Surcharge expires on December 31, 2011 and does not apply for 2012. However, there remains a
reconciliation adjustment in 2012 and 2013 for all members subject to the New Water Surcharge.
The calculation of New Water Surcharges for a given budget cycle requires an estimate of wholesale water demand for
that year Cascade must reconcile each Member's payments when their actual demand data is available. There is
4
1 1�
generally a two -year lag in this reconciliation. For example, actual 2010 demands were not available until a few months
into 2011- the information is available in time for the 2012 Budget, two years after the 2010 New Water Surcharges
were actually paid. Table 7 reconciles the 2010 New Water Surcharges:
Total 1 11,928,186 1,882,964 1,412,223 2,695,978 (1,283,756)
For 2010, actual demands for Kirkland and Redmond had been adjusted to reflect the transfer of 52 customers in the
Bridle Trails area from Redmond to Kirkland, shifting 5,204 ccf of demand from Redmond to Kirkland. For this
reconciliation, the related data revision was reversed to reconcile actual usage to the appropriate agency.
Demand Share Charges
The Demand Share Charge recovers costs that are not otherwise recovered through the other Member Charges or other
sources of revenue, and is computed by dividing the Demand Share cost basis by the number of Demand Shares. A
member's Demand Share in a given year is based on a three -year rolling average -the 2012 calculations are based on
data from 2008 -2010, since 2012 rates are determined in 2011. Each member's Demand Share is initially established as
the greater of:
Average daily demand (in mgd) from Cascade during the peak season (June September)
Average daily demand (in mgd) from Cascade for the entire calendar year
To account for the lag factor from using a three -year rolling average, this basis is adjusted to reflect relative growth in
customer bases. Based on CERU counts, each Member's adjustment is computed from the midpoint of the three -year
period to the most recent data available. The 2012 adjustment can be expressed as follows:
Midpoint Adjustment 2011 CERU Count (CERUs as of 12/31/10)
2009 CERU Count (CERUs as of 12/31/08)
The Demand Share is calculated by multiplying the Demand Share basis defined above by the midpoint adjustment.
Table 8 summarizes the 2012 Demand Share calculations (more detailed calculations are attached as an appendix):
Table 8:2012 Demand Share Calculations
Bellevue
Covington WD
Issaquah
Kirkland
Redmond
Sammamish Plateau WSD
Skyway WSD
Tukwila
Table 7: Reconciliation of 2010 New Water Surchames
5.1984
14.3%
6.5158
17.9%
20.3121
54.6%
0.0000
New Water
0
New
5.3359
20 New
.w Water Surcharge
Water
Actual 2010
Actual New
Surcharge
Water
Charges
Water
Surcharge
Impo
Bellevue
6,339,344
6,727,553
388,209
291,157
1,080,684
(789,528)
Issaquah
282,165
282,165
211,624
276,969
(65,345)
Kirkland
1,467,881
1,679,781
211,900
158,925
329,507
(170,582)
Redmond
1,152,275
1,901,747
749,472
562,104
867,808
(305,704)
SPWSD
251,217
251,217
188,413
141,010
47,403
Skyway WSD
349,165
165,794
Tukwila
1,375,836
919,928
Total 1 11,928,186 1,882,964 1,412,223 2,695,978 (1,283,756)
For 2010, actual demands for Kirkland and Redmond had been adjusted to reflect the transfer of 52 customers in the
Bridle Trails area from Redmond to Kirkland, shifting 5,204 ccf of demand from Redmond to Kirkland. For this
reconciliation, the related data revision was reversed to reconcile actual usage to the appropriate agency.
Demand Share Charges
The Demand Share Charge recovers costs that are not otherwise recovered through the other Member Charges or other
sources of revenue, and is computed by dividing the Demand Share cost basis by the number of Demand Shares. A
member's Demand Share in a given year is based on a three -year rolling average -the 2012 calculations are based on
data from 2008 -2010, since 2012 rates are determined in 2011. Each member's Demand Share is initially established as
the greater of:
Average daily demand (in mgd) from Cascade during the peak season (June September)
Average daily demand (in mgd) from Cascade for the entire calendar year
To account for the lag factor from using a three -year rolling average, this basis is adjusted to reflect relative growth in
customer bases. Based on CERU counts, each Member's adjustment is computed from the midpoint of the three -year
period to the most recent data available. The 2012 adjustment can be expressed as follows:
Midpoint Adjustment 2011 CERU Count (CERUs as of 12/31/10)
2009 CERU Count (CERUs as of 12/31/08)
The Demand Share is calculated by multiplying the Demand Share basis defined above by the midpoint adjustment.
Table 8 summarizes the 2012 Demand Share calculations (more detailed calculations are attached as an appendix):
Table 8:2012 Demand Share Calculations
Bellevue
Covington WD
Issaquah
Kirkland
Redmond
Sammamish Plateau WSD
Skyway WSD
Tukwila
2012
Sh re o #T�rat
19.7 900
0.0000 1 0.0%
0.9412
2.6%
5.1984
14.3%
6.5158
17.9%
20.3121
54.6%
0.0000
0.0%
1.0359
2.8%
5.3359
14.4%
6.9109
18.6%
0.4232
1.1%
0.4260
1.1%
2.7244
7.3%
2012
Sh re o #T�rat
19.7 900
0.0000 1 0.0%
0.9412
2.6%
5.1984
14.3%
6.5158
17.9%
1.0000
I 2.7% 1
0.4010
I 1.1%
2.5865
7.1%
Wli.
The Demand Share calculation summarized in Table 8 incorporates the transfer of 248 CERUs from Redmond to Kirkland
through two annexations (52 CERUs from the Bridle View area and 196 CERUs from the Kingsgate area). For the purpose
of computing 2012 Demand Shares, both the historical demands and CERU counts are adjusted to reflect the transfer.
301
Historical demands are adjusted using Cascade's standard CERU demand assumptions (241 gpd of average day demand;
371 gpd of peak season demand). For Issaquah and Sammamish Plateau, minimum demand shares of 0.75 and 1.00,
respectively, have been set by Board action, and the above table reflects these minimums when applicable, while the
appendix also illustrates calculated demand shares based on historical usage.
Table 9 shows the Demand Share Charge calculation for 2012:
Table 9: Derivation of 2012 Demand Share Charge
Dem and Share Charge Calculation
Total Prior -Year Member Charge Revenue Excluding RCFCs $28,832,552 $30,562,505
Planned Member Charge Revenue Adjustment 6.00% 6.00%
Projected Member Charge Revenue $30,562,505 $32,396,255
Less: Projected Administrative Dues 1,444,763 2,733,191
Less: Projected Conservation Charges 1,282,645 1,386,145
Less: Projected New Water Surcharges 2,220,211 0
Demand Share Cost Basis $25,614,886 $28,276,919
Projected Demand Share Basis 37.1662 36.4329
Demand Share Charge
Corresponding Charge Per Demand Share
Table 10 shows the Demand Share Charge payments for each Member.
Table 10: 2012 Demand Share Charees By Member
Demand Share Charts
Bellevue
Covington WD
Issaquah
Kirkland
Redmond
Sammamish Plateau WSD
Skyway WSD
Tukwila
Total
Existing 2011 2012
JLT6 t51; T I.Pa went
13,999,098
713,913
3,711,447
4,727,490
291,661
293,634
1,877,642
Table 11 summarizes the 2012 Member Charges for each Member:
15, 359, 764
730,481
4,034,694
5,057,142
776,136
311,256
2,007,447
Table 11: Summary of 2012 Member Charges
ICovin¢ ton Water District
I
140,921 1 5
116.578 1 5
1 1 5 257,499
1lssaquah
1
90,583 1
81,011 1 S
277,324 1$ 713.913 1 5 1.162,831 1
1Kirkland
1$
146,818 1$
131,304 1 S
323,218 1 S 3.711,447 1 5 4.312,787
1Redmond
1
251,439 1
224,870 1
710,794 1 4,727,490 1 5 5,914,593
ISammamish Plateau WSD
1
175,041 1
156,545 1
190,323 1 S 291.661 1 5 813,570
Skyway Water Sewer
I
30,949
27,679 I
293,634 I 352,262
District
Tukwila
69,895 1
62,510 1
I 1,877,642 1 2,010,047
0.
I Bellevue
1Covington Water District
Ilssaquah
1Kirkland
IRedmond
ISammamish Plateau WSD
Skyway Water Sewer
District
I$ 1,018.414'5
1 S 270.403 1 5
1 174.395'
I 277,784 1
1 474.696 1
332.855 1
58,086
516,491 I
137,136 1
88,445 1
140,879 I
240,743 1
168,809 1
29,458 I
1 $15.359,764 I $16,894,670 I
1 5 1 407,539 1
1 730.481 1 S 993,320 1
1 4,034,694 I 4,453,356 1
S 5.057,142 1 5,772,581 1
1 S 776.136 1 1,277,800 1
PJ
7.3%
58.3%
-14.6%
3.3%
-2.4%
57.1%
Member Total With
Charge justments
(200,084)l $15,538,833
1$ 1 5 257,499 1
1 66.895 1 5 1,229,726 1
1 5 (3,552)1 5 4.309,235 1
1 (59,294)1 5,855,299 1
1 (213,854)1 599,716 1
I 352,262
2,010,047
Member
Total With Increase
Charge Adjustments 2011
Over
Charges
Adjustments
(789,528)1 $16,105,142 1
3.6%
1 1 407,539 1
58.3% 1
1 (65,345)1 927,974 1
-24.5% 1
1 (170,582)1 4,282,775 1
-0.6% 1
1 (305,704)1 5,466,877 1
-6.6% 1
1 47,403 1 1,325,203 I
121.0% 1
I 398,800
13.2%
2,198,189
9.4%
302
0)Cil R'a 0)" R'd O1
(N
N
00
N
l0
N
O
M
O
(7)
m
oq
O
n
O
w
D
a/
O
0
1,
of
00
00
0
w
O N
VI N E
N
N
C
N
N
m
N
O
0
a)
l R
w
n
O
Ql
O
Q
Ln
0
r
O
O
7
m
E
m
x
m
75
m
n
2' N O N O
U
V
m
m
o
n
oo
m
Ln
m
C
V
O
V1
L
D
Ql
Ol
Ol
cn
r-4 wo
•--I N oo
N VI Ln N
M W ID Q1 iD O
n 00 a0 N ul O
oo oo O
4
00
N
Il
(7)
m
O
ao
O
n
oo
ri
a/
O
ai
N N
of
C c
00
N
O N
VI N E
N
N a
0
L
Ln
N
Q
O
O
v
a)
l R
n
O
f0
Ql
7 C C
O
O
N
0
I�
L
oo
E
y
to
7
E
E
x
O
75
m
n
2' N O N O
U
V
m
m
�o
oo
m
m
ui
0
m
V
oo
L
ca
oo
m
o
v
O
N
01
m
r
i
O
V
A\
N
M
m
N
c1
v
Q>
n
0
c
Q)
C
O
O
C
O
Q a
E
(n
U
v
o
to
3
in
E
E
E
r LL
ll
ll
N VI Ln N
M W ID Q1 iD O
n 00 a0 N ul O
oo oo O
4
E
m
E
m m
a/
O
Q
N N
C c
O
O N
VI N E
N
N a
0
L
0•
3
Q
N
E U U
DD
f0
y
7 C C
O
Q
L
Q U U U
0
3
L
o
N—
E
y
p w w m
U U—
7
E
E
x
O
o C
Q
m
n
2' N O N O
U
r-
303
After recording, ret to:
GordonDerr LLP
2025 First Avenue, Suite 500
Seattle, Washington 98121
(206) 382 -9540
WASHINGTON STATE RECORDER'S Cover Sheet (RCW 65.04)
1 DOCUMENT TITLES) (or transactions contained therein):
INTERLOCAL CONTRACT
REFERENCE NUMBER(S) OF DOCUMENTS ASSIGNED OR RELEASED:
N/A
Additional reference #s on page of document(s)
GRANTOR(S) (Last name first, then first name and initials)
Cascade Water Alliance/Members of Cascade Water Alliance
Additional names on page of document
GRANTEE(S) (Last name first, then first name and initials)
Cascade Water Alliance/Members of Cascade Water Alliance
Additional names on page of document
LEGAL DESCRIPTION (abbreviated: i.e., lot, block, plat or section, township, range)
N/A
Additional legal is on page of document
ASSESSOR'S PROPERTY TAX PARCEL /ACCOUNT NUMBER
N/A
Asse ssor Tax no ey t as
304
INTERLOCAL CONTRACT
Amended and Restated
October 26, 2011
Cascade Interlocal Contract i
Amended and Restated
October 26, 2011
305
TABLE OF CONTENTS
ARTICLE1.
AGREEMENT ..............................1
ARTICLE2.
DEFINITIONS ..............................1
ARTICLE 3.
FORMATION OF ENTITY; PURPOSE AND POWERS 7
Section3.1
Formation ..............................7
Section3.2
Membership 7
Section 3.3
Conversion to Municipal Corporation Status ..............................9
Section3.4 Purposes ..............................9
Section3.5 Powers .............................10
ARTICLE 4. ORGANIZATION STRUCTURE; BOARD .............................11
Section 4.1 Composition, ByLaws and Meetings .............................11
Section 4.2 Powers of the Board .............................12
Section4.3 Voting .............................12
Section 4.4 Officers and Committees .............................12
Section 4.5 Executive Committee .............................13
Section 4.6 Staff, Consultants and Contractors .............................14
Section 4.7 Budget; Dues; Financial Management .............................14
ARTICLE 5. ASSET DEVELOPMENT AND SUPPLY COMMITMENT .............................15
Section 5.1 Property Acquisition, Ownership and Disposition .............................15
Section5.2 Supply Commitment .............................16
Section 5.2.1 Commitment to Members .............................16
Section 5.2.2 Additional Rules for Members Retaining Independent Supply .....................18
Section 5.2.3 Additional Rules for Source Exchange .............................19
Section5.3 Financing of Assets 20
Section5.3.1 Issuance of Bonds .............................20
Section 5.3.2 Pledge of Revenues 21
Section 5.33 Continuing Discl osure .............................23
Section 5.3.4 Preservation of Tax Exemption for Interest on the Bonds .............................23
Cascade Interlocal Contract
Amended and Restated
October 26, 2011
OR
Section 5.3.5 Additional Certificates
23
Section 5.4
Supply Expansions and System Extensions .............................23
Section 5.5
Regional Capital Facilities Charges
24
Section 5.6
Transfer Upon Mergers, Consolidations and Assumptions
26
ARTICLE 6.
NEW INDEPENDENT SUPPLY
27
ARTICLE7.
ASSET MANAGEMENT .............................27
Section 7.1
Supply System Management .............................28
Section7.2
Conservation
Section 7.3
Shortages and Emergency .............................29
Section7.3.1
Shortages
29
Section7.3.2.
Emergency
Section7.4
Water Quality .............................30
Section 7.5
Water Supply Rates and Charges
31
Section 7.6
New Water Surcharge .............................3
Section 7.7
Franchises and Easements
33
Section 7.8
Sales of Water to Non Members .............................33
Section 7.9
Payment Procedures; Default; Step -Up Provisions
34
Section 7.9.1
Invoice and Payment
34
Section7.9.2 Default and Step- Up
35
ARTICLE8.
PLANNING .............................36
Section8.1
Water Supply Plan
36
Section 8.2
Watershed Management Plan
37
Section 8.3
System Reliability Methodology .............................37
ARTICLE9.
FILINGS .............................37
ARTICLE 10.
DURATION AND DISSOLUTION; WITHDRAWAL
37
Section10.1
Duration
38
Section10.2
Withdrawals .............................38
Section10.3
Dissolution
40
Section10.4
Successor Entity
40
ARTICLE11.
AMENDMENTS
41
ARTICLE 12.
APPLICABLE LAW AND VENUE .............................41
Cascade Interlocal Contract
Amended and Restated
October 26, 2011
307
ARTICLE 13. NO THIRD PARTY BENEFICIARIES 41
ARTICLE14. SEVERABIL TTY 41
ARTICLE15. ENTIRE AGREEMENT 42
ARTICLE16. EXECUTION .............................44
Cascade Interlocal Contract iv
Amended and Restated
October 26, 2011
1:
CASCADE WATER ALLIANCE
INTERLOCAL CONTRACT
Recitals
WHEREAS, the Cascade Water Alliance, an intergovernmental organization created
by Interlocal Contract effective April 1, 1999 (as amended July 2000 and November 2002) to
further the interests of its Members with respect to water supply and to work cooperatively
with other water supply entities in the region; and
WHEREAS, Members of the Cascade Water Alliance have determined to amend the
Cascade Water Alliance's Interlocal Contract to better facilitate the purpose of the Cascade
Water Alliance;
NOW, THEREFORE, it is agreed as follows:
.ARTICLE 1. Agreement
The Cascade Interlocal Contract, effective April 1, 1999, and entered into under
authority of the Interlocal Cooperation Act, Chapter 39.34 RCW is amended and re- stated as
provided herein.
ARTICLE 2. Definitions
"Asset Transfer Agreement" means an agreement between Cascade and a Member
by which the Member transfers title to Water Supply Assets to Cascade, with or without
monetary consideration, to be operated and maintained as part of the Cascade Water System.
"Authorized Issuer" means either: (a) Cascade (or a successor entity); or (b) a
Member or other entity authorized to issue Bonds for the benefit of Cascade approved by
Resolution of the Board.
"Board" means the Board of Directors of Cascade.
Cascade Interlocal Contract 1
Amended and Restated
October 26, 2011
309
"Bonds" means short-term or long -term bonds, notes, warrants, certificates of
indebtedness, or other obligations issued by, or on behalf of Cascade.
"ByLaws" means the ByLaws of Cascade, as adopted and amended by the Board.
"Cascade" means Cascade Water Alliance.
"Cascade ERUs" "CERUs means equivalent residential units, calculated
according to the Regional Capital Facilities Charge Methodology.
"Cascade Source Exchange Program" means a program adopted by Resolution of
the Board for the replacement of all or a portion of a public water systems existing water
supply to benefit stream flow and fish without serving growth or increasing that system's
water supply. A program utilizing Lake Tapps Water Supply shall include the terms and
conditions for source exchange contained in the Lake Tapps' Water Right Report of
Examination.
"Cascade Source Exchange Program Agreement" means an agreement between
Cascade and a Member or another public water supplier to implement the Cascade Source
Exchange Program.
"Cascade Supply Date" means the date for the Founding Members and each new
Member, established by Resolution of the Board, upon which Cascade undertakes a Supply
Commitment.
"Contract" means this Cascade Water Alliance Interlocal Contract.
"Demand Share" means either a Member's current share of water provided through
the Supply System, or estimated share of water to be provided through the Supply System,
Cascade Interlocal Contract -2-
Amended and Restated
October 26, 2011
310
whether Full Supply or Interruptible Supply, expressed in millions of gallons per day.
Demand Share is calculated according to the Rate Calculation Methodology.
"Dual Majority Vote" means Board approval of a proposal on the basis of a simple
majority of all Members, allowing one vote per Member, together with a simple majority of
all Members on the basis of each Member's Weighted Vote. A "simple majority" means a
majority of all Members of Cascade, not just the Members present and voting.
11 65% Dual Majority Vote" means Board approval of a proposal on the basis of a
65% supermajority of all Members, allowing one vote per Member, together with 65%
supermajority of all Members on the basis of each Member's Weighted Vote. A
supermajority" means 65% of all Members of Cascade, not just the Members present and
voting.
"Founding Member" means the City of Bellevue, Covington Water District, the City
of Issaquah, the City of Kirkland, the City of Redmond, Sammamish Plateau Water and
Sewer District, Skyway Water and Sewer District, and the City of Tukwila.
"Gross Cascade Revenue" means all of the earnings and revenues received by
Cascade from any source whatsoever including but not limited to: (a) Member Charges; (b)
revenues from the sale, lease or furnishing of other commodities, services, properties or
facilities; (c) the receipt of earnings from the investment of money in any maintenance fund or
similar fund; (d) and withdrawals from any rate reserve or rate stabilization fund or account.
However, Gross Cascade Revenue shall not include: (a) principal proceeds of Bonds
or any other borrowings, or earnings or proceeds from any investments in a trust, defeasance
or escrow fund created to defease or refund obligations relating to the Water Supply System
Cascade interlocal Contract -3-
Amended and Restated
October 26, 2011
311
(until commingled with other earnings and revenues included in Gross Cascade Revenue) or
held in a special account for the purpose of paying a rebate to the United States Government
under the Code; (b) taxes and other income and revenue which may not legally be pledged for
revenue bond debt service; (c) improvement district assessments; (d) federal or state grants
allocated to capital projects; (e) payments under Bond Insurance or other credit enhancement
policy or device; (f) insurance or condemnation proceeds used for the replacement of capital
projects or equipment; (g) earnings in any construction fund or bond redemption fund; (h)
deposits to any rate reserve or rate stabilization fund or account; or (i) any revenues generated
by any Independent Supply except those amounts that are payable to Cascade pursuant to this
Contract or another interlocal agreement.
"Independent Supply" or "Independent Supplies" means a Member's Water
Supply Assets that are not part of the Supply System.
"Member" or "Members" means one or more member agencies of Cascade.
"Member Charges" means all payments that Cascade Members are required by this
Contract to make to Cascade, including but not limited to all Rates and Charges, RCFCs,
dues, assessments and other payments from Members.
"Net Cascade Revenue" means Gross Cascade Revenue less Operations and
Maintenance Costs.
"Non- Member" means any person or agency that is not a party to this Contract.
"Operations and Maintenance Costs" or "O &M Costs" means all expenses
incurred by Cascade to operate and maintain the Supply System in good repair, working order
and condition, including without limitation, payments made to any other public or private
Cascade Interlocal Contract -4-
Amended and Restated
October 26, 2011
312
entity for water or other utility service. Except as approved by the Board, Operations and
Maintenance Costs shall not include any depreciation, capital additions or capital
replacements to the Supply System.
"Rates and Charges" means the rates and charges (not including RCFCs) chargeable
to each Member using the Rate Calculation Methodology plus any late payment or other
charge that may be due.
"Rate Calculation Methodology" means the method of setting Rates and Charges
adopted by the Board in accordance with Section 7.5
"Regional Capital Facilities Charges" "RCFCs means the charges to each
Member for new CERUs connected to that Member's water distribution system.
"Regional Capital Facilities Charge Methodology" "RCFC Methodology
means the method of determining the RCFCs adopted by the Board in accordance with
Section 5.5.
"Satellite Systems" means water supply facilities identified as such by the Board,
including but not limited to facilities that serve a portion of a Member's customers but that are
not part of the Member's main water system.
"Seattle Contract Purveyor" or "Seattle Contract Purveyors" -means a Member
that is or was a party to The City of Seattle Water Purveyor Contracts, Version A or Version
B, dated November 1981 (as amended) executed prior to July 1, 1998.
"Supply Commitment" means the obligation undertaken by Cascade, established by
Resolution of the Board to supply water to a Member. With respect to Members, that
Cascade Interlocal Contract -5-
Amended and Restated
October 26, 2011
313
obligation shall be characterized as "Full Supply Commitment," or an "Interruptible
Supply Commitment" defined as follows:
"Full Supply Commitment" for any or all of a Member's water needs means that
those needs, as projected in the Member's lawfully adopted water supply plan, shall be met
from the Supply System, net of independent supply and subject to the other limitations
established in this agreement, on an equal parity with all other Full Supply Commitments, and
with a guaranteed priority no lower than for any other Supply Commitment made by Cascade;
provided that no Member is guaranteed any given amount of supply or capacity.
"Interruptible Supply Commitment" means a supply of all or part of a Member's
water needs from the Supply System on an as- available basis on a lower priority than any Full
Supply Commitment.
The Supply Commitment for a Member shall be defined by this Interlocal Contract,
the terms and conditions of membership, and the Supply Commitment resolution.
"Supply System" means the Water Supply Assets owned or controlled by Cascade.
"Water Supply Assets" means tangible and intangible assets usable in connection
with the provision of water supply, including without limitation, real property, physical
facilities (e.g., dams, wells, treatment plants, pump stations, reservoirs, and transmission
lines), water rights, capacity and/or contractual rights in facilities or resources owned by other
entities, and investments in conservation programs and facilities.
"Watershed Management Plan" means a plan adopted by Cascade for purposes of
regional water supply, water transmission, water quality or protection, or any other water-
related purpose, including but not limited to the plans identified in RCW 39.34.190(3).
Cascade Interlocal Contract -6-
Amended and Restated
October 26, 2011
314
"Water Supply Plan" means the Cascade Regional Water Supply Plan (which may
include the Cascade Watershed Management Plan) adopted by the Board as provided in
Section 8.1 and 8.2.
"Weighted Vote" means a vote in which each Member's vote is counted according to
the Member's Demand Share, but no Member shall have a Weighted Vote of less than one.
ARTICLE 3. Formation of Entity; Purpose and Powers
Section 3.1 Formation. The Cascade Water Alliance was created on April 1, 1999
as a public body and an instrumentality of its Members, which exercises essential
governmental functions on its Members' behalf as authorized by the Interlocal Cooperation
Act (RCW 39.34). Cascade is incorporated under RCW 39.34.040(3) as a public nonprofit
corporation in the manner set forth in RCW 24.03 or 24.06 and it may, with Board approval,
be incorporated as a partnership in the manner set forth in RCW 25.04, or the Board may
organize the form of Cascade in any other manner permitted by law. In addition to its status
under any other applicable law, Cascade shall constitute a "watershed management
partnership" as provided in Chapter 39.34 RCW. The Board may approve the filing of
Articles of Incorporation or similar documents in connection with incorporating Cascade or
organizing it in some other manner.
Section 3.2 Membership. Subject to restrictions on future Cascade water rights, or
to limitations upon water's place of use imposed by contract or permit, any municipal water
utility serving within the Central Puget Sound Region may be admitted to Cascade. The
decision to admit new Members rests with the sole discretion of the Board, which shall
Cascade Interlocal Contract -7-
Amended and Restated
October 26, 2011
315
determine whether to extend a membership offer taking into consideration the audit findings,
Cascade water resources, and any other factors the Board deems advisable.
When a municipality applies for membership, Cascade shall conduct a water supply
audit according to the methodology and within the period determined by the Board. Audit
results shall be provided to the Board and to the applicant.
If a membership offer is extended, it shall address the nature of the Water Supply
Assets being transferred or retained and the "value" of those assets in terms of the calculation
of an applicant's Demand Share, RCFCs and other matters relating to the rights and
obligations of the applicant and Cascade, which must be recorded in the form that the Board
determines and which will constitute, along with this Contract, the conditions under which an
applicant becomes a Member of Cascade. An applicant for membership shall be admitted by
adoption of a Resolution of the Board accepting the application for membership and
incorporating the terms and conditions of membership.
Each membership application must be accompanied by a nonrefundable application
fee based on the cost of the audit and other costs related to the admission of a new Member or
a request for new supply. The Board shall set the application fee for each applicant based on
the estimated cost of processing the application, including the cost of the audit.
As a condition of membership, each new Member admitted to Cascade shall, in
addition to any other applicable fees, rates, charges or assessments, pay to Cascade the
membership fee, as established by the Board.
Cascade Interlocal Contract -8-
Amended and Restated
October 26, 2011
316
If an applicant's planning process or plans are materially out of compliance with the
requirements of the Growth Management Act, the Board may condition an offer of
membership upon the applicant's compliance with that act.
Section 3.3 Conversion to Municipal Corporation Status. In accordance with
Section 10.4, Cascade may be converted into a separate municipal corporation if, and as
permitted by law. Upon the creation of such a separate municipal corporation, all Cascade
rights and obligations and all Member rights an obligations under this Contract shall transfer
to that new municipal corporation.
Section 3.4 Purposes. Cascade's purposes include only those related to water
resources, and do not include the provision of other general services to the public, and are to:
a. provide a safe, reliable and high quality drinking water supply to meet the current
and projected demands of Cascade Members serving the Central Puget Sound
Region, and for non Members as determined by Cascade, and to carry out this task
in a coordinated, cost effective, and environmentally sensitive manner;
b. develop, contract for, manage, acquire, own, maintain and operate Water Supply
Assets, including without limitation, surface water supplies, groundwater supplies,
reclaimed water supplies, and other water supply resources as determined by the
Board;
c. contract with Seattle to transfer to Cascade and to modify Seattle's rights and
duties with respect to Seattle Contract Purveyors;
d. contract for, or assume certain contractual rights and duties related to the Tacoma
Second Supply Pipeline project;
e. purchase and provide water supply, transmission services, treatment facilities and
other related services;
f. provide conservation programs to promote the wise and efficient use of resources;
g. carry out emergency water supply and shortage management programs for its
Members when demands exceed available supply;
Cascade Interlocal Contract -9-
Amended and Restated
October 26, 2011
317
I coordinate and plan cooperatively with other regional or local water utilities and
other entities to maximize supply availability and to minimize system costs;
develop a Water Supply Plan addressing the needs of its Members and develop a
Watershed Management Plan serving the needs of its Members and Cascade itself
and develop a regional water supply plan with other water providers as Cascade
may find convenient or necessary to meet regional, state and federal planning
requirements, and to take a leadership role in developing and coordinating those
supply plans;
j. share costs and risks among Members commensurate with benefits received; and
k. carry out, or to further other water supply purposes that the Members determine,
consistent with the provisions of this Contract.
Section 3.5 Powers. To further its purposes, Cascade has the full power and
authority to exercise all powers authorized or permitted under RCW 39.34 and any other laws
that are now, or in the future may be, applicable or available to Cascade and to engage in all
activities incidental or conducive to the attainment of the purposes set forth in Section 3.4 of
this Contract, including but not limited to the authority to:
a. acquire, construct, receive, own, manage, lease and sell real property, personal
property, intangible property and other Water Supply Assets;
b. operate and maintain facilities;
c. enter into contracts;
d. hire and fire personnel;
e. sue and be sued;
f. exercise the power or eminent domain (through its Members at their individual
discretion, unless and until Cascade has that power under applicable law);
g. impose, alter, regulate, control and collect rates, charges, and assessments,
h. purchase and sell water and services within and outside the geographical
boundaries of its Members;
Cascade Interlocal Contract -10-
Amended and Restated
October 26, 2011
i. borrow money (through its Members or other entities at their individual discretion
or as authorized by Chapter 39.34 RCW now or in the future), or enter into other
financing arrangements;
J. lend money or provide services or facilities to any Member, other governmental
water utilities, or governmental service providers;
k. invest its funds;
1. establish policies, guidelines, or regulations to carry out its powers and
responsibilities;
m. purchase insurance, including participation in pooled insurance and self insurance
programs, and indemnify its Members, officers and employees in accordance with
law;
n. exercise all other powers within the authority of, and that may be exercised
individually by all of its Members with respect to water supply, conservation,
reuse, treatment and transmission, or any of the other purposes set forth in Section
3.4;
o. exercise all other powers within the authority of, and that may be exercised
individually by all its Members with respect to watershed planning and
management; and
p. exercise all other corporate powers that Cascade may exercise under the law
relating to its formation and that are not inconsistent with this Interlocal Contract
or with Chapter 39.34 RCW or other applicable law.
ARTICLE 4. Organization Structure; Board
Section 4.1 Composition, ByLaws and Meetings. Cascade is governed by a Board
of Directors consisting of one individual representative appointed by Resolution of the
Member's legislative authority. Members may similarly appoint Alternate Board Members.
Each Board Member and each Alternate Board Member must be an elected official of the
Member.
Cascade Interlocal Contract
Amended and Restated
October 26, 2011
319
The Board shall adopt ByLaws consistent with this Interlocal Contract that specify,
among other matters, the month of Cascade's Annual Meeting, Board powers and duties and
those of the Executive Committee, Standing Committees, Officers and employees.
The Board shall meet as required by the ByLaws, but not less than quarterly.
Section 4.2 Powers of the Board. The Board has the power to take all actions on
Cascade's behalf in accordance with voting provisions set forth in Section 4.3. The Board
may delegate to the Executive Committee or to specific Cascade Officers or employees any
action that does not require Board approval under this Contract.
Section 4.3 Voting. All Board actions must be approved by Dual Majority Vote of
all Members, except where this Contract requires either a 65% Dual Majority Vote, as
provided in Sections 5.2, 5.5, 7.1, 7.3, 8.3, 10.3, 10.4, and Article 11; or ratification by the
Members' legislative authority, as provided in Section 10.4 and Article 11. The Board may
act by voice votes, as set forth in the ByLaws. Any Member may require a recorded
tabulation of votes either before or immediately after a voice vote is taken. Although voting
is, in part, based on Weighted Vote, the Members expressly agree that there is only one class
of voting membership, and voting occurs within that single class.
Any Member that has been declared to be in default of its obligations under this
lnterlocal Contract by the Board shall lose its right to vote until the Board has declared the
default to be cured.
Section 4.4 Officers and Committees. Cascade Officers shall include a Chair, a
Vice Chair, a Secretary and a Treasurer. The Chair serves as the chair of the Board (and may
Cascade interlocal Contract -12-
Amended and Restated
October 26, 2011
320
be known as the "President if the ByLaws so designate) and performs those duties set forth
in the ByLaws.
The Vice Chair shall perform the duties of the Chair in the Chair's absence and shall
perform other duties as set forth in the ByLaws. The Secretary shall be responsible for
Cascade records and performs other duties as set forth in the ByLaws. The Treasurer shall be
responsible for Cascade accounts and financial records and performs other duties as set forth
in the ByLaws.
Consistent with the provisions of this Contract, the Board may, in the ByLaws,
establish additional Officers and set forth their duties.
The Board may create and appoint Members to Standing Committees and special
committees as it deems appropriate. Committee Members need not be elected officials or
employees of Members, but Standing Committee Chairs must be Board Members or Alternate
Board Members.
Section 4.5 Executive Committee. The Chair, Vice Chair, Secretary, Treasurer
and chairpersons of Standing Committees together constitute Cascade's Executive
Committee. The Chair (or acting Chair) shall vote on matters before the Executive
Committee only if necessary to break a tie. The Executive Committee's duties and
responsibilities are set forth in the ByLaws. The Executive Committee shall not have the
power to:
a. approve any contract for a term longer than three years;
b. approve any contract involving expenditure by, or revenue to Cascade in
excess of such amounts and under such circumstances as set forth in the
ByLaws;
Cascade lnterlocal Contract 13-
Amended and Restated
October 26, 2011
321
C. retain or dismiss the chief executive officer or determine the chief executive
officer's compensation; or
d. take any actions expressly reserved to the Board by this Contract or the
ByLaws.
The Executive Committee shall have the authority, if necessary, to avoid default on
any Bond, to withdraw from any capital reserve fund or rate stabilization fund, an amount
equal to the amount necessary to avoid a default and to authorize payment of that amount to
avoid default.
Section 4.6 Staff, Consultants and Contractors. Cascade staff shall consist of a
chief executive officer and other positions established by the Board. The Board shall appoint,
designate the title of, and establish the compensation range of the chief executive officer. The
Board shall hire or retain legal counsel and independent accountants and auditors for Cascade.
The authority to hire other consultants may be delegated to the Executive Committee. The
chief executive officer appoints persons to fill other staff positions, and those appointments
may be subject to ratification by the Board or the Executive Committee if the ByLaws so
provide. The Board may also provide that administrative, professional or technical services
be performed by contract.
Section 4.7 Budget; Dues; Financial Management. The Board must approve an
annual budget determining Cascade's revenues and expenditures no later than sixty (60) days
before the beginning of the fiscal year in which that budget will be in effect. The budget will
be developed and approved according to a schedule established by the ByLaws. The budget
must identify the levels of Member Charges on which revenue projections are based. The
Board may amend the budget.
Cascade lnterlocal Contract -14-
Amended and Restated
October 26, 2011
322
Each Member must pay annual dues to defray part or all of Cascade's administrative
costs based on the number of CERUs served by its water system, regardless of water usage or
capacity, and regardless of whether those units are served by the Supply System or by
Independent Supply. Total administrative dues collected from all Members may not exceed
9% of Cascade's annual revenue requirement
service. This limit may be amended in the budget by a 65% Dual Maiority Vote of the Board.
The Board may establish minimum annual dues per Member and may provide that less than
all of a Member's CERUs be taken into account in establishing dues.
All Cascade books and records shall be open to inspection by the Washington State
Auditor.
ARTICLE 5. Asset Development and Supply Commitment
Section 5.1 Property Acquisition, Ownership and Disposition. Cascade may
construct, purchase, rent, lease, manage, contract for, or otherwise acquire and dispose of
Water Supply Assets and other assets. Cascade may control and manage both the assets it
owns and the assets that are owned by Members that have transferred control and
management of those assets to Cascade. This Contract does not vest in Cascade any authority
with respect to Members' other facilities or assets, such as Water Supply Assets retained by
Members as Independent Supply.
Subject to Cascade's agreement, a Member may transfer to Cascade its title to, or
operational control and management of Water Supply Assets. Water Supply Assets may also
be fully retained Members as Independent Supply, subject to the provisions of Article 6. At
the discretion of the Board, Cascade may accept title to, or operational control and
Cascade Interlocal Contract 15
Amended and Restated
October 26, 2011
323
management of Water Supply Assets offered by Members or accept supply assets that
constitute all or part of a Member's Satellite System(s). The Board may accept supply assets
subject to the terms and conditions arrange between Cascade and the Member, based on the
result of the audit process and mutual needs.
Cascade may enter into Asset Transfer Agreements which shall provide for the terms
and conditions of. (a) Cascade's operation of the transferred Water Supply Asset with respect
to the Member transferring the asset; (b) Cascade's operation, maintenance and replacement
of the Water Supply Asset as part of the Supply System; (c) return or disposition of the Water
Supply Asset if Cascade terminates its existence or the Member withdraws; (d) continuation
of service (if appropriate) to Members or former Members by the Member receiving the
Water Supply Asset at reasonable rates and charges or payment to Cascade of the cost of
replacing the Water Supply Asset; and (e) such other conditions as the Board and the Member
agree upon.
Members shall not be deemed to hold legal ownership rights in any Water Supply
Assets owned by Cascade whether those Water Supply Assets have been developed by,
purchased by, or transferred to Cascade, and regardless of the accounting treatment of RCFC
payments and other payments made to Cascade.
Section 5.2 Supply Commitment
Section 5.2.1 Commitment to Members. Beginning on the Cascade Supply
Date, Cascade shall provide a Fully Supply Commitment to each Founding Member.
Thereafter, Cascade shall provide a Full Supply Commitment to meet all current and future
water supply needs of a Member that joins with Water Supply Assets sufficient to provide for
Cascade Interlocal Contract -16-
Amended and Restated
October 26, 2011
324
its needs during the following fifteen (15) years (whether or not those Water Supply Assets
are transferred to Cascade or retained as Independent Supply) commencing on the Member's
Cascade Supply Date. When a supply contract is negotiated with Seattle, any Member that is
a Seattle Contract Purveyor shall relinquish its rights under its Seattle Water Purveyor
Contract to Cascade and execute such documents as may be necessary to transfer those rights
to Cascade. Cascade shall accept those rights and a corresponding obligation to provide a
Fully Supply Commitment (net of Independent Supply). The approval of a contract with the
City of Seattle providing for the initial acquisition of rights to substantial Water Supply
Assets, and any material amendment to that contract, shall be effective upon a 65% Dual
Majority Vote,
Any Full Supply Commitment shall be subject to water shortages, to Cascade's ability
to implement the Water Supply Plan, and to the portion of the Member's needs that can be
served by the audited capacity of its Independent Supply. If the needed supply is not
available, the shortage shall be shared by all the Members in accordance with Cascade's
shortage management plan, except as otherwise provided in Section 5.5. Cascade is not
obligated to provide water supply to service area expansions in or outside the urban growth
boundary, unless Cascade agrees to such expanded service area. However, Cascade shall be
obligated to provide water supply to the entire service area of each Member (as that service
area is defined in terms under which the Member was admitted), whether or not some of that
service area is within the Member's current jurisdictional boundaries and/or within the current
urban growth boundary. Cascade is not obligated to provide increased water supply to any
Cascade Interlocal Contract -17-
Amended and Restated
October 26, 2011
325
Member if it is determined that the Member's planning process or plans are materially out of
compliance with the requirements of the Growth Management Act.
A Member that joins with Water Supply Assets insufficient to provide for its needs for
fifteen (15) years receives the Fully Supply it desires only if, when, and to the extent it is
available within reliability standards determined by Cascade's system reliability
methodology. If sufficient Full Supply is not available within reliability standards determined
by Cascade's system reliability methodology, the Member receives partial Full or
Interruptible Supply, and Full Supply must be provided within fifteen (15) years. Cascade
shall then undertake to include in Cascade's Water Supply Plan, and to acquire the facilities
or other assets necessary in the Board's determination to provide for that deficit. If Cascade
fails to develop sufficient assets to timely provide the increased Full Supply, the commitment
becomes a Full Supply Commitment at the end of that fifteen -(15) year period, and any
shortage shall be shared by all Members in accordance with Cascade's shortage management
plan.
If multiple Members request new Full Supply, requests must be honored in the order
received (i.e., in the order in which application is made accompanied by the application fee).
With respect to new Members, requests for Full Supply "vest" no earlier than the date that
membership is effective. In cases of conflict or ambiguity, the Board may determine the order
of requests.
Section 5.2.2 Additional Rules for Members Retaining Independent
Supply. Whenever Cascade has a Supply Commitment to a Member that retains Independent
Supply, Cascade shall provide Full Supply for all of that Member's water supply needs minus
Cascade Interlocal Contract
Amended and Restated
October 26, 2011
326
the amount of water that an audit determines may be provided by that Member's Independent
Supply. Members are not required to share shortages resulting from the loss or all or part of
Independent Supply, although Cascade may make Interruptible Supply available to a Member
that loses Independent Supply at prices that are consistent with the price of Interruptible
Supply being made available to others at that time. Cascade may at any time and at its cost
and expense carry out audits of a Member's Independent Supply.
A Member requesting an additional Full Supply Commitment due to loss of
Independent Supply shall make that request by Resolution of the requesting Member's
legislative authority. When and as determined by the Board, the Member shall pay an amount
equal to the RCFCs allocable to the number of CERUs that can be served by the replacement
supply provided or to be provided by Cascade. Cascade shall then include the supply in its
Water Supply Plan, and provide the supply when it becomes available, but in any event within
fifteen (15) years. If, within fifteen (15) years the supply is not available, Cascade's
commitment becomes a Full Supply Commitment and any shortage with respect to that supply
must be shared by all the Members in accordance with the Shortage Management Plan, except
as otherwise provided in Section 7.3.
Section 5.2.3 Additional Rules for Source Exchange. The Board may, at its
sole discretion, authorize a Cascade Source Exchange Program Agreement with a Member or
Non Member. The terms and conditions of a Cascade Source Exchange Program Agreement
shall be developed from a source exchange proposal submitted to the Board. The agreement
shall identify: (a) the water right (instantaneous and annual) to be augmented or replaced; (b)
the Water Supply Assets to be utilized; (c) mechanisms and arrangements for delivery of
Cascade Interlocal Contract _19-
Amended and Restated
October 26, 2011
327
regional water; (d) characteristics of supply obligation (for example, peak and average
quantities, seasonal or annual delivery duration, interruptibility and shortage management);
(e) reporting requirements; (fl changes in operation needed to benefit stream flow and fish;
(g) rates and charges; and (h) such other conditions as the Board and the Member or public
water supplier agree upon. The agreement may or may not provide for adjustments to a
Member's RCFC payments or credits and whether or not the source exchange is a loss of a
Member's Independent Supply that would be subject to the provisions of Section 5.2.2.
Section 5.3 Financing of Assets. The acquisition of new capital facilities and
other Water Supply Assets may be financing using RCFCs, transfers or Water Supply Assets,
Rates and Charges, the issuance of revenue Bonds and such other sources as the Board may
deem appropriate.
Section 5.3.1 Issuance of Bonds. An Authorized Issuer may issue Bonds
payable from and secured solely by all or a portion of Net Cascade Revenue, evidencing
indebtedness up to an amount approved by Resolution for the Board in order to provide
financing or refinancing to acquire, construct, receive, own, manage, lease or sell real
property, personal property, intangible property and other Water Supply Assets, to establish
debt service reserves, to provide for capitalized interest and to pay the costs of issuance of,
and other costs related to the issuance of the Bonds. Such Bonds shall be payable solely from
all or a portion of the Net Cascade Revenue or (if the Authorized Issuer is other than Cascade)
from payments to be made by Cascade out of all or a portion of Net Cascade Revenue, and
such Bonds shall not pledge the full faith and credit or taxing power or, except as expressly
provided by contract, the revenue, assets or funds of any Member.
Cascade Interlocal Contract -20-
Amended and Restated
October 26, 2011
MVI
Members serving as Authorized Issuers may conduct the financing through "separate
systems" permitted by their applicable bond resolutions, or in some other appropriate manner,
and Cascade may compensate those Members for all costs associated with the financing.
Bond related documents of Authorized Issuers other than Cascade must expressly permit the
Bonds to be refunded or prepaid without penalty prior to their stated maturity, on and after
such dates as are approved by the Authorized Issuer and the Board, to allow for a transfer of
the obligation to Cascade or to Cascade's successor entity, including without limitation a joint
operating agency or similar entity, as may be permitted by law.
Section 5.3.2 Pledge of Revenues. For as long as any Bonds payable from
Net Cascade Revenue (or any portion thereof) are outstanding, Cascade irrevocably pledges to
establish, maintain and collect all Member Charges in amounts sufficient to pay when due the
principal of and interest on the Bonds (and, if the Authorized Issuer is other than Cascade, in
addition to the foregoing pledge, to pledge to make timely payments to that Authorized Issuer
for the payment of principal of and interest on the Bonds), together with amounts sufficient to
satisfy all debt service reserve requirements, debt service coverage requirements, and other
covenants with respect to the Bonds.
Each Member hereby irrevocably covenants that it shall establish, maintain and collect
rates, fees or other charges for water and other services, facilities and commodities related to
the water supply it receives from Cascade and/or its water utility at levels adequate to provide
revenues sufficient to enable the Member to: (a) make the payment required to be made under
this Contract; and (b) pay or provide for payment of all other charges and obligations payable
from or constituting a charge or lien upon such revenues. Each Member hereby
Cascade Interlocal Contract -21-
Amended and Restated
October 26, 2011
329
acknowledges that this covenant and its covenant in Section 7.9 of this Contract may be relied
upon by Bond owners, consistent with this Contract.
Each Member shall pay the Member Charges imposed on its whether or not the Water
Supply Assets to be financed through the issuance of Bonds are completed, operable or
operating, and notwithstanding the suspension, interruption interference, reduction or
curtailment in the operation of any Water Supply Assets for any reason whatsoever, in whole
or in part. Member Charges shall not be subject to any reduction, whether by offset or
otherwise, and shall not be conditioned upon the performance or nonperformance of any
Member, or of any entity under this or any other agreement or instrument. However, credits
against future RCFCs and Rates and Charges described in Sections 5.5 and 7.5, respectively,
for development or addition of excess capacity that is either transferred to Cascade or retained
as Independent Supply, shall not be considered "offsets" or "reductions" for the purposes of
this Section.
If, in connection with the issuance of obligations, any Member establishes a new lien
position on revenues relating to its water utility, that Member shall covenant in the relevant
documents that the amounts to be paid to Cascade as Member Charges shall be treated either:
(a) as part of that Member's internal operation and maintenance costs payable prior to debt
service on those obligations; and/or (b) for any portion of those Member Charges that is
allocable to capital costs, as a contract resource obligation payable prior to debt service on
those obligations. If any Member has existing outstanding revenue obligations relating to its
water utility, it shall include substantially similar "springing covenants" in the documents
relating to any new parity obligations.
Cascade Interlocal Contract -22-
Amended and Restated
October 26, 2011
330
Section 5.3.3 Continuing Disclosure. To meet the requirements of United
States Securities and Exchange Commission "SEC Rule 15c2- 12(b)(5) (the "Rule as
applicable to a participating underwriter for any Bonds and any obligation of each Member as
an "Obligated Person" under the Rule, Cascade and each Member agree to make an
appropriate written undertaking, respectively, for the benefit of holders of the Bonds
consistent with the requirements of the Rule.
Section 5.3.4 Preservation of Tax Exemption for Interest on the Bonds.
Each Member covenants that it will take all actions necessary to prevent interest on tax-
exempt Bonds from being included in gross income for federal income tax purposes, and it
will neither take any action nor make or permit any use of proceeds of tax exempt Bonds or
other funds treated as proceeds of those Bonds at any time during the term of those Bonds that
will cause interest on those Bonds to be included in gross income for federal income tax
purposes.
Section 53.5 Additional Certificates. Each Member further agrees to
provide such certificates or verifications as are reasonably requested by an Authorized Issuer
in connection with the issuance of Bonds under this Section.
Section 5.4 Supply Expansions and System Extensions. Cascade must provide
for Supply System expansions and extensions to meet the needs of additional water customers
of Members, subject to consistency with applicable growth management plans and
comprehensive plans, Cascade's water supply plan, orderly asset development, reasonable
cost and financing capacity. The Board shall establish a water supply development process,
including criteria governing the evaluation of new projects, and that process must promote
Cascade lnterlocal Contract -23-
Amended and Restated
October 26, 2011
331
equality of costs and services (other than direct local services), regardless of geographic
location. The results of the water supply planning process must be reflected in Cascade's
Water Supply Plan. The Board shall have the authority to undertake new projects identified
in Cascade's Water Supply Plan for the expansion of Water Supply Assets and regional
transmission system extensions to meet Members' projected needs. To reduce costs, Cascade
may, to the extent that the Board deems advisable, enter into agreements with Members to
wheel water through their existing systems. When facilities are constructed that are used
partially by Cascade for wheeling water and partially by Members or other entities for their
purposes, the Board may determine an appropriate Cascade contribution to the cost of those
facilities. Existing arrangements among Members (and between Members and Non
Members), in place when a Member joins Cascade, remain unaffected except as otherwise
agreed between Cascade and the other entities concerned.
Section 5.5 Regional Capital Facilities Charges. To allocate growth costs to
those Members that require capacity increases, each Member shall pay to Cascade an RCFC
for each new CERU connected to its water distribution system. Growth in water usage by
existing CERUs is not subject to RCFCs unless that growth constitutes as CERU increase as
provided in the RCFC Methodology. Members with a supply deficit must pay an RCFC
commensurate with that deficit. To the extent that a Member transfers to Cascade or retains
as Independent Supply water supply in excess of its needs, it receives a corresponding credit
against future RCRCs.
Cascade ]nterlocal Contract -24-
Amended and Restated
October 26, 2011
332
Subject to the provisions of Section 5.2.2, a Founding Member pays no RCFCs with
respect to the number of CERUs served as of January 31, 2003, or other such later date as
determined by Resolution of the Board.
A new Member with adequate supply shall commence paying RCFCs fifteen (15)
years prior to the date that its Water Supply Assets are projected to be insufficient to provide
for its needs as determined by the Board (taking into consideration the results of the Water
Supply Audit).
A Member that joins with Water Supply Assets that are projected to be insufficient to
provide for its needs for fifteen (15) years shall immediately pay RCFCs for the number of
CERUs representing the deficit as determined by the Board.
RCFCs shall be calculated according to the RCFC Methodology, which shall define
the analytical steps required to calculate the RCFCs according to the greater o£ (a) the
incremental difference between the average unit cost of expanding the system (i.e., the
marginal cost of new capacity) and the average unit cost of the existing system; or (b) the
average unit cost of past construction of the existing system plus then- planned Supply System
improvements. The methodology shall provide for an annual escalator, recalculation and
update not less frequently than every fifth year, and a methodology for determining CERUs.
The RCFCs shall be imposed on the Member for each new CERU of that Member in
accordance with the terms of this Contract. Amendments to the RCFC Methodology shall
require a 65% Dual Majority Vote.
If a Founding Member owns Water Supply Assets or transfers Water Supply Assets to
Cascade under Section 5. 1, to the extent the audited capacity of those assets (including Seattle
Cascade Interlocal Contract -25-
Amended and Restated
October 26, 2011
333
Contract Purveyor rights) exceeds the Member's needs, that Member shall receive a credit
against future RCFCs. If a Member seeks to transfer assets substantially in excess of its
foreseeable needs, Cascade may negotiate appropriate compensation arrangements for the
transfer.
Members that develop new Independent Supply that is approved by the Board in
accordance with Article 6, similarly receive a credit effective when the Independent Supply is
placed in service as determined by the Board.
A Member that accepts ownership of a Satellite System that Cascade agrees to serve
shall pay an RCFC for the amount of supply needed to serve that system in excess of its rated
capacity.
Members that experience a net reduction in the number of CERUs served shall receive
a CERU- for -CERU credit against future RCFCs.
RCFC credits may not be transferred among Members without Board approval.
Members shall not be required to pass RCFCs to their customers as capital facilities
charges, but may provide for the payment of RCFCs in whatever manner. they deem
appropriate.
For Members joining with an unmet net supply need, Cascade may, under
circumstances determined by the Board, require the prepayment of RCFCs allocable to the
full amount of the requested supply, i.e., when funds are needed to begin the construction of
facilities immediately.
Section 5.6 Transfer Upon Mergers, Consolidations and Assumptions. If: (a)
two or more Members merge or consolidate; (b) a Member or a Non Member assumes
Cascade Interlocal Contract -26-
Amended and Restated
October 26, 2011
334
jurisdiction of part or all of a Member; or (c) a Member assumes jurisdiction of part or all of a
Non Member, the jurisdictions' water supply rights from and obligations to Cascade must be
transferred or assumed under applicable law and consistent with the requirements of this
Contract and the obligations of Cascade.
ARTICLE 6. New Independent Supply
Members may not bring new Water Supply Assets on -line as Independent Supply
without Board approval. That approval may be granted or denied following an evaluation
process, based on whether the Board determines that development of the proposed
Independent Supply will benefit or be adverse to the interests of the Members as a whole.
Recognizing that in certain circumstances the acquisition of additional Independent Supply
might benefit (or cause no material harm to) the Members, new supplies under one (1) MGD
may be approved by the Board regardless of the provisions of the Water Supply Plan and
without a formal evaluation process. New supplies in amounts greater than one (1) MGD
must be described in and be consistent with the Water Supply Plan.
Members that have invested in the development of new Independent Supply assets
may offer to sell their interest in such assets to Cascade. Cascade may, in its sole discretion
and subject to mutually agreeable terms and conditions, purchase the Member's interest in
such Independent Supply asset by reimbursing or otherwise compensating the Member for its
investment in the project to the extent that investment has been capitalized. Once Cascade
has purchased a Member's interest in a project, the project will be considered a Water Supply
Asset of Cascade and be incorporated into the Water Supply Plan.
ARTICLE 7. Asset Management
Cascade Interlocal Contract -27-
Amended and Restated
October 26, 2011
335
Section 7.1 Supply System Management. Cascade is responsible for managing,
on behalf of all Members, the Supply System. Cascade is not responsible for managing
Independent Supply unless it has expressly agreed to do so. Supply System management
responsibilities shall be governed by Cascade's system management plan adopted by the
Board. Cascade's system management plan concerns, without limitation, matters such as
daily system operations and maintenance, interface with other supply providers, contractual
obligations, water quality, billing, management and administration. Cascade may delegate
and/or contract out its Supply System responsibilities.
Cascade must manage the Supply System in compliance with applicable laws,
regulations and Cascade's minimum service standards. Adoption and amendments to the
minimum service standards shall require a 65% Dual Majority Vote.
Section 7.2 Conservation. Cascade shall develop and carry out, and Members
must participate in, water conservation programs that are uniform among Members. The
Board shall develop and implement a Cascade conservation management plan that provides a
mandatory base conservation program that functions to reduce both average and peak
demands and may establish a charge or assessment to fund development and implementation
of the program. Members may implement additional conservation programs. The Board may
adopt wholesale charges in addition to normal Demand Share charges to encourage resource
conservation. The Board may also provide or contribute to additional local conservation
programs that are not offered to all Members, and these local programs may be locally funded
or funded by Cascade. Members that fail to comply with base programs as set forth in
Cascade Interloeal Contract -28-
Amended and Restated
October 26, 2011
336
Cascade's conservation management plan may be required to assume a disproportionate
reduction in water supply or to pay penalty charges, or both.
Section 7.3 Shortages and Emergency.
Section 7.3.1 Shortages. Members must respond to water shortages in a
collective, shared fashion under a Cascade shortage management plan adopted by the Board.
Resources must be shared in a manner that reduces the risk of severe shortages to each
Member. Cascade's shortage management plan may include without limitation, a definition
and classification of shortages, a shortage contingency plan including mandatory
programmatic actions among all Members in the event of shortages, allocation of authority for
determining and responding to shortages, and a communications and outreach program for the
public. Members shall not be required to implement Cascade's shortage management plan in
areas not served by the Supply System.
In the event of shortages, Cascade shall reduce or halt Interruptible Supply before
invoking the Shortage Management Plan with respect to all Members with a Full Supply
Commitment. However, the Board may, by 65% Dual Majority Vote, continue service in the
amounts it deems appropriate to one or more Members receiving Interruptible Supply.
The Board may require that Members failing to comply with mandatory shortage
management programs implemented under Cascade's shortage management plan assume a
disproportionate reduction in supply or pay penalty charges, or both.
In the event of a Cascade -wide water shortage, Members with Independent Supply
may, without penalty, decline to participate in the shortage management program for that
shortage by foregoing all supply from Cascade for the duration of the emergency or shortage.
Cascade Interlocal Contract -29-
Amended and Restated
October 26, 2011
337
To avoid shortages resulting from emergencies or the inability to develop sufficient
supplies, the Board may, by 65% Dual Majority Vote, establish moratoria on connections or
additional commitments for future water services by the Members. A moratorium may be
discontinued by a Dual Majority Vote of the Board.
Section 7.3.2. Emergency. The Board shall include in Cascade's shortage
management plan policies and procedures for addressing short-term disruptions of water
supply, transmission or water quality, and it may delegate to the General Manager authority to
address such disruptions according to such policies and procedures.
Section 7.4 Water Quality. Cascade shall be responsible for water quality that
meets or exceeds all federal or state requirements at the point of delivery from Cascade to the
Member, consistent with applicable laws and regulations. Cascade assumes source water
quality responsibility and liability with respect to Water Supply Assets under its ownership or
control (including water wheeled to a Member through another Member's facilities). Cascade
is also responsible for preparing and carrying out water quality activities compatible with the
water quality requirements of regional water suppliers integrated with Cascade's system (e.g.,
Tacoma, Everett and Seattle).
Cascade may, in its sole discretion, determine and adjust the appropriate method and
level of treatment of water that it supplies, so long as that water meets applicable state and
federal requirements. If water that it supplies meets those requirements, Cascade shall not be
obligated to adjust the method or level of treatment so that the water can be more readily
blended with a Member's Independent Supply or more readily transmitted through a
Member's internal system. Each Member shall remain responsible for water quality within its
Cascade Interlocal Contract -30-
Amended and Restated
October 26, 2011
338
respective distribution system, assuming that adequate water supply quality is provided by
Cascade at the point of delivery from Cascade.
Each Member shall be responsible for all costs related to making water supplied by
Cascade compatible with that Member's internal system, including but not limited to, costs of
additional treatment.
Section 7.5 Water Supply Rates and Charges. The Board shall set Rates and
Charges according to a Rate Calculation Methodology adopted from time to time by the
Board. The Rate Calculation Methodology for Members' Supply Commitment shall provide
for the definition and calculation of Demand Shares and for a uniform pricing structure with a
commodity charge and fixed charges allocated by Demand Share.
Cascade may sell water to a Non Member under terms and conditions established by
the Board. The terms and conditions shall not be more favorable than the terms and
conditions under which water is sold to Members. Revenue received from the sale of water to
Non Members shall be used to offset or reduce Rates and Charges to Members to the extent
practicable, except that such revenue need not be treated as reducing or offsetting those
amounts that are necessary for the payment of debt service on Bonds and for the provision of
reserve and coverage requirements for the Bonds.
A Member shall be assigned a Demand Share based on the Board's best estimate of
capacity to be used by that Member. Initially, the Board may base its estimate on a Seattle
Contract Purveyor's use of water from Seattle. For a Member that joins without a supply
history as a Seattle Contract Purveyor, or for a Member that has received only part of its water
from Seattle, the Demand Share shall be established based on an audit of that Member's past
Cascade Interlocal Contract 31
Amended and Restated
October 26, 2011
339
three (3) years of water use. After three (3) years as a Member, the baseline demand and
capacity obligation for that Member shall be fixed based on actual experience as a Member.
Specific Demand Shares may be set by the Board to account for circumstances, such as (by
way of example and not by limitation) costs of extending the Supply System to a Member, or
when Independent Supplies affect regional demand patterns. When water supply from
Cascade is wheeled through a Member to another Member, Cascade may presume that the
first Member receiving the water is the "User" for calculation of Demand Shares unless the
Members concerned instruct Cascade to use a different allocation. Rate credits for Water
Supply Asset transfers are not deducted in the calculation of Demand Shares but are applied
to reduce what a Member would otherwise pay.
The Board must set Member Charges at levels it determines to be sufficient, together
with other available revenue sources, to provide adequately for Operation and Maintenance
Costs, Bond debt service, coverage and other covenants, replacement and renewal of
facilities, reserves and other costs that the Board deems appropriate. The Board may provide
that a Member's failure to participate in the planning process may result in penalty charges.
A Member that has transferred Water Supply Assets shall receive a credit, determined
when those assets are audited and transferred, based on the useful life of those facilities and
on the Member's use of the water produced by those assets or an amount of water equivalent
to the amount of supply from them.
The Board may implement wholesale charges (additional to Demand Share -based
charges and variable commodity charges) to reduce extreme peak use (e.g., "peaking -off of
the pipe
Cascade Interlocal Contract -32-
Amended and Restated
October 26, 2011
340
Water Rates and Charges must be the same for all Members receiving the same class
of service (subject to credits, surcharges and penalty charges).
Section 7.6 New Water Surcharge.
A new water surcharge of $0.75 per 100 cubic feet (ccf) shall be imposed, effective on
the Cascade Supply Date, and continue through December 31, 2011. It shall be applicable to
all water purchased by Members over and above each Member's Old Water Allowance in the
Seattle Purveyor Contract, if applicable, or to all water purchased by non Seattle Purveyor
Members. New water surcharge revenues shall be used to offset or reduce Rates and Charges
to Members to the extent practicable, except that such revenue need not be treated as reducing
or offsetting those amounts that are necessary for payment of debt service on Bonds and for
the provision of reserve and coverage requirements for the Bonds.
Section 7.7 Franchises and Easements. Except to the extent otherwise required
by state law, each Member shall provide franchises and rights of way on, under or across that
Member's streets or other property, to Cascade and to other Members for Water Supply
Assets, without charging any fees, rent or charges other than the customary and usual right -of-
way permit and inspection fees.
Section 7.8 Sales of Water to Non Members. Unless approved by the Board, a
Member shall not sell water, including source exchange water, supplied by Cascade, nor shall
a Member sell Independent Supply offset by water supplied by Cascade to a Non Member.
Notwithstanding the foregoing, any Member may sell water supplied by Cascade to a Non
Member to the extent required by a contract in effect as of the date the Member joins
Cascade.
Cascade Interlocal Contract -33
Amended and Restated
October 26, 2011
341
Section 7.9 Payment Procedures; Default; Step -Up Provisions.
Section 7.9.1 Invoice and Payment.
(a) Cascade shall provide each Member with periodic invoices showing the
Member Charges payable by that Member for the billing period and the due date. Invoices
shall be provided monthly or on other such periodic schedule as determined by the Board, but
no more frequently than monthly nor less frequently than once every six months. The Board
will determine a due date for all invoices.
(b) Payment of any and all invoices shall be due and payable on or before the due
date, and shall be made by wire transfer or such other means as are agreed to by Cascade and
the Member. If a treasurer, trustee, fiscal agent or escrow agent is appointed in connection
with the issuance of Bonds, Cascade may require, and specify on the invoice, that certain
amounts be provided directly to that person or entity, and the Member shall pay those
amounts in the manner and to the person so specified.
(c) If full payment of any invoice is not received on or before the due date, such
payment shall be considered past due and a late payment charge shall accrue for each day that
the invoice remains unpaid. The late payment charge shall equal the product of the unpaid
amount and an interest rate established by the Board. Late payment charges shall continue to
accumulate until the unpaid amount of the invoice and all late payment charges are paid in
full. Further, if an invoice or any portion thereof remains unpaid for more than sixty (60)
days after the due date, Cascade may pursue any legally available remedy at law or equity for
the unpaid amount, including without limitation, specific performance and collection of the
late payment charge. Cascade's right to enforce payments in this regard may be assigned to a
Cascade Interlocal Contract .34.
Amended and Restated
October 26, 2011
342
treasurer, trustee, credit enhancement provider or other entity. Furthermore, upon written
notice, Cascade may reduce or suspend delivery of water until the invoice and late payment
charges are paid.
(d) If any Member disputes all or any portion of an invoice, it shall notify Cascade
immediately upon receipt. If Cascade does not concur, the Member shall remit payment of
the invoice in full, accompanied by written notice to Cascade indicating the portions of the
invoice that the Member disputes and the reasons for the dispute. The Member and Cascade
shall make a good faith effort to resolve such dispute. If the Member fails to remit payment
of the invoice in full pending resolution of the dispute, the prevailing party in an action
relating to the collection of that invoice shall be entitled to reasonable attorney fees and costs.
Section 7.9.2 Default and Step -Up.
(a) If any Member fails to make any payment in full for more than fifty (50) days
past the due date, Cascade shall make written demand upon that Member to make payment in
full within ten (10) days of the date that the written demand is sent by Cascade. If the failure
to pay is not cured within the ten (10) day period, the Member shall be deemed to be in
default.
(b) Upon an event of default as described in subsection 7.9.2(a), the other
Members shall pay Cascade (in addition to Member Charges otherwise due) the defaulting
Member's Member Charges in proportion to each remaining Members' Demand Share in
accordance with a schedule established by Resolution of the Board.
(c) The payment of a proportionate share of the existing defaulted Member's
Member Charges by Members shall not relieve the defaulting Member of its liability for those
Cascade Interlocal Contract -35-
Amended and Restated
October 26, 2011
343
payments. Cascade shall have a right of recovery from the defaulting Member on behalf of
each Member. Cascade may commence such suits, actions or proceedings at law or in equity,
including but not limited to suits for specific performance, as may be necessary or appropriate
to enforce the obligations of this Contract against any defaulting Member. Cascade's right to
enforce payments in this regard may be assigned to a treasurer, trustee, credit enhancement
provider or other entity. Amounts recovered by Cascade as payment of amounts due shall be
passed through to each Member in proportion to the share that each assumed, in cash or in
credit against future Member Charges as the Board shall determine.
(d) The prevailing parry in any such suit, action or proceeding, shall be entitled to
recover its reasonable attorney fees and costs against the defaulting Member.
ARTICLE 8. Planning
Section 8.1 Water Supply Plan. Cascade must plan for its Members' water supply
needs. That planning shall be to be compatible with the equivalent planning responsibilities
of other wholesale water providers and with state, county and city planning responsibilities
under the Growth Management Act. The Board must adopt, and may from time to time
amend, a Water Supply Plan that must be based on no less than a twenty- (20) year planning
horizon. Cascade shall coordinate its planning effort with local and regional utilities and
other appropriate agencies and work to encourage cooperative region -wide planning and
coordination.
Each Member shall actively participate in Cascade's water supply planning and shall
provide to Cascade accurate data regarding its facilities and operations together with good-
faith estimates of future needs and a description of any involvement in the development of
Cascade Interlocal Contract -36-
Amended and Restated
October 26, 2011
344
new Independent Supplies. Each Member's water comprehensive or system plan shall be
consistent with any plans adopted by Cascade, and shall be consistent with applicable
requirements of the Growth Management Act and comprehensive plans.
Section 8.2 Watershed Management Plan. Cascade may adopt Watershed
Management Plans, as appropriate, for the watersheds within its service area provided that a
Watershed Management Plan may take the place of, or may be incorporated into a Cascade
Water Supply Plan. In fulfilling its responsibilities for watershed management, Cascade may
enter into interlocal agreements with Non Member municipalities to engage in watershed
management, including development of Watershed Management Plans and the
implementation and financing of such plans.
Section 8.3 System Reliability Methodology. Cascade shall develop and adopt a
system reliability methodology for planning, operation and management purposes. Adoption
and amendments to the system reliability methodology shall require a 65% Dual Majority
Vote.
ARTICLE 9. Filings
This Contract must be filed with the King County Office of Records and Elections or
with any other applicable county auditor, in accordance with RCW 39.34.040, and must be
submitted for review by the Washington State Department of Health and the Washington
State Department of Ecology, in accordance with RCW 39.34.050.
ARTICLE 10. Duration and Dissolution; Withdrawal
Cascade lnterlocal Contract 37
Amended and Restated
October 26, 2011
345
Section 10.1 Duration. Except as provided in Section 10.3, Cascade shall remain in
existence for the longer of the following: (a) the period it holds any assets; (b) the period
during which Bonds are outstanding; or (e) the period it continues to include Members.
Section 10.2 Withdrawals. A Member may notify Cascade of its intent to withdraw
by delivery to Cascade of a Resolution of its legislative authority expressing such intent.
Upon receipt of such Resolution, the Member shall lose its right to vote and the Board shall
determine (a) the withdrawing Member's allocable share of the cost of the then existing
obligations of Cascade; and (b) the withdrawing Member's obligations to Cascade. "Then
existing obligations of Cascade" means obligations or costs incurred by Cascade as of the date
the Member's withdrawal notice is received, including but not limited to Bond obligations,
contract obligations and cash financed capital projects; provided that a withdrawing
Member's allocable share shall in no event include an obligation for future expenses for
which Cascade has not incurred a legal obligation; and provided further, that to the extent the
Member's obligation (with respect to such costs) is re -paid over time, the Member shall be
entitled to a credit for supply abandoned by the Member and is otherwise used by Cascade. A
"withdrawing Member's obligation to Cascade" includes but is not limited to, the Member's
share of fixed operating costs, any other expenses contained in Cascade's adopted budget for
that year, and any assessments or other similar charges lawfully imposed by Cascade. For
purposes of the preceding sentence, "fixed operating costs" shall be determined in the year of
withdrawal, and the Member's obligation with respect to such costs shall be limited only to
that amount required to pay for supply abandoned by the Member and not otherwise used by
Cascade.
Cascade Interlocal Contract -38-
Amended and Restated
October 26, 2011
346
The allocable share of cost or obligations shall be determined by the Board, taking into
consideration as deemed applicable by the Board: (a) the ratio of the Member's Demand
Share to total Member demand; (b) the ratio of the Member's contribution to Cascade revenue
to total Cascade revenue including RCRCs; (e) the cost or a portion of the cost of capital
projects or facilities specially benefiting the Member; and (d) and any other factor the Board
deems appropriate to consider. The Member's withdrawal shall be effective on payment of
such allocable share or provision for arrangements to pay such allocable share that are
satisfactory to the Board. Until the effective date of withdrawal, the Member shall continue to
comply with all applicable provisions of this Interlocal Contract.
Upon withdrawal, except as provided in an Asset Transfer Agreement, the
withdrawing Member shall have no right to, or interest in any Water Supply Assets owned by
Cascade. The withdrawing Member shall be deemed to have abandoned any and all rights to
service, to the use of Cascade Water Supply Assets or other rights with respect to Cascade
(except as otherwise expressly provided in this Contract).
Notwithstanding the provisions of this Section 10.2, Cascade will, upon the
withdrawal of a Member that has transferred operational control and management of (but not
title to) an Independent Supply Asset to Cascade under Section 5. 1, return operational control
of such asset to the withdrawing Member. Return of operational control and management will
be subject to: (a) continued use by Cascade, to the extent and for such time as the Board
deems such use necessary for Cascade to continue providing service to its Members; and (b)
payment or provision for payment of any Cascade costs, including but not limited, to those
associated with the withdrawing Member's Independent Supply Asset.
Cascade Interlocal Contract -39-
Amended and Restated
October 26, 2011
347
The Board may establish additional generally applicable conditions and requirements
for withdrawal.
Section 10.3 Dissolution. Cascade may be dissolved by a 65% Dual Majority Vote.
Upon dissolution, except as provided in an Asset Transfer Agreement, Cascade's assets
initially shall be held by its then current Members as tenants in common. Each Member's
ownership interest must be based on that Member's Demand Share as of the time of the
dissolution. Cascade's liabilities (including Bonds and other contractual obligations) initially
shall be distributed based on Members Demand Shares as of the time of the dissolution.
Assets and liabilities must be distributed in accordance with agreement or contract, under a
voluntary mediation process, or by a court of law. A court may appoint an arbitrator or
special master. Distribution shall be based on the best interests of efficient and economic
water supply in the entire area served by the Members, subject to a rebuttable presumption
that Water Supply Assets will be returned to the Member that originally transferred them to
Cascade. That presumption may be overcome by a showing that another asset distribution is
in the best interests of efficient and economic water supply. The proceeds of any sale of
assets must be distributed among the then current Members based on the Demand Shares at
the time of dissolution.
Section 10.4 Successor Entity. Notwithstanding the provisions of Section 10.3,
upon a 65% Dual Majority Vote (ratified within one hundred and twenty (120) days by 65
as measured by Dual Majority Vote of the Members' legislative authorities, all assets,
liabilities, and obligations of Cascade may be transferred to any successor entity (including
without limitation, a joint operating agency or other municipal corporation, as permitted under
Cascade Interlocal Contract -40-
Amended and Restated
October 26, 2011
iI
state law), and all obligations of Members and parties contracting with Cascade become
obligations to the successor entity.
ARTICLE 11. Amendments.
Amendments to this Contract shall be effective upon approval by 65% Dual Majority
Vote (ratified within one hundred and twenty (120) days by 65 as measured by Dual
Majority Vote of the Members' legislative authorities.
ARTICLE 12. Applicable Law and Venue.
This Contract is governed by the laws of the state of Washington. The venue for any
legal action arising from a dispute under this Contract is the Superior Court for King County.
ARTICLE 13. No Third Party Beneficiaries.
There are no third -party beneficiaries to this Contract except for the rights of Bond
owners as provided in Section 5.3.2, no person or entity other than an agency signatory to this
Contract shall have any rights hereunder or any authority to enforce its provisions, and any
such rights or enforcement must be consistent with and subject to the terms of this Contract.
ARTICLE 14. Severability.
If any provision of this Contract or its application is held by a court of competent
jurisdiction to be illegal, invalid, or void, the validity of the remaining provisions of this
Contract or its application to other entities or circumstances shall not be affected. The
remaining provisions continue in full force and effect, and the parties' rights and obligations
must be construed and enforced as if the Contract did not contain the particular invalid
provision. But if the invalid provision or its application is found by a court of competent
jurisdiction to be substantive and to render performance of the remaining provisions
Cascade Interlocal Contract -41-
Amended and Restated
October 26, 2011
i!
unworkable and infeasible, is found to seriously affect the consideration, and is inseparably
connected to the remainder of the contract, the entire Contract is deemed void.
ARTICLE 15. Entire Agreement.
This Contract constitutes the entire and exclusive agreement between the parties
relating to the specific matters covered in this Contract. All prior or contemporaneous verbal
or written agreements, understandings, representations or practices relative to the foregoing
are superseded, revoked and rendered ineffective for any purpose. This Contract may be
altered, amended or revoked only as set forth in Article 11. No verbal agreement or implied
covenant may be held to vary the terms of this Contract, any statute, law, or custom to the
contrary notwithstanding.
Cascade Interlocal Contract -42-
Amended and Restated
October 26, 2011
350
Cascade Water Alliance
B 2
Title: Chair
Attest:
Title: Chief Executive Order
Authorized by: Resolution No. 2011 -17
Date:
Cascade interlocal Contract
Amended and Restated
October 26, 2011
October 26, 2011
Cascade Water Alliance
-43-
Date: /o /./W
Date: 1 1 0
351
ARTICLE 16. Execution.
This Contract may be executed in one or more counterparts.
Signatory Aeencv
By:
Title:
Attest:
Title:
Authorized by (Resolution or Ordinance):
Date:
City of Bellevue
Cascade Interlocal Contract -44-
Amended and Restated
October 26, 2011
Date:
Date:
352
ARTICLE 16. Execution.
This Contract may be executed in one or more counterparts.
Sienatory Aaencv
By:
Title:
Attest:
Title:
Authorized by (Resolution or Ordinance):
Date:
Covington Water District
Cascade Interlocal Contract
Amended and Restated
October 26, 2011
Date:
Date:
353
ARTICLE 16. Execution.
This Contract may be executed in one or more counterparts.
Sisnatory A2encv,
By:
Title:
Attest:
Title:
Authorized by (Resolution or Ordinance):
Date:
City of Issaquah
Cascade Interlocal Contract
Amended and Restated
October 26, 2011
Date:
Date:
354
ARTICLE 16. Execution.
This Contract may be executed in one or more counterparts.
Signatory Agencv
By:
Title:
Attest:
Title:
Authorized by (Resolution or Ordinance):
Date:
City of Kirkland
Cascade Interlocal Contract
Amended and Restated
October 26, 2011
Date:
Date:
355
ARTICLE 16. Execution.
This Contract may be executed in one or more counterparts.
Sisnatory Aeenev
By:
Title:
Attest:
Title:
Authorized by (Resolution or ordinance):
Date:
City of Redmond
Cascade Interlocal Contract
Amended and Restated
October 26, 2011
Date:
Date:
356
ARTICLE 16. Execution.
This Contract may be executed in one or more counterparts.
Ski natory A encv
Title: Date:
Attest:
Title: Date:
Authorized by (Resolution or Ordinance):
Date:
Sammamish Plateau Water Sewer District
Cascade Interlooal Contract
Amended and Restated
October 26, 2011
357
ARTICLE 16. Execution.
This Contract may be executed in one or more counterparts.
Signatory Agency
By:
Title:
Attest:
Title:
Authorized by (Resolution or ordinance):
Date:
Skyway W &S District
Cascade Interlocal Contract
Amended and Restated
October 26, 2011
Date:
Date:
ARTICLE 16. Execution.
This Contract may be executed in one or more counterparts.
SignatorvAgencX
By:
Title:
Attest:
Title:
Authorized by (Resolution or Oidinance):
Date:
City of Tukwila
Cascade lnterlocal Contract
Amended and Restated
October 26, 2011
Date:
Date:
359
.f
UTILITIES COMMITTEE Meeting Minutes
November 15, 2011— 5: 00 p.m. Conference Room 1
Citv of Tukwila
Utilities Committee
PRESENT
Councilmembers: De'Sean Quinn, Chair; Dennis Robertson and Kathy Hougardy
Staff: Bob Giberson, Frank Iriarte, Robin Tischmak, Pat Brodin, Ryan Larson, Mike Cusick,
David Cline, Gail Labanara and Kimberly Matej
CALL TO ORDER: The meeting was called to order at 5:02p.m.
I. PRESENTATIONS
No presentations.
II. BUSINESS AGENDA
A. Consultant Selection and Agreement: 2012 Annual Small Drainage Program,
Staff is seeking approval to enter into a consultant agreement with KPG, Inc. in the amount of $64,945.76
for design services for the City's 2012 Annual Small Drainage Program.
KPG was chosen from the City's consultant roster (Municipal Research and Services Center Rosters), and
has designed the Annual Small Drainage Program since 1991. Staff commented that construction of two
2011 Small Drainage projects were delayed, and the construction of these 2011 projects will be combined
with construction of the 2012 projects.
The five projects listed below have been identified for construction in 2012 through maintenance and citizen
concerns:
Gilliam Creek Southcenter Boulevard Street crossing
Pipe repairs near the intersection of South 128`" Street and 37` Avenue South
Tukwila Parkway Outfall Pipe
Ryan Hill Pipe repairs
Fort Dent Outfall improvements
Through this design services agreement, KPG, Inc. will be able to tell the City the most cost effective way
to approach and construct these projects. UNANIMOUS APPROVAL.FORWARD TO NOVEMBER 28
COW FOR DISCUSSION.
B. Interlocal Contract Amendment: Cascade Water Alliance
Staff is seeking Council approval to amend the current interlocal agreement with Cascade Water Alliance
(CWA) which changes the calculation of administrative dues /costs from $1,000,000 or 5% of CWA's
annual revenue requirement to 9 It also allows this limit to be amended by a 65% dual majority vote of
the CWA Board. A dual majority requires a majority of votes according to two separate criteria in this
case it refers to a vote of the members and a vote based on demand shares.
As mentioned above, this amendment essentially reallocates member costs based on demand shares.
Tukwila will see an increase of approximately $60,000 in annual administrative costs which is a pass
through directly onto the ratepayers. The Committee requested that staff include the original administrative
costs along with the new costs in the memo that goes to full Council. They also requested additional
information from CWA that would explain the implications of the amendment in greater detail.
It was suggested that the Committee consider reviewing CWA Board minutes when information and /or
decisions pertain to Tukwila. UNANIMOUS APPROVAL. FORWARD TO NOVEMBER 28 COW
FOR DISCUSSION.
361