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HomeMy WebLinkAboutRes 1339 - Interlocal Agreement - Join Interim Water Group 1908 it o Washington Resolution No. 1339 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF TUKWILA, WASHINGTON, AUTHORIZING THE MAYOR TO EXECUTE AN INTERLOCAL AGREEMENT TO JOIN THE INTERIM WATER GROUP. WHEREAS, three caucuses representing the King County Water Alliance, the City of Seattle and the Suburban Cities Association (the "Tri- Caucus have met since 1993 to discuss and to propose action with regard to the future of water supply and planning for the region; and WHEREAS, the Tri- Caucus has reached agreement on several key issues as memorialized in the Regional Water Supply Governance Accord dated March 24,1993; the Resolution of Intent Regarding Regional Water Supply Governance dated December 8,1993; the Water Governance General Agreement of Principles dated December 14,1994; and most recently, the Principles Regarding the Relationship Between Seattle and the New Entity and Guiding Vision statement dated August 30,1995 which defines the relationship between the City of Seattle and a proposed new water supply governance organization "New Entity and WHEREAS, certain parties desire to create an interim group by interlocal agreement composed of water purveyors and other interested municipalities to focus on the organizational and financial structure of the New Entity; and WHEREAS, the purpose of such interlocal agreement is to provide a mechanism for the accumulation of financial resources to retain professional assistance for the purpose of developing a framework for the New Entity, negotiating a final agreement between Seattle and the New Entity, developing financial date to assess impacts of various proposals, provide a focus for negotiations with Tacoma on the Second Supply and to assist in implementing and carrying out the principals agreed to by the Tri- Caucus; and WHEREAS, the City of Tukwila desires to participate as a member of the Interim Water Group pursuant to said interlocal agreement; NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF TUKWILA, WASHINGTON, HEREBY RESOLVES AS FOLLOWS: Section 1. The Mayor is authorized to execute that certain Interlocal Agreement for the Interim Water Group. PASSED BY THE CITY .COIU�NCIL OF THE CITY OF TUKWILA, WASHINGTON, at a regular meeting thereof this /5 day of 1995. G 5l Allan Ekberg, Council Presidej' ATTEST /AUTHENTICATED: Oj ae E. Cantu, City Clerk APPROVED AS TO FORM: By* D' L� Office o the City Attorney Filed with the City Clerk: a Passed by the City Council: a 8 S Resolution Number 1,33 y ".^`..�''v.\� \T';C` v.- ;.w.`� w- y!vri•4�i w Seattle NVater Purvevor Cornmittee WooLn.illc Watcr Dis•, ct dmd Assist.. P hil PeLne P. O. Box 1-,90 F acne (�0G) ;S3 -5104, 1 i l woociimalc, \vA 98072-13,90 aX (206) 4Se -9: i ieyor Committee lair: Bob Bandarra PURVEYOR FULL COMMITTEE ice- Chair: M I N U T E S Lloyd warren �reta.ry[rreasurer SEPTEMBER 21, 1995 Michal McAllister 1. CALL TO ORDER The meeting was called to order at 7:02 pm by Chair, Bob Bandarra 2. ADDITIONS OR DELETIONS TO THE AGENDA None 3. APPROVAL OF AUGUST 17, 1995 MINUTES Motion: Approve Minutes Moved: Harshman 2nd: Skahan All ayes Motion passed 4. CHAIRMAN'S REPORT a. Joint Facilities Agreement At the Executive Board meeting that took place before this meeting, the discussion centered around the Joint Facilities Agreement, the New Entity, and other options. The Contract and Legal Committee met on the 20th and the consensus was not to use the Joint Facilities Agreement at this time. The purveyors are requesting that Seattle negotiate with Tacoma in the purveyors interest. If Seattle is willing to do this, the purveyors would agree to hold Seattle Water District harmless. Bob introduced Cliff Harshman, chair of the Contract and Legal Committee, to report on that committee's meeting on the 20th. Cliff reported that the discussions boiled down to four options. QQp would be for the pu rac.eyors to w rite an int ��areemen�t amono themselves in order to be able to negotiate with Tacoma. Because Tacoma has requested 2.1 million dollars, the committee discussed two other ways of doing this. One way discussed was to go through an amenoDieit to the contract w ith Seat tle that provides for Joint Facilities in which any member of the purveyors can contract with Seattle to have a project undertaken. The t hirri ti ilri bra new entity that w9uld either hire a management consultant team or contract with the RWA to provide services. Sub- Commiger Chairs: Conservation: Bill Shahan Contract Cliff Harshman Nominating, Rules Admin.: Gtullemette Regan Plaru ing%�n netirin2: Scott Thomasson The fourt is not to do anything and let Seattle handle this as they may. This would mean waiting till 20 and then renewing the contract with Seattle, whatever that contract may be. This would include much higher water rates. Bob reminded the agencies present that every agency has their own contract with Seattle and they need to fully investigate the altematives to doing nothing and signing a new contract with Seattle in 2012. Glen Rose reported on the informational meeting on September 12th that was hosted by Highline. What was apparent from this meeting was the fact that there are many people who do not know what is really involved in regards to the new entity and lacked knowledge of the discussions that have taken place thus far. There was a lot of information given at this meeting regarding rates, differences between old and new water, etc., and Glen feels that this kind of information needs to be gotten out to the purveyors and districts because time is running short and a decision needs to be made. One point Bob stressed is that the neat- errtit�ould be separate from the purveyors. The purveyor committee is a separate and a distinct entity. If the new entity is formed, they would be the group that would contract and hire a management consultant, not the purveyors. There are 27 purveyors. If, for instance, 10 decide to join the new entity, that leave 17 whose interests still have to be protected at all times. If the new entity does not get off the ground, this committee still needs to make sure that the purveyor's interests are being protected. A back -up plan needs to be in place such as a Joint Facilities Agreement. Bert Lysen handed out a flyer for a meeting sponsored by the Suburban Cities and King County Water Alliance which will be at 5:30 pm 9127 in Kirkland. In addition to an overview of the Tri- Caucus action, the agenda will be to discuss the intedocal agreement; to obtain input on water supply governance changes; to create an Interim Water Group; and to determine financial resource options. Bert also handed out a draft Intertocal Agreement for the Interim Water Group and a draft By -Laws for the Interim Water Group (both documents attached). Guillemette Regan asks that a straw vote be taken to determine who might consider joining the interim group to discuss the feasibility of a new entity. There was a large show of hands. Scott Thomasson opened up a discussion of what he saw as the benefits of having Seattle produce a new contract as soon as possible. His premise would be that the various agencies would then be able to compare the benefits of the new entity with the benefits of a revised contract and would be better able make a oecisien. Ron Speer also concurred. At this time Diana Gale, Superintendent of Seattle Water, and Ernie Dunston, Purveyor Liaison with Seattle water, joined the meeting and tree discussion continued. Diana reported that there is a policy committee working on the current issues, mostly CIP, but it is'too early to say what those will be. She w',:i be going to the City Council at the end of the month with a proposal to pay another 2.1 m.11ion dollars to Tacoma to stay in the Tacoma Iniertie project. That would be for final design. Seattle feels that all of this can be transferred to the purveyors at a later date but they need to make the financial commitment to the project now. Scott Thomasson and Ron Speer took this time to reiterated their concerns of not having a contract with Seattle to compare with the new entity o io Diana stated that a part of the agreement with the Tri- Caucus Seattle is committed to the concept of the new entity..lf the perception at this time was that Seattle was going to offer the purveyors a contract, it would appear that Seattle was not creating a level playing field. Glen Rose stated that the purveyors and cities need to understand these issues by coming to as many meetings as possible. Sea h as said-2)at thev s ULm4 rnmm itted t the nPw entity process and after 2012, the amount of water that ;-c available now because they are going 16 be taking care of their own problems after that dates Diana passed out a copy of the September 21, 1995 issue of Seattle Water Leak. This contains the most asked questions about the governance process that she is asked and answer them. They have been included in these minutes to become a permanent part of the record due to their importance. 1) What is the Tri- Caucc;s7 The Tri- Caucus is composed of representatives from three caucuses: 1) suburban cities; 2) water district; and 3) Seattle, who have been working for the last three years to establish a new institutional framework for making regional water decisions and for developing new sources of water supply. 2) How long have the governance talks been going on? Formal facilitated governance discussions started in 1992 with interim agreements reached in 1992, 1993, and 1994. The latest Agreement on Principles was signed this August (1995). 3) When you speak of a "new regional water supply what is the geographical areal Membership in the New Entity will be open to all jurisdictions within the King County urban service area, to all of Seattle's current contract purveyors, and to other jurisdictions at the discretion of the New Entity. 4) Was the Agreement of Principles signed by district and city staff or elected officials? The agreement was signed by elected officials representing Seattle, suburban cities and water districts. 5) Will the New Entity control the regional water supply? When the New Entity forms, it will be responsible for developing new sources to support the growth of its members. Baseline water will be provided to the New Entity under long -term contract with the City of Seattle. Seattle will convey its financial interest in Tacoma's Second Supply Project to the New Entity. Seattle will retain control over its Tolt, Cedar and Highline investments. 6) Is Seattle trying to get out if its contracts with purveyors? No. Seattle entered into the governance process with an expressed intention of crafting an arrangement which did a better job of representing purveyor interests while still protecting its own interests. Purvey interests, as expressed through their representation on the suburban cities and water district caucuses, have developed the concept of the New Entity as a vehicle for gaining greater control over their future water development plans. Seattle elected officials supported the formation of the New Entity and the underlying Principles of Agreement, provided a 75% majority of individual purveyors (on the basis of water sales) support the New Entity and the agreement we have negotiated. 7) What will happen to nay purveyors who do not sign with the new Entity? Seattle recognizes h has contractual commitments with purveyors until the year 2012. Any purvey who decides not to join the New Entity will continue to receive water from Seattle under current contract terms until 2012. Creation of the New Entity requires membership of purveyors representing at least 75% of water consumption by the purveyors. Assuming that the New Entity does form, then Seattle will no longer have wholesale water to sell to purveyors and, therefor, will not extend contracts beyond 2012. 8) 1 currently receive 100% old water. What will happen to my water costs? That remains to be determined. One of the responsibilities that lies ahead for the New Entity is to determine how the costs of water supply will be allocated among New Entity 3 members. \•'Whether a current Seattle purveyor who receives 100% old water will continue to receive similar treatment under the New Entity is a decision to be made by the New Entity. It is important to point out that over the next ten vears, the cost of old water will increase because of the capital expenses required to assure water quality. 9) What happens to my old water allowance? That remains to be determined. Whether a current Seattle purveyor who receives an old water allowance will continue to receive that allowance under the New Entity is a decision to be made by the New Entity. 10) At what point will the New Entity become a reality? It is anticipated that it will take Seattle and New Entity representatives the better part of a year to spell out the contractual details associated with the sale of water from Seattle to the New Entity. During this same time frame, New Entity representatives will be attempting to determine such issues as organizational structure, membership requirements, voting weights, etc. It is very likely that legislation will have to be proposed at the state level to authorize the New Entity to issue debt on behalf of its members. The earliest this enabling legislation would take place would be in 1997. New Entity representatives will have a two year time frame in which to gamer purveyor membership at a 75% or greater level of current wholesale consumption by Seattle purveyors. The "trigger point" for the start of this two year time frame is a negotiated agreement between Seattle and the New Entity that has been agreed to by their respective representatives. The 75% level of participation is a requirement that must be met. Those purveyors who join early will be allowed to resume all of their legal rights and duties under the current water supply contracts if membership in the New Entity does not reach the threshold level within two years following the creation of the New Entity. 11) Will purveyors be force to join the New Entity? No. Purveyors may retain their contractual rights with Seattle until 2012 should they choose to do so. Each purveyor must decide whether the New Entity will provide them with a package of services and benefits that meet their long -term needs. There is no requirement that purveyors join the New Entity. However, if the Nev. Entity does form, under the Principles of Agreement, Seattle would not have any wholesale water to sell to purveys after 2011. 12) Is Seattle planning to get completely out of the wholesale water business? If creation of the New Entity is accomplished, then Seattle will sell wholesale water to the New Entity. In addition, Seattle will continue to sell wholesale water to current purveys who decide not to join the New Entity until contract expiration in 2012. After 2012, assuming a New Entity is formed, Seattle will sell firm water only to its direct service customers and to the New Entity. After 2012, all firm water above and beyond that needed by Seattle's direct serve customers will be sold to the New Entity. Seattle retains the rights at all points in time to sell wholesale non -firm water. 13) The Seattle/Water Purveyor Contract expires in 2012. What will happen to purveyors who choose not to join the New Entity? Purveyors who decide not to join the New Entity will continue to receive water from Seattle under the current terms of their contract until 2012. After contract expiration, if the New Entity successfully forms, Seattle will sell only to its direct service customers with the New Entity agreeing to purchase off of Seattle' firm water above and beyond that amount. In short, it the New Entity is successful, then Seattle sells wholesale water only through the Nev; EEntity after contact expiration and purveyors must either meet their own supply needs or get their water supply needs met through the New Entity or another supplier. 14) If the New Entity doesn't form, will Seattle renew existing purveyor contracts? Because of numerous contractual improvements that could be made to benefit both sides, Seattle will not renew existing purveyors' contracts in their present form if the New Entity fails to form. However, this is not to say that Seattle will not consider the 4 development of new purveyor contracts, which do a better job of representing the interests of all parties. In addition, should the New Entity fail to form, there may be terms in the current contracts which could be renegotiated between now and 2012 to the benefit of all parties. Under any scenario, should the New Entity not form, Seattle recognizes its responsibility to be a regional partner in water supply. 15) Will Seattle leave purveyors "high and dry" after 2012 if the New Entity does not form? No. In the absence of a New Entity or some other water supplier who could meet purveyor needs, Seattle would continue to have an ongoing relationship with purveyors, although the specifics of those relationships could change significantly. Seattle has had long- standing and productive relationships with many of the purveyors for decades. It is not in Seattle's best interest to isolate itself and turn its back on pressing issues of regional importance. 16) Cana purveyor who chooses not to join the New Entity initially join after 2012? If yes, under what conditions? The likely answer is yes, although the terms conditions of entry are currently unknown and will have to be established by the New Entity. It's possible that the New Entity will establish a "latecomers fee.' 17) What does the New Entity have to offer that we are not getting or cannot get from Seattle? This question is most appropriately answered by representatives of the New Entity. 18) Ar what point will New Entity costing /pricing information be made available to purveyors? This question is most appropriately answered by representatives of the New Entity, but because the Principles of Agreement are substantially different than current wholesale contracts, a new price structure will need to be negotiated. 19) I understand that cost increases are inevitable, and these increases will be substantial due to the CIP projects being planned by SeatfJe. How will New Entity costs compare with Seattle future costs? Current estimates indicate that Seattle Direct Service rates will double over the next ten years if the roughly $700 M in capital projects are implemented. Purveyors can project their own rate increases accordingly. If the New Entity forms, its hare of the costs of these projects will be passed on to it through its water sales arrangement with Seattle, It'is clear that purveyors rates will be going up whether purveyors stay with Seattle or go with the New Entity. What is unclear is what additional costs may need to be borne by New Entity members as a condition of establishing a New Entity. 20) 1 understand that new Entity will have a two -year window in which to gain a purveyor membership equaling 75% of the total water sales of all of the current contracted purveyors. When does this two-year window start? The "trigger point' for the start of this two year time frame will be a negotiated agreement between Seattle and the New Entity that has been agreed to by their respective representatives. It is anticipated that the terms of such a water sale arrangement will take the better part of a year to negotiate. 21) Under the New Entity arrangement, will their be any constraints on individual purveyors developing their own sources of supply? This question in most appropriately answered by representatives of the New Entity. 22) What are the next steps in this process? Over the next year Seattle representatives and New Entity representatives will work to develop a water planning framework as well as a water sales agreement. In addition, New Entity representatives will be working on 5 developing the organizational structure and internal workings of the New Entity as well as producing materials that help explain this new institutional agreement. 23) Are Seattle's elected officials commixed 100% to the New Entity becoming a reality? Seattle.entered into the governance process with an expressed intention of crafting an arrangement which did a better job of representing purveyor interests while still protecting Seattle's interests. Purveyor interests, as expressed through their representation on the suburban cities and water district caucuses, have developed the concept of the New Entity as a vehicle for gaining greater control over their future water development plans. Seattle elected officials support the formation of the New Entity as a vehicle for gaining greater control over their future water development plans. Seattle elected officials support the formation of the New Entity and the underlying Principles of Agreement, provided a 75% majority of individual purveyors (on the basis of water sales) support the New Entity and the agreement we have negotiated. b. Second Supplyline Purveyors Commit-tee Participants Diana would like more than one representative from the purveyors to attend the negotiation meetings with Seattle and Tacoma because there will be a lot of time commitment involved. These meetings will take place on the 16, 17, and 18 of October. These meetings will be regarding the second supply pipeline negotiation participants. The meetings have been 2 hours approximately every 2 days. The main issues on the tables are 1) how much water, 2) when will this happen, 3) how much money. When Tacoma has the answers they may want to re- negotiate with South King County. Seattle water wants a fairly long -term commitment and steady water. The Department of Ecology wants public hearings to be held concerning Tacoma's 404 permit. This would take about 2 months to complete. Seattle is looking at next February or March for Tacoma's decision. Motion: For the following four people to represent the purveyors at the negotiations with Tacoma; 1. Keith Harris, Highline Water 2. 1 Canter, Cedar River 3, Cliff Harshman, Mercer Island 4. Lloyd Warren, City of Bellevue Moved: Ron Speer 2nd: Scot'. Thomassen All ayes c. Contract Engineers for C!P Bob reported on the DEO (Design Build- Operate), or privitizstion concept for the Tot, Filtration Plant. This wasn't the recommerrdatiou back in 1993 when the financial analysis was made. Bob asked Dave Parkinson from Seattle Water why this is being considered. Dave went to the Planning and Engineering Committee with a report. Seattle has been interviewing firms to do privil;zation. Seattle is being educated as to the benefits of privitazation as it pertains to the filtration plant. As to the number of firms who are interested in this opportunity, it became apparent that the purveyors needed someone on a more regular basis to look out for their interests. Bob approached Diana Gale with the suggestion that the purveyors need a full time engineer commitment and these fees could be charred back tc the pu;veyors balance acc, unt. Motion: For the Planning and Engineenng Committee to move forward and develop a Scope of Wort:. 6 Draft By -Laws 2 Interim Water Group 3 4 Article I Name, Purpose and Objective s 6 Section 1.1. The name of the organization shall be the Interim Water Group "Group 7 The registered office of the Group shall be the address of the Chair of the Group. s 9 Section 1.2. The purpose of the Group is to bring together interested cities and 10 districts (special purpose districts) which are potentially impacted by proposed changes 11 in regional water supply governance; to provide a mechanism for the accumulation of 12 financial resources; to retain professional assistance for the purpose of developing a 13 framework for the New Entity and to develop financial data to assess impacts of various 14 proposals; to negotiate a final agreement between Seattle and the New Entity;,to 15 provide a focus for negotiations with Tacoma on the Second Supply; and to assist in 16 implementing and carrying out the principles agreed to by the Tri- Caucus. 17 18 Section 1.3. The Group shall work closely with the Tri- Caucus to insure that any work ri 19 products are consistent with the principles and vision adopted by the Tri- Caucus. In 20 addition, the Group will communicate on an on -going basis with the Seattle Water 21 Purveyors Committee, and Regional Water Associations within King.County. 22 23 Article II Membership 24 25 Section 2.1. Membership in the Group shall be open to cities and districts within King 26 County and other cities and districts which are currently contracted water purveyors of 27 the Seattle Water Department. Interim Water Group By -Laws 11121/95 Draft 1 28 Section 2.2. Membership shall be effective upon signing of the Interlocal Agreement 29 for the Interim Water Group "Interlocal Agreement') and receipt by the 30 Secretary/Treasurer of any required new member fees, dues, or assessments. 31 32 Section 2.3. Except as provided for in the Interlocal Agreement, membership in the 33 Group may be terminated by a member at any time by giving 60 days written notice. 34 Upon termination the member shall remain obligated for any outstanding and 35 committed dues and assessments approved and assessed by the Board. No dues and 36 assessments previously paid will be refunded. 37 38 Article III Board 39 40 Section 3.1. The Group shall be governed through a Joint Board "Board which shall 41 be composed of one representative of each member of the Group. 42 43 Section 3.2. The representative to the Board from each member may be an elected 44 official, staff member, or other person duly authorized by the member. If requested by 45 the Board the representative shall produce written documentation to verify that the 46 member city or district has authorized the representative to represent the member on 47 the Board. Members may change their representative to the Board at any time and 48 may designate alternates who may serve in the absence of the designated 49 representative. 50 51 Section 3.3. The Board shall have the right to manage all the affairs and interests of 52 the Group. 53 54 Section 3.4. From time to time the Chair may appoint special committees to assist in 55 carrying out the business of the Board. Participants on special committees need not be Interim Water Group By -Laws 11/21/95 Draft 2 56 representatives to the Board. Special committees shall report to the Board. 57 58 Article IV Dues and Assessments and Voting 59 60 Section 4.1. The Board from time to time may propose dues and assessments which 61 shall be assessed against members in order to accomplish work efforts consistent with 62 the objectives of the Group and to cover expenditures anticipated in the approved 63 budget. 64 65 Section 4.2. The Board shall propose dues and assessments based upon an equitable 66 basis determined by the Board. Within 60 days of written notice of such proposals 67 members shall notify the Board in writing of the member's commitment to such dues or 68 assessments. Commitments may be for all or any portion of the proposed dues or 69 assessment. If no written commitment is received by the Board within the 60 day time 70 period, the Board shall assume that the member has made no commitment for any 71 portion of the proposed dues and assessment. Commitments shall be binding upon the 72 members. The Board may solicit voluntary contributions from members to meet 73 additional needs resulting from uncommitted portions of dues and assessments. 74 Voluntary contributions are those portions of dues or assessments that members 75 choose not to pay, and therefore are made available to other members. Voluntary 76 contributions shall be accepted by the Board from members in order of size, from the 77 smallest to the largest, based upon average annual retail water sales for the previous 78 calendar year. 79 80 Section 4.3 Upon a commitment to pay the proposed dues or assessment as provided 81 for in Section 4.2, members shall have 60 days from the date of commitment to pay 82 dues and assessments. A w o is inquent a-nd 83 T ership of Interim Water Group By -Laws 11/21/95 Draft 3 84 may- r who is del inquenT�n pdyiny its committed dues ano asp 85 C- 86 Section 4.4. All decisions of the Board shall be by note of the Board. Voting shall be 87 based upon each member having one vote, provided that any representative present 88 may call for a weighted vote. For weighted votes each member shall have a total of 89 one vote for each dollar paid to the Group for any fees, dues, or assessments. 90 91 Section 4.5. Upon dissolution of the Group all assets remaining after all obligations are 92 satisfied shall be distributed among members at the time of dissolution in proportion to 93 all fees, dues, assessments, and voluntary contributions paid to the Group by individual 94 members to those fees, dues, assessments, and voluntary contributions paid by all 95 remaining members. 96 97 98 Article VI Officers 99 loo Section 5.1. The officers of the Group shall consist of the Chair, Vice Chair and 101 Secretary/Treasurer. Terms of office shall be for one year. Elections shall occur in 102 January and those elected shall take office upon the date of the election. Officers must 103 be Board representatives. Any representative may nominate a candidate. 104 105 Section 5.2. The Chair and Vice Chair shall not both be from a city or both from a 106 district. 107 108 Section 5.3. Vacancies in any office shall be filled by a majority decision of the Board at 109 the next regular meeting and the officer appointed, to fill the vacancy shall serve to the 110 end of the unexpired term. 111 Interim Water Group By -Laws 11/21/95 Draft 4 112 Section 5.4. The respective duties of the officers of the Group shall be: 113 114 Chair Preside, at meetings; determine the location and program for each 115 meeting; appoint and assign duties and responsibilities to special committees as 116 necessary; and sign resolutions and contracts as authorized by the Board. 117 118 Vice Chair Act in the absence of the Chair; act as the Board liaison to special 119 committees; and carry out other duties as assigned by the Chair. 120 121 Secretary/Treasurer Insure the recording and circulation of minutes of 122 meetings; insure the proper notification of meetings; send notices of proposed 123 dues and assessments to members; authorize disbursements for expenditures 124 approved by the Board; file all necessary reports and records required by law; 125 and make reports at Board meetings as to the status of the treasury. 126 127 Article VI Meetings 128 129 Section 6.1. Meetings of the Board shall occur on a periodic basis in order to carry out 130 the business of the Group. Regular and special meetings shall be called by the Chair. 131 The Chair shall be obligated to call a special meeting within two weeks of the written 132 request of three (3) members. The Chair shall be obligated to include agenda items on 133 the next scheduled meeting if so requested by at least three (3) members. Written i34 notice of meetings shall be mailed to members at least seven (7) days prior to any 135 meeting, provided, however, in an extraordinary or emergency situation, the Chair, with 136 concurrence of the Vice Chair, may waive the seven day notice provision and shall 137 have the discretion of notifying members of a meeting by telephone or fax. 133 139 Section 6.2. The most recent edition of Robert's Rules of Order shall apply at any Interim Water Group By -Laws 1121/95 Draft 5 140 meeting of the Group. 141 142 Section 6.3. To constitute a quorum for the transaction of business at a meeting of the 143 Board, it shall be necessary to have at least 50 percent of the total number of 144 members. 145 146 Article VII Amendment of By -laws 147 148 Section 7.1. These by -laws may be amended by a decision of the Board. Any 149 proposed amendment shall be presented by the Chair or any member at a meeting of 150 the Board and then may be voted at the next meeting of the Board. A proposed 151 decision on any amendment shall be identified in the notice of the meeting at which 152 such a decision will occur. 153 154 Section 7.2. These by -laws shall be liberally construed to effectuate the purpose set 155 forth herein. If any word, phrase, clause, sentence, paragraph, section or other part of 156 these by laws, or the application thereof to any member, person or circumstance, shall 157 ever be held to be invalid or unconstitutional by any court of competent jurisdiction, the 158 remainder of these by -laws and the application of such work, phrase, clause, sentence, 159 paragraph, section or other part of these by -laws to any other person or circumstance 160 shall not be affected thereby. Passage of amendments to these by -laws requires a 161 60% affirmative vote by representatives present. 162 163 PASSED AND APPROVED THIS day of 1995 164 1 Gc�a. s L J r is J 165 YV r 166 Q 5 �P CGi.��c c\ Caw r' 167 �o Interim Water Group By -Laws 11121/95 Draft 6 1 Interlocal Agreement for the Interim Water Group 2 3 WHEREAS, three caucuses representing the King County Water Alliance, the 4 City of Seattle and the Suburban Cities Association (the "Tri- Caucus have met since 5 1993 to discuss and to propose action with regard to the future of water supply and 6 planning for the region; and 7 WHEREAS, the Tri- Caucus has reached agreement on several key issues as 8 memorialized in the Regional Water Supply Governance Accord dated March 24, 1993; 9 the Resolution of Intent Regarding Regional Water Supply Governance dated 10 December 8, 1993; the Water Governance General Agreement of Principles dated 11 December 14, 1994; and most recently, the Principles Regarding the Relationship 12 Between Seattle and the New Entity and Guiding Vision statement dated August 30, 13 1995 which defines the relationship between the City of Seattle and a proposed new 14 water supply governance organization "New Entity and 15 WHEREAS, the undersigned parties desire to create an interim group by 16 interlocal agreement composed of water purveyors and other interested municipalities 17 to focus on the organizational and financial structure of the New Entity; and 18 WHEREAS, the purpose of this interlocal agreement is to provide a mechanism 19 for the accumulation of financial resources; to retain professional assistance for the 20 purpose of developing a framework for the New Entity and to develop financial data to 21 assess impacts of various proposals; to negotiate a final agreement between Seattle 22 and the New Entity; to provide a focus for negotiations with Tacoma on the Second 23 Supply; and to assist in implementing and carrying out the principles agreed to by the 24 Tri- Caucus; and Interim Water Group Interlocal Agreement 6y,-- 11/21 /95 nQ�o J ac �\P C 01 -�b 25 WHEREAS, this Agreement is entered into by the undersigned parties, 26 municipal corporations organized under the laws of the State of Washington, pursuant 27 to the Interlocal Cooperation Act, chapter 39.34 RCW, and has been authorized by the 28 legislative bodies of each jurisdiction; Now Therefore, 29 It is hereby agreed by the parties as follows: 30 1. Purpose. The purpose of this agreement is to bring together interested 31 municipalities which are potentially impacted by proposed changes in regional water 32 supply governance and to provide a mechanism for the accumulation of financial 33 resources in order to retain professional assistance for the purpose of developing a 34 framework for the New Entity, to negotiate a final agreement between Seattle and the 35 New Entity, to develop financial data to assess impacts of various proposals, to provide 36 a focus for negotiations with the City of Tacoma on the Second Supply and to assist in 37 implementing and carrying out the principles agreed to by the Tri- Caucus. 38 2. Organization. This agreement does not establish a separate legal entity 39 but rather creates an administrative entity to be known as the Interim Water Group 40 Group which shall act at the direction of a board comprised of representatives from 41 each of the parties to this agreement. The'Interim Water Group shall perform purely 42 administrative functions and except as otherwise noted herein, no power or authority to 43 act on behalf of or in the stead of the undersigned parties is delegated to the Interim 44 Water Group. 45 3. Governance. Governance shall be through the Joint Board "Board 46 as provided in the By -Laws of the Group. The By -Laws shall include but not be 47 limited to, provisions governing representation,' meetings, voting requirements /quorum, 48 notice, officers and terms and provisions concerning the membership, responsibilities, Interim Water Group Interlocal Agreement 11/21/95 2 49 organization and procedures of the Board. The initial By -Laws shall be adopted by the 50 Board and may thereafter be amended by a vote of the Board. The By -Laws may 51 provide for a weighted vote method related to assessments and /or financial 52 contributions. 53 4. Duration. This Agreement shall remain in effect until December 31, 1997 54 unless earlier terminated or amended pursuant to Section 8. 55 56 5. Finances. 57 a. Budget. The Board shall adopt a budget. The budget shall include 58 projected expenditures reasonably necessary to achieve the Group's purposes 59 and may include staff compensation and staff support, as well as compensation 60 for professionals hired by the Group. Because the monetary needs of the Group 61 may not be foreseeable for any annual period and because 62 contributions /assessments of the parties may occur at various times, the budget 63 may be amended as needed by the Board. 64 b. Dues. Assessments and Membershio Fee. To fund the budget, 65 the parties may agree to commit to paying dues and assessments as 66 recommended by the Board or make voluntary contributions. In addition, a one 67 time new member fee shall be paid by parties to this agreement as a 68 requirement of membership. This fee shall be non refundable. The new 69 member fee shall be an amount equal to the product of $1000 times the 70 member's average annual retail water sales for the previous calendar year 71 measured in million gallons per day (mgd) to the nearest tenth of an mgd, not to 72 exceed $2500. O C, Interim Water Group Interlocal Agreement 11121/95 3 1 YYro t 73 c. Saecial fund. The Group shall establish a special fund with one of 74 the parties to this Agreement for the purpose of administering all funds of the 75 Group, which fund shall be designated the "Operating fund of Interim Water 76 Group Joint Board." 77 d. Credits. When developing agreements forming the New Entity the 78 Board shall consider and implement ways to provide parties to this agreement a 79 credit for all fees, dues, assessments, and voluntary contributions paid to the 80 Group if at a later date the member joins the New Entity. 81 6. Staffina and Contractinq. The Board shall have the authority to enter into 82 contracts in order to carry out the purposes of this Agreement including, but not limited 83 to, contracts to provide desired administrative, consulting, and professional services. 84 The parties may lend or otherwise provide staff support to the Group. Reimbursements 85 may be made to members providing services to the Group based upon a defined work 86 product and cost approved by the Board. 87 7. Limitations. 88 a. The Board may not take any actions or make any decisions until at 89 least ten cities and/or districts have become a party to this agreement. 90 b. By becoming a party to this Agreement, no member has committed 91 itself to participate financially beyond the dues, assessment, or membership fee 92 provisions set forth herein or any voluntary contributions such member may 93 make to the Group. 94 C. By becoming a party to this Agreement no member thereby Interim Water Group Interlocal Agreement 11/21/95 4 95 obligates itself to join or otherwise become a member of the New Entity or to 96 forego or otherwise alter its current water purveyor contract with Seattle. 97 d. This Agreement shall not constitute a delegation of any of the 98 powers of the individual parties to the Group. 99 e. The Group and its Board shall not enter into agreements or take 100 actions which are inconsistent with the purpose and authorizations set forth in 101 this Agreement. 102 f. The Board shall not incur debt or obligations beyond the financial 103 resources that have been committed to and received from members. 104 8. Amendment and Termination. 105 106 a. Amendment. This Agreement may be amended by written approval 107 of the parties. 108 b. Termination. This Agreement may be terminated at any time by a 109 vote of the Board. Upon termination, all obligations of the Group shall be paid 110 and any assets of the Group shall be distributed to the parties pursuant to a 111 distribution formula established in the By -Laws based on fees, dues, 112 assessments and voluntary contributions of the parties. 113 9. Limitation of Liabilitv. Neither the members of the Group nor its 114 Board or officers shall be individually liable for any debts or obligations of the Group. 115 Each member shall be obligated to contribute to the Group only those amounts 116 determined pursuant to the procedures set forth in the By -Laws. Interim Water Group Interlocal Agreement 11/21/95 A 5 117 10. Withdrawal. Any member withdraw from this Agreement by giving at least 118 60 days written notice to the Board of its intention to terminate membership. in 119 addition, any member may withdraw by giving written notice within 60 days after 120 receiving notice of any proposed dues or assessments without obligation to pay the 121 proposed dues or assessments. Upon withdrawal from this Agreement, a previous 122 member shall not be entitled to a refund of any dues, assessments, fees or any other 123 contributions, nor shall it be relieved from paying dues or assessments which have 124 been committed to by the member. 125 126 12. Filing. This.Agreement shall be effective upon filing with the King County 127 Records and Elections Division, the Secretary of State, and the clerk of each member 128 hereto. 129 13. Counterparts. This Agreement may be signed in counterparts and, if so 130 signed, shall be deemed one integrated Agreement. 131 IN WITNESS WHEREOF, this Agreement has been executed by the undersigned party. 132 on the date set forth below: 133 By 13 4 135 Dated: Interim Water Group Interlocal Agreement 1121195 6