HomeMy WebLinkAboutUtilities 2007-02-06 COMPLETE AGENDA PACKET City of Tukwila Utilities Committee
Joan Hernandez, Chair
Joe Duffze
Jim Haggerton
AGENDA
Tuesday, February 6, 2007
Time: 5:00 p.m. Place: Conference Room No. 1
NO. ITEM NO. ACTION TO BE TAKEN
I. Current Agenda Review I.
H. Presentation(s) II.
III. Business Agenda III.
A. Council Chambers Remodel (Cabinetry, A. Move to Regular Council consent agenda
Carpentry and Painting) Project with recommendation to accept project
Completion and Acceptance Page 1 and release retainage.
B. 2006 Small Drainage Program Project B. Move to Regular Council consent agenda
Completion and Acceptance Page 3 with recommendation to accept project
and release retainage.
C. Water District 125 Infrastructure C. Move to Committee of the Whole for
Transfer Agreement Page 5 discussion then to Regular Council for
approval.
D. Amendment to the Sewage Disposal D. Information.
Agreement with Metro King County
Page 13
E. 2006 Fourth Quarter Report Page 23 E. Information.
IV. Old Business
Next Meeting: Wednesday, February 21, 2007
The City of Tukwila strives to accommodate people with disabilities.
Please contact the Public Works Department at 206 433 -0179 for assistance.
To: Mayor Mullet
From: Public Works Director1T)
Date: January 29, 2007 VV
Subject: Council Chambers Remodel (Cabinetry, Carpentry and Painting)
Project Completion and Acceptance
ISSUE
Accept construction contract as complete and authorize release of retainage in the amount of
$8,760.01.
BACKGROUND
RECOMMENDATION
INFORMATION MEMO
On May 11, 2006, the City entered into Contract No. 06 -057 with Corsair Construction, of
Burien, Washington, for construction of Project No. 01 -BG07. This project entailed the
complete remodel of the chambers.
Construction began on May 12, 2006, and was substantially completed on November 26, 2006.
Two change orders were issued during the contract that addressed changes in design and
materials. The final contract cost is summarized as follows:
Contract Award Amount 162,260.00
Change Order No. 1 940.23
Change Order No. 2 12,000.00
Subtotal 175,200.23
Sales Tax 8.8% 15,417.62
Total Amount Paid (incl. retainage) 190,617.85
RP:ad
attachment: Notice of Completion of Public Works Contract
(P;Projecu4\- BG Projeus101bg07 Couoml ChambrnlPmjnt Completion NIemo Cormir)
Attachment III.A.
There has been $8,760.01 in retainage withheld from the progress payments to Corsair
Construction for this contract.
All work required under this contract has been completed. It is recommended that this contract
be accepted as complete and authorize the release of retainage, subject to the standard claim
and lien release procedures.
From:
Finance Approval
City of Tukwila
6200 Southcenter Boulevard
Tukwila, WA 98188
Comments:
State of Washington
Department of Revenue
PO Box 47474
RE VENUE Olympia WA 98504 -7474
Contractor's Registration No. (UBI No.) 602 056 408
Date 1/4/07
NOTICE OF COMPLETION OF PUBLIC WORKS CONTRACT
Name Address;ef Public Agency Department Use Only
Assigned To
Date Assigned
Notice is hereby given relative to the completion of contract or project described below
Description of Contract Contract Number
Council Chambers Remodel Construction (Project 01 -BG07)
Contractor's Name
P.O. Box 66945, Burien, WA 98166
Date Work Commenced Date Work Completed
5/11/06 11/26/06
Surety or Bonding Company
CNA Surety
Agent's Address
Western Surety Company, P.O. Box 5077, Sioux Falls, SD 57117 -9954
Signature
Type or Print Name Diane Jaber
Phone Number 206 433 -1871
06 -057
Telephone Number
Corsair Construction (Russ Bjugan) 206 248 -7974
Contractor's Address
Date Work Accepted
Contract Amount 162,260.00
Additions 12,940.23 Liquidated Damages 0.00
Reductions 0.00
Sub -Total 175,200.23 Amount Disbursed 181,857.84
Amount of Sales Tax Paid at 8.8 15,417.62 Amount Retained 8,760.01
(If various rates apply, please send a breakdown.)
TOTAL 190,617.85
Disbursing Officer
TOTAL 190,617.85
The Disbursing Officer must complete and mail THREE copies of this notice to the Department of Revenue,
PO Box 47474, Olympia, WA 98504 -7474, immediately after acceptance of the work done under this contract. NO
PAYMENT SHALL BE MADE FROM RETAINED FUNDS until receipt of Depaitntent's certificate, and then only in
accordance with said certificate.
quire about the availability of this document in an alternate format for the visually impaired, please call (360) 753 -3217. Teletype
users please call (800) 451 -7985. You may also access tax information on our Internet home page at http: /dor.wa.gov.
REV 31 0020e (6- 27 -01)
To: Mayor Mullet
From: Public Works T
DirectoC)
Date: January 31, 2007 JJ�
Subject: 2006 Small Drainage Program
Project Completion and Acceptance
ISSUE
Accept construction contract as complete and authorize release of retainage in the amount of
$10,248.03.
BACKGROUND
RECOMMENDATION
T TFORiMATION MEMO
The Notice to Proceed for Contract No. 06 -073 with Dennis R. Craig Construction, Inc., of
Redmond, Washington, was issued July 24, 2006, for construction of the 2006 Small Drainage
Program, Project No. 06 -DR01. This project completed five drainage sites:
Site No. 1 West Valley Highway Outfall Repair (deleted)
Site No. 2 Strander Blvd. Outfall Repair
Site No. 3 Christensen Road Outfall Repair
Site No. 4 South 143` Street Outfall Repair
Site No. 5 Interurban Ave. Drainage Swale Re- grading
Site No. 6 Southgate Creek Driveway Removal
Attachment III.B.
This contract was totally complete on December 31, 2006. No change orders were issued.
The unit price bid quantity underruns were primarily due to better than anticipated subgrade
soil conditions.
Contract Award Amount 299,693.15
Unit Bid Quantity Underruns 94,732.44)
Subtotal 204,960.71
Sales Tax 8.8% 18,036.54
Total Amount Paid (incl. retainage) 222,997.25
It is recommended that this contract be forwarded to the Tukwila City Council on the consent
agenda for formal acceptance and authorize the release of retainage, subject to the standard
claim and lien release procedures.
BG:ad
attachment: Notice of Completion of Public Works Contract
(P:Projo ts\A- DR Projats106DR0I 2006 SDPIConsm ionllnfo Memo Closeout DRCC 2006 SDP)
3
State of Washington
Department of Revenue
PO Box 47474
REVENUE Olympia WA 98504 -7474 Contractor's Registration No. I No.
g (UBI No.) 600 357 430
From:
City of Tukwila
6200 Southcenter Boulevard
Tukwila, WA 98188
Comments:
Finance Approval
Date 1/10/07
NOTICE OF COMPLETION OF PUBLIC WORKS CONTRACT
Name Address of Public Agency.
Notice is hereby given relative to the completion of contract or project described below
Description of Contract Contract Number
2006 Small Drainage Program (Project No. 06 -DR01)
Contractor's Name
Sub -Total 204,960.71
Amount of Sales Tax Paid at 8.8 18,036.54
(If various rates apply, please send a breakdown.)
TOTAL 222,997.25
Dennis R. Craig Construction, Inc. 425- 882 -2922
Contractor's Address
P.O. Box 595, Redmond, WA 98073 -0595
Date Work Commenced Date Work Completed
7/24/06 12/31/06
Surety or Bonding Company
Travelers Casualty and Surety Company of America, Bond No. 104745090
Agent's Address
HUB International Northwest, LLC, P.O. Box 3018, Bothell, WA 98041 -3018
Contract Amount 299,693.15
Additions 0.00 Liquidated Damages S 0.00
Reductions 94,732.44
Assigned To
Date Assigned
Amount Disbursed
Amount Retained
Signature
Type or Print Name Diane Jaber
Phone Number 206 -433 -1871
Department Use Only
06 -073
Telephone Number
Date Work Accepted
212,749.22
S 10,248.03
TOTAL 222,997.25
-Disbursing Officer:
The Disbursing Officer must complete and mail THREE copies of this notice to the Department of Revenue,
PO Box 47474, Olympia, WA 98504 -7474, immediately after acceptance of the work done under this contract. NO
PAYMENT SHALL BE MADE FROM RETAINED FUNDS until receipt of Departirtent's certificate, and then only in
accordance with said certificate.
quire about the availability of this document in an alternate format for the visually impaired, please call (360) 753 -3217. Teletype
users please call (800) 451 -7985. You may also access tax information on our Internet home page at http: /dor.wa.gov.
REV 31 0020e (6- 27 -01)
To: Mayor Mullet
From: Public Works Directo
Date: February 1, 2007
Subject: Water District 125 Infrastructure Transfer Agreement
ISSUE
Assumption of Water District 125 infrastructure in the Foster /Interurban and Foster Point
areas.
BACKGROUND
This issue was discussed at the January 17, 2007, Utilities Committee. As mentioned, the
transfer of the pipes, meters, services, valves, and hydrants from Water District 125 to the
City of Tukwila requires a process that will amend each of the agency's wholesale water
supply contracts. The transfer agreement will set in motion a two -part process. First, the
City would purchase the infrastructure within the budgeted CIP item for this project.
Secondly, upon approval through Cascade and Seattle Public Utilities, the City will notify
customers in advance and both the District and the City will coordinate the actual turning of
valves and transfer of the customer accounts. The entire customer base already pays for sewer
through Tukwila, so the process of adding the billing code will be faster and more efficient.
RECOMMENDATION
Move to Committee of the Whole for discussion then to Regular Council for approval.
PB:ad
(P:alice\lic 020607 WI) 125)
INFORMATION MEMO
Attachment III.C.
5
INTERLOCAL AGREEMENT
1/ 25/ 20079:29:21 AM 350037 .01135882910027]7$3901!.DOC -1-
This Agreement "Agreement is entered into by and between the City of
Tukwila, a Washington municipal corporation "City and King County Water District
No. 125, a Washington municipal corporation "District (individually a "Party" and
collectively the "Parties for the purposes set forth below.
SECTION 1: RECITALS
1.01 Pursuant to Title 57 RCW, the District owns and operates a water system
and provides water service to an area located within King County, Washington. The
District obtains its water supply through a wholesale water supply agreement from the
City of Seattle.
1.02 Pursuant to Title 35 RCW; the City owns and operates a water system and
provides water service to an area located within King County, Washington. The City
obtains its water supply from the Cascade Water Alliance "CWA
1.03 The District's corporate and water service area boundaries overlap or are
adjacent to the City's corporate boundary and water service area.
1.04 The District owns and operates a water transmission main and
appurtenances "Water Main in the area of 56th and 57th Avenues Southeast known as
Foster Point "Foster Point Area") which is located within the City's corporate and water
service area boundaries. The Foster Point Area and Water Main are depicted on Exhibit
A attached hereto and incorporated herein by this reference. The City desires that the
District now transfer ownership of the Water Main to the City for monetary and other
consideration so that the City may serve existing City water customers from the Water
Main.
1.05 The District also owns and operates water supply facilities including water
mains, meters, meter boxes and appurtenances "Water Facilities in the area east of I -5,
west of Interurban Avenue South and south to South 144th Street "Interurban Area as
depicted on Exhibit A• which is located within the District's water service area. The City
desires that the District now transfer ownership of the Water Facilities to the City for
monetary and other consideration. The City also desires that the District transfer its
water service 'customers in the Interurban Area as depicted on Exhibit A to the City so
that the City may provide water service to such customers and water service area.
However, various approvals may be required as a precondition to the District's transfer of
its customers in the Interurban Area to the City including approval by the City of Seattle,
CWA and other governmental agencies.
1.06 Pursuant to Chapter 70.116 RCW, the District and the City and other
water purveyors previously determined and agreed upon the water service areas between
the parties as set forth in the South King County Coordinated Water System Plan.
However, the Parties desire that the water service area boundary between the Parties be
modified and amended to be in accordance with this Agreement. Determining future
service area boundaries between the City and the District will provide for maximum
efficient use of existing and future facilities and orderly and efficient water system
planning.
1.07 The purpose of this Agreement is to provide for the District's transfer and
conveyance of all of its right, title and interest in the Water Main and the Water Facilities
to the City in consideration of the City's payment to the District of certain monetary and
other consideration and that the water service area boundary between the Parties be later
modified and amended to provide for the transfer of the Interurban Area to the City's
water service area.
1.08 The City and the District have the legal authority to cooperate with other
municipalities on the basis of mutual advantage and efficient provision of municipal
services pursuant to Chapter 39.34, the Interlocal Cooperation Act.
NOW, 'THEREFORE, in consideration of the terms and conditions set forth
herein, the Parties agree as follows:
SECTION 2: AGREEMENT
2.01 Upon the Effective Date of this Agreement, the District shall transfer and
convey all of its right, title and interest in the Water Main and the Water Facilities to the
City without warranty, express or implied, "as is" and "where is provided the District
shall assign to the City any warranties it may have relating to such facilities from third
parties.
2.02 In consideration of the District's transfer of the Water Main and the Water
Facilities to the City, City agrees to pay the District the amount of Two Hundred Forty
Three Thousand Six Hundred and Forty One Dollars ($243, 64 within
days of the Effective Date of this Agreement.
2.03 Following the transfer and conveyance of the ownership of the Water
Main and the Water Facilities by the District to the City, the Interurban Area shall remain
and continue to be in the District's water service area and the customers located within
that area shall continue to be the District's water service customers; the District shall have
the right to continue to bill such customers for water service provided based on the meter
readings for water service supplied from the Water Facilities to such customers; provided
that the Parties agree to cooperate to obtain all approvals necessary from the City of
Seattle, CWA and any other governmental agencies or associations (collectively
"Agency" or "Agencies with jurisdiction relating to such customers and service area to
transfer such area and customers to the City.
2.04 The City agrees to pay all costs and expenses relating to the disconnection
of the Water Main and the Water Facilities from the District's water system, the
connection of such facilities to the City's water system and to transfer the Interurban Area
1/25/ 20079:29:21 AM 350037 .0113588291002717$3901!,DOC -2-
7
8
and the District's water service customers located therein to the City's water service area,
including, but not limited to any fees, expenses, costs and charges imposed by any
Agency related to or as a condition of approving such transfer of customers or water
service area, provided the District shall provide personnel at District's expense for and to
inspect the disconnection of the Water Main and the Water Facilities from the District's
water system.
2.05 The Parties agree to cooperate to effect the purposes of this 'Agreement
and to execute any further agreements and documents required for the immediate transfer
of the Water Main and the W ater Facilities to the City and the later transfer of the
Interurban Area water. service area and the District's water customers located therein to
the City. In the even the District later transfers its customers to the City in the Interurban
Area, the City agrees to provide such customers with at least forty-five days written and
mailed notice before the date of such transfer.
2.06 The service areas and attendant rights and obligations of this Agreement
shall be included as an amendment to the Parties' respective water comprehensive plans
and any amendments thereto.
2.07 The Parties shall give notice of the adoption of this Agreement, as may be
required, to King County, the City of Seattle, CWA, the Department of Ecology, the
Department of Health, the WUUC, the King County Boundary Review Board and to any
other agency with jurisdiction.
SECTION 3: MISCELLANEOUS
3.01 Governing Law. This Agreement shall be governed and construed in
accordance with the laws of the State of Washington. If any dispute arises between the
City and the District under any of the provisions of this agreement, resolution of that
dispute shall be available only through the jurisdiction, venue and rules of the King
County Superior Court, King County, Washington.
3.02 Attorneys' Fees. In any claim or lawsuit for damages arising from the
Parties' performance of this agreement, each Party shall be responsible for payment of its
own legal costs and attorney's fees incurred in defending or bringing such claim or
lawsuit.
3.03. Assignment. Any assignment of this Agreement by either Party without
the written consent of the other Party shall be void.
3.04. Modification. No waiver, alteration, or modification of any of the
provisions of this Agreement shall be binding unless in writing and signed by a duly
authorized representative of the City and the District.
3.05. Severabilitv. If any one or more sections, sub sections, or sentences of
this Agreement are held to be unconstitutional or invalid, that decision shall not affect the
1/25/20079:29:21 A iM350037 .0113588291002717$39011DOC -3-
validity of the remaining portion of this agreement and the remainder shall remain in full
force and effect.
3.06. Entire Agreement. The written provisions and terms of this Agreement,
together with any attached Exhibits, supersede all prior verbal statements by any
representative of the City and the District, and those statements shall not be construed as
forming a part of or altering in any manner this Agreement. This Agreement and any
attached Exhibits contain the entire agreement between the Parties. Should any language
in any Exhibit to this Agreement conflict with any language co ntained in this Agreement,
the terms of this Agreement shall prevail.
3.07. Approval. Each Party shall approve this Agreement by appropriate
resolution or ordinance and provide the other Party with a certified copy of same.
below.
3.08. Effective Date. This Agreement will take effect on the last date signed
APPROVED BY Motion of the City Council of the CITY OF TUKWILA,
Washington, at is regular meeting held on the day of 2007.
1/25720079:29:21 AM 350037 .0113558291002717S3901!.DOC -4-
CITY OF TUKWILA:
By:
Its:
Date:
ATTEST:
Approved as to Form
Office of the City Attorney
By:
Its:
Dated:
CITY CLERK
9
/0
APPROVED BY RESOLUTION No. of the Board of Commissions of
KING COUNTY WATER DISTRICT NO. 125 of King County, Washington, adopted at
its regular meeting held on the day of 2007.
P Civil\ Fli1S\ OpenFi1es10968 \WaterSelviceArealntedoca .DRAFr.102005.doc
125/20079:29:21 AM 350037 .0113588291002717$3901!.DOC -5-
KING COUNTY WATER DISTRICT
NO. 125
By:
Its:
Date:
By:
Its:
Date:
Approved as to Form
Office of the District Attorney
By:
Its:
Dated:
R 5991
30I
s 148th ST.
S. 148th Sr.
(PACZ
S. 144th ST.
21
r
5
4.
FOSTER
POINT
AREA
A'EA
Exhibit A
URB
9. 142nd
SAT11E
REMOCKNO
WORKS
s8 i„je
3
TUKt41i INTI I TIE
1-1(1 a 4;21 s. 144th Sf. 4_1
of
warm. RUA
Q
T
Il
S. 147th 3P 1 1 S. 147th ST
1 93r d yr
I 1
King County
Water District
Number 125
r
PB:ad
attachment
(P:alice \UC 020607 Sewage Disposal Agreement
INFORMATION MEMO
To: Mayor Mullet
From: Public Works Directo
Date: February 1, 2007
Subject: Amendment to the Sewage Disposal Agreement between
All Suburban Agencies and Metropolitan King County
ISSUE
King County has sent an amendment to the sewage disposal agreement to the Mayor.
BACKGROUND
Attachment III.D.
The essence of amending the sewage disposal agreement between Tukwila and King County
involves the need not only to extend the existing contract but also to make changes in how the
County does their bonding, rates, and capacity charges.
Staff will provide some insight as to the feedback being received from other agencies and from
the Metropolitan Water Pollution Abatement Advisory Committee (MWPAAC).
RECOMMENDATION
Information.
13
Ron Sims
King County Executive
701 Fifth Avenue, Suite 3210
Seattle, WA 98104
206 -296 -4040 Fax 206- 296 -0194
TTY Relay: 711
www.metrokc.gov
November 21, 2006
The Honorable Steve Mullet
Mayor, City of Tukwila
600 Minkler Boulevard
Tukwila, WA 98188
Dear Mayor Mullet:
The City of Tukwila and King County are parties to a long term agreement for sewage
disposal. This agreement is in most respects identical to the agreements that King County has
with the 33 cities and sewer districts it serves in addition to your city.
By the terms of these agreements, sewage collection systems owned and operated by
individual cities and sewer districts deliver sewage and industrial waste to King County's
sewage conveyance facilities that, in turn, convey that wastewater to the county's wastewater
treatment plants. These agreements govern the service relationship between the cities and
districts and the county. Since the agreements describe the manner in which cities and districts
pay King County for sewage treatment service, they have provided important security for the
long term debt that has financed the county's regional wastewater treatment system.
Maintaining the highest bond ratings and most favorable financing terms are extremely
important as we move forward with wastewater system improvements that will continue to
protect public health and water quality. Over the next five years King County will issue more
than $1 billion in bonds to finance the major facility elements of the Regional Wastewater
Service Plan (RWSP). The RWSP was adopted by the King County Council in 1999, after
years of extensive public review. Implementation of that plan will ensure that sewage
treatment capacity continues to be available to treat sewage from your city as well as the rest
of our fast growing region.
I am enclosing for execution by the City of Tukwila three original copies of an amendment to
the existing sewage disposal agreement between the city and King County. The same
amendment is being distributed to the other cities and sewer districts the county serves. This
amendment is designed to strengthen King County's financial security as it moves forward
with the financing of the sewage conveyance and treatment facilities included in the RWSP. It
also incorporates a regionally promulgated principle regarding the cost of growth and ensures
King County is an Equal Opportunity /Affirmative Action Employer
and complies with the Americans with Disabilities Act
FIznu
The Honorable Steve Mullet
November 21, 2006
Page 2
that any future amendments to individual .agreements are made available to all agencies. More
specifically, the amendment would:
1) extend the agreement term from 2036 to 2056 (allowing 35 to 40 year debt to be
secured by the agreements);
2) permit the county to enact out of cycle sewer rate increases in emergency
situations;
3) obligate the local sewer agencies (cities and districts) to agree to any future
amendment regarding the terms for sewage disposal and payment that may be
proposed by the county and agreed to by those agencies representing, in total, not
less than 90 percent of the ratepayer base and 90 percent of the agencies;
4) memorialize in the agreements the regionally promulgated principle that the sewage
treatment capacity charge will be set at a level that, when combined with the
monthly sewer rate paid by new customers, will ensure that new customers will pay
for 95 percent of the cost of the facilities necessary to serve them; and
5) make any future agreement amendments with individual cities and districts
available to all cities and districts.
As indicated above, King County provides sewage treatment and disposal service to 34 cities
and special districts through agreements with those parties. The basic provisions of those
agreements are identical. They obligate the cities and districts to deliver to the county all
sewage and industrial waste they collect, obligate the county to accept the sewage and
industrial waste delivered to its facilities by the cities and districts, and establish the details of
paying for treatment and disposal service.
Extending the agreement term will help secure the wastewater program's planned long term
debt. The term of most agreements expires in 2036. The county has typically issued bonds
with 35 to 40 year terms. This matches debt terms with projected life of the assets being
financed. Because of the 2036 agreement expiration date, 2001 was the last year that the
county issued 35 year bonds.
When shorter term bonds are issued the repayment of the principle is compressed into fewer
years. This increases the county's monthly sewer rate and sewage treatment capacity charge.
The sewer rate and capacity charge impact of issuing less than 35 year bonds since 2001 has
not been great, but that will now change. The next three years entail the highest borrowing
levels of RWSP implementation. The recently adopted monthly sewer rate for 2007, which is
also projected for 2008, includes a $.28 cent impact for shorter term bonds in those years. The
capacity charge starting in 2008 will need to be $3.00 higher than if 35 year bonds are issued
in those years.
15
/6
The Honorable Steve Mullet
November 21, 2006
Page 3
It is a priority of mine to maximize the security for King County's wastewater debt and
maintain the highest possible bond ratings, one of which was recently increased. I continue to
work with bond counsel, the county's financial advisors, and rating agencies to refine our
approach to securing wastewater debt and obtaining the most favorable interest rates and debt
terms for wastewater system ratepayers. Our foremost security for that debt has been the
sewage disposal agreements and financial prudence requires that they now be extended. I
would note also that long term interest rates dropped significantly at the beginning of this
decade and continue to be favorable.
The Suburban Cities Association (SCA) on July 19, 2006, adopted a position supporting
agreements that allow the county full flexibility as to the financing of upcoming capital
improvements at the county's standard bond term. The formally adopted SCA positions are
attached.
Amending the sewer rate provision of the agreements is necessary so that the county can
implement out of cycle rate increases in emergency situations, such as the electrical energy
crises in 2001. The agreements currently provide only one opportunity per year to set rates. In
2001, electrical energy costs skyrocketed and ended up costing $9.4 million more than the $7.4
million that had been projected when the 2001 sewer rate was adopted. This unexpected
increase occurred in the context of an operating budget of $78.5 million. Employment of a
somewhat esoteric accounting procedure allowed King County to avoid violation of its bond
covenants, which require a margin of excess revenue over debt service costs after operating
costs are paid, but this experience demonstrated the need for greater flexibility in the
agreements regarding rate setting. Analysts for the bond rating agencies have noticed this lack
of flexibility, which this amendment provision has been designed to correct.
The text of this specific amendment provision conforms to input received from the cities and
districts, both directly and through the Metropolitan Water Pollution Abatement Advisory
Committee (MWPAAC), which consists of representatives from the region's cities and sewer
districts.
Changing the unanimous concurrence feature for future amendments is desirable so that one
or two small local agencies are not able to veto agreement changes desired by those agencies
representing an overwhelming majority of the ratepayer base. A consequence of the way that
the original agreements were structured was that all cities and districts would have to agree to
any agreement changes that deal with the distribution of the wastewater utility's costs and
development and collection of the county sewer rate. The enclosed amendment would replace
this feature with a supermajority provision, a version of which is already included in 12 of the
agreements. Except for the 12 cities and districts whose agreements already contain an earlier
version of the currently proposed supermajority provision, a single small agency could block
changes in the sewer rate structure desired by all other agencies. Over half of the cities and
districts the county serves individually constitute less than one percent of the county's sewer
ratepayer base.
The Honorable Steve Mullet
November 21, 2006
Page 4
The text of this specific amendment provision also conforms to input from MWPAAC.
Incorporating the `growth pays for 95% of growth" principle ensures that new customers will
pay for the cost of the facilities being constructed to serve them. The primary mechanism for
implementing this principle is the county's sewage treatment capacity charge for new sewer
customers. A few cities and districts, most notably the City of Seattle, have proposed that the
detailed methodology used to calculate that charge be included in the extended agreements.
This would effectively "lock in" the detailed methodology for fifty years. The SCA, as
articulated in its July 19, 2006 position paper, does not agree with Seattle's proposal. The
SCA position is identical to mine.
The opportunity to refine or amend the detailed policies governing the capacity charge needs
to remain under the purview of the King County Council acting on recommendations of the
Regional Water Quality Committee (RWQC). This amendment incorporates the underlying
principle for the capacity charge into the agreements, but preserves the opportunity for review
and recommendations regarding those detailed policies by a diverse cross -cut of the local
governments in King County. Suburban cities, as expressed in the attached position paper of
their association, support inclusion of the basic "growth pays for growth" principle, and
oppose the inclusion of detailed methodology. The enclosed proposed amendment aligns with
the SCA position.
Making any future amendments with individual local agencies available to all agencies is a
basic fairness provision that ensures that cities and districts executing their amendments later
in this process won't get special considerations not available to all. This provision was
proposed by the City of Auburn. (No prospective amendments would, in any event, be able to
contradict or undermine previously executed agreements and amendments.)
The county's proposed amendments to the agreements have been discussed now for several
years. King County's proposal to modify the agreements was first presented to the MWPAAC
in November of 2001. MWPAAC has over the last four years provided input on the county's
proposed changes that have been incorporated into this amendment. MWPAAC has focused
primarily, however, on aspects of the sewer service arrangement not related to debt security—
the primary purpose of the current amendment effort.
The proposed agreement changes were discussed with the Regional Water Quality Committee
on March 12, 2002, and again on June 14, 2006. They have also been discussed in detail with
the City of Seattle, which represents 42 percent of the county's sewer ratepayer base. They
were also very recently examined by the SCA. As indicated above, the SCA formally adopted
positions related to the amendments on July 19, 2006.
The King County Council initially authorized amendment of the agreements by ordinance
adopted in 2004. The amendment provisions presented in the enclosed documents include text
refinements requested by the cities and districts since that time. I have therefore transmitted an
updated ordinance for the County Council's consideration. I expect action on that ordinance
before the end of the year.
17
18
The Honorable Steve Mullet
November 21, 2006
Page 5
The city's timely attention to this matter is in the best interest of all of King County's sewer
ratepayers. Execution of this proposed agreement amendment within the coming months will
enhance King County's ability to secure the most favorable financing terms before undertaking
the major borrowings planned for the next five years.
Please return all three copies of the amendment to Bob Hirsch, King County Wastewater
Treatment Division, KSC -NR -0501, 201 South Jackson Street, Seattle, WA 98104 after they
are signed. Please leave the date space on the first page blank. A fully executed copy will be
returned to the district after the documents are signed by the county.
For further information please contact Pam Bissonnette, Director of the King County
Department of Natural Resources and Parks (DNRP), at 206 263 -6500, or Bob Hirsch,
Government Relations Administrator in the Wastewater Treatment Division of DNRP, at
206 684 -1266.
ms
King County Executive
Enclosures
cc: Jim Morror, Public Works Director, City of Tukwila
Pat Brodin, MWPAAC Representative, City of Tukwila
Pam Bissonnette, Director, Department of Natural Resources and Parks (DNRP)
Bob Hirsch, Government Relations Administrator, Wastewater Treatment Division,
DNRP
CITY OF TUKWILA
KING COUNTY
AMENDMENT TO AGREEMENT FOR SEWAGE DISPOSAL
THIS AGREEMENT made as of the
day of 2006 between
the City of Tukwila, a municipal corporation of the State of Washington (hereinafter referred to
as "the City and King County, a political subdivision of the State of Washington (hereinafter
referred to as "the County");
WITNESSETH:
WHEREAS, the City and the County have entered into a long term agreement for sewage
disposal dated October 1, 1966 as amended and previously extended (hereinafter referred to as
the "Basic Agreement and the County has proposed certain changes to, and a second extension
of, the Basic Agreement; and
WHEREAS, the extension of the Basic Agreement will ensure that the County is able
toobtain the most favorable bond fmancing terms for necessary improvements to the region's
wastewater treatment system and will therefore ensure the lowest possible sewer rates and sewage
treatment capacity charges for the system's ratepayers, and
WHEREAS, the City concurs that said proposed changes and extension are in the best
interest of the parties and the citizens of the Metropolitan Area;
NOW, THEREFORE, IT IS HEREBY AGREED AS FOLLOWS:
Section 1. Amendment of Basic Agreement— Section 5.3. Section 5.3 of the Basic
Agreement is hereby amended by adding the following new subparagraph d).
"d) An additional charge may be made to recover unforeseen costs to operate and
maintain the metropolitan sewerage system or meet debt requirements if the county executive
declares and the county council by a supermajority vote (two thirds of members) finds that an
emergency exists and the system cannot be adequately maintained, and debt requirements or debt
REFERENCE COPY
/9
20
policies met, without such additional charge. The additional charge shall then be effective no
earlier than the first day of the fourth month following the emergency declaration described in
this subparagraph 3.d) and shall be billed and collected in the same manner as the monthly rate
referenced in subparagraph 3.c). The additional charge described in this paragraph 3.d) may be
incorporated into the next rate setting cycle but will otherwise terminate within twelve months of
the date approved. The additional charge described in this subparagraph 3.d) shall not be made
until and unless it also conforms to the sewage disposal agreements with all remaining
Participants."
Section 2. Amendment of Basic Agreement— Section 5.4. Section 5.4 of the Basic
Agreement is hereby amended to read as follows:
"4. The County -may shall impose a charge or charges (hereinafter the capacity
charge) directly on the future customers of a Participant for purposes of paying for capacity in
Metropolitan Sewerage Facilities. The proceeds of said the capacity charge shall be used only
for capital expenditures or defeasance of outstanding revenue bonds prior to maturity. The
capacity charge shall be set at a level to ensure that. in combination with the monthly sewer rate
described in subsection 3 above. 95% of the costs incurred to provide the wastewater
conveyance. treatment and biosolids capacity to serve new customers are recovered from new
customers.
The City shall, at the County's request, provide such information regarding new
Residential Customers and Residential Customer Equivalents as may be reasonable and
appropriate for purposes of implementing the capacity charge."
Section 3. Amendment of the Basic Agreement —New Section 18. A new Section 18 is
added to the Basic Agreement as follows:
"Section 18. Future Amendments. The City agrees to amend and hereby concurs in any
amendment to this agreement which incorporates any changes in the terms for sewage disposal
and payment therefor as may be proposed by the County and agreed to by those Participants that
shall represent, in total, not less than 90% of the residential customers and residential customer
equivalents then served by the Metropolitan Sewerage System and 90% of the Participants."
Section 4. Amendment of Basic Agreements with other Participants. If the Basic
Agreements with any other Participants are amended or otherwise modified to include terms,
conditions, or provisions not included in this amendment, the City shall have the option of
incorporating said terms, conditions or provisions into its Basic Agreement. The County shall
then expedite and approve any amendments to the Basic Agreement as may be necessary and
appropriate for such purpose.
Section 5. Extension of Basic Agreement. The Agreement for Sewage Disposal between
the City of Tukwila and King County dated October 1, 1966, as amended, is hereby extended for
a period of twenty years and shall continue in full force and effect until July 1, 2056. The
agreement dated October 1, 1966, as subsequently amended and extended shall constitute the
entire Agreement for Sewage Disposal between the parties.
IN WITNESS WHEREOF, the parties have executed this agreement as of the day and
year first written above; said agreement to be effective upon execution.
City of Tukwila King County
Bv Bv
Title Title
Attest: Attest:
2!
FOURTH QUARTER/YEAR END REPORT TO COUNCIL
October 1 December 31, 2006
Prepared for Utilities Committee
PUBLIC WORKS DEPARTMENT
2006 YEAR END SUMMARY
4th QUARTER SIGNIFICANT ISSUES
Attachment III.E.
The Allentown /Foster Point Phase II Water Sewer Improvement Project was under construction during
2006. As of the fourth quarter, all of the new water and sewer mains have been installed. The entire
project is scheduled to be completed by the second quarter of 2007.
In 2006, there were two Green River Flood Stage!!! incidents, one in January and the second in
November, which required activation of the Emergency Operations Center (EOC) and 24 -hour inspection
and monitoring of the riverbanks and levees. At both times, there were only minor, localized flooding.
From November 6 through November 13, the Green River reached Flood Stage III. The City activated its
EOC and had two- person teams walking the Green River levee and riverbanks on a 24 -hour basis. The
City incurred only minor, localized flooding. The most significant event was a Metro Sewer line blockage
that caused a severe backup into Tukwila's sewer main. The backup was caused in part by storm water
runoff from SeaTac's Third Runway Project being dumped into the sewer lines.
On December 13 and 14, a severe windstorm hit the City causing a citywide power outage. The majority
of power was restored within three days, but some areas still were without power for up to seven days.
Debris cleanup continued through the end of December. No storm related injuries were reported within
the City. Public Works teams, augmented with Parks and Recreational personnel, reopened 17 streets,
replaced two -dozen traffic signs, and kept 20 key intersections operating. City operations were restored
within three days.
All of the new water and sewer mains are completed in the Allentown /Foster Point Water Sewer
Improvements Project and the project will be completed by the second quarter of 2007. The 2006 Overlay
Program was substantially completed.
BUDGET PROGRAM GOALS
Public Works Administration
1. Establish a Local Improvement District for the purpose of fundina the Tukwila Urban Access Proiect
at Klickitat and Southcenter Parkway: Reviewed draft Special Benefit Study which is required
prior to forming the LID. LID process review and formation hearings will be scheduled for
early 2007.
2. Evaluate future arant funding options available and Dr000se a course of action to fund transportation
proiects: Goal met. Tukwila received a $5 million grant from the State's Transportation
Improvement Board for construction of the Klickitat Project.
3. Evaluate the Citv's Emergency Management Plan using the National Emeraencv Management
Accreditation Program Standard as the auideline: Ongoing effort. Project slowed due to a lack of
full -time staff.
4. Provide quarterly reports on emeraencv manaaement issues: Goal met. All key personnel
received IS -100 and IS -200 training as required by NIMS.
5. Hold quarterly community workshops: Goal met.
Business Services
1. Create a more effective. cost efficient department proiectina and monitorina department costs:
seeking more cost effective purchasina agreements with vendors: preparing the department's
operation. maintenance and capital facilities budget using a "needs- basis" approach: Goal met.
23
24
2005 Fourth Quarter Report to Council
Prepared for Utilities Committee
Page 2
Public Works eliminated a mid -level management position in order to provide an additional
fleet technician. Despite rising costs and an increase in the amount of infrastructure,
majority of operational and maintenance goals were met.
2. Review "rate model" for establishing appropriate rates for water. sewer and surface water enterprise
funds: Ongoing effort.
Maintenance Administration
1. Create and implement an Operations Standby and Emeraency Responsibilities Plan: Received
additional safety gear and implemented a logistics plan for high river and flood levels.
2. Analyze operational and standby needs for expansion of shop facilities: Assembled preliminary
comparables from other agencies and added a new page in the CIP.
3. Implement recurrent technical trainina and operational safety programs to maintain employee
certification levels: Completed 2006 training.
4. Implementation of maintenance trackina system for transmitting billina costs and streamlining ways of
doing business: Tracking all billable work orders.
Engineering Administration
1. Update standardized contractina procedure for construction and repair proiects: Ongoing. Continued
the expansion of the use of "cost- loaded network system" for better construction contract
management it will be used on the Klickitat, TIB Phase 11 /111 and Southcenter Parkway
Extension projects.
2. Implement new transportation mitiaation fee system: Retained consultant to update the traffic
model and update the mitigation and study fees. The model will be updated annually.
3. Create and implement a staff GPS data aatherinq plan, to supplement inventory contracted under the
Sewer and Surface Water Enterprise Funds (see CIP): Purchased GPS equipment. Created and
implemented supplemental GPS data gathering plan.
Water Utility /Maintenance Operations
General
1. Track cross connection devices and provide annual Department of Health report usina the City's
cross connection data program: Annual Department of Health report submitted.
2. Continue the implementation of the automatic meter read orogram and connect data to the Finance
Department's billina software: Ongoing. 2006 AMR goals completed.
3. Implement a proaram to test the accuracy of water meters 2- inches and laraer into standard
preventative maintenance procedures: Ongoing. Testing on schedule.
Performance
1. Install new water meters within 48 hours of the hook -uo reauest: Goal met.
2. Respond to water aualitv concerns within 24 hours: Goal met.
3. Test chlorine residual level bi-monthlv: Goal met.
4. Test coliform levels bi-monthlv: Goal met.
5. Reduce the percentage of water loss by an additional 10 percent: Analyzing fireline usage that is
unmetered at this time and may be metered to account for consumption.
Sewer Maintenance Operations
General
1. Evaluate system -wide conditions for possible replacement and /or upgrade: Supported Engineering
with project listings to be reflected in CIP.
2. Review results of video loas to identify areas of damaae or infiltration /inflow: Completed.
Performance
1. TV inspect 20.000 FL of pipe annually: Completed 18,000 FL of pipe.
2. Clean 183.000 LF of pipe annually: Completed 175,000 LF of pipe.
3. Clean and maintain 730 manholes annually: Inspected and cleaned 600 manholes.
4. Weekly monitoring of 10 sewer lift station for pump hours, start counts. and aenerator operation:
Ongoing, goal being met.
2005 Fourth Quarter Report to Council
Prepared for Utilities Committee
Page 3
Water /Sewer Construction
1. Complete construction of Allentown Phase II /Foster Point water. sewer. surface water and street
improvements: Water /sewer main construction 80% complete, pump stations are 40%
complete. Overall completion expected by second quarter 2007.
2. Complete construction of the Southcenter Blvd. Water Main Replacement Proiect: Design
completed, WSDOT permits obtained, and advertised for bids. Construction scheduled for
2007.
3. Complete construction of the Campbell Hill Water Line Proiect: Completed.
4. Complete construction of Maule Ave /Interurban Ave S Water Main Project: Completed.
Surface Water Maintenance
General:
1. Participate in development of a multi -year small drainage project list: Refinements to the 2006
small drainage project list have been coordinated with Engineering.
2. Provide field support to Engineering for GIS inventory: Goal met.
3. Investiaate throuah usaae of TV. GIS. and flushina tasks to find unmapped systems: Efforts
continue.
Performance:
1. TV inspect 15.000 LF of pipe: Unable to complete system TV work due to Sound Transit and
other project specific work requests, completed 2,548 feet.
2. Maintain /clean 3.500 LF of ditches and 4 larae water aualitv ponds: Cleaned 8,250 feet, removed
232 yards of debris.
3. Clean 1.400 catch basins. manholes and stormceotors: Cleaned and inspected 850, removed 242
yards of debris.
4. Maintain /clean 15.000 LF of storm lines: Partial completion, Vactor truck was out of service
during a critical period.
5. Weekly monitoring of 5 storm lift stations for pump hours. start counts. and generator operation:
Goal met; ongoing.
Surface Water General Engineering Services
1. Complete construction for the Cascade View Neighborhood Improvement Proiect: Project
substantially completed. Cleanup items may continue into 2007.
2. Complete construction of Strander Blvd oroiect: Project completed.
3. Complete small drainaae projects identified on the approved FY2006 list: The 2006 SDP design
and construction completed.
4. Continue development of the GIS as- builts of city infrastructure that complies with NPDES Phase II:
Area #3 inventory completed.
25