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AG 98-145 0 íI) íZ) 0 C'} 0 ~ 0 Œ:J C') /Î r5 geP -/VS-~ he:;:; ¿ j\. :=0 ¡ , . I.. After recording, return to: F~,,:.. .;, w.'\Y CITy A; '-':'rl¡><EY Landi K. Lindell Federal Way City Attorney 33530 1st Way S. Federal Way, WA 98003 INTERLOCAL AGREEMENT BETWEEN THE CITIES OF AUBURN AND FEDERo\L WAY CON£:ERN!NG ASSUMPTION AND DISSOLUTION OF LAKEHA VEN UTILITY DISTRICT .fi! This Agreement is made and entered into this ~ day of ~ , 1998, by and between the City of Auburn, Washington, a non-charter code municipal corporation ("Auburn") and City of Federal Way, Washington, a non-charter code municipal corporation ("Federal Way"). Auburn and Federal Way are referred to collectively as the "parties". RECITAT~" 1. Pursuant to the Growth Management Act, RCW 36.70A.ll0, cities are the appropriate local government entity to provide urban services such as water and sewer service; and 2. Pursuant to King County Countywide Planning Policy FW-13, "within the Urban Area, as time and conditions warrant, cities should assume local urban services provided by special purpose districts"; and 3. The area within the Lakehaven Utility is located within an "Urban Area" as deflfled by the King County Comprehensive Plan; and 4. Pursuant to RCW 35. 13A.O30, whenever sixty percent (60%) of the area or sixty percent (60%) of the assessed valuation of real property within a special purpose district such as a water and sewer district is included within a city, that city may assume the ownership, operation, and control of that portion of the district not contained within the boundaries of another city; and 5. Pursuant to RCW 35. 13A.O6O, a city assuming that portion of a water and sewer district not contained within another city may enter into an interlocal agreement with another city in which a portion of the to-he-assumed special purpose district is located, to assume responsibility for operation and maintenance of the district's property, facilities and equipment within the other city; ORIGINAL j :; is 8 ~ ... ~ ~ I § ä\ - ... 8 0 fC¡ fC¡ 0 C'. 0 ~ 0 Cl) ~ Interlocal Agreement Between Cities of Auburn and Federal Way Concerning Lakehaven AssumptionJDissolution Page 2 6. The InterlocaI Cooperation Act, as amended, and codified in Chapter 39.34 of the Revised Code of Washington provides for interlocaI cooperation and agreements between municipal corporations; and 7. The City of Federal Way and the City of Auburn have entered into an InterlocaI Agreement, dated November 3, 1995, which Agreement delineates, among other things, the boundary between the City ofFedera1 Way and the City of Auburn's Potential Annexation Areas under the GMA; and 8. The Federal Way City Council adopted Ordinance No. 97-302 on October 21, 1997, directing its staff to prepare Notices of Intent to Assume and Dissolve the Lakehaven Utility District ("DistrictO), and to file said Notices with the King and Pierce County Boundary Review Boards; and; 9. Said Notices were filed with the King and Pierce County Boundary Review Boards on November 4, 1997 and November 10, 1997, respectively. 10. As part of the assumption/dissolution of the District, Federal Way and Auburn desire Federal Way to preserve ownership and control of the District property and facilities currently within the City of Auburn until such time as Auburn assumes responsibility for providing water and/or sewer services to its citizens at which time Auburn would be responsible for installing, at its expense, a master meter; and 11. Auburn and Federal Way agree that mutual cooperation between the two cities is in the best interest of their citizens, and that the assumption/dissolution of the District is allowed under RCW 35.13A, RCW 36.70A, and RCW 36.93; and 12. Federal Way agrees to provide water and sewer service to Auburn ratepayers at the same rate charged to ratepayers within the City of Federal Way, with no surcharge or tax attributable to Auburn residents solely due to their residency; and 13. Auburn and Federal Way have determined that it would be in the best interests of the citizens if the parties were to enter into an InterlocaI Agreement setting forth their rights, duties and responsibilities with respect to Federal Way's ownership, operation and maintenance of property, facilities and equipment owned by the District prior to the potential assumption and dissolution and located within the boundaries of Auburn and its P AA; NOW, THEREFORE, for and in consideration of the agreements contained herein, the parties hereto agree as follows: 0 írJ Ç{) 0 c:') 0 ~ 0 fZ) (1) Interlocal Agreement Between Cities of Auburn and Federal Way Concerning Lakehaven AssumptiontDissolution Page 3 AGREEMENT 1. Existin¡r District A¡rreements. Federal Way shall, upon the effective date of assumption of the Lakehaven Utility District ("District"), assume all rights and responsibilities of the District with respect to any interlocal agreements or contracts between the City of Auburn and the District. Federal Way shall perform the terms of any such agreement or contract in the same manner as the District would be required to perform if Federal Way had not assumed the District. 2. Federal Wa.y Facilities. Upon the effective date of Federal Way's assumption and/or dissolution of the District, Federal Way shall be entitled to full legal title and ownership of all the District facilities, and the real property associated with them, located witlùn the Auburn corporate boundaries and its PAA delineated in the Interlocal Agreement dated November 3, 1995 between the City of Federal Way and the City of Auburn, including, without limitation the following: a. 2 water storage tanks (S. 305th Street Tanks A & B) b. Transmission Mains including: 1521.5 ft. - 18" DI or CI along 51st Ave. S. 1728.02 ft. - 16R DI or CI, and 465.53 ft. - 16" AC pipe, along S. 304th St., 52nd Ave. S., S. 305th St, and 56th Ave. S. into S. 305th St. tanks A&B c. Other transmission lines and mains; d. 94 Blowoff Assemblies; e. 157 Hydrant Assemblies; f. 5 PRV Vaults; and g. Sewer system 0 !J) !J) 0 ~ 0 'd' 0 !J) ~ Interlocal Agreement Between Cities of Auburn and Federal Way Concerning Lakehaven AssumptionIDissolution Page 4 3. Auburn Facilities - Transfer. Auburn may at some future date, and by written notice to Federal Way, direct the City of Federal Way to transfer full legal title and ownership of the District facilities "c" through "g" listed in Paragraph 2 above and the real property associated with them (hereinafter the "Auburn facilities"), to Auburn. Subject to Paragraphs 4 through 6 below, Federal Way shall transfer, via quit claim deed, ownership of the Auburn facilities to Auburn. 4. Implementation of Transfer - Audit and Supplemental Agreement. Following receipt of notice from Auburn pursuant to Paragraph 3 above, Federal Way and Auburn shall jointly commission an audit by an agreed-upon tIùrd party. The audit, whose cost shall be borne equally by Federal Way and Auburn, shall determine among other tlùngs the total assets and liabilities of the District, the value of the Auburn facilities to be transferred, the liabilities (including bonded or other indebtedness) associated with the Auburn facilities or attributable to the customers within the PAA, the value of any reserves associated with the Auburn facilities to be transferred, and the pro rata storage capacity in the S. 305th Street Tanks and water supply associated with the customers located in Auburn's PAA at the time of the audit. The parties shall then enter into a supplemental agreement, based on the audit, which memorializes the transfer of the Auburn facilities pursuant to RCW 35.13A and allocates to one or both parties the reserves and liabilities (including proportionate bonded or other indebtedness pursuant to RCW 35. 13A.020), the value of the Auburn facilities to be transferred or improvements to them, operation and maintenance of the transferred facilities and any improvements to them, the cost (if any) and amount of the storage capacity provided pursuant to Paragraph 6 below. 5. Timin~ of Audit, Sl1Pplemental A~reement, and Transfer. Federal Way and Auburn shall select the third-party auditor and commission the audit within 14 days of Federal Way's receipt of notice from Auburn pursuant to Paragraph 3 above. The audit shall be completed within 90 days ofFedera1 Way's receipt of notice. Within 180 days of Federal Way's receipt of notice under Paragraph 3, the parties shall enter into the supplemental agreement. Federal Way shall transfer the Auburn facilities via quit claim deed within 10 days of execution of the supplemental agreement by both parties. 6. Use of S 305th Tanks by Auburn Fo1Jowin~ Transfer. Following transfer of Auburn facilities pursuant to Paragraphs 3 and 4 above, Federal Way agrees to make available to Auburn a limited amount of equalizing, fire, and emergency standby storage capacity witlùn the S. 305th Street Tanks A and B. In addition, Federal Way agrees to provide additional emergency standby and equalization storage to Auburn, the cost and amount of which is to be negotiated as part of the supplemental agreement provided for in Paragraph 4 above. ::J ÇTJ ÇTJ 0 0": 0 ~ 0 ÇTJ a') Interlocal Agreement Between Cities of Auburn and Federal Way Concerning Lakehaven AssumptionIDissolution Page 5 7. MaintenancelQperntion and Indebtedness. The City of Federal Way shall, upon the effective date of Federal Way's assumption of the District, be responsible for the operation, maintenance, permitting, taxes, and contractual or bonded indebtedness associated with the facilities and property allocated in Paragraph 2 above, up until the point of transfer of the Auburn facilities provided in Paragraphs 3 through 6 above, after which time responsibility for operation, maintenance, permitting, taxes, and indebtedness shall be as set forth in the supplemental agreement. 8. Continued Provision of Service. Federal Way shall, upon the effective date of Federal Way's assumption and/or dissolution of the District, provide water and sewer service to former District ratepayers residing in Auburn or in Auburn's PAA at the same rate charged to ratepayers residing in Federal Way within the same class of customer or service. The rate shall be based on the cost of service, which shall be determined according to, among other things, the costs of maintenance, operation and repair of the system, the costs of any special indebtedness bonds or warrants, the location of various customers and the difference, if any, in cost of maintenance, operation, repair, and replacement of system parts, the different character service being furnished, capital contributions made to the system, including but not limited to assessments, and any other matters which present a reasonable difference as a ground for distinction. Federal Way sha11 not impose a surcharge upon Auburn ratepayers in excess of any surcharge upon any other ratepayers being served by Federal Way. 9. Capital Il1\Provements. To the extent authorized by law, Federal Way agrees to submit plans for capital and major maintenance improvements to the facilities located in Auburn's PAA, and whose projected cost is greater than $200,000, to the Auburn City Council for its review and approval. Federal Way will include with the plans a proposed funding mechanism and anticipated debt repayment schedule, if any. Auburn agrees to review and convey its decision to Federal Way within 30 days of receiving plans for the proposed capital improvements, and agrees that its approval shall not be unreasonably withheld. For example, Auburn shall not disapprove a proposed capital improvement for reasons including but not limited to the type or amount of proposed funding for the improvement. Federal Way shall not construct a proposed capital or major maintenance improvement subject to this paragraph until it has received Auburn's approval, except that Federal Way may construct any improvements or maintenance required to ensure compliance with state or federal requirements regardless of whether Auburn approves the plans after the 3D-day period. Interlocal Agreement Between Cities of Auburn and Federal Way Concerning Lakehaven Assumption/Dissolution Page 6 10. General Provisions. 10.1 This Agreement may be amended at any time by the mutual written consent of the parties. 10.2 This Agreement shall take effect immediately and shall continue in effect until terminated. 10.3. Neither party may assign this Agreement without the written consent of the other party . 0 crJ crJ 0 (1') 0 ~ 0 crJ :1) 10.4. Each party shall be responsible for the coni eCJ.uences of any negligent or wrongful act or failure to act on the part of itself, its elected official, agents, volunteers and employees. Neither party assumes responsibility to the other party for the consequences of an act or admission of any person, firm or corporation not a party to this Agreement. 10.5. Any provision of this Agreement which is prohibited or unenforceable, shall be ineffective to the extent of such prohibition or unenforceability, without invalidating the remaining provisions or affecting the validity of enforcement to such provisions. 10.6. Any written notice required by this Agreement shall be sent via certified mail to the following persons, who shall be the contact person for their respective jurisdiction. a. City of Auburn: Charles A. Booth, or his successor in interest Mayor 25 West Main Street Auburn, WA 98001-4998 (253) 931-3000 FAX (253) 931-3053 b. City of Federal Way: Kenneth E. Nyberg, or his successor in interest City Manager 33530 1st Way S. Federal Way, WA 98003 (253) 661-4013IFax: (253) 661-4024 0 rn rn 0 "" 0 ~ 0 Cl) C1) Interlocal Agreement Between Cities of Auburn and Federal Way Concerning Lakehaven Assumption/Dissolution Page 7 10.7. A copy of this Agreement shall be filed with the City Clerk of the Cities of Auburn and Federal Way, and the County Recorder for the County of King. IN WITNESS WHEREOF the parties have hereunto placed their hand and seals on the day and year indicated. CITY OF AUBURN CITY OF FEDERAL WAY BY: C!111>t/e& no 13~~ Charles A. Booth Mayor BY~~ City Manager Date: ~ /: /r~ Date: Q ~dO.-78 Approved as to Form for City of Auburn: -J1f#!41. ~y Approved as to Form for City of Federal Way: ~t_~ (r-- Londi K. Lindell, City Attorney ç... ~EST: This éJ.P day of ~ , 1998. A~T: This )7~ayof ~L , 1998. J¡(CM~ N. Christine Green, CMC Federal Way City Clerk ~Æm{~I.~~~ Auburn City Clerk K:\Jakwve\mtuIc2.aub 2-27-98