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HomeMy WebLinkAbout97-104Resolution No. 97-104 RESOLUTION OF THE CITY COUNCIL OF THE CITY OF PORT TOWNSEND SUPPORTING TERMINATION OF WATER FACILITIES, SUPPLY AND LATECOMER CONTRACT, AND INSTRUCTING THE PUBLIC WORKS DIRECTOR TO ADVISE PROPERTY OWNERS OF IMPENDING CONTRACT TERMINATION The City Council of the City of Port Townsend, Washington, does resolve as follows: WHEREAS, by a Water Facilities, Supply and Latecomer Contract ("Water Facilities Contract"), approved by the Port Townsend City Council on May 7, 1991, the Port Townsend City Council authorized the City to contract with certain property owners within the Adelma Beach area in unincorporated Jefferson County, to construct or cause to be constructed a new 8-inch water main to replace an existing 2-inch line under terms, conditions and restrictions set forth in the contract; and WHEREAS, the Water Facilities Contract was based upon a contractual finding and mutual understanding that the owners' property was within the City's water utility service area, adopted pursuant to the Public Water System Coordination Act of 1977 (Ch. 70.119 RCW); and WHEREAS, the Water Facilities Contract provided that the water line described in the contract was "not to be used or allowed to be used to extend or expand the city's service area..."; and WHEREAS, in Paragraph 8 of the Water Facilities Contract, the parties stipulated that "It is acknowledged and agreed that water to be supplied hereunder by the city to owners is only excess or surplus water, not presently neexled by the inhabitants of the City. At any time during the term of the agreement, the City may terminate this agreement upon giving notice to owners or their successors at least six (6) months in advance of the termination date, if the City determines in its discretion that such water supply or any part thereof is needed for present or future service within the city"; and WHEREAS, Paragraph 14 of the Water Facilities Contract authorizes the City to terminate the agreement at any time upon six (6) months notice in advance to the property owners; and WltERKAS, on the date of passage of this Resolution, only a portion of the 8-inch water main, described in the Water Facilities Contract, has been constructed on the properties described in the Water Facilities Contract. For those properties abutting the constructed 8-inch line, the City has provided, and will provide uninterrupted water service, until such time as the water service responsibilities may be transferred to another water utility; and WHEREAS, on September 23, 1996, the Port Townsend City Council adopted an Agreement for Establishing Water Utility Service Area Boundaries, pursuant to Chapter 70.116 RCW ("Service Agreement Area"). The Service Area Agreement was forwarded to the Jefferson County Water Utility Coordinating Committee, and to the Washington Department of Health, for formal designation of the City's Coordinated Water System Plan (CWSP) water utility service area; and WHE~S, the Water Service Area Agreement was based upon the following Resolutions adopted by the Port Townsend City Council: Resolution No. 93-72; 96-023; and 96-112 Cthe Water Resolutions"). These resolutions were adopted after substantial public process, including public hearings and open public meetings. The resolutions articulate the policies of the Port Townsend Water Utility, based upon analysis of the City's long-term firm water capacity, to serve potential water customers within its previous (1986) CWSP service area; and WHEREAS, all findings of Water Resolutions 93-73, 96-023, and 96-112 are incorporated herein by this reference; and WHEREAS, pursuant to the Water Resolutions of the City Council incorporated herein, the City states its policy that its responsibility under State law is to provide water service only within the City's designated service areas, and that the City possesses the right even within its existing service areas to decline service for utility related reasons; and WHEREAS, in the Water Resolutions, the City states its policy that it will serve areas outside its designated service area only for existing customers or those property owners who are considered to be under a valid, enforceable contract for water service, unless and until the contract for service becomes the responsibility of another water purveyor by contractual agreement. Further, pursuant to State law, and consistent with the limitations of the City's water system to serve potential customers within its previously designa~! service area, the City retains the right, on a ease-by-case basis, to evaluate whether any particular contractual claim for water is valid and enforceable, and whether the City possesses the firm water capacity on a long term basis to serve any potential customers pursuant to such contract; and WHEREAS, Finding No. 4 of Resolution 96-122 articulates the City's policy to concentrate its utility service in urbanizing areas of Jefferson County, in order to best serve existing and future customer needs; and WHEREAS, the City Council's Water Resolutions anticipate future service area exchanges with the PUD or other water utilities, to best serve customer needs, including those needs of the City's contractual customers existing outside of the City's existing service area; and WHEREAS, in Resolutions 96-023 and 96-112, the City revised its out of city water utility service areas, consistent with the requirements of State law, and consistent with the findings 2 Res. 97-104 adopted in the Resolutions. The area described in the Water Facilities Contract is outside of the City's out-of-city water service area, as set forth in the Water Service Area Agreement; and WHEREAS, the Washington State Department of Health has adopted the 1997 Coordinated Water System Plan, approving and adopting the City's water service area, and the City's Water Service Area Agreement, including ail findings, conclusions and decisions set forth in Resolutions 93-72, 96-023, and 96-122. In accordance with the 1997 Coordinated Water System Plan, the City is not obligated to serve water customers outside its 1997 CWSP service area, including those customers without a valid contmctuai claim for water service; and WHEREAS, City Council hereby finds that the real property described in the 1991 Water Facilities Contract is no longer within the City's water service area, and that a substantiai portion of the water system extension anticipated by the Water Facilities Contract has not been constructed and has not been made a part of the City's water system. Based upon the findings and conclusions of the above referenced Water Resolutions, the City's Water Service Area Agreement, and the 1997 Coordinated Water System Plan, the City Council finds that the quantity of water ascribed for the unbuilt portion of the water system, as described in the Water Facilities Contract, is not "excess or surplus" to the City's needs for water to serve the inhabitants of the City, or customers within the City's designated out-of-city water service area, NOW, THEREFORE, BE IT RESOLVED, by the City Council for the City of Port Townsend as follows: 1. All conclusions and decisions set forth in Port Townsend City Council Resolutions 93-72, 96-023, and 96-122 are incorporated herein by this reference. 2. With respect to ail portions of the water system described in the 1991 Water Facilities Contract which have not been constructed on the date of adoption of this Resolution, the Port Townsend City Council hereby intends to terminate the contract, as provided herein. 3. With respect to those portions of the water system described in the Water Facilities Contract, which have not been constructed on this date, the Contract will be terminated within 180 days from the date written notice is sent to the property owners, without further action from this Council. Within the next 180 days, in order to extend water service to the property owners' properties in accordance with the terms of the Water Facilities Contract, the property owners must seek and obtain all permits from all agencies with jurisdiction. Construction of the system must be completed within 540 days from the date of this Resolution. 4. This Resolution shail not be construed to limit or prohibit the right or the ability of any water customer with property abutting the portion of the line constructed on or prior to the date of this Resolution from connecting to the water main, pursuant to ail adopted policies and regulations of the City. 3 Res. 97-104 5. The Port Townsend Public Works Director is hereby directed to write a letter to all property owners identified in the Water Facilities Contract, with properties abutting the potential water line which has not been constructed on the date of this Resolution, notifying all such property owners by regular and certified mail of the Council's intent to terminate the contract within 180 days from the date of written notification. 6. The Council hereby finds and declares that this Resolution is adopted for public health, safety and welfare reasons as set forth in Resolutions 93-72, 96-023 and 96-122, and as generally provided by state law. ADOPTED by the City Council of the City of Port Townsend and signed by the Mayor on this 15th day of September, 1997. JulI~vlcCulloch, Mayor Attest: Pam Kolacy, ?fmoth~~ahan, City Attorney 09/09/97 [97-36]R~{waterres.doe } 4 Res. 97- ?d~ t../