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HomeMy WebLinkAbout96-023RESOLUTION NO. C~'o~ RESOLUTION OF THE CITY COUNCIL OF THE CITY OF PORT TOWNSEND ESTABLISHING POLICIES TO GUIDE THE CITY'S WATER SYSTEM PLAN PROCESS AND THE CITY'S PARTICIPA- TION IN THE CWSP PROCESS; PROPOSING A REVISION TO THE CITY'S EXTRATERRITORIAL (OUT-OF-CITY) WATER UTILITY SERVICE AREAS; AND DESIGNATING THE CITY'S CWSP SERVICE AREA PROPOSAL THE CITY COUNCIL of the City of Port Townsend, Washington, makes the following Findings and Resolution: A. FINDINGS: 1. Limited Water Resource. The City provides water to much of eastern Jefferson County, on both a retail and wholesale basis. The water resource and existing delivery systems for both the City and Jefferson County PUD #1 (the PUD) are limited in their ability to deliver water for all potential, unplanned needs. 1.1 Long-term population growth projections show that without revision to the City's out-of-City water utility service area,, the increasing water needs of new residents will outstrip the ability of the City to provide water within the 20-year planning horizon mandated by Washington's Growth Management Act. A preliminary projected water capacity analysis is attached hereto as EXHIBIT A. The preliminary capacity analysis demonstrates that if the City continues to provide water service to all potential customers in its existing Tri-Area service area, customer water needs will likely exceed the City's fully developed groundwater right within the 20-year GMA planning horizon. As water quantity is limited, the quality of water delivered to customers may likewise decline, posing potential public health risks. 1.2 The City's groundwater resources are limited by Water rights and developed capacity. The legal and scientific ability to fully perfect the City's existing groundwater rights is uncertain, mandating caution in long-range water service planning. Additional groundwater resources are uncertain and may be prohibitively expensive to develop. Although the City plans to fully develop its groundwater capacity, without carefully, coordinated utility and land use planning, system demands will likely exceed developed capacity. 1.3 The continuation of unplanned, sprawling development patterns in eastern Jefferson County poses unpredictable planning and service requirements upon the County's water utilities, imposing significant costs upon taxpayers and ratepayers. The City finds that for utility-related reasons, and to accommodate and facilitate County growth management planning, the provision of uninterrupted, urban levels of water service to urban and urbanizing areas of Jefferson County takes precedence over the provision of water service to the unpredictable needs in rural areas. 1.4 In Port Townsend Resolution No. 93-72, the City Council found that water demands outside the City's municipal boundaries could exceed available capacity. Consequently, the City Council resolved on an interim basis to reduce its Tri Area service area and to decline service pursuant to RCW 70.116 to properties outside the interim service area boundaries, pending further study. As a water utility providing water pursuant to the 1986 Jefferson County Coordinated Water System Plan (CWSP), and pursuant to RCW 70.116.060, the City does not hold itself out as the exclusive water purveyor in any service area. Rather, the City has the "right of first refusal" for any party seeking water within the City's service areas. 2. Excess Capacity of the City's Municipal Water System. The City is prohibited by State law (RCW 35.23.440(22) and 35.23.515) and general municipal law from providing municipal water outside municipal boundaries and outside its planning area in excess of projected supply needs to serve customers within the City's corporate boundaries. The City has a legal obligation to plan for and provide water to City residents on a long-term basis. 2. i Current studies demonstrate that within the GMA planning horizon, unless new water sources are developed, or existing customer needs are substantially curtailed, the City will no longer possess the capacity to deliver water excess to the needs of City residents. As a public utility, the City is obligated to look well beyond the 20-year GMA planning horizon to plan for water service needs within its service areas. 2.2 The City does not currently intend to acquire additional surface water supply and is limited by contract with the Port Townsend Paper Company with respect to the quantity of surface water that can be routed to out-of-City customers. 2.3 Given the City's primary.obligation to provide water service to its residents, the adequacy of water service to areas immediately adjacent to the City is a paramount utility-related concern to the City. 3. Assumptions Regarding County Action. The City pledges its assistance to the County in its GMA planning in designating its CWSP water service area, and by making available to the County all current water utility planning and study resources available to the City. The City intends to participate with the County in a joint, cooperative basis to ensure the success of economically viable planning decisions consistent with the GMA and the Jefferson County County-Wide Planning Policies. The service area proposal the City makes in this Resolution is conditioned upon the following assumptions: (a) The County will appropriately designate UGAs pursuant to the requirements of the GMA, RCW 36.70A. 110, consistent with the CWPPs, and Water Service Area Resolution -2- Water pursuant to any Hearings Board and judicial interpretations and applications of the GMA, particularly those Hearings Board decisions in cases where Jefferson County has been a party. Upon designation of UGAs, the City likewise assumes that the County will adopt appropriate land use regulations to ensure compliance with' UGA density and planning standards; (b) The County will not allow rural densities within any UGAs designated as the City's service area (except on an interim basis). The ability to serve rural densities at urban levels of service is uneconomical for the City and is inconsistent with the GMA; (c) The City will not be asked to provide water service to commercial and industrial uses outside of its retail service areas, and the County will accommodate urban-type commercial and industrial uses within appropriately designated UGAs; (d) The County will actively work with other water purveyors to develop other water resources in order to reduce the long-term dependence upon the City's limited water resource; (e) The County recognizes that ultimately, the City's Olympic Gravity Water System surface water will exclusively serve retail customers within the incorporated municipal boundaries of the City, customers within the area west of the City, and within the proposed Glen Cove UGA; (f) The County will follow and enforce the mandates of its Critical Areas Ordinance to protect County-wide groundwater resources from adverse water quality impacts, particularly within areas of groundwater vulnerability near the City's Tri-Area wells; (g) The County will recognize the importance of the City providing water, as the retail purveyor, within the proposed Glen Cove UGA, and will support the City in revising service areas with the PUD and other entities to perfect this service area resolution. Likewise, the County will continue to recognize the importance of a joint City/County planning effort within the proposed Glen Cove UGA, and the need to jointly agree upon the land use planning and regulatory scheme within this area. As part of that joint planning, the County will recognize that the City has a vested interest in the use and development of its water resource within the Glen Cove UGA as one of the tools for the successful planning and development of this area of mutual concern; (h) The County will recognize in its land use plans and regulations that if a proposed use will so heavily draw upon the City's limited water resource, to the extent that the needs of current and/or projected customers will be compromised, Service Area Resolution -3- the City will be unable to provide water to that applicant, and will likely deny water service. The applicant would then be required to pursue water from another provider through the CWSP process. In order to ensure water availability to residents and businesses within County UGAs, the City encourages the County to seek to limit high water-consumptive uses in its comprehensive plan and implementing regulations until additional water resources are developed by the City or another entity, or unless the applicant develops the necessary water resource to serve the proposed use. 4. County Interim GMA Planning and Regulation. The City recognizes that the County's GMA planning is currently evolving, and that the County may designate rural densities in areas served by the City's water utility on an interim basis to comply with GMA mandates. Notwithstanding this current status of County planning, the City recognizes that the Tri-Area will ultimately serve urban growth. The City will continue to plan to accommodate the water needs of urban growth in the areas described below, in order to provide the County with the City's assurance of assistance with County-wide growth planning needs, consistent with the County- Wide Planning Policies. 4.1 In the event the County ultimately chooses not to designate a Tri-Area Final UGA and consequently allocates substantial additional population to Port Townsend, the City may be required to further revise its Tri-Area service area to divert additional water to Port Townsend to serve the projected additional population allocated to the City. 5. Consistency with .County-Wide Planning Policies. This Resolution is consistent with the 1992 Jefferson County County-Wide Planning Policies (CWPPs), jointly adopted by the City and the County pursuant to the Growth Management Act. The City Council finds that this action is consistent with and furthers the following CWPPs: CWPP #1.1 jOint City-Count/ population forecasts must be used preparation of water, utility, and transportation plans and for the improvement plans to implement the same;" "in the capital CWPP #1.3 The size and delineation of boundaries of UGAs will be determined by agreed criteria. These criteria include adequate developable land to accommodate forecasted growth; sufficient land for residential, commercial and industrial growth to sustain a healthy economy; lands "already characterized by urban development which are currently served or are planned to be served" by public facilities and services, including water; the type and degree of existing urban services needed to support urban development at adopted level of service standards; CWPP #1.4 Port Hadlock is ,"characterized by urban growth" for the purpose Water Service Area Resolution of designating an UGA; the Tri Area Community Plan will be utilized as a guide in the delineation of UGA boundaries "based on the criteria" found within the CWPPs; CWPP//1.7 Before adopting UGA boundaries, the County should adopt interim level of service standards for public facilities located both within and outside UGAs. "New urban public facilities will only be provided within and not be extended outside UGAs, unless deemed as an essential public service to mitigate a threat to the public health, safety or general welfare;" CWPP//2.1 "The full range of governmental services at the adopted level of service standards will be planned for and provided within UGAs, as defined in the capital facilities plan, including community water, sanitary sewer, piped fire flow, and storm water systems;" CWPP//2.4 "Urban services and facilities will not be extended beyond UGA boundaries unless needed to mitigate a threat to the public health or welfare, or to protect an area of environmental sensitivity. To avoid encouraging the spreading of urban development outside of UGAs, this policy will apply only to threats caused by existing development, and only those existing uses requiring the service or facility to mitigate the threat will be allowed to hook up to any extended services;" CWPP//2.7 Based upon joint population forecasts and "new data pertaining to future water supply and demand," the CWSP will be updated. "The water supply and service provisions of an updated CWSP may require revisions to land use elements and community plans. Comprehensive plans shall include water quality and water conservation policies and standards .... ;" CWPP//3.1 Each provider of urban services within UGAs "will assist the County in the planning, coordination, and establishment of urban service and facilities to serve the projected twenty year population;" CWPP//3.2 "The County and incorporated UGAs will coordinate the development and implementation of plans for the provision of county-wide services including.., water and water utilities;" CWPP//8.1 "Activities such as regional retail-commercial facilities, business office parks and similar high intensity land uses are considered urban in nature and are inconsistent with rural designations. The rural element of the comprehensive plan will be designed to recognize and maintain the unique character of individual rural areas without degrading the environment or creating the need for urban level of services;" Water Service Area Resolution -5- CWPP #8.3 Level of service standards must be adopted for infrastructure improvements anticipated for rural areas and rural centers, including individual or community water systems. 6. Necessity. The redirecting of water resources contemplated within this Resolution is necessary for the public health, safety and welfare needs of City and County residents. 6.1 This Resolution and the utility planning envisioned herein is necessary to ensure that the City will have adequate water capacity to meet its responsibilities set forth in the City's GMA Comprehensive Plan to serve the projected population growth needs within the City and within its out-of-City water utility service areas. 6.2 The City possesses a quantity of surface water in excess of its present needs to serve existing City customers and customers within the proposed Glen Cove UGA. The City is presently studying this excess water supply to determine its full extent. However, the City's existing studies show that within the City's utility planning horizon, this excess surface water supply will be needed within the City and the proposed Glen Cove UGA. The City intends through its water planning to designate out-of-City service areas which are sustainable on a long- term basis, based upon projected population and water capacity. 6.3 In order to meet "CT" (chlorine contact time) public health requirements, and due to the cost to expand and improve service lines, it is not viable to direct OGWS surface water to the Tri-Area, necessitating Tri-Area water service from groundwater sources. 7. TH-Area Service Area. RCW 36.70A. 110(1) permits counties to designate as "urban growth areas" only those areas which are "already... characterized by urban growth or... adjacent to territory already characterized by urban growth." 7.1 The City will provide water only to the areas defined below, in that these areas are urban in character, and/or areas immediately adjacent to the City. The GMA prohibits the extension of urban governmental services and facilities to areas which are not urban in character and included within UGAs. 7.2 The City does not contend that public water should not be provided outside of the areas described below, nor is it the City's intention to control growth in the County through its service area designations. However, based upon compelling public health and safety concerns, in consideration of the City's limited water resources, and given current uncertainties in County GMA planning policies, at present the City does not believe it is the appropriate entity to deliver rural water service to areas not immediately adjacent to the City, particularly at rural levels of service. 7.3 The City intends to honor its contractual obligations outside its revised service Water Service Area Resolution -6- areas. However, the City intends, pursuant to its legislative authority, to review contractual obligations on a case-by-case basis and to consider necessary action to define and/or reduce long- term contractual water service obligations in order to better facilitate utility planning and water service allocation needs. 8. Glen Cove Service Area. The City and the County have shared planning concerns in the Glen Cove area. Both the City's and County's draft Comprehensive Plans designate a portion of the Glen Cove area as the City's "out of City UGA." Both jurisdictions recognize that it is critical for the City and the County to cooperate in the joint planning for land uses in this area, including the sharing of costs and revenues for infrastructure development. 8.1 In conformance with the CWPPs, the City and the County are coordinating their planning efforts to collect and analyze data, and to determine an appropriate Glen Cove Final UGA (FUGA) boundary. However, at present, additional information and analysis is needed to refine and modify the conceptual FUGA. boundary set forth in the City's GMA Comprehensive Plan. It is anticipated that the FUGA boundary will be designated at the time the County adopts its Comprehensive Plan, or in a subsequent amendment to the Plan. 8.2 Critical to the process of planning for growth within the proposed Glen Cove UGA is for the City to possess control of the water system, and to be capable of integrating water utility planning with the County's and the City's long-range land use planning in this area. The ongoing, dependable assurance of water availability to commercial and industrial land uses within the Glen Cove UGA is essential to the economic viability of Jefferson County. With appropriate, integrated grO(vth management and utility planning, the City has the capability to provide adequate water service to this area at urban levels of service. 8.3 Given the fact that a portion of the Glen Cove area has been identified by the City/County Joint Growth Management Steering Committee and by the City's draft GMA Comprehensive Plan as an LIGA, the GMA provides that urban governmental services for this area should be provided by the City. RCW 36.70A. 110. The GMA anticipates a coordination of utility and land use planning within IJGAs. This is not possible so long as this area remains within the PUD's service area. 9. The PUD's Ability to Serve the Proposed Glen Cove UGA. The PUD is limited by contract in the water available to serve the Glen Cove UGA, and its current water customer commitments outstrip the PUD's available water resources. 9.1 PUD customers within the Glen Cove service area lack adequate assurances of water availability to permit the predictable development of properties pursuant to appropriate land use designations. At present, under the provisions of the CWSP and RCW 70.116.060, as amended by ESSB 5448, water customers in this area could request that the City "step in" and serve these customers within the Glen Cove service area, with a resulting adjustment in service Water Service Area Resolution -7- qb .,l ~ area boundaries. 9.2 The City views its role as providing urban levels of water service within urban (and urbanizing) areas of the County. In terms of utility planning, and consistent with the GMA, the City believes that the PUD or other rural water utilities are appropriate entities to provide water service within rural areas of the County, including those areas outside the City's service areas described herein. 10. Area West of the City. While the County is not anticipated to designate the area west of the City as an UGA, this area is located adjacent to an existing UGA (the City) and is currently provided with urban water services, at urban levels of service. The City serves water to this area, delivered through the delivery system running through the City. 10.1 The area west of the City is of great planning importance to the City and may be a candidate for urban growth upon build-out within the City. North Jacob Miller Road is a logical eventual boundary for the City. This area may serve as the future location for a college site (described in the City's 1996 GMA Comprehensive Plan). The City has a strong concern as a utility to provide water extensions within this area to ensure that infrastructure investments are appropriately made to avoid eventual service line replacement if or when the area becomes an UGA or other uses are proposed which are compatible with rural designation. 10.2 In the interest of achieving economical utility service provision, and in view of the City's interest in providing the best possible water service to areas adjacent to the City, the City intends to combine and link (through looping) the City's adjacent out-of-City water service areas and allow consistent levels of service delivered in a viable fashion. In order to achieve long-term utility needs, and to address long-term land use planning needs, the City intends to avoid the risk of ultimately replacing substandard utility lines or duplicate service by retaining a portion of this area as its service area. Given the City's planning concerns for areas immediately adjacent to the City, the City intends to avoid service of this area by another utility. 11. Port Townsend Draft Water System Policies. This Resolution is consistent with and furthers the goals of the draft City of Port Townsend Water System Policies. To the extent that this Resolution may be inconsistent with these policies, or the policies do not reflect the current needs of the City and the County to engage in sound water resource planning, the City will amend its policies as the City formally adopts its Master Water System Plan. The draft Plan policies are incorporated herein by this reference. This Resolution is intended to supplement and further the draft policies to assist the City as a general framework for water system planning efforts. Water Service Area Resolution -8- t~ {~ ~9_ 3 BASED UPON these Findings, the Port Townsend City Council resolves as follows: B. RESOLUTION: The City of Port Townsend will commence a planning process to amend its water service areas and to adopt a Comprehensive Water System Plan (Water System Plan) consistent with this Resolution. This Resolution constitutes the proposed general policy framework for that process and further constitutes the City's water service area proposal for the Coordinated Water System Planning (CWSP) process. This Resolution is intended to provide the City with general policy direction to use in the Water System Plan and CWSP processes. The policies contained in this Resolution, including service area designations, are subject to revision as the City proceeds with its public planning process for the adoption of the Water System Plan, and the CWSP, including review of all policies and provisions stated herein under the State Environmental Policy Act, RCW 43.21C. This Resolution does not limit or restrict water service reservations provided by the City pursuant to Section 13.14 PTMC, prior to completion of water system planning. 1. CAPACITY AND TOTAL QUANTITY. The Tri-Area service area (defined below) will ultimately be provided exclusively with water from ground water well sources. Based upon the County's preliminary population projections and the City's analysis of the capacity of City wells (once fully developed), the wells should produce a quantity of water to allow adequate additional water to serve the new residents projected by draft County GMA planning for the Tri- Area UGA. 1.1 At present, the City may need to supplement the ground water with surface water to meet this quantity allocation. The City will continue to develop the ground water resource to increase the capacity of the wells. Once the projected daily volume of water is exceeded, the County and any land use applicants will need to seek and develop additional water resources to serve projected growth. If the City is unable to provide the additional water needed as a consequence of unforeseen County land use planning and permitting, or for other utility-related reasons, other purveyors should be determined pursuant to the CWSP process. 1.2 The City reserves the right as a utility to direct its groundwater and surface water resource as necessary to provide the best long term service to its retail and wholesale customers as the City deems appropriate for utility-related purposes. This right to manage the water utility may include diversion from the City's OGWS to serve the Tri-Area as necessary, within the limits of legal constraints and contractual obligations. Water Service Area Resolution -9- 2. TRI AREA URBAN SERVICE AREA. Subject to the available water resource defined above, the City's Tri-Area retail water service area will be reduced in size and geographically defined as follows: Irondale / Hadlock: The Tri-Area Service Area includes Irondale and portions of Port Hadlock. Specifically, the service area is: from Port Townsend Bay, west following Chimacum Creek to the N/S line bisecting Section 34 (Township 30 N, Range 1 W). Then south along this line to the E/W line bisecting the SE 1/4 of the SW 1/4 of Section 34. Then west along this line to the N/S line bisecting the SE 1/4 of the SW 1/4 of Section 34, and then south along this line to Highway 19. The boundary line follows Highway 19 southeast to intersection with the Belle Street. Then west along Belle Street to the N/S line bisecting the SE 1/4 of Section 3 (Township 29 N, R 1 W). Then south along this line to the southern boundary of Section 3. Then east to highway 19. Then north along Highway 19 to Ness Comer Road. Then east along Ness Comer Road to the intersection of Oak Bay Road and follow Oak Bay Road south to the southern boundary of Section 1. Then east to Hadlock Bay then north around the coastline to Chimacum Creek. 2.1 This area is graphically depicted on the map, attached hereto as EXHIBIT B, and represents the core geographic area designated as the Tri-Area UGA (and "UGA Study Area") in the County's draft UGA maps and planning proposals. This area is defined by the existing urban character of the Hadlock and Irondale communities. While the County to date has not designated this area as an UGA under a final UGA Ordinance, the CWPPs anticipate the ultimate designation of an UGA in this area. Water will be provided in this area, to the extent of the capacity of the City's Tri-Area wells, at urban levels of service, with design standards identical to those enforced within the City of Port Townsend. The City reserves the right to deny water connections to potential users who may so heavily draw upon the limited water resource as to eliminate the City's ability to serve its existing or reasonably projected retail and wholesale customer base. In such instance, the applicant will have the opportunity to seek alternative water service through the CWSP process, RCW 70.116.060. 2.2 For utility planning purposes, the service area boundaries are defined in part by the center lines of roadways. At present, the City does not intend to extend water service or provide additional connections to properties located on the side of roadways outside the service area. However, at the completion of the County's UGA study and planning process, the City will review these boundaries and may consider appropriate utility-related standards to define water service on both sides of the roadways. 2.3 The southern line of the Tri-Area service area will be considered an interim boundary, until the County has completed its UGA studies, planning and designation process. Water Service Area Resolution In the event the County designates any area to the south of the Tri-Area service area boundary defined herein as an UGA, the City will work with the County to review whether a service area revision should occur through the CWSP process. 2.4 The City currently serves water to existing customers outside the area described above. The City will continue to serve uninterrupted water to these customers. Additionally, the City will serve water to those persons or entities that have a valid, enforceable contractual right to City water service, based upon reasonable contractual expectations, and contingent upon the filing of a complete land use permit application with Jefferson County or other permitting authority (as determined by the permitting authority). The City reserves the right to review and challenge any purported contractual expectation to receive City water, based upon applicable law. 3. CITY SERVICE AREA (INCLUDING GLEN COVE URBAN WATER SERVICE AREA). The City proposes shifting a part of the eastern urbanizing.portion of the Glen Cove service area from the PUD to the City of Port Townsend. The City's entire proposed service area, including the City's municipal boundaries and areas adjacent to the City's municipal boundaries is geographically described as follows: Port Townsend City Service Area: The Port Townsend Water Service Area shall include the city limits, the county landfill property, the Arcadia Inn property, the area west of the City, the proposed expanded Urban Growth Area, and the Port Townsend Paper Company property. Specifically, these boundaries are: From the Strait of Juan de Fuca, due south along a line extended north from North Jacob Miller Road and south along this road to the County Landfill Road, then west along this road and its extension to the western boundary of Section 8, then south along this line and the western boundary of Section 17 to the E/W line bisecting the NW 1/4 of Section 17, then east along this line to the N/S line bisecting Section 17, then north along this line to the northern boundary of Section 17, then east along this line and the northern boundary of Section 16 to Jacob Miller Road, then south along Jacob Miller Road and Third Street to Discovery Road, then southwest along Discovery Road to the intersection with the railroad right-of-way, then southeast along the railroad right-of-way to the western boundary of Section 16, then south along this boundary to the northern boundary of Section 21, then east along this boundary to the N/S line bisecting Section 16, then north along this line to the E/W line bisecting Section 16, then east along this line to Port Townsend Bay, and then north around the coastline to the beginning point. 3.1 The area to the south and east of the described area would remain within the Water Service Area Resolution -11- PUD's service area, as this area is and will likely remain rural in character. The Glen Cove area proposed to be served by the City roughly corresponds with the City's proposed "out-of- City UGA. ~ In the event the City and the County revise the size of the proposed out-of-City Glen Cove IJGA pursuant to GMA planning, this proposed service area will be adjusted accordingly in view of utility considerations. The City will provide water at urban levels of service, consistent with the design standards enforced in Port Townsend. 4. AREA WEST OF THE CITY. The City currently provides water to retail customers adjacent to and west of the City's municipal boundaries. This is generally a rural area of the County, and the County may adopt rural land use designations and densities for this area. 4.1 The City serves water to existing customers outside the area described in Section B.3 above. The City proposes to adjust this service area, setting a western service area boundary at North Jacob Miller Road. The City will continue to serve uninterrupted water to customers outside the down-sized service area. The City has planning concerns for the future development of areas adjacent to the City's municipal boundaries, in that planning and permitting decisions will directly and substantially impact infrastructure concerns within the City. Service connections within the area west of the City will be provided at rural levels of service. 4.2 Water customers currently fed with City water outside the area to the west of North Jacob Miller Road will continue to receive City water, but no new City water extensions or connections will be made or allowed outside this rural area. The City will serve water to those persons or entities located to the west of North Jacob Miller Road that have a valid, enforceable contractual right to City water service, based upon reasonable contractual expectations, and contingent upon the filing of a complete land use permit application with Jefferson County or other permitting authority (as determined by the permitting authority). The City reserves the right to review and challenge any purported contractual expectation to receive City water, based upon applicable law. 4.3 The City's Biosolids Composting Facility, the County animal shelter, and the Jefferson County Landfill (transfer station) are included within this service ar~. Pursuant to the CWPPs, City water may be made available to serve necessary governmental services in rural areas. The County has an imperative need for assurance of the ability to deliver and continuously serve adequate water to this area for fire suppression purposes. The City is best able to deliver this water in the most economical fashion. 5. WHOLESALE CONTRACTS. Ultimately, the proposed service area revision set forth herein may necessitate the amendment of existing wholesale contracts with the PUD, or new contracts with the PUD or other entities, to further the revisions in service areas and related concerns. In the event the City is not able to negotiate contracts to wholesale water to another entity to serve existing customers and those persons or entities having valid contractual expectations to City water (outside the downsized service areas), the City will continue to Water Service Area Resolution -12- provide water to these customers. 5.1 In the event the City negotiates wholesale contracts with the PUD or other entities to serve existing customers and persons or entities having a valid contractual commitment to City water, the City will include a contract provision requiring disclosure of all known contractual commitments and assuring that the City and the PUD or other entities will honor and perform all existing contractual commitments of the relinquishing utility which have arisen during the term of serving a service area. 5.2 In all areas to be served with City water, through wholesale contracts, the City will install master meters at the service area boundary to measure and monitor the water used in the wholesale service area. The wholesale contract charges will represent a fair calculation of the actual cost to the City to deliver the water to the wholesale customer, including an administration fee and a reasonable share of capital costs for the City to develop an adequate water system to serve the wholesale contract quantities. 5.3 All wholesale contracts will guarantee that the City, the PUD, and any other water purveyor(s) will have access to emergency "inter-ties" to satisfy County-wide water customers in the event of natural or manmade casualty and emergency conditions which result in an interruption or disturbance in the quantity and/or quality of water to any customer groups. 6. ADOPTION OF CITY WATER PLAN; INTERIM CONTROLS. The City will immediately commence amendment and formal adoption of a Master Water System Plan pursuant to policies set forth in this ReSOlution. The Water System Plan will provide capital facility analysis to assist the County and the City in the long-term needs of providing water service to urban and urbanizing areas of eastern Jefferson County. To the greatest extent possible, the Water System Plan adoption process will proceed parallel and consistent with the City's GMA Comprehensive Plan process, subject to SEPA review and public comment. 6.1 Service area revisions contemplated in this Resolution are subject to potential revisions and will not take effect until after public comment, SEPA review through a deliberative public planning process, and completion of the City's Water System Plan and/or the CWSP. The City does not intend to take any interim emergency action to implement a down-sized service area, outside of the CWSP and Water System Plan adoption process, unless any or all of the following events occur: (a) unanticipated growth pressures occur in Jefferson County, including a "rush to the permit counter" which could impair long-term water planning and allocation endeavors, jeopardizing the water available to City and County residents and the City's ability to perfect necessary service area revisions and exchanges contemplated herein; and/or (b) Jefferson County does not adopt appropriate UGAs and/or other growth Water Service Area Resolution -13- controls in the reasonable future, which demonstrably impairs long-term land use and water planning and allocation endeavors in a fashion that jeopardizes the water available to City and County residents; and/or (c) unanticipated high water-consumptive uses are proposed or permitted in the City's existing out-of-City water service areas; and/or (d) other unanticipated emergency utility-related conditions arise which will impact the City and County endeavors to complete water resource and land use comprehensive planning to serve the existing and reasonably foreseeable water needs in the City and/or the County. 7. SUSTAINABLE DEVELOPMENT OF NEW WATER RESOURCES. City staff is directed to work with the County, the PUD, and other existing and emerging water purveyors, to plan and develop long-term alternative water resources, and to obtain from the PUD a commitment to target County-wide utility tax revenues (particularly those levied against City customers) toward this regional benefit. 7.1 The PUD, and/or other existing or emerging entities, as regional rural water purveyors, will have the paramount responsibility to develop necessary regional water resources to serve projected growth (if any) outside of the City's designated water utility service areas. 7.2 In order to ensure the sustainable development and use of regional water resources, the City will work through the Jefferson County Water Resources Council, with the PUD, and with other Water Resources Council members to implement the Dungeness/Quilcene .(D/Q) Water Resources Management Plan to address water resource issues, especially as they relate to threatened fish stocks and groundwater availability and protection. The City will continue to pursue the goal of water resource allocation pursuant to the D/Q Plan. The City will continue to provide funding for this purpose as identified in the City's Capital Improvement ?lano ^~DOPTED by the City C_ouncil of the City of Port Townsend and signed by the Mayor on this~'~' ~ day of~'~--- , 1996. Julie ~t~Culloch, Mayor Attest: .~Hild ,t~Acting City Clerk Water Service Area Resolution -14- ~ b ~- ~ SUGGESTED CHANGE TO TRI AREA WATER PROPOSAL Port Townsend City Counsel: I recommend that the water lines going down Ness Corner road and Roady Drive be available on both sides of the road. The concern of "flag lots" can be relieved by requirements of 50 feet or more of road frontage. This request is reasonable in that it is normal for water lines to be assessable on both sides of the road, makes sense, and makes for better neighbors. Besides, those roads ar~,basically commercial and would greatly limit the intended use of the property. (~ Submitt~ by, , ~ C aig-C. S 'th P,O. Box 690 Hadlock WA~ 98339.