Loading...
1983-04 City of Kodiak Service Area 1 Water Sewer Services UTILITY RATE AGREEMENT FOR WATER AND SEWER SERVICE THIS AGREEMENT made and executed this ,~ay of ~/- , ;1983, by and between the KODIAK ISLAND BOROUGH, a municipal corporation of the · State of Alaska, (hereinafter re~erred to as "the BOROUGH") and the CITY ~F :'KODIAK, a municipal corporation of the State of Alaska, (hereinafter referred to as "the CITY"). WITNESSETH: WHEREAS, pursuant to AS 29.63.090 and Ordinance No. 78-6-0 dated April 18, 1978, the BOROUGH has established a service area for the purpose of providing water and sewer services (Service District No. l} the boundaries of which are more specifically described in Exhibit A; and WHEREAS the CITY currently owns and operates facilities providing water and sewage treatment services; and WHEREAS, the ADEC grant for funds to construct the Service District No. 1 Water and Sewer Improvements requires the execution of a utility rate agreement between the CITY OF KODIAK and the KODIAK ISLAND BOROUGH, prior to beginning construction, and WHEREAS, the terms of the entire Intergovernmental Agreement have not been resolved; and WHEREAS, the KODIAK ISLAND BOROUGH will open bids for the first project on April 13, 1983; and WHEREAS, agreement has been reached on water and sewer utility rates to be charged Service District No. 1 by the CITY OF KODIAK. NOW, THEREFORE, the said parties Hereby Agree As Follows: Sectibn 1 Water Rates and Charges. {al For water supplied to Service District No. 1 the Borough. sh~ll be charged at the i6itial rate of $0.80 per lO0O ~allons. (b) The parties acknowledge and agree that the initial rate charged to ~he Borough shall be adjusted in accordance with a water rate study being conducted for the City by the firm of CH2M Hill and that the adjusted rate to be charged to the Borough shall be the rate established for wholesale customers by the rate study. The Borough shall have the right to review and icomment on the rate study before it is adopted or approved by the City. The total cost of the water rate study shall be borne by the City but the City ;~ay include the cost of the study as part of its cost of operations, maintenance and repairs for purposes of future adjustments of water rates. (cl. After the initial adjustment of the rate charged to the Borough, as · specified in paragraph (b) of this Section, the City may increase the rate i.charged for water supplied to Service District No. 1 upon thirty days advance ilwrttten n~tce to the 8orough provided, however, that there shall be no more ~ithan one such increase durtng any twelve month period and provided further that the percentage tncrease in the water rate charged to the Borough for Service District No. 1 over the rate previously charged shall be no greater Ithan the percentage increase in the City's cost of collection, treatment and 'idistribution of water for its water system as a whole during the intervening ?eriod of time. 'Section 2 Sewer Rates and Charges. (al For sewer hookup purposes, individual customers within Service District No. 1 who are connected directly to the City sewer system (without first discharging to a line which is metered at its point of connection to the City sewer system) shall be classified in a manner identical to the classification of other individual customers utilizing the City sewer system and the Borough shall be charged an amount equal to the total sewer charges that would otherwise be assessed against said customers within Sewer District No. 1 as if said customers were located within the City and billed individually by the City. (b) With respect to treatment and processing of sewage from Service District No. 1 which enters the City sewer system through a metered line, the City shall charge the Borough a rate based upon the total gallonage of sewage so entering the City system, which rate shall assure recovery by the 'City of all of its costs and expenses associated with treating, processing and ,disposing of said sewage; provided, however, that until completion and approval of a future sewer rate study, the initial rate to be charged for 'such .service shall be calculated in the manner specified in paragraph (al, above on the basis of the number and type of customers discharging into such · t (c) The City shall conduct a future sewage rate study and may adjust the rate charged to the Borough in accordance with the rate study. The Borough ~shall have the right to review and comment on the rate study and/or other records of the City which pertain to sewage rates. The total cost of the '~ewage rate study shall be borne by the City but may be recovered as part of :Jts cost of operations, maintenance and repairs for purposes of future (.adjustments of sewage service rates. {d) The City may increase the rate charged the Borough for treatment, processi'ng and disposal of sewage frcm Service District No. 1 upon thirty days advance written notice to the Borough~ provided, however, that there shall be no more than one such increase during any twelve month period and 'provided further that the percentage increase in the rate charged the Borough shall be no greater than the percentage increase in the City's costs of treatment, processing and disposal of sewage for its sewer system as a whole during the like period of time. Section 3. Term. This agreement shall be in full force and effect until the Intergovernmental Agreement is executed, but may be rescinded by either party if said Intergovernmental Agreement is not executed within six (6) months of the date hereof,,provided that the right of recision will not be unreasonably exercised. Furthermore, nothing in this utility rate agreement shall be construed as affirmatively requiring the City to provide water or sewer services to Service District No. 1 unless an Intergovernmental Agreement is in fact executed. Section 4. Effective Date. The effective date of this agreement shall be as of the day and year first above written. IN WITNESS WHEREOF, the parties hereto have executed this agreement as of the day and year first above written. KODIAK ISLAND BOROUGH uorough Manager ' F CITY OF KODIAK Gi ty/f4anager EXHIBIT A Map 2 Service District 1 * Mill Bay-Mon=shka Service Are~ Ordinance No. 78-6.D · April 1978 Water * Sewer * Roads o