89? City of Kodiak Service Area 1 Water Sewer Services Utility Rate Agreement.t
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UTILITY RATE AGREEMENT FOR WATER AND SEWER SERVICE
THIS AGREEMENT made and executed this 2�ay of .404we— ,
;1983, by and between the KODIAK ISLAND BOROUGH, a municipal corporation of the
State of Alaska, (hereinafter referred to as "the BOROUGH") and the CITY OF
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. 1) 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:
Section 1 Water Rates and Charges (a) For water supplied to Service
District No. 1 the Borough.shall be charged at the initial rate of $0.80 per
1000 gallons.
(b) The parties acknowledge and agree that the initial rate charged to
the 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
comment 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
,may include the cost of the study as part of its cost of operations,
maintenance and repairs for purposes of future adjustments of water rates.
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(c) 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
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charged for water supplied to Service District No. 1 upon thirty days advance
written notice to the Borough provided, however, that there shall be no more
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than one such increase during any twelve month period and provided further
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that the percentage increase in the water rate charged to the Borough for
Service District No. 1 over the rate previously charged shall be no greater
'than the percentage increase in the City's cost of collection, treatment and
distribution of water for its water system as a whole during the intervening
period of time.
Section 2 Sewer Rates and Charges. (a) 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 (a),
.above on the basis of the number and type of customers discharging into such
;lines.
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(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
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sewage rate study shall be borne by the City but may be recovered as part of
its cost of operations, maintenance and repairs for purposes of future
adjustments of sewage service rates. I
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(d) The City may increase the rate charged the Borough for treatment,
processing and disposal of sewage from 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
By :ZBoroug
4
h Manager
CITY OF KODIAK
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By: ,
Gi ty 4anager
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EXHIBIT A
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Limits
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Map 2
Service District I
Mill Bay-Monishka Service Area
Ordinance No. 78.6-0 • April 1978
Water • Sewer • Roads
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