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HomeMy WebLinkAbout2018-04-09-minutes-cds-study-sessionKITTITAS COUNTY COMMISSIONERS CDS Study Session Regular Meeting Monday April 9, 2018 - 1:30 PM BOCC Conference Room 205 West 6th Room 108 - Ellensburg 1. Call to Order 2. Discussion Regarding UWUIC Appendix C 3. Discussion Regarding Final Plat Approvals 4. Discuss a Contract for Services Sale of Water Mitigation Certificates S. Other business 6. Adjourn Created on 4/6/2018 8:42:12 AM KITTITAS COUNTY CDS STUDY SESSION MINUTES COMMISSIONERS' AUDITORIUM, 205 WEST 5TH ROOM 109 - ELLENSBURG Regular Meeting MONDAY 1:30 PM April 9, 2018 Board members present: Chairman Laura Osiadacz, Vice -Chairman Obie O'Brien & Commissioner Paul Jewell. Others: Dan Carlson, Mike Flory, Steph Mifflin, Calvana Carper (CDS), Mark Cook, Candie Leader (PW), Erin Moore (PH), Daily Record Reporter and four members of the public. Meeting was called to order at 1:33 P.M. DISCUSSION REGARDING WUIC APPENDIX C Director Carlson requested for input from the board regarding how to handle applicants that score below 40 on the WUIC Appendix C Assessment. The board directed that if the applicant scores below 40 it would then be considered low hazard and the WUIC Code would not apply. DISCUSSION REGARDING FINAL PLAT APPROVALS Director Carlson stated that his department is facing a challenge with final plat approvals and getting all appropriate department approvals before presenting to the board in 30 days. Director Carlson was granted permission to add final plat approvals to upcoming study sessions. DISCUSS A CONTRACT FOR SERVICE SALE OF WATER MITIGATION CERTIFICATES Commissioner Jewell presented to the board a contract for services that would permit the county to represent Reecer Creek Water Rights (RCWR). This then would allow Kittitas County to sell mitigation certificates from RCWR water bank through the county's process. The certificates would be sold for exactly the same price, under the same terms, and then would be entered into the county's metering program. Meeting adjourned at 3:13 P.M. 2018-04-09 MINUTES 1 KITTITAS COUNTY COMMISSIONERS KITTITAS COUNTY, WASHINGTON Laura Osiadacz, Chairman Contract For Services Sale of Water Mitigation Certificates This Contract for Services for the Sale of Water Mitigation Certificates ("this Agreement") is entered into between KITTITAS COUNTY ("the County"), a political subdivision of the State of Washington, and Reecer Creek Water Right, LLC ("RCWR") (hereinafter collectively referred to as "the Parties"), as of 2018 ("the Effective Date"). Whereas: the County operates a water banking program that provides for the sale of water mitigation certificates in the form of a package "A" and a package "B" ("County water mitigation certificate"); and Whereas: the County requires a water mitigation certificate as one of the means to show adequate provision of potable water for the issuance of a building permit; and Whereas: the County operates a metering program to monitor water consumption as a condition of purchasing a County water mitigation certificate from the County: and Whereas: RCWR has water rights held by the Department of Ecology in the Washington Trust Water Rights Program authorized to provide offsetting mitigation for third parties seeking 1) to mitigate for existing groundwater withdrawals, 2) water budget neutral decisions, or 3) permits for new surface and groundwater uses, as authorized in the Trust Water Right Agreement, attached hereto as Exhibit A and incorporated by this reference ("RCWR's Trust Agreement"); and Whereas: RCWR desires that the County also market and sell water associated with RCWR's Trust Agreement ("RCWR's water"); and Whereas: the County desires to contract with RCWR to market and sell RCWR's water under the terms of this Agreement so that the County can ensure availability of water to its citizens consistent with the County's water banking program while also retaining the water rights that the County currently owns for as long as possible. NOW THEREFORE, the Parties agree as follows: 1) Scope of services to be performed by the County. (a) The County will sell RCWR's water in the form of a County water mitigation certificate, at the same prices and under the same terms, as those offered by the County. (b) Purchasers buying RCWR's water will be required to pay the necessary fees and agree to the terms for being a part of the County's metering program. (c) The County shall be responsible for all processing and servicing. (d) In the event the purchaser could buy either a water mitigation certificate associated with water owned by the County or a water mitigation certificate associated with RCWR's water, the County will sell water mitigation certificates associated with RCWRs water before selling water mitigation certificates associated with a County -owned Trust Water Right Agreement. This provision shall only apply to RCWR's "green zones" as mapped by the Department of Ecology and published on Ecology's website. Determination from which water banks to sell water mitigation certificates to purchasers in the "yellow zones" shall be at the discretion of the County. (e) To the extent that the County enters into agreements similar to this Agreement with other non -County entities, the Parties agree that the County shall sell at least 25 water mitigation certificates associated with RCWR's water consistent with subsection (d) above before the County sells water mitigation certificates from other non -County entities,; thereafter, the County will sell water mitigation certificates from. the non - County entities on a rotational basis with each individual water mitigation certificate alternately coming from water associated with a non -County Trust Water Right Agreement. (f) The County will pay RCWR Twenty Dollars ($20) per acre foot per month for any water used by the County in accordance with paragraph 2.b. below. 2) Obligations of RCWR. a) RCWR will reserve enough of RCWR's water for Five Hundred (500) Package `B" mitigation certificates, approximately 64 acre-feet for the County's use under this Agreement for the Term, defined below. b) RCWR will allow any portion of RCWR's Water reserved for this Agreement that is not allocated to a water mitigation certificate under this Agreement to be used by the County during periods of curtailment of groundwater uses in Kittitas County ("Curtailment Period") to offset the use of groundwater by county residents for indoor domestic purposes during the time this contract is in effect.. 3) Time of Performance. The term of this contract shall be for five (5) years beginning the Effective Date ("the Term"), with possibility of extending the length of the term on the mutual written agreement of the Parties. 4) Compensation. The County shall pay RCWR the amount received for each water mitigation certificate associated with RCWR's water sold, less the same administrative fee the County charges for sales of water mitigation certificates associated with Trust Water Right Agreements owned by the County, and less Five Hundred Dollars ($500.00) per water mitigation certificate for the County's in -lieu fee (ILF) program which contributes funding from each certificate sold by the County to accounts dedicated to water supply and in -stream improvements, as described in the Settlement Agreement between the Department of Ecology, Futurewise, and Kittitas County, dated May 15, 2014. 5) Quarterly Accounting and Payment. The County shall remit to RCWR the total balance due to RCWR, on a quarterly basis (to the extent there is any balance due in a particular quarter) with a full accounting of sales and fees withheld. The county shall also be responsible for reporting all sales and metering data to Ecology as required by the Trust Water Right Agreements and the County's Over -the -Counter mitigation certificate processing proposal as approved by Ecology. 6) Hold Harmless and Indemnification. RCWR agrees to protect, save harmless, indemnify and defend, at its own expense, the County, its elected and appointed officials, employees and agents, from any loss or claim for damages of any nature whatsoever arising out of the performance of this Agreement, including claims by RCWR's employees, volunteers or third parties, except for those damages solely caused by the negligence or willful misconduct of the County, its elected and appointed officials, employees or agents. 7) Termination. a. Either the County or the RCWR may terminate this Agreement upon ninety (90) days written notice for any reason other than otherwise provided herein in which case the County shall pay RCWR for all amounts due in performing the contract to the date of termination. b. The invalidity or unenforceability of any particular provision of this Agreement shall not affect other provisions hereof and this Agreement shall be construed in all respects as if such invalid or unenforceable provisions were omitted. 7) Exercise of rights or remedies. Failure of either party to exercise any rights or remedies under this agreement shall not be a waiver of any obligation by either party and shall not prevent either party from pursing that right at any future time. 8) Governing Law and Venue. This shall be governed by and interpreted under the law of the state of Washington. Any action, suit, or judicial proceedings for the enforcement of this Agreement shall be brought in the Superior Court for the State of Washington in Kittitas County, Washington. 9) Documents Included in Agreement. This agreement constitutes the entire agreement between the parties and includes the following documents: 1. This Agreement. 2. Fee Schedule. 3. RCWR's Trust Agreement. 10) Condition Precedent. This agreement and its terms must be approved by Ecology and the Water Transfer Working Group ("WTWG"), including but not limited to Ecology and WTWG approval of the issuance of water mitigation certificates from RCWR's water through the County's "Over -the -Counter" Program, and without such approval this agreement is null and void. The County agrees to prepare the necessary documentation for Ecology and WTWG review and approval, and RCWR agrees to cooperate with the County in seeking and obtaining WTWG review and approval. IN WITNESS WHEREOF, the parties have executed this Agreement this day of 2018,. Reecer Creek Water Right, LLC S:i lature of Signatory {Date: I) t°ittt Name of tiatory BOARD OF COUNTY COMMISSIONERS KITTITAS COUNTY, WASHINGTON Laura Osiadacz, Chairman Obie O'Brien, Vice -Chairman Paul Jewell, Commissioner Attest: Clerk of the Board Approved as to Form: By: Deputy Prosecuting Attorney RCWR's Address: Sox- X 08 (t Z'1-. County's Address: Kittitas County 205 West 5th Avenue, Suite 108 Ellensburg, WA 98926 RCWR's Address: County's Address: PO Box 808 Kittitas County Cle Elum, WA 98922 205 West 5th Avenue, Suite 108 Ellensburg, WA .98926