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Home My WebLink About11-058-TRN-001 Interlocal Agreement INTERLOCAL AGREEMENT Regarding THE USE AND OPERATION OF THE PIER 2 TERMINAL Between THE PORT OF ANACORTES, a Washington municipal corporation AL r 1-c 19�E' and THE CITY OF ANACORTES, a municipal corporation of the State of Washington. i-WW- , , INTERLOCAL AGREEMENT REGARDING THE USE AND OPERATION OF THE PIER 2 TERMINAL for Prilled Sulfur THIS AGREEMENT (the"Agreement"), dated this day of , 2011, is made pursuant to Ch. 39.34 RCW, by and between the PORT OF ANACORTES, a Washington municipal corporation (the"Port') and the CITY OF ANACORTES, a Washington city (the "City"). The Port and the City are collectively known as the "Parties"). WHEREAS,the Port operates and for the past 80 years has operated one of only eight deep water marine teuninals in Puget Sound know as the"Pier 2". WHEREAS, over the years a wide variety of cargo has been shipped across Pier 2 including logs, petroleum coke and sulfur. These historical uses have varied in intensity over the years and in recent years have declined with the cessation of log shipments. WHEREAS, in 1983 the City issued a shoreline substantial development permit for the construction of a mechanized conveyor loading system at Pier 2 which is designed provide increased efficiencies for loading bulk cargos such as petroleum coke and prilled sulfur. WHEREAS,the City operates and maintains truck routes through the City for access to Pier 2, the Port's truck barge loading facility adjacent to Pier 2, the DCI shipyards and the business in the City that rely on the trucked goods. WHEREAS,the Port and City wish to work cooperatively to increase economic development and family wage jobs in the city and the region. WHEREAS,the regional refineries on March Point and elsewhere are vital economic engines for the region. WHEREAS, one of the by products of the refining process is elemental sulfur which, when turned into a solid form becomes prilled sulfur (small hard irregular pellets) which is exported internationally. WHEREAS,the Port and the City desire to cooperate to preserve the economic viability of Pier 2 and to facilitate the shipment of prilled sulfur from Pier 2. Interlocal Agreement Pier 2 Bulk Terminal Use and Operation-Page 2 WHEREAS,the improvement and continued maintenance of the truck route leading to Pier 2 will provide direct benefit to the Port,the Port's tenants and the Port's truck barge loading facility adjacent to Pier 2 and the business in the City that rely on the truck route. NOW THEREFORE, for and in consideration of the mutual terms and conditions contained herein,the City and the Port hereby agree as follows: 1. Shipment of Prilled Sulfur. The Port intends to enter into agreements with shipper(s)to load and ship prilled sulfur across Pier 2 using the existing mechanized conveyor loading system. The prilled sulfur will be transported to Pier 2 in covered bottom dump trucks and trailers and into the hopper of the existing mechanized conveyor system and thence directly into the hold of a ship or barge berthed at Pier 2 on Guemes Channel. No prilled sulfur will be stored at Pier 2. No capital improvements to existing Pier 2 facilities are anticipated. 1.1. Annual Volume of Prilled Sulfur. The prilled sulfur Ioading rate is anticipated to begin at 100,000 tons per year with a potential for increasing to 300,000 tons per year in the future. The Port and the City understand that the ultimate tonnage of prilled sulfur shipped across Pier 2 is a function of market forces and therefore the Port cannot specify any quantity of prilled sulfur that will be shipped in the future. 2. Payment to the City. In consideration of the agreements contained herein and for the mitigation on the truck routes and streets caused by the trucking of prilled sulfur to Pier 2, the Port will provide a mitigation payment to the City of$2.50 per ton of prilled sulfur that is shipped across Pier 2. This fee shall be paid quarterly to the City based upon the surveyed tonnage exported by ship and barge. This payment is considered full mitigation for impacts to streets and fire safety related to Prilled Sulfur transport through the City of Anacortes and will be dedicated to the street maintenance fund. The City shall ensure that the truck route of 4th Street, Q, and R Avenues, and Market Street are kept in good repair. This fee shall be re-evaluated on a yearly basis after year six and adjusted based on the Ports contract with no negative index in any given year. 3. Administration and Notice. The following individuals are designated as representatives of the respective parties. The representatives shall be responsible for administration of this Agreement and for coordinating and monitoring performance under this Agreement. In the event such representatives are changed,the party making the change shall notify the other party. All notices, demands, requests, consents and approvals which may, or are required to be given by any party to any other party hereunder, shall be in writing and shall be deemed to have been duly given if delivered personally, sent by facsimile, sent by a nationally recognized overnight delivery service, or if deposited in the United States mail and sent by registered or certified mail, return receipt requested, postage prepaid to: Port of Anacortes: Port of Anacortes InterIocal Agreement Pier 2 Bulk Terminal Use and Operation-Page 3 ATTN:Robert W. Hyde, Executive Director First and Commercial Post Office Box 297 Anacortes, WA 98221 City of Anacortes: City of Anacortes ATTN:H. Dean Maxwell, Mayor P.O. Box 547 Anacortes,WA 98221 or to such other address as the foregoing parties hereto may from time-to-time designate in writing and deliver in a like manner. All notices shall be deemed complete upon actual receipt or refusal to accept delivery. Facsimile transmission of any signed original document and retransmission of any signed facsimile transmission shall be the same as delivery of an original document. 5. Dispute Resolution. The Parties shall attempt to resolve all claims, disputes, and other matters in question,arising out of or related to this Agreement,first through informal discussions and then through formal written notification and cure, before resorting to arbitration. 6. Severability. In the event any term or condition of this Agreement or application thereof to any person or circumstances is held invalid, such invalidity shall not affect the enforceability of other terms, conditions or applications of this Agreement and the parties will reasonable cooperate to modify this Agreement to achieve the purposes set froth herein. 7. Term. This Agreement shall be effective when signed and notarized by the duly authorized governing bodies of the Port and the City and remain in full force and effect until modified or terminated by mutual agreement of the Parties. 8. Modifications. This Agreement may be amended and modified by a written agreement signed by the Parties, in the same manner as the signing of the original Agreement. 9. Waiver. No failure by the parties to insist upon the strict performance of any term or condition of this Agreement, or to exercise any right or remedy upon a breach thereof, shall constitute a waiver or breach of any other term or condition of this Agreement. 10. Governing.Laws. This Agreement and the rights of the Parties hereto shall be governed by and construed in accordance with the laws of the State of Washington. 11. No Third Party Beneficiaries. This Agreement is intended to be enforceable only by the Port and the City. There are no third-party beneficiaries to this Agreement. 12. Entire Agreement. This Agreement contains all terms and conditions agreed upon by the parties. All items incorporated herein by reference are attached. No other understandings, oral Interlocal Agreement Pier 2 Bulk Terminal Use and Operation-Page 4 or otherwise, regarding the subject matter of this Agreement shall be deemed to exist or to bind either of the parties hereto. 13. Execution. The persons signing below represent and warrant that they have the requisite authority to bind the Party on whose behalf they are signing. IN WITNESS HEREOF, the Port and the City have caused this Agreement to be executed in their names and to be attested by their duly authorized officers this 1,(6) day of tAxI , 2011 PORT OF ANACORTES may. By: nature ob Hyde, Execu ' e Director Date: 5/i6/zof / CITY OF ANACORTES By: 604,,,, " yl r"7 Signature H. Dean Maxwell, Mayor • Date: S �� IJ lnterlocal Agreement Pier 2 Bulk Terminal Use and Operation-Page 5