Resolution No. 5505 authorizes the Mayor to execute an interlocal agreement with the City of Algona establishing a contractual relationship governing the provision of water and sewer utility service for several properties located along the boundaries between Auburn and Algona’s utility service areas.

The City of Algona approved this interlocal agreement on March 9, 2020.

Background Summary:

As development occurred along the boundary between the Cities of Auburn and Algona in the 1990s, there were several cases where, for convenience and availability, buildings located in one city were connected to sewer lines owned and maintained by the other city.  As a result, provision of sewer service, provision of water service, jurisdictional location of the properties, and billing for utility services have been inconsistent. 

The 3 properties along Boundary Boulevard (see the attached map) lie within the city limits of Algona, receive their water from Algona’s water system, but are connected to Auburn’s sewer main located in Boundary Boulevard.  Infrastructure in that area had been constructed as part of a large development, parts of which were in Algona, and parts of which were in Auburn.  There was never a formal agreement between the two cities describing the provision of utility service to the properties.  Since their construction, the City of Algona has billed the properties for both water and sewer service.

The 3 properties along West Valley Highway (see map) lie within the city limits of Auburn but are connected to the City of Algona’s sewer main.  At the time that 1611 West Valley Highway was developed, the only sewer line available west of SR-167 belonged to Algona, so the cities entered into an agreement to allow Algona to serve several parcels in that area and three buildings were ultimately connected to those lines.  Subsequently, when a large development occurred on the hill west of these parcels, Algona’s system was unable to provide service to it, so that developer extended City of Auburn sewer through the area as shown on the map, making it available for connection to all of these properties.  Billing for sewer service for these parcels has been inconsistent, with Auburn currently billing two of the parcels for sewer, while Algona billing one.  Auburn currently provides and bills for water service for all of these parcels. 

Both Cities staff considered re-connection of the properties to the sewer lines owned by their respective jurisdictions, but determined that that effort would be unnecessary and an inefficient use of resources, as neither city was experiencing capacity or maintenance issues caused by these connections.  Alternatively, staff determined that a formal agreement specifying the service and billing responsibilities of each city would be efficient and would provide a clear understanding between the cities.

The effect of this proposed agreement will be to establish a billing and services arrangement that is practical and equitable between the cities.  Since the sets of parcels are similar in size and water/sewer use, it is practical for Algona to continue to bill the Boundary Boulevard properties for both water and sewer, and for Auburn to bill the WVH properties for both water and sewer.  The agreement does make provision for periodic reviews of water usage data to ensure that the “trade” of sewer service areas remains comparable.