Title
Approval of Interlocal Agreement Between the Cities of Olympia, Lacey and Yelm for Implementing Deschutes Water Rights Mitigation Strategy - Phase V
Recommended Action
Committee Recommendation:
Not referred to a committee
City Manager Recommendation:
Move to approve the Interlocal Agreement Between the Cities of Olympia, Lacey and Yelm for Implementation of the Deschutes Water Rights Mitigation Strategy - Phase V and authorize the Mayor to sign the agreement.
Report
Issue:
Whether to approve an interlocal agreement to continue water rights mitigation and property management activities at the Deschutes River property with the Cities of Lacey and Yelm.
Staff Contact:
Susan Clark, Senior Planner, Public Works/Water Resources, 360.753.8321
Presenter(s):
None - Consent Calendar Item
Background and Analysis:
Over the past decade, the Cities of Olympia, Lacey and Yelm have worked together to complete Washington State Department of Ecology (Ecology) approved water right mitigation strategies under four interlocal agreements. During this time, the Cities completed the following work within the Deschutes River basin:
• Purchase of water rights and the 185 acre Deschutes River property
• Tree planting along 50 feet of the Deschutes River
• Design documents and bid specifications for future wetland habitat restoration mitigation projects
• Deschutes River property management activities
Such work was completed under four interlocal agreements (Phases I - IV) and each city shared equally in project expenses.
The Phase V interlocal agreement for Council consideration includes the following projects:
• Construction of the wetland habitat restoration mitigation projects designed under the Phase IV interlocal agreement
• Planting and maintenance of native plant species along river bank and wetlands
• Property management activities (e.g. weed control, fence removal, pasture management)
In 2015, the City of Yelm lost their final appeal through the Washington State courts for its water right permit. With the loss of its water right, Yelm no longer benefits from the Deschutes River property mitigation projects. Yelm continues to own the Deschutes River property with Olympia and Lacey.
The Phase V interlocal agreement modifies Yelm’s financial participation in the partnership. Yelm will continue to cost-share equally in property management expenses. Yelm will also reimburse Olympia for planting expenses incurred by Olympia under the Phase IV interlocal agreement. For the wetland habitat restoration and native species planting projects, this interlocal agreement allows Yelm to elect to provide a one-third cost-share in the projects in the future.
Neighborhood/Community Interests (if known):
The three cities continue to communicate with the Squaxin Island Tribe on ideas on future restoration projects at the Deschutes River property.
Options:
1. Approve the interlocal agreement with the cities of Lacey and Yelm to implement required water rights mitigation actions and conduct property management activities. This will ensure compliance with Olympia’s water right permit.
2. Decline or modify the interlocal agreement. This will jeopardize Olympia’s ability to complete the water rights mitigation actions required by the Department of Ecology.
Financial Impact:
This interlocal agreement authorizes the three cities to spend $1,400,735 total. Olympia will pay its portion of the $1,400,735from the Drinking Water Utility Capital Fund. Depending upon Yelm’s level of participation, Olympia’s proportionate share ranges from $672,805 (current scenario) to $466,911 (optional scenario). See attached Expense Table for cost-share details.
Attachments:
Interlocal Agreement
Expense Table