Title
Public Hearing on Potential Transfer of the McAllister Springs Properties to the Nisqually Indian Tribe
Recommended Action
Committee Recommendation:
Not referred to a committee.
City Manager Recommendation:
Hold a public hearing on the potential transfer of the McAllister Springs properties to the Nisqually Indian Tribe. Following the public hearing, adopt a resolution authorizing the Mayor and City Manager to sign all documents necessary to effect the transfer of the properties to the Nisqually Tribe.
Report
Issue:
Whether to transfer the McAllister Springs properties to the Nisqually Indian Tribe
Staff Contact:
Rich Hoey, P.E., Public Works Director, 360.753.8495
Presenter(s):
Rich Hoey, P.E., Public Works Director
Background and Analysis:
In early 2015, the City moved its drinking water supply from McAllister Springs to the more protected McAllister Wellfield. The City took this action to comply with federal and state statutes and regulations requiring improved safety of public drinking water sources. McAllister Springs had been the City’s main source of drinking water since the late 1940s. Over the past two years, the McAllister Springs facilities have sat idle and are no longer in use.
On January 10, 2017, the City Council passed a resolution declaring four of the McAllister Springs properties, totaling 177.2 acres, as surplus to the needs of the City’s Drinking Water Utility. These properties are shown as parcels A, C, D and E on the attached map. Parcel B includes the main water transmission line from the McAllister Wellfield and remains vital for the City’s Drinking Water Utility. Parcel B will be retained by the City.
The development of the McAllister Wellfield has been a cooperative effort with the Nisqually Tribe. In May 2008, the City and Tribe entered into a historic agreement to jointly develop the Wellfield, and to permanently protect the environmentally sensitive McAllister Springs. McAllister Springs, known as She-Nah-Num to the Nisqually Tribe, is the headwaters of McAllister (Medicine) Creek and is historically and culturally important to the Tribe. The 2008 agreement creates conservation restrictions on the properties, and calls for the City and Tribe to work together on access and a plan for long-term use for the properties.
The City Council voted to surplus the McAllister Springs properties due to concern over on-going costs and liabilities associated with maintenance of the properties. On-going costs for taxes, insurance, fire protection, and site maintenance are $25,000 to $30,000 per year. In addition, known facility repair costs exceed $145,000, and are increasing. The City also has legal liabilities connected with its ownership of the properties. These costs and liabilities are currently being borne by the City’s utility rate payers.
While the original agreement with the Nisqually Tribe called on the City to retain ownership of the property, the Tribe has expressed a willingness to take over ownership of the property along with all maintenance costs and liabilities. The Tribe has also expressed a willingness to ensure permanent protection of the properties, and to grant the City periodic access for environmental educational purposes. As a result, the City would keep its obligations under the original agreement, while the Tribe takes on the additional costs and liabilities of ownership. This would represent a relief of burden to Drinking Water Utility ratepayers.
The conditions for the transfer of the four McAllister Springs properties are reflected in the attached documents: 1) Real Estate Transfer Agreement, 2) Statutory Warranty Deed, and 3) Easement Agreement. The Real Estate Transfer Agreement proposes that the Tribe will accept the properties AS-IS, and refers to important conditions in the Statutory Warranty Deed regarding permanent protection of the property. The Easement Agreement provides the City access educational and scientific purposes and for necessary maintenance of a single family well and fire line.
Neighborhood/Community Interests (if known):
The City no longer uses McAllister Springs as a water supply, yet maintenance of the buildings and grounds is currently being borne by the City’s water utility rate payers. Over the years, many residents and school groups have toured McAllister Springs for environmental education purposes. There is interest in maintaining access to the property for this type of environmental education.
Options:
1. Adopt a resolution authorizing the Mayor and City Manager to sign all documents necessary to effect the transfer of the properties to the Nisqually Tribe. This option keeps the City’s obligations under the 2008 Memorandum of Agreement, while relieving cost burden to utility rate payers.
2. Pursue an alternate disposition of the McAllister Springs properties in keeping with the 2008 Agreement with the Nisqually Tribe.
3. Retain the McAllister Springs properties and continue to incur maintenance costs and liabilities.
Financial Impact:
The Drinking Water Utility currently bears the costs of maintaining the McAllister Springs property and facilities. The current assessed value of the four parcels, including vacant water facility buildings, is $1,109,450.
Attachments:
1. Resolution
2. Real Estate Transfer Agreement
3. Statutory Warranty Deed
4. Easement Agreement
5. Map of McAllister Springs properties