Title
Approval of Amendment to Interlocal Agreement for Sale of Water to Thurston PUD No. 1
Recommended Action
Committee Recommendation:
Not referred by a committee.
City Manager Recommendation:
Move to approve and authorize the Mayor to sign an updated interlocal agreement to sell water to Thurston PUD No.1.
Report
Issue:
Whether to approve the updated Interlocal Agreement with Thurston PUD No. 1.
Staff Contact:
Laura Keehan, Senior Planner, Public Works Water Resources, 360.753.8321
Andy Haub, Water Resources Director, Public Works Water Resources, 360.753.8475
Presenter(s):
None - Consent Calendar Item
Background and Analysis:
The City has supplied water to Thurston Public Utility District's (PUD) Tanglewilde water system since 1964.
In May 2005, the City and the PUD signed the Intergovernmental Agreement for Sale of Water, Assignment of Water System Accounts, and Management of Water System. This agreement defined new roles and responsibilities because the City had historically operated and maintained the PUD water system. In essence it changed the City's role from operation and maintenance to becoming a wholesale water supplier to Thurston PUD. The agreement also outlined the need for Thurston PUD to find a water supply source other than the City.
The PUD has actively pursued securing its own water supply. Over the past several years, the PUD redeveloped its existing well, drilled two new wells, and constructed a new reservoir. The new facilities means the PUD will no longer need to purchase water from the City. The PUD is currently waiting for the final water rights for its supply from the Department of Ecology. Once the water right is received, the transition will be formalized. The City and PUD are scheduled to make this transition formal no later than June 2014.
The updated interlocal agreement being considered by Council has two major changes.
1. Allows for a 9-month termination notice. The 2005 agreemen...
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