Title
ACQUISITION OF BEACON HILL WATER AND SEWER DISTRICT OWNERSHIP SHARE OF DECOMMISSIONED FISHERS LANE WATER TREATMENT PLANT
COUNCIL INITIATIVE ADDRESSED:
Continue effective financial management
CITY ATTORNEY REVIEW: REQUIRED
SUMMARY STATEMENT:
On December 18, 1978, the City and Cowlitz PUD entered into the Regional Water Treatment Plant Participants’ Agreement to establish a regional water treatment facility and specify the rights and obligations of each party related to construction, operation, and maintenance of water treatment facilities. The City’s water treatment plant at 101 Fishers Lane was expanded to serve the customers of both agencies, and the PUD connected to the City’s water system. On December 28, 2010, Beacon Hill Water and Sewer District (BHWSD) acquired the PUD’s water system along with the rights and obligations specified in the Participants’ Agreement.
In accordance with the terms of the Participants’ Agreement, each agency’s ownership share of regional water treatment assets fluctuates based on a 25-year average of water consumption, except that the land occupied by the Fishers Lane WTP is owned exclusively by the City. Currently, BHWSD’s ownership share of all other assets is 14.78%, with the City’s share at 85.22%.
After completing the Mint Farm Regional Water Treatment Plant in 2013, the City and BHWSD decommissioned the Fishers Lane Water Treatment Plant (FLWTP) and declared it surplus to the needs of each agency. Efforts to sell or lease the decommissioned Fishers Lane WTP are complicated and cumbersome because the governing boards of both agencies must approve the terms of any lease or sale agreements, and all revenue received must be disbursed to and reported by both agencies. These challenges were highlighted during recent efforts by MiningSky to develop a computer server and data mining operation at the Fishers Lane WTP site.
To eliminate these complications to re-purposing the site, staff recommends the City acquire...
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