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Council weighs takeover of Shore Acres water system; staff to seek inspections and conditional intent
Summary
City staff briefed council on requests from Shore Acres and Washington Water about ownership and operational responsibility for the Shore Acres water system; council asked staff to pursue a letter of intent conditioned on system inspection, documentation of improvements and clear financial terms.
Deep Harbour staff presented three options Thursday for the Shore Acres water system after the Shore Acres volunteer water board told staff it wanted to transfer management and ownership.
Director Aye Campbell described the history: the city has served Shore Acres customers through wholesale meters for decades but does not operate the system beyond the meter. "Shore Acres water system has been around for a very long time," Campbell said, and staff reported the Shore Acres board recently told the city it is pursuing a transfer to Washington Water, a private water provider, but would prefer a local municipal owner if the city were willing.
Staff said Shore Acres serves roughly 800 customers through a small, out‑of‑city system supplied by local wells; the system includes areas both inside and outside city boundaries, and many Shore Acres customers are currently charged higher (1.5×) non‑city rates. City staff identified key questions for a potential municipal takeover: an up‑to‑date system map and documentation of recent repairs, confirmation the system meets state Department of Health requirements, a condition assessment to identify deferred maintenance or capital upgrades, and a financial analysis of rate structures and revenue implications.
Council discussed options including (1) declining to take the system, (2) taking over system ownership immediately, and (3) negotiating a conditional letter of intent that would commit the city to further consideration after Shore Acres provides system documentation and allows an inspection. Several council members favored the conditional approach to avoid inheriting undocumented deferred maintenance; one council member noted a prior annexation/financial study that found annexing the larger Reid Road area could be a net annual negative to city finances based on 2023 assumptions.
Staff said they would follow up immediately by asking Shore Acres for system maps, recent maintenance records, and a site inspection; staff also noted that if the city assumed ownership the Shore Acres customers who remain outside city limits would likely continue to be billed at non‑city rates until service connections and tariffs are reviewed. No formal transfer or ordinance was approved; council directed staff to pursue the conditional letter of intent and to return with the inspection results and recommended next steps.
