Mercer Island Utility Board elects Brian Thomas as chair, sets work plan and franchise review

The Mercer Island Utility Board elected Brian Thomas as chair and Steve Milton as vice chair and adopted a departmental work plan that sets timelines for rate discussions, a planned water supply line project projected for construction in 2026, and a review of the Puget Sound Energy franchise agreement.

Board member Brian Thomas, newly elected chair, said, “Thank you. Thank you. I'm honored.” Staff member Jason (staff) told the board the next formal meeting will be Sept. 9 and that rate discussions will begin then and continue into October and possibly November.

The meeting served as an organizational session and included brief introductions of returning and new members. Board members approved the regular hybrid meeting minutes of March 11, 2025; the motion to approve the minutes was moved by Board member Meredith Lair and seconded by Board member Craig Olsen. One member abstained from that vote because they had not attended the March meeting.

Jason reviewed the department work plan and schedule. He said staff will aim to release rate materials with the full meeting packet at least the week before the Sept. 9 meeting, subject to the consultant FCS Group’s timeline. The board was given a three-meeting schedule to follow the rate process: Sept. 9 (introductory review), Oct. 14 (continued discussion) and a tentative Nov. 11 fallback if additional time is needed.

Jason said the city is in design on a new water-supply line and anticipates going into construction in 2026. He told the board the project will require an amendment to the existing Seattle Public Utilities (SPU) contract because ownership of the pipe segment would transfer to the city. “The proposal will be that the city will control ownership of the infrastructure from essentially the East Mercer boat launch all the way to the reservoir facility,” Jason said.

Staff also briefed the board that Confluence Engineering is finalizing a resiliency and reliability plan produced after two recent water emergencies; staff expect to return with that draft plan in the October–November time frame and that the plan could inform future capital projects in the next budget cycle.

On utilities franchise work, Jason said staff are redlining an updated Puget Sound Energy (PSE) franchise agreement that technically has been expired for decades and will be negotiated with outside counsel and brought to the board later in the process. The post–bomb cyclone review will seek to address resiliency and response. Jason said the city currently is treating the prior agreement’s terms as the functional baseline while negotiating updates, and the plan is to separate electric and gas into distinct agreements.

Board members flagged potential conflicts of interest tied to outside employment and affiliations with utility vendors. Board member Brian Thomas, who works for Crown Castle, said he had disclosed his ties and committed in his application to recuse if matters involving PSE (referred to in the meeting as PSC/PSE) present even an appearance of conflict.

As a nonbinding operational item, staff will propose two or three dates in July for site tours of city infrastructure; tours will be limited to no more than three board members at a time to avoid creating a quorum. Jason said city boards typically take August off and that the next formal meeting after the summer recess will be Sept. 9.

No public appearances or public comments were heard at the meeting. The board adjourned following the administrative items and scheduling discussion.