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Council approves first amendment to Salal Water supply agreement; staff warns of timing and cost risks
Summary
The council authorized Amendment No. 1 to the wholesale water supply agreement with Salal Water Association to extend contract dates; staff warned possible additional costs if Salal’s intertie completion slips and the city must purchase more water from Seattle Public Utilities.
The North Bend City Council authorized the first amendment to the wholesale water supply agreement with Salal Water Association by a unanimous vote.
Public works staff member Rigos summarized the amendment as an extension of deadlines tied to two intertie projects included in the 2023 agreement: the Boxley Creek intertie (about 98% complete) and the larger North Bend Way intertie for shared domestic supply. Rigos said the amendment extends the agreement date from June 30, 2025, to September 30, 2025.
Rigos told council Salal expects substantial completion of construction by about Aug. 7, 2025, with physical completion around Oct. 3, 2025, and said the Boxley Creek intertie should be done within days. Council members asked clarifying questions about mitigation timing and potential additional city costs if Salal’s delivery is delayed. Rigos explained the city may need to buy more water from Seattle Public Utilities (Hobo Springs supply) if Salal is not delivering; that purchase would increase city costs. He said the main concern would emerge if a dry late summer or fall reduces local supplies.
Council member Tremolata moved to authorize Amendment No. 1 to the Salal water agreement and Council member Heather Collin seconded; the motion passed 7–0. Council discussed the legal remedies for delays; city attorney Kendra (present) noted potential breach‑of‑contract issues but recommended executive session for detailed legal discussion.
Discussion versus decision: council voted to approve the amendment (a contractual extension). Substantive discussion covered schedule, mitigation timing, and the potential financial effects of later completion; council asked staff to continue monitoring progress and to return to council if conditions worsen.
Clarifying details: amendment extends the agreement date to 09/30/2025; Rigos said substantial intertie completion was expected roughly Aug. 7, 2025, with final physical completion about Oct. 3, 2025. Boxley Creek intertie is approximately 98% complete in staff’s estimate. If Salal delivery is delayed and the city must use Hobo Springs/Seattle Public Utilities more heavily, that could incur additional unplanned costs to the city; staff did not provide a dollar estimate at the meeting.
The motion to authorize Amendment No. 1 passed unanimously.
