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Roosevelt City Council signs off on water agreements: reciprocal exchange, Sharmell Acres purchase and wheeling-fee deal
Summary
Council directed staff to negotiate a reciprocal water-exchange agreement with operational protections, approved purchase of Sharmell Acres infrastructure contingent on CIB loan transfer, and accepted a wheeling-fee arrangement to resolve past unpaid fees; all measures passed with counsel review as needed.
The Roosevelt City Council discussed and approved a package of water-related agreements, directing staff to draft contract language that protects Roosevelt’s infrastructure while keeping reciprocal supply options open.
Staff summary and key protections: Staff (Speaker 8) presented a draft reciprocal water-exchange agreement modeled on an earlier Ballard template but with modifications: reciprocity in sales (same price both directions), provisions requiring the requesting party to pay for necessary infrastructure modifications, and operational safeguards to avoid line damage from rapid valve operations ("water hammer"). Council debated whether to retain a 300 gallons-per-minute (gpm) cap carried over from the 2015 agreement or to replace that with language that limits the rate of change and requires PRV/rate-control equipment; staff agreed to draft language addressing rate-of-change protections and notification protocols.
Base rates, escape clause and operational control: Council discussed whether to include a base (annual/monthly) fee to cover maintenance of idle infrastructure. Opinions ranged from keeping arrangements clean to adding a modest base charge if the other party did not use the connection for an extended period. Council directed staff to draft an escape clause (a 3–5 year nonuse trigger was discussed) and to include reasonable notice provisions and operational controls (water operator to decide turns-on) to protect Roosevelt’s supply priority as required under state constitutional provisions.
Sharmell Acres purchase: Staff proposed a purchase of infrastructure in Sharmell Acres for $1,723,000 with an estimated net due of about $934,000 after assumed loan terms. The council approved moving forward subject to legal review and a condition that payment or loan assumption be tied to CIB transfer approval (payment to occur within 30 days of CIB approval). Staff noted maps and final exhibits must be prepared prior to closing.
Wheeling fee and historic payments: Council reviewed a wheeling-fee request from another district for prior use; staff negotiated a two-stage approach: a $1 per 1,000 gallons interim payment until a contract is executed, then 35¢ per 1,000 thereafter. Staff cited that the amount involved and the goodwill gained by negotiating a settlement outweighed pursuing litigation. Council approved proceeding with negotiated terms.
Council action and next steps: For each agreement, council approved motions directing staff to finalize contract language reflecting the discussed protections, include a 3–5 year nonuse/escape clause as appropriate, and submit final drafts to legal counsel for review before final execution. Speaker 8 said staff would review language regarding rate-of-change protections and PRV upgrades with operations staff; a motion to approve exchange-agreement modifications and Sharmell Acres purchase as discussed passed by voice vote. Speaker 5 summarized the package and noted staff would return with legal-reviewed documents for ratification.
What remains: Staff will prepare formal contract language, maps/exhibits for Sharmell Acres, and counsel-reviewed agreements with operational protections for council consideration and final approval.
