Cities agree to split water

This article appeared in the March 3 edition of The Olympian. The three cities involved in the eminent domain condemnation of the former Miller brewery in Tumwater have agreed not to allow the Thurston Public Utillity District to take part in this action.

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Cities agree to split water
Councils will vote on brewery rights

BY CHRISTIAN HILL
THE OLYMPIAN

LACEY — The county's three biggest cities are set to become partners next week in the bid to secure the former Miller brewery's water rights.

The city attorneys for Lacey, Olympia and Tumwater emerged with a tentative agreement after a lengthy meeting Thursday.

“The attorneys are pretty well convinced that this is a go for all three parties,” Lacey City Attorney Ken Ahlf said in announcing the deal to the Lacey City Council during its Thursday night work session.

The Lacey City Council will consider approval of the agreement during a special meeting Monday. Olympia and Tumwater will do the same at regularly scheduled meetings Tuesday, Ahlf said. All three cities need to approve the agreement.

The deal calls for each city to get an equal share of the water rights if condemnation proceedings against the former brewery property are successful.

A copy of the draft agreement wasn't available for public review Thursday night.

Equal sharing could amount to a maximum of 2.2 million more gallons of water a day for each city at a time when each is hunting for more water to serve growth. It's likely the actual volumes would be lower.

Lacey has the most immediate need. A projected water shortfall there halted new development outside the city limits before the county imposed a development moratorium driven by a different issue.

Water in Washington belongs to the public and cannot be owned by any one individual or group. Instead, they may be granted rights by the state Department of Ecology to use a specific volume for a specific purpose.

Last month, the Olympia City Council voted to begin the condemnation process in neighboring Tumwater out of concern that the larger community might lose the water.

The former brewery is in limbo because its current owner, All American Bottled Water Corp., hasn't secured financing to convert it into a water bottling plant. Under state law, the water rights are relinquished after five years of inactivity.

The city of Tumwater has filed a motion with Thurston County Superior Court to intervene in the case to protect its interests.

On Tuesday night, the Olympia City Council agreed to split equally any water rights the court action might free up.

On Wednesday, several members of the Lacey City Council said they were uncomfortable signing any agreement without also filing a motion to intervene to ensure it has legal recourse if the agreement goes awry.

Under the agreement that emerged Thursday, Tumwater will rescind its motion to intervene, and Lacey and Tumwater will join as partners in the condemnation proceeding filed by Olympia.

“Nobody has the ability to go off on their own,” Ahlf said.

In the court proceedings, the court will determine whether the cities or the current owner are best positioned to use the water “for the greatest public benefit,” according to the law. The cities would be responsible for paying the property owner “just compensation” for the water rights and associated property.

The cities would oppose any action by the Thurston Public Utility District to join in, Ahlf said.

The utility provides water to 1,200 households in the Tanglewilde area outside Lacey. It has bought its water from Olympia for three decades. Under a 2005 agreement, the district must find another water source within the next 20 years because Olympia doesn't want to sell water to the PUD indefinitely.

The PUD won't be easily rebuffed.

In a letter the district sent to the cities Thursday, district President Gary Cooper wrote that the utility will not be “content with the current approach of (Olympia) to keep the PUD at an arm's length.”

Commissioner Paul Pickett said this week the utility is discussing its options, which might include a condemnation proceeding of its own.

“We believe we have a stake in this and a pretty strong authority,” Pickett said Thursday night.

Christian Hill covers the city of Lacey and military for The Olympian. He can be reached at 360-754-5427 or chill@theolympian.com.

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