Lacey signs on to water deal

The following article appeared in the April 28, 2006 edition of The Olympian.

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Lacey signs on to water deal
County’s three biggest cities in accord on All American plan

BY CHRISTIAN HILL
THE OLYMPIAN

LACEY — The county’s three largest cities now have agreed to jointly buy the water rights of the former Miller brewery after the Lacey City Council signed off on the accord Thursday.

The council approved a settlement that will enable the cities to acquire all water rights owned by All American Bottled Water Corp. and pay $1,750 for every acre-foot of water that the state determines is valid.

In the same vote, the council authorized the cities to supply half of their newly acquired water to All American for its as-yet-unrealized business operation for 99 years. Under the agreement, All American can receive no more than 1.8 million gallons per day.

There was no discussion among Lacey council members before the unanimous vote.

In February, the city of Olympia sued to condemn the water rights at the property in neighboring Tumwater. The cities of Lacey and Tumwater later joined the petition. All three cities need to secure more water to serve their growing populations.

The cities and All American agreed to the settlement to avoid a protracted legal fight.

The negotiated price for each acre-foot is “in the ballpark” of what other cities have paid to purchase water rights, but is higher than what Lacey has paid in the past, City Attorney Ken Ahlf said.

“It’s important we acquire the water rights expeditiously,” he said.

Last June, the city imposed a de facto moratorium on new development within its urban growth area because it is rapidly running out of water it’s authorized to withdraw.

On paper, the former brewery has water rights for industrial use totaling 7,420 acre-feet. An acre-foot is 325,851 gallons.

The cities will ask the Washington State Department of Ecology to change the water rights from industrial to public use. As part of the process, Ecology will determine how many of those “paper” water rights are valid.

It could take Ecology up to three years to make the determination, Tumwater City Administrator Doug Baker said this week. In the meantime, All American can use up to 1.8 million gallons a day, according to the agreement.

The cities fear some of the water rights have become invalid from non-use, Ahlf said. The state can relinquish water rights not used for at least five successive years.

Olympia made changes to the agreement Tuesday to protect the cities’ interests. The Lacey City Council approved the revised agreement. The Tumwater City Council, which voted for the original agreement Monday, is scheduled to approve the revisions Tuesday, Ahlf said.

The Thurston Public Utility District, which provides water for customers in neighborhoods just outside Lacey, is proceeding with a separate court petition to condemn the former brewery’s water rights.

All American has yet to convert the former brewery into a water bottling plant. Its settlement with the cities will allow the company to secure financing to complete the conversion.

A water right gives the holder legal authority to withdraw or divert a specific quantity of water for a specific and beneficial purpose. The authority is required because water in Washington state collectively belongs to the public.