By Dennis Box-The Courier-Herald
The next steps on the path leading to the purchase of Lake Tapps by three surrounding cities should become clearer during the coming days and weeks.
The Bonney Lake City Council was scheduled to approve an interlocal agreement that sets the rules of the road for Bonney Lake, Auburn and Sumner if the purchase of the lake goes forward. The cities are attempting to purchase the lake from Puget Sound Energy.
Sumner's City Council approved the agreement Sept. 17 and Auburn also gave its approval last week.
Bonney Lake officials discussed the agreement during a Sept. 18 workshop, but did not take action.
One of the issues council members had to consider, with assistance from City Attorney Jim Dionne, was how much each city would pay for its share of the water.
“The value of the lake to the city is there,” Deputy Mayor Dan Swatman said. “The main concern is about the concept of payments in the future.”
Mayor Neil Johnson said the issue is “how each city pays for the water used and recoups money for water sold. Some of the (details) we can work out later.”
At the workshop, Councilman Mark Hamilton said he hadn't quite “wrapped my mind around us being water purveyors.”
The members noted if the purchase of the lake goes through, the city would not have to buy water from Tacoma Water or Lakewood, which it had been considering.
Councilman David Bowen pointed out, “generally there is more profit in selling than buying.”
The mayors of the three cities - Johnson, Pete Lewis of Auburn and Sumner's Dave Enslow - along with Rep. Chris Hurst, D-Greenwater, delivered an offer of $33 million for the purchase of the lake Sept. 12 to Kimberly Harris, executive vice president and chief resource officer at PSE, and Ed Schild, director of hydroelectric resources.
PSE, owner of the lake for about the last 100 years, has been asked by the cities to respond to the offer by Thursday.
Roger Thompson, PSE spokesman, said the utility company was working on the proposal, but was not certain if a response could be provided by Thursday.
If the offer is accepted, the cities will give $510,000 ($170,000 each) to PSE as earnest money while a due diligence investigation is competed, looking at all aspects of owning the lake and managing the water right.
The earnest money is refundable if the deal falls through.
Cascade Water Alliance, an eastside water alliance, offered $37 million for the lake with $10 million down and $27 million after the drinking water rights clear all legal hurdles.
The alliance has not put any money down toward the purchase of the lake.
Johnson said at the workshop that city officials are willing to sit down with Cascade.
“Whoever wants to talk, we want to bring them to the table,” Johnson said.
Dennis Box can be reached at dbox@courierherald.com.
