HomeMy WebLinkAboutUtilities 2010-10-26 Item 2A - Discussion - Cascade Water Alliance Update �,��ua w
`�y City of Tukwila
I- j —4 Jim Haggerton, Mayor
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2 908 INFORMATIONAL MEMORANDUM
TO. Mayor Haggerton
UTILITIES COMMITTEE I
FROM. Public Works Director
DATE: October 20, 2010
SUBJECT Cascade Water Alliance Member Charges and Budget Update
ISSUE
The City of Tukwila receives water contractually through the Cascade Water Alliance (CWA) to
distribute to its water customers. Staff will provide a summary of the budget approved by the
Cascade Board on September 22, 2010, wholesale commodity rates, and member fees
BACKGROUND
The City of Tukwila has been receiving its wholesale water supply as a member of CWA since
January of 2004. The eight members of CWA voted for the block contract to receive water from
Seattle until future sources (i.e. Lake Tapps) can be developed. The block contract with Seattle
pays for a specific block of water under a Take -or -Pay' provision If the block is exceeded, CWA
members pay extra CWA also uses a biennial budget cycle that aligns with Tukwila's budget.
Five of the eight CWA members operate using a biennium cycle making the planning and rate
model issues more convenient to the members. Fees paid to CWA include block allocation,
administrative charges, and conservation charges
DISCUSSION
Tukwila fees and charges for water are shown in the attached spreadsheet. Monthly commodity
increases for 2011 vary from 6% to as much as 12% during the summer 4 -month period. This
fluctuation was more than anticipated in prior rate models but include an adjustment to all
members known as the Bellevue adjustment. From 2006 to around June of 2010, it was
discovered that Bellevue was being double- charged for water that flowed through the Bellevue
Issaquah pipeline into both Issaquah and Sammamish Plateau. This adjustment was then re-
balanced in the CWA rate model resulting in a one -time adjustment to all members for 2011.
RECOMMENDATION
Information to the Utilities Committee supplementing the budget presentation for water
Attachment: Member and Tukwila 2011 Charges /Fees Spreadsheet
W. \PW Eng \OTHER \Gail Labanara \Water Sewer Documents \Info Memo Cascade Water 2011 Budget.doc
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