HomeMy WebLinkAboutReg 2024-03-18 Item 4 - Presentation - Cascade Water Alliance Overview-f�
CASCADE
WATER ALLIANCE
•
Cascade Water Alliance
Informational Briefing to Tukwila City Council
March 18, 2024
N
Agenda
Overview of Cascade Water Alliance
and Tukwila's membership.
Current water supply.
Future water supply - summary of
Seattle's and Tacoma's proposals.
Timeline and next steps.
Cascade Water Alliance
• Created in 1999 to provide members with
a voice and a vote.
• Mission is to provide safe, clean and
reliable water to members in a cost-
effective and environmentally responsible
way.
• One of the "big four" water suppliers.
• Seven member agencies.
• Serves 380,000 people, 20,000
businesses.
• Governed by Board of Directors of
members' elected officials.
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vSk way Water
& er District
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CASCADE
WATER ALLIANCE
Lake Tapps Reservoir
• Contracted water from Seattle.
• Early demand forecasts estimated needing
a new source of supply by 2024.
• 2009: Purchased Lake Tapps Reservoir from
PSE as future source of supply.
• Water rights issued by Department of
Ecology.
• Entered into agreements with the Puyallup
and Muckleshoot Tribes (instream flows)
and Lake Tapps Community (lake levels).
• $147M+ invested for Lake Tapps since 2008
with $3.5M ongoing annual expenses.
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Cascade's Work
Operation, maintenance, and capital
improvements of Lake Tapps Reservoir
assets.
Water efficiency programs.
Member, Lake Tapps, and stakeholder
communications and outreach.
Financial management.
Property management.
Long-term planning.
Water supply contract management.
01
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•
Tukwila's Membership
• Safe, clean, reliable water today and in
the future.
• Water efficiency programs, community
outreach, other support as -needed (e.g.,
technical and regulatory issues).
• 2024 member charges: $2.8 million.
• 2024 Regional Capital Facility Charge
(connection charge): $7,454 per
residential unit.
6
Current Water Supply
• Contracted water supply from Seattle
declines in 2039, ends in 2063.
• Business model: Use regional water to
bridge demand until Lake Tapps is
operational.
• Ample regional water through 2060.
• Seattle extension or new Tacoma contract
allows build out of Lake Tapps to be
delayed past 2042:
o Estimated cost of $2 billion for transmission
pipes, treatment plant, other facilities for Lake
Tapps.
Co
Annual Average MG❑
550
500
450
400
350
300
250
200
150
100
50
Actual Aggregate
Demand
0
2000
2005
Seattle -Tacoma -Everett Aggregate Supply and Projected Demand
2010
2015
2020
Current Aggregate Supply
2025
at C$�cad�
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ate *recast* {¢ 20ig
Recent Aggregate nd
RecentF reca ascade De
The sum of the forecasts from each supplier's most recent water system plan
2030
2035
2040
2045
2050
2055
}in
2060
mg!
8
Future Water Supply
In 2022, Cascade's Board directed staff to
seek proposals from Seattle and Tacoma:
• 20-year or longer term to delay build
out of Lake Tapps;
• Improved financial outlook over
building Lake Tapps by 2042;
• Flexibility to adapt to changing
circumstances; and
• Regional partnership opportunities.
9
CC)
O
Water Supply Proposals
Seattle
• 10-year guaranteed extension (2040-2049)
o $53M savings versus building out Lake Tapps
by 2042
• Two five-year conditional extensions (2050-
2054 and 2055-2059)
o $132M savings versus building out Lake Tapps
by 2042
• 40-year conditional contract for individual
members (2060-2099)
o $907M savings if Lake Tapps does not need to
be built out at all
o Very low probability of occurring
Tacoma
• 25-year guaranteed contract (2040-2064)
o Rates about 20% below Seattle
o $298M savings versus building out Lake
Tapps by 2042
iL Longer supply reliability, greater
flexibility, lower cost than Seattle
10
Timeline for Cascade's Board Decision
April 2024
V-
• Board direction
to negotiate
with Tacoma or
Seattle
Cascade's
budget/rates
development
April — September
2024
• Negotiate
contract with
Tacoma or
Seattle
L
Rates info
provided to
members
Board approves
Cascade's
budget/rates
October/November
2024
i—
• Board
authorization to
finalize contract
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