SWD, KPUD in talks about water transfers

To reassure that water will continually be available in the future, Silverdale Water District (SWD) and Kitsap Public Utilities District (KPUD) met on Tuesday to discuss the possibility of a wheeling water partnership.

SWD and KPUD have been discussing the possibility of transferring water from SWD’s sources to KPUD since 2002, according to Bob Hunter, KPUD superintendent. But it wasn’t until just recently that SWD presented the proposal of wheeling water to KPUD in writing.

Future plans are to wheel water from SWD’s system to KPUD’s Vinland water system. SWD hopes to begin wheeling water in 2005, according to Morgan Johnson, general manager of SWD.

The two parties met on Tuesday for a presentation by Johnson on what the cost to KPUD would be, including the facilities that would have to be built and scenarios of what would be charged to KPUD for the wheeling of 500 gallons per minute (gpm), 1,000 gpm and 1,500 gpm. It’s up to KPUD to determine how many gallons of water it needs and may not necessarily go with the proposed amounts and may decide to have less water wheeled, Johnson said.

“We are in the negotiating stages, at the first starting point and adjustments can be made,” he said. “Charges and fees are not set in stone.”

If KPUD agrees with the proposed water wheeling scenarios and were to pay the cost up front without financing by SWD, the cost of the facilities utilized for wheeling water for 500 gpm would be $1.5 million, if SWD were to wheel 1,000 gpm the cost to KPUD would be $2.7 million and at 1,500 gpm KUPD would be charged $2.9 million. If KPUD later decides to move up to a higher rate of gpm, SWD would credit the difference to KPUD.

If KPUD decides to be financed by SWD it would be financed for up to 60 months at 6 percent interest. To have water wheeled KPUD also would be charged a monthly replacement charge for water mains, a pump station and pressure reducing stations. That monthly fee would be put into a reserve fund. A monthly base rate also would be charged for operations, maintenance and payroll tax expenses.

“We’ve been working on it for over a year on cost, design and how much water,” Johnson said. “A lot of time and effort has been put into this and is a fairly reasonable charge of providing water.”

The next joint meeting between the two entities is scheduled for Tuesday, Jan. 25 when Johnson hopes to present a final version of the proposal. Before then,

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