Shelter Bay planning to end water agreement with Town

In a quietly, lawyerly way, the issue of the Town of La Conner’s replacing its broken water main with a 16-inch pipe heated up last week. Mayor Ramon Hayes, in his March 13 report to Town Council, informed them that “Shelter Bay put it in writing: ‘we plan to leave the system in three to five years.’“

Hayes said his response was clear: “That will be a violation of the contract with the Town of La Conner. The contract is in perpetuity.” He explained that term was put in the 2011 Water Agreement at Shelter Bay’s request. “Termination is to be mutually based,” he told Council. The contract can be broken if the Town cannot meet their water needs. Only then can Shelter Bay look for another water purveyor, Hayes said.

The Town is contracted to provide 57 million gallons annually. The system’s capacity is 75 million gallons. There is 18 million gallons of excess capacity available to Shelter Bay, Hayes pointed out.

Town Administrator Scott Thomas shared the contents of a letter Shelter Bay’s attorney sent that day, Thomas told Council he didn’t “know if the intent is to negotiate over the long term. I don’t know if the intent is to negotiate a three to five year agreement.” Thomas, also the Town’s attorney, offered his view that La Conner does not need to negotiate. “The agreement says what it says and we’re happy with it.”

Hayes echoed that, saying “they have no grounds to violate the agreement.”

Attorney Philip Buri’s March 13 letter asked for negotiations on the Phase I Planning cost-share while stating “Shelter Bay’s commitment to purchase water from the town for at least three years.”

Anne Hays, president of the Shelter Bay Community board of directors, told the Weekly News the issue is “adequate water to provide fire flow.” In her email, she wrote “I simply cannot imagine the Town of La Conner refusing to meet and discuss as our Water Agreement stipulates.”

Town water is received at sea level. Hays estimated the infrastructure cost at one million dollars to “pump water uphill.” Water from the Swinomish Utility Authority, coming from the north, “would be delivered at the elevation required for fire flow,” Hays explained.

Shelter Bay bases its case on “accommodat[ing] fire flow,” as Hays put it.

La Conner’s position is the system provides the quantity needed for fire flow and Shelter Bay’s infrastructure needs upgrading.

Both parties agree that Shelter Bay’s infrastructure today is inadequate.

Shelter Bay is exploring options to provide fire flow.

Their position is that their need for fire flow allows them to break the agreement.

Yet point one of the 2011 agreement states “This Agreement does not address Customer’s need for fire flow protection.” In defining conditions, the Agreement states Shelter Bay “is responsible for all of the system downstream of the six inch meter,” where Shelter Bay’s system begins.

David Franklin, manager of the Shelter Bay Community, wrote in an email “Shelter Bay remains confident that we can resolve these outstanding issues with the Town of La Conner through conversation and discourse.” He pointed out that a July Weekly News story quoted him explaining “Shelter Bay had preliminary engineering studies done regarding the possibility of moving to Tribal water.” He stated his Community’s concern last summer.

Administrator Thomas believes that reaching agreement on planning cost share “can be very easily resolved, perhaps by email,” and doesn’t believe a meeting is necessary. He said the Washington Department of Health, which approves community water plans, called asking about the project’s status last week. Thomas shared his hope “that this will be quickly resolved” with Shelter Bay.

“I have no reason to believe that Shelter Bay will not honor their prior commitments,” said Thomas.

The contract’s term is “until such date as the parties hereto shall mutually agree to terminate it.” The Town of La Conner has no interest in termination.