Water Supply - Mill Agreement
What does water supply sustainability for Port Townsend and the Mill (Port Townsend Paper Company) look like for the next 20, 50, and 100 years?
Background Information and Key Issues:
The pipeline – also called the Olympic Gravity Water System – was constructed in 1927-28 in cooperation with the Mill. The City issued a bond and the majority of the payments were covered by the Mill. The steel pipeline is nearly 30 miles long and delivers approximately 10-14 million gallons of water per day from two locations on the rivers in the Quilcene watershed. This system is augmented with the City Lake and Lords Lake reservoirs. These reservoirs provide essential storage when stream flows decrease during the dry season. Much of the 30-inch pipe was replaced in the 1950s and 1960s, and the pipe is reaching the end of its design life.
With the Mill contract for operating the pipeline up for renewal, the City is considering a management and replacement strategy for the next 100 years. The replacement value of the pipeline is approximately $114 million (2015 estimate). The City and the Mill negotiations will focus on developing an operations and capital cost sharing agreement in order to ensure reliable, high quality, and affordable water is available for the residents, businesses, and the Mill.
We are seeking public input to inform this negotiation and to create awareness around this impressive and critical infrastructure.
Objectives/Desired Outcome(s):
Adoption of a publicly supported agreement between the Mill and City to set the water system up for a successful long-term future. This includes the City Council’s adoption of a financial program and rates to support this agreement.
Fiscal Considerations:
The magnitude of the City’s debt, issued to pay for the Water Treatment Facility and other water system improvements, results in limiting our capacity to make investments in the pipeline. Replacement and operating costs for the pipeline system are high given its 30-mile length and age. In order to make sound decisions and look for cost saving options, a value engineering (VE) study will be conducted to assist in developing alternatives. Both the City and the Mill have an interest in developing a sustainable system that is fiscally viable.
Materials available for review:
Video and meeting materials for past meetings are available:
- December 20, 2021 Council Business Meeting: Water Rate Analysis Follow Up | Meeting Video | Presentation
- December 13, 2021: Council Business Meeting: 2021 Water Rate Update | Meeting Video | Presentation
- December 6, 2021 Council Business Meeting: OGWS Water Supply Agreement | Meeting Video | Presentation
- November 15, 2021: Council Business Meeting: OGWS Water Supply Agreement | Meeting Video | Presentation
- November 8, 2021: Council Workshop Meeting: Water Rates Update Preview | Meeting Video | Presentation
- October 18, 2021: Council Business Meeting: Partnership Principles with the PT Paper Company | Meeting Video | Presentation
- February 25, 2021: City Library/Historic Society Presentation: The Port Townsend Paper Mill - Past, Present, and Future | Meeting Video
- January 28, 2021: One-Hundred Years of History at the Port Townsend Paper Mill | Meeting Video | Presentation
- December 14, 2020: Council Workshop Meeting | Meeting Video | Presentation
Estimated Schedule:
Public Comments
Public and stakeholder comments on the White Papers should be sent to the contacts listed below by July 31, 2021. Comments regarding the City/Mill agreement will be considered until approval. The City approval process is expected to include two public City Council readings.
Contact Information:
Steve King | Public Works Director | sking@cityofpt.us | (360) 379-5090
White Papers
