The Bellevue City Council will vote on a motion within the next month to transfer operations of the South Cover/Greenwood Point area’s utilities to the city of Issaquah, the last step in turning over the area after it was annexed in 2006.
“It’s unusual not to hear about us assuming something, but it’s a bit unusual to discuss turning something over to Issaquah,” Mayor Claudia Balducci said to fellow city council members during a meeting on Sept. 14.
Nav Otal, the director of utilities for the city of Bellevue, presented the details of the transfer to council members. The agreement will result in a net income loss to Bellevue of half a million dollars and will result in a slight bill increase for Bellevue residents.
Under the proposed agreement, the city of Issaquah will assume operations and the finances of the area’s utilities, including the costs and revenue.
Currently, the city of Bellevue spends more than $920,000 to purchase wholesale water from the Cascade Water Alliance, sewage disposal, state and local taxes, and other service costs. The area brings in approximately $1.5 million in annual revenue.
Approximately 1,000 households in the South Cove/ Greenwood Point area are wrapped up in the proposed agreement. That number is roughly 2.5 percent of Bellevue’s water and sewer customers.
The loss of income to the city’s general fund would be offset by a small rate increase to Bellevue residents — roughly $0.72 per month.
Deputy Mayor Kevin Wallace raised a question about the annual “wheeling” charge the city of Issaquah will pay Bellevue for the maintenance, operating and repair costs to pipes within Bellevue’s borders that ferry water to the area in question.
“It just seems like $7,300 sounds like a small amount for all of the money that we pay to maintain that system,” Wallace said. The number was calculated using a usage formula, Otal reported.
If approved, it would go into effect on Jan. 1, 2017. The 15-month delay is due in part to billing system improvements and enhancements the city of Issaquah needs to undergo.
The Bellevue City Council expects to vote on the plan within the next month.
