Officials in North Bend are cautiously optimistic that a nearly two decades-old quest to find a second mitigation water source could soon be over.
On April 18, the city and Sallal Water Association, who have been negotiating for nearly two decades, unveiled an unprecedented 40-year-long water supply agreement that would end water challenges for both providers.
If approved — which is expected by early June — a deal would put the city in compliance with its 2007 water rights permit, ensure development in eastern North Bend can proceed, and protect flows in the Snoqualmie River.
“The Sallal Water Supply agreement, essentially a partnership, ensures that every property owner, every resident, every business has access to water,” North Bend Mayor Rob McFarland said April 18.
Under the agreement, Sallal would provide the city with mitigation water, a requirement under its water right permit to protect flows in the Snoqualmie River. In return, the city would provide Sallal with wholesale water to serve growth and new connections in its service area.
City leaders are calling the new agreement historic. It is essential for the city’s future and would end a tumultuous period, they say.
“I’ve been privileged to serve the citizens of North Bend for nearly 20 years on this council, and I can’t think of a single more important piece of legislation to come forward than this agreement,” Councilmember Ross Loudenback said at the council meeting.
For Sallal, who is nearly at capacity for water service, a deal would keep the water district independent, allowing them to serve new customers — and staving off another service moratorium and fears from some of a possible closure or takeover.
“This agreement with the city is the best way to keep Sallal in business, independent, our system in good condition, and our rates low,” Daylin Baker, vice president of Sallal’s board of directors, wrote in an email to the Valley Record.
Baker said a majority of the board supports the contract because it is clear that Sallal has no foreseeable options to obtain additional water.
Sallal will soon be unable to serve new connections, she said, meaning they’ll need to enter a moratorium and increase utility rates on existing members to make up for the lack of connection revenues. That could also leave them vulnerable to condemnation by the city, she said.
“I believe Sallal will not survive without this contract,” she said.
Courtesy image. A map of North Bend City limits showing its water service providers.
How we got here
North Bend’s water situation is relatively unique. The city provides water to only two-thirds of its city limits, while the other third is served by Sallal, a board-run water district of rate-paying members.
In 2009, the Department of Ecology approved North Bend’s Centennial Well water permit. With its extra water, the city was able to exit a self-imposed, decade-long development moratorium, but the permit came with its own faults.
The Centennial Well is connected to the Snoqualmie River, and its permit was approved on the condition the city find two mitigation sources that can be used to replenish water in the river during low flow periods.
North Bend contracted with Seattle Public Utilities for access to its primary mitigation source, Hobo Springs, but has been unable to lock down a second source. Sallal’s Rattlesnake Lake Wellfield was identified early on as an approved mitigation source because it does not share groundwater with the Snoqualmie River, officials said.
The city planned to sell water to Sallal for service, which it would eventually need, in exchange for mitigation water. Negotiations began around 2007, but were unfruitful. Sallal attributed the fallout to unaffordable rates and concerns that payments to the city would begin immediately, despite not needing water for several years.
Similar negotiations happened sporadically over the next 16 years, but had never yielded a potential agreement — until this month. Sallal’s need for water has heightened over the last year, while land in North Bend has only become more enticing for developers.
Dating back to a 2017 multi-housing development on the Dahlgren Property, Sallal has occasionally struggled to serve new developments. At least two properties targeted for development in their service area have been given to the city, according to documents.
That could happen again if an agreement is not reached. Sallal has received another request to relinquish a portion of its service area for a housing development project, according to a post on its website.
“Based on present day uncertainties, Sallal may have to concede to that request if a supply contract with the city is not approved,” the post reads.
Sallal briefly entered a moratorium on new water hook-ups last year to prevent overreaching on its limited supply. They exited the moratorium after six months, but still had little water remaining.
During the moratorium, the city made a few efforts to remedy the situation, notably making an offer to purchase the Sallal Water Association and consolidate. That move was met with opposition from Sallal’s board, which decried it as an “act of political theater” and cited a desire to remain independent from the city.
North Bend Mayor Rob McFarland said they knew that option would not be well received, but noted it was a logical suggestion under the circumstances.
McFarland said at the tail end of six months of “almost nonstop meetings,” the two sides were able to reach an agreement. The final epiphany came after independent contract engineers assured both sides an agreement would work.
“That’s when the light bulb went off and we realized, we’ve got it,” he said. “Our fears were not to be realized.”
What happens between now and a final approval
Both the North Bend City Council and Sallal Board approved the supply agreement as an initial reading — albeit with different levels of support. The city council passed the agreement unanimously, while the board’s vote was 4-3.
Sallal will hold two meetings for its members, on April 24 and May 24, before its board holds a final vote. That vote is expected in early June, with the city council holding one shortly thereafter.
Under Sallal’s bylaws, approving the contract is solely a board decision and does not require a vote of Sallal membership, board vice president Baker said.
However, Baker said some board members are concerned a “special interest group” is gathering signatures to petition for an amendment that would take the vote away from the board, giving it to the members.
“My concern about this decision being up to the members is that typically, very few members vote,” Baker wrote. “If the Board’s power is divested, a special interest group could easily end up controlling the most important issue that the Association has ever faced.”
McFarland also shared concerns about opposition.
While not referenced by name, The Friends of the Snoqualmie River and Trail, a grassroots group of Valley residents, has long opposed the city’s approach to its water management. Group members say they have concerns about how it would affect the Snoqualmie River’s health and previously filed a lawsuit over the approval of the city’s last water systems plan.
It’s unclear if Friends are behind efforts to have Sallal’s bylaw changed. A request for comment sent to a representative of Friends was not returned by press time.
McFarland dismissed efforts to stop the contract as a misguided attempt to prevent growth.
“Don’t be fooled, they don’t care about the health of the river,” he said. “It’s a smokescreen by those whose real agenda is to not let other property owners have what they have, a home in our community.”
McFarland said he is confident Sallal’s board will continue to receive support, but noted they have not crossed the finish line yet.
“With this particular negotiation for a water supply contract, there’s a lot more history on the side of not getting across the finish line than there is reaching it,” he said. “I’m not counting anything done until it’s done.”
If an agreement is approved, officials estimate the infrastructure needed to support the agreement could be operational by 2025.
