Bonney Lake and three neighboring cities are getting closer to signing an agreement with Cascade Water Alliance for water and water rights.

During a Jan. 19 workshop, Bonney Lake City Council members discussed a resolution authorizing the mayor to sign the 2010 Lake Tapps Area Water Resource Agreement.

Public Works Director Dan Grigsby said in 2008 the state Department of Ecology told Cascade Water Alliance to negotiate with the cities of Auburn, Bonney Lake, Buckley and Sumner for water resources associated with Lake Tapps. That process has been moving forward since January 2009, Grigsby said.

Under terms of the agreement, Bonney Lake would receive future water supplies at a cheaper rate than could be negotiated with Tacoma Public Utilities, using Tacoma’s current rates.

The city would be able to purchase TPU water from the alliance at the rate paid to TPU in October 2005.

Bonney Lake has an option, under the agreement, to purchase 2 million gallons per day during peak demand periods from the Cascade Water Alliance using Tacoma water and another 2 million gallons per day year-round from the White River Basin using CWA water rights.

Grigsby said the total requirement for additional wholesale water by the city in 2040 is expected to be 4 million gallons per day in addition to the 2 million gallons purchased from TPU in January 2005.

In December 2008, he said, the city was prepared to spend around $11 million for 4 million gallons daily from Tacoma, but the amount will be reduced by half under terms of the proposal.

The agreement also states CWA will establish a Lake Tapps Municipal Advisory Board to consist of elected mayors of the four cities and three members of the CWA board of directors. The group will meet at least twice annually.

CWA also agrees to assist the cities in their efforts to meet their projected 50-year water needs.

Funding the $5.05 million needed to pay for the water supply will come from Bonney Lake’s Water Fund System Development Charges. Payment will not required until the city begins using Tacoma water or until the city locates a water well on the east side of Lake Tapps and obtains necessary water rights from the state.

Once signed by the four cities and CWA, the agreement will be in effect for 50 years.

“We were good through 2040 and beyond that, depending on the actual demand and water conservation,” Grigsby said. “We’re good through 2040 under the best information we have at this time.”