LATEST NEWS

Tacoma-Cascade Pipeline Construction Begins in 2007
February 7, 2007

Thanks to great progress in 2006, Cascade is poised to begin construction on the Tacoma-Cascade Regional Pipeline linking Tacoma's second supply system to Member districts. The project is scheduled to begin by fall 2007.

"After seven years of planning and negotiations, we're nearly ready to begin constructing pipelines," says Grant Degginger, Mayor of Bellevue and Chair of Cascade Water Alliance. "Implementing Cascade's long-term water supply plan involves community, Tribal and government partners at every level. We all have the same goal - to ensure a clean, safe water supply for the next 50 years and beyond while preserving and protecting the environment." The Tacoma-Cascade Regional pipeline should be complete and delivering water by 2010.

A quick look at 2006 activities includes:

Initial Public Bond Offering
Cascade's initial public bond offering took place in April, raising $55.23 million to fund capital projects. These proceeds provide funding for design and environmental review of transmission pipelines, purchase wholesale water from the City of Tacoma, repay a loan used to purchase an existing transmission pipeline, as well as the purchase of properties, facilities, and water rights associated with the Lake Tapps Reservoir.

The bonds received excellent underlying ratings (Aa3 from Moody's and AA- from Standard & Poor's) which were supplemented by bond insurance to improve the rating to the highest quality ratings (Aaa from Moody's and AAA from Standard and Poor's).The average interest rate of all maturities of the 25-year bond issue was 4.7%. Cascade anticipates its next bond sale in early/mid 2007. This sale and additional offerings through 2009 will finance continued development of Cascade's planned transmission system.

Pipeline Planning and Construction
A major element of Cascade's transmission and supply system is the construction of a new regional pipeline - the Tacoma-Cascade Regional Transmission Pipeline. Originally envisioned as a Central Segment (connecting the Tacoma Second Supply Project to Seattle's Lake Youngs Tunnel) and a North Segment (from the vicinity of Seattle's Lake Youngs Tunnel to Cascade Members), the two projects were officially combined in May 2006. Cascade is currently in the process of final route selection, environmental assessment and permitting. Public open houses were conducted in February and September 2006 for interested citizens to better understand the project and the evaluation of the various alternative pipeline routes.

Lake Tapps: Draft ROE Issued
The major element of Cascade's long term supply program is securing the use of Lake Tapps as a new regional water supply source. An important step toward this goal occurred when the Washington Department of Ecology released a draft Report of Examination (ROE) for public comment in October 2006. Once finalized, the ROE will contain the conditions the water right holder must implement to utilize Lake Tapps as a municipal water supply. The draft ROE includes provisions for the water right holder to:

• Increase the minimum "in-stream" flows in the White River to improve water quality and enhance salmon habitat.
• Reserve up to 16 million gallons of peak water to replace or supplement public water supplies in streams and rivers in the region where current withdrawals contribute to chronic stream flow problems that are harmful to fish.
• Conserve up to 2,500 acres of lands in the White River watershed to support salmon and other wildlife.

Jay Manning, Department of Ecology Director, called the Lake Tapps water right decision when finalized "...a rare and creative example of how to create a very large regional water supply and simultaneously enhance environmental conditions." This decision, he added "has been years in the making and has been markedly improved by input from many interested parties. The proposed water right approvals provide built-in flexibility so components of the complicated project may be changed as future needs require."

The Department of Ecology received comments from many interested parties. The final ROE is expected in early/mid 2007.

King County Approves Transmission and Supply Plan (TSP)
In early November, the King County Council formally approved Cascade's Transmission and Supply Plan by unanimous vote of the Council. The plan contains projections of Cascade Member water supply needs for the next 50 years and details on how the need will be met over the next 20 years.

Conservation Rebates
Conservation rebates are popular with customers and important to Cascade. Over 6,500 rebates have been awarded to customers who purchased high efficiency washing machines since June 2004 (see related article).

Expanded Community Outreach
With so many activities underway and even more anticipated in 2007, expanding community outreach and communications was a priority in 2006. Board members continued making visits to community and civic organizations to tell the Cascade story throughout Member service districts. Most audiences had never heard of Cascade before the presentation and left with a much greater understanding of the importance of planning ahead to ensure water remains reliable, safe and clean.

In November 2006 Cascade unveiled a completely updated and revised website. The website offers the general public, customers, local and regional leaders, and the media access to more and better information on the organization and its activities. Users of the website will find consumer information, meeting details and minutes, project updates, water supply status, conservation tips, links, and more. Additionally, users can sign up from the homepage (Stay Informed) for Cascade's new e-Newsletter.

If your group or organization would like a presentation about Cascade, contact General Manager, Michael Gagliardo, mgagliardo@cascadewater.org


New Staff / New Location
February 7, 2007

In August, Cascade hired one of the region's top senior public finance officials as the organization's first Finance Director. Steven Call served as King County's Director of the Office of Management and Budget, Assistant County Executive, Deputy Budget Manager and in other positions over more than 20 years of public service. As a consultant, he most recently served as interim Chief Financial Officer of Seattle City Light. Creating the position and hiring a finance director of Call's caliber was deemed essential by the Board to manage the growing budget and finances of the organization as it begins implementing its long-term capital program.

As the work load and activities significantly ramp up in 2007, so does the need for additional staff and office space. Cascade is scheduled to move to larger offices in Bellevue in March. "Since our formation, Cascade has been able to operate effectively with a minimal staff by utilizing support from Members," said Michael Gagliardo, Cascade's General Manager. New positions are needed to keep pace with the increasing activities associated with implementing the planned transmission and supply system.


Message from the Chair:
Securing our Future Water Supply
February 7, 2007

A sufficient, reliable water supply is an essential component of our region's infrastructure. Our region's economy depends on it. In a region known for rainfall, it's tempting to assume that we always will have as much water as we want, but that would be a mistake.

Our region has experienced dramatic growth in the past two decades, particularly in East and South King County. The trend is expected to continue with over 1.6 million new people and 1.1 million new jobs projected for the Puget Sound area by 2040. Climate change and the need to dedicate water for the restoration of salmon habitat also place increasing demands on this precious resource.

Together, the population and environmental challenges demonstrate that our historical sources of water supply are insufficient to keep up with the region's growing needs. Transportation challenges facing this region serve as a powerful reminder that early planning and timely action is necessary to avoid a crisis.

The Cascade Water Alliance was formed in 1999 when member jurisdictions recognized that action needed to be taken to ensure that the region does not run out of water or that the water supply becomes too expensive or unreliable. Today Cascade supplies water to almost half the residential and commercial users in King County outside the City of Seattle.

Together, our eight Members -- Bellevue, Kirkland, Redmond, Issaquah, Tukwila, Sammamish Plateau, Skyway, and Covington - are building the first new regional water supply system and water source in decades.

Construction begins later this year on a pipeline connecting the Tacoma supply system to our service district that will deliver 10 million gallons of water per day to our Members by 2010. By 2024, we anticipate an expanded system will be delivering water from multiple sources including Seattle, Tacoma, and Lake Tapps.

We don't know with certainty what our water future looks like, or how radically it will be impacted by climate change. But we do know we can't wait any longer to develop new water sources and strategies to ensure sufficient supply, protect against shortages due to global warming, support a growing population and economy and preserve our environmental heritage for future generations.

I invite you to learn more about Cascade and how we're taking the next important steps in securing our water future. Explore our new website to find conservation tips, consumer information, water supply, meetings details, links, and more. Sign up for Cascade's new e-Newsletter to receive updated news and information throughout the year. Give us your feedback and ideas.

On behalf of Cascade's Board of Directors and Members, thank you for your interest.

Sincerely,

Grant Degginger
Chair, Cascade Water Alliance
Mayor, City of Bellevue


Washer Rebate Program a Win for All
February 7, 2007

Cascade Water Alliance offers residential customers rebates up to $100 for the purchase of high-efficiency, front-loading clothes washers. Response to the rebates, among Cascade's most popular conservation programs, continues to exceed expectations.

"Customers cashed in 3,000 rebates this year and over 6,500 since the program began in June, 2004," says Michael Brent, Cascade's Water Resources Manager. A special Earth Day promotion this year in April and May generated greater than usual rebate response.

High efficiency clothes washers are typically more expensive than traditional machines, but they use less energy and water, which saves money on utility bills. A typical home can save 6,000 - 8,000 gallons of water per year. The water saved represents wastewater that doesn't have to go through an expensive treatment process. And due to the absence of an agitator, high-efficiency machines are gentler on fabrics so clothes last longer.

Since washers last an average of 14 years, making the switch to high-efficiency machines can make a difference in the long term. The program is a win-win for homeowners and the environment.

"Every home has to buy a washer eventually. The concept of buying something that meets your needs and does it in a very efficient and environmentally friendly way has strong appeal for a lot of people, and we're saving on water use at the same time," says Lloyd Warren, Commissioner, Sammamish Plateau Water and Sewer District and Chair of Cascade's Resource Planning Committee.

In 2007, Cascade will be teaming up with Puget Sound Energy, Seattle Public Utilities and Seattle City Light for a regional washer rebate program called Washwise. Rebates of up to $100 will be offered on selected machines.

For a list of conservation tips and information on washer, toilet and irrigation rebates visit the website, www.cascadewater.org.