ANNOUNCING A NEW ERA OF COOPERATION BETWEEN THE DOE BAY WATER USERS ASSOCIATION (Doe Bay) and OLGA WATER USERS, INC. (Olga)

            You will soon see the installation of 3400 feet of new water main along Point Lawrence Road, allowing for the connection of the Doe Bay and Olga water systems.  This main is being placed in a “shared” trench being dug for the Rock Island fiber optic cable, providing for substantial cost-savings.

            The Boards of both organizations are committed to providing a reliable supply of safe drinking water that meets Safe Drinking Water Act requirements to serve their members in the most cost-effective ways possible. To this end, the Boards have determined that there are major advantages for both organizations if Olga utilizes treated water to be supplied by Doe Bay to serve the Olga members.

            There are both immediate and long-term benefits to be gained for both organizations in this new relationship. Both systems have grown. Olga was founded in 1936, Doe Bay began providing water to its members in 1949.  Both rely on the remarkable water source provided by Mountain Lake.  Doe Bay’s water is drawn from the dam at Mountain Lake and is treated in a recently constructed slow sand filter treatment plant on Mount Pickett.  Olga’s water is drawn from a small diversion dam on Cascade Creek, just above the Moran State Park one-lane bridge. Olga then treats its water in an older slow sand filter plant along Olga Road.

            There have been months of discussion between the two Boards to consider the efficiencies and future cost-savings in drawing water from a single withdrawal point at the Mountain Lake dam and operating one treatment plant, not two.

            Both organizations are facing significant capital costs to keep their systems reliable and efficient.  There was immediate recognition that the can be significant cost-savings if a combined rate base was supporting the needs of a single raw waterline and treatment plant.

            The most time-sensitive project for Olga is replacing its raw waterline along Olga Road when the County reconstructs the road above the Olga treatment plant to solve major storm drainage issues. The cost of replacing the Olga raw water line was substantial and would have been born solely by Olga. Olga also faces near-term substantial costs in repairing or replacing its storage tank and in addressing its aging intake on Cascade Creek and raw waterline within the Park.

The organizations agreed to obtain professional engineering help to determine if it was feasible for Doe Bay to meet Olga’s water needs from the existing Doe Bay plant via the new water main along Point Lawrence Road. Based on professional advice, the organizations have concluded this proposed arrangement is both beneficial and cost-effective.

            Once this new intertie is completed, Doe Bay will be able to supply Olga with treated water in the quantities Olga needs.  The rates will be set by a Finance Committee with Olga Board participation and relying on the principle that water will be provided at the cost it is produced and based on the quantities used by each organization. Both organizations will remain independent and will retain their existing water rights.

            Benefits to Olga: Olga can avoid the costs of replacing its raw waterline, its aging intake dam in Cascade Creek, immediate reservoir repairs and plant upgrades.  The operations and maintenance costs for the Olga system will be greatly reduced.  Olga would no longer have water producing activities and would only have water delivery activities.

            Benefits to Doe Bay:  Utilization of the Doe Bay treatment plant would be increased as it would now be serving the memberships of both organizations.  The added revenue stream from the wholesale of water to Olga would defray the costs of producing water and the future capital costs Doe Bay will face, such as replacing its raw waterline from Mountain Lake to the treatment plant.

            Taken as a whole, both Boards see this arrangement as a win-win for both memberships.  Both Boards have committed to share equally in the costs of constructing the intertie watermain and all necessary instruments and controls.

            Future Opportunities for Cooperation: For now, each organization will remain independent and retain their existing water rights. Both organizations recognize that ever-increasing regulatory requirements, the uncertainties of climate change, increasing costs and inflationary pressures and other factors make it in the best of interest of both memberships to continue to explore ways in which these organizations can further cooperate and toward that end, have committed to investigate all responsible ways they can work together to meet the common good of their respective members.