Tethys Enterprises & the Water Agreement - FAQs

A number of frequently asked questions have been raised about the agreement between the City of Anacortes and Tethys Enterprises, Inc.   I will pass these questions along to the City staff in the hope that they will be better enabled to fully address them during the course of the upcoming city council meeting on this issue. 

If you have more questions, please add them in the comments section, and they will be passed along.

The FAQs: 

- What kind of due diligence has been performed on Tethys Enterprises, Inc?

- Given the population growth expected in Skagit County (up to an additional 100K residents), how much of Anacortes' municipal water supply (in MGPD) will be estimated to support that growth?  

- Has there been any discussion from Tethys about the impact of 350 railcars transiting the site each day in terms of motor vehicle traffic traveling northward from Hwy 20? In terms of boat traffic through the Swinomish channel? 

- Where will the additional 5-7 miles of rail line be constructed?

- Has there been any consideration given to the housing needs of 800 workers employed at the site?  Some will come from the current ranks of the unemployed; others may arrive in Anacortes from outside. Will we capture them with expanded housing in Anacortes? Some fear that we will replace farmland with subdivisions to house them.

- Tethys estimates that ongoing operations at the facility will require 800-850 people.  How did they arrive at this number? Was this extrapolated from comparable facilities? Will there be more automation at this plant?

- The contract states that Tethys will not sell water in units of a size no greater than 10 gallons without the city's prior approval.  Who makes that approval? The City Council?

- Why did the City of Everett decide not to finalize the contract?

- Does the City of Anacortes have the expertise and experience to negotiate, evaluate and review the contract? Who will maintain oversight on this contract to ensure its compliance?

- According to paragraph 5.4 of the contract, if Tethys reaches 5 MGD average daily capacity, it will be required to provide the funds for the upgrade of the water treatment plant. At what point will this provision be triggered?

-  How much water will be used in the production of bottled products? At what point will this trigger the provisions of paragraph 4.76, in which Tethys will be subject to capital facility costs?

:© Eric Johnson 2012