Kitsap PUD assumes operation of two more island water systems

Published 12:46 pm Wednesday, July 1, 2015

The Kitsap Public Utility District has taken over both the South Bainbridge Water System and Island Utility Water System on Bainbridge Island as of July 1.

Water rates for Bainbridge customers will go up — and down — depending on the water system they once used.

KPUD already owns the North Bainbridge and Harborcrest water systems, which serve a combined 2,000 households, approximately, on Bainbridge.

Bob Hunter, KPUD’s general manager, said that they were approached earlier this year by the owners of both systems, who were looking to retire.

The additional acquisitions means that now more than 3,000 households on Bainbridge are serviced by the Poulsbo-based utility.

“We manage many different water systems,” Hunter explained. “Of the ones we own, it’ll be probably right near 3,300 homes – and that includes some businesses as well.”

Hunter said that KPUD is currently in the process of acquiring three other systems as well in the greater Kitsap area.

The KPUD board vote in June to acquire the two water systems. The vote was unanimous, Hunter said.

KPUD, Hunter said, paid $490,000 to acquire Island Utility and approximately $1.4 million for South Bainbridge Water System.

There exist several primary benefits for customers from the consolidation of water system management, Hunter said, including a more streamlined customer service experience with perhaps more readily available help and online bill pay options, as well as lower overhead caused by reduced staffing.

“In all honesty, the key piece to this is that it takes us less staff,” he said. “We don’t add any management staff. We do add field staff, because there’s more customers to take care of [and] there’s more maintenance to do out in the field, so we add staff with that.”

Regarding any changes that customers may expect to arise from the purchase, Hunter said, there would be some differences islanders should be aware of.

“I would say, as far as the customers go, they’ll have to get used to our rates,” he said.

In the case of “average” consumers of South Bainbridge Water System, the larger of the two new acquisitions, Hunter said rates should go down.

For those formerly utilizing Island Utility Water System, Hunter said, rates would increase, as that company had not increased rates “since 2001.”

Also, Hunter added, KPUD bills customers every two months – as opposed to monthly like some other systems – so customers accustomed to paying every month may perceive a rate increase that doesn’t really exist.

“People view that as though they’re paying a lot more and just [don’t] realize they’re paying it every two months instead of monthly,” Hunter said.

Customers of both of the newly acquired water systems will receive a letter outlining the differences and new billing procedures, he added.

Scott Shelton, former owner of Island Utility Water System, announced the purchase via an online message to his customers Monday.

“After working with Island Utility Company for 18 years, my wife Carole and I have finally decided to stay home and work on the farm,” he wrote. “We feel it is the right time to make a change and the best time to transition ownership of Island Utility to the Kitsap PUD for our customers.”

KPUD’s track record left Shelton confident, he said, that customers would be well taken care of.

“Because the Kitsap PUD has an outstanding record for customer service and responsible management of the water resource, I believe I am leaving my customers in very capable and responsive hands,” Shelton said in his online announcement.