Electric City to take Grand Coulee to court over plant operation

After years of arguing that Grand Coulee is treating it like a paying customer instead of a co‑owner of the regional wastewater treatment plant, Electric City is turning to the courts. The City Council voted Tuesday to seek a legal judgment on the 1984 agreement that created the joint facility, saying Grand Coulee has ignored board decisions, relied on a costly contractor, and refused to enter mediation.

The two cities are parties to a 1984 interlocal agreement that created the jointly owned treatment facility. Electric City officials note their name is on the plant wall and on the property lease with the U.S. Bureau of Reclamation, but say Grand Coulee has been making key decisions as if it alone controls the plant.

Council members said the joint board structure "exists on paper," but in practice Electric City is brought in mainly to approve payments, not to share in decisions about staffing or contracts.

A major point of contention is Grand Coulee's continued reliance on SJ Environmental, a private contractor, to run the plant. Electric City officials said they originally agreed to use SJE only for about three months while permanent staff were hired and trained. They say the Joint Board of Operations even voted to advertise for employees, but Grand Coulee never followed through, and the contractor arrangement became long‑term by default.

Mayor Blake Martin said the contractor model is more expensive than hiring staff. Members pointed to increases built into the SJE contract, including annual 4% hikes after the first three years tied to union cost‑of‑living adjustments.

Council members said Electric City is paying a growing share of those costs without having equal control over how the facility is operated.

Council members described years of meetings and "stonewalling," saying Grand Coulee has not meaningfully addressed Electric City's concerns about governance, staffing or contract costs.

They also repeated earlier complaints about what they see as a conflict of interest involving a Grand Coulee council member who sits on the joint board while his son holds a contract with the city - a concern Grand Coulee officials have rejected.

Grand Coulee Councilmember Tim Snead has abstained from voting on matters related to SJE in council meetings.

Electric City recently invoked provisions of the agreement to request mediation or arbitration. Grand Coulee declined, arguing there is no qualifying dispute under the existing contract terms and that arbitration cannot be used to force negotiation of new terms.

The original contract was amended in 2021.

With the mediation request blocked, Electric City's council voted unanimously to "move forward with seeking a judgment," directing staff and the city attorney to prepare for court. The city plans to document what it views as specific breaches or failures by Grand Coulee under the agreement and to ask a judge to clarify the cities' rights and responsibilities at the plant.