McMinnville Water & Light Executes Water Sale Agreement with City of Lafayette

On March 20, 2019, after years of discussion and negotiation, McMinnville Water & Light (MW&L) and
the City of Lafayette have executed a Water Purchase Agreement in which MW&L will sell surplus
water, up to 500 gallons per minute (GPM), to the City of Lafayette. The initial term of the agreement is
11 years, with two possible 5-year extensions, for a maximum total of 21 years. This agreement is
intended to be a temporary solution for Lafayette’s water needs until a regional system can be
constructed.

Before water can flow to Lafayette, an intertie connecting the two systems will need to be constructed.
This intertie will consist of approximately 7,400 feet of 24” water main that will connect the end of
McMinnville’s system near the McMinnville Airport to Lafayette’s system near Hwy 18/LafayetteDayton Highway.

McMinnville Water & Light will be financing the construction cost for this project (estimated at $2.2 million), which Lafayette will pay back over a 10-year period.  The project is anticipated to be in the engineering/design phase this summer, with construction expected
to begin by Spring 2020. The goal is that water will flow from MW&L to Lafayette by the Summer of
2020.

General Manager John Dietz stated, “After decades of discussion, McMinnville Water and Light and the
City of Lafayette have reached a major milestone in developing a regional water supply for Yamhill
County.”

“This water agreement is a milestone for our community,” said Mayor Marie Sproul. “We will be able to
provide for the future growth of Lafayette, and our citizens can be confident in our water supply for the
next 20-plus years.”

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