My name is John Morrison – some of you know me from my many years both as a
resident of Canterwood, and as the Development Manager for Lorigon and the Baker
family. For those of you who have moved to Canterwood within the past several years
and are not familiar with me personally or professionally, allow me to introduce myself.
I grew up in Eugene OR and am a native Northwesterner. After college, I began a
career of property development and brokerage in the Eugene area. In 1987, I was
asked by the Baker family through their long time retained counsel, Bob Hutchins, to
serve as Development Manager. Back in those times, Canterwood had only sold
several dozen lots in the preceding five years. As the first part of my work, I performed a
financial analysis of the potential viability/profitability of Canterwood over the next ten to
fifteen years. This analysis showed clearly that the way forward was promising. After
completing the construction of the then unfinished golf course at the end of 1987, we
were ready for the next selling season in Spring 1988. As it happened, we sold many
more lots than my spreadsheet predicted, which may have been due to my brilliant
planning and design achievements, but probably was more a result of the booming
market of 1988-1990. Either way, we got off to a good start, and in the next few years,
the tennis courts and clubhouse were built, and Canterwood established itself as a
sustainable, beautiful community that was built to last for decades and beyond.
As part of my work, I led the design of the infrastructure and other common area
improvements, including the STEP and sewer systems. I made the decision to bring
sewer to Canterwood early in 1988 because I was able to acquire another 175 acres
and by then we knew portions of the site were not good for onsite drain fields. It was a
sound decision because today about 50% of Canterwood is on STEP. I decided to
retain control of the STEP by the development company because it was a complex
infrastructure system and I thought it irresponsible to pawn it off on the HOA. I want to
emphasize my role in the design, creation and establishment of these improvements
because it will become important to the issues in which I intend to involve myself as a
member of the Canterwood community.
Ronnie and I recently bought a lot on Old Stump Drive and we are working with Jeanne
Ratcliffe-Gagliano as the architect. We plan to be living near the club house by next fall.
We had moved a few years ago from Canterwood to Cave Creek Arizona, for the
sunshine and the tennis, but our eldest child just moved from Colorado to Western
Washington along with her husband and our two year old grandson, and our younger
child lives in Olalla with his wife and son, so we are moving back to be close to our
family.
I deliberately bought a lot on STEP and I am going to run for the Canterwood Board of
Directors in early December. I am very proud of my contributions to the successful and
beautiful community that is today’s Canterwood, and am eager to add my voice, energy
and experience to those of others to solve some pressing problems. We have an
opportunity to not only avert major and minor disasters, but to maintain the high
standards that are part of the successful legacy of Canterwood.
I intend to run for a seat on the Homeowners’ BOD – I sent my paperwork in online
recently. I will be posting a few letters in the near future that will outline in detail items
that I think are important and which I believe I can be of value in solving.
I hope I can win your support.
PS: Many years ago, I purchased two parcels north of Canterwood. One is a five acre
commercial site at the corner of Peacock Hill Rd and 144th
, non-contiguous to
Canterwood. The other is a 40 acre parcel immediately north of Canterwood and zoned
for residential development. Both of these parcels are outside the Growth Management
Area, and any status change in Canterwood will have minimal, or zero, effect on the
value, status or marketability of these parcels. I mention this to counter the idea that my
motives are purely those of self-interest.

May 10th 2019
Canterwood Annexation Summer Report 2019
Another Spring and Summer are upon us, and it is timely and urgent that we address
the pressing issues of Annexation and the Sewer System. We write to update the long
conversation about annexation to Gig Harbor and the special impact on around half
the homes in Canterwood connected to the Gig Harbor Sewer.
New residents join our community each month, so let’s go back in Canterwood
history to know the process of how we got here.
Not much has happened since 2008 when residents petitioned Gig Harbor to begin the
annexation process after signing a petition. Only the historical fact that since that year,
everyone on STEP (about half of Canterwood) have collectively paid the city more
than one million dollars, money that never would have been charged had we annexed
to Gig Harbor in 2008.
When the city agreed to extend sewer to CW in the mid 90s, then City Administrator
Mike Wilson and Canterwood manager John Morrison agreed that CW residents using
the sewer would accept a surcharge on the typical monthly sewer bill of 50% AS AN
INCENTIVE TO ANNEX TO GIG HARBOR. This extension agreement was
approved by Council and CW Directors. The policy at that time was to incentivize
annexation. Not long after, the Growth Management Act became state law, making
sewer extension into non-city lands only for health emergency. To further annexation,
all of CW divisions after Division 3 stated that no one owning property in CW would
protest annexation. When you bought your house, this was noted in the title report on
plat notes.
Why did Canterwood bring the sewer to Canterwood in the first place? Canterwood
Development, at the time led by John Morrison, calculated that it was impossible to
hit a target of 750 homes relying on septic tanks. Much of Canterwood, like all
regions formed by repeated glaciation, have soil depths of less than 20 inches, which
limits drain fields capacity to sanitize. Morrison recommended to Canterwood owner
Elbert Baker to make this improvement. Extending sewer was a large capital risk, but
proved correct from the fact that close to half of Canterwood relies on Gig Harbor to
treat their sewage. (If you pay a sewer bill to Gig Harbor, you are connected to city
sewer).
By the time 2008 rolled around, Gig Harbor ideas had changed. Canterwood was now
the largest neighborhood in the area. City council members were concerned about
losing their control and were fearful of voter reaction to a large annexation. Basically,
to avoid the political decision to annex, the City ignored its own Canterwood
extension agreement, all the plats (Divisions 3-12) agreeing not to protest annexation,

and hired a consultant to come up with a list of requirements carrying a large cost to
annex. Because the Home Owners Board had reservations about annexing (no one
paying the STEP charge was involved) they used the City’s report as reason to drop
the quest for annexation. The Board would not authorize anyone with expertise to
represent residents in negotiating with the City; otherwise the community would have
known that the City’s list of costs was a ridiculous stalling tactic.
A few years ago, the STEP Board, under the leadership of Alan Weiss, restarted the
effort to annex. He was met with resistance from the Board of the HOA for reasons
that were never spelled out but were along the lines that City clearly did not want
Canterwood to annex, so why push. (Refer to myths about annexation on our website,
www.AnnexCanterwood.org)
The Board did form a committee to study annexation, but it turned into a
comprehensive review of all the issues facing the South Sound and concluded that
now was not the time to pursue annexation. No consideration was given to the many
advantages for STEP owners, including saving 100,000 dollars a year.
During the summer of 2018 we met with the head of the STEP Board who agreed with
the last HOA position that someday CW would annex, but now was not the time.
The City, of course, is delighted CW does not push for annexation. Every year our
STEP users pay an extra $100,000 surcharge for nothing. The city does not have an
extra dollar in expenses to treat the STEP effluent, so it is pure profit. In addition to
political fear, this motivates the city to avoid bringing Canterwood into the city.
There are other factors that should motivate CW and the City to move on annexation.
There is a Washington Statute (WAC172-240-104) stating that only public entities are
permitted to manage collection and treatment systems like ours. In clear violation, our
STEP Board manages and assumes responsibility for the system. To support the
effort, STEP charges a maintenance fee above and beyond the surcharge. If
Canterwood complied with the law by annexing, we would not only eliminate the
surcharge and maintenance bill, but we would shift the unpredictable risk to the City
that has technical staff and the responsibility to run the system. Eventually, when
STEP pumps are replaced, it will be the City’s cost, not the homeowners’ cost, which
is the case now. We think this is compelling to anyone on STEP.
The Growth Management ACT of 1990 provided that cities would not run sewer into
areas that were not going to be made part of the city. This was to avoid sprawl that
consumed farm land. Areas (just like Canterwood) were to be annexed when they
were built out. Growth Management was passed in 1990. If we had not already gained
May 10th 2019 3
the sewer service, it would have been a violation of the Growth Management Act for
Gig Harbor to extend sewer to CW.
It has not worked out the way the Growth Management Act planned. Canterwood is
completed. The Council is apprehensive about annexation. To pressure the City, the
county is proposing that they give up part of their Urban Growth Area if they will not
annex, which would mean no possibility of annexation. There is a new Council, so we
are encouraged that there will be a new more constructive look at Canterwood
becoming part of Gig Harbor.
Another aspect of Annexation that was never analyzed is the day of reckoning
looming in the future: that is what will happen when we have to start replacing septic
systems with STEP systems. So far there have been few failures, but every year of
usage moves the needle to a point where drain fields fail, creating pools and odor. All
our lots have reserve drain fields, but they are also the sites most heavily treed. Most
residents have no notion of the cost of removing trees surgically, so as to not ruin the
drainage capacity of the terrain. The removal would cost at least $20,000 per home
and the elimination of substantial tall trees that are the defining feature of
Canterwood. Consider the prospect of the Architectural Control Committee being
asked permission to remove trees in the face of desperate homeowners with no
working septic field.
It has been brought up that the City has no obligation to provide more STEP hook ups.
Who will be responsible when a site fails, and the reserve field is either too costly or
insufficient to replace the failing drain field? What will prevent the aggressive
environmental activists from bringing suit against the City for violating Growth
Management by allowing more homes outside city limits to city sewer? We are out of
compliance with State law and the Growth Management ACT.
The last factor to consider is that the Canterwood Development Company is ending.
The HOA will assume jurisdiction for the STEP system. Why in the world do we want
the HOA Board to have to deal with the sewer problems of the future when, with
annexation, it is LEGALLY and FINANCIALLY the responsibility of the City to
manage?
The reasons for annexing if you are on STEP are strong. If your home is covered by
an onsite system you will not be pushed to hook up, unless you have a failure and
want to hook up rather than use the alternative site. Everyone in Canterwood will
benefit from additional police protection, representation on the Council, and a
decrease in property taxes for the average home. Golf carts on Canterwood’s private
streets will not be touched and we will remain a gated community.
So, to review: Canterwood is out of compliance with both WA statute WAC 172-240-
104 and the Growth Management Act. The City of Gig Harbor is legally responsible
for the operation and maintenance of STEP systems in Canterwood, which if
transferred to them would result in an immediate reduction in fees, and the transfer of
all responsibility for future operation and maintenance.
Mike Wilson, who was City Administrator during the sewer extension, and is now a
consultant, has offered his help, without compensation, to negotiate the details with
the City, and we will keep you informed of the progress on the Canterwood
Annexation website. During the summer there will be several community meetings to
review the annexation effort. Please ask any questions you have addressed to the
email info@annexcanterwood.org or visit our website at www.annexcanterwood.org
for additional information and updates.
Sincerely,
Your Neighbors & the Annex Canterwood Action Committee
Email: info@annexcanterwood.org
3118 Judson Street
PO Box 2033
Gig Harbor WA 98335

Subject: Letter to Sue Barrett HOA President, Canterwood Annexation Report

Why not have the Canterwood HOA manage the proposed annexation? 

Good question requiring some history. The city’s procedure of annexation is for standard neighborhoods that do not have HOAs. It is real straight forward. Five percent of the residents in the area requesting annexation petition the city to start the process. We did this 11 years ago. The city comes up with conditions for annexing, then 50% of the residents must vote affirmatively for it to happen. Unfortunately, at that time the city council was concerned about Canterwood becoming a major conservative block that would have a large say in the future of the city. The HOA Board during that time was made up of active golf club members who were concerned about any impingement on the golf course and the notion that golf carts would be banned from the private streets inside Canterwood. More to the point, the HOA President directly rejected using the former city administrator Mike Wilson to be involved in negotiations with the city. No one who knew anything represented the HOA. No one from the STEP association (the most affected group covering about half the residents) was included. The city hired a consultant who came up with a silly list of expensive requirements which gave the Board the out they were looking for and let the council sandbag the process.

A few years ago annexation was revisited by the Board. They turned the simple process over to a new resident who made it into a small version of a UN study covering land use and political questions. Naturally, they concluded that it was premature to pursue annexation. The HOA board agreed that someday Canterwood should annex, but then was not the time.

Once again, the HOA board did not use anyone with expertise, nor did they get the STEP association involved. Since the Board withdrew the petition in 08, STEP users in Canterwood have paid out at least a million dollars to the city that was not necessary. For an honest and open review of annexation, STEP members personally must be informed, not just Board members.

Why hasn’t the STEP Board initiated annexation, since they would benefit the most?

We do not understand this, but it probably has something do with the same forces motivating the Board. No one, generally speaking, gets elected to either board unless they are an active member of the golf club, for the simple reason it is the only group of any size where people actually are acquainted. A few years ago there was a leader named Alan Weiss who tried a couple of times to get on the Board after he became active on the STEP Board. He organized the STEP association for the first time to deal with all the infiltration problems in the individual systems. Before he unexpectedly died, he was a strong proponent of annexation because he alone understood the dimensions of the STEP system and could not understand why Canterwood would want to keep this large unnecessary responsibility. We have never gotten a clear explanation from the present STEP leader of his position on annexation and the handover of the STEP system to the City, but he is always cordial and takes notes at the meetings.

The only course of action that is impartial is for Mike Wilson to negotiate with the city to come up with a list of requirements for annexation, have as many group meetings as needed, and then see if 50% of the residents are in favor of annexation. The fact is, every resident benefits somewhat and STEP members benefit a lot. You, as new HOA president, in your introductory letter made our point. Canterwood is indeed a small city with no technical staff, just neighbors doing their best. It is clear Canterwood should hand over to the city our big infrastructure responsibilities. At the same time, we enable ourselves to affect city policies in the future.

Who are Mike Wilson and John Morrison?

Mike was the City Administrator for Gig Harbor and John was the General Manager for Canterwood. They worked together to get the sewer line (Step System) to Canterwood and negotiated all the conditions in anticipation of Canterwood becoming part of the city through annexation. They both are working to accomplish annexation. Mike retired this year, so he is committing his time to make it happen. Both feel there was an agreement, clear at the time, that Canterwood would annex to the city and that the city would not create barriers.