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03/08/1995 - Minutes INTERGOVERNMENTAL WATER BOARD MEETING MINUTES March 8, 1995 BOARD MEMBERS PRESENT: Bill Scheiderich, Paul Hunt, Violet Yager, and Beverly Froude STAFF PRESENT: Ed Wegner, Randy Volk, Mike Miller, Mary Gruss, and Kathy Kaatz VISITORS PRESENT: Jack Polans 1 . Call to Order The meeting of the Intergovernmental Water Board was called to order at 5:30 p.m. 2. Roll Call and Introductions Roll call was taken and all members were present with the exception of Peggy Manning. 3. Visitor's Comments Mr. Jack Polans quoted from the January 24, 1995 letter of intent from former Commission Morgan and stated that he wanted to discuss the revenue analysis but would wait until another time to discuss. Mr. Polans referred to the January 12, 1995 agenda item of the City of Tigard 3.2 (Water Rate Analysis) and stated that he was concerned about the proper consultant being hired. Mr. Polans also discussed the January 11 , 1995 meeting agenda of the IWB and the issue of negotiations with Lake Oswego. Chair Scheiderich stated that Mr. Polans would need to address any further issues at another time since visitor's comments are limited to five minutes. Mr. Polans stated that he would write a letter to finish addressing these issues. Mr. Polans questioned whether the IWB Board is an independent advisory board to the City of Tigard? Mr. Polans questioned whether the board made its own observations of the facts presented? Chair Scheiderich stated that observations and recommendations was the appropriate term. Mr. Polans stated that he feels uncomfortable with the amount of influence from the staff of the City of Tigard. Chair Scheiderich stated that there is nothing inappropriate with the City of Tigard being represented on this Board nor with it supplying the staff. He also stated that Council President Hunt does the Board a service by being on the Board and listening to the concerns of the smaller cities who do not have control of the assets. Chair Scheiderich stated as to updates on the status of negotiations there would be no reason to lack confidence. Commissioner Froude stated that at both the meetings of the TWD and the IWB there is always a Director's report which is stated as well as written in the minutes on the interim and long term water supply. Commissioner Yager stated that negotiations are going on in executive sessions with Lake Oswego and Tigard and that is confidential. She also stated that there are regularly scheduled meetings as well as a time line. She stated that reference has been made to communications although the content has not been discussed. Ms. Yager questioned whether there would be a progress report to be given at this time? Chair Scheiderich stated that we are given verbal reports at every meeting. There may be separate progress reports being given to the Tigard City Council but he doubts they would be any different than is presented here. Mr. Wegner stated that negotiations have been going on for approximately five months and within this time period both cities have had major elections, which has involved getting new members of councils brought up to date. Early in negotiations it was decided that detailed information would be held in executive sessions between the Tigard City Council and the Lake Oswego City Council. Mr. Monahan met with the IWB back in December in executive session and brought the Board members up to date on the status of negotiations. The new Mayor for the City of Tigard and the City Manager have been meeting with the Mayor and the City Manager of Lake Oswego in working out some of the concerns. As this progresses, the Board will be kept up to date whether it be in an open meeting or an executive session. Commissioner Hunt stated that in order to run meeting efficiently, he felt that visitors comments need to be limited to a five minute presentation. 4. Approval of Minutes Mr. Hunt made a motion to approve the minutes of the February 22, 1995 meeting minutes as written. The motion was seconded by Commissioner Froude. 5. Rules, Rates and Regulations - Randy Volk Mr. Volk stated that a draft was presented to the Board members on the Rules, Rates and Regulations which were adopted by the 190 agreement last year, Exhibit A, Chapter 12.10 (City Code)• At the time of the IGA, the City of Tigard's attorney looked over those Rules, Rates and Regulations and made some changes which were adopted in the form that was presented tonight. The Accounting Department who Intergovernmental Water Board, 3-8-95 Page 2 now takes care of the billing for the Water Department had made some changes and also has made some slight changes in the operations which necessitates some rewording. The old Rules, Rates and Regulations as they were adopted have been crossed out and in bold print are the new recommendations. Exhibit B which was approved but was not supplied tonight are the current rates. Commissioner Hunt questioned item 1 2.10.070 - Credit for Water Leaks and whether it should state that amounts over $165.00 can be appealed to the IWB? Randy Volk stated that this may be covered in another section (Grievances, Power to Grant Variances) but, if it is a concern it can be amended. Mr. Hunt questioned (12.10.110 - Cross Connection Control Program) whether irrigation backflows that are required to be inspected once per year, are being enforced? Mr. Hunt concern is that we are requiring something that we are currently not enforcing. Mr. Hunt also questioned whether the Water Department could make a better deal on supplying backflow devices for the public? Randy Volk stated that the Backflow Program which is currently in operation does deal with commercial and fire lines, but the Water Department is beginning to make note of the residential use of irrigation systems, so as to enforce these. Mr. Volk also stated that there are only a few double check valves and RP's that are currently approved by the State. Mr. Hunt stated that the Rules, Rates and Regulations states that the meters are read once every eight weeks. Mr. Hunt questioned whether this should state that the meters are read at Department discretion? Commissioner Froude stated that she felt that once every eight weeks is very specific. Mr. Hunt stated that there has been discussion to the reading time being changed and this would allow a little more flexibility. Mr. Wegner questioned whether this could be stated as meters will be read based upon the policies set by the IWB and the Tigard City Council. This would allow the flexibility if we were to change the reading times. Commissioner Froude discussed who has access to these polices and the fact that they are available to the general public, she felt they should be specific. Mr. Wegner stated that these policies can be amended at any time by Resolution by the IWB and/or the Tigard City Council. Mr. Hunt questioned the Water Main Extensions (12.10.170) being in conflict with City Reimbursements Districts. Mr. Wegner stated that he is checking with the City Attorney's office and will let the Board know. Intergovernmental Water Board, 3-8-95 Page 3 Mr. Hunt stated that the City of Tigard has a Reimbursement District policy which they are in the process of re-writing. This policy states that any services that will service others can form a District and collect back from them. Randy Volk stated that in the memo from Ed Wegner it stated that the Board would briefly look at this document and next month will discuss further. Randy Volk stated that he would provide Exhibit B to the Board. Mr. Volk also thanked Mike Miller and Mary Gruss for assisting with the updating on this document. Mr. Wegner stated that if the Board members had any questions or concerns to let us know and we will have those incorporated into draft number two for the next meeting. 6. 1995/96 Budget Review - Ed Wegner With the Board's approval the Request For Proposal for Water Rate Study was discussed next. Mr. Wegner stated that he has already had some concerns voiced to him as follows: a. #7 and #5 should be that they address the proposed Capital Improvement Projects not identify them. b. Page 11 , #2 should read, the System Development Charges for the City of Tigard by Economic Engineering Services. C. Page 13, one typographical mistakes (structures). d. Page 14, two typographical mistakes (payment will be in lump sum, and authorized by. We will be forwarding this draft with the above corrections and any others necessary by the Board to the Tigard City Council for adoption. Mr. Wegner stated that the consensus of the Water Department and the Finance Department was that this would be completed by June 30, 1995, although it now appears it will be into July or August. Commissioner Froude questioned whether there is something in this document which discusses overruns or the consultant not staying within their budget? Mr. Wegner stated that the Contract will state that it will be for a lump sum. Mr. Hunt questioned the time frame for preparation of bid and whether it allowed for sufficient time. Mary Gruss stated that these dates can be adjusted. Chair Scheiderich questioned whether this RFP would contain a scoring matrix or a list of criteria on how they are to be evaluated? Mr. Scheiderich stated that this should be placed in the RFP and state that these proposals will be evaluated on the basis of following.... Intergovernmental Water Board, 3-8-95 Page 4 6. 1995/96 Budget Review - Ed Wegner Mr. Wegner stated that he had presented to the Board a draft of the Water Department budget overview requests. Mr. Wegner stated that at the April meeting either Bill Monahan or himself will present to the Board a more detailed budget that will be presented to the Budget Committee and the Tigard City Council. Last March if referred back to the minutes of the IWB, it was discussed that the IWB has the right to submit changes directly to the Budget Committee. Mr. Wegner stated that we would be going through the line items and to discuss what items are included in that line item and why the changes in percentages from the last budget. Mr. Wegner stated that the 500 account lines items deal with staff and are completed by the Finance Department with the exception of #505 and #520 and the 600 account line items deal with operations. Mr. Hunt questioned why line item 551 .000 went down 74% (Workers Compensation)? Mr. Wegner stated that this would need to be addressed by the Finance Department. Randy Volk discussed line item: 505.000. He stated that last year he had six part time help and four of those worked directly with the Water Department and two were shifted to work on the Grounds Crew which was to maintain the reservoir grounds. 520.000 Overtime covers both the call out and the on call person for the weekend as well as any additional overtime necessary. Mike Miller discussed line item: 600.000 Cost of Water. The reason for rising 27% are the increase in rates from the City of Portland which increased 126% from last year. Mr. Miller stated that Lake Oswego and Tualatin Valley Water prices are estimated. Mr. Hunt questioned what else goes into the calculation of the 27% increase? Mike Miller stated that he also calculated an increase in the Lake Oswego rates, these rates have not been raised in the last two years and Tualatin Valley charges were unsure so he calculated what they currently pay City of Portland and added some overhead costs to that. Mr. Miller also stated that increased consumption is also included in these calculations. Mr. Miller stated that we bought less than $62,000 water from Portland last year and then this year to jump to $142,000 is a big increase. Intergovernmental Water Board, 3-8-95 Page 5 Ed Wegner discussed line item: 601 .000 Professional Services. This is where consultants are paid from. Last November the City of Tigard entered into an Agreement with Murray Smith and Associates (four year contract at $25,000 per year) has increased this account as wells as a seismic and stress analysis on the steel tanks. Mr. Wegner stated that this week while cleaning the 10mg site, it was noticed that there is a separation along the outside wall and there is a structural engineer coming in Friday to determine the cause. This line item expense may be necessary. 602.000 Contractual Services. This line item is up considerably since this year we have combined budgets to better serve the City's accounting system. This line items will include janitorial service, SCADA system programming, heating and air conditioning service, answering service for emergency calls. Mr. Wegner stated that if a responsibility is transferred to another division, the money to provide for these services will continue to come from that department budgets. Commissioner Froude questioned the use of the building for night meetings, weekend use, and the homeless shelter? Mr. Wegner stated that the Water budget has always paid for that. He also stated that the Finance Department will be suppling a matrix that outlines these charges which are divided among the different divisions within the City. Mr. Wegner also stated the 1 % of sales which also goes to King City, Durham and the Tigard Water District comes out of the Contractual Services line item. Bill Scheiderich questioned line item 704.000 - Office Furniture and Equipment. Mike Miller stated that the Water Division is budgeting for a new software program from Hansen Information and Technology. This program is currently being used for maintenance purposes within Maintenance Services in Sanitary, Storm, and Streets. This new software program will enable the Water Division to track maintenance of valves, pumps and pumping facilities, timing of blowing off dead end lines, fire hydrant repairs and maintenance. We are currently doing all these tasks manually which is very time consuming. He also stated that this line items includes budgeting for AutoCad software and workstation to bring the drafting capabilities of the Water Division to the same level as the City's Engineering staff. Mr. Hunt wanted to clarify whether this was an item that was used by various departments or the Water Division? Mike Miller stated that this was a large packet and this portion was strictly for the Water Division. Intergovernmental Water Board, 3-8-95 Page 6 Mr. Scheiderich questioned line item 706.000 - Operation Equipment. Randy Volk stated that this included the purchase of a $62,000 backhoe, but with trade-ins hope to have down to $48,000. Another item included is a meter reading van for $17,5p0, a 20 ton utility trailer, and shoring shield for $3,750. The trailer the Water Division has currently is inoperable. This trailer purchase will be shared by other divisions (2/5 Water, 2/5 Wastewater and Storm, 1/5 Street) as well as the shoring shield. The Water Division is also sharing in the cost of a concrete cutter that the Wastewater Division is purchasing. This line item includes a chlorination station which will add chlorine to the water as needed prior to pumping up to Bull Mountain, sample stations for water quality, SCADA upgrade to upgrade system and also a purchase of two way radios which will replace existing incompatible radios. Paul Hunt questioned if there were two meter reading vehicles? Randy Volk stated that we currently have two meter reading vehicles that were purchased from TVWD and were used before that by the postal Service. Bill Scheiderich questioned the last time contracting out the meter reading services was? Mr. Volk stated that this is discussed on a regular basis. Currently the meter reading program is coming along fine, but when additional purchases are requested the need to look at contracting those services out needs to be addressed. Mr. Scheiderich questioned whether Tigard is a party to the sharing of equipment within the area? Mr. Wegner stated that the City is involved in this, but a backhoe is seldom available through other agencies. Ms. Yager questioned the software purchase and how much projected savings there will be? Mr. Wegner stated that all utilities within the infrastructure will be computerized (all manholes, valves, meters, fire hydrants). This software will have the ability to generate workorders, monthly reports, accomplishments and will track problem areas within the City limits. Hopefully within the first four months we will be able to generate reports and within one year to eighteen months will have everything City wide on this system. Mr. Hunt questioned the vehicle purchases being contingent upon the meters being read in house. Mr. Wegner stated that a determination will be made and will be brought to the Board and the Tigard City Council by January 1 , 1996 if this will be done in house or contracted out, if contracted out the vehicle will not be purchased. Mr. Wegner questioned whether the Board would like to have a individual copy of the budget pages? The Board stated that they would prefer to have a written summary as well as answers provided to the questions that were not answered at this meeting. Mr. Scheiderich stated that if a written presentation is being made to the Budget Committee he would like the Board to also receive a copy of that. Intergovernmental Water Board, 3-8-95 Page 7 Mr. Polans questioned if this was the end of the budget discussion? Mr. Wegner stated that he still had two more pages to discuss. Mr. Wegner stated that another page submitted included all the Water Division employees paid through the Water fund including all benefits. Also distributed is the program summary which states last year goals, projected goals and objectives for 1995/96 and performance measures. Mr. Polans again questioned if this ended the budget discussion? Chair Scheiderich stated that this ended the preliminary review of the budget for this evening. Mr. Polans asked if he could ask a question of the Board. The Board declined answering any more questions at this point, but stated that Mr. Polans could direct those questions to Mr. Wegner after the meeting, if time allowed. 7. Director's Report - Ed Wegner Mr. Wegner requested the Board to hold a second meeting this month on March 22, 1995. Mr. Wegner stated that by the first of next week, we will have a draft agreement of an IGA between City of Tigard and Tualatin Valley Water District to buy surplus water from them for the interim supply. We will also have a cost estimate to connect to Tualatin Valley at the Baylor Street location, and cost estimates for improving to well #2 and #3. We would like to bring these to the Board on March 22nd and on March 28th take these to the Tigard City Council to begin the process and have Baylor Street and the wells on line by July 1 , 1995. Mr. Hunt questioned if haven't reached an agreement with TVWD how can we set an interim contract if we don't know what the interim will be (3 months to 13 years)? Mr. Wegner stated that if long term contract with Lake Oswego is negotiated it will take from 3-5 years. The interim IGA with TVWD states that we are looking for a long term source and when that comes on board we will have the ability to remove from the contract. Chair Scheiderich pooled the Board in regards to a March 22nd meeting? The Board was in agreement and the Chair questioned whether Mr. Wegner would notify Ms. Manning? Long Term Water. Mr. Wegner stated that the Mayors and City Mangers from City of Tigard and Lake Oswego have met twice and they are both reporting back to their respective City Councils Tuesday and hopefully will have the five major areas of concern resolved. Mr. Wegner stated that at the meeting on March 22, 1995 or the April 8, 1995 meeting he feels confident that Mr. Monahan will address the Board and discuss the majority of the contract. Chair Scheiderich stated that he would prefer that on one of those dates, he would like to have something in writing or presented in person, what has been agreed upon. Intergovernmental Water Board, 3-8-95 Page 8 Mr. Hunt stated that if Mr. Monahan does not feel comfortable discussing in a public meeting than it should be addressed in executive session. Mr. Wegner stated that even though the contract will be between the City of Tigard and the City of Lake Oswego, the recitals state that the City of Tigard is representing Durham, King City, and the unincorporated area. Mr. Wegner stated that there is no new movement on the Willamette River Study. Mr. Scheiderich questioned whether there would be any new movement until the State of Oregon resolves Pacific Power and Lights claims to twenty times the volume going over the Willamette Falls? Mr. Wegner stated that as soon as the regional study is complete the lower part will move along according to Phil Smith (MSA) since this is the area not affected by PGE claims. This study is tentatively due to be completed by November. There should be a preliminary report completed in July and a final report adoption by each entity in November. Mr. Wegner also provided the Board with a copy of the last minutes from the Regional Water Supply Plan Participants Meeting held February 21 , 1995. The City of Tigard has instructed the City Manager and the Director to make application to the State of Oregon for water rights on the Willamette River. The locations of these will be in the area that Tualatin Valley and Wilsonville have water rights which is not in the area of the PGE claims. Mr. Wegner discussed the results of the testing on the 10mg pumping sites which stated that we would have the ability to draw down from about 16.5 feet to 6 feet which could give us two million gallons of water more than last year. Mr. Wegner stated that Lorry Christian who had been working in the Human Resource Department has resigned and taken a position in the private sector. This will enable the Water Division to utilize that position within the Water Division as a Utility Worker. Mr. Wegner had also distributed a copy of the water conservation program through Northwest Natural Gas and stated that the Water Division was very successful with 4,102 participants with a cost of a little over $6,000. Mr. Wegner also stated that we are putting articles in the Cityscape this month which will be distributed to Durham and King City. At the request of the TWD we will be checking into doing mail inserts into all water bills or at the cost involved in doing a mailing to involve those occupants to the unincorporated area. Mr. Wegner stated that Murray Smith and Associates would be beginning the survey of the land for the Menlor Reservoir site. This report should be provided within the next six weeks. Intergovernmental Water Board, 3-8-95 Page 9 Mr. Wegner also stated that as soon as the monthly report was available it would be mailed out to the Board. Chair Scheiderich questioned whether the City was pursuing any other water conservation efforts? Mr. Wegner stated that the City has checked into the toilet bags and double levers. We will be offering this Spring some seminars on irrigation systems by the landscaping crew and the backflow crew. Commissioner Froude questioned whether there would be any attempt to pursue commercial customers lack of conservation measures. Mr. Wegner stated that we have some brochures to encourage water conservation that we would like to send out early this year. Commissioner Yager stated that there was no mention in the Rules, Rates and Regulations in regards to water conservation and penalties associated with. It was discussed that we would prefer to educate on water conservation issues. Commissioner Froude stated that there is a need for consequences. She referred to U.S.A. rates being based upon usage. Ms. Froude stated that she felt the Board should discuss this issue. 8. Non Agenda Items No items were discussed. Chair Scheiderich stated that comments on the Rules, Rates and Regulations needed to be in by the March 22, 1995 meeting. Mr. Scheiderich also stated that he would defer until the meeting on the 22nd to set the April meeting. 9. Adjournment Paul Hunt moved to adjourn which was seconded by Violet Yager. The meeting adjourned at 7:00 p.m. kathy\iwb\3-8mtg.iwb Intergovernmental Water Board, 3-8-95 Page 10