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03/22/1995 - Minutes INTERGOVERNMENTAL WATER BOARD MEETING, MINUTES March 22 1995 BOARD MEMBERS PRESENT: Bill Scheiderich, Paul Hunt, Violet Yager, Peggy Manning and Beverly Froude STAFF PRESENT: Ed Wegner, Bill Monahan, Randy Volk, Mike Miller, and Kathy Kaatz VISITORS PRESENT: Jack Polans , Steve Feldman, Hal Murray, and Chris Uber 1. Call to Order The meeting of the Intergovernmental Water Board was called to order at 5 : 33 p.m. 2 . Roll Call Roll call was taken and all members were present with the exception of Peggy Manning who arrived at approximately 5 :40 p.m. 3 . Visitor' s Comments Mr. Jack Polans stated that he had attended the meeting at the City of Lake Oswego the previous evening since he has not been provided any information regarding the negotiations from the City of Tigard. The Mayor of Lake Oswego stated that the staff would respond and the City Manager has responded to Mr. Polans' s request . Mr. Polans stated that it was his understanding that there has not been a recent meeting in regards to negotiations . Mr. Polans discussed the State Mandate in 1985 or 1986 that stated water providers would conduct random water samples to test for lead content . Mr. Polans questioned whether this had been done within the city limits of King City? Mr. Monahan stated in response to Mr. Polans request , the City of Tigard has met with the City of Lake Oswego as recently as March 7 , 1995 with Doug Schmitz, City Manager of Lake Oswego and himself . Mr. Monahan stated he will be talking about the status us negotiation in executive session. Mr. Monahan also stated that it was requested and the onset of negotiations that all discussions would be held in executive session. Mike Miller stated that the lead/copper requirements have been met (3 rounds) . Mr. Miller stated that this sampling targeted homes that were built between the years 1982 and 1985 . The Tigard Water District was canvased which included King City and Durham. Chair Scheiderich questioned whether that survey is considering the contribution of lead from brass fixtures? Mr. Miller stated that was one of the concerns . Mr. Miller stated that the water in the potable and distribution system meets all Federal requirements. Chair Scheiderich questioned whether the District had complied with al'- Federal l_Federal and State requirements? Mr. Miller stated that they had. ` - Mr. Polans had further questions and Chair Scheiderich stated that those could be taken up with Mr. Miller at a later time. 4 . Approval of Minutes Beverly Froude made a motion to approve the minutes of the March 8 , 1995 meeting of the IWB which was seconded by Violet Yager. Mr. Hunt did state that he had a correction for those minutes (page 2 , item #2 Approval of Minutes) which was that no vote was recorded. A voice vote was taken and passed unanimously. 5. Well #2 and #3 Maintenance Program Mr. Miller stated that last year well #1 had been pulled. Mr. Hunt requested that Mr. Miller describe the pulling process on the wells . Mr. Miller stated that pulling the wells involved taking the motor off the well head, pulling the shaft and bowls (located at the bottom of the well) . This process involves the complete removal of the insides of the casing. Mr. Hunt questioned whether this was completed for maintenance or sanitation purposes? Mr. Miller stated that this is done as a maintenance process . Mr. Miller stated that these wells have not been pulled since thei.,,-. original installation date (#1 well 1960, #2 1948, #3 1957) . Mr. Miller stated that after pulling well #1 last year it showed a marked performance increase of 2701 Mr. Miller stated that we are currently requesting to pull wells #2 and #3 and do any necessary repairs which will increase efficiency. The permitted water usages for well #2 is currently 500 gpm, and well #3 approximately 380 gpm. The last time well #2 was pumped was in 1992 at the rate of 120 gpm, and well #3 last year at the rate of 314 gpm, so there is room for improvement . Mr. Miller provided a memo which outlined the bids received for pulling these wells . The low bidder was Mather and Sons and is the same company that pulled well #1 last year. Mather and Sons submitted a quote of $2 , 500 per site to pull and reinstall the wells . No bidders quoted on parts or repairs, since it is unknown what those might be. Mr. Miller stated that he has estimated based upon last years repairs on well #1, what those costs could be. Also included in this request is the chlorination of well #3 , which would bring it into compliance with Oregon Health Division Rules and Standards . The total cost for chlorination and well head protection would be $6, 200 . Mr. Miller stated that the total estimate is $29 , 000 with a request for an additional $10 , 000 in contingency to cover any unexpected problems that should occur. INTERGOVERNMENTAL WATER BOARD 3 -22-95 PAGE 2 Chair Scheiderich questioned whether Mather and Sons previous work came in as bid, the disparity between bidders and if there are any other vendors in this area? Mr. Miller stated Mather and Sons did come in as bid for the pulling and reinstallation, he also stated that Lane Pump would not come to the site to bid and that was an estimate on their part and he was not sure why the rate of Ericksen Pump was higher. Mr. Miller stated they had contacted other vendors in the area and these were the only responses received. Commissioner Yager questioned what consideration was given to the cost of repairs of the well head as opposed to purchasing additional water. Mr. Miller stated that with the anticipated increase in performance, plus the ability to utilize 1000 of rights on these wells, we will see an additional half million gallons of water per day between the two wells . Purchasing this water from Portland at the rate of $1 .27 would be considerable higher cost . Commissioner Hunt questioned how long this process will take and will we be able to get along without this well? Mr. Miller stated that this would take about two weeks and these wells are not being used now but will be used during the summer months . Mr. Miller stated that it took approximately two and half months last year on well #1 to get parts and complete the process . Commissioner Scheiderich questioned whether either well was in a critical ground water area and Mr. Miller stated that both wells are, but will be improving them to what the allocated amounts are. Mr. Miller stated that they have had Water Resources out to discuss upgrading these wells to increase the capacity. Mr. Wegner stated that the urgency for a second meeting was due to the fact that we will be requesting to approve this process as part of the Capital Improvement Project and forward onto the Tigard City Council . Commissioner Hunt made a motion to recommend to the City of Tigard that the Intergovernmental Water Board approve the repairs for wells #2 and #3 . This motion was seconded by Beverly Froude with a unanimous vote taken. 6 . Baylor Intertie Project Chris Uber from Murray Smith and Associates stated that he had distributed a preliminary design engineering letter that was prepared by Murray Smith and Associates on the Baylor Intertie Project . Mr. Uber stated that a part of Supply Plan Update that was completed last September recommended pursuing a long term water supply alternative as well as pursuing some interim water supply alternatives . Murray Smith and Associates have recommended that the City of Tigard begin discussing with Tualatin Valley Water District . Mr. Uber stated they have discussed with Tualatin Valley Water such topics as , amount of INTERGOVERNMENTAL WATER BOARD 3 -22-95 PAGE 3 water available and what type of institutional arrangements can be made to get this water (Hal Murray to discuss later) . The Baylor Street connection is the area that was focused upon for an intertie . Mr. Uber stated that Tualatin Valley Water District has completed an hydraulic analysis and it has been estimated that there is a possibility of obtaining 2 mgd through this intertie . This initial analysis which was done by their consultant, stated that there was a possibility of 500 gpm or . 7 million mgd. but, since this time, they have found a pipe which was left out of the analysis and there is the capability of getting 2 mgd through this connection. Tualatin Valley has also ran hydrant tests in that area and confirmed the 2 mgd with a possibility of more dependent upon demand conditions . Mr. Uber stated that the preliminary costs estimates are $76 , 000 for this improvement . In addition to this improvement, another improvement is needed on the Tualatin Valley system which supplied the Taylors Ferry reservoir at an estimated cost of $60 , 000 to upgrade the meter. The City of Tigard has agreed to pay a maximum of $15 , 000 (page 4 of the Murray Smith Memo - construction cost estimate) . Chair Scheiderich questioned whether any of these improvements would be surplus once this interim supply draw is over? Mr. Wegner stated that we anticipate for a time period to continue to have the need of buying surplus water. Due to the structuring of the Portland Contract, we would look at Tualatin Valley as our secondary source. Chair Sheiderich questioned who would be in charge of the ccnstructioi project . Mr. Uber stated this project would be the City of Tigard. The IGA with Tualatin Valley will address the issue of design construction and ownership and the maintenance of connection facilities . Mr. Murray stated that the Florence Lane meter will remain the property of Tualatin Valley. Mr. Polans questioned this process harming any of the rivers or fish? Mr. Uber stated that there would be no impact from the construction. Chair Scheiderich stated that all the rules of DEQ and the State would be complied with. Mr. Polans stated if he had more questions he could put them in writing. Chair Scheiderich questioned whether this was an engineer' s estimate or an actual bid? Mr. Uber stated there would be a contract document that will be put out for public bid. Commissioner Froude questioned the amount of the estimate. Mr. Wegner stated the estimated amount is $76 , 000 which does not include the Florence Street meter. Commissioner Yager questioned what the time frame would be on Tualatin Valley Water District as an interim source? Mr. Uber stated that Tualatin Valley Water District is now a member of the Joint Water INTERGOVERNMENTAL WATER BOARD 3 -22 -95 PAGE 4 Commission. Due to this membership they have excess water and have expressed the desire to furnish water to Tigard within the next five years or so while a long term supply is being sought. Commissioner Manning questioned whether the Board would be asked to act on the Intergovernmental Agreement tonight? Mr. Wegner stated that the Board is going to be asked to pass this onto the Tigard City Council to negotiate a final contract . Ms . Manning requested that in the future they any information that will require action by the Board to be provided at least 24 hours prior to meeting time . Chair Scheiderich stated that he will be requesting the IGA be explained line by line. Commissioner Hunt questioned whether this expenditure is included in the budget or would it come from the Capital Improvement funds? Mr. Wegner displayed the chart that outlined where the funds would come from . Mr. Wegner stated as a Capital Improvement Project through the IGA, the Board will need to approve and forward onto the City Council . Mr. Wegner also stated that these funds are from Water revenue. Chair Scheiderich questioned whether this $145 , 000 was 100-. or more of the total Capital budget for Water for this fiscal year? Mr. Wegner stated that it was and the only other Capital Improvement that was done for this year was the $90 , 000 project on North Dakota. Commissioner Hunt made a motion to recommend that the City of Tigard approve the expenditure for the Capital Improvement Project which was seconded by Commissioner Manning. A vote was taken and the motion passed unanimously. 7 . Draft IGA with Tualatin Valley Water District Hal Murray stated that he would go through each paragraph of this IGA separately. Mr. Murray stated that this Agreement was put together by Tualatin Valley' s attorney by previous agreements they have with other entities , and was modified to fit the needs of Tigard. This Agreement has been reviewed and approved by Tualatin Valley Water district at the staff level . Commissioner Manning questioned this Agreement being written by the Tualatin Valley Water district . Mr. Monahan stated that Clark Forest, Tualatin Valley Water District' s attorney has reviewed it as well as himself . Mr. Monahan clarified this statement by stating that in the past he had been the one who reviewed such contracts at the City' s attorneys office and he felt comfortable reviewing this Agreement . Hal Murray highlighted the following from the Agreement : a. Paragraph B - Recitals - Recognizes that according to separate intergovernmental cooperation agreements, the City of Tigard provides water service to the cities of King City, Durham and the Tigard Water District . INTERGOVERNMENTAL WATER BOARD 3 -22-95 PAGE 5 b. Supply of Surplus Water and Term of Agreement - This Agreement goes for a period of ten years beginning with July 1, 1996 througl June 30 , 2005, subject to renewal, extension and termination. The parties to this Agreement agree that this is an interim measure until the City can secure a permanent source and the City is presently pursuing the development of a long term water supply as a permanent source. The City may at its discretion, purchase the maximum water purchase from the District allowed under the terms of this Agreement or some lesser amount on a year around basis or a seasonal basis or intermittent basis . The development of long term supply by the City will determined the City' s actual need and use of water from the district which cannot at the time of the execution of this Agreement be determined which will allow the City a lot of flexibility. The City shall have the right to purchase six (6) million gallons a day from the District. Commissioner Manning questioned whether six (6) million gallons a day would be adequate over the next ten years? Mr. Murray stated that six (6) million gallons a day would not meet all of the City' s needs . Mr. Wegner stated that at this point that is all that Tualatin Valley Water District is willing to sell . Mr. Wegner continued to say that we would still need to purchase water from Lake Oswego, Tualatin Valley and the City of Portland, as well as obtaining water from the wells . Commissioner Manning questioned again, whether this would allow thF- City enough flexibility or is this the best we can get? Mr. Murra stated that the City is anticipating the continual purchase off''" water from Lake Oswego for a time period, and the need is still there for an additional source. Murray Smith has recommended that we look into Tualatin Valley Water District and negotiate for the maximum amount of water, which they have been successful in negotiating six (6) million gallons a day. Mr. Murray stated that this Agreement allows the City the ability to purchase up to a maximum amount of six (6) million gallons a day or nothing dependent upon other sources . Chris Uber stated that this allows us the flexibility if Lake Oswego fluctuates what they will give us, and take the additional necessary from Tualatin Valley. Mr. Murray stated that on the City' s peak day last year (13 . 6 mgd) , Tualatin Valley Water District would be allowing us almost half of the necessary water. Mike Miller stated that if we can get 6 mgd from Tualatin Valley, 3-4 mgd from Lake Oswego, and 1 . 5 mgd from the wells we would have 11 .5 mgd and the need to take from storage would be very small during the week. Paragraph 2 on page 2 . This paragraph stated that should the entire service area of the City be merged, consolidated, or otherwise joined with District, or another entity pursuant to OF INTERGOVERNMENTAL WATER BOARD 3-22-95 PAGE 6 Ch 450 (water authority, under statue of the State, which allows a District and a City to enter into joint water operations) this Agreement would become null and void. This would nullify this Agreement since there would be other agreements working for the City. Chair Scheiderich questioned whether this was City of Tigard goal, Council or otherwise for this year? Mr. Murray stated it was not. #3 - Other Sources . This allows the City to purchase from other state approved sources . Chair Scheiderich questioned whether this Agreement would provide on how to manage the quality control by mixing sources? Mr. Murray stated that would be up to the City. Mr. Murray stated that this is the same water that is currently being purchased from the City of Portland. #4- Connections, Meters and Storage. This states that the City will provide for maintaining meters, valves, controls and proper operation and the City will arrange to have its meters tested and calibrated annually and provide the District a test report, which is standard in the water industry. The City would agree to purchase, at their expense any pumping stations, pressure sustaining valves, and other equipment which may be necessary to convey, control and meter the water into the system. Mr. Murray discussed the different potential connections, which include Baylor Reservoir, Cascade Avenue, and Greenburg Road. Commissioner Hunt stated that the only one the City currently has with valves is the Baylor Street Reservoir. Mr. Murray stated that the Agreement also states with the written consent of both entities, additional connection points may be added. Paragraph 5 - page 3 . Continuity of Service. This states that the District shall provide "firm" service of six (6) mgd for peak day usage. The Agreement goes on to define what peak days and "firm" service are. This paragraph goes on to state that they will provide the same benefit of service as to their general customers . This paragraph also discussed emergency or restrictions of delivery of service. The City will also agree that they will do as the District does in regards to emergency conservation matters . This Agreement states that maintenance and regular work could interrupt the service. In cases of emergency they will attempt to give ten (10) days written notice. In any interruption, the District agrees to reasonable diligence in maintenance of its facilities . INTERGOVERNMENTAL WATER BOARD 3 -22-95 PAGE 7 Paragraph 6 - Contract Demand. The District expects the City to come up with the water demand that is needed in the next year. ThE City will need to anticipate how much water will be needed in the--- next year. This paragraph also states that the District will conduct a survey every four years in conjunction with a rate study to forecast the total District demand. The amount of the quadrennial forecast demand determined by the District will establish the City' s firm allowable future annual peak days demand. Mr. Murray stated that the District could change the 6 mgd to a higher quantity as well as to a lower supply. After the first year, this Agreement could also enable the District, if they do not have enough water to reduce the flow to the City. Commissioner Hunt questioned the possibility of the District taking over another area which could reduce the surplus water they have to sell? Mr. Murray stated that according to this Contract they could do that . Mr. Murray stated that this Contract does not guarantee firm capacity if the District does not have the supply. Mr. Wegner stated that Tualatin Valley Water District is in a better position to purchase additional water from Barney Reservoir and other sources to increase their supply to provide to the City of Tigard. Paragraph 7 - Water Quality. Chair Scheiderich questioned the liability of the water quality. Mr. Scheiderich stated that if problem originated on the District' s supply to this connection, tht Board should insist that the District should be held responsible~ for the quality of water delivered to the connection. In an emergency the District can explain their liability. As drafted this Agreement does not treat the issue of who is liable for the quality lapse and he would like to see that added. Mr. Murray suggested that Mr. Scheiderich provide the wording to Mr. Monahan for this change. Paragraph 8 - Area Supplied. Again this states what area is serviced by the City. Paragraph 9 - Non-Assignability/Sale Limitations . This paragraph states that the City will not without prior approval from the District sell water to any other entity outside its boundaries . Paragraph 10 - Rates . This paragraph states that the City will pay monthly to the District for all water at the rate of 78 . 1 cents per 100 cubic feet through June 30, 1996 . On every July 1 during the term of this Agreement, the rate shall be retained, raised or lowered. Paragraph 11 - Rate Setting Criteria. Mr. Murray discussed this rate setting criteria as outlined on page 6 and 7 of this Agreement . This Agreement also allows for in the event of a INTERGOVERNMENTAL WATER BOARD 3-22-95 PAGE 8 addition, modification or substitution by the District to supply the City, can result in additional cost . Commissioner Hunt questioned what is the current rate from the City of Lake Oswego. Mr. Wegner stated that it is at .59 but do not know what that will be in the future. The new rate for the City of Portland is 1 .28 . Page 8 #2 - This give the District the ability to repair under emergency provision and pass those costs onto everyone who uses water on that system. According to Mr. Murray this is an provision that is good for both parties, since it outlines what would be done during such an occurrence. Paragraph 15 - Limitation of Liability outlines the liability of damages and hold the District harmless . Paragraph 16 - Coordination and Consultation - Parties have already agreed to an annual change, this paragraph states that they will notify the City sixty (60) days prior to that change. Paragraph 17 - Limitation of Supply. This is almost the exact wording that South Fork Water District has in their contracts with outside districts . Chair Scheiderich suggests that the reduction or suspension of supply based on this paragraph would allow the City of Tigard the right to terminate the Contract. If the District cannot supply the City should not be stuck with a contract waiting for the supply. Paragraph 18 - Planning. This outlines that the parties shall supply records as needed upon reasonable request . Paragraph 19 - Termination. If the City withdraws areas within the District' s boundaries, then this Agreement shall terminate on the next succeeding June 30 from the effective date of withdrawal . Chair Scheiderich questioned whether this is intended to bind Durham and King City as well as Tigard? The Board discussed what this would mean. Commissioner Hunt stated that if the City were to withdraw the Metzger area, they would terminate this Agreement . Chair Scheiderich stated that the second sentence on this paragraph fixes the City to a ten year term unless a party violates this Agreement, with the consequences that are understood. Paragraph 20 - Renewal . Right to renew upon mutual agreement of the parties . Mr. Murray stated that he felt this was a very fair Agreement and would not hesitate to recommend this . INTERGOVERNMENTAL WATER BOARD 3 -22-95 PAGE 9 Chair Scheiderich had the following concerns : Page 7, paragraph 6 (computation of costs) , costs of acquiring-- alternate supply .5 cents per hundred needs to determine if this includes their buy in to the Barney Reservoir expansion. Responsibility of the quality of supply to connection point . Paragraph 15 may be that these potentialities out of their control may cause a interruption in quality. This would be plausible grounds for them to defend against any claim for damages because of quality of water delivered and should be their defense not the City of Tigard. This limitation of liability he suggested be made subject to section 7 (their case to defend) . Also noted the comment made on Section 17 . Chair Schedierich questioned what the pleasure of staff is? Mr. Wegner stated that the Board look at this IGA and with changes as suggested be passed on to the City Council for final deliberation and approval . Chair Scheiderich questioned when the City Council would be looking at this document . Mr. Wegner stated it would be on April 11 or April 25 depending upon when the attorneys can get changes in place. Commissioner Manning moved that conceptually with the additions and rewording previously mentioned, the Intergovernmental Water Board refer this to Tigard City Council. This motion was seconded b_ Commissioner Hunt . Commissioner Froude questioned making further-- changes with Chair Scheiderich stating that friendly amendments subject to further comment be transmitted to the City Council if received by the deadline to go to Council . Commissioner Yager questioned paragraph B - Recital, referring to Durham and King City, is that effective throughout the entire document? Mr. Scheiderich stated that this could be worded differently. He suggested that it stated that the City makes this Agreement acting on behalf of all parties represented by the Intergovernmental Water Board. A voice vote was taken which passed unanimously. Commissioner Hunt stated that the Intergovernmental Water Board is fortunate to have Mr. Schederich on the Board. 8. Non Agenda Items Mr. Wegner stated that on Tuesday night' s agenda, the Tigard City Council will be acting on a water rights application which has been discussed the past few months . This is the application of the City, which represents the entire water service area for water rights on the Willamette River. Mr. Monahan stated that last week he had met with Peggy Manning and Interfaith Outreach in regards to usage of the Canterbury site for a storage area for clothing and food supplies for the homeless . Mr INTERGOVERNMENTAL WATER BOARD 3 -22-95 PAGE 10 '" Monahan stated that they had discuss the possibility of a lease arrangement between the City and the IWB. The proposal would identify an area within the building which would be used for storage only, accessed only by the staff and volunteers of Interfaith Outreach not the clients . This would require some building modifications that would be done by the City with the cost being reflected in the lease agreement. Chair Scheiderich question whether there would be anything that would upset or disturb the neighborhood? Mr. Monahan stated that were the concerns that the Council is wanting to discuss . Also discussed the fact that there would be limited use, possibly two hours per day, three days per week. Commissioner Manning stated that security of this facility is uppermost in Interfaith' s mind. Ms . Manning stated there would be no access by the clientele. Commissioner Hunt questioned whether this would be a written lease? Mr. Monahan stated that it would be a written lease. Mr. Hunt continued to say that accessibility could be addressed in the lease agreement . It was stated that Ed Wegner is in charge of this facility. Discussion was held on the usage of the shelter at the Water building? It was stated that during the month of January the shelter was used 13 nights and during February was used 19 nights . i Chair Scheiderich stated that he was not available to meet on the 12th which would be the regularly scheduled meeting date. It was decided that the next meeting would be held on April 19th. A motion was made by Peggy Manning that the Board go into Executive session which was seconded by Commissioner Hunt . This meeting was adjourned during Executive Session. INTERGOVERNMENTAL WATER BOARD 3-22-95 PAGE 11