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06/08/1994 - Minutes Public INTERGOVERNMENTAL WATER BOARD MEETING MINUTES June 8, 1994 Board Members Present: Chair Peggy Manning, Chair-Elect Bill Scheider_ich, Lynda Jenkins, George Morgan, John Swartz Staff Present: Pat Reilly, Ed Wegner, Randy Volk, Mike Miller, Mary Gruss and Kathy Kaatz 1. Call to Order The Intergovernmental Water Board Meeting was called to order by Chair Manning at 5: 37 p.m. Roll call was taken and all members were present with the exception of Bill Scheiderich who arrived a few minutes later. 2. Approval of Minutes The minutes were approved as written. 3. Visitors Comments Jack Polans wished to thank the IWB for placing the information in the Tigard City Public Library. Jack questioned whether there is money that the would be available to the IWB to provide information to people outside the IWB? Pat Reilly stated that the City of Tigard has budgeted funds for communication purposes, but the Tigard Water District is a separate entity and they have their own budget and would be responsible for providing that information to their constituents. 4. Discussion of Draft Bylaws Pat Reilly suggested that since Murray Smith was in attendance at the meeting we let them make their presentation at this time. Hearing no objections from the Board, Chair Manning agreed. 5. Long Term Water Supply Hall Murray and Chris Yuber were in attendance from the firm of Murray Smith and Associates. They were in attendance at this meeting to provide an update on the status of the water supply plan. This plan is not complete at this time since they are waiting for some firm data from the City of Lake Oswego. Their firm is looking at seven different water supply alternatives or options of which the City's present water supply from the City of Lake Oswego is one of and also the City of Portland. See next page. WATER SUPPLY ALTERNATIVES LOCATION OF FACILITIES CITY OF LAKE OSWEGO Raw water intake on the Clackamas River (Clackamas River) in Gladstone. From the Clackamas River across the Willamette River to treatment plan in West Linn then pumped to Lake Oswego along HWY 43 . Tigard connected to this system on Bonita Rd pumpstation near Walu a Reservoir. CITY OF PORTLAND Two sources - Bull Run Watershed (Bull Run and Columbia River located East of Sandy. City has 3 well fields) large conduits that supply system by gravity most ends up at the Powell Butte Reservoir. Also supplied from the Columbia River Ground Water Wells - these wells have an installed capacity of 90 million gallons a day. But due to ground water contamination issues they are currently limited to 45 million gallons a day. They are working with DEQ to keep supply active. CITY OF TUALATIN Supply begins at the Powell-Butte (Bull Run and Columbia) Reservoir and is called the Washington County Supply Line. It also supplies water to the Tualatin Valley Water District, City of Tualatin and Raleigh Water District. HILLSBORO/FOREST GROVE Joint Treatment Plant. Draw water from Joint Water Commission Supply the Trask River and the Tualatin River (Tualatin/Trask Run) through Scoffins Dam (Henry Haag Lake Project) . Have a treatment plant located SE of Forest Grove and can treat river water which they provide water to the 3 entities including City of Beaverton. SOUTH FORK WATER BOARD SUPPLY Water treatment plant located in Oregon (Oregon City/West Linn) City and an intake on the Clackamas River. Supply water to the City of West Linn, Oregon City and the Claremont Water District. TUALATIN VALLEY WATER DISTRICT Bull Run and the Columbia River Ground SUPPLY Water Wells through the Washington (Bull Run and Columbia River County supply line. Well Field) E(W LLAMETTE RIVER SUPPLY ABOVE Potential treatment plan either City or ilsonville) lRegionally at the Willamette River. INTERGOVERNMENTAL WATER BOARD MEETING MINUTES - JUNE 8, 1994 - PAGE 2 Chair Manning questioned the quality of water, what would the best source of water be out of these choices? Hal Murray stated that all water supplies meet the standards of EPA and DEQ. The Portland water supply is not filtered, they have a waiver of the need to filter their water, so there water does get chlorination and ammonia in its treatment. It will soon be treated with additional chemicals to raise the ph level. Lake Oswego Joint Water System, Hillsboro/Forest Grove, South Fork all have filter system through sand filters and chemicals are used. The quality of water probably does not vary as much coming out of a filtered system. Portland water does vary but still complies with the standards. A filtered water does contain more chemicals than a non-filtered process. All the processes involve adding Aluminum Sulfate which is an Alum which is either a liquid or powder. This turns into Alum salt which creates a floc in the water and this material kills bacteria and removes the air particles from the water. This is intentionally added to the water to create a floc (Flocculation process) . There is also added Chlorine, polymers are also added as filter aids to toughen the floc so that it doesn't break through the sand as the water passes through the sand bed. Lime or Soda Ash is added to cause higher ph (more alkaline) and sometimes ammonia. Portland is the only one that is using ammonia. Fluoride is added only in Forest Grove, there is none in any of the water sources naturally. All the water supplies that are being considered are quality water supplies. The Water District is in a very unique position geographically to buy water from a lot of various sources. Lake Oswego is currently re-analyzing their Master Plan which states that they need to expend a lot of money to provide water for themselves as well as the Tigard area. They have hired an engineering firm to re- evaluate and are turning that over to the City. At this time if Murray Smith were to anticipate the cost of water, the City of Lake Oswego water costs will be more than other options available. Lynda Jenkins questioned the Columbia River fields and the quality of water? Hal Murray stated that they have drilled fifteen wells along the Columbia River near the Airport. There was a big plant there which is currently owned by Boeing Company as well as another big plant near that location all within an area that could contaminate the aquifer that those wells were drilled in. The question came up when contamination was found in Rockwood Water District well. This contamination has never gotten into the Portland well although, the possibility of this contamination reaching the Portland wells was certainly a consideration. This would create a liability situation along with the property owners (PRP - Principle Responsible Party) . They have shut some wells down that are closest to the contamination until they complete further investigation. Chair Manning questioned whether the City of Tigard completes any tests as the water comes into our system? Randy Volk stated that we do monthly sampling, but do not have a source sample. John Swartz questioned whether Federal Regulations require the City to put in treatment plants? Hal Murray stated that any water that is considered a surface water (out of a stream or a well that is near a river or connected to the river) are required, under the Clean Water Act to be treated with filters. INTERGOVERNMENTAL WATER BOARD MEETING MINUTES - JUNE 8, 1994 - PAGE 3 There was a provision in the law which allowed the cities that met certain conditions to give waivers (City of Seattle, Tacoma, Portland) based on the high quality of water they have because of the watershed. About the only way they would get out of compliance is if they get dirt into it. There are some other organisms, one called cryptosporidium and another is called giardia. Giardia is in a cyst and take a lot of time under chlorination to kill it. The regulation on how long the water is in contact with chlorine is very stringent. Portland meets this criteria due to the length of time the water travels through the conduit before reaching its first user. Cryptosporidium is more difficult to treat. The City of Milwaukee, Wisconsin did have an outbreak of sickness due to this organism. There was what was known as Surface Water Compliance Rule that required all surface water to be treated. Most small cities along the coast that were using supplies out of streams, could not pass the waiver conditions. Portland is very careful in how they use their reservoirs to prevent adverse conditions. Discussed the turbidity of water and stated that it is an indicator of particles in the water source. Hal Murray then discussed the following water sources: City of Lake Oswego - The City is presently purchasing water from this source and the City of Portland. The City is currently purchasing this water from Lake Oswego at the rate of .58 cents per 100 cubic feet. Every indication now is that if Lake Oswego spent the money to expand their system to continue our supply of water, we would pay more than the current rate. The cost of new facility will increase the cost of water and that cost will probably be in the neighborhood of $1.00 per 100 cubic feet. At this point, the City of Tigard has no long range contract with the City of Lake Oswego. We are currently buying surplus water from this source. City of Portland - It would appear that their supply is going to be the next long term supply for the City of Tigard. We will be buying water at about the rate of .60 cents per 100 cubic feet and will be able to get all the water needed. At some point, they may have to expand their facilities which will impact the cost of water from this source as well. City of Tualatin - At the present time they have excess capacity that they will sell to the City of Tigard as long as the supply is available. This would not be a long term supply. The City of Tualatin has a power supply at the end of the Washington County supply line and they generate power to reduce the pressure, which provides them with an income. They carefully regulate this power. If they did not generate this power, they would have an even greater capacity. Beaverton/Hillsboro/Forest Grove Joint Water Commission - This source has basically said that they cannot provide the City of Tigard with water, they have only enough for their own supply. They have talked of raising the Barney Reservoir which would triple the capacity of that reservoir. This would also create the need to expand their water treatment plant at Forest Grove, and Beaverton will have to build a major transmission line extension at Forest Grove. They have also agreed to sell some of their water supply to Tualatin Valley Water District so they are in no position to provide to the City. INTERGOVERNMENTAL WATER BOARD MEETING MINUTES - JUNE 8, 1994 - PAGE 4 South Fork Water Board Supply - South Fork supplies water on this side of the Clackamas to the City of West Linn and comes down to Lake Oswego's water treatment plant which is located within the City of West Linn. Therefore they have a tie with Lake Oswego to provide a minor amount of water to West Linn so that South Fork and Lake Oswego have some emergency water supply. This is only designed to pass about 5 million gallons a day compared to the current needs of 12 million gallons a day. South Fork is also expanding their facilities and are not in a position to supply other entities. Their facility has capacity of 20 million gallons a day and are now using a peak of 14-15 million gallons daily. Tualatin Valley Water District - TVWD now has an agreement to purchase water from Hillsboro/Forest Grove, so they currently have excess water that they could sell. Bill Sheiderich stated that TVWD is currently buying 6 million gallons a day, but are not allowed to sell that to anyone. This would create an excess from the Portland supply which they could sell. This would not be another long term supply. Willamette River - This source is available to stake out a site and build a treatment plant, however, some research work being done by the Phase II study shows that this is not going to be as easy as thought. There was a request by the State, that anyone who had rights prior to 1909 needed to file for these claimed rights. At the falls near Oregon City, the industries claimed they had water rights dated prior to 1909 that would exceed the flow of the river upstream at Wilsonville. This will be a long process in evaluating these water rights issues. The flow in the river is such that it may require you to take the water from the Army Corp of Engineers dam above Salem. There was no authorization in any of these dams when they were built. These dams were originally built for flood control and irrigation uses and would require a re- authorization before approval. Also during some environmental testing they have seen some deformed fish near Newberg above Wilsonville. If water is available from another source, it would be a better option. The option of working with other entities on a joint project at Wilsonville was discussed. Wilsonville takes their water out of wells and at this time, they have a sufficient amount of water. Wilsonville does have extremely hard water. Jack Polans made the statement that there is a trailer at Wilsonville. He expressed concern with three cities having problems with buying water reasonably. Jack addressed the Chair with the question of what the chance would be of the number of water customers that the City of Tigard would need to move forward to do their own water supply? What would the cost be today or the cost 5-10 years from now? John Swartz stated that was the purpose of the study by Murray Smith was to determine what the options are. Hal Murray stated that the little plant that was viewed on the Willamette is an pilot plant operation where they are testing the treatability of the Willamette river water at Wilsonville. This INTERGOVERNMENTAL WATER BOARD MEETING MINUTES - JUNE 8, 1994 - PAGE 5 operation is being financed by the Tualatin valley Water District and the City of Portland jointly. Hal Murray stated that after all the discussion, the question remains, how is the City to make a decision? Murray Smith has listed 8 areas - which they feel are important in making the decision. Hal Murray displayed an Evaluation Criteria which was as follows: • Initial capital costs of required improvements • Estimated cost of water • Supply connections and capability of exhausting supply • Quantity of available supply • Water supply agreement and contract provisions • Water rights • Water quality and public perception • City ownership of facilities Hal Murray then discussed the following individually: What the capital costs will be of improvements to hook up to someone or to continue using water. This has a big impact in use of Lake Oswego water unless they transfer all of this capital costs to you, in the costs of water. They can change your rate per 100 cf or they could ask for a contribution of the capital costs of these improvements. Some day the City will have to improve the facilities so that the City of Portland can continue to supply water if we would continte that use. City of Portland was asked how they would handle this? Will it be in the cost of water of will they ask Tigard to contribute on a lump sum basis? The City said they would have to negotiate that at a later date. Without a fixed contract that states these terms, things could vary. The City would want to look and make sure that anyone that we would purchase water from is compatible from the standpoint of where the connection is to be made and is in the right place (right elevation, pressure) . Portland's water supply currently hooks into our system without pumping. Lake Oswego supply is currently served by a pumping station. We would also need to make sure the quantity of water that is available for the supply is adequate to meet not only today's demands but a period in the future. The water supply agreement and contract provisions is one of the most important considerations. We currently have an agreement with the City of Portland. It is a common contract to all the proveyors that buy water from them, and it has some real interesting provisions. It penalizes very strongly people for peaking. Utilizing their facilities to obtaining our peak supplies. If the City uses during a peak day in August, three times the amount of normal use, the rate the next year will go up considerably. The systems need to be operated in a manner so as to not peak, and utilize more water. The take from the systems needs to remain as constant as possible. They are able to discourage this type of usage by penalizing its users. The operator of the system needs to make sure it uses the peak supply out of reservoirs (lowers reservoirs) and does not use water directly out of the pipelines. John Swartz questioned how peaking is calculated? Mike Miller stated that we currently purchase the majority of our water' from Lake Oswego which doesn't count for the average take from the City INTERGOVERNMENTAL WATER BOARD MEETING MINUTES -JUNE 8, 1994 - PAGE 6 of Portland. The less water that is purchased makes the peaking rate higher. Ed questioned if we would agree to purchase water from the City of Portland, would we negotiate for a new annual average due to the change over from purchasing a small amount from City of Portland in the past due to a larger purchase from Lake Oswego to avoid high penalties? Is this a negotiable item with the City? Murray Smith stated that when you use a larger amount it would establish your usage for the year. It would take a full year to establish the new usage rates. Randy Volk stated that there is a 3-5 year average that you are required to meet each year. We are currently taking about 3 .8% of water usage from the City of Portland. The more water that is purchased, the more you are required to take. Bill Scheiderich questioned whether the City of Portland still required pass through conservation covenants if they mandate conservation? Smith stated they do. Randy Volk stated that City of Portland is so rigid on the 25 year contract that they are not willing to negotiate anything with anybody that would start a chain reaction and make all the other contract users start negotiating. Hal Murray stated that our current contract with Portland has some provisions that they have backed off from. Some years ago there was a provision in the contract that addressed the growth factor. If a city grew at a rate which was above a rate that was in the original agreement, they would penalize you. There are also some things that they are doing that are not in the agreement. The peaking factor is not actually spelled out in the agreement. Randy Volk stated that since they would back off on the growth factor, they would add the peaking factor. The City of Portland has an advisory group that meets, which is made up of some of the proveyors (Mike Miller is a member of this group) , and they have agreed that they will change some of these items, although they are not in writing. Smith stated that this is not an easy agreement to operate under. Once you are committed to using major portions of water from Portland, you have to continue to use those amounts. After the regional plan is completed they may make some contract changes to make Portland a more regional proveyor rather than as the contract now exists. Chair Manning questioned whether there is a possibility of Metro taking over the water supply? Murray Smith stated they did not see that happening. Murray stated that he thought we would be seeing more alliances and people joining together sub-regionally or regionally. It is there advice to stay with anyone in the Washington County area who is doing anything. Chair Manning questioned whether Mr. Murray envisioned the cost per unit to be less with the Portland water supply in regards to building new facilities, due to their larger customer base as opposed to the Lake INTERGOVERNMENTAL WATER BOARD MEETING MINUTES - JUNE 8, 1994 - PAGE 7 Oswego system? Mr. Murray stated that the larger the system or the bigger the pool, the less per unit cost would be. Chair Manning questioned whether Portland is anticipating any large capital improvement projects? Portland is not anticipating anything unless they build the third dam on the Bull Run River which is part of the plan being considered in the Phase II Regional Water Study. There are six water sources being looked at in the Regional Study, the third dam on Bull Run, treatment plant in Willamette, a treatment plant on Columbia River maybe even a combination, Hillsboro/Forest Grove raising of Barney Reservoir, use of wells (recharged) aquifer storage and recovery systems, and the Clackamas River being expanded. Murray stated that in regards to contracts: • City of Lake Oswego, we would need to start over. • City of Portland if narrowing it down to these two options, we would be stuck for another 10 years unless they would choose to negotiate there agreement. Water rights - The City eventually has none. The only thing to look at their is the entities that we are dealing with have those rights and do they have the rights to supply both themselves as well as other entities. Portland has the rights to all of Bull Run, so that would not be a concern. Bill Scheiderich questioned if water rights pertained only to surface water? Mr. Murray stated that is correct and they also have the rights to the wells. Bill Scheiderich questioned the wells owned by this district? Mike Miller stated that the City's water rights were wells, which did not produce that amount. Bill questioned to what extent we are drawing on those wells? Mike stated that we only draw on two of those wells during the summer months. Lynda questioned what kind of water rights does Portland have in relationship to the Clackamas River? Mr. Murray stated they have none on the Clackamas. There are four entities that have water rights on the Clackamas; South Fork Water Board, Clackamas Water District, City of Gladstone (although they are currently using water from the Clackamas Water District) , City of Lake Oswego, and Oak Lodge Water District (which is considering building a separate treatment plant using Clackamas River water) . Oak Lodge are currently being supplied water through Clackamas Water District, but are considering using their own water rights to build plant. Lynda questioned why all these different jurisdictions with water rights in such close proximity are not working together? Mr. Murray stated that it is difficult for all these jurisdictions to get together with timing, financing, political feelings. Discussed water quality and the public perception of the quality is actually at times more important. Lastly, Mr. Murray discussed whether the City has a possibility of ownership in any of these systems (Lake Oswego or Portland)? At this time, he does not see any ownership, unless Lake Oswego offers that, he does not foresee Portland offering that. George Morgan questioned inter-tie agreements and emergency standby _ agreements to ensure reliability? Mr. Murray stated that you would want to maintain all the inter-ties that you can. INTERGOVERNMENTAL WATER BOARD MEETING MINUTES - JUNE 8, 1994 - PAGE 8 Agreement with Portland would allow for emergency situations are would it contribute to the peak water usage? Volk stated that Portland is good about providing water during an emergency situations. Chair Manning stated that in the Intergovernment Emergency Agreement are there overrides in the event of a natural disaster? Is that an automatic agreement between entities? Volk stated that in the past although there is nothing in writing, different entities have joined together to help out others in need. Mr. Murray stated that there is wording in the contract with Portland that allows for emergency use. George Morgan questioned a formalization of those emergency procedures? Mr. Murray stated that it is a good idea to have formal agreements. Mr. Murray did state that they have helped the City of Lake Oswego and South Fork and it is much more complex than most would be. Chair Manning thanked Murray Smith for the presentation. Manning stated that at this point we are at an interim report waiting for the information from Lake Oswego. She questioned whether Murray Smith had a time frame for obtaining this information? Mr. Smith stated that as soon as they obtain that information they will draft a report and provide that to the Board for their review. Chair Manning suggested that Murray Smith keep Ed Wegner or Randy Volk updated on that information. Chair Manning stated that the Board would take a short break. Upon returning, John Swartz introduced Bob Rolf who is a new City Councilor. Chair Manning asked the Board for agreement on discussion of the draft bylaws being held over to the next meeting. All Board members agreed. 6. Director's Report Water Budget Update Ed Wegner stated that if anyone had any questions regarding the audit report those could be directed to Mary Gruss from the Finance Division. George Morgan questioned whether there were any areas of the audit that surprised the Finance Department. Mary stated there were not any areas of concern. Mary did state if the Board would like to have the auditors come and make a presentation to the Board that could be arranged. Chair Manning stated that the Board did not see the need for such a presentation. Ed Wegner stated that the proposed 1994/95 budget was submitted to the Budget Committee as viewed by the Board and to his knowledge was passed onto City council for approval on June 28th. Ed Wegner discussed the monthly report for the month of May that was left for each Board member to review. Ed stated that the work during the month of May went very smoothly and the Water Division was able to begin some maintenance work that had not been started. One realization was that the grounds maintenance was turned over to the Parks Crew and that due to some internal communication difficulties, the service levels would need to get back on track. INTERGOVERNMENTAL WATER BOARD MEETING MINUTES - JUNE 8, 1994 - PAGE 9 Chair Manning stated that the grounds around the Water Building are looking very nice. Randy stated that the thanks should go to the Park Crew. The classification reviews which were part of the transition and the merger process have been completed. The employees have meet with the consultant and job descriptions have been drafted and will be presented to the Personnel Director the first part of next week. July 1 is the target date for the combined sewer and water billing for the City of Tigard residents who are within the water department service area. George Morgan questioned going from 2.8%, 4%, 6. 6% water loss? Has anything unusual happened to contribute to that degree of increase? Mike Miller stated that the Water Division is into the season where people use more water and it is really hard to get clear picture of how much was purchased but not billed during that period? George Morgan questioned if this is due to a high consumption month versus a lower consumption month? Bill Scheiderich asked what control there is regarding builders tapping into hydrants? Randy stated that they have a fairly good control on water theft through fire hydrants. Sam Morrison the Inspector is constantly checking on the 10 fire hydrants meters that are issued to builders. Ed Wegner stated that construction began on Monday on the North Dakota Street project. 7. Non Agenda Items. Hearing none, Chair Manning went on to the next agenda item. 8. Set Next Meeting Agenda The draft bylaws were set for the next agenda. George Morgan questioned if the next meeting would be the first meeting in July? Chair Manning stated that meeting would be scheduled for July 6 , 1994 at 5:30. Pat Reilly stated that if Murray Smith had any updated information that could also be added to the next agenda. Pat Reilly stated that in the Intergovernmental Agreement there is annual meeting of all the various entities and perhaps that meeting could be billed around the tentative adoption of the budget, as well as an overview of where the Murray Smith report is. Chair Manning also wanted to thank George Morgan for the letter that the Board received regarding budget concerns. Ed Wegner stated that on the back of the billing statements are the dates of various meetings. We are in the process of ordering new billing statements and would like to include that meeting date on the new forms. Lynda Jenkins stated that the second Wednesday would be July 13th instead of July 6th. INTERGOVERNMENTAL WATER BOARD MEETING MINUTES - JUNE 8, 1994 - PAGE 10 Chair Manning stated that since we were nearing the completion of the Murray Smith report we would need to meet twice a month. The Board decided to have listed on the billings that the regular meeting would be on the second Wednesday of the month and if there were additional meetings scheduled, they would be noticed. 9. Motion to Adjourn George Morgan made a motion to adjourn and it was seconded by Bill Scheiderich. kathy\iwb\iwb6-8.min INTERGOVERNMENTAL WATER BOARD MEETING MINUTES -JUNE 8, 1994 - PAGE 11