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11/19/2002 - Minutes Intergovernmental Water Board Meeting Minutes November 19, 2002 Members Present. Jan Drangsholt, Norm Penner, Brian Moore, Patrick Carroll, and Bill Scheiderich Staff Present: Ed Wegner, Dennis Koellermeier, Twila Willson, and Sally Mills Visitors: Paul Owen and Roel Lundquist 1. Call to Order, Roll Call and Introductions Commissioner Patrick Carroll called the meeting to order at 5:30 p.m. Commissioner Bill Scheiderich arrived late (at 5:52 p.m.). 2. Approval of Minutes—August 14, 2002 and October 15, 2002 Commissioner Jan Drangsholt motioned to accept the August 14, and October 15, 2002, minutes and Commissioner Norm Penner seconded the motion. The vote was unanimous to accept both sets of minutes. Ed Wegner introduced Twila Willson and announced that due to recent reorganization within the Public Works organization, she would be taking over the responsibilities of the full-time recording secretary for the Intergovernmental Water Board. 3. Assistant PW Director's Utility Report— Dennis Koellermeier ASR— Favorable news and results are still being received on the ASR project. A preliminary review was received from the consultant at the end of the withdrawal period and all indications appear favorable, but the draft report will not be received until sometime in mid-December. About a month will be taken to review the report before forwarding it to the Water Resources Department. The second injection period will probably start in December. The injection capacity is somewhere between 675—850 gpm, with the withdrawal certification at 1,000 gpm. A second well at the same site will be recommended in the report. The water quality issues have been good and all regulated contaminants were well below or non-detectable on all standards. A flavor panel was being conducted in the Clackamas River Water District for their ASR project and we submitted some of our water for the testing. The water from Tigard's ASR well outranked all other water being tested by their panel. The next well site has not yet been specifically pinpointed, but will probably be at least 100 ft. away from the existing well. The report will include a model update. The tentative plan for a $3,000,000 investment for 8-10 wells would have a payback in less than 10 years. Intergovernmental Water Board 1 November 19,2002 DRAFT COPY Rate Study—A rate study process is being embarked upon to put together the background and information for foundation data for upcoming revenue bond sales for the anticipated Bull Mountain projects. The selection process concluded with the selection of FCSG and Gollardi. Tomorrow's kick off meeting will include new CIP updates and a SDC review. The work on this study will take place within the next 60-90 days. Rider School/Reservoir Project—The management of this project will be divided into three projects in order to be most economical. The RFP process will begin this month and the primary engineering team should be in place to start by February. The land use process will be coordinated with the school district's land use process. Commissioner Patrick Carroll asked if problems were anticipated with the land use issue and Mr. Koellermeier stated everything looked pretty straight-forward. The permit would be obtained from the City of Tigard as a co-application process with the school district. 4. Informational Items— Ed Wegner Informational items were distributed and briefly reviewed with the board members by Ed Wegner and points of information and discussion included the following points: • The City of Portland's request to the EPA to waive any or all treatment standards for the Bull Run. • Treatment plant idea will be put on hold for several months while Portland and suburbs come to an agreement or scale back the treatment facility and add capacity to the system. • Letter signed by Oregon's three congressional delegates requesting funding to be restored to help with water study. • Portland Utility Review Board had three members quit, they do not have a quorum, and meetings have been suspended. • Newsletter from the City of Portland shows water usage and wholesaler's information. • Commissioner Dan Saltzman is in charge of Portland's Water Bureau • Sten and Saltzman in favor of the regional agency, Franconi and Mayor Katz skeptical and undecided, Randy Leonard won the Portland election and he opposes the Bull Run agency. • Votes are needed for Portland to pursue regional agency. • Portland just realizing the financial impact of losing revenue from water funds to their general fund. Totals are greater than they thought. • Mayer Katz turned it over to Office of Management and Finance (OM&F) to review impacts. They are currently examining the PGE/PUD concept and may put the water issues off for several months. • Elected members of neighboring agencies gave Portland the strong message that both issues needed to be handled on a parallel track and negotiations needed to continue. • The 'critical mass' (the 12-13 original interested agencies) need to show they are willing to negotiate and show a sign of force to continue or the dilemma will continue. • Commissioner Saltzman wants to bring a Resolution before Portland Council in December. • The buy-in price is a key issue and the larger the amount, the longer the payback time. Intergovernmental Water Board 2 November 19,2002 DRAFT COPY • Tigard's financial advisors are investigating and studying our negotiating points and what our top dollar buy-in could be. • Portland's Council tone and election results created discouragement with the other agencies interested in pursuing the regional concept. • Portland will not have to make a Charter change. • The anticipated February negotiating timeline will be pushed back several months until the bottom line from Portland is decided on. • Tonight's Council presentation meeting will proceed as though we are moving ahead on track with the next phase of decisions. • All suburb agencies proceeding and putting pressure on Portland to make a decision. • Mayor Katz has concerns and is worried about the loss to general funds and how Portland will replace those funds. • Portland's Capital Improvement Program needs $400,000,000 for distribution improvements, and could have that off-set substantially if suburbs agree to buy-in at $300,000,000. • Portland cannot afford to lose the amount of money they receive from the sale of water to the wholesale buyers, yet many of those buyers are looking elsewhere to meet their water needs. Losing those buyers would impact Portland financially. • If the Bureau of Reclamation comes through with the funding to complete the feasibility study and biological assessments, the Scoggins Dam raise could become a reality. It is along 10-12 year process. Funds were lost with September 11th. • Wholesale contract negotiations are in limbo. 5. Public Comments- None 6. Non Agenda Items 7. Adjournment Commissioner Drangsholt motioned to adjourn the meeting and Patrick Carroll seconded the motion. All board members voted in favor of adjournment and the meeting adjourned at 6:17 p.m. Intergovernmental Water Board 3 November 19,2002 DRAFT COPY