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05/08/2002 - Packet
File Copy Intergovernmental Water Boara ineewig Serving Tigard, King City, Durham and Unincorporated Area Wednesday, May 8, 2002 5:30 p.m. 1. Call to Order/Roll Call and Introductions Motion to call meeting to order, staff to take roll call. 2. Approval of Minutes—April 10, 2002 Motion from Board for minute approval. 3. Aquifer Storage and Recovery-Montgomery Watson Harza/Dennis Koellermeier(30 minutes) 4. Long Term Water Update—Ed Wegner(10 minutes) a. Joint Water Commission b. Regional Drinking Water Supply 5. Discuss Citizen Involvement Process for Long Term Water(1 S minutes) 6. Assistant PW Director's Utility Report—Dennis Koellermeier(5 minutes) a. Beaverton Intertie 7. Proposed Water Rate Adjustment.Multi-Year Approach -Dennis Koellermeier(1 S minutes) 8. Informational Items Items will be discussed briefly if time allows—otherwise printed info will be distributed. 9. Public Comments Call for any comments from public. 10. Non Agenda Items Call for non-agenda items from Board. Next meeting date June 12, 2002, at Water Auditorium. 11. Adjournment—Approximate time 7.00 p.m. Motion for adjournment. Executive Session: The Intergovernmental Water Board may go into Executive Session under the provisions of ORS 192.660(1)(d), (e), 69&(h)to discuss labor relations, real property transactions, current and pending litigation issues and to consider records that are exempt by law from public inspection. All discussions within this session are confidential; therefore nothing from this meeting maybe disclosed by those present. Representatives of the news media are allowed to attend this session, but must not disclose any information discussed during this session. Intergovernmental Water Board Meeting Minutes April 10, 2002 Members Present: Patrick Carroll, Jan Drangsholt, Norm Penner and Joyce Patton (Bill Scheiderich arrived late) Staff Present: Ed Wegner, Dennis Koellermeier, Kathy Kaatz and Richard Sattler Visitors: Paul Owen and Roel Lundquist 1. Call to Order, Roll Call and Introductions Staff called roll and Bill Scheiderich was not present at the beginning of the meeting. 2. Approval of Minutes— March 13, 2002 Commissioner Jan Drangsholt motioned to accept the minutes of the meeting held on March 13, 2002, and Commissioner Norm Penner seconded the motion. All board members in attendance voted to accept the minutes. 3. Water Adjustment Request— Monica Skee Monica Skee was not in attendance. Mr. Wegner explained that this adjustment request was quite unique from previous requests. Rich Sattler had been working with Monica Skee on the issue. He proceeded to explain the situation and that current policy related to credit for leaks and this particular situation (customer believes possible inaccurate billing) did not fall under that category. Of the eleven meters at the Beef Bend Court Apartments, three have unusually high readings. The City had one of those meters tested at an off- site shop for accuracy and it was determined that the meter operated within specifications and the readings were correct. Monica Skee, nonetheless, would like a credit. The irrigation system at the complex had not been checked and it appeared that the consumption was higher during the high temperature summer periods, which could account for the water usage. Intergovernmental Water Board 1 April 10,2002 DRAFT COPY Several questions arose as to how the meters were read. Dennis Koellermeier explained that the meters have the capability of being read by remote and manually. Metron service representatives have been working on the remote reading problems on several meters in the area in addition to those in question. However, during this whole process the meter readers were using the manual method of reading the meters. No leaks have been discovered to cause the increased usage and the meter that was tested was within specifications that have been set by the AWWA (American Water Works Association). Accuracy must fall between 98 - 102%. The apartment complexes are located on a hilly slope that has a lot of grassy areas and common areas between the apartment buildings. The landscaping is thriving and very green in all areas of the complex. Further discussion followed about the request for adjustment and how to respond to the request. Commissioner Joyce Patton summarized the letter from Monica Skee by saying Monica seemed frustrated and thought she had been given the run around, which appeared to be partly because she did not understand what had transpired. Commissioner Patton wanted to make sure that the written response was accurate in explaining the details and assure Monica that monitoring of the Metron meters would continue. There is no evidence at that time that the problem was on the water system side. This was the approved consensus of opinion by the members of the Board of Commissioners. 4. Long Term Water Update— Ed Wegner Joint Water Commission — Handouts were distributed. Integrated Water Resources Management Water Supply Feasibility Study, Project Progress Report -The Hagg Lake project source options and alternatives have been looked at. The report also included Frequently Asked Questions about the feasibility study. The Bureau of Reclamation has started their project. Montgomery Watson Harza (consultants)will soon begin the field operations portion of the investigation and will look at the impact that raising the dam will have on the property surrounding Hagg Lake. Proposed Bull Run Regional Drinking Water Agency— Consultants have been hired through the Sunrise Water Authority and the team consists of Murray Smith and Associates, Integrated Utilities Group, and CH2M Hill. They are establishing their work plan for Phase II and setting up four more work groups: • Governance and Legal Team — comprised of several attorneys, including Bill Scheiderich who will be representing Beaverton Intergovernmental Water Board 2 April 10,2002 DRAFT COPY • Engineering Group— Dennis Koellermeier will work with this group • Public Involvement Group —their focus would be on public involvement and continued communication with the public • Finance Committee Group — comprised of several finance directors from various agencies The Technical Advisory Group meets every Monday afternoon and the Policy Steering Committee meets on the fourth Thursday of each month. Mr. Wegner provided copies of the slide presentation that the Finance Committee made to the Technical Advisory Committee and referred to slide #37 about user groups. The user group concept shows how the costs are broken down, where water is taken from and a back up water system source. The Finance Committee will continue to use these types of breakdowns to place a value and percentage on water amounts, storage, transmission and conduits, etc. Specific questions for each work group have been compiled with guiding principles. The Policy Steering Committee will also add questions on various issues for the work groups to handle and all the information will be pulled together in August. 5. Utility Manager Report— Dennis Koellermeier ASR—Water injection has continued until today when the injection was shut down due to a water quality incident. A meeting was scheduled with the engineers to decide on an action plan. It has been necessary to back-flush two times previously to resolve the problem and that is probably what will be done this time as well. Currently, over 50 mg of water has been injected in storage and positive results have been observed in the monitoring wells. There have been no reports of flooding, springs, or similar complaints and the aquifer has responded the way it was supposed to. Water quality incidents have occurred with sediment build-ups for short periods of time. There have, however, been no complaints from any water users. Microscopic and biological review of the materials indicated that it was the same type of materials found in surface run off from the Bull Run System. A partial recovery will remedy the situation by back-flushing, but an iron-fixing bacteria, (common in water systems) has also concentrated in this well and has plugged up the holes on the basalt. It had not been determined if the situation was bad enough to treat at this time. These incidents have been a frustration, but have not been a control system issue. Beaverton Intertie — Bids are expected back the end of the month. The engineer's estimate has climbed a little higher than expected, but it is anticipated that the bids will be favorable. Intergovernmental Water Board 3 April 10,2002 DRAFT COPY Gaarde Street Project —The project was completed without any problems and was on or under budget. Clute Property Sale —A memo from the City Attorney was received today with several recommendations. Dom Colletta recommends that the year-old appraisal should be freshened up, but other than that he thought Tigard's property disposal ordinances and procedures were very straightforward. The consensus was to go back to the same people that did the appraisal before, which would be faster as well as less expensive. Ed Wegner requested more information on Item #4 dealing with the Proposed Regional Drinking Water Supply Agency. He requested information from the IWB as to how they wanted hearings, forums or public meetings on the proposed Bull Run Agency handled and whether they wanted them held with the IWB or the Tigard City Council. He requested that board members think about the issue, be prepared to discuss it and give recommendations at the meeting in May. 6. FY 02/03 Budget Review— Ed Wegner/Dennis Koellermeier The time has come to submit the annual budget to the City Manager and Budget Committee. Tentative approval has been received from the City Manager. Budget Committee meetings will be held the first three Mondays in May and City ordinances will be reviewed in June. The first few pages of the draft document covered program results, goals and objectives, major accomplishments and workload measures. Dennis Koellermeier proceeded to discuss the various budget items. Materials and Services —This was where the main costs were located because of some increases in prices for services, but largely in increases in the amount of water purchases. • Capital Outlay—The bulk of this category was budgeted for two vehicles, one of which would be a 10-yard dump truck priced at about $140,000 -$150,000. To avoid some of the impact of this expense and working with the Finance Department, an equipment reserve fund would be created to spread the costs over multiple years. Ed Wegner explained that the City required three budgets this year, which was a change from past year's budgets. Current Service Level budget—increase no more than 3% or keep lower 5% Reduction budget Add Package budget Commissioner Jan Drangsholt requested clarification about the large increase in the office supplies category. Dennis Koellermeier explained that this amount was Intergovernmental Water Board 4 April 10,2002 DRAFT COPY set aside for office furniture in the map room area. Commissioner Patton explained that it might not be looked at as a capital outlay and would need to be in this expense category. Commissioner Carroll requested clarification in the information about the FTE (full time employee) increase of 40%. It was explained that manager support has changed over the past few years, with salaries being spread throughout multiple divisions, as well as reorganization that created supervisory positions and an increase in Water Quality personnel and, therefore, an increase in salaries. Overtime charges have improved by establishing shift change adjustments. • Capital Projects —The City's Scada System currently uses outdated technology that cannot be supported. 7. Pressure Reducing Valves— Proposed Ordinance Revision— Dennis Koellermeier Beverly Froude has requested that this policy shift be presented to the Tigard Water District before the Intergovernmental Water Board made their recommendations. Mr. Koellermeier gave an overview of the proposal explaining that it was unknown where all the pressure reducing valves (PRV) were located and, therefore, they were unsure exactly what areas were affected. His recommendation was that time needed to be put into the change if it is accepted. Issues include: • Philosophical —equity issue, about half the customers with the need for this service and 100% of the customers paying for it. • Financial - $25,000 per year dealing with PRV issues and affects the overtime budget. How other agencies deal with this issue was enlightening. The pattern indicates that the agencies that provided this service were water districts and those that did not were cities. Cities have both water delivery systems and plumbing departments with staff that work together and understand that the responsibility is on the part of the plumbing code, not the water purveyor. Mr. Koellermeier recommended that the change be made and stated that two issues needed to be dealt with. 1. When new houses are being built that require a PRV, the solution would be easy, by requiring the builder to handle it. 2. Set a timetable of one year for existing PRV's and then place the responsibility on the homeowner. Intergovernmental Water Board 5 April 10,2002 DRAFT COPY Discussion included the following comments: • Eliminating the service would cause ill will and concerns from citizens when rates are increasing and services decreasing. • Have the City provide the service, but charge homeowners for it. • An education of citizens needed to be part of the process. • Problems and concerns arise with employees entering houses without someone else there and accusations by citizens often occur. Changes with rules and regulations would be needed about after-hour's turn on's/shut off's. • Leave it to the homebuilder for new installations. • It's the City's responsibility to deliver adequate pressure and flow and they should maintain the PRV's. A decision on the issue was deferred until this issue could be presented to the Tigard Water District. 8. Informational Items Informational items were distributed for review by the Board Members. 9. Public Comments - None 10. Non-Agenda Items The City of Wilsonville will be drinking water from the Willamette River on the 29th of this month. Commissioner Penner wondered why the Citizen's for Safe Water representatives had been so silent about putting a treatment facility in the Portland system. Mr. Wegner said there had been two public hearings where their voice could be heard. Commissioner Scheiderich suggested that samples be tested of the water from the Wilsonville treatment plant. 11. Adjournment Commissioner Carroll motioned to adjourn the IWB meeting and Commissioner Drangsholt seconded the motion. All voted in favor of adjournment. Intergovernmental Water Board 6 April 10,2002 DRAFT COPY 7 75 jolt - ♦ C0 TL.AtVO Erik Sten, Commissioner o� °a CITY OF Morteza Anoushiravani, Interim Administrator 1120 S.W. 5th Avenue 0 _ x PORTLAND OREGON Portland, Oregon 97204 Information(503)823-7404 Fax(503)823-6133 ,est BUREAU OF WATER WORKS TDD (503)823-6868 April 17, 2002 Tom VanderPlaat 155 N First Avenue, Suite 270 Hillsboro, Oregon 97214 RE: Request for Information Tualatin Basin Water Supply Feasibility Study Dear Tom: This letter is in response to your request for information about the Portland Water System's current and future peak season water supply available to westside water users. We understand that Clean Water Services is leading a Water Supply Feasibility Study to evaluate the long-term water supply needs and supply strategies for the Tualatin Basin. One of the supply options being evaluated is obtaining water from the Portland system. In order to evaluate this option, information is being requested regarding the Portland's current and future peak season water supply, specifically what the current reliable peak season water supply available from the City to its westside customers is and how much additional peak season water supply could be provided with the addition of new water supply facilities. To provide answers to these questions, a few assumptions are needed: • The Bureau's Supply and Transmission Model (STM) is being used to generate information on the available water supply from the Portland system. • 95% exceedance is assumed as the "reliable" peak season water supply available. In other words, this is the peak season water supply amount available for 95% of the climatic years based on the past 60 years of Bull Run watershed hydrology. • Peak season demands are forecasted for the Portland system and its customers using the Bureau's STM model. Demand forecasts are developed from the Bureau's Infrastructure Master Plan completed in 2000. The RWSP is updating these demands and can be incorporated when available. The combination of westside customer demands and the surplus or remaining supply after Portland system demands are met is assumed to be the total supply that could be made available to the westside users. • Peak season is defined in two manners. The Portland system supply is most constrained during the period when watershed stream flows are low and storage must be drawn to meet system demands. The start, end and length of this period varies from year to year. Historically, the drawdown period has ranged from 25 to 162 days and can extend through An Equal Opportunity Employer f April 17, 2002 �- Tom VanderPlaat Page 2 November. The Water Supply Feasibility Study defines a fixed 180-day peak season from May 1 to November 1. The implication is that water supply from the Portland system is more limited over its storage drawdown period. However, the Portland drawdown period is about 150 days (at 95% exceedance), or about 30 days less than the 180-day peak period between May 1 to November 1. • Supply facilities proposed to be expanded includes filtration, expected to be completed by 2010, enabling more water to be drawn for Bull Run reservoirs. Additional supply is also assumed in 2020 by an expansion or raise of Dam No. 2. Each of these expansions are assumed to add about 2.4 billion gallons of storage. Both of these supply expansions are considered to have a high degree of success(feasibility, permitable and constructable). • Current transmission facilities to the westside users are: WCSL 60 mgd capacity (TVWD, Tualatin, Raleigh connections) Bradley Corners 10 mgd capacity (Tigard connection) Arlington Heights 15 mgd capacity (Westslope, TVWD connections) Total 85 mgd capacity Table 1, which is attached, provides the results. Existing Supply Facilities Portland drawdown Period An average supply up to about 70 mgd can be made available to westside users during the Portland drawdown periods. This results in about 20 mgd more than current consumption, but reduces to 10 mgd above forecasted demands by 2010 and no added supply above forecasted demands by 2020 as system demands grow. May 1 and November 1 Peak Season Period Over the 180-day peak season period identified in the Feasibility Study, up to 100 mgd can be made available to westside users. This results in approximately 60 mgd more than current consumption. This added available supply above forecasted demand reduces to about 50 mgd by 2010 and 40 mgd by 2020 as system demands grow. The existing transmission capacity of about 85 mgd could be adequate for the Portland drawdown period but is not adequate to fully utilize available supply over the 180-day peak period. Expanding Portland Supply Facilities (Bull Run filtration in 2010 and Dam 2 raise in 2020) Portland Drawdown Period An average supply up to about 70 mgd could be made available to westside users at the present time and up to 85 mgd by 2010 and 100 mgd by 2020. This is about 20 mgd more than current consumption and about 30 mgd above 2010, 2020 and 2040 forecasted demands. May 1 and November 1 Peak Season Period. During the 180-day peak season period an average supply up to 100 mgd could be made available including current consumption. By expanding supply facilities, up to 110 mgd could be available by 2010 and 120 mgd 2020. This is about 60 mgd above current and forecasted demands over the next 40 years. April 17, 2002 Tom VanderPlaat Page 3 Transmission. Current transmission capacity of about 85 mgd will be inadequate to fully utilize the added supply available from these supply expansions. Up to 15 mgd of additional transmission capacity will be needed over the Portland drawdown period. Up to 35 mgd will be needed to fully utilize available supply over the 180-day peak season. The costs of improvements will need to be prorated based on supply capacity utilized and benefits derived. Supply and Transmission Improvements and Estimated Costs I boo Bull Run Filtration Plant (250 mgd) $200,000, Dam 2 Raise/Expansion $ 20,000, Expanded Burlingame system 20-25 mgd $ 25,000, (Willamette River to Wash. Square) Dam No. 3 Supply Expansion The construction of a third dam in the Bull Run watershed is expected to provide approximately 19 billion gallons of additional water supply. The added supply provided by this project is expected to replace a portion or all of groundwater use. Some supply may also be required to supplement instream flows for environmental and ESA mitigation. The feasibility and likelihood of permitting the project has not yet been determined. For this work, it is 'assumed that the project would provide approximately 10 billion gallons above the existing Bull Run and groundwater supply. The key improvements and preliminary costs are noted below, based on the Transmission Reliability Study prepared for the Regional Water Suppliers Consortium. The costs of improvements will need to be prorated based on supply capacity utilized and benefits derived. Supply and Transmission Improvements and Estimated Costs Dam No. 3 construction $210,000)VV'o Bull Run Filtration Plant(250 mgd) $200,000, 600 Conduit No. 5 (250 mgd) $166,000,600 Southern Pipeline(through Clackamas Co.) $103,000 000 Powell Butte Terminal Reservoir No. 3 45,000, 000 Total $725,000,,&00 Please contact me if you have any questions or I can provide further clarifications. Sincerely, Dennis Kessler, P.E. Principal Engineer Attachments Table 1 Westside Supply Forecast BWW Drawdown Period Mav 1 - Nov 1 Peak Season Period 2001 Consumption Forecasted Demand (mgd) 1 onsumption Forecasted Demand (mgd) Service Area (mgd) 2010 2020 2040 m d 2010 2020 2040 Portland+Eastside 120.9 123.1 120.0 105.2 107.1 104.4 TVWD 32.6 37.8 47.1 47.2 28.7 30.8 39.3 39.9 Tualatin 6.1 5.3 5.9 5.8 5.3 4.9 5.5 5.5 Raleigh 0.9 0.9 0.9 0.9 0.8 0.8 0.9 0.9 Sherwood 0 3.2 4.7 5.2 0 3.0 4.4 4.9 Total WCSL 39.6 47.2 58.6 59.1 34.8 39.5 50.1 51.2 Bradley Corners 6.8 10.3 11.1 11.3 5.9 9.5 10.3 10.6 Arlington Heights 2.3 2.7 2.7 2.6 1.9 2.6 2.6 2.5 TOTAL WESTSIDE DEMAND 48.7 60.2 72.4 73 42.6 51.6 63 64.3 -A Remaining Supply w/currentacilities: 24.0 12.0 0.0 0.0 61.0 51.0 37.0 37.0 Available to Westside: 72.7 72.2 72.4 73.0 103.6 102.6 100.0 101.3 Remaining Supply w/expanded supply facilities: 24.0 27.0 30.0 31.0 61.. 61.7 110.. 61.2 120.. 61.0 Available to Westside: 72.7 84.7 98.4 99.5 103. 3 121.0 Assumptions: 1. Forecasted demands include current service area including Tigard and Sherwood. 2. Demand forecasts based on BWW Infrastructure Master Plan (October 2000). 3. Full RWSP conservation assumed after 2000. 4. Fish flow releases: 65 mgd from Jan 1 -Jun 15 and 20 mgd from Jun 16 - Dec 31. 5. Current supply facilities include 10.2 BG Bull Run storage, streamflows, and CSS Wellfield (10 BG). 6. Expanded supply facilities assume Bull Run Treatment in 2010 and dam raise in 2020. 7. Current westside transmission capacity is 85 mgd: WCSL(60 mgd) + Tigard connection (10 mgd) + Arlington Heights system (15 mgd). Deliverable Rate Portland Supply Capacity During Drawdown Average Flow During Drawdown (fish requirements accounted for) (mgd) 500.0 500.0 Bull Run Watershed 450.0 (inflows+ storage [10.2 BG]) 450.0 Bull Run + CSSW (95 mgd) 3Bull Run + CSSW 400.0 400.0 +Treatment(2.4 BG) + Dam Raise (2.4 BG) 350.0 1 350.0 300.0 © 300.0 m 250.0 250.0 Conduit Capacity-210 200.0 200.0 150.0 150.0 100.0 100.0 50.0 50.0 0.0 0.0 0 10 20 30 40 50 60 70 80 90 100 Exceedance (%) WATER SUPPLY FEASIBILITY STUDY WATER MANAGERS GROUP PROJECT STATUS SUMMARY April 17,2002 Project update for the period March 20 -April 17: Hydrology: Task objective: Build a model of existing hydrologic conditions in the watershed Simulate the impacts of project alternatives on flows, for a dam raise at 20 and 40 feet and the Willamette Exchange Pipeline. This month: • Initial meeting with CWS. • Identified what data we need,what time periods and locations. • "Existing conditions" will include JWC water and 15,000 AF of "new" CWS supply going through a simulated raw water pipeline. • Begin data collection. Contact with USGS,CWS,TVD, Watermaster,BOR Field Studies: Task objective: Evaluate the impacts of project alternatives on wetlands, plants,wildlife, fish and T&E species. This month: • MWH coordination with subconsultants,URS and CH2M • Begin creating base maps using aerial photos, topo and GIS data. • Develop detailed field plans and assign personnel • Based on dam impact area defined by BOR, begin field studies the week of May 6. Meeting to define impact area with BOR scheduled for April 22. Engineering: Task objective: Evaluate the technical feasibility and costs of project alternatives. MWH will provide support to the BOR for dam raise alternatives, and will conduct the Willamette Exchange Pipeline evaluation. This month: • Collect mapping info for Yamhill County • Begin alternative alignments and pipeline profiles • Support CWS and BOR for dam studies Integrated Water Resources Management Water Supply Feasibility Study Project Progress Report- April 17, 2002 These are the project elements completed since the last report of Water Manager Group meeting of March 20,2002. 1. Feasibility Study Project Review ■ Over the last month, the primary focus areas have been finalizing the sources options and development of the field study work areas. The source options will be presented today. For the field study work, the impact areas are being identified thereby narrowing the areas for collection of information on the hydrologic, cultural,physical and biological elements. ■ Joe Thompson, City of Hillsboro Water Department, and I met with MWH staff to discuss the elements of the Sain Creek Tunnel. The estimated tunnel length is 2-3 miles from Upper Tualatin River near Lee Falls to Sain Creek. There are apparently two types of tunnel construction methods—drill and blast and open faced tunneling machine. The preliminary estimate for the tunnel is$7-10 million depending on the method selected. MWH is developing a scope and budget for this element. Initially the hydrologic analysis for the flood control element will be studied and presented to the Water Managers Group in May. The information will assist in determining the potential benefits of the refilling of the raised Scoggins Dam and flood control of the main Tualatin River. A Feasibility Study Update was presented to the Joint Water Commission at their April 12 meeting. ■ The Study Questions and Answers have been finalized and will be distributed as requested and be available on Clean Water Services website (www.cleanwaterservices.org). This Q&A will be used as a tool for communicating the issues with the public. ■ We are approximately one month behind the original Project Schedule,however, the fieldwork will be started soon and been good progress,on many of the project tasks. For only the MWH portion of the Study,we have been invoiced for 8 % ($53,600)with 11%percent project completion. For the May meeting will be a budget forecast for the next fiscal year. Progress Report 1 CRITERIA FOR THE FORMATION OF A BULL RUN REGIONAL DRINKING WATER AGENCY Approved by the Policy Steering Committee April 25, 2002 In Phase I of this study(May-December 2001), there were 17 suggested criteria to take into consideration in studying the creation of a regional drinking water agency. Those criteria can be found in the Phase I report titled "Progress Report Regional Drinking Water Supply Initiative, December 12, 2001. (This report can be found on the Portland Water Bureau's web site at www.water.ci.portland.or.us then click on"What's New".) In this current phase of study and development(February-September, 2002) the Technical Advisory Committee reviewed those 17 criteria and suggested the elimination of one and modifications to others. The draft criteria were then recommended to the Policy Steering Committee to be used when reviewing and weighing governance and financial options that will be developed as part of this phase. The Steering Committee review and discussed these criteria, took public input and approved the criteria at their meeting on April 25, 2002. The criteria are as follows: 1. The proposed Bull Run Regional Drinking Water Agency will have responsibility to provide Bull Run and Columbia South Shore Wellfield water to its members in the amount requested. Others may join the agency after the implementation plan is complete. 2. The proposed Bull Run Regional Drinking Water Agency will develop and protect the Bull Run and Columbia South Shore Wellfield. 3. The proposed Bull Run Regional Drinking Water Agency will have a reliable supply of water to meet current and future needs,with backup supplies to meet seasonal and/or emergency needs. 4. The proposed Bull Run Regional Drinking Water Agency will plan for and build capital improvements to meet the amount of supply and transmission needs of its members as requested. 5. The proposed Bull run Regional Drinking Water Agency will be responsible for meeting all applicable State and Federal laws weAef qoa.14y of deliver-5,to its member-s. R46t@- The S✓th e-itefia listed iii-the Deeefnbei12,z 2 —1.,--tsfess RepeA has been del Regieiial Dr-iiikiiig Watef Supply it-A-4 41- T)_ 6. The proposed Bull Run Regional Drinking Water Agency may contract for the sale of water to non-member agencies. 02 1 Adopted by PSC on 4/25/2002 7. The proposed Bull Run Regional Drinking Water Agency will have the authority to provide any water related services, including ptiitg distribution as requested by an individual member and approved by the agency.-agfeed4, fie 8. The proposed Bull Run Regional Drinking Water Agency will be created under Oregon law to have the full and usual municipal powers provided under Oregon law, including but not limited to the ability to set rates and charges, collect revenues, issue debt, hire staff, and enter into agreements. 9. The proposed Bull Run Regional Drinking Water Agency will be created under existing Oregon law. 10. The proposed Bull Run Regional Drinking Water Agency will make the most efficient and effective use of its water sources to meet the needs of its members, consistent with sustainable development, best management practices, and integrated resource management strategies. 11. The proposed Bull Run Regional Drinking Water Agency will be an enterprise utility, obtaining its revenues from rates, charges, and issuance of debt related to the sale and delivery of water. 12. Each member will have representation by elected officials on the board of the proposed Bull Run Regional Drinking Water Agency. 13. Individual customers receiving water from the proposed Bull Run Regional Drinking Water Agency will have direct access to the agency's Board of Directors and to the elected public officials of the members. 14. The proposed Bull Run Regional Drinking Water Agency is intended to be organized and operated to minimize duplication or inefficiency. 15. The proposed Bull Run Regional Drinking Water Agency will participate in the programs and activities within the Bull Run and Columbia South Shore Wellfield watersheds. 16. Creation of the proposed Bull Run Regional Drinking Water Agency will not result in increased overall costs for water by virtue of combining infrastructure and operations. 02 2 Adopted by PSC on 4/25/2002 Outline of Technical Memorandum No. 4 - Governance 1. Introduction a. Purpose of the Technical Memorandum b. Executive Summary 2. Institutional Alternatives under Oregon Law a. Description of alternatives b. Discussion of legal questions related to alternatives A,�`''- E`.1-11;1t4V c. Rating of alternatives against Policy Steering Committee criteria wAjCvz �2j ➢ d. Preferred alternative(including required legislative changes, if any) J 3. Governance a. Criteria for the Agency developed by the Policy Steering Committee b. Governance issues raised by the public c. Governance issues raised by participants d. Governance issues raised by the Working Groups,the TAC and the PSC 4. Draft Proposed Principles of Agreement for the Bull Run Drinking Water Agency a. Definitions b. Bull Run Drinking Water Agency (1) The Board (2) General Powers and Duties (3) Manner of Acting (4) Staffing (5) Issuance of Debt c. Source/Transmission System Ownership (1) System ownership (2) Buy-in rights (3) Buy-back rights d. Source/Transmission System Use (1) Rights of use (2) Overuse and remedies for Overuse (3) Conservation and Curtailment e. Source/Transmission System Expansion (1) Expansion requirements (2) Participation rights f. Operations (1) Operations of Source/Transmission System (2) Operations of Distribution Systems (3) Operations of other Systems g. Rates and Charges (1) Source/Transmission System (2) Distribution Systems (3) Other Services h. Sales to Outside Parties i. Withdrawal,Termination of Membership and Sale of Assets j. Dispute Resolution k. General Provisions 4/29/02 /z9�o z Outline of Technical Memorandum No. 1 Fundamental Objectives and Criteria and Key Issues Inventory Implementation Plan for Proposed Bull Run Regional Drinking Water Agency 1. Introduction a. Purpose of memorandum b. Executive summary 2. Fundamental Objectives and Criteria a. Review fundamental objectives and criteria from Regional Drinking Water Supply Initiative Progress Report dated 12/12/2001 b. Develop proposed fundamental objectives and criteria C. Document final fundamental objectives and criteria 3. Key Issues Inventory a. Inventory and describe identified key issues from prior work b. Obtain current key issues list from each working group C. Prepare a preliminary summary of key issues for review and input of working groups and TAC d. Review comments on preliminary key issues summary and update as appropriate e. Present updated key issues summary to the TAC f. Present updated key issues summary to the PSC g. Finalize key issues summary per PSC input 4. Summary and Conclusions 02-0565.101 04/29/2002 121 S.W.Salmon,Suite 900 ■ Portland,OR 97204 ■ PHONE:503-225-9010 ■ FAX:503-225-9022 TECHNICAL MEMORANDUM DATE: April 29, 2002 PROJECT: 02-0565.101 TO: Michael McKillip—City of Tualatin, EWG Liaison David Winship—City of Beaverton, EWG Liaison Engineering Working Group Members FROM: Chris Uber, P.E. Murray, Smith& Associates, Inc. RE: Bull Run Regional Drinking Water Agency, Technical Memorandum No. 2 — Supply System Overview and Overall Issues Introduction and Purpose Working Group Charge The charge of the EWG is stated as follows: The Engineering Working Group is charged with determining what assets comprise the supply system and how the supply system will operate to serve all members of the agency. The Working Group will determine if some members of the agency cannot be served initially how they will be served. Overall Supply System Map and Inventory Inventory of Water Rights Key Member Information 02-0565.101 Page 1 TM No.2-Implementation Plan for the Proposed Bull Run Regional Drinking Water Agency 4/29/02 Sunrise Water Authority F:\PROJECTS\OP056ni0l\MEMOS\Tmbakal Mm mdm M2 vt-Outlim.dx System Capacity Summary Bull Run Watershed Columbia South Shore Wellfteld Water Demands Planned Capital Improvements Near-Term (3 to S years) Medium Term (S to 10 years) Long Term (10 to 20 Years) System Definition General Asset Lists Primary Assets Secondary Assets Tertiary Assets Operational and Service Implications Wheeling Optimal Seasonal Operations Peak Season Non Peak Season Summary 02-0565.101 Page 2 TM No.2-Implementation Plan for the Proposed Bull Run Regional Drinking Water Agency 4/29/02 Sunrise Water Authority F.\PROJECPS\02\0565\I01\MEMOS\Tccloucal MmorwW=a2 v -Oudi—doc y/z Z INTEGRATED UTILITIES w GROUP, INC. TECHNICAL MEMORANDUM#3 TO: Technical Advisory Committee FROM: Paul L. Matthews DATE: April 29, 2002 SUBJECT: Financial Analysis for Potential Bull Run Drinking Water Authority PROJECT: P128.021.RS 1. Introduction a. Purpose of Tech Memo b. Overview of Tech Memo i. Description of Ownership (1) Participation Matrix ii. Financial Separation for Differentiated Services iii. Valuation of Facilities iv. Estimated Buy-in by Owner by Participation Scenario V. Estimated Rates for Owners and Non-owners by Participation Scenarios vi. Long-Term Financial Issues (1) Strategies for Existing Debt (2) Strategies for Future Debt (3) Optional Financing of Buy-in (4) Paying for Growth C. Acknowledgments 2. Description of Ownership a. Purpose of Ownership b. Definition of Ownership i. Name on Deed ii. Right of Capacities, etc. C. Consequences of Ownership i. Allocation of Risks ii. Long-term commitments d. Description of System(Taken from TM 2) i. Included Facilities ii. Excluded Facilities (1) Impact on Wheeling e. Description of Entity(From TM 4) TECHNICAL MEMORANDUM Page 2 April 29, 2002 P 128.021.RS f. Entry/Exit Terms i. Future buy-in/buy-out options ii. Implications for growth g. Participation Matrix i. Purpose ii. Definitions/Descriptions (1) Broad Agency (2) Likely Agency (3) Narrow Agency 3. Financial Separations for Differentiated Services a. Purpose of Separations b. Options (Pros and Cons format) i. Separate Enterprise Funds (1) Allocation of Overhead Costs (2) Implications for Governance(e.g., If 3 agencies include distribution systems, who governs that portion) (3) Common or separate credit ii. Integrated Agency with cost-of-service cost allocations (1) Approach to capital cost revenue requirements 4. Estimate of Market Value of Facilities a. Purpose b. Approaches i. Book Value ii. Original Cost iii. Replacement cost new less depreciation iv. Replacement cost new 5. Estimated Buy-in by Owner by Participation Scenario (Matrix of Cost by owner, by participation scenario,by valuation technique) 6. Estimated Rates for Owners and Non-owners by Participation Scenarios (Matrix of rate by owner,by participation scenario,by valuation technique) a. General Cost-of-Service framework b. Overview of revenue requirements C. Determination of customer characteristics d. Allocation of costs e. Rate design 7. Long-Term Financial Issues 4/23/02 IUG's Proposed Outline for TM 3 TECHNICAL MEMORANDUM Page 3 April 29, 2002 P 128.021.RS a. Strategies for Existing Debt i. Review of Bond Ordinances ii. Options b. Strategies for Future Debt i. Issued by Agency ii. Issued by Owners (1) Investments required to serve non-owner customers C. Optional Financing of Buy-in d. Paying for Growth i. Regional SDC ii. Recurring Buy-in Responsibility iii. Allocation of cost of future expansion 8. Conclusions 4/23/02 IUG's Proposed Outline for TM 3 WORK FLAN IMPLEMENTATION PLAN FOR FORMATION OF A BULL RUN REGIONAL DRINKING WATER AGENCY Consultant Team Working Groups Week Starting Governance/ Technical Advisory Policy Steering No. Monda MSA IUG CH2M Hill Junkin Engineering Finance Legal Public Involvement Committee(TAC) Committee PSC 1 3/25/02 (3/28/02) 2 4/1/02 3 4/8/02 Financial overview(rate model, system valuation, 1st Meeting-4/12 1st Meeting etc.)- Matthews Criteria Review-Smith; Project Work Plan- Smith; Draft Public 4 4/15/02 Involvement Plan- LeJeune; Governance Alternatives-Smith; Governance Matrices- 2nd Meeting Smith Submit outline of TM 1 - Fundamental Objectives 5 4/22/02 and Criteria and Key Issues Inventory and (4/25/02) Present draft M 2-Supply System Submit outline of TM 3- Engineering Working public involvement plan. Overview&Overall Costs, Rates& Submit outline of TM 4- Group Report No. 1 - Present criteria for Interests Finances Governance& Policy 2nd Meeting-4/26 1st Meeting-4/23 1st Meeting-4/25 McKillip, Winship&Uber review and approval. 6 4/29/02 Review Outlines of TM's1, 2, 3 and 4-Smith, Uber, Matthews& Work on TM 1 and TM 2 Work on TM 3 Work on TM 4 3rd Meeting-5/1 Fuller/Blo ser .,_-:. $'-A'._♦ ,x : - „ T..... '+...:,w!. .F o trkPr G4;p e.� e o. ,...,-. .. .;��•.�...- ,_.. , -.,., -.- - - .rte.:.-., .... r, ,° >f. rR ; � ,.... « - <..-cam `, _� _ �_ H .�. •°'° �: �,w,. ���__- 2 No, 1 -tieic#g drlten <.- ,: ry rs_ ineenngo n .. r .^Y'.^„✓' .. k rv-,-,<.. ..:.R., f",_� ..f,:.� „ .... a,.. +F ,., , c>....:k £- rk' 2 X . n L e rt - YYd - y ....._.., .., s .._,..,�<.>,.,_ � u..., ,_ .: „,. �. �. .•� iPeSi`�tp & # F`, ,,.. 8 5/13/02 Financial Working Group Work on TM 1. Submit Periodically attend Report No. 1 - DiLoreto, progress draft of TM 2 Submit progress draft of Submit progress draft of governance/legal Thomas&Matthews. (>50%complete)by TM 3 (>50%complete) TM 4(>50%complete) working group Barry Buchanan Wednesday 5/15. 1by Wednesday 5/15. by Wednesday 5/15. Imeetings. 11 12nd Meeting-5/16 presentation on valuation. Last Updated: Murray, Smith & Associates, Inc. 5/06/2002 1 02-0565.101 (5/23/03) Present 9 5/20/02 Present progress progress drafts/reports rafts/reports on TM 2- on TM's 2,3 and 4 Work on TM 1 and TM Comment upon Uber,TM 3-Matthews (Uber,Matthews, 2. Work on TM 3 Work on TM 4 progress draft of TM 4 and TM 4-Blosser Blosser) Periodically attend 10 5/27/02 govemance/legal Submit final draft of TM Submit final draft of TM working group 2. Work on TM 1. 3 Work on TM 4 meetings. Periodically attend 11 6/3/02 govemance/legal Present final drafts of TM Submit final draft of TM working group 2-Uber and TM 3- ork on TM 1 and TM 2 Work on TM 3 4 meetings. Mathews Work on TM 4. Prepare 12 6/10/02 Complete and submit outline of model final TM 2. Submit agreement in progress draft of TM 1 coordination with Comment upon final Present final draft of TM 4 (50%complete). Work on TM 3 working groups. draft of TM 4 Fuller/Blosser Present outline of model 13 6/17/02 Submit outline of Complete and submit agreement- P Fuller/Blosser. Present implementation plan. Complete and submit final TM 4. Work on progress draft of TM 1 - ork on TM 1. final TM 3 model agreement Smith. 6/27/02 Present 14 6/24/02 Work on Assist with Ian Complete and submit ( ) P P summaries of final draft implementation plan. integration and final TM 4. Work on TM's 2, 3 and 4 and Work on TM 1. presentations. model agreement. 50%draft of TM 1. 15 7/1/02 Complete TM 2. Work Complete TM 4. Assist on implementation plan. Complete TM 3. Assist with plan integration and Assist with plan Review outline of Submit final draft of TM with plan integration and presentations. Work on integration and implementation plan- 1. presentations. model agreement. presentations. Smith/Uber Assist with plan integration, 16 7/8/02 presentations and Assist with plan public involvement. Assist with plan Work on integration and Work on model integration and Review final draft of TM 1 implementation plan presentations. agreement. presentations. -Smith 17 7/15/02 Assist with plan Work on Assist with plan integration and Assist with plan implementation plan. integration and presentations. Work on integration and Status report on model Complete TM 1. presentations. model agreement. presentations. agreement-Fuller Assist with plan (7/25/02) Present integration and summary of final TM's 1, 18 7/22/02 Assist with plan presentations. Submit Assist with plan 2,3 and 4. Present 1st Complete 1 st draft of integration and 1 st draft of model integration and draft of model implementation plan. presentations. agreement. presentations. agreement. Last Updated: Murray, Smith&Associates, Inc. 5/06/2002 2 02-0565.101 19 7/29/02 Assist with plan Assist with plan integration and Assist with plan Present 1 st draft of Complete 2nd draft of integration and presentations. Work on integration and implementation plan and implementation plan. presentations. model agreement. presentations. model agreement Assist with plan 20 8/5/02 integration and Assist with plan presentations. Submit Assist with plan Present 2nd draft of Complete final draft of integration and 2nd draft of model integration and implementation plan and implementation plan. presentations. agreement. presentations. model agreement Assist with plan integration, 21 8/12/02 presentations,and Coordinate final Assist with plan public involvement. Assist with plan Present final draft of presentation of integration and Complete final draft of integration and implementation plan and implementation plan. presentations. model agreement. presentations. model agreement 22 8/19/02 Assist with plan (8/22/02) Present final Coordinate final Assist with plan integration, Assist with plan draft of implementation presentation of integration and presentations,and integration and plan and model implementation plan. presentations. public involvement. presentations. agreement. 23 8/26/02 Complete and publish final implementation plan. Project complete. Last Updated: Murray, Smith&Associates, Inc. 5/06/2002 3 02-0565.101 Water Rate Adjustment For FY 02/03 through FY 04/05 Work Plan and Schedule Water Rate Effective bate: 10/01/02 DKK, 4/24/02 Task Due Date News media / Cityscape Bill stuffer announcements June 26 through October 1 City Council action taken June 25 City Council Workshop June 18 IWB meeting (recommendation) June 12 Council Packet due June 11 Workshop Power-point complete June 11 C.C. Workshop Packet due June 4 Receive rate resolution Back from City Attorney May 13 IWB meeting (discussion) May 8 IWB presentation complete May 6 Graphics done May 2 i IWB packet due April 29 Request Rate Resolution From City Attorney April 26 Blue sheets submitted April 25 Finance recommends rates April 25 Graphics creation begins April 25 i i i Typical Bi-Monthly Residential Water Bills (based on 22 CCF of usage) for March 2002 City of Wilsonville 1 $92.80 Clackamas River Water (South) $69.66 City of Beaverton $52.1 City of Oregon City j$49.76 II 'I City of Sherwood $ 6.98 City of Lake Oswego $4 .20 City of Tualatin 1 $4460 1 TVWD 1 $43. 2 Clackamas River Water North $43.0 3 I City of Portland 1 $41.4E Tigard Water Service Area A 38.32 City of Hillsboro37.97 $0.00 $10.00 $20.00 $30.00 $40.00 $50.00 $60.00 $70.00 $80.00 $90.00 $100.0 0 --J Typical Bi-Monthly Residential Water Bill With New Rates VS Model Projections (Based on 22 CCF of Usage) $60.00 $52 39 $52.40 $50.91-1 x49.88 $48,97 _ I $50.00 $47.03 $4-7 ' $45.10 $44.69 $41.18 $4224 f s $40.00 — ——— ---- $3 ,32 _ - $36.57 $3327 €€ 1 $32.17 —41 32.17 4 - - ®Model Projections $30.00 ■Tigard's Water Rate Plan $20.00 $10.00 �- -- $0.00 - 1999/00 200=0/01 2001/02 2002/03 2003/04 2004/05 2005/06 2006/07 COFTIGARD ON Mr. Dave Winship, P.E. April 26, 2002 City Utility Engineer City of Beaverton 4755 SW Griffith Dr. Beaverton, Oregon 97005 Re: Beaverton/Tigard Inter-tie Project Dear Dave, The purpose of this letter is to satisfy Section 4 of the Intergovernmental Agreement between the City of Beaverton and the City of Tigard for the construction of an inter-tie pipeline, dated December 18, 2001. City of Tigard representatives attended the bid opening and have reviewed the bids. We acknowledge the apparent low bid from Emery& Sons Construction Inc. for$478,197.00.We also acknowledge that Tigard's portion of the cooperative project is now estimated to be $253,078, which includes engineering, construction, and a $20,000 reserve for field order changes on Tigard's portion of the project. Tigard hereby accepts the estimated amount and consents to the award of the project.We look forward to successful construction project and the use of this facility. Sincerely, Bill Monahan, City Manager 13125 SW Hall Blvd., Tigard, OR 97223 (503) 639-4171 TDD (503)684-2772 Project Status ASR Pilot Test MWH and Golder Associates Q MVVEI (F=ld ies 5/7/02 1 a TopicsThaWWII tBe Covered ASR Pilot Test Progress Turbidity Events Updated Economic Analysis Next Steps 5/7/02 2 New Well IWas Co mpleted i ate 2001 7" 29& M• � ,:;� �gin:"��%.'�� '�` � � r. s :f i F I{ I 7 3- WW I y VV V6d Y Vl lllii 'I R ,. y;Yy w YM1 5/7/02 3 New Well is P .. ....,_ mow,"„'^� s3"'^ a�� '".._� �.'�u�...w,c .� ''„• ; '�'K ;,.,,�.�a,�,,.� New well um ed at 800 p p gpm vs . 300 gpm originaI well Well has high i ca acitcapacity (800 gpm) iaq d� 3,- 5/7/02 = 4 4 ASR I Began January 8 , 2002 kMoot I Initial injection rato of 792gpm Planned Injection - 129 MG over 110days 2001 2002 Summer Fall Winter Spring Summer Fall Permitting Drill New WelUWell Modifications Recharge Period Storage Period Withdrawal Delivery of watery Pilot Test Report 7W 5/7/02 5 Injection DConsistent with Model .rz_nv s Key QM Municipal groundwater withdrawal QM Qs(P+R) springflow from regional or perched water tables R PE CIL Lateral groundwater discharge R Rainfall ER Effective rainfall PE Potential evapotranspiration Pre 1940's RO Runoff 0 "" 43 ; Dewatered aquifer(available storage)`x r �2." .� Qs RO g + (Perched+Regional) -77N 7r F mo Creek Tualatin River !• r,.. Limited aquifer thickness or low �, �, ' permeability fault x (barriertaflow) � ati ,1h ' Limitedaquifer 3thickness (barrier to flow) 5/7/02 6 Water Storage in Aquifer Appears Good Water level rise indicate storage in aquifer No discharges of water to surface springs or seeps identified 1 Leakage could be less than original estimate - 10% vs. 25% 1 A 2nd well at the site could provide addtl 100 MG storage 5/7/02 7 IIII TopicsThatWill Be Covered ASR Pilot Test Progress Turbidity Events Updated Economic Analysis Next Steps 5/7/02 8 Turbidity Events During Injection "Cloud" Results 1 Three separate events 1 Slugs of highly turbid water entered well 1 Duration from 1 -24 hrs i Not effect of on-going low level accumulation 5/]/02 g Turbidity Events Affected Well Performance ...... .... 1 Well water levels increased 20' total I Reduced well performance - yield 1 Borehole skin in well 5/]/02 10 Injection Reduced by Turbidity Events 8 6 E T i CL 4 m U C O .5 d C 2 0 20 40 60 80 100 120 140 160 180 200 220 240 260 280 300 Volume Injected(M G) SGolder Figure 1:Injection Capacity ssociates DRAWN SM DAIS April IOBNO. P 013-1419-002.20 CHECKED Ac SCAIE na DVU.NO. na Dg EUENo. Impact Assessment.xls nF'u-NO. na 5/7/02 11 Initial Response Tried to Correct and Determine Cause 1 Temporary shut down of injection 1 Pump to waste Water quality samples to ID sediments in well and reservoirs 1 Determine type and presence of sediments and bacti ' 1 Review of Public Works projects I $20K cost for initial investigations 5/7/02 12 Injection Stopped After Third Event to Protect Well 1 20 days early 1 97 MG actual vs . 129 MG planned 1 75 % of planned storage achieved 1 Adequate for pilot test investigations s,7,oz 13 WO Results Suggest Surface Water Origin for Material 1 Well - Diatoms, algae, iron bacti, sand and clay 1 Reservoirs - Diatoms, iron bacti s/,/oz 14 But Source is S Unknown Accumulation in reservoir? Contamination ? Source? I ???? 5/7/02 15 Future ECould Da ae Well Performance M 8 6 a int m 4 CL a U C O d C 2 i I 0 0 20 40 60 80 100 120 140 160 180 200 220 240 260 280 300 Volume Injected(MG) nnE Gsocdoliates er AsFigure 1:Injection Capacity DRAWN SM °Am April 2002ioeNO. 013-1419-002.20 cxEcrzm AC sc,vE na DOB NO. na FE%SV O DB FlIENO. "act Assessment.xis I FIOORENO. na 5/7/02 16 Large Effort on Identifying Source Not Recommended 1 Next steps cost $20K - $30K+ I Sample distribution system I Flow model 1 Unknown chance of success 1 Identifying source may not prevent future events 5l]IO2 17 Recommend Focusing on Rehab and, Prevention ''n 1 Rehabilitate well during storage period to restore well performance 1 Phased Approach to rehabilitation 0 Phase I - Physical 1 Phase II - Chemical 1 Install automatic shut-off valve and turbidimeter during next phase of project 5/7/02 18 TopicsTh W� 11 atBe Covered ASR Pilot Test Progress Turbidity Events Updated Economic Analysis Next Steps 5/7/02 19 Feasibility Study Provided Estimates of Cost Savings Phase Capacity Yearly Operating AV Savings Intermediate 1 . 5 mgd $ 100,000 Full Scale 6. 0 mgd $400,000 snmz Assumes 120 day withdrawal season 20 Updated Pricing Assumptions Are Available 1 Feasibility Study : $0 . 30/ccf for all water injected 1 Current Pricing : 1 $0.01/ccf for water injected $0.41/ccf for water withdrawn s/>/oz 21 Current E m atesof S 0 avings Phase Capacity Yearly All Operating Sa N vings No additional 1 . 1 mg _ $70,000g we//s Full Scale 6 . 0 m d $375r000g 5/7/02 Assumes 120 day withdrawal season 22 Impact of Turbidity Events on Project Costs 1 $20K for past investigations 1 Rehab work costs i Phase I - $40K 1 Phase II - $30K if needed 1 Budget for next phase prevention equipment $30K - $50K s/7/oz 23 Payback Full Remains Less Th an 10 Years �F_ ES TINIATED COSTS PHAS E 3 FULL S CALE AS R IMPLEMENTATION PERMITTING STAGE 1-Convert Pilot Well to ASR Well and 1-1.5 mgd develop second ASRwell on Canterbury site ESTIMATED COSTS $ 450,000'. ESTIMATED COSTS TO PURCHASE WATER FOR ASR(1.5 mgd) S 120,321' STAGE 2-Modify Existing We 11 No.2 and develop second ASRwell atsite 1.5-2.5 mSd ES TIAMTED COSTS S 450;000.' ES TIMATED COS TS TO PURCHAS E WATER FOR ASR(2.5 mgd) S 200$535: STAGE 3-Install two wells at appropriate site 2.54 mgd: ES TIMATED COSTS $ '70 11 1,000 ES TIMATED COSTS TO PURCHASE WATER FOR ASR(4 mgd) $ 320,856 STAGE 4-Install two wells at appropriate site 4-5 mgd ES TIMATED COSTS $ 950,000.' ES TIMATED COSTS TO PURCHASE WATER FOR ASR(5 mgd) S 401,070 STAGE 5-Install two wells at appropriate site ES TIMATED COSTS ES TIMATED COSTS TO PURCHASE WATER FOR ASR(6 mgd) 5/7/02 24 TopicsTh WPIatIBe Covered ..`. ': •s ,.•� ,.,,, ::: _ _ X� - h�.u�'4�v!flees rc+3iA�^.ar �' :: ,. ., ..,,.af.e„.g��� E ,r�,.,.� ,,,nom �-4• u ASR Pilot Test Progress Turbidity Events Updated Economic Analysis Next Steps 5/7/02 25 Next Steps Rehabilitate well before recovery period - May/June 2002 1 Perform in phases as needed 1 Complete Pilot Test - October 2002 1 Next Phase - Spring 2003 1 Install turbidimeter with auto valve to prevent turbidity events from impacting well 1 Drill 2nd well at site 5/7/02 I� 26 Summary 1 Preliminary pilot data indicates ASR can be successful for Tigard Storage could be 200 MG at site 1 Well Rehab work needed to restore well yield 1 Recurring turbidity events must be prevented 5/7/02 27 Intergovernmental Water Board Meeting Informational Items Supplement May 8, 2002 1. Willamette Water Supply Agency, draft of January 29, 2002, meeting minutes 2. Tigard Times article dated April 25, 2002, Vote `yes'on 34-46, to assure a vote on Willamette River water 3. Tualatin Basin Water District letter to City Administrator, City of Tigard, dated April 30, 2002, regarding FY 2002-2003 Water Rates 4. Oregonian article dated April 30, 2002, Wilsonville dips into Willamette 5. Article in April 30, 2002 Portland Tribune, Water report all wet, critics say 6. Wilsonville water dispute goes before appeals court, Oregonian article, May 1, 2002 Draft, Minutes not yet approved by the WWSA Board. Willamette Water Supply Agency Meeting Minutes January 29, 2002 Members present; Chair Paul Rogers (Clackamas River Water Board), Vice- Chair Bob Westcott (Canby Utility Board), Carl Gardner (Gladstone City Council), Ed Truax (Tualatin City Council), Joyce Patton (Tigard City Council), Keith Mays (Sherwood City Council), and Jim Doane (Tualatin Valley Water District Board) Staff present: Todd Heidgerken (Tualatin Valley Water District), Dirk Borges (Canby Utility), Mike McKillip (City of Tualatin), Jonathan Block (City of Gladstone), Dale Jutila (Clackamas River Water), Burton Weast (WWSA), and John Killin (WWSA) Others present: Lisa Melyan (Tualatin Valley Water District Board), Jim Newton (Canby Utility Board), Shawn Carroll (Canby Utility Board), and John Hill (Canby Utility Board) Public present: None 1. Call to Order Chairman Paul Rogers called the regular meeting of the Willamette Water Supply Agency to order at 7:06 pm at the City of Tualatin City Council Chambers — 1884 SW Martinazzi Avenue, Tualatin, Oregon. Il. Review of Minutes from October 30, 2001 The minutes from the October 30, 2001 were distributed. One change was suggested for the minutes. Westcott pointed out that Randy Carson was representing the Canby City Council, not the Canby Utility Board. The correction was noted in the record. A motion was made by Doane and seconded by Gardner, to approve the minutes from the October 2001 meeting as corrected. The motion carried unanimously. Ill. WWSA Financial Update A. A financial update, which compared the 2000-2001 budget to actual expenditures for July 1, 2001 through January 23, 2002, was distributed. WWSA spent $26,253.96 between in that time period. This left $60,246.04 remaining in the budget. Heidgerken Draft, Minutes not yet approved by the WWSA Board. noted that further expenditures for engineering services had occurred since this update was created. CH2M Hill was paid approximately $3000, which was not reflected on the financial update. (See Attachment 1) B. Weast informs the board about the budget proposal, which had already been distributed to the board. He explained that the percentage of allotment remained the same as last year's allotment and thoroughly presented the budget proposal. Weast notes the significant changes from last year's budget, including a reduction in the overall budget. Several clarifying questions were asked and Weast explained the answers. Additionally, Heidgerken explained that the dues billing to each district would be decreased by any carryover from the previous budget year. One error in the budget proposal was noted by Doane. TVWD's share would be 62.227% not 6.2227%. The correction was noted in the record and the budget proposal was appropriately revised. Patton suggested including a more thorough line item list in next year's budget. The board agreed and Weast promised a more precise budget for next year. Weast explained that because the staff was just beginning the adopted work plan, the specific line items were unclear for this year's budget. In a round table discussion on the contingency budget, the board decided that staff would need board approval before they spend contingency dollars and before they spend over budget of any other category. Heidgerken pointed out that the next legal bill received would overspend that budgetary item. After discussion, Westcott moved to allow staff to use current contingency funds to cover forthcoming legal fees. Patton seconded Wescott's motion, and the board agreed unanimously. Doane moves the budget to be adopted as corrected. Wescott seconded noting that staff would attach a copy to the nest mailing of meeting minutes. The board adopted the 2002-2003 WWSA budget. IV. Executive Director Report A. Water Right— Heidgerken, Weast, and Killin informed the board that there was nothing to report at that time. Each board member had already received a memo covering technical details of the water right application. Due to various delays at the Water Resources Department the department had not made a decision. Weast comments on the state budget and the Water Resources Department's difficulty in overcoming a water right backlog. B. Updated Calendar and Taskforce List— Killin distributed an updated calendar of events and a list of legislative and state agency workgroups. Weast, Killin, and Heidgerken review several of the workgroup's efforts. Weast and Killin promised to provide continuing updates of the calendar and list. Weast led a lengthy round-table Draft, Minutes not yet approved by the WWSA Board. discussion on the backflow valves, one of the workgroups listed in the update. Largely informational, the discussion did not lead to board action. C. The revised workplan was briefly discussed. Weast said that now that the budget had been approved, staff may now begin efforts in implementing the workplan. V. Other Business The invited guest was unable to speak at the board meeting. Weast had previously recommended inviting Tom Vanderplaat to provide a 10-20 minute presentation on Clean Water Services' ongoing water use study and how it may affect Willamette River water rights. As Vanderplaat was unable to attend, the board approved the invitation of Vanderplaat to perform a twenty-minute presentation on the study and to directly address the board's interests at the next board meeting. Vl. Public Comments There were no members of the general public were in attendance. VII. Announcements Doane announced that TVWD will be intervening in the Portland General Electric and Northwest Natural Gas merger. They are unsure about what roll the district will play. Borges announces that Canby is continuing to fight against a gravel 'quarry being placed up stream on the Molalla river. They are currently in an effort to appeal to the Land Use Board of Appeals. Weast suggests that Canby meet with the gravel providers association and the gravel company to attempt to find a reasonable compromise. Borges further explains Canby's efforts and discusses their options. Vill. Next Meeting Date The next WWSA Board meeting was set for Tuesday, April 30, 2002: The meeting is to be held at either the Tualatin Police Department or the Council Chambers at 7:00 p.m. IX. Adjournment Citing no further business before the Board, Keith Mays moved to adjourn. There were no objections. Chair Rogers declared the meeting adjourned at 7:55 PM. TT■The Times April 25, 2002 ■A5 ' assure a vote on Willamette RiverVote`yes on 34-46, to water (Soapboxes are guest opinions from our city council against the poor quality of Those are surely not characteristics low up study regarding trends in defor SOAPBOX - readers.Kathleen Newcomb is a Willamette River water.After the hear- of a good raw drinking-water source. mities.But in 1998,a DEQ-sponsored Tualatin resident and an active member KATHLEEN NEWCOMB ing was closed,we then listened while And at present the United States study found that 30 percent of trout of Tualatin Citizens for Safe Water.) a representative from the Willamette Geological Survey is surveying at-risk eggs suspended to hatch in the natures,people constantly said to us,"I treatment plant told the council over rivers across the nation for a new haz- Newberg Pool developed deformities in Residents of Tualatin have-a special thought we already voted on this." and over how"good"the water of the ard:"Pharmaceuticals and Personal only two weeks or so. opportunity in the upcoming May elec- Unfortunately,our earlier election in Willamette was,in its raw state.The Care Pollutants." Novy a$500,000 study of the causes tion.We can vote"yes"on Ballot May 2000 was merely about funding council was even told that fish deformi- The"PPCPs"include prescription of the deformities has been funded, Measure 34-46 to assure that our voice $5 million in water pipes,the first step ties in the Newberg Pool were dropping drugs,antibiotics,hormones,fire retar- with OSU's Department of will be heard on the issue of Willamette toward hooking us up to the dramatically. dants,detergent byproducts and many Environmental and Molecular Iver drinking water. Wilsonville trtment eaplant.Happily, Is raw Willamette water"good?" v other contaminants.New technology Toxicology conducting the study. Ballot Measure 34-46 is really a Tualatin citizens did win that election, Are the fish deformities truly dropping. now makes it possible to measure these A preliminary report to the 2003 vote fort right to vote 6 this issue.A We already know:(1)from the gov- "organic waste contaminants"flushing Legislature is expected by about 1'yes"vote right 34-46 to a vote fora opposing the funding by about 72 per- error's 1997 report on the Willamette down from toilets and kitchen sinks December 2002.It was astounding to Py city charter amendment.This cent.However,that was only a tempo- that the Newberg Pool stretch of the into our rivers. me to Team last month,while observing t rary protection. Willamette,where Wilsonville's treat- The USGS has made a survey ofthe the City Council-appointed Ad Hoc amendment will assure Tualatin cih- Vens that,if the City Council again Now we.have the rare opportunity to ment plant intake is located,is loaded PPCPs in the Newberg pool,and a Future Water Supply Committee meet- ecides to bring us treated Willamette vote to permanently establish our"right with pesticides,toxins and heavy met- report is expected to be available within Ings,that,in draft form,the Willamette � iver water into our drinking water,we to-vote"on this drinking water issue. als;(2)a properly-certified dredging six to 12 months. River is currently the top-ranked of all hall first be allowed to vote—either You may ask,why not simply leave business routinely operates in the And the fish deformities?Well,an the options considered. >k or or against the proposition. the issue in the city council's hands? Newberg Pool,stirring up contami- average of 49.7 percent fish deformities Please vote"yes"Doesn't the council have all the infor- nants;(3)more than a score of major were found in the Newberg Pool in t Last summer we Tualatin Citizens 34-46.Assure yourself f Ballot Measure that you will 1'or Safe Water worked on an initiative mation it needs to make a wise deci- sewage treatment plants and industries 1992-94,with a peak of up to 74 per have the fight to vote on the Willamette lvhich eventually resulted in Ballot sion?Apparently not.In November empty their waste into the Willamette cent skeletal deformities.There never g Measure 34-46.While we gathered sig- 1999,several of us testifies;h :ore the aprive,from Wilsonville's intake. was funding :: r that for a proper fo.- River as a drinking water source. Ire In TualatinValley Water District 1850 SW 170`x'Ave.-P.O.Box 745-Beaverton,Oregon 97075.503/642-1511.FAX:503/649-2733 ireg DiLoreto ieneral Manager April 30, 2002 temice Bagnall ,hief Financial Officer )ale Fishback City Administrator :tanager, Operations City of Tigard g Field Services 13125 SW Hall Blvd 3renda Lennox Tigard, OR 97298 danger, Customer& support Services Ref: FY 2002-2003 Water Rates 3ary Pippin Vanager,Engineering services This letter is sent to inform you of the intention of the Tualatin Valley Water zebra Erickson District(TVWD) to adjust the water rate charged to the City of Tigard under the Manager,Human terms of the contract between TVWD and the City dated July 1, 1995. 2esources Enclosed is the worksheet used to determine the rate utilizing the same methodology as in years past. The water rate for fiscal year 2002-2003 will be $0.93 per hundred cubic feet. Like last year, when water flowing through TVWD's meter at Bradley Corners is being utilized for the benefit of the City of Tigard, the City of Portland will bill TVWD. We will add the normal wheeling administrative charge of 2 cents per hundred cubic feet to the Portland charges as outlined in the 1995 agreement, but we will not include the 5 cents per hundred cubic feet for alternate supply from the Joint Water Commission. For fiscal year 2002-2003 the rate for this connection will be $0.95 per hundred cubic feet. These rates are effective July 1,2002 for any water used on or after that date. Respectfully, Bernice Bagnall Chief Financial Officer c: Greg DiLoreto, General Manager, TVWD Ed Wegner, City of Tigard Bob Shields, Financial Services Supervisor, TVWD enc: as noted WATER—not to be taken for granted Tigard Rates.doc/WJ:/My Documents/04/30/02 Tualatin Valley Water District City of Tigard projected rate for Fiscal year 2002-03 Run date April 30, 2002 1 Avg Daily Water Volume of District through transmission pipelines was 20.33 MGD or 9,920,751 CCF 0.660 per CCF 2 Water Charge from city of Portland (Area 5 rate) 3 Gravity Line Debt Service Paid to Portland for Washington County Supply Line, net $1,434,082.12 0.130 per CCF 4 Gravity Line Debt Service for Costs of Metzger Pipeline 1,309,532.33 0.118 per CCF 5 All Line Operation & Maintenance and City of Portland Allocation of Administr 6,000.00 0.001 per CCF 6 Cost of acquiring Alternate Supply from the Joint Water Commission 0.050 per CCF 7 Wheeling Administrative Charge 0.020 per CCF 0.979 per CCF FOR 2002 - 03 USE 0.930 PER CCF as a contribution rate,matching Portland's Service Area 3 rate City of Tigard rate at Bradley Corners for Fiscal Year 2002-03 1 Water Charge from city of Portland (Area 3 rate) 0.930 per CCF 2 Wheeling Administrative Charge 0.020 per CCF 0.950 per CCF FOR 2002 - 03 USE 0.950 PER CCF wtrcast2002.xls U- P I � I g w, 3M Pro&Con: Proponents of two 'IIFTHIS SECTION competing growth and density-oriented 1 ballot measures hash out the arguments .OBITUARIES, B8 for voters Pi the Metro region. ♦OPINION, B10 Commentary, Page B110 11 P _0 -- MANAGING EDITOR/NEWS:THERESE BOTTOMLY• 503-221-8434 • • • • W'111a wilsonvi i Jerry Anderson, a Wilsonville �t utility worker, performs chlorine test on a fire hydrant hP. is flushing on Southwest 95th Avenue. After the city's new $.48 million treatment plant : went online tt " Monday, crews flushed water lines throughout Wilsonville to ensure consistent water quality. BRENT THE i . OREGONIAN TAPPING THE WILLAMETTE Switching on the river system ends years of development restrictions Wilsonville turned on its new$48 million water treatment plant Monday,becoming By RICK BELLA and DANA TIMS partnerships to join Portland's'Bull Run On one hand,they think having a city the first community the Portland area to THE OREGONIAN system or die neighboring Clackamas of 14,000 drinking from the Willamette draw its drinking water from the Willamette WILSONVILLE_With no fanfare,en- River Water District. will give them ammunition for their bat River. gineers flipped a couple of switches early The change also had the effect of de- open to clean up the river. open for business.For On the other hand, they're not sure Monday and made Wilsonville the first claring Wilsonville :. 1/4 six'in the Portland area to tap the Wil- six summers,the city has endured water- that drawing water for domestic use so MILEuse restrictions.A two-year construction far downstream is safe. The river rolls Wilso nvllle Rd. �¢` lamette River for its drinking water. �� � Water from a$48 million state-of-the- moratorium and what amounted to a past more than one-quarter of Oregon's T municipal rationing plan also stifled population by the time it reaches Wil- Industrial Wy, A++ art treatment plant surged into water building plans. sonville.Cities and paper mills along the Pad+.ard lines around 4 a.m., signaling Wilson- way dump treated effluent into the river, i d ville's en into a brave new world of But concerned residents have tried to Y 1? �' block the move with two lawsuits and where it is joined by chemical runoff a water supply. petitions. from farmnland. AQ "We,, ".It's very soft water,"said Mayor Char- 'll be getting bottled water deliv- For years, scientists have been alarm- lotte'Lehan, sipping a bottle of water ed over deformed trout from the river's � pp g tired," said Chanes Scott, a resident of i „` .5' from the plant."It reminds me of distill- Wilsonville's Charbonneau district and a Newberg Pool, a 30-mile stretch from ° ed water.I think it tastes darned good." member of Citizens for Safe Water. Newberg to Oregon City. Scientists still MI Vs,,.4 The move put the city on an indepen- Meanwhile, environmentalists have have no answer for the crooked spines, dent course, rejecting potentially costly delivered a nuxed verdict. Please see WATER,Page B6 PAT McLELLAND/THE OREGONIAN v" B6 ■ ■ 2M_ _ _ METRO/NORTHWEST Water® Plant-. multistage process a multistagP Continued from Page B1 DRINKING RIVER WATER malformed skulls and bugged eyes many fish there display, said Dick The new Wilsonville treatment plant,which is about the size of 21/2 football fields,draws water from the-Willamette River, Pedersen, manager of the Oregon then purifies it through processes of sedimentation,filtration,ozone injection and chlorination.Here is how,it works: Department of Environmental Pumping Motors spin and agitate Settling Quality's watershed management 1.Water is the water,breaking up any 2.Next water is pumped to a clarification s section. The agency continues to p p work with Oregon State University pumped from large materials basin,where suspended particles are 4 scientists to pinpoint causes, he the river by aA JL settled out. said. submerged ,, intake pipe Clarified M Wilsonville is banking on what beneath the Y. watergi,es officials calla "redundant, super riverbank. -04, 111 «1 r t to ozone safe"system that draws river water ._5 �"..5 basin through fine mesh screens, then Jw A.� .4 1.-,.4'- purifies 4'purifies it through coagulation, ` sedimentation, ozonation, carbon f Raw filtration,sand filtration and finally ente sater system the`# addition of chlorine. Settled materials "This water system is very safe," are removed said Jeff Bauman, Wilsonville's Ozonation Filtration Clearweli public works director. "We don't 3.Water then 4.Continuing t, 5.In the final 12 000 have to use all of these steps to x n� ' flows to basin on,the water process,a y gallons of meet federal water quality stan : . water per j dards. But we want to. That's our where ozone then flows small amount Chloride is injected into through six of chlorine ammonia_ minute to promise to Wilsonville residents." gzone, Charcoal� ° the water. feet of , - . : ammonia is added < •' Wilsonville Others sayWilsonville isplayingin acted a 1residents Ozone kills 1 activated added to the liquid Russian roulette. bacteria and charcoal »" Iiand ' water to maintain its disinfectant "Ask anyone in this state what other organisms, granules.The charcoal removes qualities.Pumps then force the water they think about the Willamette's while reducing tastes,odors and chemical contaminants and any into the city's distribution system to t water quality,and they'll hold their other contaminants. remaining particles. water customers throughout Wilsonville. nose," said Matt Blevins, the Ore- gon Environmental Council's legis- MICHAEL MODE,MICHAEL GUILLEN,PAT MCLELLAND/THE O:iEGONIAN lative affairs director. "The reality is, it's polluted. Expecting people Palm Desert, Calif., to operate the plant capacity. will cast ballots May 21 on whether . to drink that water doesn't seem plant for a little more than$1 mil- Initially, public works director to amend the city charter to re like the wisest course of action." lion a year. Bauman said,the plant will not run quire a vote before allowing a shift' Wilsonville officials have long Wilsonville put up $20 million at capacity.Otrly one of four intake to Willamette water. said they had little choice. The , for construction.The state Depart- pumps was switched on Monday. I think the city of Wilsonville's city's eight wells routinely failed to ' produce enough potable water for meat of Corrections chipped in However, it produced more water move today speaks a lot to what the city, with two wells regularly $10 million, tied to construction of than the city's wells,which will be the possibilities are," Lehan said. on Y the nearby Coffee Creek Correc- kept as a backup. "The river is an abundant source of registering high concentrations of tional Facility. The Tualatin Valley The plant's excess capacity water.If we can show it is safe and ` E. coli bacteria. Other wells pro- Water District contributed$17 mil- could be used b the Tualatin Val- reliable,it will open u p a lot of os- on to al concentrations that extra treat- Y the rights ; duced water with such high miner- Water buy Water District. Tualatin voters sibilities for other cities."�is to future ley meat was required. Meanwhile, connecting to Port- land's Bull Run system would have been expensive. Wilsonville would have been forced to pay more than $60 million for the pipe alone.With other costs, Wilsonville's share could have reached $100 million. When cities such as Tigard and Tualatin declined to join a regional coalition,Wilsonville went its own way.Wilsonville needed to make a > move," said Portland City Com- missioner om missioner Erik Sten, who oversees the city's Water Bureau, "and I don't fault them for it." � f, � uv- _�, Al►.�,. In 2000, Wilsonville voters ap- 77e r x proved plans to process Willamettew >sf 11G water for drinking, an election still Vis, �t `bpeta lnttad under challenge. The City Council " l �(^ 71 j} rnet �eS$ hired Montgomery Watson Harza, P1.15 an international engineering firm, to design and build the plant.The x3q q� council then contracted USFilter ofj ge .....�".:crr'Y'.'q'^l7'fn"tl:eR'�"R'7'm.77Jr±.'�'71'MCP✓i:".S�;�nY'Pn5F.+7'I�/;R?79.�FRI •.v—.-.........+.rrA.�> t%'.?C:?'Swh, .. 1 Portland Tribune Tuesday. ,lhril so, 2002 • Watff,, u si e audit sou ht ■ From page 1 tell you the information is going to come out anyway,so it's better to be upfront about it now,"said Mil iucci, who works as the program 4. manager of the city of Beaverton's R Dispute Resolution Center. o' A4 � Sten defends bureau ` Because of the lack of informa- tion nforma tion in the report,Miliucci is call- ing for an independent audit of the billing system. He said the audit should include uncollectible bills, lost interest on the payments,ad- ditional staff time to run the sys - IGik tem and the higher costs of proj- ects that have been delayed be- cause e cause of the problems. "The city has now shown that it's willing to hide the full cost of the system from the public," Miliucci said."We need an outside audit to determine what's really going on." Sten denied that an independent audit was needed. He contended that Miliucci Was trying to turn this TRIBUNE FILE PHOTO:JIM CLARK into a campaign issue. City Council candidate Mike Miliucci(right)and city Commissioner Erik Sten have been debating the cost of the water "I think he's just playing poli- department billing imbroglio since a candidates'forum in March. tics,"Sten said. For his part,Wish is developing functioning almost immediately. with Severn 'Trent Systems," the exceeded projections since last De- an independent analysis of the sys- 'fens of thousands of water users report said. cember.Rich Rogers,Sten's liaison tem's total costs and losses. He failed to receive bills for a year or Although the report did not in- to the water bureau,said the sys- plans to present the analysis to the more.Other bills were incorrect. elude a total loss figure,the city es- tem has brought in approximately utility review board at its next Although Sten authorized the timated potential losses caused by $12 million above projections in meeting,which is scheduled to be- system to be activated,he later said various problems with the system this fiscal year. gin at 5 p.m.Wednesday in the Port- he was not aware of the staff objet- during the past year.For example, "It's running well above even the land Building,1120 S.W.Fifth Ave. tions.He pressured water bureau in a March 29 status report,the wa- most conservative estimates,"Sten Although Wish would not re- Director Mike Rosenberger to re- ter bureau estimated that between said. lease his analysis before the meet- sign after failing for more than a $5 million and $10 million in bad But last Thursday's report said ing,he said losses would be in the year to solve the problems. debts would eventually have to be the system was still not meeting all tens of millions of dollars. Sten has made fixing the system written off. of the goals approved by the conn "It's far more than anything the the bureau's top priority.hmploy- Sten said he thought the final fig- cil in December. For example,the city has ever given for ees have been di- ure would be about$5.9 million. council said then that the bureau a total,"Wish said. verted from other But Miliucci argued that all the should negotiate a maintenance Ironically, Sten ap "There's ThereS no departments to help potential losses and additional contract with Severn Trent by now. pointed Wish to the reason to run the system,and costs needed to be considered to- But the company is refusing to ne board,which has long other projects have gether. He said that,if all the fig- gotiate as long as the city is con- criticized the city's believe the been delayed be- ures were added up, the new sys- sidering taking legal action against handling of the billing cause of declining tern would end up costing the city them. problems. city'$ revenues. at least$20 million to purchase,re- The council also said that unpaid Although Sten The City Council pair,maintain and operate. accounts should total no more than praised Wish as a good estimates at directed the Office Among other things,,Miliucci $17 million by now. Instead, the watchdog, he said heth1point.�� of Management and said, the water bureau has cur- amount is$48.3 million. S was puzzled by the p Finance to take rently assigned 100 employees to In addition,the council also said continuing controver- —Mike Miliucci, charge of the proj- run the system—more than twice that 99 percent of past due ac- sy over the system. City Council candidate ect.In a series of re- the 49 employees required before counts should be receiving auto- "We were looking at ports to the council, the new system was activated in matic demand letters by now. Ac- a total collapse last year,but things t1w office revealed the system's February 2000. cording to the report,the current are much better now,"Sten said."I problems were far worse than offi- "That's an additional$3 million figure is only 72 percent. don't know why anyone would cially recognized. in salaries right there," Miliucci And the council said that all cus- —} want to say it's still a crisis at this Problems detailed said of the additional 51 employees. tomers who request a payment point„ Miliucci also argued that the bad plan for unpaid bills should be re- History of trouble On Dec.19,the council approved debts would also end up costing the ceiving automatic notices by now. a resolution giving the office 120 city more than$5.9 million. Instead, according to' the report, The computer system is sup- days to determine whether the sys- According to the report,the city the system is still being tested. posed to provide automated billings tem should be replaced.The report, is trying to collect$48.3 million in "The system is still not working to about 180,000 water users. The which was due on April 15,was not unpaid bills. at the basic level required by coun- system bills for both the water bu- released until 10 days later. "There's no reason to believe the cil," Miliucci said. "The council reau and the environmental servic- The report was written by three city's estimates at this point,"Mili- gave the bureau 1.20 days to fix the es bureau,which operates the city's top city administrators: Tim ucci said. system and they failed." sewers. Grevve,the city's chief administra- Still not working right Sten said the system still needs The council decided to upgrade tive officer; Mort Anoushiravani, work but contended that the most its aging billing system in the mid- the administrator of the water bu- Despite the ongoing problems, serious ones have been solved. 1990s. After reviewing bids from reau;and Dean Marriott,the direc- Sten said the billing system is es- Miliucci, however, said Sten several manufacturers, the city for of the Bureau of Environmental sentially fixed. He said that it is failed his council mandate. bought the system from Severn Services. bringing in more money than was "He was given 1.20 days to fix the Trent for$3.5 million in 1997. "We do not believe that further projected when the council called system, and he hasn't," Miliucci The system was activated in Feb- discussion of such estimates for the report in December. said. ruary 2000 against the advice of should occur until their research is According to a March 29 status several city staff members who complete and the city has had an report from the water bureau,col- Contact,Jim Redden at jred- were working on it. It began mal- opportunity to discuss the situation lections have consistently met or den@portlandtribune.com. Swept away Future flashes Chips ahoya 4 , The Blazers dissect a tough Psychic Suzanne Jauchius Intel gets set to spend millions end to a turbulent season can help you plan ahead converting to Frisbee-sized loafers — See SPORTS, B8 — See PORTLAND LIFE, B1 — See BUSINESS, A5 PO tir aiiuna TUESDAY, APRIL 30, 2002 PUBLISHED EACH TUESDAY & FRIDAY FREE Water report ;ill wet critics say ■ City officials icials def end decision to exclude '"rhe city is hiding the truth ucci came in response to the re- cause the city is considering suing decided how much to ask for if we _! from the public,and the public has lease last week of a long-awaited the system's manufacturer, Sev- have to sue Severn Trent," Sten estimated costs of bureau's billing debacle a right to know what's really hap- report on the status of the billing ern Trent Systems of Houston. said."Until then,we don't want to pening,"said Mike Miliucci,who is system. Sten,who is in charge of the wa- limit ourselves." running against city Commission- The report,which was request- ter bureau,said City Attorney Jeff But Miliucci, a former Clacka- By JIM REDDEN ally hiding the full costs of the er Erik.Sten. ed by the council in December,did Rogers requested that the infor- mas County deputy district attor- The Tribune water bureau's troubled com- "Some people want to see the not include an estimate of the full oration be withheld from the re- ney,blasted the argument that the puter billing system. (water) system fail for their own cost of the system and the total port.Sten said he agreed with the information needed to be kept out A City Council candidate and "I'm not afraid to say it—it's a reasons,but the truth is it's work- amount of the potential losses recommendation,explaining that of the report for legal reasons. the head of an official city cover-up,"said John Wish,a mem- ing now and the crisis is behind caused by its problems. it was necessary to preserve the "As a former prosecutor, I can watchdog group are accusing ber of the Portland Utility Review us,"Sten countered. The information was intention- city's legal options. Portland officials of intention- Board. Comments from Wish and Mili- ally withheld from the report be- "The city attorney has not yet See WATER/Page 4 Wilsonville water dispute goes before ' appeals court ' A three-judge panel takes arguments over voting on tapping the Willamette River for drinking water By RICK BELLKohlhoff provided a moment of THE OREGOMAN ONIAN SALEM — If you believe oppo- courtroom drama by pulling out a nents of Wilsonville's new water bottle of water from the new plant, pouring some into a cup and tak- treatment plant,city officials disre- ing a sip. His quick drink was in- garded the will of the people by tended to show the opponents'ap- failing to hold a special vote on peal became moot when the plant whether to tap the Willamette Riv- went online. er for the city's drinking water. Although the judges didn't rule If you believe city officials, Wil- specifically on the point, the tone sonville voters did vote to put the of their comments indicated they city on river water when they ap- were not persuaded by that part of proved a$25 million bond issue in Kohlhoffs argument. Meanwhile, 1999 to build the plant. the judges were uniformly aggres- Both sides argued their cases sive in trying to narrow the issues Tuesday before an Oregon Court of before the court Tuesday. The Appeals panel that will decide on judges freely interrupted both an appeal filed by opponents of the Kohlhoff and Williams with ques- treatment plant. The three-judge tions. panel, headed by Associate Judge The appeal stems from a lawsuit Walt Edmonds, is expected to rule filed in Clackamas County Circuit within 60 days. Court.Water plant opponents filed Linda Williams,a Portland attor- the appeal after a trial-court judge ney representing Wilsonville Citi- rejected their lawsuit in October. zens for Safe Water,told the judges that when Wilsonville voters ap- The lawsuit was filed in the wake proved a measure in September of a controversial September 1999 1999 that amended the city charter 1 vote in which Wilsonville residents to require a citywide vote before a j approved two water-related ballot shift to river water,that meant city measures. officials had to place a specific The first measure asked whether question on the ballot. the city charter should be amend- lust because voters also approv ed to require voter approval for use ed bonds to finance plant con- of the Willamette as a drinking- struction in the same election does water source. It passed 1,827 to not address the question,Williams 1,597. said. The second measure asked vot- "Oregon law does not have a ers to approve issuance of revenue pbonds to pay for their share of a provision for a plebiscite," Wil- treatment plant. It passed by a liams said. "You can't say,, 'Let's just go ahead and see what the similar tally, 1,864 to 1,615. folks want.' A plebiscite not At the time,city officials said the bond issue received more votes binding." than the charter amendment and However,Wilsonville City Attor- should be interpreted as the will of ney Mike Kohlhoff said 'Oregon the people. case law indicated that approval of financing gave an automatic thumbs-up to the project's con- You can reach Rick Bella at cept. He cited• a case involving 503-294-5114 or by e-mail at rick- Yamhill and Marion counties in bella@news.oregonian.com. which voter-approved financing to build a bridge was ruled to be an official endorsement of the project. "The Supreme Court found that when voters approved the bond levy,they also approved the public purpose of that bridge," Kohlhoff said. Tuesday's hearing was held the day after the city's $48 million treatment plant went online,mak- ing Wilsonville the only city in the metro area to draw its domestic water supply from the Willamette. City officials said Wilsonville switched to purified river water without a hitch, abandoning the old city wells that had failed to pro- duce enough potable water. Sign-in Sheet for Intergovernmental Water Board Meeting May 8, 2002 Name (Please Print) Would you like to speak to the Board? &e'lle-r Tr vC-7 G- L C<< Lx