09/14/1976 - Minutes a 'dm
Tigard Water District
9-76 Regular Meeting
September 14, 1976
PRESENT: Clarence F. Nicoli, Chairman
Hugh A. Brown, Secretary
Don W. Thomas
R. Verne Wheelwright
Robert E. Santee, Administrator
John P. Miller, Foreman
Kenneth W. Baines, Attorney
VISITORS: James L. Savage, Coopers & Lybrand (9 : 00 p.m. )
Thomas M. Satterlee, Foster & Marshall Inc.
Contractors interested in bid opening:
Thomas L. Henshaw (Henshaw Construction Co. )
James P. Dooney (Leonard Adams Insurance)
Everett Finch (Copenhagen Construction Co. )
Tom Meyers (Copenhagen Construction Co. )
Harry Pajutee (North American Contractors)
`I'' Richard Martin (Richard L. Martin, Inc. )
Rodney J. Castelda (ARCOMM Construction Co. )
Dan Kovtynovich (Kovtynovich, Inc. )
John Kovtynovich (Kovtynovich, Inc. )
Arthur M. James, P.E.
The meeting was called to order by Chairman Nicoli
at 7: 33 p.m.
Motion was made and seconded to approve the minutes
of the last meeting, as written. Motion carried unani-
mously.
The Administrator opened and read aloud the sealed
bids of the following contractors for construction of the
10-MG reservoir, all of whom were prequalified:
Richard L. Martin (Lake Oswego) $ 979 , 850
Thomas L. Henshaw (Eugene) 993 ,000
No. American Contractors (Portland) 1,107 ,000
ARCOMM Constr. Co. (Milwaukie, Or. ) 1, 110 , 526
Copenhagen Constr. Co. (Portland) 1, 121, 900
The Administrator estimated that the cost of the
reservoir would be about 10 per gallon or $1,000 , 000 .
(Estimated prior to bid-opening)
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Tigard Water District
Minutes (Continued)
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The Administrator opened the envelope, but did
not announce the bid submitted by Kovtynovich, Inc. ,
because the bid was not based upon the specifications,
as prepared, but upon prestressing proposed by VSL
Corporation and James, Inc. Mr. John Kovtynovich
demanded that the bid proposal be read aloud. The
following figures were then read by the Administrator:
Kovtynovich, Inc. (Eugene) : VSL system-- $981, 200
James system-- 955, 200
Motion was made by Verne Wheelwright and seconded
by Hugh Brown to award the contract to construct the 10-
MG reservoir, after study by the Administrator and staff,
to the apparent low bidder whose proposal was in accord-
ance with the plans and specifications of the Tigard
Water District. (Richard L. Martin) . Motion carried
unanimously.
Mr. Arthur James spoke on the merits of his system
of prestressing. He stated that the office of the Attor-
ney General of Oregon had informed him that bid-rigging
or collusion to the exclusion of other qualified bidders
whether it is done by a professional engineer or an em-
ployee of a water district, directed toward a system
with one contractor (including one system of prestressing) ,
is criminal. Mr. James stated that he was not making
this charge, but that someone, whom he would not name,
was investigating several similar cases . He mentioned
that he had been collecting information about BBR and
Max Dykmans for some time. He said that by passing up
the James system, the Board of Commissioners was forcing
taxpayers of the State of Oregon to pay extra money with-
out making an adequate investigation of alternatives .
The Administrator advised that there were three
different companies capable of bidding on the BBR pre-
stressing system:
BBR Prestressed Tanks, Inc. (Max Dykmans)
Preloading Prestressing, Inc.
Crom Prestressing, Inc.
Both John and Dan Kovtynovich commented about the
undesirable feature of using taxpayer' s money for the
construction of a tank with just one type of prestressing.
Motion was made and seconded to pay the vouchers .
Motion carried unanimously.
Nifty
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Tigard Water District
Minutes (Continued)
fir.
Motion was made by Hugh Brown and seconded by Don
Thomas to authorize and empower the Chairman and Treasurer
to borrow funds up to $100 ,000 on a short-term basis for
purposes of meeting current expenses until tax revenues
are received. (See complete motion attached) . Motion
carried unanimously.
Motion was made by Verne Wheelwright and seconded
by Don Thomas to adopt the resolution, as attached hereto,
for the issuance of $1. 9 million in General Obligation
bonds on November 9 , 1976. Motion carried unanimously.
Motion was made by Verne Wheelwright and seconded
by Don Thomas to approve the proposed contract to trans-
fer the district' s rights to 2 , 500 acre-feet of water
from Scoggin Dam to the City of Hillsboro, Utilities
Commission, pursuant to an acceptable change in a con-
dition of the contract imposed by the U. S. Department
of Interior which states:
"The provisions of Article (9) of the
contract whereby the first construction charge
installment is not due until water is first
used and a buildup in the installments during
`°"'w the first 10 years is provided until the total
quantity of water under contract is used, shall
not be applicable. The first construction charge
installment shall be payable on December 31, 1977
and amounts to $40 , 450 . 48 . A bill in this amount
will be submitted at a later date. "
Motion carried unanimously.
No action was taken on the suggested change in
water service from Metzger to Tigard Water District
for those residents along S . W. North Dakota Street.
The Administrator was instructed to coordinate with the
Administrator, Metzger Water District, on possible
solutions in accordance with the desires of the Board
of Commissioners, Metzger Water District.
James Savage, Coopers & Lybrand, explained the
contents of the audit report for the year ended June
30 , 1976 which was just published, He expressed the
view that the opinion officially rendered in the audit
report about the accounting procedures and financial
status of the Tigard Water District was outstanding.
He said that it had been a difficult, hard struggle
and a major accomplishment by the water district staff
Nov to attain this excellent, unqualified opinion. He
stated, further, that one would not often see this kind
of an opinion in most organizations , such as water dis-
tricts.
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Tigard Water District
Minutes (Continued)
Mr. Thomas Satterlee, Municipal Consultant,
Foster & Marshall Inc . , made a presentation on services
his firm could perform for the Tigard Water District on
the proposed $1. 9 million bond issue.
The Board preferred to deny a request by Mr. Cook,
owner of Cook' s Pharmacy, Canterbury Square, to estab-
lish a pay station at his store.
The Chairman requested additional information about
the 6-inch PVC main which the district had installed and
the 8-inch PVC main to be installed for Tualatin Develop-
ment Company. These mains were designed to transport
tertiary water from the Unified Sewerage Agency treatment
plant to the Summerfield Golf Course for irrigating pur-
poses. Eventually these mains would be extended for the
King City Golf Course and Tigard High School. The Admin-
istrator explained that the district became involved with
this project because our assistance was requested and that
it appeared that such a project would be particularly
beneficial to the district if our potable water were not
used for irrigating golf courses during peak demand periods.
Presently, the Summerfield Golf Course is provided water
,0100 from our system on an interrupible basis . Professional
assistance, including cost estimates , was provided to
the Summerfield Civic Association, King City Civic Associ-
ation, and Tigard School District 23J regarding the use
of tertiary water for irrigation. Those entities were
advised that they could save considerable sums by the
purchase of treated water instead of potable water from
the Tigard Water District. ($670 versus $80 per million
gallons) . Attempts to obtain bids for the pipe installa-
tion with the requirement that the actual construction
had to be completed prior to the blacktopping of Alder-
brook Drive proved to be fruitless . Upon request of
Tualatin Development Company on behalf of the Summerfield
Civic Association the Tigard Water District installed the
main on a "time and material" basis plus overhead, which
are our normal charges.
The Administrator was advised that the Tigard Water
District, as a general rule, should not be getting in-
volved with water systems or pipe lines other than those
to supply potable water to the district ' s inhabitants.
Motion was made to adjourn at 10 :10 p.m. Motion
carried unanimously.
iiror
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