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05/25/1993 - Packet TIGARD WATER DISTRICT 8777 S.W.BURNHAM ST. P.O.BOX 230000 TIGARD,OREGON 97281-1999 TIGARD WATER DISTRICT PHONE(503)639-1554 BOARD OF COMMISSIONERS Agenda 7:30 p.m., May 25, 1993 Call to Order 1. Minutes for May 11 meeting. Recommendation: Approve the minutes as written. 2. Discuss FY93-94 Budget. (Public hearing was held May 11, 1993.) Recommendation: Approve Resolution 4-93, To Adopt A Budget, Make Appropriations, Levy Taxes for fiscal year 1993-94. 3. Visitors comments. 4. Dissolution Plan - 190 agreement Recommendation: 1. Continue with preparation of the dissolution plan; or 2. Choose not to dissolve the District and become a partner in the 190 agreements instead. 4110, 5. Lake Oswego Water Supply Agreement: Report available Tuesday. TIGARD WATER DISTRICT BOARD OF COMMISSIONERS MINUTES - Draft 7:30 p.m., May 11, 1993 Commissioners Present: Bob Wyffels, Clarence Nicoli, Hill Hampton Absent: Audrey Castile, John Haunsperger Staff Present: Randy Volk, Operations Manager; Lorry Christian, Administrative & Human Resource Coordinator; Mike Miller, Senior Management Analyst; Nancy Johnson, Accounting Supervisor Absent: Jeri Chenelle, Administrative Director Visitors: Bob Santee, Jack Polans, Michael Brewin, John Acker, City of Tigard, TWD Employees Rusty Thomas, Brian Clancy. At 7:33 p.m., Chair Wyffels called the regular meeting to order. 1. Chair Wyffels welcomed the visitors. 4140,- 2. Minutes of the Board meetings for April 13 and May 4. A motion was made by Commissioner Nicoli to approve the minutes without change. The motion was seconded by Commissioner Hampton. Hearing no discussion, a voice vote was called. The motion was approved unanimously. Budget Hearing for FY1993-94. Chair Wyffels opened the budget hearing. He asked visitors who wished to speak about the budget to please limit their remarks to 10 minutes each. Commissioner Nicoli made a motion that visitor Bob Santee take as much time as he wanted to address the Board. The motion was seconded by Commissioner Hampton. The vote was approved unanimously. Visitor Bob Santee gave his comments regarding the budget. Chair Wyffels thanked Mr. Santee for his input, and said the issues would be discussed with the Administrative Director. Jack Polans said most of his questions and concerns were addressed or asked by Bob Santee.. Mr. Polans asked if he could make a copy of the recording from this meeting, and Chair Wyffels said he would be able to do that. None of the other visitors wanted to comment about the budget. Commissioner Nicoli made a motion to table the vote on the budget until after further discussion with the Budget Officer. The motion was seconded by Commissioner Hampton. A voice vote was taken. The motion was approved unanimously. 5/11/93 Minutes,Tigard Water District Board of Commissioners At 8:30 p.m., Chair Wyffels adjourned the public hearing for the FY1993-94 budget, and announced a brief recess. At 8:45 p.m., Chair Wyffels called to order the regular meeting of the Tigard Water District Board of Commissioner, and again welcomed the visitors. 3. Payment of vouchers. Commissioner Nicoli made a motion to approve the vouchers as listed. The motion was seconded by Commissioner Hampton. Hearing no discussion, a voice vote was called. The motion was approved unanimously. 4. Budget for FY1993-94. This item was tabled until a meeting on May 25 at 7:30 p.m. Visitors. Chair Wyffels asked if other visitors had comments they wished to make to the Board on the budget. Visitor Michael Brewin complimented the District on the TWD Newsletter then gave comments to Board on the budget. 5. Amending the Meter Installation Fees and Late Pay Penalty. *4111 0 °' Commissioner Nicoli made a motion for the second reading of Ordinance 2-92 to be done by title only. The motion was seconded by Commissioner Hampton. A vote was called. The motion was approved unanimously. Mr. Volk read Ordinance 2-92 by title only. Commissioner Hampton made a motion to approve the ordinance as read. The motion was seconded by Commissioner Nicoli. Hearing no discussion, a voice vote was called. The motion was unanimously approved. 6. Revision to Water District Employee Handbook. A motion was made by Commissioner Nicoli to approve Resolution 6-93, a resolution to update the Employee Handbook regarding paydays. The motion was seconded by Commissioner Hampton. A voice vote was called. The motion was approved unanimously. 7. Administrative Director's Report. Randy Volk reported that Tigard Water District is made up of the following approximate percentages by meters (not population) according to a new computer report. 2% Durham City 8% King City 17% Unincorporated Areas 72% Tigard City For six months we have been coding every single address in our system so that we can get a breakdown of connections by city. Our old computer system was designed with District boundaries in mind, not city boundaries. 2 5/11/93 Minutes, Tigard Water District Board of Commissioners 8. Chair's Comments. Chair Wyffels said there has been tremendous pressure on the Water District and Board during the past year, and to have accomplished everything that we have is very significant. Chair Wyffels said he appreciated that employees continued to do their best for the District and its patrons. 9. Commissioners' Comments. Commissioner Hampton said he was appreciated the input from Mr. Santee, and also is concerned about representation for the unincorporated area. 10. Other Business. Mike Miller, Senior Management Analyst, presented a summary of Resolution 7-93, a resolution to extinguish an easement recorded November 16, 1954, which covers the entire parcel of land for a non-specified water storage tank and waterline located upon Tax Lot 1500, Assessor's Map #2S 1 9BA. Commissioner Nicoli made a motion to approve Resolution 7-93. The motion was seconded by Commissioner Hampton. A voice vote was called. The resolution was approved unanimously. Hearing no further business, at 9:30 p.m., Chair Wyffels adjourned the meeting. tow 3 4 •441,5" InterOffice Memo To: Ho rable Chair and Board of Commissioners From: Je ' eenelle, Administrative Director Date: May 21, 1993 Subject: Additional Budget Information Information regarding public comments on 93-94 budget at May 11, 1993 public hearing: 1. The position of Office Assistant was approved by the Board of Commissioners in February, 1993. The position will be filled before the beginning of the new fiscal year. Since authorization was already given by the Board in the previous budget year, authorization was not requested again in the budget for the new fiscal year. The position is included in the new budget as an existing position, which it is. No new positions have been requested. 2. Estimated actual expenditures for the current fiscal year are vital in preparation of any budget. In fact, our staff work sheets used to prepare the budget had this information on them. Nancy took that column off the final worksheets and used "budgeted" numbers only, which is what the State requires to be in the budget. The "estimated" column can be left on in future proposed budgets, as long as we leave the "budgeted" column for the existing fiscal year also. 'tow 3. The 20% rate increase will generate approximately $582,050 in revenue. Lake Oswego has increased its rates to us by 17%. 4. The reasons for the increases in the current 92-93 FY budget appear to be numerous. All categories of expenditures increased, including water purchase costs in Materials and Services. FY1991-92 FY1992-93 Personal Services $799,548 $999,200 Materials and Services 1,732,360 2,166,200 Capital Outlay 602.524 918.200 Total $3,134,432 $4,083,600 5. The percentages divided between administration and operations are very rough, as was explained at our earlier budget meeting. It is expected that as we gain some history with these categories, we can refine these first estimates more precisely. 6. The Administrative Director's current salary is $61,914 annually. This position is not included on the step increase list, because the position does not have specific percentages of merit increases as do the other employees on the list. 7. This is the fourth budget in which the step plan for salary increases has been included. This year, staff had Cascade Employers Association(which has mainly private sector clients) do a benchmark survey to see if we were in the ballpark, or if we were too high or too low. They said we were in the ballpark and no changes were needed in order to pay comparable rates. Additional Budget Information, 5/20/93 8. The number of employees in each position is included in the summary at the top of each department's budget. 9. A five year capital improvement program was developed in 1991 which addresses the financing of needed projects. It was distributed to the Budget Committee at its meeting on April 13, 1993. The fiscal plan calls for a combination of funding sources, including system development fees, general fund, and reserve accounts. 10. The Water District is transitioning into a joint water agency created under an ORS 190 intergovernmental cooperation agreement. General obligation bonds cannot be used by an ORS 190 agency. 11. The District attempted to acquire the Baggenstos property for a reservoir site on Bull Mountain, off SW 141st Avenue. Mr. Baggenstos told the previous administrator he would consider selling if the capital gains tax laws changed. They did not, and he now refuses to sell to any of the utilities he says are hounding him for the property. 12. The Commissioners Stipend account was increased to cover the full amount allowed by law for 7 board members. The new joint water agency will have seven members instead of five, and current commissioners do not take the full amount allowed by law. Miscellaneous comments: 1. Lake Oswego's city attorney could not find any provision in the Oregon Revised Statutes that prohibits the city from providing us a guarantee of water. This was researched before the agreement was prepared. 2. A citizen stated that the Portland contract provides us with a firm supply of water subject to a specific ORS mentioned in the beginning of the agreement There is no reference to an ORS code section in that part of the agreement. The only reference to the ORS we found in the entire agreement is in the preface which states "ORS 190.003 to 190.110 authorizes units of local government to enter into intergovernmental agreements for the performance of their duties or for the exercise of powers conferred upon them." 3. As you know, the plan for paying for our portion of the Lake Oswego Main Transmission Line was to pay $500,000 out of our unappropriated ending fund balance which would be carried over into the following fiscal year when the construction funds will be needed. The remainder of the costs can be financed with revenue bonds; general obligation bonds are not a legal option for ORS 190 agencies. The proposed FY93-94 budget includes $125,550 to fund our half of the design and bid costs. 4. Our attorney has advised us that we cannot have an election to dissolve the district in just the unincorporated area until that is the only part of the district remaining. An election before June 30 would have required a district-wide election and the City of Tigard was adamantly opposed to that. Mrr 2 Now InterOffice Memo To: Honorable Chair and Board of Commissioners From: John Haunsperger, Commissioner Date: May 20, 1993 Subject: Additional Information Regarding FY93-94 Budget Here is additional information regarding the comments made by Bob Santee during the May 11 Board Meeting regarding the 1993-94 fiscal year budget: As you may remember, since the 1970's I have served as a member of the Tigard Water District budget committee. Although I wasn't able to attend the May 11 Board meeting, I did listen to the tape -- twice. I then reviewed my copies of budget documents from recent years and found the following discrepencies in Mr. Santee's "facts". Water Restrictions Mr. Santee said there had never been water restrictions during his tenure at Tigard Water District. In fact, however, in his 1986-87 budget message, Mr. Santee mentioned water restrictions which occurred in 1971 (while he was at TWD). Increased Rates from Lake Oswego Mr. Santee always mentioned in his budget messages that Lake Oswego could raise their rates to TWD by 25%. Contingencv Funds • Mr. Santee commented on the contingency fund, implying that his budget messages hadn't included this item. In fact, the following amounts were listed in the budgets: 1984-85 $50,000 1985-86 $300,000 1986-87 $200,000 • The 1987-88 budget mentioned $377,700 in a Capital Projects Reserve Fund, toward an estimated cost of$800,000 to $1,000,000 for a new Water District operations center. $283,000 was added to the Capital Projects Reserve Fund, leaving an ending balance of $488,800. • The 1988-89 budget showed $500,000 being added to the contingency fund, with a net ending fund balance of$420,500. Z . Additional Information re: FY993-94 Budget, 5/20/93 • The 1989-90 budget showed Operating Contingency of$500,000, with a transfer of$250,000 to the Capital Projects Reserve Fund, leaving a net ending fund balance of$579,000. $1,063,529 was the cost of the new TWD Operations Center. • The 1990-91 budget showed $514,100 in Operating Contingency, with a $1,000,000 Ending Fund Balance. • The 1991-92 budget showed $717,600 in the Operating Contingency fund, with $1,000,000 as the ending fund balance. System Development Charges were implemented during that year with $157,000 listed as a revenue fund. • The 1992-93 budget showed $309,600 in Operating Contingency Fund, with a $300,000 transfer to Capital Outlay, for a net ending fund balance of$1,000,000 Transmission Mains In the 1989-90 budget message, Mr. Santee recommended a 24" transmission main in parallel with the existing 16" transmission main to both Portland and Lake Oswego. 4r... Increases to Employee Wanes Mr. Santee said employee wages were too high. The 1987-88 budget showed a 4% increase to employee wages; the 1990-91 budget showed a 4.5% wage increase to employee wages, the 1991-92 budget showed a 5% wage increase to employees, and the 1992-93 budget showed a 4% increase.. Cost of Electricity Mr. Santee said the cost of electricity is $.10 per 100 cubic feet, across the board, to pump water to and within the Tigard Water District ($.05 to pump from the Bonita pump station to elevation 410, and $.05 to High Tor). In fact, however, this was a rule of thumb figure used by the former administrator in his calculations. While there is an additional cost for the electricity to pump water to higher elevations within the District, a recently completed analysis showed the electrical cost being $.025 per 100 cubic feet to pump water from the Bonita pump station--not $.05. Outside Consultants Mr. Santee said he's never used outside consultants. In fact, however, the following is a list of studies prepared by consultants: 1971 Water Supply and Distribution Study, Stevens, Thompson& Rynyan, Inc. 1977 Water Quality Examination of Willamette River Samples Taken From the Newberg Pool, Stevens, Thompson & Runyan, Inc. 2 Additional Information re: FY993-94 Budget, 5/20/93 1978 Water Supply Study, Willamette River, East Washington County Water Purveyors Committee, Stevens, Thompson& Runyan, Inc. 1979 Water Supply Study, Stevens, Thompson& Runyan, Inc. 1986 Water Supply Plan for Bull Mountain Area, Gilbert R. Meigs 1990 Water Supply & Water Distribution for Tigard Water District, Gilbert R. Meigs 3 TIGARD WATER DISTRICT RESOLUTION NO. 4-93 A RESOLUTION TO ADOPT A BUDGET. MAKE APPROPRIATIONS. LEVY TAXES. On the motion made by Commissioner , and seconded by Commissioner , and passed by affirmative action of the Board of Commissioners, on this 11 day of May 1993, Tigard Water District adopts the following resolution: BE IT RESOLVED, that the Board of Commissioners hereby adopts the adjusted budget, as approved by the Budget Committee, for Fiscal Year 1993-94, in the sum of $7,483,400 now on file at the office of Tigard Water District. BE IT FURTHER RESOLVED, that the Board of Commissioners, Tigard Water District, hereby levies the taxes provided for in the budget adopted in Paragraph 2 of this resolution in the aggregate amount of$152.325 and these taxes are hereby levied upon all taxable property within the Tigard Water District *taw as of 1:00 a.m., January 1, 1993. BE IT FURTHER RESOLVED, that the amounts for the fiscal year beginning July 1, 1993, and for the purposes shown below, are hereby appropriated as follows: GENERAL FUND Personal Services $ 1,039,700 Materials & Services 2,223,100 Capital Outlay 741,110 Operating Contingency 596,055 Transfer to Capital Projects Fund #3 300.000 Fund Total $4.899.965 SYSTEM DEVELOPMENT FUND Capital Outlay $ 128.000 Fund Total $ 128.000 c . BOND SINKING FUND Principal Payments (FY 1993-94) $ 140,000 Interest Payments (FY 1993-94) 25.018 Fund Total $ 165.018 TOTAL APPROPRIATIONS $5,192,983 NON APPROPRIATED BUDGET REQUIREMENTS General Fund $ 1,073,735 System Development Fund 580,000 Bond Sinking Fund 8,682 Capital Projects Reserve Fund #3 628.000 TOTAL NON APPROPRIATED FUNDS $2.290.417 TOTAL $7.483.400 *,,,,,,, BE IT FURTHER RESOLVED, that the Board of Commissioners, Tigard Water District, Certifies to the county clerk and county assessor of Washington County, Oregon, the tax levy made by this resolution and shall file with them a copy of the budget as finally adopted. THIS BUDGET IS HEREBY ADOPTED and appropriated by the Board of Commissioners, Tigard Water District, on May 11, 1993. TIGARD WATER DISTRICT Bob Wyffels, Chair Date ATTEST: Jeri L. Chenelle, Administrative Director Date Page 2 -- Tigard Water District Resolution No. ?-93 InterOffice Memo To: Hon able Chair and Board of Commissioners From: Jeri henelle, Administrative Director Date: May 21, 1993 Subject: Dissolution Plan Statement of the Issue At its meeting of May 11, 1993, the Board of Commissioners approved Resolution 5-93 initiating proceedings to dissolve the District and liquidate all assets. Staff was directed to prepare findings of fact for the May 25 meeting. Recommendation 1. Continue with preparation of the dissolution plan; or 2. Choose not to dissolve the District and become a partner in the 190 agreements instead. Analysis 44kr, Resolution 5-93 states: "The best interests of the inhabitants of the District will be served by the creation of an intergovernmental entity to deliver water services within the District. To accomplish this objective, the Board of Commissioners hereby initiates the dissolution of the District and the liquidation of the assets of the District through conveyance of the assets to the new intergovernmental entity." It has long been our commitment to support the dissolution by election of the District, so that assets could be transferred to the new 190 agency and the District could be kept intact. The simplest way to achieve dissolution would have been to have a District-wide election, but the City of Tigard was opposed to this. Therefore, the Board of Commissioners agreed to the more cumbersome method of waiting until the a cities withdrew and holding the dissolution election only in the remaining portion of the District(the unincorporated area). A basic principle of the Board has been that the unincorporated area should have representation on the new Board of the joint water agency. All parties agreed to this. The original idea was that the elected body for each governmental entity would appoint delegates to the new board. The appointing authority for the unincorporated area would be the County Commissioner. Although there was tentative acceptance of the original idea by the Commissioner, further analysis on the County's part has resulted in its declining to be the appointing authority. The County's legal staff and administration have concerns about liability and the consequences of their stepping into the water service arena, where they are not currently involved. ,... In a meeting this week with staff from the County, our three service cities, and the Boundary Commission, the County reiterated its unwillingness to become involved in the 190 agreement. Dissolution Plan 05/21/93 Page 2 The Boundary Commission representative stated its desire would be that a taxing entity remain in �`''✓ the area that could levy taxes in case of major regional water improvements. She also indicated it was unlikely that the Boundary Commission would approve dissolution of the unincorporated area without representation on the new board. However, Pat Reilly informed me two days later that this is contrary to previous information he has received from the Director of the Boundary Commission. I will join Mr. Reilly in a meeting with the Director on Monday to clarify the Boundary Commission's position. By our Tuesday meeting, I will have more information for you. If the Boundary Commission does want us to remain, TWD could join in as a party to the ORS 190 Agreement, if the other parties agree. TWD could exist as a "shell" organization that would continue to have an elected Board of Commissioners (from the unincorporated areas). One of the Board's members could be appointed to the board of the new joint water agency, although the remainder TWD Board might meet only once or twice a year. There would be some limited expenses such as elections, insurance, budget preparation, etc. The TWD Board could contract with the joint water agency for staff assistance to handle those administrative tasks. This would meet the needs of the Boundary Commission(as stated at our meeting this week) and would also meet the desire that our unincorporated customers have representation. A further update will be provided after the meeting next week with the Boundary Commission.