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09/08/1992 - Packet TIGARD WATER DISTRICT 8777 S.W.BURNHAM ST. P.O. BOX 230000 TIGARD WATER DISTRICT TIGARD,OREGON 97223-9917 BOARD OF COMMISSIONERS PHONE(503)639-1554 REGULAR MEETING 7:30 P.M., AraliaT 8, 1992 AGENDA -L,(- 84.•4-e42-- Call (' " 'zCall to Order 1 . Oath of Office -- Mr. John T. Haunsperger. 2. Visitors. 3. Minutes of the August 11 regular and September 1 special Board meetings. Recommendation: Approve minutes. 4. Payment of vouchers. Recommendation: Approve payment. 5. Rate Structure to Encourage Conservation. Recommendation: Join with Portland and other water providers in the region in a cooperative pricing study to encourage conservation. `..r 6. Emergency Water Curtailment Plan. Recommendation: Approved the attached Emergency Water Curtailment Plan. 7. Administrative Director's Report. A. Insurance rates. B. Water conservation kits. C. Warning letters. D. Revenues. E. Work Accomplished Report will be distributed Tuesday, September 8. 8. Chair's Comments. 9. Commissioners' Comments. 10. Other Business. 1 1 . Executive Session. The Tigard Water District will go into Executive Session under the provisions of ORS 192.660 (1)(e), (h) and (j) to discuss real property transactions, and possible litigation. Adjourn 11 41 TIGARD WATER DISTRICT 8777 S.W.BURNHAM ST. 144 P.O. BOX 230000 TIGARD,OREGON 97223-9917 PHONE(503)639-1554 TIGARD WATER DISTRICT BOARD OF COMMISSIONERS August 11, 1992 Minutes of Regular Meeting PRESENT: Board of Commissioners: Audrey Castile, Chair Clarence Nicoli Jon Kvistad, Secretary Bob Wyffels Staff: Jeri Chenelle, Administrative Director Randy Volk, Superintendent Lorry Christian, Administrative Assistant Mike Miller, Engineering Technician III Visitors: Bonnie Turner, Trish Toedtemeier, Brian Clancy, Sam Morrison, Rusty Thomas, all TWD employees; Gina Maloney, TWD consultant; August Erdman, Ben & Helen Castile, Trent Irwin, Frank Knight, Jack Brown, Phil Crum, John Haunsperger, Joe Jesenik, Betty N. Carolson, Rod `w Kvistad, Ken Christopherson, Don Brewer, Will Alexander, Charles O'Malley, Bill. Ryan, J. Trykan, Steve Trykar, Helen Inglis, Linda Whalen, James Whalen, Janet B. Goddard, Robin Franzen, The Oregonian, Donna Schmidt, Tigard Times, Gary Beck, Channel 6 TV, Camerman and reporter from Channel 8 TV. Call to Order at 7:30 p.m. 1. Visitors. Chair Castile welcomed the visitors and thanked them for coming and for their participation, and asked them to sign the sheet for visitors and write"yes" if they wished to address the Board, asking speakers to limit their comments to 3 minutes. 2. Resolution to approve minutes of the July 14 Board meeting. A motion was made by Commissioner Jon Kvistad and seconded by Commissioner Clarence Nicoli to approve the minutes of the July 14 meeting. There was no discussion and a voice vote was called. The motion was approved unanimously. 3. Resolution to approve payment of vouchers. A motion was made by Commissioner Nicoli and seconded by Commissioner Kvistad to approve payment of the vouchers. Commissioner Kvistad asked about M &I Inc.: Superintendent Randy Volk said it was an equipment supplier. Commissioner Robert Wyffels asked about the following (Superintendent Randy 'fir Volk answered): (1)Water Food&Research Labs Inc.--(that's where we take our routine samples of 8/11/92 Minutes, Regular Meeting, Board of Commissioners water, and water samples for analysis of lead and copper content); (2) Legacy Laboratory- (that's where employees have their new employee physicals); (3) Frahler Electric- (they did the electrical work for the new pump station at the 10 MG reservoir); and(4)One Call Concepts- (this is a monthly charge for a service that takes information from callers who want utility lines located before construction and notifies the affected utility organization). Hearing no more questions, a voice vote was called. The motion passed unanimously. 4a. Ordinance 1-92: An ordinance finding that a water shortage exists, adopting rules to restrict water usage, and providing for enforcement of violations, and declaring an emergency. A motion was made by Commissioner Kvistad and seconded by Commissioner Wyffels to approve Ordinance 1-92. Administrative Director Jeri L. Chenelle was asked to give an overview of the ordinance. She said a draft of this ordinance was presented at the July Board meeting, but the Board decided to wait until Portland adopted their enforcement mechanism, which has now happened. Ms. Chenelle's recommendation was that the Board adopt the same penalties and fines as Portland, for consistency sake. Most of the other 22 water providers using Bull Run water are doing the same. Many TWD customers called the District asking for some kind of enforcement for the violators, because most people are doing a good job of conserving, and its unfair for the violators to not be penalized. The ordinance sets up the procedure and describes the water restriction measures, with an accompanying resolution declaring an emergency and enacting the ordinance. When the emergency is over, another resolution can be approved rescinding the restrictions, yet there will still be an official record of the water restrictions, if they are needed again. Commissioner Kvistad asked if TWD was required to match the fines imposed by Portland, or if TWD could just implement a structure. Ms. Chenelle said TWD doesn't have to match the fines, but Portland asked that we do have the same kind of restrictions. Chair Castile asked that the word "extreme"be deleted from the title. Ms. Chenelle said that was an oversight--it should have been deleted. Chair Castile asked the other Commissioners for their input about adopting this ordinance which imposes penalties to violators of the water restrictions. She said she knows the TWD Staff has talked to many people, respects the Staff recommendation, and favors the fines because of the consistency issue, however, she also knows there are many people who want to continue without fines. Commissioner Kvistad said he doesn't like Portland's fee schedule, and wanted to know whether TWD patrons have been complying with the restrictions. Ms. Chenelle said yes, TWD water usage is down, and there are just a few violators who repeatedly violate the restrictions by watering their lawns. The present computer utility billing system doesn't allow us to track water usage--it would need to be done manually. Commissioner Kvistad said he wants another option, besides fines, for violators. Ms. Chenelle said the fine structure can be changed to different amounts, and even if flow restrictors were used, they would restrict the flow of water so severely that violators might not prefer them to a fine, and warnings and policing would still be required. Commissioner Kvistad asked how many violators would be fined today because of violations. Ms. Chenelle said there are about 25 people for whom 2 complaints have been received, and approximately 6 who have been turned in 3 times. The Staff believes that if penalties were in place, most of that would stop. Commissioner Nicoli said he previously was opposed to fines, but after attending a TWD employee meeting this morning, he understands the lack of fines would create a situation where TWD employees would be wasting their time. He heard a news report from Seattle saying that Seattle has collected fines from only 3 or 4, and now he thinks that fines are effective as a deterrent. Commissioner Nicoli referred to the notebook with approximately 200 sheets, each a complaint about a violation of water restrictions. A TWD employee has made a special visit for each complaint, to remind patrons about the water restrictions. Chair Castile said she doesn't like to impose any punitive measures,thinks it is important to have '`""` consistency and also to have a follow up program, and after talking with Staff, she agrees with imposing 2 8/11/92 Minutes, Regular Meeting, Board of Commissioners fines. Commissioner Wyffels said he thinks the penalties would be adequate, and the potential publicity about the violations would help stop the violations. He favors the fines. Chair Castile repeated that the reason for the contract with the Portland Water Bureau is to provide a back up water supply as a protection for TWD customers, and while we may not like it, the contract obligates TWD to be consistent with Portland. * e2"1 je`O iq v Chair Comas e invited visitors to speak to the Board about this issue: John H"unsperger said he thinks that in addition to fines, he wants there to be higher water rates for higher usage of water. Chair Castile said that isn't possible with the present computer system, but is something they will look into with the new computer system. Don Brewer said his original purpose was to try to persuade the Board to not do any rationing, but as long as they were seriously considering imposing fines, he wanted to make sure there is consistency in interpretation by those enforcing regulations. Ken Christopherson represented a Portland landscaper, and was against fining home owners for water use because the restrictions are unfair, because it's an attack on the landscaping industry. He favored a system of water allotment, with people deciding for themselves how they will use the water. He also favored educating people about conserving water inside their homes. Charles O'Malley said he was concerned about the new growth which will be lost, for 124 new home owners. These owners have been in their homes 1-2 years, are replacing shrubs and some lawns, and are concerned about the loss of that investment. Commissioner Wyffels said they can water the shrubs. Ben Castile brought copies of a map of the King City Highlands area Mr. O'Malley referred to. New lawns and trees were planted, and these are used to produce oxygen. Mr. Castile is concerned that the brown, withered, unwatered lawn and unwatered young trees make a health hazard because they don't produce oxygen, and he is trying to get a doctor's opinion saying whether or not this is a healthy place to live. Mr. Castile says this isn't a healthy place. When the wind blows, it blows oxygen around, but during times when there isn't wind, there isn't enough oxygen. He asked to be able to water lawns for 3 minutes a day to keep the grass healthy. Chair Castile asked if we had received any response from Oregon State University about oxygen content. Administrative Director Chenelle said no, she sent a fax to a horticultural turf specialist at OSU, but as yet hadn't received a response. Ms. Chenelle recommended that if someone brought a doctor's opinion saying that not watering their lawn is a health hazard for them,they receive an exception, but it would have to be decided on a case by case basis. Regarding watering lawns, she said she is going by Portland's guidelines which say that lawns seeded or sodded before March 1, 1992, are supposed to be sufficiently established and able to survive. Commissioner Wyffels reminded everyone that shrubs and trees can be watered between 6 pm and 10 am. Chair Castile confirmed that if Mr. Castile brought a doctor's opinion saying that not watering a lawn created a health hazard, the Board would look carefully at allowing an exception. Chair Castile read an article about a University of California study saying that(1) less than 4%of California's developed water system is used for watering of landscaping homes, businesses, parks, golf courses, and roadways; (2) a green lawn is the second largest producer of oxygen next to fir trees; and (3) a green lawn has a cooling effect of 10 tons of air conditioning, while absorbing air pollution. She said the water shortage is a problem that we must deal with because it is a life sustaining substance that we need. Chair Castile asked again that people talk with her after the meeting or write their suggestions for water conservation. Helen Inglis reseeded her lawn and said as a result of not being able to water it,she will lose her lawn and investment, and will need to pay$500 to reseed it next year. Administrative Director Chenelle clarified that if the area had been bare ground before, Ms. Inglis would be able to water. Ms. Inglis said it was sod which was reseeded. Ms. Inglis doesn't like watching neighbors watering shrubs, which is OK, but not being able to water her lawn. girt 3 8/11/92 Minutes, Regular Meeting, Board of Commissioners Unidentified Speaker talked about the newspaper article quoting the Mayor of Tigard saying that Tigard doesn't have a water shortage and shouldn't have water restrictions, and that the contract with Portland should be renegotiated. Chair Castile said she was at the workshop meeting where Mayor Edwards comments were taken out of context, didn't have consensus agreement, and the issue didn't come up in the regular council meeting. The speaker said it's confusing to read conflicting information. He was in favor of allocating water and letting people use the water as they wish. Commissioner Kvistad reminded everyone that using Bull Run water is a protection for the TWD community, and it isn't feasible to renegotiate the contract at this time. Commissioner Wyffels said TWD patrons are to be commended--they have taken the water restrictions seriously, and per person, they are doing a better job of conserving water than people in Portland. He said he wanted to comment on the statement that there is lots of water in the Clackamas River--he was in that area today, and he could walk across it--there isn't the abundance of water there that we've been led to believe. Every source of water in the area is being tapped. Chair Castile talked about the study being done to search for long term source of water. Commissioner Kvistad asked Administrative Director Chenelle if Ordinance 1-92 was adopted without adopting Resolution 12-92, would TWD be in legal, contractual compliance with the City of Portland without obligating us to implement fines. Ms. Chenelle said no, it wouldn't--if the Board doesn't chose to do penalties, they can be removed from the Ordinance, but we would still need to have something saying we are adopting these restrictions. Resolution 12-92 is the enabling document which puts TWD in compliance with the City of Portland. Sam Morrison, TWD employee, said not only is there not much water in the Clackamas River, but there isn't any snow pack in the mountains, and it will take more than one winter to put back the water supply, so if the Board doesn't adopt the restrictions and fines this year, they might have to do it next year. Unidentified Speaker said he was in favor of allocating water. Administrative Director Chenelle said again it ,,. isn't possible to do that this year, but it will take a new computer and about a year to get information and the system to do that. Commissioner Kvistad asked Ms. Chenelle to clarify that even if the Board implemented the ordinance, they wouldn't have to levy penalties. Ms. Chenelle said if there is a fine structure included in the ordinance, fines should be levied--we shouldn't have fines in the ordinance that we aren't going to enforce. Bill Ryan said his lawn has turned to hay. He called the Portland Water Bureau, and was told that if he could prove that by complying with the no-lawn-watering restrictions his lawn would die, then he could have an exception and could water his lawn. In talking with a major landscaper, he was told the rain on July 5 saved the lawn--that if you lose the crown on a rye grass lawn,the lawn dies, and without watering, 25%to 50%of the lawn might be lost. Mr. Ryan next called the radio show Lawn&Garden. Gary Willis was a guest on last Saturday's show responding to the issue. Gary Willis said he might lose 30%of his lawn due to not watering. Mr. Ryan has only 300 sq. feet of lawn, and could keep it watered with the over-spray from watering his shrubs and plants. Mr. Ryan is bothered by seeing other lawns which are green, and there isn't anything in place to stop them from watering, but he still feels he shouldn't water his lawn. This afternoon Mr. Ryan called the Portland Water Bureau and asked how many tickets had been issued involving a fine, and was told there had been none. Chair Castile and Administrative Director Chenelle said Portland's warning/fine structure hasn't been in place long enough for the second violation (carrying a fine)to be issued, and people have stopped violating the restrictions when the fines were established--that the fine structure is acting as a deterrent. Chair Castile said she appreciated the comments, and needed to continue on with the agenda. She said she had heard from the public, at this meeting, that they are upset about lawns not being able to be watered, when shrubs and other areas can be. She said she believes that if the Board says there aren't Now any penalties involved,that people will begin to water and there will be more problems. People who came 4 8/11/92 Minutes, Regular Meeting, Board of Commissioners to speak are the ones who care, and they aren't the ones who will violate the restrictions. As a responsible Board, if they chose to not impose fines because of the comments of the speakers tonight, many TWD patrons will begin watering again. Commissioner Kvistad says he still favors not being punitive by imposing the fines. Chair Castile suggested that the matter be tabled for another month. Administrative Director Chenelle asked that it not be continuedf the TWD Staff needs to have direction in this issue. They have been dealing with numerous calls from the public, ranging from the initial calls of"what are the rules",to complaints and comments of"what are you going to do about the guy down the street", and "if your Board doesn't adopt penalties tonight so you can do something about the guy down the street who is watering, then I'm going to start watering tomorrow." Ms. Chenelle said she is very concerned that more people will start watering, and we will increase our water usage such that TWD needs to use Bull Run water, which is getting lower and lower. She asked that the Board not continue the issue another month. Commissioner Kvistad asked that if the ordinance is implemented, that the Staff work toward developing options. Ms. Chenelle said yes, Staff is aware that getting the new computer system is the first step, and the necessary research can be done also. Commissioner Nicoli said he still favors the Staff recommendation of adopting and imposing fines to act as a deterrent. Chair Castile reread Ordinance 1-92, and called for a voice vote. The motion passed unanimously. 4b. Resolution 12-92: A resolution declaring an emergency and authorizing enactment of water restrictions and enforcement measures. A motion was made by Commissioner Wyffels and seconded by Commissioner Nicoli to adopt Resolution Nape 12-92. Discussion was called for. Hearing no discussion, a voice vote was called. The vote was as follows: Commissioners Yes No Abstain Audrey Castile X Jon Kvistad X Clarence Nicoli X Bob Wyffels X Resolution 12-92 was approved with a vote of 3:1. A motion was made by Commissioner Kvistad to direct TWD Staff to begin implementation of a revised billing structure which monitors daily and monthly water usage for all patrons. There was a brief discussion. There was no second, and the motion died. A motion was made by Commissioner Wyffels that TWD create a graduated rate structure plan, similar to what other utilities use, with a flat rate for a base amount, with an increased rate for water used over the base amount. There was a discussion. The motion was seconded by Commissioner Kvistad. The discussion continued. Administrative Director Chenelle offered to develop a report which would give the steps necessary to implement a graduated rate structure. The Commissioners agreed, and the motion and second were withdrawn. Chair Castile called for a 5 minute break. When the meeting reconvened, Administrative Director Chenelle acknowledged the Board for making the difficult decision about imposing fines for violators of water restrictions. Ms. Chenelle introduced Gina `i " Maloney, consultant, who wrote the report comparing other water districts'conservation and curtailment 5 8/11/92 Minutes, Regular Meeting, Board of Commissioners plans. Ms. Maloney will coordinate the enforcement process, developing the procedures and guidelines. �.r The Commissioners thanked Ms. Maloney for the excellent report. 5. 190 Agreements between TWD and City of Tigard. Administrative Director Chenelle suggested the Board might want to discuss the 190 agreements in Executive Session. Commissioner Nicoli said he wanted TWD to initiate a proposal with the specifics needed for TWD, not accept a resolution written by the City of Tigard. A motion was made by Commissioner Kvistad and seconded by Commissioner Nicoli to reschedule this item for the September or October meeting when there will be a fifth Commissioner appointed to the Board, and after they get a legal opinion of the resolution. There was a discussion. Chair Castile said she wished other Board members had attended other TWD Advisory Group meetings--it would have been helpful if they all had been part of the discussions. She had said the City of Tigard has the option of moving forward at any time, and intends to do that, if we stop the cooperative process. The resolution isn't a commitment to a 190 agreement, its a commitment to go forward. Commissioner Wyffels said the meeting the previous day had been "spirited", and the resolution, as it appeared now, was more generic than had previously been written. He said the resolution assures the cities that TWD wants to continue the discussion and the process will be evolving. Commissioner Kvistad objected to the completion date of June 30, 1993, and to the dissolution of the District until some of his questions have been answered. Chair Castile said that the resolution says that TWD is willing to be part of a cooperative agreement to look into a joint water agency. We can, at any point, disagree with what is happening and drop out of the discussions. The City of Tigard would still have the option of taking other action. Discussion continued. Chair Castile said that a week ago, when City Council met,the Mayor of Tigard told her he had consensus Now, of the City Council to present a resolution to take over the Water District. Chair Castile asked him if he would allow the process to happen through the TWD Advisory Group. The Council agreed, wanting the Mayor to go through the Advisory Group process, and decided to write what they had heard to date, to include: (1)TWD would stay intact; (2)the employees wouldn't be jeopardized; and (3) TWD would have representation on a new Board. At the Advisory Group meeting yesterday, it was decided that those were things which needed more time to be looked at with legal counsel, and to have time for negotiations. When those things were taken out of the resolution, the things that were left were the items which were in the resolution presented. The resolution, to Ms. Castile, seemed to be non-threatening to the TWD Board except for the June 30, 1993 date, and that was put in just to assure them that we were moving in a forward direction, which is why they added"or as soon as the process allows." Commissioner Kvistad said he would be in favor of a resolution with a starting date for us getting involved in a process for discussing 190 agreements in good faith, but wouldn't vote for an agreement with a completion date of"June 30, 1993, or as soon as the process allows." The discussion continued. Commissioner Nicoli said he thought the June 30, 1993 date was like a threat, and he didn't like it. Administrative Director Chenelle suggested that the June 30 day be deleted, with the understanding that we are all working toward that--the concern is that we might not make it,that issues may come up and we want the opportunity to fully discuss our concerns. She said she thought it wouldn't be a major problem, as long as we were making a good faith effort, but the cities wouldn't want the June 30 date to stop the process. Chair Castile mentioned Exhibit B as a partial list of issues to be discussed. Hearing no more disucssion, a voice vote was called on the resolution to reschedule this item for the September or October meeting when there will be a fifth Commissioner appointed to the Board, and after the get a legal opinion of the resolution. Nome6 8/11/92 Minutes, Regular Meeting, Board of Commissioners Commissioners Yes No Abstain StoreAudrey Castile X Jon Kvistad X Clarence Nicoli X Bob Wyffels X Without a majority vote,the resolution failed. A motion was made by Chair Castile to present the resolution as corrected, with the dates deleted, and (Exhibit A)from Section 4 be deleted. Commissioner Kvistad said he wants legal counsel to review the resolution. There was no second, and the motion died. A motion was made by Commissioner Kvistad to send the resolution for legal counsel review and schedule a vote on the resolution at the September or October meeting, whichever meeting has a fifth Commissioner. There was no second, and the motion died. The Board decided to continue discussing Item 5 in Executive Session, following the rest of the agenda. 6. Chair's Comments. A. Chair Castile asked about the budgetary impact of the effect of water restrictions. Administrative Director Chenelle said Staff hasn't yet projected costs or revenues, but just got usage figures for July. Staff has done some prioritization of present projects, and will present a report to the Board at its next meeting. B. With Metro,the subcommittee found that water is a regional issue and needed to be on the agenda. 1400. C. She understands the TWD picnic was a success. 7. Commissioners' Comments. A. Commissioner Kvistad commented on the quotes from Mayor Jerry Edwards in Robin Franzen's 8/2/92 article in The Oregonian. B. Commissioner Wyffels commented on the representation of the entire District on the Board-- that is hasn't been dominated by any one area. The Board is now actively seeking an applicant for Commissioner for the Board from Durham or King City. C. Commissioner Wyffels also thanked the TWD employees on their work during the stressful time of water restrictions. The Board supports them, and needs to make sure the Board's policy and direction are clear so it can be communicated to District patrons. D. The Commissioners praised the TWD mailer about water restrictions, saying they had heard many positive comments about it. Thanks went to Administrative Assistant Lorry Christian for coordinating the production and mailing. E. Chair Castile said she appreciates that every time she calls the Water District,the answering voices are cheery and pleasant. 8. Administrative Director's Report A. The Goldschmidt subcommittee on water and fire have made a preliminary recommendations %ow which will be finalized at a meeting on Wednesday. Recommendations include: 7 8/11/92 Minutes, Regular Meeting, Board of Commissioners (1) Consolidation: not a blanket decision to consolidate water services by county--that consolidations are occurring naturally, with regional water providers working together; and Na.. (2)Control: only the sourcing part of water should be decided regionally, that the retail sales part should be done locally. Commissioner Kvistad said he had attended 2 meetings recently with regional people thinking that planning and sourcing of water should be a Metro concern, and service should be done locally. B. TWD mailer on water restrictions was mailed recently. C. Status of Lake Oswego proposal--still nothing to report on our proposal, Lake Oswego hasn't responded. D. Board vacancy--we sent notices to the cities and the library. We have received two applications, and have the name of a third. Commissioner Kvistad suggested a subcommittee of 2 commissioners plus Administrative Director Chenelle to screen the applications. Chair Castile asked Commissioner Kvistad to chair the subcommittee, and Commissioner Nicoli said he would like to serve on the subcommittee also. The Commissioners agreed to have a special Board meeting on Tuesday, September 1 to select a Commissioner, and discuss the 190 Agreement. E. The State of Oregon has mandated that all water agencies serving more than 10,000 population prepare a water curtailment plan within 30 days, dealing with the current water situation, and other potential crisis situations. Mr. Miller is working on the plan, which will need to be coordinated with Lake Oswego's and Portland's. It will be ready to be presented to the Board ___ to adopt at the September Board meeting. It will need to be revised as changes occur in the future. 9. Other Business John Haunsperger asked about landscaping for the High Tor reservoir site on the top of Bull Mountain. Superintendent Volk said landscaping was planned at that site for this fall along with the landscaping of the 10 MG reservoir site(after the construction of the new pumping station), but will make sure it is taken care of within a week or so. 10. At 9:50 p.m., Chair Castile adjourned the regular meeting and the Board, with Administrative Director Chenelle, went into executive session under the provisions of ORS 192.660 (1)(a), (e), and (h) to discuss employment of public officers and employees, real property transactions, and possible litigation. At 10:11 p.m., the Board came out of executive session and reconvened the regular meeting at 10:12 p.m. A motion was made by Commissioner Kvistad and seconded by Commissioner Wyffels to: (1)forward the resolution (regarding the 190 agreement)to legal counsel for an opinion; (2) then have the resolution be presented at the special Board meeting (prior to the regular Board meeting on September 8)for discussion; (3) so the resolution can be voted on at the September 8 Board meeting, when there will be a fifth Board member. Hearing no discussion, a voice vote was taken. The motion passed unanimously. Hearing no further business, the meeting adjourned at 10:14 p.m. r 8 TIGARD WATER DISTRICT 8777 S.W. BURNHAM ST. P.O. BOX 230000 TIGARD,OREGON 97223-9917 PHONE(503)639-1554 TIGARD WATER DISTRICT BOARD OF COMMISSIONERS SPECIAL MEETING 4:00 P.M., SEPTEMBER 1, 1992 MINUTES PRESENT: Board of Commissioners Audrey Castile, Chair Clarence Nicoli Bob Wyffels Jon Kvistad (arrived at 4:15 p.m.) Staff Jeri L. Chenelle, Administrative Director Lorry Christian, Administrative Assistant Mike Miller, Engineering Technician III C. Akin Blitz, consulting attorney Visitors Nov, Polly Campbell, Tigard Times Call to Order at 4:02 p.m. Chair Castile said Rena Cuzma, Executive Director of Metro will be speaking about "Consolidation of Local Governments", at the 1993 National Economic Outlook Conference put on by the National Association of Business Economics, on Sept. 17, and suggested that a Commissioner attend. Chair Castile presented a letter from the City of Tigard requesting the District to waive the rebate fee for frontage along Winter Lake Drive at Summerlake Park. Mike Miller, Engineering Technician III said the developer had installed a 12" main and is entitled to a rebate of approximately $8,000 for the frontage, and it isn't the Water District's money which is involved. The matter was referred to TWD Staff. 1. Appointment to fill vacancy of Commissioner in position #2. Commissioner Nicoli said the applicants included Dale Evans, Roberta C. Schumann, John Haunsperger, George E. Morgan, and Hill Hampton. The subcommittee of Commissioners Nicoli and Kvistad recommended John Haunsperger to fill the vacancy of Position #2. 9/1/92 Minutes of Special Board Meeting A motion was made by Chair Castile and seconded by Commissioner Nicoli to law accept the recommendation of John Haunsperger. Commissioner Wyffels approved. A voice vote was called. The motion passed unanimously. 2. Executive Session. The Tigard Water District went into Executive Session at 4:13 p.m. to discuss Resolution 13-92 regarding 190 agreements between TWD and the Cities of Tigard, Durham, King City, and unincorporated areas, under the provisions of ORS 192.660 (1)(h), and (j) to discuss proposed exchange or liquidation of public investments, and possible litigation. Included in the executive session were Administrative Director Chenelle and Attorney Akin Blitz. At 6:19 p.m., the Board came out of executive session and reconvened the regular meeting. A motion was made by Chair Castile and seconded by Commissioner Wyffels to accept Resolution 13-92 as revised. Hearing no discussion, a voice vote was called. The motion passed unanimously. The meeting adjourned at 6:21 p.m. 2 9/8/92 Agenda %%we 7 F. Administrator's Report (cont'd) Work Accomplished in August a. TWD installed 24 - 3/4" water services for Berkley Estates, a single family residential development located on SW 108th Avenue and SW Titan Lane. b. TWD installed 2 sampling stations, one in Berkley Estates and the other in Jubilee Place. Under a new policy of the District, each new subdivision must provide the District with a sampling station. The developer purchases the device and District employees install it at the same time as water services. The purpose of the sampling station is to provide the District with a readily available sanitary sampling point for the required routine monthly water samples. c. TWD installed the first 6 - 3/4" water services for Bull Mountain Meadows, a single family residential development located between SW Bull Mountain Road and SW Sunrise Lane. d. TWD installed nine (9) 3/4" water services for Jubilee Place, a single family residential development located at the west end of SW View Terrace off SW 93rd Avenue. e. TWD installed 29 - 3/4" water services for King City Highlands No. 5, a single family residential development located south of SW Beef Bend Road east of SW 131st Avenue. f. TWD installed two (2) 2" water services for two new commercial buildings at the Ted Nelson Business Center, Phase 3, located on SW 72nd Avenue south of SW Sandburg Road. g. TWD installed one (1) 1" water service for Washington Mutual Bank located on SW Durham Road west of SW 113th Avenue. h. TWD installed 30 - 5/8"x3/4" meters, six (6) - 1" meters, and two (2) 5/8"x3/4" temporary meters for the month of August. i. Private contractor installed 450 feet of 8" D.I. pipe and one (1) fire hydrant to serve the first six lots of a 41 lot single family residential development located between SW Bull Mountain Road and SW Sunrise Lane at SW 147th Avenue (Bull Mountain Estates). j. Private contractor installed 4,425 feet of 12" D.I. pipe; 1,265 feet of 8" D.I. pipe; 570 feet of 6" D.I. pipe; and 10 (ten) fire hydrants to serve 64 single wl,w family residences located on SW Scholls Ferry Road south of the proposed Walnut (Murray Road) Street extension (Castle Hill). 1 9/8/92 Agenda __,,. k. Private contractor installed two (2) fire hydrants to complete the water main extension project for the GTE Equipment Switching Building located on SW Scholls Ferry Road, 1,000 feet south of the intersection of Old Scholls Ferry and Scholls Ferry Road west of SW 135th Avenue. I. Private contractor installed 700 feet of 8" D.I. pipe; 130 feet of 4" D.I. pipe; and one (1) fire hydrant to serve 24 single family residences located on SW 108th Avenue and SW Titan Lane (Berkley Estates). m. Private contractor installed 240 feet of 6" D.I. pipe; 160 feet of 4" D.I. pipe; and one fire hydrant to serve nine (9) single family residences located at the west end of SW View Terrace off SW 93rd Avenue (Jubilee Place). Work To Be Accomplished in September a. TWD to install 35 - 3/4" water services for Bull Mountain Estates, a single family residential development located between SW Bull Mountain Road and SW Sunrise Lane. b. TWD to install 64 - 3/4" water services for Castle Hill, a single family residential development located on SW Scholls Ferry Road south of the proposed Walnut (Murray Road) Street extension. vvaire c. TWD to install one (1) 1" water service for the new GTE Switching Equipment Building located on SW Scholls Ferry Road. d. TWD to install 12 - 3/4" water services for King City Highlands No. 6, a single family residential development located south of SW Beef Bend Road, east of SW 131st Avenue. e. TWD to install four (4) 2" water services for Pac Trust Business Center, Phase IV, Buildings 165, 166, 167, and 168, located on SW Durham Road west of SW 72nd Avenue. f. TWD to install three (3) 2" water services for Pacific Corporate Center, Buildings 227, 228, and 229, located east of SW 72nd Avenue and south of SW Redwood Lane. g. Private contractor to install 1,010 feet of 8" D.I. pipe; 735 feet of 6" D.I. pipe; 205 feet of 4" D.I. pipe; and three (3) fire hydrants to serve the remaining 35 single family residences located between SW Bull Mountain Road and SW Sunrise Lane at SW 147th Avenue (Bull Mountain Estates). h. Private contractor to install 320 feet of 8" D.I. pipe to serve 13 single family residences located east of SW Hall Blvd. and north of SW Bonita Road (Colony Creek Estates No. 5). 2 9/8/92 Agenda 490 i. Private contractor to install 455 feet of 6" D.I. pipe to serve 12 single family residences located south of SW Beef Bend Road east of SW 131st Avenue (King City Highlands No. 6). Work to be Accomplished in October and November a. TWD to install 13 - 3/4" water services for Colony Creek Estates No. 5, a single family residential development located east of SW Hall Blvd. and north of SW Bonita Road. b. TWD to install 50 - 3/4" water services for Aspen Ridge, a single family residential development located on SW Bull Mountain Road between SW Hazeltree Terrace and SW McFarland Drive. c. TWD to install a pressure reducing station on SW Bull Mountain Road just west of SW Aspen Drive. d. TWD to install 42 - 3/4" water services for Morning Hill No. 9, a single family residential development located east of SW 135th Avenue north of SW Walnut Street. e. Private contractor to install 1,880 feet of 12" D.I. pipe; 60 feet of 8" D.I. pipe; No,,,. 880 feet of 6" D.I. pipe; and six (6) fire hydrants to serve 50 single family residences located on SW Bull Mountain Road between SW Hazeltree Terrace and SW McFarland Drive (Aspen Ridge). f. Private contractor to install 1,040 feet of 8" D.I. pipe; 470 feet of 6" D.I. pipe; 190 feet of 4" D.I. pipe; and three (3) fire hydrants to serve 34 single family residences located north of SW North Dakota Street at the west end of SW Black Diamond Way (Harts Landing). g. Private contractor to install 50 feet of 12" D.I. pipe; 820 feet of 8" D.I. pipe; 850 feet of 6" D.I. pipe; 120 feet of 4" D.I. pipe; and three (3) fire hydrants to serve 42 single family residences located east of SW 135th Avenue north of SW Walnut Street (Morning Hill No. 9). h. The following is a list of projects currently under review: - Anton Park No. 2 - 52 lot subdivision - Bull Mountain Meadows - 74 lot subdivision - Kerrons Crest - 42 lot subdivision - Tualatin View Apartment complex 3 13. Percentage of each type of water consumed, FY 1991-92 Month & Well Clackamas R. Bull Run Total Year Cu. Ft. Cu. Ft. Cu. Ft. Cu. Ft. Jul 1992 4,671 ,571 13,797,000 - 0 - 18,468,571 Aug 1992 4,717,910 15,955,000 - 0 - 20,672,910 Sep 1992 Oct 1992 Nov 1992 Dec 1992 Jan 1993 Feb 1993 Mar 1993 Apr 1993 May 1993 Jun 1993 Total 9,389,481 29,752 ,000 - 0 - 39, 141 ,481 23.99% 76.01% -0-% 100% 14. Unmetered water, FY 1991-92 Pumped Purchased Total Sold Loss Month Cu. Ft. Cu. Ft. Cu. Ft. Cu. Ft. Cu. Ft. Loss & Year x 1000 x 1000 x 1000 x 1000 x 1000 0/0 August 4,718 15,955(L.O.) 20,673 21 ,290 (617) (3)% 1992 -0-(Pt1d) Total: 9.389 29.752 39.141 48.102 (8961) (23%) (2 Months) *Monthly water losses are not accurate. Billing is accomplished every month, with one-half of the patrons billed for a 2-month period of water pumped/purchased computed on a monthly basis. 15. Summary of water purchased and/or pumped and water losses Fiscal Year Well Lake Osweao Portland Water Losses 1986-87 0% 96% 4% 10.5% 1987-88 0% 97% 30/0 3.9% 1988-89 3% 93% 4% 7.9% 8.81% avg. 1989-90 6% 90% 4% 6.05% 1990-91 5% 90% 5% 9.0% 1991 -92 7% 89% 4% 15.5% 1992-93 24% 76% 00/0 (22.9)% (2 Months) MEMO Nor TO: Honorable Chair & Commissioners DATE: August 31 , 1992 CAI FROM: Jeri L. Chenelle, Administrative Director SUBJECT: Rate Structure to Encourage Conservation Statement of the Subject At its meeting of August 11, 1992, the Board of Commissioners requested a report on the steps necessary to implement a rate structure which would have higher rates for high volume users of water, thereby encouraging conservation. The report is attached. Since that time, Portland has volunteered to coordinate a rate structure study. Recommendation Join with Portland and other water providers in the region in a cooperative pricing study to encourage conservation. Analysis Portland is entering into a study of rate structures which will encourage conservation. ,,. They have offered to manipulate date for interested agencies to put it in a format to assist us with developing our own rate plan. There is no cost to us for the initial steps of "data-crunching". Portland will ask us for the annual consumption for each customer, and they will feed it into their computer to determine the number of people who use 1-100 ccf, 100-200 ccf, etc. They will also develop a ratio of winter use to summer use, so that we can see exactly when peaking occurs and where seasonal pricing will have its maximum benefit. Each participating district will then have the option of determining for itself if it wants to have an increasing rate structure for higher-volume users, at what point the increasing rates should take effect, and how much more the rate will be. At this point, we may wish to retain a consultant or we may wish to do in-house analysis, depending on our work schedules and the complexity. The attached memo from Portland details the time frame and steps anticipated in this study. Also attached is a report prepared by Gina Maloney on the general steps necessary to implement an alternative rate structure, as requested by the Board. Alternatives 1. Do nothing. 2. Do our own pricing study. 3. Join with regional water providers to develop basic data. f e "ti CITY I OF •, Mike Lindberg,Commissioner •t. 4 o Michael F.Rosenberger,Administrator L. PORTLAND OREGON --7_'"j . ; 1120 S.W.5th Avenue Portland,Oregon 97204-1926 �u\\ '" BUREAU OF WATER WORKS Information(503)796-7404 DATE: August 18, 1992 TO: WATER MANAGERS ADVISORY BOARD FROM: Mike Rosenberger { Administrator SUBJECT: New Business Agenda Item - Joint Regional Conservation Pricing Study. Water Managers Meeting, August 19, 1992 I would like to place on tomorrow's Water Managers meeting agenda, a discussion of a concept for a Joint Regional Conservation Pricing Study. In order to give you an advance look at this item, I have enclosed (by FAX) a DRAFT scope of work that I hope can lead to a unified approach by all Bull Run Water utilities in developing water rates to encourage conservation beginning next summer. In addition, I have asked Bob Rieck, Director of the Bureau's Finance and Support Services Group and Jim Burke, Bureau Economist, to provide ' a presentation to you about this proposal . Discussion of this item and gathering an understanding of your Districts interest is particularly timely given the current supply situation and the high level of interest on the part of community leaders and the public in seeing water utilities in this region introduce pricing incentives aimed at reducing consumption. I apologize for the rather sudden introduction of this item, however, after the discussion tomorrow, if you have additional comments or questions concerning the study, please feel free to call me, Bob or Jim. Early next week I will give each of you a call to further discuss your interest. Joint Regional Conservation Pricing Study Preliminary Scope of Work August 16, 1992 This Preliminary Scope of Work is intended to provide a framework for a regional-wide study necessary to develop recommendations for implementing conservation pricing rate structures applicable to Water Utilities within the (Bull Run or Greater Portland Metropolitan Area) . The proposed goals and underlying assumptions for this study include: GOALS 1. Develop and recommend conservation pricing objectives and methodologies for adoption by water utilities within the (Bull Run System or Greater Portland Metropolitan Area) in accordance with the following suggested pricing implementation schedule. A. Implement a water pricing program, Phase I, aimed at reducing summer landscape irrigation demand beginning July 1, 1993. B. Implement a water pricing program, Phase II, aimed at reducing year-round indoor and outdoor water usage beginning July 1, 1994. 2. Conduct the study in a manner which considers the values of the community and maximizes public involvement and commitment. 3. Closely coordinate the development and implementation of the conservation pricing program with other conservation program objectives and activities. STUDY ASSUMPTIONS 1. That providing pricing incentives to customers through modification of rate schedules is the most efficient and expeditious manner of achieving water conservation currently available. ;f'2. That the conservation pricing goals must be coordinated with and be part of the utilities overall conservation program, i .e. , introduction of low flush toilets, low flow shower heads or landscape conservation techniques and public education can be enhanced and leveraged by the conservation pricing program. 3. That a conservation pricing study must be undertaken with care in that the financial performance of the utility can be negatively effected. 4. That the characteristics of a utility's meter reading and billing system needs to be considered as an important component in the design of the ` . pricing program. In general , the more frequent a pricing signal is sent so.r to customers, the better ability they have to adjust their consumption behavior and achieve the goals of the conservation program. Joint Regional Conservation Pricing Study 'N.r Preliminary Scope of Work -- DRAFT August 16, 1992 - Page 2. 5. That all water utilities within the region have similar but unique financial and customer characteristics, obligations and opportunities. As such, the recommendations from the study should be aimed at providing all water utilities with rate methodologies which could be applied to each unique utility. Said another way, the study would not determine conservation based rates for each utility but would provide a set of recommended formula that each utility could apply to their particular situation. 6. That all water utility customers within the region are encompassed by public communication media (TV, Radio and Newspaper) which are regional in nature. As such, the study should identify a public information/education plan which utilizes this media to the benefit of all utilities. 7. That the values of the community should be reflected in the conservation pricing program. As an example, lush, green landscapes are a value and a source of pride in this Region and help to define why this region is different than other areas within the country. This value should be considered in developing the program. 8. Because underlying notion of achieving water conservation through conservation pricing relies on customers making economic choices based on water prices, the customer is the key stakeholder in the development of the pricing program. As such, the study must contain opportunities for meaningful public involvement. The following broadly defined tasks are proposed to be undertaken in accordance with their accompanying schedule. TASK DEFINITIONS CONSERVATION PRICING STUDY - PHASE I TASK SCOPE Develop detailed Scope of Work for Phase I. Included in this task are an early identification of stakeholders, formation of a regional study steering committee, identification of technical staff within participating utilities, identification of consulting needs and development of request for proposals, detailed scoping of Phase I tasks and identification of coordination opportunities with other conservation program activities. Products from Task 1 should be subjected to a review by conservation experts at the October 15th Conservation Retreat. Time Frame: Sep 1, 1992 - Oct 15, 1992 Stakeholders: Commissioner's Office, PWB Conservation Project Team (McKeever, Dietz, Stickel , Rieck, Burke, et. al .) , policy advice and review by Water Managers (or subcommittee) , invited Joint Regional Conservation Pricing Study Preliminary Scope of Work -- DRAFT August 16, 1992 - Page 3. participants managing existing programs elsewhere. Appointment of Advisory Committee. 2. Information and Data Acquisition. Activities included in Task 2 include; Collection and summarization of experiences and techniques employed by other water utilities in developing, implementing and operating a conservation pricing program; Collection and reduction of statistical information about customers and their consumption behavior served by water utilities in the region; and, assessment and summarization of technical literature addressing consumer pricing behavior. Technical and statistical information developed in Task 2 will be useful in developing the detailed scope of work contained in Task 1 as well as providing essential information for development and screening of alternative pricing methodologies under Task 3. Time Frame: Sep 1, 1992 - Oct 31, 1992 Stakeholders: PWB Project Team, CBIS representative, selected staff from various PWB wholesale customers. 3. Develop and Screen Alternative Methodologies. This Task includes the development of alternative seasonal pricing methods, criteria for evaluating these methods and preliminary screening and selection resulting in a list of feasible pricing alternatives. Results from this Task will be incorporated into materials presented to focus groups for their evaluation in Task 4. Time Frame: Oct 15, 1992 - Nov 30, 1992 Stakeholders: PWB Project Team, PWB Financial Management representative, Water Managers, CBIS representative, Advisory Committee, review by consultant oversight team (or managers of existing programs elsewhere) . 44. Conduct Focus Group Sessions. This Task involves assessing a representative group of customers for their preferences, dislikes and suggestions for improvement of alternative pricing methods. The Focus Group Sessions are intended to gather essential information about public support of the various conservation strategies set forth in Task 3. This is also an appropriate occasion to "test" the public reaction to the full array of price incentives for both outdoor seasonal uses and year-around indoor conservation options. The information obtained in this Task $. provides the foundation for the rework of Task 3 information which is the objective of Task 5. Time Frame: Nov 1, 1992 - Dec 15, 1992 Stakeholders: Public Involvement Consultant, PWB Project Team, Joint Regional Conservation Pricing Study `o' Preliminary Scope of Work -- DRAFT August 16, 1992 - Page 4. advice and review by Water Managers, participating citizenry. 5. Refine Selected Methodologies. Using the results of the public opinion research completed in Task 4, this Task produces a "standardized" methodology for deriving and implementing seasonal pricing, selecting from one of the options described in Task 3. Refinements to reflect preference information gathered in Task 4 and purveyor operational and revenue needs will be incorporated in the recommended method(s) . Time Frame: Jan 1, 1993 - Feb 1, 1993 Stakeholders: Water Managers and their Financial Management staff or consultants, Advisory Committee review, PWB Project Team, PWB Financial Management representative, CBIS representative, City Attorney's Office representative. 6. Tailor Methodologies to Purveyor Requirements. With a recommended seasonal pricing methodology, this Task involves training participant water purveyors in the application of the seasonal rate pricing methods to their operations. This work includes the formulation of rate schedules, calculation of rates, revenue forecasts and assessment of financial impact. A workshop is Nue envisioned to provide training for purveyor staff and consultants. Time Frame: Jan 15, 1993 - Mar 1, 1993 Stakeholders: Water Purveyors Financial Management representatives, PWB Financial Management staff, PWB Project Team, CBIS representative, City Attorney's Office representative/special district's legal representative, Water Managers, water purveyor Board Member review. Fiscal Impact: For purveyors relying on contract consultants to derive rates and estimate financial consequences, estimated contract costs are between $5,000 and $7,500 for each effected district. 7. Conduct Public Meetings. This Task provides an open forum in each purveyor's service area for public comment and participation. It is the occasion that the public will be brought up to date on the development of seasonal pricing, as well as introduced to the basic components of the Phase 2 Conservation Plan efforts. The latter will focus on conservation objectives for business and industry as well as long-term objectives of water conservation for residential customers, including pricing incentives to achieve reduction in indoor usage and water-saving landscape options. Purveyor staffs will use these meetings to gauge public support and sentiment for the program, as well as alert themselves to areas of specific concern within their service area. Joint Regional Conservation Pricing Study NOV Preliminary Scope of Work -- DRAFT August 16, 1992 - Page 5. Time Frame: Mar 1, 1993 - Apr 1, 1993 Stakeholders: Public Involvement Consultant, Water Manager and staff representatives, PWB Project Team, Advisory Committee, Elected Officials. 8. Rate Ordinances. Task 8 is the formal adoption of rate ordinances incorporating seasonal pricing by the purveyors' governing boards. Time Frame: Mar 15, 1993 - Apr 1, 1993 Stakeholders: Boards of purveyor participants, Water Managers and purveyor staffs, PWB staff. 9. Public Information/Implementation. Drawing heavily from the information gathered in both the Task 4 and Task 7 activities, this Task spans the period several months before and immediately following implementation of seasonal pricing. Its objective is to inform customers in advance of the onset of the new rates of the reasons for the change and the expected effect on customers with different consumption levels. It will also explain how the rates will function and how managing water usage can limit individual ,,,�,, financial burden. This Task includes public informational meetings, billing insert mailers explaining the program, training of purveyor staff to respond to questions, establishment of charges adjustment procedures, implementation of the new pricing systems and rates, monitoring and evaluation of subsequent performance and financial effect, and other related price incentive programs to promote conservation. Time Frame: Apr 1, 1993 - Aug 1, 1993 Stakeholders: Public Involvement Consultant and purveyor/PWB staff, Press and TV News representatives, Water Managers' representatives, Advisory Committee, PWB Project Team. 10. Phase 2 Initiation. Announce basic framework of Phase 2 Conservation Plan in January, 1993. Begin detailed scoping process in June, 1993. Focus of the effort will be on long-term conservation strategies, including industrial/commercial and residential audits, household retrofit for low flow and appropriate conservation devices, xeriscape and lifestyle changes. Joint Regional Conservation Pricing Study Preliminary Scope of Work Schedule TASK AUG I I SEPTII I OCI AT NOV DEC JAN FEB MAR APR MAY JUNE JULY I I 1. Detail Scoping Phase I III II Aug 20 — Oct 15 III II I1I1III 2.Acquire Lit, Data,Other Experience I II Sept 1 — Oct 31 III 1 II1 3. Develop/Screen Alt Methodologies II 110 ct 1 — Nov 30 III II II II 4.Conduct Focus Group Sessions I 1 No"a 1 — Dec 15 III 5. Define Selected Methods 1 II Jan 1 — :eb 1 IIII 11 6.Tailor Methods/Final Evaluation I II Jan 10 — Mar 1 11111 7.Conduct Public Meeting I.. I Mar 1 —Apr 1 ill 111I1 8. Rate Ordinances Mar 15 — Apr 1 11 11111 9.Public Information/Implementation Apr 1 — Au 1 � - r,, ` I IIIIIIIIIIIIIIIIIIIII [ Intensive Public Participation Seasonal Pricing System Implementation t_ 18—Aug-92 I ) 1 STEPS NECESSARY TO IMPLEMENT A NEW RATE STRUCTURE Prepared For TIGARD WATER DISTRICT by Gina Maloney August 31 , 1992 STEPS NECESSARY TO IMPLEMENT AN ALTERNATIVE RATE STRUCTURE Rate design for a water utility is a process of matching the costs of service to be recovered to the unique economic, political, and social environments in which the utility provides service. The objective of the American Water Works Association in water rate design is."...A methodology that properly allocates costs to various classes of customers and then recovers these costs through a rate structure to maintain a self sustaining enterprise and which is not unduly discriminatory to any class of customer." Long and short term revenue requirements need to reflect goals. The goals need to illustrate to the public the district's fiduciary responsibility in setting rates and rate structures to recover cost of service and to fund future needs. The timing will depend on the criteria set for the process. For example, you may want to do nothing, in which case the time would be minimal up front, but may entail more effort in the future if there is no preparation for change. If you enter into a cooperative effort with other water providers it will provide the opportunity to combine resources on public information activities, but the minimum amount of time for certain activities would depend on the group's ability to move forward. The disadvantage of doing an independent study is that the public information and education activity will require much more time from staff and consultants than would a combined effort. The decisions about expenses can be made incrementally. You may want to pursue a cooperative study with other water providers for an initial evaluation at little or no cost to the district. If at that point there is sufficient reason to proceed with further action, you will have the option to move ahead. The five steps to selecting a rate structure described in this report need to be taken in successive order. You have the ability at each step of the process to make the decision to stop or to move to the next step. Page two outlines the five step process to selecting an appropriate rate structure. FIVE STEP PROCESS TO SELECTING A RATE STRUCTURE STEP 1 Evaluate Utility Environment and Customer Constituency STEP 2 Select Evaluation Committee STEP 3 Identify Alternative Rate Designs STEP 4 Develop Criteria for Evaluating Rate Alternatives STEP 5 Evaluate Alternatives and Select Appropriate Alternative 2 STEP 1 -- Evaluate Utility Environment and Customer Constituency. Now Both cost recoveries and non-cost-related goals such as conservation are elements to be considered in the decision making process. The mathematics of rate structure analysis can adapt to many different scenarios. It is important in the process to allow enough time for consideration and debate on the long term economic and social implications. Before you can offer options to the public, internal discussion and education about the issues, and identification of objectives coupled with an evaluation of the customer base characteristics are needed. STEP 2 -- Select Evaluation Committee. Public education and public perception of equity are a basic necessity in the process. Inviting participation and leadership from the constituency in the planning and evaluation process helps to add credibility to the decisions made by the district. There are several different rate models, and many versions of each model. The selection process has to do more with what will work for the community in terms of reasonableness and the perception of equity than with the actual mathematical formula. It is like building a 444.0, building or designing a road. The process needs public support and approval before it is instituted. STEP 3 -- Identify Alternative Rate Designs. The first decision to be made is whether or not the rate structure is consistent with state and local laws. You may wish to look at several rate structure models as well as variations within each model. Considerations here will include evaluation by different customer classes and customizing with variations that may work best for the unique qualities of the Tigard Water District. There a three basic rate structures that appear to be appropriate for Tigard to explore. A Uniform Volume Rate is one in which all water use is charged at the same rate to all metered units of consumption. An Inverted Block Rate requires larger volume customers to pay a progressively higher average rate for increased water use. Seasonal Rates establish a higher rate for water use during the utility's peak season. 3 STEP 4 -- Develop Criteria for Evaluating Rate Alternatives. Examples of criteria that can be developed are: 1.) Legality; 2.) Financial Sufficiency; 3.) Equity; 4.) Impact on Customers; 5.) Simplicity; 6.) Implementation; and 7.) Conservation. Each criterion should be weighed as to its importance and the community's philosophy. The evaluation committee plays an important role in developing relevant weightings STEP 5 -- Evaluate Alternatives and Select Appropriate Alternative. After selecting the criteria, and performing the previous steps, evaluation and selection of the appropriate alternative can begin. Each rate alternative should be analyzed as to its effectiveness in addressing the evaluation criteria. The process in this step is assisted if the criteria are assigned a score as to its effectiveness under each rate scenario. The ultimate selection should only occur after the public is allowed appropriate input, the economic and non-economic impacts of implementing the rate structure is fully understood by staff, management and policy makers, and after management has an opportunity to react to the analysis. ACTION ALTERNATIVES 1 . DO NOTHING - The do nothing alternative assumes no change in billing and consumer information; method of cost projection and rate setting; and no additional information regarding water sales, supply, and demand trends. The DO NOTHING alternative implies that there is no need for change in the billing system or the way in which the district does business. The district currently has and uses a limited amount of customer account data. The current method of projecting future needs is based on the actual expenditures from the previous year. The margin of error is minimal during stable, predictable times. When projecting the future impacts of capacity needs (capital expenditures), and of costs of doing business (commodity, operational, administrative, and regulatory), the potential for error is greatly increased when using this method. NNW 4 By choosing the DO NOTHING alternative,indirect costs might result from having to reconstruct statistics needed to evaluate water consumption by customer type, or by delays in working with the system that would require extrapolating data that would otherwise be available. The district should be prepared to explain to the public the rationale for not looking at alternative ways of doing business in a period of water supply shortage. And, the Portland Water Bureau is moving toward a conservation pricing structure that may impact its water contractors in the future. 2. INDEPENDENT RATE STUDY - This assumes the district decides to do its own rate study, independent of other water providers. The INDEPENDENT RATE STUDY option implies that the district wishes to take a different direction than other water utilities within the region. The INDEPENDENT RATE STUDY will require extensive research and analysis of customer usage patterns; costs and revenue trends. This independent research will be more costly and time consuming than a pooled effort. A very important aspect is the interactive involvement and communication with the community. When a change such as a rate structure is made, it is critically important to illustrate the cause and effect and to statistically validate the answers to questions that will be raised by the constituents. For example, "Why am I paying a different unit price for the same unit of water?" or "What's wrong with your current system?" The costs for an independent study will vary, based on the scope of work desired. The costs do not include acquisition of a new computer or related installation, programming, training, etc. Any costs related to changes needed for the existing computer are not included. An estimate of costs for a rate study is as follows: Financial Consultant - Conduct evaluation of customer base; identify alternative rate designs; develop rate model and analysis. ($6,000 to $12,000.) 5 Public Information Program - Develop meeting formats; prepare N.- materials and presentations for public forums; coordinate community involvement; preparation of presentations for public hearings; coordination of information to news media. ($4,000 to $8,000.) Implementation - If the district decides to implement a rate structure change, those consultants involved in developing the rate model and in the public information process will be needed to design procedures and to train and support staff in the transition. 3. JOINT REGIONAL PRICING STUDY - Participate with the regional water providers in the Joint Regional Conservation Pricing Study. This study will be performed in a cooperative effort with the Portland Water Bureau and the Bureau's wholesale water contractors. The Water Bureau staff will do preliminary statistical analysis and develop a generic rate model that may be used by any water provider. Customer characteristics will be defined and formulae developed based on information provided by those providers wishing to participate. There are a number of advantages for TWD to participate in this study. There is no obligation for the district to do anything but provide the appropriate data for inclusion in the initial analysis. After that, the district may choose to hire its own consultant to customize the rate model. This alternative will be the least costly overall, and it appears to be the most expeditious. Certain efficiencies are possible if the district wishes to participate in a pooled effort on public information and other tasks that may be commonly needed by all agencies in the area. At this point it will allow you to move forward with information gathering, and the collaboration with other agencies will provide support to staff in coordinating the five steps outlined above. There will be costs associated with this alternative for consultants and public information, however they should be less than the Independent Rate Study. It appears that the least costly and most effective use of Tigard Water District's financial and staffing resources to pursue a rate study would be to participate in the JOINT REGIONAL CONSERVATION PRICING STUDY. 6 �.. , . _, , _. , - 4 19P Oregon September 1, 1992 WATER RESOURCES DEPARTMENT Jeri Chenelle,Administrative Director Tigard Water District 8777 SW Burnham Street Tigard,OR 97223-9917 Dear Ms. Chenelle, The Water Resources Department has received your request for an extension in time for submittal of the emergency water curtailment plan for the Tigard Water District. The Department intends to work with entities to ensure meaningful compliance with minimal inconvenience. Your request for an extension in time is therefore granted. The District will now be required to submit the plan by September 15, 1992. Thank you for your cooperation in this program. If you have any questions,please contact Doug Parrow or Jack Donahue of my staff at 1-800-624-3199. .trr, Sincerely, ,. 6-4 C s� l it, Martha O. Pagel —3 Director - 1 :l= r .= vg, 3850 Portland Rd NE / Salem,OR 97310 (503) 378-3739 FAX (503) 378-8130 To : Jeri September 4, 1992 vyrr► The committee to prioritize the construction and expenditures for the 1992-93 fiscal year based upon the losses in revenue due to the extreme drought and conservation mandates for the summer of 1992, have deemed it necessary to table the decisions until we have seen the revenues and purchases for the month of September. At that time we will have complete and acurate records for two months and billing will all be at the new rate. July billings forSet #1 were half at the old rate and half at the new rate. '17 I \_X 1 l'u , seer. 3,r qq Water district board considers take-over plan TIGARD — The Tigard Water District Board has decided to con- sider the possibility of consolidating water services with the city. Commissioners signed a resolu- tion Tuesday afternoon indicating they were willing to look into the proposed consolidation,said Audrey t•The Times•September 3.1992•Pape 3A Castile,board chairwoman. The water board's agreement to consider consolidation is not neces- sarily an endorsement of the plan, Haunsperger a p p o i n to d Castile said. "If we can't do something better to seat on water board for our constituents, then we won't go ahead. We'll have to find out," Castile said TIGARD—Bull Mountain resident John Haunsperger has been *4,,,,.. �T`he cities--or appointed to the Position 2 seat on the Tigard Water District Board. Durham and unincorporated 'Bull Commissioners voted unanimously Tuesday to appoint Mountain had previously signed an Haunsperger to the post. intergovernmental agreement to "We are pleased that he is from an unincorporated area," said continue studying the consolidation board chairwoman Audrey Castile. proposal,Castile said. Haunsperger has an extensive background in electrical and Water board commissioners agricultural water systems,Castile said. refused to sign that resolution be- He works at Pacific Power and Light Co. as a communication cause of its specific nature. Instead and control technician and is active in the Electrical and Electronic they drafted a new resolution with Engineers Society of America. the same intent, but without all the Haunsperger has some experience with water systems after details. maintaining fertilizer and reservoir systems in a previous job,Cas- "We are all in agreement to move tile said. forward, but we just felt like we He was selected from five candidates to serve on the board. didn't want to lock ourselves in as Castile said she was pleased with the high caliber of people who specifically to a detailed resolution," Castile said applied for the position. Studies will be done on the issue, There will be another vacancy on the board Dec. 31 when coin- but ultimately it will take a vote of missioner Jon Kvistad resigns to join Metro. the people to approve any consolida- Castile said she hoped some of the same candidates will reapply, tion agreement,Castile said. for that post. "The public has to know what's going on. It will still have to go to public hearings before anything hap- pens,"she said. yam,, THE OREGONIAN LVED DAi EP.TEMBE1 199'2 City fines two more water users By GORDON OLIVER of The Oregonian staff The Portland Water Bureau has issued two more fines for violations of its water restrictions, for a total of five. The bureau also warned Portland- area residents to prepare for even more restrictions on water use this fall if the weather should remain dry. The city could announce added restrictions as early as next week, said Ross Walker, the Water Bu- reau's spokeswoman. The fines issued Tuesday were both to residential customers. One notice went to a new home at 9206 No ,, N.W. Wood Rose Loop in the Forest Heights subdivison. The listed own- er is the subdivision's developer, Nauru Phosphate Royalties Inc.,and $100 fine notice went to"Occupant," Walker said. Walker speculated that the lawn was probably new and could be le- gally watered. But since the prop- erty owner had not responded to a warning,•the city issued the fine,she said. The second notice was sent to 3132 • N.E. 143rd Ave. The listed owner is Bill McKenzie Real Estate and Prop- erty Management, but McKenzie said he recently had sold the house to Andrew Johnson. He said John- son had put in a new lawn this sum- mer. Walker said the city had not heard from Johnson. The first three fines went to the Overlook Restaurant in North Port- land and the Davis Business Center and the Parkrose Business Center, both in Northeast Portland. The city issues warnings for first- time violations of its water restric- • tions and fines,of$100 for those later caught watering lawns or washing Noire cars. The fines rise to $500 for four or more violations. yet " PORTLAND WATER BUREAU WATER QUALITY AND ENVIRONMENTAL ISSUES JULY 1992 NEW NAME, NEW FOCUS THE DROUGHT AND CONSERVATION We are changing the name of this newsletter Hot weather, lack of rainfall, and steady and broadening its focus to include water supply water demand have equated to exceeding the issues. These changes are the result of merging Bureau's 100 mgd water use goal. As a result, the former Water Quality & Environmental Policy additional water use restrictions have been added, Division of the Water Bureau with the Supply including a ban on car washing. (Commercial car Section of the former Engineering Division. Since washes recycle their water, and have not been our reorganization reflects a "whole system" restricted.) approach, we want our monthly newsletter to The Bureau has been using a conservative follow suit. approach to supply management to avoid heavy drawdown of reservoirs. The 100 mgd target for customer water use by customers is designed to COLUMBIA SOUTH SHORE SUPPLY stretch water supplies to December 3. Statistically, there is a 95 percent chance that heavy rains will fall by that date. The Bureau will begin its month-long pump One of the Bureau's objectives is to avoid test of the five wells in the Blue Lake Aquifer in using water in the lower depths of the reservoirs. mid-August. The test is designed to determine We want to avoid violations of federal and state well operation impacts on the movement of laws, as well as "boil water" conditions. If the contaminated groundwater southwest of Fairview Bureau's water supply were to violate the federal Lake. The test will also provide data to calibrate a laws twice in a 12-month period, we would lose groundwater flow model being developed by the our filtration exemption. Heavy rainfall at any Oregon Department of Environmental Quality time can cause turbid conditions. (DEQ). If the pumping has no significant effect To supplement the water supply, the Bureau on the contamination plume, DEQ may allow the is purchasing water from the Clackamas Water Bureau to continue using the wells to supplement District. We will also be using the Parkrose wells Bull Run supplies. to supply water to 5,500 customers in that area. (Outdoor water use restrictions still apply to those NORTHERN SPOTTED OWL RECOVERY customers.) Using the four Hayden Island wells is not a viable option: Two are contaminated. PLAN Another serves a very small service area. The fourth well has high levels of calcium carbonate, The Bureau has offered comments to the which would require pretreatment for commercial Forest Service on the Draft Recovery Plan for the establishments using boilers. northern spotted owl. One of the Bureau's The Bureau plans to supplement Bull Run primary concerns is that the plan maintain the water with groundwater during the August pump option for a third Bull Run reservoir to help meet test. future regional water supply demands. The Bureau also wants the plan to allow for mitigating the potentially catastrophic effects of fire and windstorm on owl habitat and water quality. A final plan is due for release by the end of 1992. BULL RUN - A PUBLIC RESOURCE BULL RUN RESOLUTION ACCEPTED BY CITY COUNCIL Some Portlanders think of Bull Run as the City's private water source. The Bureau hears Local environmental organizations have been suggestions to discontinue outside-city sales in the meeting with Commissioner Mike Lindberg and context of limiting growth or having plenty of the Water Bureau to develop a consensus-based water for Portland. resolution on Bull Run Watershed management for Water rights and land use laws make this a City Council consideration. The Resolution was complicated issue. The City of Portland does not passed by the City Council on August 5, 1992 own the watershed or the water. The federal Highlights of the Resolution include: government owns the land and grants the City • Requests an end to logging, with the permits for certain uses (as a water supply). The exception of removing the minimum forest state grants all water rights; the legislature has necessary to construct new water supply reservoirs authority to rescind them. and related facilities; Another factor in outside-City sales is the • Prohibits salvage logging except when it fact that the Bureau has legal contracts with the 22 is proven to be the most effective way to protect outside purveyors. They Bureau has contracted water quality and quantity; with most of the districts for more than 50 years. • Calls for the inclusion of the Little Sandy The outside water districts share the costs of River as a potential water supply source; our infrastructure, which means that Portland's • Identifies the purpose of the Management customers pay less for water. This also means that Unit buffer, along with any necessary size and the smaller water districts don't have to build their boundary adjustments; own treatment facilities. • Asks for ongoing research and water monitoring; • Requests permanent and adequate funding REGULATORY COMPLIANCE SUMMARY from the Congress and Secretary of Agriculture to carry out the research and monitoring activities. "" '"` The Bureau complied with all State and EPA Copies of the Resolution may be obtained by standards in June and July. contacting Cecelia Huynh, 796-7417. City of Portland Bureau of Water Works BULK RATE 1120 SW 5th Avenue U.S. POSTAGE Portland, OR 97204 PAID PORTLAND, OR PERMIT #653 TIG4PD WAGREW PO Boy TER DISTRICT TIGARD 230000 OR 97223-0328 — Now Portland to get more water By ERIC GORANSON would replenish reservoirs. of The Oregonian staff Portland Water Bureau workers will spend the Labor Day weekend The federal government has given setting up pumping equipment in Portland permission to tap a moun- the lake. tam lake for more water to combat Ross Walker, bureau spokeswo- the drought. man, said the Water Bureau proba- The President's Council on Envi- bly will begin tapping the lake on ronmental Quality has granted final Tuesday or Wednesday. approval to allow Portland to take Portland water customers still more water from Bull Run Lake. will be required to conserve water. The natural lake is at the headwa- The city will continue its ban on ters of Portland's watershed nine watering established lawns and miles west of Mount Hood. washing cars at home. Customers The city plans to pump up to 40 have rarely limited consumption to million gallons a day from the lake, the city's goal of 100 million gallons giving the city an adequate water source until Dec. 3, the latest date Please turn to projected for the start of rains that WATER, Page Al 4 low Water: Lake will augment other sources ■Continued from Page One of Lake Oswego. peril Portland's future watershed a day. Before the environmental coun- supplies,however. Bull Run Lake is a 270-foot-deep cil's approval, the city's request had The lake is slow to refill and had lake at the headwaters of the Bull been approved in record time by not recovered from last year's Run River. It holds 14.8 billion gal- Judy Levin, superintendent of 25-foot drawdown when Portland be- Ions of water. Mount Hood National Forest; John gan using lake water this year. Portland has the right to use 30 • Lowe,U.S.Forest Service Northwest Forest Service officials estimate feet of the water,but on Tuesday the regional forester; and Dale Rob- the lake refills only about 10 feet in city asked the U.S. Forest Service ertson,chief of the Forest Service in a normal year because it is at for permission to draw down an ad- Washington,D.C. • 3,160-foot elevation. They estimate it ditional 17 feet because usable water The approval requires the city to could take five years to refill. in the city's Bull Run reservoirs do an enviornmental assessment for That,city officials fear,plus a con- may not last until the start of fall all future drawdowns beyond 30 feet tinuation of the drought and Port- rains. and to offset any damage the draw- land's inability to use all of its wells The new supply will add 1.7 billion down has on fish. because of ground-water contami- gallons of water to the 4 billion gal- The city will be required to con- nation would mean continued water Ions of usable water left in the reser- struct new habitat for.wild cutthroat use restrictions for the city's 714,000 voirs. trout and other fish adversely af- customers. Water from the lake will supple- fected and to transport fish cut off Bull Run lake has been drawn ment water the city gets from its from normal spawning grounds to down severely only three times be- reservoirs, East Multnomah County other spawning beds. fore this year — in 1976, 1987•and wells, the Clackamas River and city Use of the lake's water could im- 1991. 'erre City lawn patrol issuing warning letters to some TIGARD — Five residents can and the lawn is wet, the sidewalk is expect to find warning letters in wet, the driveway is wet, but the their mailboxes this week from the sprinklers aren't running. We're Tigard Water District for watering keeping a record of those so we can their lawns in violation of local keep an eye on them,"Volk said. water restrictions. The district has created a full- The district began patrolling its time position just for patrolling service boundaries Monday looking neighborhoods in search of '44110, for violators, especially in the early violators,part of its penalty package morning hours. finalized late last week. People who are tagged with sub- When the district's patrolman sequent offenses face fines up to spots a violation, he notes the ad- $500. dress,date, time and specifics of the "We are going to issue five warn- violation. ing letters this afternoon," said Those accused of violating the Randy Volk, district superintendent. watering ban can contest their case "The letters will be issued to people with the district,Volk said. our employee has observed. These To challenge a warning letter or aren't reported violations, he actual- fine, people must submit a letter of ly saw the watering taking place." explanation outlining the district's Some other residences in the dis- error or special circumstance within trict have been earmarked for close 30 days to the district's customer scrutiny, service department, 8777 S.W. Bur- "He has been in areas at 5 a.m. nham St.,Tigard 97223. _,,,„, 6Q,... ,:,.�' ,g,„-1(q z Waterureau bares long-term water-saving plan II The strategy By SPENCER HEINZ - waste,” Commissioner Mike Lindberg effort involves the Water Bureau, the which is when a new Oregon law will includes of The Oregonian staff said while announcing the programs. city's Energy Office,Portland General require all new installations to be of "What's happened now," he added, Electric Co.,Pacific Power&Light Co. that type. So-called "ultra low-flow" incentives to Free water-saving kits for certain "is probably a wake-up call to really and Northwest Natural Gas Co. toilets use about 1.6 gallons of water households and neighborhoods. have us do a better job in the long About 2,000 of the kits will go to per flush,compared with up to 7 gal- a studyof A$100 rebate for buying a low-flush term." building owners who have worked Ions for traditional types.The program new toilet. Lindberg,who oversees the Portland with the city's multifamily weatheriza- is available only to customers of the pricing methods A water-pricing study to promote Water Bureau, said the items were tion program.The other 3,000 kits will Portland Water Bureau. Customers conservation. part of a four-piece program to address go to single-family households in tar- who want to participate must get in These are some of Portland's latest immediate and long-range water needs. get neighborhoods—Woodlawn,Ver- touch with the bureau for detailed in- drought-fighting weapons — unveiled The four programs call for: non, Lents and St. Johns. The Water structions about how to obtain the re- Wednesday for the Portland City Coun- •Distributing 5,000 water-saving kits Bureau figures the pilot project could bate.Owners of multifamily units may cfl, by the end of October to various homes save about 14,000 gallons of water per receive rebates for as many as five toi- "We hear people's message loud and as part of a pilot program. Each kit year in a four-person home. let installations per location. clear,that they really do support con- contains a low-flow showerhead,leak- •A $100 rebate, effective immedi- servation,and it is here to stay,and we detector tablets and devices to reduce ately, for people who buy and install Please turn to will never have enough water to water use with faucets and toilets.The new low-flow toilets before Nov. 1, WATER,Page C10 Water: Regional group to discuss issues of water policy •Continued,from Page Cl study will include wholesale water •The creation of a regional lead- Portland area has used an average "We expect to provide about 1,000 customers,such as the Tualatin Val- ership group to address water policy of 115 million gallons of water a day. rebates at a total cost of$100,000," ley Water District, Gresham, the issues.Lindberg said he had invited That compares with 169 million gal- Lindberg said."The program will be city of Tualatin and the Powell Val- officials from Metro, area counties Ions per day at this time a year ago. on a first-come,first-served basis." ley Water District. Possible rate- and several cities and water dis- pricing options could include a sur- tricts to participate on the panel. The Water Bureau,which has en- •A study that will lead, by next charge for summer use and a "We are all taking very seriously acted water restrictions to help deal July, to water-price and sewer-rate "block-rate" structure that would the future of our regional water sup- with the drought,so far has issued schedules designed to encourage impose one charge for a set amount plies,"Lindberg said. 332 warnings and three fines for vio- conservation. Participants in the of water. According to the latest figures,the lations of water restrictions. Here's how to flush $100 out of city for your new low-flow toilet The Portland Water Bureau has •1. Come to the Portland Build- toilets. Mail in the permit applica- ing inspector that you are applying 'announced rebates of up to$100 to ing's first-floor permit center, 1120 tion,plus$15,and receive the permit for the"ultra low-flow toilet"rebate its customers who choose to replace S.W.Fifth Ave.,to apply for a speci- by mall. so the inspector can verify that in- their traditional toilets with low- al permit. Pay $15 (or the regular •2.Use the bureau's list to buy an formation. flow toilets before Nov.1. permit cost if it is for new construe- approved model of toilet. Keep the •4.Mail in a copy of the permit, That is-when an Oregon law will tion)and receive the permit,an in- original receipt:.. \ the,original sales receipt and origi- require all;tQiletAsold in the gate fo :formational brochure and an,ap-, - ,-. ' k:•.,' ,,, - inki _t V do receipts,if use no°more Man'L6 galibn's per' `proved list of ultra low-flow toilets 'ai•`tall the T'orthrnel Ihreau of -'' y •-="7: flush.About 1,000,rebates are avail- , �Idings for plumbing inspection t... .. .,?-1:04 Wates' reau verifies `able on eii-st-c6me,`iit st=served ba- If you apply by mail,-phone'the a inspecter will complete a form'that the plumbirit inspection has sis.If you are a homeowner or con- Water Bureau to ask for the permit that verifies you have installed the been completteL,Within two weeks, 'tractor, here is the procedure for application form, the informationir,proper model of,toilet.If it is form'::,it i iis-to`you-a rebate check of up applying either in person or by mail: brochure and the approved list of new home,yon must tell the plumbs` to$100 - Tilis , 6/4.1R2---- Water take-over still on tap ByDONNA SCHMIDT The board also wants to fill a vacancy created by member Denis Borman,who recently resigned to move Of the Times to Europe. "I think the majority of the board is in favor of the TIGARD — City councilors agreed Tuesday night to move ahead with plans to abolish the Tigard Water process moving forward," said member Bob Wyffels. "We just want to make sure this is in the best interest of District and form a water agency operated jointly by the city and its neighbors,King City and Durham. the water district and its o Kvistad and Nicoli frownedwned at a June 30, 1993,tar- Meanwhile, Tigard Water District Board members get date included in the resolution to establish the new were deadlocked on the issue in a meeting a block from water agency. City Hall. Board Chairwoman Audrey Castile, who sat on the King City and Durham officials are expected to pass committee that drafted the resolution, suggested voting the same resolution but had not done so by press time. on the agreement without the target date,resolving that bier The city resolution calls for Tigard officials to take point at a later date. part in a transition team with officials from Durham, Kvistad said he was angry that he had received a King City, the Tigard Water District and the represen- copy of the resolution just hours before the meeting. tatives of the district's unincorporated areas. "I don't appreciate the process, getting this two The task force would be charged with creating a hours before we're supposed to decide on it," he said. separate water agency to oversee water distribution to Kvistad was also upset about recent public statements patrons now within the boundaries of the Tigard Water made by Mayor Jerry Edwards that the water district District. had been mismanaged and that water officials also have But district board members Jon Kvistad and mishandled local water restrictions. Clarence Nicoli said they wanted the resolution Edwards said board members received copies of the reviewed by an attorney before agreeing to the plan. resolution late Tuesday because of changes made to the "I want time to have legal counsel look at this," document Monday afternoon by the drafting commit- ! Kvistad said."That's all I'm asking." tee. N.rr ll�c -crt€cc , (7,> Tigard Water board blasts mayor IN Commissioners say Jerry dry weather. Edwards made negative and "The mayor is not helping us at uneducated statements all. He's making problems for this district," said Commissioner Clar- TIGARD — Water District corn- ence Nicoli. Referring to a resolu missioners considering a takeover tion the city had asked the district to proposal by the city blasted Mayor approve as a sign of its commitment Jerry Edwards for making what to takeover negotiations, he added, they called negative and uneducated "The mayor is threatening us. statements about the district. . ..There is no way I am going to "It might be nice for him to get,a accept what they wrote." handle on what we are doing over Commissioner Bob Wyffels said here before we make any kind of the mayor was wrong to suggest agreement with him," board mem- plenty of water was available from ber Jon Kvistad said. "I'm reacting the Clackamas. "Let me assure you, like this because I'm more than a I was up there today, and I could °ter little angry with the mayor." walk across it," he said. "There is Kvistad was responding to corn- not the abundance of water we have ments Edwards made a week ago been led to believe there is." while urging the City Council to "The mayor can have his opinion, hurry plans to form a consortium but he's not in the water business,", with King City, Durham and unin- Chairwoman Audrey Castile added. corporated Washington County to The wording of the resolution sug- govern the district. gested transferring control of the Edwards said state law gives cities district by July 1993, or as soon as the power to take over water dis- possible. Kvistad strongly objected tricts that are within their bounda- to the timeline and to the fact that ries. no time had been set aside for dis- Among other things,Edwards said trict lawyers to look at the docu' he did not think the areas served by ment. Largely because of his objec- the district were being well rep tions,the rest of the board agreed to resented. He said the district's 1983 postpone further consideration until water-purchase contract with PortSeptember. land was a mistake that has resulted The Tigard City Council unani- in mandatory water restrictions. mously passed the resolution at its Edwards said those restrictions Tuesday meeting. King City and were unnecessary because most of Durham are expected to consider it Tigard's water comes from the soon. Clackamas River, not Portland's Edwards said Wednesday he had Bull Run system. Kvistad said the not changed his position regarding district had to sign the contract to the district and intended to pursue guarantee a backup water source in having the consortium take it over. 'vr Tigard August 13, 1992 k�. �' ..., ,rt n. t. .9r...,�1 ; .-`'`"." ,v,�. "ty' Ha3 �� ,N `a � "�2, • • Water - wasters face fines By DONNA SCHMIDT Portland's rules call for issuing a warning letter Tigard Water District employee or verified by a Of the Times to first-time violators, with fines of $100, $300 witness. I don't think we'll have fines based on and$500 for each additional offense. anonymous calls.The violation needs to be docu- TIGARD — The Tigard Water District could Randy Volk, district superintendent, said it mented." begin tapping the pocketbooks of water wasters could be at least a week before the agency works Until the board adopted penalties, district within the next week. out the details of the enforcement program. employees were placing informational tags out- "I won't be fining anybody or sending out lining restrictions and conservation.Volk said the The Water District Board Tuesday night ap- warning letters just yet," he said. "We need to get district had contacted about 200 patrons proved a plan that puts in place fines up to $500 the procedure down,and that's what we're work- suspected of violating the water rules since for those who violate mandatory water restric- ing on now. There's a lot of things we need to do restrictions went into effect. tions. before we actually start fining people." Overall, Tigard Water District patrons have The restrictions banning lawn watering, car Although enforcement procedures aren't met water conservation goals set by the Portland washing, hosing down sidewalks and driveways, firmed up, Volk said the district probably would Water Bureau. So far, the district has not had to and any untended outside use of water have been not issue warnings or fines to people based on buy Bull Run Reservoir water. The district gets in effect locally since early July. anonymous complaints. about 95 percent of its water from the Lower The board agreed to use the basic structure of "That's one of the things we haven't decided. Clackamas River.It buys surplus water from Bull the Portland Water Bureau's penalty package. But I think a violation should be witnessed by a Run when local storage runs low. Ntivw Tigard water users face fines for violations By ROBIN FRANZEN only 5 percent per year, Portland's, Correspondent, The Oregonian contract with the district stipulates- that the district comply with water TIGARD — Local water users restrictions and enact penalties. haven't faced much in the way of Until Tuesday,the district was re i consequences for illegal lawn sprin- lying on voluntary compliance. kung and other violations during "I have this sense that-if we say§ the first five weeks of water restric- no penalties will be imposed, peoplei tions. - are going to water, and all heck is: That will change,however,follow- going to break loose," board Chair- ing the Tigard Water District's deci sion Tuesday to impose the same pe "Doman Audrey Castile said. nalties already in force in Portland. She added,however,that she con sidered the adoption of Starting immediately, violators fines only %N' will be subject to an initial warning the first step toward developing a letter,and then fines starting at$100 better enforcement system. for the first offense and increasing The board consensus was to en- to$500 for the third offense. courage conservation by changing The board unanimously passed the rate structure so those who use the enforcement ordinance. Howev large amounts of water would pay. er,water Commissioner Jon Kvistad more for it. A report on what that, opposed a resolution implementing would entail will be given to the the penalties. board in September. He argued that setting up a corn- So far, district patrons have cut, pliance system was enough to pro- water use by about 40 percent corn tect the district's contract with Port- pared with the same time last year.' land for backup water supply, but Because of conservation,the district, that actually imposing the fines was has been able to meet its goal of not unnecessary because of cutbacks al- drawing from Bull Run. The last ready made voluntarily. time it purchased Bull Run water The district gets most of its water was June 24. from the Clackamas River, but dur- ing hot weather it occasionally draws up to half its water from Port- land's Bull Run system. Even though that averages out to r0 ( THE OREGONIAN,THURSDAY,AUGUST 13, 1992 titr y =t a I I it water torture for Lindberg f you think the current water crisis has left you high and dry,consider where it's put Commissioner Mike Lindberg,the head of the Water Bureau. In this swelter of dying lawns and spy- ing neighbors,Lindberg is catching heat from Portlanders about the Bull Run water supply.Many are distressed that— while Portland taxpayers have spent$500 million to develop Bull Run—40 percent of the reservoir's 714,000 customers live outside the city. Lindberg insists that there are econom- ic,legal and moral reasons for Portland to continue sharing its water,particularly with customers in Gresham and the Tua- latin Valley. "Those water sales have reduced water. rates in the city by 25 percent since 1980, Lindberg said.The city is locked into 20- Year contracts and the Legislature,not to niention the courts,would not cotton attempts to break them. "I recently learned that the city of Port- land doesn't have eternal legal rights to th6 water in Bull Run,"Lindberg said. "The Legislature has the right to ensure that the water be made available to the re 'on." , "nut if economics,the law and morality argue for sharing the resource,politics hasn't joined the chorus.Those thankful ,customers in Gresham and Tualatin can't vote in city council races.Those that do vote are suffering the most in this d night. mdberg,newly elected to his fourth ter ,is lucky he was on the ballot in May, no November.In this summer of discon- ten ,many Portland residents are furious that they've had so little voice in the future of Bull Run. They argue that the real beneficiaries of lower rates are commercial customers, such as the Port of Portland,which has been draining the reservoir to clean ships in drydock.They are chafed that their tax „o,. dollars have developed a resource for cus- toniers outside the city. nd if their lawns forgive and for get the neglect when the rains A return,many voters promise to remember Lintoiberg the next time he's up for election....and finally make him sweat.