02/09/2000 - Packet FILE COPY I
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INTERGOVERNMENTAL WATER BOARD MEETING
Serving Tigard,King City, Durham and Unincorporated Area
AGENDA
Wednesday, February 9, 2000
5:30 p.m.
1. Call to Order
2. Roll Call and Introductions
3. Approval of Minutes - January 12, 2000
4. Water Rate Study - CH2M Hill
5. Director's Report
6. Public Comments
7. Non Agenda Items
8. Adjournment
Executive Session: The Intergovernmental Water Board may go into Executive
Session under the provisions of ORS 192.660 (1) (d), (e), (f) & (h) to discuss labor
relations, real property transactions, current and pending litigation issues and to
consider records that are exempt by law from public inspection. All discussions
within this session are confidential; therefore nothing from this meeting may be
disclosed by those present. Representatives of the news media are allowed to attend
this session, but must not disclose any information discussed during this session.
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Intergovernmental Water Board
Meeting Minutes
January 12, 2000
Members Present: Paul Hunt, Gretchen Buehner, Jan Drangsholt, Patrick Carroll,
and Bill Scheiderich
Staff Present: Ed Wegner, Kathy Kaatz, Mike Miller, Kim Swan and Craig
Prosser
Visitors Present. Paul Owen, Jane Turner, Roel Lundquist, and Art Griffith
1. Call to Order
The regular meeting of the Intergovernmental Water Board was called to order by Vice
Chair, Patrick Carroll at 5:30 p.m.
2. Roll Call and Introductions
Roll call was taken with all members present with the exception of Bill Scheiderich who
arrived at approximately 5:35 p.m.
3. Approval of Minutes—December 8, 1999
Motion was made by Commissioner Drangsholt to approve the minutes of the December
8, 1999 meeting. The motion was seconded by Commissioner Buehner and was passed
unanimously. Prior to agenda item number 4, Mr. Wegner introduced Craig Prosser the
new Finance Director as well as Kim Swan, Water Conservation Specialist for the City of
Tigard.
4. Water Rate Study— CH2M Hill
Mr. Wegner introduced Art Griffith who is with CH2M Hill's Seattle office and will be
presenting an update on the rate study and will answer questions before proceeding with
putting together scenarios to present to the Board.
Mr. Griffith began by discussing where the City of Tigard's water utility is currently,
changes that will be demonstrated within the next ten years, effects from a rate
prospective, the types of policy issues to be discussed, and how CH2M Hill will proceed
with the rate study.
Mr. Griffith continued with his presentation of the information that was distributed to the
Board.
IWB Meeting Minutes January 12,2000
Page 1
➢ 1999/00 Budget
➢ Water System Expenses, 1999/00 Budget
➢ Utility Outlook
➢ Water Supply, Project Placeholder
➢ Rate Forecasting Methodology
➢ Example Rate Forecasts: Projected Single Family Residential Volume Charge,
$/ccf
➢ Future Work
Board members asked the following questions of Mr. Griffith:
Commissioner Buehner:
➢ Does the purchase water costs include all charges with Portland? Mr. Griffith
stated it does include all costs including additional fees.
➢ Is the forecasting methodology of 1.2 average growth based upon the 1990 Metro
figure? Mr. Griffith stated it is and he continued by saying that growth effects
utility economics in a big way. Mr. Wegner stated that this figure also represents
King City and Durham as well.
➢ What kind of an assumption was used for the basis of the 24 million capital
improvement figure? Mr. Griffith stated that it is not based upon a known project
but was used to show the impact of varying amounts of capital.
➢ Was C112M Hill given any information about additional costs associated with
staying with Portland when they are required to put in a filtration plant? Mr.
Griffith stated he had not been furnished that cost information.
Commissioner Hunt:
➢ Mr. Hunt stated that he has been pursing a rate increase to began building
reserves, it appears that according to CH2M Hill presentation that was not the
objective. Mr. Griffith stated that the information that was presented does not
increase reserves but actually uses reserves. He continued by stating that the
utility needs to start with a baseline and build in reserve policies from there. He
stated that a rate schedule study would show how to build reserves.
Mr. Wegner referred to page 7 of the presentation which outlines how capital project's
would show. Commissioner Buehner stated that when discussing the perimeters for this
study, it was her understanding that a scenario would be created to show a reserve for the
long term water supply as well as a basis for maintaining or increasing our standard
capital reserves for completing ongoing capital projects inside the District as two separate
entries (reservoirs, pipe, etc). Mr. Griffith stated that this study demonstrates a fund
structure that is set up (water utility fund, system development charge fund and the CIP
fund) each having reserve balances. To date, Mr. Griffith stated he has not discussed
with the City what these future reserve balances will be. He stated that one of the tasks to
be completed next is to discuss this and incorporate into the scenarios. Commissioner
Buehner stated that there has been a lot of controversy associated with the long term
water project and as far as making a determination of what the rate should be and how
this decision will get sold to the rate payers. She continued by stressing the importance
IWB Meeting Minutes January 12,2000
Page 2
of being able to delineate the funds from general O&M costs, capital, and expansion as
the city grows and those funds needed for long term water.
Commissioner Carroll:
➢ Stated that he understood one of the goals of the study was to increase capital
improvement funds with or without a major project. He continued by stating that
this would allow placing new valves for water monitoring, purchasing land,
building reservoirs, etc. Mike Miller stated that this was reflected in the current
CIP that was provided to C112M Hill (1.5 million a year). Commissioner Carroll
questioned whether the 1.5 million is sufficient to keep in this reserve fund?
Mike Miller stated that we wouldn't know the answer to this question until the
hydraulic study is complete. Mr. Wegner stated that this 1.5 million will be spent
yearly and will not allow for reserve.
Commissioner Buehner stated that if a major unexpected capital improvement project
was needed, are there reserves or insurance that will cover these unexpected capital
costs? Mr. Wegner stated that certain things are insured. She continued by questioning
whether the 1.5 million is adequate as a reserve for capital projects?
Commissioner Drangsholt stated that 1.5 million are not reserve funds, but are set aside
to fund capital projects. Mr. Wegner stated that if the Board wants to set aside funds for
a reserve, then funds would be needed above the 1.5 million to spend yearly on capital
improvements. If the Board wants to set aside funds for water supply, a catastrophe, or
something else it will need to be built into the study. Commissioner Scheiderich stated
that decision could be made at the end of the study.
Mr. Griffith stated that the four options supplied in the draft, are just a few that will
demonstrate how the reserve targets can be reached. He continued by stating that the
utility is currently showing annual expenses, O&M and capital between 5 & 6 million
dollars and the draft showed if the capital improvement costs 44 million dollars comes
with a debt service tag of 3.3 million that is half of current revenues. Talking about what
we currently know and can project and need to make approximation of what that might
be. When considering the entire utility to pay for a future capital project, need to adjust
the reserve policies to meet those needs.
Commissioner Buehner stated that it was her understanding that the consensus of the
group was that the Board wanted to see something put in the rate study that would show
an increase in the reserve fund for the non-water supply reserves. Secondly she stated,
that the long term water supply is unknown although we know that we will have to
expend funds whether we go to Portland, the Willamette, Washington County suppliers
and rates will have to be increased significantly to account for whatever the expenditure
ends up being. Therefore it would seem only prudent and reasonable to begin budgeting
for that today by putting funds aside for whatever project is needed. This will need to be
IWB Meeting Minutes January 12,2000
Page 3
explained to the ratepayers, regarding the need for future funds. She continued by stating
that we are discussing two different reserve issues and both need to be handled
differently. Commissioner Carroll stated that the 1.5 million becomes O&M costs with a
clarification from Mr. Wegner stated that it is an annual capital improvement.
Mr. Griffith stated if there are reserve targets that the Board would like to see he would
like to be able to show how these would impact rates. Mr. Scheiderich questioned
whether there was an industry average or AWWA recommended percentage or regional
practice of annual budget that should be maintained as capital reserve? Mr. Griffith
stated that the sum of the reserve balances is 9.5 million.
Chairperson Scheiderich questioned whether there was a consensus from staff or the
consultant to assume a desired reserve greater than 9.5 million to build upon?
Commissioner Buehner questioned the estimated cost of Tigard's portion of the filtration
plant would be for Portland? It was noted that the 44 million was the least expensive
future scenario for Tigard. Commissioner Hunt questioned whether amortization was
figured into this projection? Mr. Griffith stated that on page 5 he talked about the set
asides from utility revenues which incorporated that into the revenue requirements.
Commissioner Hunt questioned whether Mr. Griffith could take these figures and arrive
at rate recommendations. Commissioner Buehner stated that it may be useful to look at
a scenario of increasing the scenario more now which will allow for more being put into
reserves until we need to begin debt service and will reduce the debt service load at a
later date.
Mr. Griffith stated that the more that is accumulated now, will lessen the impact on future
years. He stated that he could show for every ten cents the impact on reserve balances.
Commissioner Carroll also requested that future information show a timetable on when
the debt will be retired.
Craig Prosser stated that the Portland rates will be down in July of 2000. He discussed
the rate stabilization proposal which was included in the draft from CH2M Hill and
reiterated the opportunity to set rates now to cover O&M as they currently exist and
continue after rates drop, which will add to reserves. He also stressed the need for
regular rate reviews. It was determined that Mr. Griffith would provide more specific
rate scenarios at the next meeting.
5. Conservation Update—Kim Swan
Ms. Swan distributed the conservation kits that are currently being placed at the
following locations:
Tigard City Hall Durham City Hall
Tigard Library King City City Hall
Water Building King City Recreation Center
Tigard Senior Center
IWB Meeting Minutes January 12,2000
Page 4
She continued by stating that these kits included a shower flow bag, drip gauge, detection
tablets, and a toilet tape as well as a card inside of each kit explaining the usage of each
item. It was noted that she would provide to Commissioner Buehner these kits to
distribute to the CPO4K group. Kim stated that she has been involved with the following
projects:
➢ Youth education—Where's Rosie puppet show @ Tigard Elementary schools
➢ Participating with the Westside Water Providers (Forest Grove, Hillsboro,
TVWD, Beaverton, Tigard and Tualatin) at the Home Improvement Expo
➢ Residential water audits—partners w/Gresham, Hillsboro, Portland, and TVWD.
Tigard had 44 participants last year and demonstrated an I I% savings in water
consumption
➢ Participation with coalition with 17 other providers and will begin working on the
summer marketing program
6. Director's Report—Ed Wegner
Mr. Wegner stated the he, Paul Hunt, and Bill Monahan met with members of South Fork
Water Board's, Chairman and General Manager and they are interested in making Tigard
an equity partner, if we can get water from the treatment facility to Tigard. He continued
by stating that he, Patrick and Paul will be attending a joint workshop with Lake Oswego,
North Clackamas River Commission and South Fork Water Board next week to discuss
better ways of utilization of the existing facilities as well as interties. Commissioner
Scheiderich questioned when preliminary information would be ready on obtaining.water
from the Trask River system? Mr. Wegner stated that a preliminary report is expected
from EES by month end.
Mr. Wegner continued by discussing that South Fork Water Board treats water from the
Clackamas River and supplies water to West Linn and Oregon City. They have an intake
and water rights available to expand their facility, which could include Tigard's demands
for the next fifty years. In 1994 MSA approached South Fork and they were
experiencing some internal differences regarding growth within those two cities. These
differences have been worked out and they have expanded their intake facility to it's
maximum. Since they assumed we were going to the Willamette they had not previously
approached the City of Tigard.
Mr. Wegner distributed some the following information to the Board:
➢ Letter from City of Portland regarding turbidity problem
➢ Tigard Times editorial articles—January 6, 2000 issue
➢ Portland Water Bureau article on contract negotiations
➢ Sandy River Crossing—newsletter#4, announcing a public open house on 1-25-
00
➢ East County news article—"When will Bull Run burn"?
➢ White paper discussing contract principles and basic approaches (to be discussed
further at next meeting)
IWB Meeting Minutes January 12,2000
Page 5
Mr. Wegner stated that the Annual Meeting would be held on Monday, February 28,
2000 at 7:00 p.m. The meeting will be posted at each entity, with the IWB hosting the
meeting which will include a presentation from EES on Joint Water Commission, provide
additional information on South Fork as well as rate information.
Commissioner Hunt has drafted a newsletter, which he would like to mail to all
ratepayers within the next two weeks outlining the status of the long-term water issue. A
draft will be provided to the IWB Board prior to the mailing. He continued by stating
that this information will also be released to the media and the costs for the postage of the
mailing will be approximately$4,000.00. Roel Lundquist questioned whether this
mailing would include a discussion on water rates? It was determined that we would
include some information about the current status of the water fund.
7. Utility Manager's Report—Mike Miller
Mike Miller stated that surplus portion of the Clute property (at Menlor site) has been
identified and will be proceeding with the minor plan partition beginning on January 20
with a pre-application meeting to be held on 1-27. This process will take approximately
two months once the partition has been completed.
Mr. Miller stated that he and Bill Monahan met with the School District and the District
is very interested in working together on locating a reservoir (2.5-mg) on school property
(129th &Bull Mountain).
8. Public Comments
Roel Lundquist, City Manager for City of Durham questioned whether the last rate
increase was in 1993. It was noted that in 1996 the formula was adjusted although rates
were not increased. Mr. Wegner noted that according to the IGA, the City of Tigard sets
the rate. The IGA requires that each representative go back to their respective entities
only if the rate is different from the other ratepayers. He continued by stating that when
the formula was changed earlier, it was brought to the IWB, who made a recommendation
to the City Council to change the ordinance to change the rate structure.
9. Non Agenda Items
There were no non-agenda items noted.
10. Adjournment
Motion was made by Commissioner Drangsholt to adjourn the regular meeting of the
IWB at 7:00 p.m. This motion was seconded by Commissioner Hunt and passed
unanimously.
IWB Meeting Minutes January 12,2000
Page 6
ra -,,-i
raft
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February Intergovernmental Water Board Meeting
Prepared by CH2M HILL
1WB February Meeting
Presentation Outline
• Rate Model Changes Since January Meeting
• Forecasts : No Water Supply Project
• Impact of Collecting Additional Revenues For
Reserves
• Water Supply Project Scenarios
• Impact of Increased System Growth
• Impact of Junior Lien Debt
1WB February Meeting
Presentation Outline
Rate Model Changes Since January Meeting
• 20-Year Forecasts
• 3% vs. 1 .2% Annual Growth Comparison
• Debt Coverage Criteria and Junior Lien Debt Analysis
• Updated Information: Wholesale Water Costs For FY 2000/01
• Rate Impacts of Reserve Accounts
I
Rate Model Features Not Changed Since January
Meeting
• Across-the-Board Percentage Increases
• No Cost-of-Service Rate Revision at This Time
• Water Supply Project Startup in 2004
• Capital Improvement Expenses
IWB February Meeing
Water Rate Forecast Scenarios
9 Scenario 1
in "Base Case"
is No water supply projecto
A
• Continue to purchase water from Portland, Lake Oswego, and TVWD
• No Revenue Stabilization Fund
• No CIP or SDC Fund Reserve
• No Additional Repair/Replacement Expenditure
Rate Forecasts: Scenario 1
• Annual rate increases
• FY 2000: $1 .32/ccf volume charge
• Gradual rate increases
• FY 2004: $1 .68/ccf volume charge
• FY 2010: $2.28/ccf volume charge
in Caution: represents a scenario without capital expense for continued long-term
water supply
IWB
February
Projected Residential Vo'lume
Charge, I
4m $3.50
v
$3.00 --- �—
$2.50
$2.00 r..
�- Scenario 1
`O $1.50 NO WSP
$1.00
r.
$0.50
di
$0.00
O +� �1. ^� Dh 6 1 0 9 O ^ �►. ^� b h �o �l 4> O O
ebruary
Water Rate
Scenario 2
mi Impact of collecting additional revenues for reserve account accumulation
• Each additional $100,000/year requires volume charge increase of 3.6 cents/ccf
• Applicable for revenue stabilization reserve, CIP reserve, collecting additional
reserves to "buy down" water supply project debt issue
1W, wzR, Februa Meeting
ry
Water 'Supply Pro
Scenario 3, 4, and 5
Revenue bond debt service, capitalized bond reserve, 1.20 debt coverage factor
Water purchased from plant; small amount produced from existing wells
1 .2% annual growth rate
Scenario 3: $22 M water supply project
■ Scenario 4: $44 M water supply project
Scenario 5: $88 M water supply project
Rate Impacts
in All WSP Scenarios: Large increases prior to startup date to meet debt service and
debt coverage requirements
No/minor rate increases from 2004 - 2010
Debt service cost partially offset by anticipated lower purchase water costs
tv Rate forecasts depend on growth rate, required coverage, project costs, and startup
date
2010 - 2020: forecast 0% - 2% annual rate increases
IWB February Meeting
Projected Residential Volume
ar" 1 , 3, 4, and 5
Charge, Scen io
$4.50
v $4.00
d
$3.50
E Scenario 1
M $3.00 :_._, No WSP
�W
0 $2.50
�— Scenario 3
C $2.00 — S22 3I e 'SP
$1.50 Scenario 4
$1.00
S44 1M NN'SP
yScenario 5
W $0.50
$88 M RVSP
$0.00
11,
`5 tk o`\'O epp o`'�oo 06p o'��°a oe o`� °�, �N�, �.'e, �.3�, ►.°�^y `�, �.a, �A,�, �.`�, �.1\\v
�o ,yo ,yo Io do ,yo ,yo 'ON �o do ,yo ,Po
Draft: Debt coverage factor of 1.2. Projections with junior lien debt shown later.
IWB
February
Growth Rate Comparison ($44M WSP)
$3.50
V
v $3.00
W
$2.50
to
.0
$2.00
0 Growth
$1.50 3% Growth
Rt
$1.00
d
V
.� $0.50
$0.00
80\00 OO\O�O�\Oti 0�O�O�\OD �Oh Oh\O6 06\01 O�\O0 ��\��r��\�O�y\�6��O\^�^�\^O�$\�9
^o do do ,yo ,yo ,yo ,yo ,�o do �o do do ,yo �o ,yo ,yo ,�o ,yo ,yo �o �o
Draft: Debt coverage factor of 1.2
IWB
February Meeting
Junior Lien Debt Impact
Debt coverage
Typically a revenue bond issuance requirement
Reduces risk to bond holders
Exact requirements vary
Coverage = (revenues - O&M expenses) / par debt service
ri 1 .2 debt coverage factor used as placeholder value
Junior lien debt
in "Par debt service" amount reduced; does not include junior lien debt
Effect is more gradual rate increases
Rates eventually reach the same level as with full revenue bond debt WSP funding
MEMORANDUM
TO: Intergovernmental Water Board Members
FROM: Ed Wegner
RE: Long Term Water Supply Update
DATE: February 8, 2000
I. Willamette Water Supply Agency
Members of WWSA are continuing to meet with Wilsonville to discuss "Issue
Points". WWSA is working on several areas including the following:
A. The intake pipe and wet well will be sized for 120 mgd yet the complete intake
structure will be permitted and screened for only 70 mgd. The 70 mgd
amount should enable the project to proceed through the permit process a
little smoother.
B. Wilsonville is still not interested in joining WWSA. They would be interested
in entering into an agreement regarding the operations of the WTP instead of
joining WWSA. Wilsonville would be interested in joining WWSA and have
WWSA responsible for the operations of the plant once WWSA partners
comprise a majority of the WTP capacity.
C. There is discussion of requiring future participants to buy into existing
capacity. The issue is whether a new participant would be able to buy
someone else's capacity instead of undergoing an expansion of the plant.
II. Portland Wholesale Contract Oversight Committee
• Portland has selected EES for some consulting assistance and the
wholesalers (us, along with TVWD, Gresham, Rockwood and Tualatin.)
are negotiating to retain the services of a consultant to assist us .
• To ensure we have common understanding, `white papers' will be utilized.
Last month we presented you with Draft #3 of"Contract Principles and Basic
Approaches".
• On January 14 a conservation workshop was held discussing points that may
become elements of a new contract, which were sent to you last week.
• We are awaiting word from Portland as to when the next contract oversight
meeting will be held. In a recent letter from Mike Rosenberger outlining the
end of year recap he stated, "in 2000 we plan to increase the momentum of
the work we'll all do on the contracts."
III. South Fork Water Board/Clackamas River
• A joint work session with South Fork Water Board, Tigard, Lake Oswego,
Gladstone and the North Clackamas County Water Commission was held to
discuss the opportunity of allowing the entities equity opportunities and
combining existing and future water supply decisions under the auspices of
an ORS 190 agreement.
• Each entity has something to bring to the table. Water rights and funding
potential are key items for this win-win situation.
• Need for a consultant study to analyze the benefits and pitfalls in order to
determine if the proposal is worth the full group pursuing. MSA is doing a
"Concept Overview and Decision Guidance Document for Water Supply
Options" for the five entities. The cost will be $10,000 split five ways.
• The report will be complete by the next South Fork Water Board Meeting,
which Paul and Patrick will attend with me. Once the report is available, I will
deliver it to each of you.
MEMORANDUM
TO: Intergovernmental Water Board Members
FROM: Ed Wegner 'p-__
RE: Water Related Issues
DATE: February 8, 2000
• Turbidity Monitoring
Article on Portland's monitoring turbidity in accordance with new EPA guidance
concerning how to calibrate turbidity monitoring equipment.
• News article
January 31, 2000, article in THE OREGONIAN, Metro South Section, on Tigard
looking into South Fork as a potential water supply source.
• Oregonian Article
February 8, 2000, article about Tualatin placing a $5.5 million revenue bond on
the May ballot and Citizens for Safe Water are heading for Tualatin Valley Water
District.
Turbidity Monitoring
This spring the Water Bureau began monitoring turbidity
(cloudiness)in accordance with new EPA guidance November 1999 Storm Turbidity @ Headworks
25
concerning how to calibrate turbidity monitoring
equipment.The intent of EPA's guidance was to ensure
that water utilities nationwide use the same measuring / New calibration
tools and calibration procedures to measure turbidity in ,5 - --- -- -- -- -
Nephelometric Turbidity Units(NTUs). a
The new monitoring guidelines,published in EPA's ~ 10 -- -- -- ----- --- -
Guidance Manual in April of 1999,affected the readings O I d ca I i b ratio n
for the turbidity event in Bull Run in late November and 5 -
early December of 1999.Through the event the Water
Bureau compared"old"readings with"new"readings. 11 SM9 1112719911129t99 12/1199 12(3199 12/5199 12/7/99 12&99 12/11/8912/13M
12:00 PM 12:00 PM 12:00 PM 12:00 PM 12:88 PM 12:00 PM 12:00 PM 12:00 PM 12:00 PM 12:00 PM
D,te✓rime
State and federal drinking water standards require that an
unfiltered water system not exceed 5 NTUs.That rule has This graph compares the slightly higher turbidity
not changed—nor has the quality of the water.All that readings during the 1999 turbidity event that were
obtained after implementing new EPA calibration
changed is the procedure we use to calibrate the procedures.
equipment that makes the reading.The Water Bureau has
chosen to adopt the EPA procedures now.We expect Using the new calibrations,it's possible that future
that the Oregon Health Division will adopt the procedures turbidity events in Bull Run may take longer to drop
in the new Guidance Manual this year. below the 5 NTU level.
The table below illustrates that turbidity readings after Number of Days
implementing the new calibration procedures may be Above 5 NTU ShutdowOld New n
higher than in the past. For the 1999 event,the Water Event calibratio calibratio W of
Bureau relied on the new calibrations for turbidity n n Days)
readings reported in the press and to state drinking water 1996 4 12 8
regulators,but closely studied comparisons between the 1998 3 4 5
"old"and"new" readings: 1999 11 15 18
Maximum Turbidity
(As measured at Headworks) As of the middle of January,water in Bull Run was not
O I d New entirely down to"normal"turbidities because
Event calibration calibration stramflows have been low due to cool temperatures.
Slowly the tubidity levels are continuing to come
1996 10.5 21.7 down.We may level out at about 0.5 NTU by the
1998 8.2 10.6 beginning of February,but this will depend on
1999 19.1 23.5 streamflow,whether snow accumulates or melts.It is
Drinking 5.0 5.0 possible that our"normal"tubrdity may appear to be
water slightly higher than in the past.At this point we're not
standard sure—but we will share information as we get it.
An important point for our customers is that the
water quality has not changed—all that has
changed is the procedure we use to calibrate the
equipment that measures turbidit).
Tigard mayin water
The plan would lower costs Seeking better politician
in Oregon City, West Linn :!. to handle times of growth,
as the area seeks efficient Oak Lodge opts to replace
ways to serve residents general manager Hoffman
By VINCE KOHLER
THE OREGONIAN By VINCE KOHLER
igazd might become a partner in
THC OREGONIAN
the South Fork Water Board that OAKGROVH-
provides drinking water to Ore-
gon City and West Linn,a move n another indication that water poli-tics are heating up in Clackamas p
that could reshape the fractious politics of
water in Clackamas County, County, the Oak Lodge Water Dis.
trict commissioners have replaced
Tigard and South Fork have commis- Tom Hoffman,the district's longtime pen-
sioned a study to determine whether it is eral manager. "{
feasible for the Washington Countowners mu- They have borrowed Dan Bradley,gen-
the ality to buy ou equity ownership d- eral manager of the South Fork Water
the water board.South Fork also h North
- Board,to serve as interim manager.
Bring alliances with Gladstone,the North: '>
Clackamas County Water Commission Hoffman, who has worked for Oak
and Lake Oswego. Lodge for almost 24 years,will step down
"All we're trying to see with this study is in about three months.He became general
if it's'feasible to do,,,,said Ed Wegner Tr manager in 198.5. y
gard public works director."We've hada LQs'Larson }�residg'V.f the water dis
very good history in Tigard in using the:w trice,praised HoffinadTtechi ical abilities
Clackamas River as a drinking waterbut said the board wants abetter politician
source. at the helm as wafer services take on an
"Formany years,until three years ago, . ever more regional dimension under the
we bought a substantial amount of ourpressure of growth.
water from Lake Oswego.Now South Fork try STEVEN NEHUTHE OREGONIAN Q
eg Fishermen t for steelhead In the Clackamas River,a main source of drinking water in Clackamas County.Tigard might "We came to a crossroads in our strate-
has approached s. with what may be join the South Fork Water Board,which has an intake on this stretch of the Clackamas in the Oregon City area. Idc planning;" Larson said. "We needed
some opportunities: someone with a stronger presence in the
Lake Oswego is another possible candi- political arena"
date for future equity ownership in South getting water from the Tualatin Valley Wa- operation talks have stalled.And Clacka- tom line is that water needs to go to the Hoffman said his pending departure is
Fork said Dan Bradley,South Fork's gener- ter District's Trask Reservoir in the Coast mas River Water,the county's largest wa- Clairmont area We are up against a dead- due to a parting of philosophical ways.
al manager. Range. ter provider,wasn't even invited to the Jan. line of 2001.We treat that very,very seri- "There's no animosity,"said Hoffman,
"We're still cooking it,"Bradley said."I South Fork's contemplated; alliance' 20 meeting at South Fork . ously." 47."The district has changed.They want
think we'll start seeing people come in one with Tigard suggests that the politics of We're trying to keep the group small Clackamas Coffin soon might find it- someone more political I can run a good
by one over the next two or three years.... water in Clackamas County might fracture for the time being," Bradley said. "We self breaking new ground on water law, water district,but I'm not real political"
We're looking at a flat melded rate for ev- along a fault line similar to fire protection want to get things tied up among the five Bradley will be Oak
eryone." service.The southern part of the county's entities and then expand. If we get too Happy Valley plan rejected eY Lodge's interim
Bradley thinks that as a result of enlarg- urban area might look westward for econ- many people,we're not going to get any- On Jan 25,the Board of Commissioners general manager for three months.Hoff-
Bradley
South Fork water rates in Oregon City omies of service rather that,to the North where." man will work hot Bradley during that
and West Linn,at least,could plunge by 30 Clackamas area Y Clackamas River Water officials say th refused to reconsider a proposal to form time although the interim arrangement
c the county's first water authority . the could be extended.
percent to 40 percent.Water in those cities Clackamas County Fire District 1,which want to work with the county's other wa-a- Happy Valley area. The commissioners
costs 55 cents for every,100 cubic feet. serves much of the North Clackamas area ter providers. Paul Rogers, the agency's originally rejected the plan to form the Hoffman said he is pursuing job pros-
Consultants prepare report and provides contract fire service to Mil- longtime board president,said Clackamas Sunrise Water Authority in June. pects,including one in the Salem area
waukfe,had hoped to serve Oregon City as River Water is pressing for a more regional The proposal was made by Happy Val- The Oak Lodge Water District covers
The idea of Tigard joining South Fork well.But Oregon City instead contracted approach to water cooperation. about O rare miles in the Oak Grove
was put forth at the water board's Jan.20 for fire service with Washington County- Meanwhile, he said, Clackamas River ley,the Mount Scott Water District and the �1
meeting The idea will be studied by the based Tualatin Valley Fire&Rescue,which Water faces the challenge of supplyingwa- Damascus Water District. The county and Jennings Lodge areas, serving about
Portland consultingfirm of Murraymith board's decision not to reconsider means 30,000 customers.
and Associates MSIts report is due Feb. also serves West Linn and Wilsonville: ter to the southernmost part of its territory, that aprecedent-setting appeal to Metro The district is a key player in the North
P The debate about water delivery takes the former Clairmont Water District
11. place against the backdrop of talks among South Fork supplies that area on contract. will go forward Clackamas County Water Commission,
The study also is underwritten by the cities, service diEtricts ani the county to but says it will be unable to meet the need Michael 1?Judd,assistant county coup- which consists of the Oak Lodge,Mount
North Clackamas County Water Commis- hammer out ways to provide public serv- after July 1,2001. sel,said the appeal promises to be the first Scott and Damascus water districts.Oak
sion. ices on a more regional basis,for cost effi- "There are politics and politics,"Rogers case of its kind taken up by the still-to-be- Lodge owns the majority share of the wa-
Tigard has no water rights of its own. ciency and economies of scale. said,when asked whether Clackamas Riv- formed Metro Boundary Appeals Com- ter commission's new slow-sand water
The city buys surplus water from Portland er Water was being politically outflanked. mission. treatment plant on the Clackamas River.
under a contract that expires in 2005.Ti- Rivalries have long history "I think there are folks who are trying to The county commissioners have said The South Fork Water Board has about
gard wants an assured source of drinking The Clackamas County commissioners make deals.If that is happening,I think it the water authority proposal was not flexi- 60,000 customers in West Linn, Oregon
water.Equity ownership in South Fork is are pressing for closer cooperation and .is short-sighted. ble enough and could impede regional de- City and the southern part of Clackamas
one way to get it without taking the con- perhaps even coordinated water service "The regional needs are there,and we livery of water services as the North Clack- River Water, where it provides water on
troversial step of tapping the Willamette among the county's providers: But ri- all have treatment plants on the Clacka- amas area grows.It's uncertain when the contract.
River, valries among the water providers are of mas that can contribute to that. I don'tnew appeals panel will take up the Sunrise Bradley said he does not know whether
Wegner said Tigard also is looking at Ione standing,and county-snonsored co- know how all this will nlav nit.The hot. WRtPrAwhnrhvracP he would seek the permanent job.
Tualatin must take drinking-water issue to residents
treatment plant and distribution those contracts will expire within a In a September election,Wilson- treatment plant will not be built at
system that would draw water few years, and the ground-water ville got the green light for the all.,, ;l
Citizens for Safe Water from the Willamette River. supply has been insufficient in plant when its residents voted for a Hansen said the group also
consider turnip next to "There is no right or wrong deci- meeting this growing region's $25 million bond to be6An con- wants to place the issue before res-:
g sion here,"said Mayor Lou Ogden. thirst. struction. idents served by the Tualatin Val-'j ~x
Tualatin Valley Water "If people do not want to take ad Tualatin differs from the other Tigard and Wilsonville residents ley Water District,which has given
District customers vantage of this opportunity, so be cities in that it plans to both con- also voted to change their city its support to the Willamette plant.
By EMILY TSAO it.We are not out of water,but we tinue its contract with Portland charters so they could have a say in As Sherwood and Tualatin resi-
THE OREGONIANwill pay the consequences later in and use the Willamette River as a drinking from the Willamette. Ti- dents decide whether to pass reve
a different way." potential back-up source. gard now needs a second vote of nue bonds for the Willamette prof
TUAIATIN—The strong push a Plans were for the cities and oth- its residents before it can proceed ect, Tigard has begun looking at '
year ago to tap the Willamette Riv- For more than a year,Tigard led er jurisdictions to build a$92.3 mil- with the Willamettep ro ect. other long-term water sources. ;•`
er for drinking water faces another Wilsonville, Sherwood, Tualatin lion water treatment plant along Earlier this year, city councilors
hurdle as a fourth suburban city and other neighboring cities in dis- the Willamette.Some residents op- In December, Citizens for Safe said they had begun exploring the
finds itself forced to place the issue russions of using the Willamette posed that plan,saying the water is Water also successfully petitioned Trask and the Clackamas rivers.
before its residents. River for a long-term water source. unsafe to drink. to place the issue before Sherwood But they also said that the Wiliam- j
Citizens for Safe Water success- The decision would affect thou- Last year the Tigard and Wilson- residents in the March election. ette continued to be an option. '
fully petitioned to place the issue sands of residents for decades to ville city councils gave their sup- "I feel confident that Tualatin Wilsonville,which had been op-
on the May ballot in Tualatin.Resi- come. port to pursue plans to build the will vote it down," said Jim Han- erating under a building moratori
dents will vote on whether the city Most of the cities rely on wells or plant. But Citizens for Safe Water sen, a spokesman for Citizens for um, is moving ahead with the Wil
should issue $5.5 million in reve- have contracts with Portland and delayed the process by petitioning Safe Water said Monday. "I think lamette River plant project,but on
nue bonds to help construct a other water suppliers. Some of to place the issue before voters. there is a good chance fnis water a smaller scale.
U
FROM : Norm Perrier PHONE NO. : 503 590 4737 Jan. 27 2000 10:2M1 P2
Dear Tigard Regional Water System Subscriber:
The Tigard Regional Water System(TRWS), is your water supplier and along with a I I the other water suppliers
within the Portland Metro area it has,for a number of years,been engaging in a search for a solution to the
growing demands for safe,economical, long term drinking water.
As the name implies,the TRWS is a regional system. It serves not only a significant portion of the population
of The City of Tigard, it also serves the populations of Durham, King City and a large number of homes in
sub-divisions located in unincorporated areas adjacent to these three cities such as the subdivisions located
on Bull lvtountain. Currently there are some xx,xxx water users obtaining their water from the TRWS.
In the past several months there have been a number of articles in the Oregonian and the Tigard Times
discussing various aspects of the metropolitan area water issues, Local T,V, News has also periodically
reported on them.. The basic concern faced by all the communities within the metropolitan area is how to
provide their citizens with a long term,dependable supply of tap water at a reasonable price.
This memo is being sent to all TRWS Subscribers to inform you on these issues in so far as your water supply
is concerned.
First some back"rid information might be helpful.
The Tigard Water District dates back to the early 1930s. It began as a separate political entity operating a
regional water utility for a defined geographic are that now includes a part of Tigard City,all of Durham,
King City and some unincorporated areas within Tigard City and on Bull Mountain abutting Tigard City limits.
The original Tigard Water District was governed by an elected Board of Five Commissioners,They were
elected independent of any city elections and did not represent a specific community or communities within
the Water District.
Early on the Tigard Water District had water rights on the Willamette River but gave them up some time in the
50s.At that time it was providing water service to a small population and its needs were readily met by
several wells. Oregon law requires that water rights be used or they will be lost. (The State of Oregon owns
all surface and ground water and is a'prior water rights"' state). As the water district's population grew over
time it had to supplement its well water by purchasing water from other area water districts that had the rights
to surface(river)water and had a surplus of water.Today,the wells TRWS owns and operates can only be
used for a minimal amount of time each year due to the limited amount of water in the tapped aquifers.These
wells currently can not meet TRWS' water needs and no new wells can be drilled_Access to ground(well)
water is also controlled by the Srate.
When these wells were no longer able to meet the needs of its territory the old Tigard Water District had tc
resort to the purchase of"surplus'water from The City of Lake Oswego. Lake Oswego had rights to water
from the Clackamas River and did not need all the water it was entitled to take from that river.
Page 1 Of 4
FROM : Norm Perrier PHONE h0. 503 590 4737 Jan. 27 2000 10:2141 P3
In 1992 there was a drought which caused water shortages throughout the Portland Metro area and the Tigard
District's water suppliers cut back on the amount of water they were willing to sell to the District.The then
Mayor of Tigard(Gerald K Edwards),asserted that the Tigard Water District Administrators were not
managing the water utility properly. A specific charge made at the time was that they had not planned
properly so as to assure an adequate supply of water at all times. At his instigation, the Tigard City Council
threatened to withdraw from the Tigard Water District and join an adjacent water district.Since the City of
Tigard represented the largest number of the District's water subscribers, its withdrawal would have made it
economically difficult if not impossible for tho rest of the participants to survive.King City and Durham
quickly joined Tigard. After some negotiations among the four parties, Intergovernmental agreements(ICAs)
were drawn up between the City of Tigard and the other three entities_
Theseagreements gave the City of Tigard the responsibility and authority to operate the water utility on a day
to day basis- These lGiAs also established an Intergovernmental Water Board(IWB)which was to be
composed of one representative from each of the four participating communities and an at large member
selected by majority vote of the other board members for a total five (5)Board members,
These Agreements gave the IWB two specific tasks-
1 It was to make recommendations to the Tigard City Council on water service issues.The IGA lists
some nine responsibilities under this particular function. All of them are concerned specifically with
the day to day operation and maintenance of the water Utility.
2 The second and most important task given the lW8 was to approve all capital improvement programs
and all long term water supply contracts. in both instances the IW8 was to vote and a majority vote
(3 of the voting members)was binding on the TRWS.
Following these changes in the operational structure and management of the TRWS, it continued to receive.
the majority of its water supply(over 90%)from the City of Lake Oswego- In the six years since these
Intergovernmental AgnEyements were negotiated and signed, there has been significant growth in both the
TRWS area and in Lake Oswego, As a result,the amount of surplus water Lake Oswego was able to sell to
TRWS diminished significantly, A major bottleneck was the inadequate size of its water treatment plant. It
could not filter&treat enough water to meet the demands of both Lake Oswego and TRWS.
Not only had TRWS been a long time buyer of Lake Oswego water, it had also invested a significant amount
of money in the transmission system required to move this water from Lake Oswego into its,service area. In
hopes of maintaining this source of water the TRWS entered into discussions with Lake Oswego an how it
could help expand the.water treatment plant so that there would be enough capacity for both communities_
Thequid pro quo was that TRWS would be given some"owrwrship" rights in the resulting water system_
Page2 Of 4
FROM : Norm Perrc-r PHL?•E NO. : 503 590 4737 Jan. 27 2000 10:224T1 P4
However, the Lakc-,Oswego water treatment plant is actually located in the City of West Lynn and when the
home owners in the area around this plant learned of these plans to expand the facility,they raised objections
to their city council. As a result, Lake Oswego decided to table their expansion plans.
As a result, it became more and more difficult for Lake Oswego to rneet the demands of both communities,
It had to reduce and even cut off water sales to TRW$during high usage periods in the summer months. As a
result,TRWS found it necessary to look for other sources of water where it would have a firm,dependable,
long-term supply.
TRWS currently has a contract to purchase surplus water from the City of Portland. The contract expires in
2007. However for the past four years,Portland has not been wil ling to commit to selling TRWS the amount
of water projected for the long term_TRWS has made numerous attempts to reach an agreement with Portland
for a guaranteed long-term supply of water at a reasonable cost. Portland had not been at all interested in
such an agreement until late 1998-In December of that year the City of Portland submitted a proposal to
TRW5 on how it could provide additional water service,not only to Tigard,but also Wilsonville,Tualatin and
Sherwood. It's believed that Portland did this only be(:ZLse Tigard,Wilsonville, Tualatin,Sherwood and the
Tualatin Valley Water District had begun to seriously consider developing the Willamette River as a drinking
waw source. Were these communities to follow through with this plan it would mean a significant loss of
revenue to the Portland water system and the rates it charged its Portland water users would have to be
ircre,ased.
Portland's proposal did not include any water rights or guarantee of long term water, Although Portland has
led its wholesale customers to believe that they could be part owners in their system, the only ownership
offered has been a part ownership in the infrastructure but none in the water or water rights,The end result
could be that TRW$ would invest a lot of money in ii reservoirs,and pumps but would still face the
eventuality that there would be no water to put into them for the long term. Portland is also facing growth as
well as pressures to divert some of its water for the protection of salmon runs. As long as TRWS only has a
contract to purchase Portland's surplus water there is no guarantee that Portland will put water in those pipes
long term or next month even if TRWS owns them! The rates the wholesale buyers must pay for this water is
set by Portland- The buyers have little bargaining power-Since the wholesale water contracts with Portland
expire in the next few years, TRWS along with the other wholesale buyers are continuing to meet and work
with Portland on their study of long term wholesale contracts and rates. However, progress has been very
slow and generally favorable to Pwland.
Page 3 Of 4
FROM : Norm Ferrer FI-CUE NO. : 503 590 4737 Jan. 27 2000 10:2341 P5
Where are we today?
Faced with these uncertainties,TRWS joined other area water providers In 1997 in a study of the possibility
of obtaining drinking water from the Willamette River_ After carefui examination and public input,the
Tigard City Council, The Durham City Council,the King City Council and the Tigard Water District Board of
Commissioners, in the spring of 1999 all made unanimous decisions to pursue the Willamette River as the
optimal drinking water source for the TRWS. A citizens group in the City of Tigard challenged this decision
By the Tigard City Council and successfully placed a City charter amendment on the September 1999 ballot.
The charter amendment,which was approved by the voters of the City of Tigard changed the City charter so
as to require a citywide election to approve the use of the Willamette River as a source of drinking water.The
other three partners in the Tigard Regional Water System—Durham, King City and the Tigard Water District
—have not changed their position favoring the Willamette River. Their constituents were not participants in
this election to change the Tigard City Charter.
Since the passage of the Tigard City charter amendment,the Tigard City council has asked the
Intergovernmental Water Board and its.partners in the TRWS to re-evaluate and explore other supply options
including some that were not available three years ago. Recently Tigard Water Department Personnel
proposed a stud),to look at the possibility of obtaining water from the Joint Water Commission.The Joint
Water Commission is a group of water providers in Washington County, namely the cities of Forest Grove,
Hillsboro, Beaverton and the Tualatin Valley Water District_ They operate a water treatment plant that treats
water from the Trask and Tualatin rivers.This group has been very receptive to the idea of providing water to
the TRWS. The costs that impact this option such as high growth, limited water supply and long-tern,
contractual agreements are being investigated.
T RWS representatives have also entered into discussions with the South Fork Water Board recently to
determine its ability and willingness to supply water to TRWS. The South Fork Water Board is made up of
the cities of Oregon City and West Linn.These are very preliminary dicussions that include potential equity
and how an agreement could be.reached that would benef it both the TRSIAW and the South Fork Water
Board's goals and objectives. South Fork's source of water is the Clackamas River and is the same source of
water Lake Oswego had been providing to the TRWS.The South Fork water goes through the same treatment
process as did the Lake Oswego water.
Regardless of which option is ultimately chosen,they will all be expensive. TRWS is c-urrently reviewing its water
rates and charges so that it can begin collecting enough revenues to rover its future operations and maintenance costs
as well as the large infrastructure improvements needed to meet projected growth. TRWS plans to continue to study
dll options to find a high quality,cost effective,long term water supply for all subscribers regardless of the Community
in which they reside. Interested subscribers are encouraged to attend the meetings of the Intergovernmental Water
Board. These meetings are open to the public and are held monthly. Meeting dates, locations and times are
published in the Tigard Times or can be obtained by calling the Tigard Water Bureau at(503)xxx-xxxx..
Page 4 of 4
Water Consumption and Billing History
13055 SW Hampton Court
Tigard, Oregon
Amount Billed $
Meter
Reading Consumption Billing Date Bill
Date in Cubic Feet Date Sent Out Water Sewer SWM Total
2/3/00 241 2/9/00 2/10/00 $325.02 $54.46 $8.52 $388.00
11/30/99 276 12/8/99 1/10/00 370.70 42.29 7.21 420.20
10/6/99 38 10/13/99 11/23/99 54.85 17.34 2.89 1 75.08
Total 555 $750.57 $114.09 $18.62 $883.28
Note: Credit given on 516 cubic feet covering the meter reading dates of February 3, 2000.
November 30, 1999, and October 6, 1999.
Credit calculated using the system consumption average of 16 cubic feet and 9 cents
per cubic feet which is the system markup.
PLEASE REGISTER
DATE: February 9, 2000
MEETING: Interizovernmental Water Board Meeting
NAME - (Please Print) (Do you wish to speak?)
Yes or No
kathy\\visitor