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06/27/2005 - Minutes TIGARD WATER DISTRICT BOARD of COMMISSIONERS MEETING Serving the Unincorporated Area Monday, June 27, 2005 7:00 p.m. Members Present: George Rhine, Janet Zeider, Marc Delphine, Norm Penner, and Beverly Froude (arrived late at 7:06) Staff Present: Dennis Koellermeier, Michelle Wareing and Twila Willson Visitors: Henrietta Cochrun and Charles Radley 1. Call to Order Commissioner George Rhine called the meeting to order at 7:04 p.m. 2. Roll Call 3. Approval of Minutes - May 23, 2005 Commissioner Janet Zeider motioned to approve the minutes and Commissioner Norm Penner seconded the motion, and the board voted unanimously to approve the minutes of the May 23, 2005 meeting as presented. 4. Visitor Comments Charles Radley, newly elected Commissioner to the Tigard Water District (TWD), introduced himself. 5. Budget Adoption Process for FY 2005-06 Commissioner Norm Penner motioned to accept the minutes of the May 23, 2005, budget committee meeting, Commissioner Janet Zeider seconded the motion and the vote was unanimous to accept and approve the minutes. Public Hearing: Commissioner George Rhine opened the meeting for public hearing. Charles Radley asked for clarification of several of the line items and Michelle Wareing responded with the following information regarding the FY `05-06 budget: • The budget appropriated all revenue to allow discretion for the board over the next year • Allows for flexibility • Annexations are a possibility Tigard Water District Draft Copy June 27, 2005 1 • If money was not spent, it will roll over to the next year • This strategy avoids supplemental budget hearings if the money is needed • Attorney fees have been used in the past, although not for several years • An attorney would be needed if the board should need to dissolve due to annexations, etc. The public hearing for the FY '05-06 budget was closed at 7:09 p.m. Adopt budget: Commissioner Penner motioned to adopt the budget, Commissioner Zeider seconded the motion and the board's vote was unanimous to approve adoption of the FY '05-06 budget. Resolution 05-01: Michelle Wareing read the resolution. Commissioner Beverly Froude motioned to approve the resolution, Commissioner Penner seconded the motion and the vote to adopt the resolution was unanimous. Board members signed the resolution and the budget process was completed for FY `05-06. 6. Long Term Water Supply Update — Dennis Koellermeier Portland Contract — There have been lot of changes in Portland staff recently and that will likely add more time to the rate negotiation process. The next meeting with the participating agencies is scheduled for the second week in July. Tigard is currently disconnected from the Portland water system while a water line/culvert project is being worked on. Work is anticipated to be completed on Wednesday. Joint Water Commission (JWC1— The draw-down period started last week. Tigard has now started to use pre-purchased water. Tigard can use 1.5mgd per day for a 120-day period, and has the ability to take up to 4mgd, however not for that long a period of time. Lake Oswego — The Lake Oswego water usage has created no turbidity issues and no complaints about water. Willamette River— The Willamette River Wilsonville Treatment Plant tour is scheduled for Wednesday evening. Board members have been invited to attend. A discussion of the board brought up the following points of interest: • Legal nuances would need to be followed should the Intergovernmental Water Board (IWB) members recommend that Tigard should consider going to the Willamette River • Tigard citizens would need to vote on the issue • Bonding would need to be made from all participating members of the IWB and presentations about bonding to all council/boards would be necessary • Partners would need to be determined Tigard Water District Draft Copy June 27, 2005 2 • It would involve a two to three year process before final construction would be completion • If the IWB approved going to the Willamette, Tigard could probably negotiate a short term contract with Portland • The City of Sherwood is making moves toward the Willamette River • Tigard and Sherwood are members of the Willamette River Water Coalition (WRWC) • Should Sherwood declare their intent to go to the Willamette River, it would open a 90-day window for other partners to join the project • The decision would need to be made about how to invest in the pipeline • Tigard City Council would have to move for a vote of the citizens of Tigard to approve going to the Willamette River • The TWD has been on the record from the beginning to go to the Willamette River as a long term water source • The IWB would need to make the recommendation to the Tigard City Council to start the process • Not all incorporated citizens receive water from the Tigard water system • The TWD could ask the IWB to appoint a liaison to work with the City of Sherwood 7. Intergovernmental Water Board Update— Norm Penner Commissioner Penner reported that key players representing electrical utilities district did not show up at the meeting. PGE was invited to attend also, but neither party attended to present their issue and the topic was tabled. JWC and Lake Oswego water fees are much lower than Portland's rate. According to the governor, this was water conservation month and a letter from the governor was distributed to the IWB members. Mr. Koellermeier announced that Tigard was nearing the end of the second phase of the funding agreement with the JWC and the third phase would soon begin. There was some concern at the IWB level where minor assets were being accumulated by Tigard. Agreements about how assets are handled have not been discussed and Tigard could have stranded assets if the project does not proceed. Decisions need to be made about the tangible assets and whether the other partners would buy out the asset base. Staff hesitates to recommend proceeding with the $500,000+ investment for Phase III. 8. Public Education Commissioner Delphine had been unable to contact Wynne Wakkila to proceed with plans for this item on the agenda and requested it be rescheduled at the next meeting in July. Tigard Water District Draft Copy June 27, 2005 3 9. Non-Agenda Items The board expressed thanks and appreciation for Commissioner Norm Penner's many years of service to the TWD and Intergovernmental Water Board (IWB) and wished him well in the future. Commissioner Janet Zeider is the alternate representative to the IWB and will attend the next meeting. Commissioner Marc Delphine will also attend the IWB meeting to initiate discussion of the Willamette River issue. 10. Set next meeting date- July 25, 2005, at 7:00 p.m., Tigard Water Auditorium Agenda items for the July meeting will include elect of officers, IWB representatives, and administer oath of office for newly elected board members. 11. Adjournment Commissioner Mark Delphine motioned to adjourn the meeting, Commissioner Janet Zeider seconded the motion and the board voted unanimously to adjourn the Tigard Water District Board of Commissioner's meeting at 7:43 p.m. Tigard Water District Draft Copy June 27, 2005 4