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03/12/1974 - Packet • TIGARD WATER DISTRICT 8841 S. W. COMMERCIAL ST. TIGARD, OREGON 97223 PHONE (503) 639-1554 New March 12, 1974 AGENDA CALL TO ORDER 1. RESOLUTION TO APPROVE MINUTES OF LAST MEETING 2. RESOLUTION TO PAY VOUCHERS 3. VISITORS 4. RESOLUTION TO APPOINT MEMBERS OF THE BUDGET COMMITTEE 5. RESOLUTION TO TRANSFJ!IR WITHIN THE GENERAL FUND, $20,000 IN THE OPERATING CONTINGENCY, ACCOUNT #553, TO WATt. COSTS, ACCOUNT #525-2 6. RESOLUTION TO STANDARDIZE ALL METER INSTALLATION /41110, CHARGES THROUGHOUT THE DISTRICT BY INCREASING THE CONNECTION tEE TO $200 VERSUS $55, EFFECTIVE JULY 1, 1974; AND TO TRANSFER THE PRESENT CONNECTION FEES FOR BULL MOUNTAIN HOOKUPS FROM BOND SINKING FUND TO GENERAL FUND 7. RESOLUTION TO DISAPPROVE EITHER ALTERNATIVE AS PROPOSED BY PORTLAND BUREAU OF WATER WORKS, BUT TO INDICATE A PREFERENCE OF THE ADDITIONAL GENERAL RATE INCREASE (ALTERNATIVE #2) VERSUS THE SYSTEM DEVELOPMENT CHARGE 8. RESOLUTION TO SUPPORT A RESOLUTION BY THE TRI-COUNTY WATER DISTRICTS ASSOCIATION REQUESTING A WRITTEN LEGAL OPINION ON THE MERITS OF FILING A LAWSUIT CHARGING THE CITY OF PORTLAND AS ARBITRARY AND UNREASONABLE IN ESTABLISHING WATER CONSUMPTION RATES TO WHOLESALE WATER PURVEYORS LOCATED OUTSIDE CITY BOUNDARIES 9. OTHER BUSINESS ADJOURNMENT veiv ADMINISTRATOR'S REPORT 1. Resolution to approve minutes of last meeting. 2. Resolution to pay vouchers. 3. Visitors. 4. Resolution to appoint members of the Budget Committee. Individuals suggested at the last meeting as possible candidates for the budget committee were contacted and asked if they would serve if selected. To date, the following persons have agreed to serve: Neil Longfellow George Marshall yr William Stebbins H. Dale Johnson Michael D. O'Neil 5. Resolution to transfer within the General Fund, $20,000 in the, Operating Contingency. Account #553. to Water Costs, Account #525-2. The budget estimate for "Materials & Services" will be exceeded this month and action should be taken to ensure that funds are available for expenditures. Water costs have exceeded the budget estimate due to the fact that the wells are not producing as expected and more water had to be pur- chased from Lake Oswego. $32,000 was budgeted for water costs during fiscal year 1973-74, and already over $54,000 has been expended with 4 months to go. The transfer of $20,000 from the contingency account will resolve the problem for the present, but more fund transfers will be necessary in later months or a supplementary budget prepared. At this date, it appears that income will also exceed the budgeted amount so the district should be in the "black" on June 30th. -1- • *kw ADMINISTRATOR'S REPORT (Continued) 6. Resolution to standardize all meter installation charges throughout the district by increasing the connection fee to $200 versus $55. effective July 1. 1974; and to transfer the present connection fees for the Bull Mountain hookups from Bond Sinking Fund to General Fund. In accordance with the instructions of the Board, an investigation was made of the circumstances surrounding the imposition of the extra $200 upon each new meter connection on the Bull Mountain system. The minutes of July 10, 1962 revealed that the additional charge was first imposed to partially offset the "unique and unusual" expenses to provide adequate service to the Bull Mountain users. A general obligation bond issue of $250,000 was approved by the Board for presenta- tion to the customers of the district. In addition to various other capital improvements, one project pertaining to the Bull Mountain system specified: "To construct a main with pumping facilities from +mr district well /13 and connecting to the Bull Mountain distribution system to provide an additional supply of water to said area which is now supplied with but a single 4" main and pumping equipment from district well #2". At the same meeting, H. Brown moved, C. F. Nicoli seconded, that "in the event the resolution passed tonight for the sale of bonds is approved by the voters and consummated that the Board put into effect at that time a $200 differential connection fee for Bull Mountain users, and that an additional 250 per month per meter differential be charged to the Bull Mountain water users, and that these differentials be ear- marked as partial compensation to the district for the unique and unusual expense incurred to provide adequate and equal service to the Bull Mountain users." Motion carried. At the meeting on May 8, 1962 Elden Carter estimated costs to improve the Bull Mountain system: 8" pipe line $ 28,700 Pump and equipment 4,000 200,000 gallon storage tank 25,000 $57,700 -2- ADMINISTRATOR'S REPORT (Continued) Mr. Wheelock in a letter to the Board of Commissioners dated July 6, 1962 stated: "Mr. Carter has furnished estimates to the Board of Commissioners covering the proposed improvements, and these are as follows: (1) (2) (3) Construction of reservoir and mains to provide additional supply to Bull Mountain area -- $60,000. The district has available in the Bull Mountain Fund, per the report of June 1962 meeting, of $7,800, and I understand that by virtue of additional connections, this may now be approximately $9,000, and these funds under the agreements and resolutions of the Boards of Irkw Commissioners should be used to defray a part of the cost of the proposed construction, provided, of course, that the Commissioners submit the matter to the electors and authority is given for the total program. It is our further opinion that a differential connection charge can be maintained with relation to the Bull Mountain area now within the District by annexation from that lying below present reservoirs, and that this differential rate can be pledged directly to the fund used for the payment of bond principal and interest." Unfortunately, the bookkeeping records during those years for the expenditure of the bond construction funds were not segregated per project, but were combined into categories of transmission mains, of which there were several, and reservoirs, of which there were two. No actual con- struction figures are available; therefore, Mr. Carter's estimated figure of $60,000 must be used as a basis for the improvements to the Bull Mountain system. -3- ADMINISTRATOR'S REPORT (Continued) Since the inception of the $200 connection fee for the Bull Mountain users, the following amounts have been received annually: 1962-63: $ 700 1963-64: 3,000 1964-65: 4,080 1965-66: 3,350 1966-67: 2,850 1967-68: 4,200 1968-69: 2,600 1969-70: 4,000 1970-71: 3,000 1971-72: 6,800 1972-73: 8,400 Total: $42,980 1973-74: (to March 1, 1974): 4,800 1973-74: (est. to June 30th) 5,200 $52,980 Assuming that Mr. Wheelock was correct in stating that approximately $9,000 was in the Bull Mountain hand in 1962, a total amount exceeding $60,000 has been or will be collected by June 30, 1974. This would account for the total investment of this particular improvement to the Bull Mountain system. It should be noted that Hugh Brown in his motion refers to "partial" compensation and Mr. Wheelock's letter states "defray a part of the cost". It appears that the intent of the Board was not to require that the entire cost to improve the Bull Mountain system be borne by the new connection fees, but some unannounced fraction thereof. Perhaps the $200 connection fee should have been discontinued earlier. Since the debt has been fully liquidated the extra connection fee for solely the Bull Mountain system should be discontinued and new users in that area should not be charged anymore than other users in the district. It is estimated that the district will lose between $8,000 and $10,000 annually from this source of revenue. However, the district can ill-afford to lose these funds. -4- ADMINISTRATOR'S REPORT (Continued) At this time I want to bring to your attention some other informa- tion that is beginning to alarm me about the district's financial position for next year. As everyone knows, the cost of doing business is going out of sight. The cost of everything from postage stamps to pipe is higher by a substantial margin. Increased efficiency and volume sales will not be enough to offset these higher prices. Of major concern to us is the cost to purchase water. Portland's increase of 24% will not have an immediate effect upon the district. Of more importance is the drastic reduction in the amount of water produced by the wells. This was predictable, but not at such a fast rate. The next page shows this reduced capacity and is summarized as follows: PUMP CAPACITY Well #1 Well #2 Well #3 Well #4 Gal/kin Gal/kin Gal/kin Gal/kin Jan 1973 475 156 246 185 Dec 1973 295 144 67 169 (Sept) Well #4 was turned off in September because of the poor quality (high mineral content) of water, in addition to the possibility of the oil used to lubricate the pump could contaminate the water. Oil lubri- cated pumps for domestic water supply are not authorized by the Oregon State Board of Health. It is obvious that well #3 is going dry. Most discouraging is well #1 which has been the district's best producer for years. It is rather academic now that the State Engineer intends to announce within a few weeks the planned reduction in pumping capacity for wells in the Bull Mountain-Cooper Mountain area. Wells #3 and #4 will surely go in this edict. The days of the cheap water are gone. More and more surface water will have to be purchased. The following list shows the monthly percentage of water purchased from Lake Oswego since July 1973: July: 50% Nov: 40% Aug: 67% Dec: 50% Sep: 50% Jan: 44% (1974) +iwr Oct: 33% Feb: 60% (1974) Average: 50% -5- 4,,,r 1973 WATER CONSUMPTION AND COSTS Water pumped from wells Water purchased 1973 Cubic feet x 1,000 Cubic feet x 1.000 Month #1 #2 #3 #4 Cap. Hwy. Lake Oswetra Jan 2,836 913 1,423 964 770 -0- (475 g/m) (156 g/m) (246 g/m) (185 g/m) Feb 2,463 814 786 975 363 -0- Mar 2,911 856 850 1,061 217 -0- Apr 2,662 789 888 1,044 785 -0- May 2,649 930 702 1,061 1,615 -0- Jun 2,311 865 469 1,021 2,344 5,128 Jul 2,290 899 375 972 372 8,263 Aug 2,573 875 384 998 131 4,301 Sep 2,094 851 339 979 -0- 1,927 (169 g/m) Oct 2,039 913 362 -0- -0- 2,311 Nov 1,861 856 382 -0- -0- 3,002 Dec 1,750 855 399 -0- -0- 2,472 (295 g/m) (144 g/m) (67 g/m) vow Total: 28,440 10,415 7,358 9,075 6,597 27,402 Electric Costs: $5,235 $3,562 $3,246 $3,951 -0- $2,464 Average Cost/100 Cubic feet: 2c 311c 41c 4c 38c 15c -6- moommimmimimo Nosy ADMINISTRATOR'S REPORT (Continued) CH0M is now conducting an engineering study for the City of Lake Oswego to determine the need for capital improvements in the near future. Lake Oswego is planning on a $5 million general obligation bond issue to make the necessary improvements. Of direct benefit to the Tigard Water District will be a 5-million gallon reservoir at Waluga and the doubling of the capacity of the treatment plant from 10 mgd to 20 mgd. The Director of Public Works, Lake Oswego, has indicatedthat they will request finan- cial assistance from both the City of Tualatin and the Tigard Water District. (Stand-by for the "other shoe" to drop). Cost of meters, brass fittings, copper, cast iron pipe, gate valves, electrical costs, etc., have all gone up from 20 to 30% in the last year. The district is committed to not increasing the tax rate and, if possible, maintaining the same water rates until such time as Lake Oswego should raise their rates. The only other place to obtain revenue is by increasing meter installation charges which are now relatively low com- pared to other water districts which are shown as follows: (this is shown without the System Development Charge, except in the case of Portland): 5/8"x3/4" 1" Portland $ 510 $ 750 (effective July 1) Metzger 350 550 Wolf Creek 250 350 will go up July 1 Lake Grove 300 500 (will go up July 1 Beaverton 250 (+ $100 310 per unit) Powell Valley 255 Sherwood 495 Hillsboro 750 825 The present and proposed charges for the Tigard Water District are shown on the next page. _7_ err ADMINISTRATOR'S REPORT (Continued) APPENDIX 1 —Meter Installation Charges Present. All installations,except Bull Mountain system: Meter Size 5/8"x 3/4" 1" Copper Service $ 65 $ 95 Meter 85 130 Connection Fee 55 55 $205 $280 All other meters: (Cost+$55) +25% Present Installation on Bull Mountain System: and proposed for all installations: Meter Size 5/8"x 3/4" 1" Copper Service $ 65 $ 95 Meter 85 130 vow Connection Fee 200 200 $350 $425 All other meters: (Cost+$200)+25% The approval of this increase would eliminate the entire loss from the Bull Mountain connections in addition to gaining approximately $20,000 annually to partially offset the higher costs of material, labor, equipment, etc. If you desire to continue upgrading the system, this increase is necessary. It is recommended that the new meter installation charges become effective July 1, 1974. _g_ tore ADMINISTRATOR'S REPORT (Continued) 7. Resolution to disapprove either alternative as proposed by Porttand Bureau of Water Works, but to indicate a preference of the additional general rate increase (Alternative #2) versus the system development charge. Ken Baines has prepared a letter for your approval regarding the alternatives proposed by Portland. (See Mr. Hyle's letter and attached letter prepared by Ken Baines). 8. Resolution to support a resolution by the Tri-County Water Districts Association requesting a written legal opinion on the merits of filing a lawsuit charging the City of Portland as arbitrary and unreasonable in establishing water consumption rates to wholesale water purveyors located outside city boundaries. It appears that now is the time to make a stand with the City of Portland to determine the true parity between in and out-of-city water rates. ""'a'' On March 21st the Tri-County Water Districts Association meets to discuss the Portland Bureau of Water Works new rate structure. I would like to make the following motion: "That the Tri-County Water Districts Association, or one of its designated members, request a written legal opinion on the merits of filing a lawsuit charging the City of Portland as arbitrary and unreasonable in establishing water consumption rates to wholesale water purveyors located outside city boundaries. That legal fees be pro-rated to all members of the Association based upon the number of meters in service. That the law firm of Wheelock, Niehaus, Baines & Murphy, who are eminently qualified in legal matters involving municipal water systems, be retained to represent the Association, or the designated member, whichever is applicable." 9. Other business. It has been suggested that the name of the Tigard Water District be changed. Comments and recommendations are desired. -9- 4r.Y ADMINISTRATOR'S REPORT (Continued) 10. Measures to be taken to reduce the fire protection rating from Class 4 to Class 3. At the last meeting the Board requested information on the measures to be taken by the district which would reduce the fire protection rating from Class 4 to Class 3. Total deficiency points received for 1968 versus 1973 are shown below: 1968 1973 Water Districts 805 (29.5%) 384 (23.4%) Tualatin Rural F.D. 1926 (70.5%) 1255 (76.6%) Total Deficiency Points: 2731 (100%) 1639 (100%) The above chart reflects that the water districts have reduced the deficiencies by over 50% within the past 5 years; also, that the water districts have only 23.4% of the deficiencies compared to 29.5% in 1968. It would appear that the fire district with 76.6% of the deficiency points have the best opportunity to improve the fire pro- tection rating. It should be noted that water districts account for 39% of the fire insurance rating. Chief Washburn has indicated that a Class 3 rating can be attained if the fire district installs alarm boxes. Cost estimates are being computed now. The next 3 pages describe the deficiencies of the water district. #6 - "adequacy of mains" accounts for z of the deficiency points. If we continue on the present course, within 3 years the distribution system will be entirely cast or ductile iron pipe, all-adequately sized. This should reduce the deficiency points considerably. It just takes time and money to make any substantial improvement in a water system. Auxiliary power for the pressurized systems on Little Bull Mountain and Bull Mountain, scheduled for next fiscal year, will help. '' "' -10- • INSURANCE SERVICES OFFICE OREGON STATE OFFICE SUMMARY OF GRADING GRADING SCHEDULE FOR MUNICIPAL FIRE PROTECTION (1973 Edition) Date Graded: August 1973 City or District: Tigard W.D. (Tualatin R.F.P.D.) Total Deficiency: 1,639 Points. Graded by: A.N. & J.S. Engineering Representative Protection Class 4 WATER SUPPLY Assigned Item Points 1. Supply Works 0 2. Reliability of Source Supply 15 %le 3. Reliability of Pumping Capacity 0 4. Reliability of Power Supply 0 5. Condition, Arrangement, Operation, and Reliability of System Components 10 6. Adequacy of Mains 193 7. Reliability of Mains `0 8. Installation of Mains 9 9. Arrangement of Distribution System 8 10. Additional Factors and Conditions Relating to Supply an Distribution 51 11. Distribution of Hydrants 3 12. Hydrants - Size, Type and Installation 45 13. Hydrants - Inspection and Condition 25 14. Other Conditions Adversely Affecting Adequacy, Reliability, or Operation of the System 38 Total 397 • FIRE DEPARTMENT 1. Pumpers 2. Ladder Trucks 3. Distribution of Companies and Type of Apparatus 4. Pumper Capacity 5. Design, Maintenance, and Condition of Apparatus 6. Number of Officers 7. Department Manning 8. Engine and Ladder Company Unit Manning 9. Master and Special Stream Devices 10. Equipment for Pumpers and Ladder Trucks 11. Hose 12. Condition of hose *kw TIGARD WATER DISTRICT Tualatin Rural Fire Protection District, Oregon RECOMMENDATIONS The attached recommendations are offered to assist District officials in planning improvements in the fire protec- tion facilities. Since the District makes the final decision on any improvement program, we have listed several suggestions. We have not included every item for which a deficiency is charged but have attempted to cover the heaviest deficiency items. We would like to emphasize that even a partial improvement in any of the items could provide a beneficial effect in the grading. It is possible to achieve a better protection class by partial improvement in many items or major improvement in a few important items. If after reviewing these recommendations District officials believe they can accomplish selected improvements, we can estimate the effect those improvements would have on the grading. If work on these improvements is not started within six months, we reserve the right to review this information for conformity with standard in use at that time. These recommendations are made of fire insurance rating or grading considerations only and no representations or warranties of any kind are made or intended. • February 12, 1974 Public Protection Department INSURANCE SERVICES OFFICE of Oregon Tualatin Rural Fire Protection 41ve District Recommendations Based on 1973 Grading TIGARD WATER DISTRICT: Water Supply: 1. That all pumps be checked daily, including Sundays and holidays. 2. That recommended fire flows (see flow test sheet) be provided at all commercial (other than residential properties) risks in the water district. 3. That arterial and grid system be improved to eliminate single artery feeds and dead end distribution pipe. 4. That reliability of all booster pumps be improved by providing stand- by power or stand-by gas or diesel pumps. sem, 5. That all,,feeders to booster pumps be in duplicate to increase reliability. 6. That hydrant spacing at all oommercial risks be at one hydrant per 100,000 square feet; in residential areas, minimum spacing be 160,000 square feet. 7. That all hydrants be installed on 6-inch laterals from the main, and be standard hydrants with two 21/2-inch and one pumper outlets. February 12, 1974 Public Protection Department INSURANCE SERVICES OFFICE of Oregon view ADMINISTRATOR'S REPORT (Continued) 11. Savings by purchasing water from Lake Oswego versus Portland. Cost Cost Savings Month & Cu. Ft. Lake Oswego Portland from Year Purchased @ 140/100 @ 250/100 Portland Feb 1974 3,907,200 $ 5,470 $ 9,768 $ 4,298 Cumulative Total: FY73-74: 31,309,600 $43,833 $78,274 $34,441 12. Unmetered water. +r.r Cu. Ft. Cu. Ft. Cu. Ft. Cu. Ft. Cu. Ft. Month & Pumped Purchased Total Sold Loss Loss Year x 1000 x 1000 x 1000 x 1000 x 1000 % Feb 1974 2,737 3,907* 6,644 4,891 1,753 26.4% Cumulative Total: FY73-74: 59,700 54,779 4,921 8.2% *About 60% of the water consumed during February 1974 was purchased from Lake Oswego. yaw -11- 440.0. ADMINISTRATOR'S REPORT (Continued) 13. Work accomplished during February 1974. a. TWD installed 470 feet of 8" C.I. and 60 feet of 6" C.I. + 1 fire hydrant near Durham and Pacific Highway for new Tebo's restaurant. (Developer's and General Fund, pipe extension). b. TWD installed 2070 feet of 6" C.I. + 4 fire hydrants along both 100th Avenue and View Terrace, between Inez and MacDonald Streets, to replace 4" O.D. steel pipe. (Pipe replacement, General Fund). c. TWD installed 54 feet of 4" C.I. + 2 fire hydrants along Crestview Drive, near Varns Street. (Pipe extension, General Fund). d. TWD installed 150 feet of 4" C.I. + 1 fire hydrant on private easement (Mr. Ems) to complete a circulation loop between 76th and Fir Streets. (Pipe extension, General Fund). e. TWD installed 30 meters. (4100 - 4071). District also serves 115 meters in Metzger Water District. 14. Work to be accomplished during remainder of fiscal year 1973-74. March 1974: a. TWD install 800 feet of 8" C.I. + 2 fire hydrants from 90° bend to south and west along Bull Mountain Road to replace 4" and 6" O.D. steel pipe. (Pipe replacement, General Fund). b. Private contractor install for TWD 140 feet of 20" steel casing under Pacific Highway at Durham Road to complete circulation loop. (Bond Construction #lA). c. TWD install 150 feet of 12" D.I. pipe in 20" steel casing as noted in "b" above. (Bond Construction I/lA). d. Private contractor install 2800 feet of 8" C.I., 1700 feet of 6" C.I., and 1000 feet of 4" C.I. + 9 fire hydrants in the Summer- field development, Townhouses (Phase II), for Tualatin Development Company. (Developer's). -12- wrw ADMINISTRATOR'S REPORT (Continued) April 1974: a. TWD install 4600 feet of 12" D.I. pipe + 4 fire hydrants along Bull Mountain Road., between reservoir #2 and 132nd Avenue. (Bond Construction #1A). b. TWD install, along with Cornell Manufacturing Company, a 100-hp pump station at #2 reservoir to pump water to Hi Tor reser- voirs. (Bond Construction #1A). May 1974: a. TWD install 400 feet of 6" C.I. in 36" steel casing under 2 sets of railroad tracks along Bonita Road, between 74th and General Chain Bar Company. (Pipe extension, General Fund). b. TWD install 280 feet of 6" cast iron + 1 fire hydrant at the terminus of 98th Avenue, near Tigard Avenue, including the crossing of 2 sets of railroad tracks with 12" steel casing. (Pipe extension, General Fund). Also, install 1 fire hydrant between RR and Greenburg Rd. wow c. TWD install 240 feet of 12" C.I. along North Dakota Street, west of Tiedeman, for Mr. Lee Robinson. (Developer's). d. TWD abandon 4" galvanized main on Hunziker between Hall Blvd. and Irvington-Moore Company by connecting services to 12" main on south side of Hunziker. (General Find). e. TWD install 50 feet of 6" C.I. near Hiranport, Inc. on S. W. Hunziker to complete circulation loop between 12" main and 6" main. (Pipe extension, General Fund). June 1974: a. TWD install, along with Cornell Manufacturing Company, a pump station with 2-25 hp pumps, including auxiliary power, at new Hi Tor reservoir to provide adequate pressure in area. (Bond Construction #lA). b. TWD inventory, maintain equipment, and locate gate valves. July 1974: a. TWD install 300 feet of 12" C.I., 1960 feet of 8" C.I., and 500 feet of 6" C.I. + 5 fire hydrants along 108th Avenue, south of Durham Road, for Mrs. Ogle, et al. (Developer's). -13- • • -' THE CITY OF PORTLAND • 0,. ot*: • • February 14 , 1974 OREGON DEPARTMENT OF PUBLIC WORKS Mr. Robert Santee , Administrator LLOYD E. ANDERSON Tigard Water District COMMISSIONER 8841 S. W. Commercial Street Tigard, Oregon 97223 BUREAU OF Dear Mr. Santee : WATER WORKS ROBERT C. HYLE At the February 5th meeting of Water Districts served by MANAGER the City of Portland, questions were raised regarding the 1800 s.w.SIXTH AVE. System Development Charge as proposed by the Portland PORTLAND,OR.97201 City Council. Representatives of the Water Districts and the Portland Water Bureau agreed that the Water District Bbards would be given an opportunity to indicate their preference between a System Development Charge and a general rate increase for all outside water users over and above the one already proposed. • As explained at the meeting, our main concern is to develop the necessary revenue from both inside and outside City users in order to meet our projected obligations +for the next 4 years. How this revenue should be raised from outside users is somewhat flexible and open to negotiation. Following are the two alternatives we are offering for your consideration: 1) We would maintain the Size of Service Charge Sche- dule under the System Development Charge , but we would eliminate the Per Unit Charge Schedule. The charge imposed for each new water service connecting to your system would be as follows : Size of Service Charge Schedule Size of Service Charge 3/4" $ 300 1" 500 1-1/2" 800 2" 1,200 3" 2 ,000 4" - 2 ,800 **kw 6" 3 ,600 8" 4 ,500 • 10" 6 ,000 12" 10 ,000 � y Page 2 February 14 , 1974 2) We would eliminate the System Development Charge entirely and increase the rates proportionately to generate the anticipated amount of revenue that would have been collected under the System Development Charge. Rates would be proposed as follows : Outside City Rate Rate Cubic Present With Without GRAVITY: Feet Rate SDC SDC First 20 ,000 . 36 . 38 .43 Next 100 ,000 .24 . 30 . 35 Over 120 ,000 .18 . 25 . 29 Rate Rate Cubic Present With Without PUMP: Feet Rate SDC` SDC First 20 ,000 .44 .45 .48 Next 100 ,000 . 32 . 36 .40 Over 120 ,000 . 25 . 31 . 34 ` we We would ask that you review these proposals and indicate your preference to us in writing by April 1 , 1974 . As stated at the February .5th meeting, we will review the* wishes of the Water Districts. Following this response we will recommend a rate structure revision to the City Council if such action seems appropriate. If you have any further questions or comments , please do not hesitate to call me. Si ely, Oa, t Robert C. Hyl Manager RCH/mka TIGARD WATER DISTRICT 8841 S. W. COMMERCIAL ST. °411MIV TIGARD, OREGON 97223 PHONE (503) 639-1554 March 13, 1974 Mr. Robert C. Hyle, Manager Portland Bureau of Water Works 1800 S . W. Sixth Avenue Portland, Oregon 97201 Dear Mr. Hyle: In response to your letter dated February 14 , 1974 , the Commis- sioners of the Tigard Water District prefer Alternative No. 2 to Alternative No. 1. This expression of preference shall not be construed as an approval of either alternative, nor shall it be construed as a waiver of any rights the Tigard Water Dis- trict may have to attack these proposals if they are ultimately implemented. We feel it is inequitable to impose greater user rates for non- " row residents than for users residing within the City, because, among other things, your present system was not constructed from tax revenues , but from user charges paid by users both within and without the City. The system-development charge, which appears equitable on the surface, imposes an excessive financial burden upon the devel- oper outside the City, who must also bear the entire expense of installing all mains within his development. This is not the case for developers within the City. It is our opinion that the inequality in water rates should be resolved at this time, and we urge the City of Portland and all other water customers of the City to jointly initiate an inde- pendent study to determine the true parity between water rates in and out of the City. We second Commissioner Lloyd Anderson 's suggestion that all facts and figures be "placed on the table. " Very truly yours, TIGARD WATER DISTRICT C. F. Nicoll Chairman, Board of Commissioners Badger Meter,Inc. Water Meter Division 4545 West Brown Deer Road Milwaukee,Wisconsin 53223(414)355-0400 To Badger Meter Customers February 18, 1974 For the last four years, Badger Meter has held the line against revising its price schedule on water meters despite inflationary pressures on manu- facturing costs. In fact, many of our meters are priced lower today than they were in 1969. During this period we have absorbed additional expenses by improving the productivity and efficiency of all our operations. We have also introduced innovative meter concepts involving a variety of materials. However, the cost of raw materials is changing so quickly that we are compelled to revise our prices on certain meter lines. You may reasonably expect us to raise our prices, and in some cases we are. You will also be surprised and pleased to know that some of our prices will not be changed, particularly our Recordall line of thermoplastic meters. Essentially we are offering you quality at a variety of prices. Since you are a valued customer, we want to provide you some specific information about the real magnitude of our increased costs. In 1973, we experienced a 55 per cent increase between the beginning and the end of the year in the price of ingots used for bronze meters. Based on price increases already received from suppliers, we estimate that our expenses for material and labor will be 112 per cent higher in 1974. In order to give you ample advance notice, we are applying our new price schedule to all orders received on or after March 15, 1974. Present prices will be honored on orders placed before March 15 for delivery no later than June 30, 1974. Information concerning our new price schedule is available from our sales representatives. We trust that we have explained the circumstances leading to our price revision to your satisfaction, and we thank you for your business in the past. We also pledge that Badger will always strive to give you the best quality product at the price you want to pay. Sincerely yours, BADGER METER, INC. itare yak Robert K. Bourne, Ph. D. General Sales Manager Water MPtir 1livisinn • l//k./7 • Jv� i c ? if V *r+ CAr lad pi?.E ESCALATION The prices quoted herein are based on the current market price of scrap metal , as defined below. Due to the complete uncertainty of future scrap prices , our prices to you are subject to the following Scrap Surcharge. For each $1 .00 per ton increase in the Pittsburgh, Philadelphia, Chicago composite price for "Scrap No. 1 Heavy" published weekly in IRON AGE Magazine , our prices herein will be increased `;>.L•. 00 per ton. "Current market price" of "Scrap No. 1 Heavy" is defined as $102 . 83/ton published in the February 11, 1974 issue of IRON AGE. The scrap price published in IRON AGE (in the week that shipment „ of your order is made) shall determine the amount of Scrap Surcharge to you.