02/12/1974 - Packet TIGARD WATER DISTRICT 8841 S. W. COMMERCIAL ST.
TIGARD, OREGON 97223
PHONE (503) 639-1554
NNW
February 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 BUDGET OFFICER AND MEMBERS OF
THE BUDGET COMMITTEE
5. RESOLUTION TO HOLD ELECTION ON MAY 7, 1974 TO ELECT
THREE COMMISSIONERS AND TO PUBLISH THE NOTICE OF THE
ELECTION IN THE TIGARD TIMES
6. RESOLUTION TO ADVISE U.S. DEPARTMENT OF INTERIOR THAT
44" THE DISTRICT SHOULD NOT BE INCLUDED IN THE SECOND PHASE
OF THE TUALATIN PROJECT, SCOGGINS DAM
7. RESOLUTION TO INCREASE THE CONNECTION FEE FOR ALL METERS
BY $70 AND DELETE THE EXISTING EXTRA CHARGE FOR NEW
METER INSTALLATIONS ON THE BULL MOUNTAIN SYSTEM,
EFFECTIVE JULY 1, 1974
8. RESOLUTION TO APPROVE THE LOWEST, ACCEPTABLE BID FOR
CONSTRUCTION OF A PUMP STATION WITH AUXILIARY POWER FOR
PRESSURIZED SYSTEM AT HIGH TOR RESERVOIR
9. OTHER BUSINESS
ADJOURNMENT
ADMINISTRATOR'S REPORT
1. Resolution to approve the minutes of the last meeting,.
2. Resolution to pay vouchers.
3. Visitors.
4. Resolution to appoint Budget Officer and members of the
Budget Committee.
In the past, a commissioner was appointed as the Budget Officer.
The new budget manual states "there are no specifications in ORS
294.331 as to who may or may not be appointed as a budget officer.
The legislature left this entirely to the discretion of the governing
body." Since I prepare the budget it would be appropriate to designate
me as the Budget Officer for Fiscal Year 1974-75.
4440' The Budget Committee consists of the following persons:
Term Expires
Neil Longfellow 1976
M. G. Jenovich 1975
John S. Martin 1975
Two more members need to be appointed. Mr. Carl Winans was
selected as an alternate last year.
5. Resolution to hold election on May 7, 1974 to elect three commis-
sioners and to publish the notice of the election in the Tigard Times.
Appropriate resolutions for the upcoming elections have been
prepared and are shown on the next two pages.
Those commissioners who desire to file for re-election should
contact me for filing forms.
-1-
fWt La uari
'NEW
RESOLUTION
Be it Resolved, that the Board of Commissioners,
Tigard Water District, Washington County, Oregon, hereby sets
the date of May 7, 1974, for an election to elect three
commissioners, terms to commence on July 1, 1974.
Be It Further Resolved, that the Election Officer
be, and hereby is directed to have published the notice required
by ORS 259.100 in the Tigard Times, a newspaper published and of
general circulation in such district.
4414100 Clarence F. Nicoll, Chairman
Attests February 12, 1974
Don W. Thomas, Secretary
7
NOTICE OF FILING DATE OF
NOMINATING PETITIONS OR DECLARATIONS OF CANDIDACY
rOR COMMISSIONER
TI.t;ARD WATER DISTRICT
Pursuant to resolution of the Board of Commissioners,
Tigard Water District, an election will be held in the District
on May 7, 1974 to elect three commissioners whose term of office
will commence on July 1, 1974, as follows:
Position {a3: 4-year term to expire on June 30, 1978
Position (4: 4-year term to expire on June 30, 1978
Position `5: 1-year term to expire on June 30, 1975
As provided by ORS 259.080, notice is hereby given that
petitions for nomination or declaration of candidacy for commissioner
are required to be filed with the Registrar of Elections, Washington
County Courthouse, Hillsboro, Oregon, not later than 5:00 p.m..
April 6, 1974.
By order of the Board of Commissioners, Tigard Water District
Clarence F. Nicola, Chairman
•
Attest: February 12, 1974
Don W. Thomas, Secretary
ru,ilish Tif,, rd Tines: Feb, 26, 1974
.111r. 7, 1974
ADMINISTRATOR'S REPORT (Continued)
6. Resolution to advise U. S. Department of Interior that the
district should not be included in the Second Phase of the Tualatin
Project, Scoggins Dam.
On April 13, 1971 the Board of Commissioners unanimously
approved the contract with the U. S. Government (Department of
Inerior) for the purchase of water from Scoggins Dam.
This contract authorized Tigard Water District to purchase
2,500 acre-feet of water from the Scoggins Reservoir at some future
date. (An acre-foot is 43,560 cubic feet or 325,900 gallons).
The water may be purchased at the dam site at any time after the
project is completed, tentatively in 1975, but water supply and
payment therefor can be deferred for up to 10 years. Enclosed are
copies of pertinent correspondence and extracts of the contract.
At the time of negotiating this contract the STR Study had not
been completed and plans for direct connections to either Lake
Oswego or Portland were non-existent. It was the belief of the
Board that the water could be sold to other purveyors if the district
could not use it.
The major problem in obtaining this water is the cost of trans-
mitting it from Hillsboro to Tigard. Beaverton has no immediate plans
to utilize this source of water. Therefore, it is highly unlikely
that the district can ever afford to construct the transmission main
such a great distance.
A letter dated January 10, 1974 was received from the U. S.
Department of Interior (copy enclosed) requesting a response on
whether the district desires to be included in a study on the second
phase of the Tualatin project. It would appear that we should not
be included.
7. Resolution to increase the connection fee for all meters by $70
and delete the existing extra charge for new meter installations on
the Bull Mountain system, effective July 1, 1974.
Since budget preparation time is here it would be appropriate
to correct an inequity in meter installation charges.
-2-
visite ADMINISTRATOR'S REPORT (Continued)
Following is a listing of charges presently in effect:
APPENDIX 1 —Meter Installation Charges
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%
Installation on Bull Mountain System:
Nur Meter Size
5/8"x 3/4" 1"
Copper Service $ 65 $ 95
Meter 85 130
Connection Fee 200 200
$350 $425
Alf other meters: (Cost+$200)+25%
The district's charges for meter installations are relatively
low compared to other water districts. For example, Metzger charges
as follows:
5/8" x 3/4": $ 350
1" : $ 550
-3-
ADMINISTRATOR'S REPORT (Continued)
With Portland's new "system development charge" Metzger's and Portland's
meter charges will be: Metzger Portland
5/8" x 3/4" : $ 650 $510
1" : $1050 $750
For many years a surcharge of $200 for meter installations
on the Bull Mountain system has been in effect. This appears to
be discriminatory and should be discontinued.
However, this would mean a loss of revenue of about $10,000
annually.
To account for this loss of revenue it is recommended that all
meter charges be increased by $70. New charges would be as follows:
5/8" x 3/4" 1"
Copper Service $ 65 $ 95
Meter 85 130
Connection Fee 125 125
$275 $350
All other meters: (Cost + $125) + 25%
The additional $70 per meter will create about $14,00.0 in revenue
and will offset the$k ,000 loss from the Bull Mountain connections, and
account for some of the inflation increases for material and equipment.
8. Resolution to approve the lowest, acceptable bid for construction
of a pump station with auxiliary power for pressurized system at High
Tor reservoir.
The pump station that provides pressure for the residents around
Hi Tor reservoir has exceeded its capacity. There are two pumps located
within the existing pump station, with 11 hp (70 gpm) and 5hp (180 gpm)
motors. A part of the new reservoir construction was the inclusion of
an enlarged pump station with auxiliary power, either propane or natural
gas).
-4-
`'"", ADMINISTRATOR'S REPORT (Continued)
I believe enough funds will be available from Bond Construction
#lA to pay for most of this station. If not, the remaining amount due
can be budgeted from the General Fund in next year's budget.
Specifications have been sent to several pump manufacturers for
quotations. Bids should be received by the date of the meeting.
9. Other business.
a. Discussion of Portland Bureau of Water Works increase in
rates and the new "system development charge".
Correspondence has been sent to each commissioner regarding this
subject.
It has finally dawned on the outside-of-city water districts of
the magnitude of this new concept of charges. Special meetings are
being held.
We are in the fortunate position of not having to puchase Bull
Run water. Consequently, we have no intention of paying the new
charge. (See next page for additional discussion of this subject).
10. Fire protection improved from Class 6 to Class 4.
Some good news was received on the improvement of the fire pro-
tection grading in this area. (letter attached).
The Tualatin Rural Fire Protection District has received a grade
of Class 4 which means about a 25% reduction in fire insurance rates.
According to Chief Washburn, this is the only Rural Fire Protection
District in the State of Oregon with such a good rating. Portland's
is Class 2.
Significantly, the water system represents about 40% of the grade
received. Chief Washburn indicated that it was the Tigard Water Dis-
trict that had the fewest points of deficiency and upgraded the other
water districts in the area.
-5-
%w✓
Now
ADMINISTRATOR'S REPORT (Continued)
ADDENDUM to paragraph "9" above. Portland Bureau of Water Works
increase in rates and "system development charge".
Ken Baines and I attended a meeting on February 5th conducted
by the City of Portland in which Commissioner Lloyd Anderson and
Manager Robert Hyle were speakers.
Portland needs about $100 million to construct a treatment plant,
install an 8-foot conduit from the Bull Run dam, and replace 2 existing
conduits by year 1990.
They are determined to get substantial amounts for these capital
improvements from the out-of-city users, specifically the 41 water
districts utilizing Bull Run water. Mr. Anderson made it clear that
"x" number of dollars were needed and the water districts would pay
their share (as determined by Portland) either with a "system development
charge" as proposed or a higher user rate than proposed. There was no
discussion on "whether" but "how".
The disparity between the 20c water for retail users in the city
versus the 31c water for wholesale users, such as water districts, was
glossed over by stating that in-city users paid more of the cost for
the sheriff, etc. A very poor argument, in this respect, was presented,
but it would take a financial expert to fully arrive at a logical con-
clusion as/the exact difference that should be imposed.
Since Portland has indicated that they will go to a higher rate
increase if the "system development charge" is not imposed, they have
"shot the props" from under our legal case. Personally, I believe
that imposing the "system development charge" to water systems other
than within one's own system is illegal and could be defeated in court.
However, to file a suit and allege that the higher rate increase is
arbitrary and capricious would be difficult to prove as unfair and
unreasonable.
The city will, shortly, send a questionaire for the board's con-
sideration to decide which type of charges it prefers. Presumably, a
majority vote of the 41 water districts will prevail.
Mr. Hyle showed me an advance copy of the alternate rates if the
"system development charge" were abandoned outside the city. It would
mean an increase of only 3c to 34c for the Tigard Water District. Without
question, the 34c water is preferable to the "system development charge"
since, at some future date, only peak demand water will be utilized. We
are still better off than the 38c water purchased via Capitol Highway. I
urge the unanimous approval of the rate increase versus the "SDC".
Nor,
-5a-
ADMINISTRATOR'S REPORT (Continued)
11. Maior items on proposed FY1974-75 budget.
Enclosed is a list of equipment, vehicles, and pipeline replace-
ments and extensions which will be considered at the budget meetings.
All 2" O.D. steel and galvanized has been replaced. Most of the
pipe replacements for the ensuing year will be concentrated on 4" O.D.
steel pipe. Within 3 years, all steel pipe will be gone and the pipe
replacement program can be terminated. Cast iron pipe is known to last
for 100 years.
At the conclusion of the pipe replacement program in 1978, funds
can be budgeted from the General Fund for construction of the 5-million
gallon terminal reservoir to be located on 125th and Gaarde. With
continued annual savings in the Projects Reserve Account and increased
revenue by volume water sales, the reservoir can be constructed without
a bond issue. It is a goal that is attainable with sound management.
1974 is the first time since 1959 that a bond issue has not been
approved for the ensuing 3 year period. Bond issues and amounts were
granted as followss
Year Amount
1959 $ 160,000
1962 250,000
1965 250,000
1968 300,000
1971 980,000
12. Status Report on Bond Construction Funds #1 and #1A.
Bond Construction Fund #1 ($500,000) has been depleted and Bond
Construction Fund #1A ($480,000) will be gone by June 30th.
At this time it is appropriate to examine where the funds were
spent and if we accomplished everything that the district promised
the voters.
-6-
1
ADMINISTRATOR'S REPORT (Continued)
PROPOSED PROJECTS IN BOND CONSTRUCTION #1 & #lA
A. Construct two storage reservoirs.
B. Install pump station and major transmission lines for
distribution.
C. Increase pumping capacity and transmission main to Bull
Mountain.
D. Telemetering system (1st phase).
E. Acquire land for future reservoir sites.
F. Development of alternate source of water.
ACTUAL PROJECTS IN BOND CONSTRUCTION #1 ($500,000)
Receipts
Sale of Bonds $ 495,621
Interest earned 25,819
Total receipts: $ 521,440
Expenditures
Miscellaneous: elections, bonds,
attorney, etc., $ 10,643
Alternate sources of water:
Lake Oswego (Clackamas) $ 14,153
Portland (Bull Run) 148,844
162,997
Reservoirs:
Hi Tor (1.1-M gallons) $ 118,591
#3 (0.3-M gallons) 58,375
176,966
Transmission mains 147,198
Future reservoir sites:
135th & Fern $ 5,742
Little Bull Mt (#1) 11,004
less: part of Hi Tor sold 5,917
10,829
Pump station (Hunziker) 12,807
rte, Total Expenditures: $ 521,440
-7-
ADMINISTRATOR'S REPORT (Continued)
ACTUAL PROJECTS IN BOND CONSTRUCTION #lA ($480,000)
Receipts
Sale of Bonds $ 470,400
Interest Earned 16,221
Total Receipts: $ 486,621
Expenditures
Miscellaneous: elections, bonds,
attorney, etc. $ 7,819
Alternate sources of water:
Lake Oswego (Clackamas) $235,729
Portland (Bull Run) 5,843
241,572
Transmission mains 129,580
Future reservoir sites:
W.r Terminal: 125th & Gaarde 18,371
Telemetry: Lake Oswego 6. Portland 24,381
Total Expenditures: $ 421,723
Proposed Expenditures
Transmission mains:
#2 reservoir to 132nd & Bull
Mt. Rd. (remaining) 10,898
Pac Hwy, Durham Rd. crossing 7,000
17,898
Pump stations:
#2 reservoir to Hi Tor 37,000
Hi Tor + auxiliary power 10,000
47,000
Total Proposed Expenditures: 64,898
Total Proposed &
Actual Expenditures: $ 486,621
-8-
*r.r ADMINISTRATOR'S REPORT (Continued)
I believe that we have accomplished or will accomplish everything
that was programmed and more. Significantly, all of the 1st priority
items and many of the 2nd and 3rd priority items as listed in the ST&R
Study of June 1971 have been accomplished, including about one-half of
the suggested pipe line replacements.
Considerable funds were saved by utilizing John Miller and his
crew for most of the construction work and by performing all of the
engineering in this office. Further, with the inflation rate as it
is, I believe that we could not duplicate the same work for 257. more
money.
Finally, I am convinced that the Tigard Water District has an
outstanding water system and is "second to none" of those water dis-
tricts who have to import surface water. We can no longer be placed
in the category where the newspapers can use the district as a
"barometer" whether there is a water shortage in the area.
The district has the alternative of 3 different sources of water,
twice the recommended storage capacity, and a pipe replacement program
that, within 3 years, will be entirely cast or ductile iron pipe, all
adequately sized. Most pumps are relatively new or have been rebuilt
within the past 3 years. This next year two pump stations will have
auxiliary power. Excellent fire flows can be realized anywhere in the
district and has resulted in a recent rating of Class 4 versus the
previous Class 6. Water losses have been averaging about 6% for the
year, most of which can be accounted for by flushing new mains. Water
systems with less than 10% losses are considered outstanding.
All of this, plus the fact that our rates are the lowest in Wash-
ington County. (See enclosed water rate charges as prepared by Bartle-
Wells). Further, we have no intention of raising water rates in the
near future.
In conclusion, it appears that the Board has made the right decisions
and our customers are the ones who benefit.
"` -9-
ADMINISTRATOR'S REPORT (Continued)
13. Savings by purchasing water from Lake Oswego versus Portland
or Capitol Highway Water District.
Cost Cost Cost Savings Savings
Month d Cu. Ft. Lake Oswego Portland Capitol Hwy from from
Year Purchased @ 14c/100 @ 25c/100 @ 38c/100 Portland Cap. Hwy
Jan 1974 2,471,900 $ 3,461 $ 6,180 $ 9,393 $ 2,719 $ 5,932
Cumulative
Total:
FY73-74:
27,402,400 $38,363 $68,506 $104,129 $30,143 $65,766
14. Unmetered water.
Cu. Ft. Cu. Ft. Cu. Ft. Cu. Ft. Cu. Ft.
Month 6. Pumped Purchased Total Sold Loss Loss
Year x 1000 x 1000 x 1000 x 1000 x 1000 %
Jan 1974 3,021 2,472* 5,493 5,860 367 E6.7%)**
FY 1973-74:
Cumulative Total:
53,056 49,888 3,168 6.0%
FY 1972-73:
Cumulative Total: 18.37.
* 44% of the water consumed during January 1974 was purchased from
Lake Oswego.
** Negative balance because of monthly readings on water pumped and
purchased and bi-monthly readings on water sold.
Eftst
-10-
ADMINISTRATOR'S REPORT (Continued)
15. Work accomplished during January 1974.
a. TWD installed 840 feet of 16" D.I. pipe along MacDonald
Street, from Hall Blvd. to the west, to further the Clackamas
River main line to reservoir #1. (Bond Construction #IA)
b. TWD installed 110 feet of 6" C.I. pipe along Hall. Blvd.
toward Pacific Highway in furtherance of a circulation loop to
Greenburg Road and Pacific Highway. (Pipe extension, General Fund)
c. TWD installed 280 feet of 6" C.I. pipe + 1 fire hydrant
along Walnut Place to replace 4" O.D. steel pipe. (Pipe replacement,
General Rand).
d. TWD installed 252 feet of 12" D.I. along Pacific Highway
from Greenburg Road to the east for the new Sambo's Restaurant
being constructed, including 1 fire hydrant. (Developer's)
e. TWD installed 10" x 6" cross and 54 feet of 6" C.I. pipe
for offices and warehouses to be constructed on Sandburg Road.
(Developer's)
f. TWD installed 14 meters. (4070 - 4057). District also
serves 115 meters in Metzger Water District.
16. Work to be accomplished during remainder of fiscal year 1973-74.
February:
a. TWD install 150 feet of 4" D.I. pipe + 1 fire hydrant
on private easement (Mr. Ems) to complete a circulation loop between
76th and Fir Street. (Pipe extension, General Fund .
b. TWD install 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)
c. TWD install 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)
Part.
-11-
•
ADMINISTRATOR'S REPORT (Continued)
d. TWD clean reservoir #4.
e. 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)
March:
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 #lA)
b. TWD install, along with Cornell Manufacturing Company, a
100-hp pump station at #2 reservoir to pump water to Hi Tor reservoirs.
(Bond Construction #IA)
April:
a. TWD install 54 feet of 4" C.I. + 2 fire hydrants along Crest-
view Drive, near Varns Street. (Pipe extension, General Fund)
b. 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)
c. 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 Furl )
Matt
a. Private contractor install 140 feet of 20" steel casing under
Pacific Highway at Durham Road to complete circulation loop. (Bond
Construction #IA)
b. TWD install 150 feet of 12" D.I. pipe in 20" steel casing
noted above in "a". (Bond Construction #lA)
-12-
ADMINISTRATOR'S REPORT (Continued)
June:
a. Private contractor provide and install pump station with
auxiliary power at new Hi Tor reservoir to provide adequate pressure
in area. (Bond Construction #1A)
b. TWD inventory, maintain equipment, locate gate valves, etc.
July:
a. TWD install 300 feet of 12" C.I., 1960 feet of 8" C.I., and
500 feet of 6" C.I. plus 5 fire hydrants along 108th Avenue, south of
Durham Road, for Mrs. Ogle et al. (Developer's)
vow
-13-
+mow
ENT OF \
United States Department of the Interior__
f J !° BUREAU OF RECLAMATION �����t
PLANNING YIELD BRANCH
tibK6 3 ,s?�
1775-32nd PLACE N.P.
IN REPLY BOX 7395, SALEM, OREGON 97303 riTV r)W T i1 R
ti
REFER TO:
123.- January 10, 1974
City of Tigard
12420 S. W. Main
Tigard, OR 97223
Gentlemen:
The principal feature of the first phase of the Tualatin Project,
Scoggins Dam, is under construction and should be completed in the
near future. As part of our study of the Tualatin Project, Second
Phase, we are investigating the present and future water needs that
can' t be met by Scoggins storage and how these needs might be met.
Last fall Bob Barton, from this office, talked with Robert Santee
about the Second Phase studies. At that time it wasn' t definite
if you wanted to be included in these studies or not.
We would appreciate it letter from you at this time, expressing
your desire to be included or not included in this study.
If you do wish to be included, we would appreciate an estimate of
your water needs. Your present total and per capita water use and
how long your present supply will meet your needs would be very
helpful information also. Any population and/or water use projections
you may have would be useful too. If you would like, we could have
someone from this office meet with you to obtain these records and
projections .
If you have any questions or desire further information on this ,
please let us know. '
Sincerely yours ,
61)
E. Carl Huish
Chief, Planning Field Branch
#N1 H0,4/�
S.17,„ z
76 Let's Clean Up America For Our 200th Birthday
Q ....:.E. `; UNITED STATES
DEPARTMENT OF THE INTERIOR
BUREAU OF RECLAMATION
REGIONAL OFFICE. REGION I
IN RFF'L BOX 8008
RFFEk FO 440/150 BOISE. IDAHO 83707
Mr. Robert E. Santee
Administrator, Tigard Water District
8841 S.W. Commercial St.
Tigard, Oregon 97223
Dear Mr. Santee:
On January 19, 1971 , representatives of this office met with you
and others regarding the furnishing of a municipal and industrial
water supply from the proposed Tualatin Federal Reclamation Project.
At that meeting, each entity requested that the payment of its con-
struction charge obligation, including interest charges, not begin
until the 10th year following the availability of project water.
This is to allow the cities time to prepare plans for the possible
construction of a common pipeline to convey water from Scoggins
Dam and for the incorporation of the Tualatin Project water supply
into their existing supplies .
*4400,
We have discussed the foregoing with the Commissioner of Reclamation
and it was concluded that the contracts with the four cities for
municipal and industrial water from the Tualatin Federal Reclamation
Project would be prepared along the following lines:
1 . With water availability, each entity will begin to pay
its share of the annual operation and maintenance costs of Scoggins
Dam and Reservoir which are allocated to municipal and industrial
use. Each entity's share of this amount is determined in the pro-
portion that the entity's quantity of water under contract bears to
the total quantity of municipal and industrial water under all con-
tracts (Article llb) ;•
2. Each entity will begin to repay its construction charge
obligation not later than 10 years after water is available and the
repayment period will extend for 50 years thereafter. In the event
that water is diverted by the entity during the 10-year period, the
entity shall commence payment on a proportionate share of its con-
tractual obligation which will be repaid within 50 years . The amount
4111.0
r..
of the construction charge obligation on which payment would begin
if water is diverted during the 10-year period, is determined in
the ratio that the actual quantity of water diverted in said year,
increased to the nearest 100 acre-feet, bears to the entity's total
quantity of water under contract (Article 9b) .
It is anticipated that project water will be available in 1975 and
the first construction charge obligation will be payable on Decem-
ber 31 , 1985. On the basis of the foregoing, the entire construction
charge obligation will be repaid not later than the 60th year after
water becomes available. This period would be shortened if water
is diverted during the first 10 years .
One of the entities questioned whether it would be possible to transfer
the water to another entity thus withdrawing the water from the original
contractor and reducing its contractual commitment. The proposed
contract does not preclude this possibility as Article 27 provides
for the assignment or transfer of this contract or any part upon
approval by the Secretary of the Interior.
The enclosed draft of contract is identical with that discussed with
you at the January 19 meeting except for Article 9b, which has been
revised in accordance with the afore-described repayment arrangements
and the deletion of the reference in Article 16b to the installation
of equipment by the entities to measure return flows discharged from
its facilities. The same contract has been submitted to each of the
four cities. Information concerning the estimated project costs, the
amount allocated to municipal and industrial water supply, and the
annual installments, is enclosed.
As you are aware, the electorate in the Tualatin Valley Irrigation
District recently approved the irrigation repayment contract. With
this approval , we intend to proceed with the acquisition of some
right-of-way. We anticipate that construction funds will be avail -
able in fiscal year 1972. However, we cannot proceed with the award
of a construction contract until the municipal and industrial contracts
have been executed. Thus, it is imperative that contract execution
proceed expeditiously.
To initiate action on contract execution, it will be necessary for
you to furnish this office with a resolution from the City Council
or the Board of Directors approving the form of contract identified
as Field Solicitor's draft 3/12/71 . Thereafter, we can proceed with
''fir+•
2
the approval of the form of contract by the Commissioner of Recla-
mation and the Secretary of the Interior, which must be accomplished
prior to execution. Since we desire to maintain uniformity between
the city contracts, any revisions which you think may be necessary
would have to be approved by all parties prior to their inclusion
in the contract.
Your early consideration of this matter will be greatly appreciated.
Sincerely,
Regional Director
Enclosures:
Contracts
Exhibits
Copy to
Mr. Kenneth Baines, Attorney
505 Franklin Building
Portland, Oregon 97204
Nolar
•
•
Now
3
1 PROJECT WATER SUPPLY
2 Project Water Supply for Contractor
3 14. (a) Subject to the provisions of this contract, the Contractor
4 shall have the right to divert from the outlet works of Scoggins Dam and
5 Reservoir or from the Tualatin River at points of diversion agreed to by
6 the United States up to 2,500 acre-feet of project water annually avail-
7 able under the United States' rights for the project for natural flow,
8 storage, and return flow.
9 (b) Prior to April 1 of each year the Secretary shall notify
10 the Contractor in writing of the estimated quantity of project water
11 which will be available for diversion by the Contractor during the cur-
12 rent year. The Contractor shall divert the project water it is entitled
`so 13 to receive under this contract in accordance with schedules developed by
14 the Contractor and the United States.
�5 (c) The Contractor shall be wholly responsible for taking,
16 diverting, conveying and utilizing its project water.supply and shall
17 bear all losses chargeable to such supply from the point where furnished
18 by the United States.
19 (d) The project water supply furnished to the Contractor from
20 Scoggins Dam and Reservoir directly into the Contractor's conveyance
21 works shall be measured by the United States at the outlet works of
22 Scoggins Dam with equipment installed and maintained by the United
23 States. The project water supply furnished to the Contractor from the
24 Tualatin River shall be measured by the Contractor with equipment
fir► Art. 14(a)(b)(c)(d)
11
ii 11
interest shall he charged on such cont until such sueply is fir ;t
used, but in no case shall the interIst-free period exceed 10 years ."
l?e have a slide to illustrate how this deferment might u ;rt--.
it lustrat:i on of Annual Financial Requirement
with Pefe.•red (later U se
1.. Water use schedule (assumed)
initial (pears 1--5) `C?;,
Years f-10 7``
1-c,11-:; 11-1-4) 100:7,
2. Cor.' , for 1 ,000 A.F.
1 n 'tstmont 001 ,000
Annual operating cents
3. Annual financial costs for deferral_ comprlreci to no deferral
Years Anna?il I'inanci-al Cost
with deferral
-- without ir, err.il
1 •- i $ 6;900
t -- 10 10,3/0
11- 0 13,790 13,270
Now let 's move on to water quality control.
Th( investment here is $2,,923,000, which is also totally rei;;;huro,-.ble
with .interest over a 1,0-year period.
The annual cost for this function is t'.127,200;a, planned , the project
would provide the following flows below- the control point----the T, i10 Oswepo
Crrporotion dant; 73 in July and August, and 62 cfs in 2eptemher. In
other months the natural flown are sufficient to meet water quality need .
These flown represent 57 percent: of the ?00O regttlrement devel000d -in
cooperation with the Federal Aster. Quality Administration.
Ar; we said, each cemmun try or entity was allotted a block of tater, based
e•,, 4t; fnt(,nt. Our pl ,en row provide that the ivr7 water for Tares'_ 17ro e,
Hillsboro, Beaverton, and Tigard, would be made available at the clam. This
would be compatible with the Washington County Master Plan. The head available
from the reservoir would provide some p}-cssure to reduce pumping requirements.
Lake Oswego Corporation will. receive its water at the canal hoadwo1-k> .
This is a reimbursable function by law----reimbursable with interest.
The interest rate is 3.342 percent in F.Y. 1970. It could he adjusted upward
at the time of start of construction.
The total project investment at the July 1969 price level is $33,325 ,000.
Of this amount, $44,22.1,000 is allocated to municipal water and $2,923,000 to
water quality control .
Municipal and industrial- Water Supply
The annual financial costs over a 50-Year repayment period to each munici-
pality without deferral are rw m<ari_zed below:
Annual Annual
Project Water Annual Cost Operating; Total Annual
Saw Municipality Supply (A.7.) Principal £< Interest Cot Financial Cots
Forest Prove 4,'00 56 ,210 c 3,530
Hillsboro 4,400 �6, l0 1,� ,t) ;9 ,77,n
keavorton 1,500 10,740 1., 1P1) 19 ,9
Tigard 2.'00 31,240 1,960 33,200
Lake Oswego 1,000 12,_'£0 790 13,270
Total 14,000 $174,880 510,900 $105,870
This cost .amounts to 4 cents per 1,000 gallons.
The Water °a,nnly Act of 19513 allows for some deferral of cost, that may
be helpful to you. The law states that
"the entire amount of the construction costs, including interest
during construction shall be repaid within the life of the project,
but in no event to exceed fifty years after the p--olect is first
used for the stora of water supply purposes, e:.cep t. that: (1 ) no
' payment need be made until such supply in first use l and (7) no
4
,r
yaM "
�°+Yw Dom. .� 2aw....�- iiuri..diy�J�J16VI1WIIVlI!6Vi��ii���d��lid �iN �6i(dslIII � io�
i�d�d . iii � � u �uR�„ nli'
�.� „ �„
•
•
; ti INSURANCE SERVICES OFFICE
(""'Ll
OF OREGON
``
9; iJ -721 S. OAK STREET. PORTLAND, OREGON 97205
/f
y� � � s+
TELEPHONE (503) 226-2651
H. E. MARQUELING, MANAGER
January 30, 1974
To the Board of Commissioners
TIGARD WATER DISTRICT
c/o Mr. Robert Santee, Superintendent
8841 S. W. Commercial Street
Tigard, Oregon 97223
Gentlemen:
We wish to advise that this office has released to insurance agents
and companies the results of our fire defenses evaluation of Tualatin
Rural Fire Protection District. The grading was made through appli-
cation of the Insurance Services Office 1973 Grading Schedule.
Protection Class 4 is applicable to properties protected by hydrants
on the following water systems: Tigard Water District, Metzger Water
District, Lake Grove Water District, City of Sherwood, City of Tualatin
and City of Wilsonville. The effective date For this change from
Protection Class 6 (Class 7 in some areas) to Class 4 is December 1 ,
1973. The effect of this change can best be determined by fire insur-
ance agents for specific cases.
We are enclosing a general recapitulation sheet of the grading results
and a copy of the flow tests made on the Tigard Water District and the
Metzger Water District systems. The number of deficiency points shown
for Water Supply is not that of the Tigard Water District system alone
but is a composite of the various water systems evaluated. A summary
of the grading points of the Tigard W.D. system and improvement recom-
mendations are available upon request.
Also enclosed is a water system map which is a duplicate of that
furnished to the fire department. Additional copies are available at
a cost of $1 .00 each,
The officials of the water district are to be commended for implementing
continued-
To the Board of Commissioners
Tigard Water District
January 30, 1974
page 2
recent improvements and for working closely with other interested
groups in providing better fire protection. We are available for con-
sulation should there be questions relating to the grading or fire
insurance rates in general .
In closing, I wish to thank all officials for assistance extended to
personnel from this Office.
Very truly yours ,
J
H. E.Marqueling
MANAGER
enclosures/
446✓
•
a
INSURANCE SERVICES OFFICE of Oregon
721 SW Oak Street
Portland, Oregon 97205
Tualatin R. F. P. D.
Date Surveyed April 1973
GRADED WITH REFERENCE TO FIRE DEFENSES AND PHYSICAL CONDITIONS AS DETERMINED BY
THE STANDARD GRADING SCHEDULE
FIRE FIRE SERVICE FIRE CLIMATIC
WATER DEPART- COMMUNICA- SAFETY CONDI- DIVER- TOTAL
SUPPLY MENT TIONS CONTROL TIONS GENCE POINTS CLASS
POINTS OF
DEFICIENCY 384 711 172 323 49 0 1 ,639 4
The class is based on a total maximum of 5,000 points of deficiency as follows:
RELATIVE POINTS OF
CLASS DEFICIENCY
�,. First , 1 - 500 Ninth Class : 4001 -4500 or receiving less
Second, 501 - 1000 than 4001 points but having no recognized
Third, 1001 - 1500 water supply.
Fourth, 1501 - 2000 Tenth Class: More than 4500 points or with-
Fifth, 2001 - 2500 out a recognized water supply and having a
Sixth, 2501 - 3000 fire department grading over 1755 or with a
Seventh, 3001 - 3500 water supply and no fire department or with
Eighth, 3501 - 4000 no fire protection.
•
RELATIVE VALUES
Points
Water Supply 1 ,950
Fire Department 1 ,950
Fire Service Communications 450
Fire Safety Control 650
TOTAL , . . 5,000
Additional points of deficiency are applied under Climatic Conditions where
these are In excess of .the normal for the United States, and under Divergence
where the gradings of Water Supply and Fire Department are greatly different.
Form PG 32 ( 11-73)
Now
PIPE REPLACEMENTS FOR FY1974-75 (in order of priority)
1. Sattler, 94th to 98th (replace 4" O.D.)
800' of 12" C.I. @ $10.00/ft $ 8,000
2. 96th, Murdock to Sattler (replace 4" O.D. )
1800' of 8" C.I. @ $6.00/ft $ 10,800
550' of 6" C.I. @ $4.50/ft 2,475
13,275
3. Bull Mt. Road, 150th to 90° bend (rep. 6" 0.D. )
1400' of 12" C.I. @ $10.00/ft 14,000
4. Derry Dell, Park to Watkins (replace 4" 0.D.)
1300' of 6" C.I. @ $4.50/ft 5,850
5. 133rd, south of Bull Mt. Road (repl. 4" 0.D. )
900' of 8" C.I. @ $6.00/ft 5,400
6. 114th, north of Bull Mt. Road (repl. 4" 0.D.)
500' of 6" C.I. @ $4.50/ft 2,250
7. Pacific Hwy, Garret to Walnut (reps. 6" O.D.)
Now 1100' of 12" C.I. @ $10.00/ft 11,000
8. Fern St. , west of 135th (replace 4" O.D. )
300' of 12" C.I. @ $10.00/ft 3,000
9. 117th, south of Gaarde (replace 4" 0.D.)
640' of 6" C.I. @ $4.50/ft 2,880
10. Commercial, Hall to Main (replace 6" 0.D.)
1450' of 8" C.I. @ $6.00/ft 8,700
11. 103rd, Inez to MacDonald (replace 4" 0.D.)
1300' of 6" C.I. @ $4.50/ft 5,850
12. Watkins, Derry Dell to Walnut (replace 4" 0.D. )
1500' of 8" C.I. @ $6.00/ft 9,000
13. Miscellaneous pipe replacements 795
$ 90,000
°tor
_ _ _
7
PIPE LINE EXTENSIONS FOR FY1974-75
1. Reroute 8" C. I. under Fanno Creek on Main St $ 3,000
2. Crossing of railroad tracks at 98th and Katherine:
280' of 6" C.I. @$4.50/ft $ 1,260
24' and 30' of 12" steel casing 1,740
3,000
3. Pacific Highway, Johnson to MacKenzie
500' of 12" C.I. @ $10.00/ft 5,000
4. Miscellaneous extensions and cost of absorbing
difference in larger sized mains 4,000
$ 15,000
OTHER MAJOR ITEMS FOR FY1974-75
VMr►
1. Cushman Motor Scooter: • $2,400
2. Addition to Shop building: 25,000
3. Surge suppression manifolds on
132nd St. pumps: 7,000
4. Auxiliary power at #1 pump
station (diesel): 10,000
5. Additional telemetry: 5,000
%w
Now
AN)) C'11,\R(;1' '
'!'Un 1 "I N I'VIN 131- AN
Minimum C1t+inti? 'l'e.tnl ;nT-
114T(_nC 1'�_ �.�. per,Month C l' ' 1 000 c fl/ink)
rton $l,c0 104/1(10 of -- 1st 1000 of
Cornelius 4.50 3000 €-;11., included -- then 70(72/1_000 i;al. 7 ( t
Forest Crone 3.00 3 000 gal. included -- then 36c /1000
Hillsboro 3.30 400 of inclnde'1 - then 304/100 cf 5.22
She \vonci 4.00 4(1(10 �;.11e included -- then 2W1000 pal 4,87
Tuolotin 3,50 3110 cf included tlie,I 80(,,/1011 of
fo;- next 101) of, 60c7100 ,-i for
next ,11)0 of 8.50
%kr Metzger 2.00 250 of included - then 44,1100 of 5,30
Tigard 3.00 600 of included - then 4N/100 of 4,60
West Slope 2„30 500 of included - then 40(,7100 cf 1. Pit ^`
\\rol ti Creek 2.50 300 of included then 404 j l 00 of
for next 700 of, 320/11)1) of for
cry nr 10110 c f 3,3()
Rates :Ire for single f< m.ily homes on 5/8 y. 3/4 nmeters inside the
ugeno r l)onnd,ary.
'err
TIGARD WATER DISTRICT 13841S. W. COMMERCIAL ST.
TIGARD, OREGON 97223
PHONE (503) 639-1554
January 25, 1974
ADMINISTRATOR'S REPORT
In a letter dated January 11, 1974 Manager Robert Hyle, Portland
Bureau of Water Works, described the new water rates approved by the
city council which will become effective July 1, 1974. (copy enclosed).
It increases consumption costs from 250 to 310 per 100 cubic feet.
Also, an entirely new charge has been imposed, that being a "System
Development Charge" for each new connection, cost of which is based
upon either the size of the meter or number of dwelling units.
The following comments are presented regarding the new rate structure.
a. Staff action.
Upon entering into an agreement dated April 23, 1973 with the City
of Portland it was with the understanding that it would be mutually
N- beneficial to both parties. The Tigard Water District would benefit with
another source of water while the city would gain from the revenues earned
by selling surplus water.
A condition of this agreement provided that the district would abide
by the terms and provisions of Ordinance No. 130672, Title 21, Water
Regulations, of the code of the city, as it presently exists or may there-
after be amended by the city council. In view of this condition, the city
has no legal obligation to consult, advise, or obtain approval of the
district for rate changes.
It was a type of seller-purchaser agreement in which Portland desired
to sell surplus water and the district wanted to buy it at the rates imposed.
Although the terms of the contract weighed heavily in favor of the seller, it
was considered satisfactory to the district. It was never believed, however,
that either party would arbitrarily establish entirely new concepts in water
usage or rate charges without at least consulting with the other party.
When establishing a wholly new concept in additional charges to a dis-
trict it would appear appropriate, and a matter of courtesy, for Portland to
refer the financial study or a summarized copy thereof of the proposal to
``"' ADMINISTRATOR'S REPORT (Continued)
each water district being served Bull Run water for comments and recommenda-
tions. A consensus of the views of the water districts could have been
established and presented to the city council either by Mr. Hyle or a repre-
sentative from the water districts. As matters stand now, Portland has many
dissatisfied and disgruntled wholesale water purveyors who do not desire to
discuss the new concept in charges after it has been approved by the city
council. The situation is similar to the Arabs and their oil. Instead of
oil blackmail we have water blackmail.
In all due respect to Mr. Hyle, he has, during his tenure as Manager of
the Bureau of Water Works, attempted to be fair and reasonable in his associa-
tions with outside water districts. He was instrumental in eliminating the
unpopular 50c/meter/month surcharge to outside city customers.
I am disappointed in the city council, who approved the new rate struc-
ture by a 3-2 vote, when they accepted the recommendations of the so-called
financial experts, Bartle-Wells, a California firm, with very little considera-
tion of the customers or managers who have to administer the system. I do not
believe the officials at the Bureau of Water Works were given enough time to
fully review the proposals and make sound recommendations. Consequently, much
of the goodwill established by Mr. Hyle will "go down the drain". Further,
I predict that the precipitant action of the city council will result in an
INF
embarrassment to them.
b. Monthly user rates.
The proposed increase from 25c to 31c per 100 cubic feet is not unusual
and well within the prerogative of the City of Portland. As long as the
charges are reasonable and not arbitrary one can expect periodic increases
such as proposed.
If I were Mr. Hyle and considering rate increases I would first review,
in detail, the need for such increases. I would ask my staff the following
questions:
1. How can other water purveyors produce and sell water at a profit
to other water districts at 50% less than Portland charges?
2. Can the Portland Bureau of Water Works be managed and operated more
efficiently? Do we have too much deadwood?
3. If Portland is now retailing water to large consumers within the
city @ 100 per 100 cubic feet, is the Bureau making exorbitant and unfair
profits by wholesaling it for 25c per 100 cubic feet to out of city users?
-2-
ADMINISTRATORS REPORT (Continued)
4. Are the profits from water sales being diverted to other agencies
within the city government?
5. Is Portland being fair to those outside districts that must rely
solely upon Bull Run water?
Mr. Hyle in his letter states that the increases during the past 17
years average 3.57. per year which can be attributed to inflation. I contend
that, with real effort, a public utility can beat the inflation spiral by
increasing water sales and operating more efficiently.
We can only presume that Mr. Hyle researched the matter thoroughly
and the user rate increases are necessary. If we think not, perhaps the
Public Utility Commissioner should be consulted.
c. System Development Charge.
This is a relatively new concept in water charges that water utilities
have been using on an increasing scale to improve their financial position.
It amounts to an additional fee for connecting a meter to the water system.
The revenue helps pay some of the costs for existing and future capital
AMOY
improvements. I believe it is legal as long as it is imposed within a city
or district. It is illegal, in my judgment, to base this charge on the
number of dwelling units and/or impose it upon other water districts or
purveyors.
d. Per unit charge schedule.
There have been several court decisions which have ruled that basing
either water rates or meter installation charges on the number of dwelling
units is arbitrary and discriminatory. A recent Washington County Circuit
Court case resolved in favor of the plaintiff against Progress Water District
(now Metzger) when Progress imposed a $100 per unit meter installation charge.
(record of case enclosed). Related cases on record deal with user charges
based upon number of units are:
Oregon State Supreme Court: Kliks vs Dalles City, 28 Oct 1958
Oregon State Supreme Court: Knappa Mobile Court vs Knappa Water
Assn. , 13 Sept 1971
The courts ruled that classifications by unit for water charges were
unauthorized, arbitrary, discriminatory, and unreasonable.
w
-3-
Now ADMINISTRATOR'S REPORT (Continued)
Example: Consider a 3-inch meter installation for an 100-unit apart-
ment and a similar 3-inch meter installation for a large restaurant, both of
which are commercial enterprises. The main tap, service line, meter installa-
tion, and maintenance costs would be identical to the water district. Pre-
suming that the meters were adequately sized, the water consumption would be
relatively the same and they would tax the water system in a like manner. To
charge the apartment house on a higher schedule than the restaurant is un-
justified and discriminatory. In my opinion, the court's ruling is fair.
I was surprised to learn that many cities and water districts continue
to employ this type of rate schedule in assessing multiple dwellings. I
believe they are subject to law suits and possible claims for reimbursement
from those developers overcharged. Ignorance of the law is no excuse.
e. Size of meter charge schedule.
As indicated above, this is a valid charge and any purveyor can impose
it upon its new customers.
1. Re-metering charge.
�.. It is believed that Portland cannot impose the "system development
charge" on customers that they do notserve directly. For example: the
district has a direct connection to the city via a 10-inch meter. The
connection authorizes the purchase of surplus water, if available, to the
maximum extent which is about 5500 gallons per minute. Now, whether the
district dumps the water into the Tualatin River or re-meters it to other
customers should be of no concern to Portland. The re-metering does not
tax their system anymore than the amount of water that can be transmitted
via the 10-inch meter. Therefore, the argument that the new (re) meters
place an additional burden upon the Portland system is poppycock. To impose
a "system development charge" on the 10-inch meter (which is also illegal;
see below) and each new meter served via the 10-inch meter is a duplication
of charges for the same water supply.
2. Surplus water.
I believe that applying the "system development charge" for all outside
users who are entitled to purchase only "surplus" water is erroneous. A
significant paragraph of our contract with Portland is quoted as follows:
"Purchaser recognizes and agrees that City will furnish and sell only
surplus water under the terms and provisions of this agreement, and it is
the duty of City to furnish water at normal volume and pressure to the City
of Portland and its inhabitants before selling or furnishing any water to
Purchaser; however, subject to the above-mentioned exceptions and those
hereinafter set forth, City will endeavor to maintain on its distribution
irave
system at the point of the Purchaser's connection a normal volume and
pressure flow".
-4-
"'` ADMINISTRATOR'S REPORT (Continued)
Since Portland can sell only surplus water and cannot guarantee a water
supply beyond its boundaries, it would be illegal to impose a charge whereby
outside users were required to "buy into the system". "Buying into the
system" infers ownership and the inherent right to the same privileges and
rates as the other owners; namely: customers within the city limits who
have first priority on the water supply. Portland cannot legally guarantee
a water supply to outside users, and consequently, cannot, in my judgment,
demand that outside users "buy" a portion of the municipal corporation.
The Portland water system is not for sale, and selling it wholly or in part
is unauthorized. This is an application of the principle that in any corpora-
tion each stock holder has the same basic rights and privileges.
3. Moral right.
It is illogical thinking to arrive at the conclusion that the district's
new customers should help pay for Portland's distribution and storage facili-
ties. Outside water purveyors have their own systems to build and maintain.
The "system development charge" is a logical and legal method for a water
district to build its system. Also, Portland and the Oregon State Board of
Health expect each district served by Bull Run to have 3-days average demand
in storage facilities as evidenced by Mr. Hyle's letter last summer when a
mew
shortage appeared imminent.
In conclusion, it is believed that outside water districts can only be
held responsible to pay a fair and reasonable price per 100 cubic feet for
the surplus water actually purchased from Portland.
I predict that the "system development charge" imposed outside the city
(both per meter and per unit) and the per unit charge within the city will be
rescinded prior to July 1st or appropriate law suits will prevail.
New subject:
You have been invited to attend a meeting on Tuesday evening, February
5th @ 7:30 p.m.. in the Water Service Building Auditorium located at 1800
S. W. 6th Avenue to discuss the new water rates and charges as well as the
ST&R Comprehensive Source & Use Study.
Respectfully submitted,
:7411-1
d 1-th4L'
Robert . Santee
Administrator
cc: Mr. Robert Hyle
wow -5-
T yH�E -CITY® qO OF
Ja:J;aly 11,
® e Tigard Water District
c/o Robert Santee, Manager
DEPARTMENT OF 8841 S. W. Con erci?1
PUBLIC WORKS Tigard, Oregon 97223
LLOYD E. ANDERSON
:OMMISSIONER Dear Mr. Santee:
P'UREAU OF
WATER WORKS ,I_.__ Portland City Council has approved an 1ncrea e in -4ater rates ::o
RDI;ERI C. HYL-F re effective July 1, 1974. Rates outside Portlai:d c.:ty bc?ltidariec,
MANAGER save been establish-d as follows:
PONT! N.AND,HR AVE. i,unthly luster rates i:or 'ja;:er used:
�JRT1 GR _��.1�i 1
For •:..;;a:ss
For ar�a, sz;pp U d by
cra
E''>rst 20,000 cu. ft. par 100 cu. fc. $0.34 $0.43
Ne:,.t 100,000 cu. ft. per 10!) cu. ft. 0.3) O.3
All over 120,000 cu. ft. per 100 cu. ft. 0.2f- 0.31
In i^;kl__tior, a System Deve1.cynan: Che will 5eimposed for 'o:_'l L.-ay
Sar-7141: .o t ctin_3 totit_' •;!ror system both insi.:e ana ,c._..:
t{
City .Limits. Such charga will be the size of sa:ri ce chs gewot
t:a.> per unit charge, whichever is the greater, payable ar the tiwa of
application for scrri.e.
(3) Size of t er;;_ce C,..ir?e Szhcdule
3/4" $ 300 4 ti $ 2,3:0
1" 500 6" 3,600
800 0" 4.,500
2' 1,200 10" 6,000
3" 2.,001 12" 10,000
(b) Per F ii.t•Ch.ar;e Sche.ule
Single 1.Mill} Dve11::_r'.g f).-r f).-runit
T)uple:c 25:) per 117:at
D".ielli.nvs of 3 or more ,'.nits 202 �,?r :i.74i:
Au aJ.1. ','in-e his been n :ie fe: refunds on the 3vste:a
11- r; e to anyone i..?;on the Portlai_'l '. :e s j:iteri 1iith.Li
t::t years after payment. :Such refund will be mad?, to tile ..;ubstit; :E
311pply ;sr', y, les,- s: per year ZO2 one:at.ona
P - mar,,; ,. •?•Wr, Wad. - "" a...»..,*eu, w—�—., __
January 11, 1974 Page 2
On the,.theory that new users placing an additional demand upon the
water supply and distribution system should equally pay for the
ce,,elopment of those new services, the System Development Charge
will be imposed on all new connections and become payable upon
application for permit for water service.
I request you to please note that although water rates were generally
increased 44% inside the City of Portland the increase only amounes
to 26% to outside users, thereby reducing the parity between the two
rates.
Even though the overall rate increase is relatively high, it is
interesting to note that a 25% increase 21/2 years ago plus the pre-
sent 44% increase averages out as 3.5% per year over the past 17
years, considerably less than the national inflation rate.
The additional revenue projected for the next 4 years will meet a
. Capital Expenditures program which will allow the Portland Bureau
of Water Works to meet anticipated demands for system improvements
to distribution and storage, as well as water quality standards.
Even though the increase will not become effective until July 1,
1974, it was approved now to provide sufficient time for you and
the Bureau of Water Works to prepare budgets accordingly.
Within the next month we expect to receive the final report from
` OW Stevens, Thompson & Runyan on their comprehensive grater study and
recommendations on alternatives for additional source of supply.
At that time it will be our desire to invite you and representatives
of your Board that nay desire to attend to an evening meeting where
we may discuss the Stevens, Thompson & Runyan report plus whatever
questions you may have on the rate structure or System Development
Charge.
Sincerely,
V' '
4f
Robert C. Ryle
Manager j j/
RCH/mka
fire
DMAR 1
c. 6
k'•
19?3
•_
Circuit Court of Oregon
Hollie Pihl
Judge Ti'asAington County
Twentieth Judicial District
FtILV.BORO, OREGON
March 15, 1973
• William C. Ogilvy George E. Birnie
Attorney at Law Attorney at Law
505 Franklin Building American Bank Building
Portland, Oregon 97204 Portland, Oregon
Re: Franklin Service Corp. Vs Progress Water District
Case No. 32-967
Gentlemen:
This suit involves a dispute between the builder pf a
multiple unit apartment building and the water district
over hook-up charges based on the number of units in the
building . The hook-up charge being $100.00 for each
dwelling unit plus construction costs .
Prior to this schedule being promulgated the hook-up
charge was the construction costs regardless of the
number of living units or demand on the water system. •
According to paragraph 2 of the new schedule, the service
connection fee is $100.00 regardless of potential demand
except for multiple duelling uses .
As stated in Plaintiff's Trial Memorandum, the question
presented by this suit is whether the connection charge
is arbitrary and capricious . The court is of the opinion
that the district has set up an improper classification
by unjustly limiting the new schedule to multiple dwel-
ling units as opposed to including other non-dwelling
uses that: would probably place a greater burden on the
existing distribution system.
• Franklin Service Corp. -2-
vs
Prou.ess Water District
In that neither party requested special findings prior to
trial, counsel for Plaintiff may prepare a decree in
general form providing for the relief prayed for in
Plaintiff 's complaint less 000.00 which all new users
would have to pay.
Very truly/yours,,
h
HOLLi.CE PIlL
Circuit Judge \,
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SCHEDULE
CONFIRMING CHARGES FOR SERVICE CONNECTIONS
The charge to applicants for a service connection to the water
supply facilities of PROGRESS WATER DISTRICT shall be:
1. If the service connection is made to a multiple dwelling
facility, the charge shall be the actual cost of the construction of such
service connection, including labor and material, and the cost of engineering
services, plus an additional charge of $100.00 for each dwelling unit of such
facility.
2. The charge for all other service connections shall be the actual
cost of construction, plus an additional charge of $100.00.
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