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03/11/1975 - Packet March 11, 1975 AGENDA CALL TO ORDER 1. RESOLUTION TO APPROVE MINUTES OF LAST MEETING 2. VISITORS 3. RESOLUTION TO PAY VOUCHERS 4. RESOLUTION TO HOLD A PUBLIC HEARING ON .APRIL 15, 1975 TO CONSIDER A USER RATE INCREASE OF 400 CUBIC EFIT FOR $3.00 PER MONTH MINIMUM AND 50¢ PER 100 CUBIC kEET THEREAFTER 5. OTHER BUSINESS 6. PRESENTATION BY MR. JIM SAVAGE, COOPERS & LYBRAND, ON THE AUDIT REPORT OF THE TIGARD WATER DISTRICT FOR FISCAL YEAR 197' -74 ADJOURNMENT Allow ADMINISTRATOR'S REPORT 1. Resolution to approve minutes of last meeting_ as written. 2. Visitors. The budget committee was invited to attend this meeting to consider the proposed consumer user rate increase. They are: H. Dale Johnson Neil Longfellow George Marshall Michael. O'Neil William M. Stebbins 3. Resolution to pay vouchers. 4. Resolution to hold a public hearingon April 15, 1975 to consider a user rate increase of 400 cubic eet for $3.00 per month minimum and 50¢ per 100 cubic feet thereafter. In the attached folder you will find information on this subject. 5. Other business. 6. Presentation by Mr. Jim Savage, Coopers & Lybrand, on the audit report of the k'igard Water District for fiscal year 1973-74. Mr. Savage also teaches a class at Portland State College, but he hopes to attend our meeting by 9:00 p.m. AM -1--1- ADMINISTRATOR'S REPORT (Continued) 7. Water supply from Scoggin Dam. Enclosed are copies of correspondence on the district's rights to 2,500 acre-feet (815 million gallons) of water at Scoggin Dam. Information is presented by: a. Administrator's report of October 8, 1974 (Page 9) b. Ken Baines' letter of December 2, 1974 c. Dept. of Interior letter to Clarence Nicoll dated February 20, 1975 d. Tigard Times newspaper article dated February 20, 1975. Mr. Gil Meigs, ST&R, was requested to advise on the merits of retaining the water rights at Scoggin Dam in view of our endeavors to obtain Willamette River water. He thought it might be wise to retain those rights for the present for the following reason: If the Willamette River is selected as the new source of water it may not be feasible to obtain "free" flowing water at Wilsonville NSW because of PGE's rights at the Oregon City Falls. If not, any water appropriated would have to be replenished with a like amount. In this case, water could be purchased from the Corps of Engineers who would "release" water at the dam sites upstream on the Willamette River. As an alternative it may be in our best interests to purchase water from the U. S. Department of Interior who would "release" water at Scoggin Dam where water would. flow down the Tualatin River into the Willamette River above the Oregon City Falls. In conclusion, it would appear that the district should retain its rights to the Scoggin Dam water for the immediate future. 8. Water pumped from wells, calendar year 1975. Month Actual *Actual Allocation/month Actually pumped 1975 Cubic Feet Acre-feet Acre-feet in past years: Acre-feet Jan 3,565,520 81.9 88 Feb ,759,740 86.3 88 1970: 1,616 ' 1971: 1,418 Total: 168.2 176 1972: 1,501 1473: 1,269 1974: 924 * 1 acre-foot = 43,560 cubic feet -2- • ADMINISTRATOR'S REPORT (Continued) 9. Unmetered water. Pumped Purchased* Total Sold Loss Month & Cu. Ft. Cu. Ft. Cu. Ft. Cu. Ft. Cu. Ft. Loss Year x 1000 x 1000 x 1000 x 1000 x 1000 Feb 1975 3,760 2,802 6,562 5,513 1,049 16.0% Cumulative Total: (FY 1.974-75) (8 months) 72,485 64,120 8,365 11.5% *43% of the water consumed during February was purchased from Lake Oswego. Past summary of losses: FY 1972-73: 18.3% FY 1973-74: 11 .1% `1w 10. Work accomplished during February 1975: a. TWD installed 1510 feet of 8" C.I. + 4 fire hydrants along Commercial Street, between Hall and Main, to replace 6" O.D. steel pipe. (Pipe replacement). b. TWD installed 6" fire service for B & T Investment Company located on S. W. 72nd Avenue, south of Bonita Road. (Developers) c. TWD installed 6" fire service for Partex Company located on access road near Hunziker Road. (Developers) d. TWD installed 15 meters (4332 - 4318). District also serves 116 meters in Metzger Water District. Total: 4,448 *r -3- ADMINISTRATOR'S REPORT (Continue 11. Work to be accomplished during remainder of fiscal year 1974-75: March 1975: a. TWD install 780' of 12" D.I. + 2 fire hydrants along Hall Blvd., Commercial to Scoffins, to replace 6" 0.D. steel pipe. (Pipe replacement). b. TWD install 660' of 6" C.I. + 2 fire hydrants along S. W. 117th Avenue, south of Gaarde Street, to replace 4" 0.D. steel pipe. (Pipe replacement). c. TWD install 4" fire hydrants at following locations: (1) Ash Drive and Frewing Court (S. W. corner). (2) Hill View and 103rd (S. F. corner) April 1975: ,, a. TWD install 1200' of 8" C.I. and 720' of 6" C.I. + 1 fire hydrant along S. W. 96th Avenue, Murdock to Sattler Road, to replace 4" Q.D. steel pipe. (Pipe replacement). b. TWD install 550' of 8" C.I. along Pacific Highway, between Johnson and MacKenzie Streets. (Pipe extension). May 1975: a. TWD install, along with Cornell Manufacturing Company, a pump station, with 3-25hp pumps at new Hi Tor reservoir site to provide adequate pressure in area. (General Fund). b. TWD install 200' of 6" C.I. and 200' of 6" plastic pipe in 36" steel casing under 2 sets of railroad tracks on Bonita Road, between 74th and General Chain Bar Company. (Pipe extension). June 1975: a. TWD install 4" fire hydrants at following locations: (l) James Street at Howard Drive (S. W. corner) (2) 119th and North Dakota (N.E. corner)(6" fire hydrant) (3) Burlcrest, between Burlheights & Summercrest (cul de sac) (4) 121st and Summer (S. W. corner) (5)Awry 121st and Katherine (S. E. corner) ) 116th and Lynn (S. W. corner) (7) Lynn, between 118th and 119th (So. side between TL 135 & 136) (8) 88th and Pinebrook (N. F. corner) -4- V._ ADMINISTRATOR'S REPORT (Continued) 14. Water supply from Scoggin Dam. A Board of Commissioners' resolution on April 13, 1971 approved the proposed form of contract between the United States and Tigard Water District for a water supply of 2,500 acre-feet (815 million gallons) annually from Scoggin Dam when the dam is completed. This was subse- quen`ly approved 3y formal contract #14-06-100-7182 dated November 18, 1971 and signed by the Chairman and Treasurer. Enclosed are copies of some of the pertinent correspondence and extracts of the contract on this subject. The Scoggin Dam project will be completed next year. Under the terms of the contract the Tigard Water District must meet some of its obligations provided therein. The district can obta .n water at either the dam site or on the Tualat:i.n River near Tigard with a treatment plant. The estimated cost for a 15-mile pipe line frim Hillsboro to Tigard in accordance with the Washington County Master Water Plan is estimated at $4 million consisting 28-inch to 40-inch pipe diameters. A treatment plant would cost about 25¢ per gallon or $2.5 million for a 10-million plant. Obviously, the TWD is not prepared to take on either project in the immediate future. The Tualatin Valley Irrigation District will meet at 9:00 a.m., October 21st, to review water release schedules from Scoggin Dam for 1975. (Letter enclosed). The TWD has made a commitment to purchase 2,500 acre-feet annually, but this can be deferred for a 10-year period. Thus, the TWD is not obligated to repay its share of the construction charge until 10-years after water becomes available It should be noted that commencing next year the district will be obligated to pay its share of the annual operation and maintenance costs. These costs without deferral are shown to be $1960. Costs with deferral are based upon the proportion of each entities quantity of water under contract to the total quantity of municipal and industrial (M & I) water under all contracts. Article 27 of the contract provides for the assignment or transfer of water to another entity upon approval of the Sectetary of the Interior. Efforts should be made to transfer our rights and be relieved of the financial obligation. it r✓ -9- LAW OFFICES OF WHEELOCK,NIEHAUS,BAINES & MURPHY SEO FRANKLIN BUILDING 4111109. C_E_WHEELOCK PORTLADII7,OREOOIS 97204 RUSSELL R_NIEHAUS KENNETH W_I3AINEB TELEPHONE 224-5930 EDWARD‘I MURPHY,JR_ WILLIAM C_OOILVY December 2, 1974 Mr. Robert E. Santee Administrator Tigard hater District 8841 S. W. Commercial Tigard, Oregon 97223 Re: Contract between United States of America and Tigard Water District (Tualatin Federal Reclamation Project) Dear B Ab: Enclosed is a copy of the letter I received from Mr. Norman H. Moon, Acting Regional Director of the United States Department of the Interior, Bureau of Reclamation, regarding the assignment by the District of its richts ane obligations under the captioned agreement. Also enclosed are conies of all the documents enumer- ' ated in Mr. Moon's letter. You will note that the Departmert of Interior authorized the assignment by, the City of Beaverton of its rights and obligations under its agreement, subject to the conditions enumerated in the letter addressed to Mr. Laurence R. Sprecher dated May 15, 1973. The City of Beaverton, however, remained responsible for payment of all charges becoming clue under the contract. The coruissioners should be advised that in the event the Tigard Water listrict assigns its rights under this contract and the assignee immediately diverts water from the project, the obliga- tions under paragraph 9 (b) shall immediately commence and con- tinue for the next 50 years, even though the rights and obliga- tions under the contract were reassigned to the District at some later date and diversion of water thereafter is terminated. Ve truly yours, nneth W. Baines KWB:lo Enclosures Ine ENT OF United States Department of the Interior BUREAU OF RECLAMATION I' \( FI(: NORFIIIIES'!' REGION.11. OFFICE FED RA1. BUILDING k U.S. (:(H'RTIIOUSE IN KEPI \ BON (I LI-550 WEST FORT S I RlII REFIIR TO- 43BOISE, ID;1II0 83721 191 Mr. Clarence F. Nicoli , Chairman Tigard Water District 8841 Southwest Commercial Street Tigard, Oregon 97223 Dea ' Mr. Nicoli: As you know, Scoggins Dam is completed, and filling of the re.;ervoir has commenced . Because of the uncertainties of op rating schedules and testing of the new dam, we will nmt fe •mally announce availability of water from Scoggins Dam and Ht Iry Hagg Lake for the 1975 season. Rather, 1975 will k t gated as a "test period" and water will be made available ori a "rental" basis. Water will be released to Iroject water contractors in accordance with schedules developed b.' the contractor and the United States. The rental rate for the 1915 season will be $1 .00 per acre-Yoot diverted, and shall be measured by the United States at the outlet works of Scoggins Dam and by the contractor at points of div( rsion agreed to by the United States. Water will not be delivered in excess of contractual agreements during the "test period" and water billings will be due and payable in advance of del very of water. We appreciate your cooper tion and continued support of the project, and if you have )ny further questions please cortact is. Sincerely yours, S-rL . a :ting Regional Director CONSERVE AMERICAS ENEROV Save Energ and You Serve America! 1 ----,r Ar,0 .yjIFr'i .1--p . 0 rig I Y Ts - • Scoggin water due release next summer Scoggin Dam will be operated on a O'Connor said,"Next summer,when will be relying heavily on the experi- 1975. At that time a permanent agree- test-year basis in 1975, according to water is required by the project water ence we gain to show us how to Deni :rent will be consummated. Francis J. O'Connor, Tualatin Project users downstream, we will release operate the project." const-'.:cel.:.:—. "^.gineer, and stored water through the dam. Downstream "During the initial year;water rental The contract for completion of a water will be released on a "when and flows will be regulated by the state wa- charges will be paid in advance of use, boat launch facility, access road and if available" basis to those entities termaster to recognize existing water and releases will be limited to flows or- picnic areas was awarded on Sept. 20, which now have contracts for water rights and storage water entitlements." dered by the contractors, plus the 1974. Another boat launch facility and delivery with the Bureau of Reclama- He said,"All details of this operation amounts needed to meet minimum picnic area will be constructed during yetwe' flow requirements below the Lake Os- the spring of 1975. The 1,138 acres of tion. have not been worked out, and wego Canal diversion," he said. "It is water surface is expected to provide planned that the Tualatin Valley Im- some 100,000 recreation days — boat- gation District will install water meters ing, swimming, fishing, — when all of on district water user pump lines along the outdoor recreation facilities are the river this coming spring so that the complete. amount of water delivered can be de- The highest elevation for the water termined." with the reservoir full will be 303.5 feet. The dam was closed in November, At that point, the lake will contain and the initial filling is now taking about 59,000 acre-feet of water. Inflow • • place. During the initial filling period, to the reservoir can vary greatly and the performance of the foundation, may range from almost zero to perhaps abutment,embankment and structures 4,000 or 5,P cubic feet per second. will be carefully checked by frequent inspection and measurements. The re- On Nov. 1 of each year,the reservoir sults will be sent to the Bureau of Re- must have 30,000 acre-feet of empty clamation's Engineering and Research space to help control downstream Center, in Denver, for analysis. It is floods. However, since the reservoir possible that changes in the filling controls only 34 per cent of the wa- 1 . schedule will be made on the basis of tershed area above the Dilley gage, these analyses. streamflow from the uncontrolled area, Water is to be ;,r c vided for agricul- at times, will cause flooding, even tura! use in the Tualatin Valley Irriga- though virtually all reservoir inflow tion District; for municipal and indus- will be stored. trial use by the Lake Oswego . Corporation, and the cities of Beaver- ton, Hillsboro, Forest Grove, and Ti- ' _ . gard; and for water quality flows in - conjunction with the operation of the United Sewage Agency of Washington County. Fish and wildlife, recreation, • -' ^ -' -.Tr.t.rol will also be consid- ered in the operation of the dam. The dam will be operated by the Bureau of Reclamation to accomplish these goals. An interim recreational management ", agreement between Washington . County and the Bureau of Reclamation was just put into effect. It will remain in effect until the reservoir is officially opened to the public for recreational use which is expected in the fall of RAYMOND L. VAN BEEK TELEPHONE 244-0355 CERTIFIED PUBLIC ACCOUNTANT 8435 8. W. TERWILLIGER BLVD. PORTLAND. OREGON 07219 February 25, 1975 Mr. R. Verne Wheelwright Board Chairman Tignrd Water District 14150 S.W. 144th Ave. Tigard, Oregon 97223 Dear Mr. Wheelwright: I am pleased to present the following proposal to perform the annual audit of the Tigard Water District for the fiscal year ended June 30, 1975. This proposal outlines my personal background, my staff and associates' background, and the scope and timing of the audit, as well as my audit fee. PERSONAL BACKGROUND, STAFF AID ASSOCIATES: . 5 years with Coopers and Ly )rand with heavy emphasis on municipal auditing. Worked on City of Gresham engagement and worked as the in-charge accountant or the Multnomah County engagement. . 2 years with G.I. Joes, Inc., regional retailing firm, as Treasurer and member of the Board of Directors. . Presently in )rivate practice as a Certified Publi Accountant with a separaLe license for performing municipal r dits. . I work in association with two Certified Public Accountants who share office space with me. Boti of these individuals also have municipal audit licerses. Our uti )rking agreement provides for mutual staffing assistance as rejuired. • I employ one Certifi, d Public Accountant who has obtEined her training from Price, 4aterhouse and Company, an int rnational accounting firm. . I have been assured ( staffing assistance, if requiced, from the accounting firm ut Anderson, Assor , and Hess, P,.C. SCOPE AND TIMING OF THE AUDIT: . I will perform an audit in accordance with the provisions of the Minimum Standar:is of Audit Reports, Certificates, and Procedures prescribed by tie Secretary of State in cooperation with the 1 Oregon State Bcird of Accountancy and in accordance with generally accepted audit: ig standards. . I will deliver my report to the Board of Commissioners on or before October 1, 1975. I am agreeable to a penalty provision for failure to comply with tiis stipulation. FEE: . My fee for performing the audit will be $2,250.00. I will make monthly progress billiigs as my work progresses. This fee quote is based on the assumption that I will receive some assistance from your staff in the preparation of schedules and photo-copy work. If you have any questions or wish to discuss any of the iteirs contained in this proposal feel free to call me at 245-2297. Thank you for the oppc,rtunity to present this proposal. I look forward to serving you. • Respectfully, • / Ray Van Beek RVB/p r • I nom. lir I ICI L, CnrrC, E E . EMIPNIE AMi VIII 411 Unrin nVILplN(. February 26, 1975 1 Mr. Gene Seibel, President Tri-County Water District Association 12845 N. 4. Cornell Road PorLlane., Oregon 97229 Re: SB 540 Major Facilities Equalization Charge Dear Cone: I send to you with this letter several copies of SB 540, introduced February 25th by Senator Pallacic of Multnomah County. It would require cities, counties, water districts and others (defined as a "telt of local govermnent") to impose a "major facilities equalization charge" on all new users so that each could pay his fu" 1 share of the costs of the construction of facilities to serve such new user. The equalization charge can be in the form of a service connection charge, sp( cial assessment or an "escalating service charge". The Bill carries an emergency clause, which would make it effective immediately 441610 when signed by the Co-rernor. The Bill is short, )ut I direct your attention to Section 1(3) which defines a "new user" to be properties either inside or outside the local gov- ernment unit whose facilities must be extended, if such property has not con- tributed to the "orig nal or crntinued landing of the public service thrcugh assessment or ad valo em taxes '. Section 1(1) (d) prov deo that every charge may be spread over a ten year period. - As I read this Bill, the following would appear to be the result: 1. Since the City of Portland levies no tax on property outside its boundaries, the City would not be required to impose the tax on its own users, but only on users outside its boundaries, including the customers of a water district. 2. There is a limitation on the amount of the charge. Section 1 (1)(a) appears to provide that the charge can be made only as to the "cost of expanding present facilities and constructing new facilities necessary to pro- vide public service to an additional :tr 'a outside or inside the boundaries" of the g,e-•ercnnrnta1 unit. 3. Th( asse sment of charge :s npt optional, but i:; required to be imposed by cities , coo ty service districts, water districts and others. !'resident liltit,,i ; ')f , N75 I spoke with Senator Hal lack concepning this measure, and he stated that the Bill was really the brain child of former Commissioner of the City of Portland Lloyd Anderson, who now serves as the manager of the Port of Portland. It is really a City of Portland proposal, and it would appear that the City wants this legislation because when it imposes the service conne._!tion charge, it can always claim that it was requi red to do so by the' Legisl a :ive Assembly, anti ' he City had no part in it . AL the time of my speaking to him, Hal lack was • nol Iul 1 v conversant with the I'.I I I . He did not bel i eve [hat it had any extra • t• trr it_or i;tl oheration. knrt.ht rmnre, he did not know tha the lti ; I rnvt'rr(f also coni tv service districts onti water districts. 1 think this is one of the most important measures to come before , this Leg,slative Assembly affecting the future of water districts, and it is my sttf'.;estion that the Board of Tri-Cgnnty Water District Association meet to dir - cur this measure and recommend the action to be taken regarding it. if the Bo: rd members have any wish to introduce into the Legislative Assembly a pro- pot,al for Public Utility Commissioner approval of outside water rates, this Bill would be an excellent vehicle for which to attach such amendment. I send to you with this letter several copies of an amendment which you may consider in this regard. The amendment refers to ORS 757.005, which exempts municipal corporations from the application of the Public Utilities Law, and also to lay ORS Chapter 757, which is the general law pertaining to the regulat on and rate structure of public utilities not exempt. The amendment does not a feet the right of a city or a service district (water district) to make the ates and charges for customers within its boundaries, but is applicable only to customers • outside its boundaries. If you wish to meet with me to discuss any aspect of this, please. call. 1 am certain that this Bill is going to move pretty fast, and that we can expect • a hearing date within the next week or so. The Senate Committee on Local Gov- ernment does not have any bills before it, and is undoubtedly waiting for -this one. Best reCC;trds. Very truly yours, GER:t'vrt Enclosures Li] ! !, 540 SPO PJSORED BY SENATOR HALLOC K • 510 [2] t A BILL FOR AN ACT 2 t'i•It,l ing to units of local government; and declaring an emerge ncy. 41110+1 Be Il Enacted by the People of the State of Oregon: 4 SECTION 1. As used in this Act: 6 !) ' scalating service connection charge" means the fee charged new 6 015 of public services by means of an ordinance which: 7 (a) Estimates the total costs of expanding present facilities and con- 8 structing new facilities necessary to provide public services to an addi- 9 t ionat area in or outside the boundary of a unit of local government pro- 0 vidin!r the services; (b) Estimates the total number of new users ultimately expected to za benefit from the expanded or new facilities; 13 (c) Determines thereby the average cost per user; and 14 (d) Provides for the total increased costs to be paid in 10 ears or less 16 by connection charges, increased annually, with initial charges less than 18 the estimated average, final charges greater than the estimated average 17 and estimated average charges reached within five years after adoption 18 of the ordinance. 19 (2) "Major facilities equalization charge" means the assessment, 20 charge or fee made against all new users of public services to ensure 21 payment of the full and apportionately fair share'of the cost of expand- 22 ing or constructing i acilities necessary to provide public services to the 23 new users. 24 (3) "New users" a leans those real properties, either in or outside the 26 boundary of a unit of local government, to which the unit of local govern- 28 ment's public services are to be extended and which, prior to receiving • 27 the services, have not contributed to the original or continuing funding 28 of the public service through assessment or ad valorem taxes. 29 (4) "Public services" includes, but is not limited to, supplying electric $0 Dower, water and lighting and 'collection and treatment of sewerage and 31 waste water. 32 (5) "Units of local :overnment" means joint operating agencies for 83 electric post er, domesti water supply districts, water control districts, ilrr` { • [33 SB 540 1 municipalities, highway lighting districts, sanitary districts, metropolitan • I service districts and county service districts. $ SECTION 2. (1) Units of local frovernment shall require a major fa- 4 cilities equalization charge of all new users of public services to pay their 6 full and apporiionate share of the costs of expanding or constructing } I facilities necessary to provide the public services to the new users. 7 (2) The major facilities equalization charge may be in the form of a 8 special assessment, a service connection charge or fee or an escalating 0 service charge. 1rir+ "Section 3. Notwithstanding the provisions of ORS 757.005, a unit I ' of local F,overnment is subject to the provisions of ORS Chapter 757 with respect to the furnishing or supply of public services and the making of an 'r. assessment or other requireuleny t fcr payment of a major facilities equalization • charge." �rtw'wn,.n..,..p„w+'wRr rtrtn nnl'M"nr••r..•.•�^err-nnnr.r-n rnn,r„r,„,.r.,,n.m•.. rr- .01 1.IJIVI