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05/12/1992 - Minutes e , TIGARD WATER DISTRICT 4 8777 S.W.BURNHAM ST. P.O. BOX 230000 TIGARD,OREGON 97223-9917 TIGARD WATER DISTRICT PHONE(503)639-1554 BOARD OF COMMISSIONERS May 12, 1992 Minutes of Regular Meeting PRESENT: Board of Commissioners: ABSENT: Audrey Castile, Chair Denis Borman, Treasurer Clarence Nicoll Jon Kvistad Bob Wyffels Staff: John Miller, Administrator Nancy Johnson, Bookkeeper Mike Miller, Engineering Technician Ill Lorry Christian, Administrative Assistant Visitors: S. Carolyn Long, Tigard Chamber Ruth Martinson Hill Hampton, Tigard resident Eric Martinson Jim Nicoli, Tigard resident Sydney Sherwood, former Commissioner Jack Polans Tom C. Barber, Tigard resident John A. Buol, King City David Lyons Pat Reilly, City of Tigard Jerry Edwards, City of Tigard Robin Franzen, The Oregonian Gregg Davidson, Davidson's restaurant Judy Fessler, City of Tigard Budget Hearing for FY 1992-1993 The meeting was called to order by Chair Castile at 7:32 P.M. 1. Visitors Chair Castile welcomed the visitors and asked if anyone wanted to address the Board regarding the proposed budget. No one wanted to make any comments. 2. Steps necessary to add general manager's salary to FY 1992-93 Budget Chair Castile asked Administrator John Miller to review the process for adding a general manager's salary to the FY1992-93 Budget. Administrator Miller did so. On Resolution 3-92, the dollar figures have been adjusted to allow for including the salary for a general manager, although the total of the budget has not been increased. A motion was made by Commissioner Jon Kvistad and approved by Commissioner Clarence Nicoli to approve the adjusted budget figures for Resolution 3-92 (which will be reviewed later in the meeting). A voice vote was called. The motion passed unanimously. 5/12/92 Regular Meeting, Board of Commissioners Chair Castile asked if there were any other questions or comments. Hearing none, she adjourned the Budget Hearing. Public Hearing for Proposed Rate Increase: Chair Castile called to order the public hearing for a proposed rate increase. 1. Visitors and comments Chair Castile welcomed the visitors and asked if anyone wanted to address the Board regarding the proposed rate increase. No one wanted to make any comments. Chair Castile asked Commissioners if they had received any input. Commissioner Kvistad said people who talked to him said it had been a long time since the last increase, and they felt the proposed increase was justified. Chair Castile said she received several letters from people who said they understood that this rate increase was justified. Chair Castile asked if there were any other comments. Hearing none, she adjourned the public hearing for proposed rate increase. Regular Meeting: Call to Order at 7:36 P.M. 1. Resolution to approve the minutes of the April 14 Regular Board Meeting. A motion was made by Commissioner Kvistad and seconded by Commissioner Wyffels to approve the minutes of the April 14 regular Board Meeting. Chair Castile said she wanted the minutes to be amended as follows: - page 2, No. 5. sentence in middle of paragraph should read: "Costs of operating the property will be an issue in deciding whether to proceed further or drop the issue of having the property considered by the City or the Chamber of Commerce." (Add the words in italics.) - page 3, No. 7 b. sentence in middle of paragraph should read, "He wants TWD to give him cost information for running 4 hydrants 24 hours per day, and information on ground water level from wells." (Add the words in italics.) Hearing that there were no other corrections, a voice vote was called. The resolution passed unanimously. 2. Visitors Chair Castile said she wanted to move this item down on the agenda. 3. Resolution to approve the payment of vouchers. Motion was made by Commissioner Nicoli and seconded by Commissioner Wyffels to approve the payment of vouchers. Discussion was called for. 2 • 5/12/92 Regular Meeting, Board of Commissioners Commissioner Kvistad asked about check #37685, Dirollo Landscaping & Irrigation. Administrator Miller said that was for landscaping the High Tor reservoir site. Commissioner Kvistad asked about Check #37697, Hornet Foundation/CSU Sacramento. Administrator Miller said that was for training films and materials. Commissioner Kvistad asked about Lakeside Industries. Administrator Miller said they are the people who did the temporary patching on the Bonita Road main break. Commissioner Kvistad asked about check #37713 to J. Carol Pope Manufacturers Rep. Administrator Miller said they provided the louveres for the new generator. Administrator Miller also said that the new generator is in place. Hearing no further questions, a voice vote was called. The motion passed unanimously. Chair Castile said Commissioner Denis Borman had called and said he wouldn't be able to attend the meeting because of other business he needed to attend to. 2. Visitors Chair Castile welcomed the visitors, and invited Jim Nicoli to address the Board. Jim Nicoli said he was representing a group of people which include members of the Chamber of Commerce to ask the Water District to consider trading property and taking possession of the current fire station at 8841 S.W. Commercial Street. The group which Mr. Nicoli represents has been meeting and discussing the possibility of upgrading the building so it would be available for community meetings. Chair Castile asked Administrator Miller about the status of negotiations with Tualatin Valley Fire and Rescue. Administrator Miller said we have a verbal agreement on the sale price and are working on getting a legal description of the property, and they are wanting to proceed toward a July 1 goal. Mr. Nicoli said the building contains about 8,000 square feet, and approximately $250,000 would be needed in cash, donated labor and materials to upgrade the building so it could be used. Five rooms have been identified as potential meeting rooms. Chair Castile expressed concern about how this would affect the plans of the Fire District. A discussion continued. Commissioner Kvistad said he has a conflict because he sits on the board for the Chamber, and they have not voted on this issue. Commissioner Wyffels said he has a conflict because he sits on the budget committee for the Fire District. Chair Castile said there were many questions to be answered. Administrator Miller said that the $100,000 proceeds from the sale of the Rain & Shine property is part of the income for the FY1992-93 budget. Chair Castile asked Commissioner Clarence Nicoli to be a subcommittee with Administrator to talk with the Fire District. Commissioner Nicoli suggested that the attorney be consulted regarding this issue. Mr. Nicoli gave an overview of the present structural condition of the building, and reviewed the floor plans for proposed remodeling. 3 • 5/12/92 Regular Meeting, Board of Commissioners Chair Castile said she personally would like to help the community by helping make more meeting rooms available. Her concern is that, for the Water District, we aren't giving away $100,000. She would like to see if something can be worked out. 4. Resolution to establish Capital Projects Reserve Fund #3 in FY1992-93 for 2.5 million gallon reservoir and site on SW 141st Avenue south of Bull Mountain Road at elevation 550 feet (Resolution 5-92) A motion was made by Commissioner Kvistad and seconded by Commissioner Wyffels to approve Resolution 5-92. Discussion was called for. Commissioner Kvistad asked when we would begin construction on this reservoir. Administrator Miller said 1996-97. Hearing no further discussion, a voice vote was called. The resolution passed unanimously. 5. Resolution to adopt a budget, make appropriations, levy taxes (Resolution 3-92) A motion was made by Commissioner Wyffels and seconded by Commissioner Nicoli to approve Resolution 3-92. Discussion was called for. Hearing no discussion or questions, a voice vote was called. The resolution passed unanimously. 6. Resolution to approve the proposed rate increase. (Resolution 4-92) A motion was made by Commissioner Nicoli and seconded by Commissioner Wyffels to approve Resolution 4-92. Discussion was called for. Chair Castile said there had been no negative comments from people in the community, but rather an understanding. Administrator Miller reviewed the specifics of the proposed rate increase, which is 28% overall. A voice vote was called. The Resolution passed unanimously. 7. Resolution to approve the revised Capital Improvements Plan (Resolution 6-92) A motion was made by Commissioner Nicoll and seconded by Commissioner Wyffels to approve Resolution 6-92. Discussion was called for. Administrator Miller briefly described the resolution. Hearing no further discussion or questions, a voice vote was called. The resolution passed unanimously. 8. Chair's Comments A. Direction of TWD Commissioners regarding 190 Agreements between TWD and the entities served. Chair Castile referred to the May 11 meeting she attended with Commissioner Nicoli and TWD consultant Jeri Chenelle, representatives from Durham, King City, Tigard, the unincorporated areas. This group chose the name of Tigard Water District Advisory Committee. 4 5/12/92 Regular Meeting, Board of Commissioners Chair Castile also talked about an employee meeting on April 30, where visitors C. Akin Blitz, TWD Attorney, Jeri Chenelle, TWD Consultant, and Chris Thomas, Montgomery Engineering Attorney described 190 agreements and answered questions. She said although she wasn't able to attend, she understood that the other four commissioners had attended. She said she had received two pieces of feedback: (1) the information was explained well and TWD employees left with an understanding of 190 agreements; and (2) the collective position of the Commissioners regarding 190 agreements isn't clear. Chair Castile said she thinks its very important to let the public know where they stand collectively. Chair Castile asked the Commissioners to take a vote and individually describe their positions. (She talked with Commissioner Borman prior to the meeting and got his response.) Commissioner Nicoll asked visitors John Buol, City Manager for King City, and Pat Reilly, City Administrator for Tigard to describe their experiences with 190 agreements. John Buol described his experience with them as General Manager for the South Fork Water Board, a water system owned by West Linn and Oregon City, and operating under a 190 agreement since 1976. ORS 190 identifies a process for how you want to operate a service that you want to provide jointly to cities, counties and special districts. For example, 190 Agreements are used to provide emergency dispatch services and recycling services. The 190 agreement is put together by all entities involved, and can be approved only when all entities agree to everything in the agreement. Chair Castile said if or how we pursue 190 Agreements, the Tigard Water District Advisory Committee is still needed, as previously agreed to by the TWD Board of Commissioners, to be involved in the negotiations with Lake Oswego and the search for long term water sources. The current Board of Commissioners can establish the specifics needed and wanted to protect patrons of TWD--they can be proactive in the process, not reactive. Commissioher Nicoli said a positive point for him is that under a 190 Agreement, the day to day operation of TWD wouldn't have to change from what it is now--only the policy makers would change. The new board would be appointed, rather than elected. A discussion followed. Commissioner Kvistad asked why Durham, King City and Tigard want to create a 190 Agreement. Pat Reilly said that each city has different reasons, but the City of Tigard wants (1) to have one water purveyor, instead of two, for the City; (2) that Tigard Water District be kept intact. Now, the cities involved have the ability, if they chose, to withdraw from the Water District, which would leave the Water District fragmented. The motivating force to begin discussions about some type of unifying began with the merger of Wolf Creek Highway and Metzger Water Districts, and there were concerns about how far the boundaries of Tualatin Valley Water District would expand. By state statute, special districts are temporary institutions, existing until such time as cities can provide those services. Cities are permanent--not temporary institutions. So, from the 5 5/12/92 Regular Meeting, Board of Commissioners beginning, the driving force has been a desire to protect the Water District from being assimilated by other districts, although since then, other issues have surfaced. They are advocating changing the governing structure of the Water District, keeping the District independent under the umbrella of the cities. The discussion continued. Administrator Miller said he sees consolidation of other districts and thinks its a valid reason for pursuing 190 agreements. He sees the 190 agreements being a benefit to Tigard Water District, because TWD will continue to exist independently. His concern is that if we don't pursue the 190 agreements, the Boundary Commission will consider consolidating TWD with other water districts because of the process of developing another long range water source and its related cost. Chair Castile said one of Beverly Froudy's comments was that whenever there's change, things are going to change. For people to say there won't be change isn't realistic, if we proceed with the 190s. However, Chair Castile would rather have change we can be proactive about, rather than being reactive. Chair Castile called for a vote. Borman: No--wants to have TWD stay as it is, and not pursue any kind of exploration of 190 agreements at this time. Castile: yes--wants to pursue 190 agreements. Nicoli: yes--pursue with caution, knowing that we can withdraw if we don't agree. Kvistad: yes, continue with discussions about 190s and their impact, without committing to either proceed or not proceed--wants it proven that a 190 agreement and a change in the structure of the board will be in the best interests of the patrons of the District. Wyffels: yes--continue with discussions. If we get all the answers that we feel are needed, then move ahead with the formal document. Concerns,are that we protect patrons of the District's, and retain local control. Chair Castile summarized. There is one dissenting vote, although he isn't here tonight. Although there are various degrees, the four Board members are in agreement to proceed with the discussions, but they haven't agreed to anything yet--that they would like to see where it would lead. The Commissioners agreed. Chair Castile asked if the Commissioners were willing to identify issues about what they want to see happen if they do proceed with 190s, and what kinds of agreements it would take to come to resolution about 190s. Commissioner Nicoli said yes. Commissioner Kvistad said he wasn't opposed to discussing 190s or other changes in the entity. He said he wants to have it 6 5/12/92 Regular Meeting, Board of Commissioners proved that proceeding with 190 agreements will be in the best interests of the patrons, not in the best interests of political entities. Chair Castile encouraged all Commissioners to attend the meetings of the Tigard Water District Advisory Committee. The next one will be held at 9:30 a.m., Tuesday, May 26, at Tigard Water District. Chair Castile thanked John Buol and Pat Reilly for their comments. B. Proposals of a draft of contract agreement between TWD and Jeri Chenelle, accepting a 6 month part time acting general manager position. Chair Castile said reasons for doing this include being cost effective for the District, and it will give Jeri a point of authority as she talks with Lake Oswego and Portland. Commissioner Nicoli said he thought the title of general manager is not appropriate, that she is a consultant for the Water District. Commissioner Wyffels suggested having an executive session after the other agenda items are completed. 9. Commissioners' Comments A. Commissioner Wyffels said his comment was about the water rate increase. There has been community support for the rate increase, once people understood the role of Lake Oswego in our rate increase, and that it has been such a long time since our last increase. 10. Administrator's Report Administrator Miller said on May 26, he, and Superintendent Randy Volk, will be meeting with the City of Tigard to talk about combining additional functions, possibly the billing. 11. Other Business Visitor Jerry Edwards, Mayor of the City of Tigard asked if the general manager position the Board will be discussing is currently budgeted. Chair Castile said it is included in the budget approved for FY1992-93. Chair Castile adjourned the regular meeting at 8:57 p.m. to go into executive session under ORS 192.660(1)(a), Employment of Public Officers and Employees. At 10:08 p.m. Chair Castile reconvened the regular meeting. A motion was proposed by Chair Castile and seconded by Commissioner Wyffels to negotiate a contract with Jeri Chenelle for a position of full time Acting 5/12/92 Regular Meeting, Board of Commissioners Administrative Director for a 6 month trial basis. Discussion was called for. Hearing no discussion, a voice vote was called. The vote was unanimous. Commissioner Kvistad explained that instead of a general manager position, they wanted a supplemental position which takes care of the administrative functions of the District, outside of technical areas which are part of the job of Administrator Miller. Jeri Chenelle, in this position, would be responsible for working with the computer project, the discussions about 190 agreements, and being a spokesperson for the political side of the water resource issues. Having this position is not intended as a punitive action or as a threat to the Administrator. Chair Castile suggested a work session between the Board of Commissioners, Administrator Miller and Jeri Chenelle to define tasks for Mrs. Chenelle in the position of Acting Administrative Director tentatively scheduled for Thursday, May 21, at 4:00 p.m. subject to Administrator Miller's availability due to his jury duty commitment. Commissioner Wyffels said the Board also wants to have Bob Santee continue as engineer for the Water District at the prerogative of Administrator Miller. Chair Castile adjourned the regular meeting at 10:29 p.m. 8