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City Council Packet - 04/02/1991 CITY OF TIGARD OREGON lGARQ 1 `1C Ct Ut+iCIL SPEC14M AGENDA APRIL 2, 1091 # t J P. t.:; TIGARL3 C!4.1C'G1NTR 1 3. 1. CALL TO ORDER AND ROLL. GALL f Mayor Edwards 2. PROPOWD PAERGER OF THE METZGER AND WOLF CREEK WATER DISTRICTS • Update by C/ty Administrator • Council Discussion • Consensus of Position on Proposed Merger 3. NON-AGENDA ITEMS 4. ADJOURNMENT CCA402.91 1. CITY COUNCIL AGENDA - APRIL 2, 1991 - PAGE 1 ( Council Agenda Item . 1 T I G A R D C I T Y C O U N C I L MEETING MINUTES - APRIL 2, 1991 • Meeting was called to order at 6:00 p.m. by Mayor Edwards. 1. ROLL CALL Council Present: Mayor Jerry Edwards; Councilors Carolyn Eadon, Valerie Johnson, Joe Kasten and John Schwartz. Staff Present: Patrick Reilly, City Administrator; John Acker, Associate Planner; Loreen Edin, Administrative Services Risk Manager; and Catherine Wheatley, City Recorder. 2. PROPOSED MERGER OF THE METZGER AND WOLF CREEK WATER DISTRICTS • Update by City Administrator In response to City Council questions concerning the policy issue question on Tigard's position with regard to the proposed merger of Metzger and Wolf Creek Water Districts, the Administrator reported the following: - The Boundary Commission will hold public hearing on merger proposal on April 4, 1991. Commission staff is recommending approval. - If approved, the City would not be restricted, at a later date, in their right to withdraw that portion of the newly formed water district which was inside the City's boundaries. - Decision will soon be before Council on long-term of objectives for water service to citizens. - The Mayor's Blue Ribbon Task Force discussed water service issues recently. Consensus of the group was that the City should exercise their option in terms of authority to deliver water service. - The City of Portland is conducting (with support of most of the water purveyors in the area) a comprehensive study of water issues for the region. - Metzger and Tigard Water Districts have philosophical differences which is why there is no effort for consolidation of these two agencies. • Council Discussion Lengthy Council discussion followed on the timeliness of water issues. These issues included concerns over water source, delivery and treatment. Cost of service will probably increase significantly, because of environmental mandates (i.e., clean-up effort and related costs of the Tualatin River). 1 ,M There was discussion on the benefits of economies of scale; that is, cost savings realized by avoiding duplication of equipment and human resources. There was consensus that the City should study the issue with the view that the City would provide the service. Questions to be answered included: • Would there be savings to Tigard citizens in the long run? • What process is necessary to effect this change? • How would this affect those users outside the City limits who are in the Tigard Water District? The Council decided they would not take a position on the Wolf Creek and Metzger Water District merger since this would not preclude the City, at a later date, from bringing in that portion of Metzger inside Tigard's city limits. • Council Action Motion by Councilor Johnson, seconded by Councilor Eadon, to direct staff to explore the prospect of providing water services within our jurisdiction. Staff is to draft a scope-of-work outlining a study of the water situation. The study will focus on the viability of City operation of the Tigard Water District including that portion of the Metzger Water District within city limits. Council members, at this early stage, expressed an interest in keeping the Tigard Water District intact. The City of Tigard takes no position on the proposed merger of the Metzger and Wolf Creek Highway Water Districts. The motion was approved by a unanimous vote of -0. present. 3. NON-AGENDA ITEMS City Administrator advised that he would be contacting councilors to meet individually with developers to obtain their ideas for the "Triangle" area. 4. ADJOURNMENT: 7:10 p.m. Catherine Wheatley, City Reco der Attest:~~ e~_V President 'Mayor, -e'ity-of Tigard Date: ~2~ ccm402.91 CITY COUNCIL MEETING MINUTES - APRIL 2, 1991 - PAGE 2 a CITY OF TIGARD, OREGON ( AFFIDAVIT OF NOTIFICATION In the matter of the proposed STATE OF OREGON ) County of Washington ) ss City of Tigard ) I, being first duly sworn, on oath, depose and say: That T. notified the following persons by phone or personal contact of the Notice of Special Meeting for the Council Meeting of _ a copy of said written otice being hereto attached and by reference made a part hereof on the a~ day of eLA e1, _ 19~ CONTACT METHOD: PHONE PERSONAL TIME Tigard Times Reporter at 684-0360 J n na rvt ~f )Ca -~~,r~ , Name: Oregonian Reporter at 297-8.861 o C245-6997 ,n/1_ if 3/a8-/gym. Name: _/-Ikut-L yl 0- King King City Regal Courier at 639-5414 Name : ,,Subs+.r.•ibed' and sworn to before me this ! - day of L ~.t~_ 19 !f/ Notary Public fo Oregon l/ My Commission Expires: ky y7 ht/5576D f CITY OF TIGARD, OREGON AFFIDAVIT OF POSTING 2 In the Matter of the Proposed y STATE OF OREGON ) County of Washington ) ss ~i City of Tigard ) { I, er~h being first duly sworn, on oath, depose and say: x That I posted in the following public and conspicuou places a copy of Notice of Special Meeting for the Council Meeting dated ~~n~ a copy of said notice being hereto attached and by reference made a part hereof on the o'?97t~ day of ~-1~~ , - a -T° G Subscribed and sworn to before me this e'° day of / 1 19~L. Notary Public for Oregon My Commission Expires: 9 i YI Notice of Special Meeting Tigard City Council Notice is hereby given that a special meeting has been called by the Mayor, with the common consent of City Council, for Tuesday, April 2, 1991, at 6:00 p.m. The meeting will be held in the City Hall Town Hall Conference Room, 13125 S.W. Hall Boulevard, Tigard, Oregon, 97223. Topic of discussion will be a review of the question of whether the City should take a position on the proposed merger of the Wolf Creek and Metzger Water Districts. Further information may be obtained by contacting the City Recorder at the City Hall (13125 S.W. Hall Boulevard, Tigard) or by calling 639-4171. Catheri a Whea leY, City Recorde Date: March 28, 1991 cw.specialmtg TIGARD WATER DISTRICT 8777 S.W. BURNHAM ST. P.O. BOX 230000 TIGARD. OREGON 97223-9917 PHONE (503) 639-1554 / March 27, 1991 ' APR o l - r-.u~tosr_ Portland Metropolitan Area Local Government Boundary Commission c/o Kenneth S. Martin Executive Officer 320 S.W. Stark Street, #530 Portland, OR 97204 RE: Merger of Metzger Water District and Wolf Creek Highway Water District; Proposal #2906 Dear Mr. Martin: It has been the standard policy of Tigard Water District (TWD) to not comment on the internal affairs of other special districts, especially those of like special districts. Unfortunately, we have now found ourselves in a situation which requires us to do so. The merger of Metzger Water District and Wolf Creek Highway Water District, without a comprehensive examination of both the long term and short term effects on Washington County and especially the Tigard-- Metzger community, would do a great injustice to the districts and communities involved. But to go even further, it precludes and substantially eliminates any discussion of reasonable, and for many, preferred alternatives in the area of special district consolidations. One of the most glaring problems we have seen with this proposal is the total lack of in-depth information on the effect this merger will have on, not only the districts involved, but the districts adjacent to these potential merger partners. While some have referred to the cost savings 1 of this merger, the numbers, when analyzed, say something different and Kenneth S. Martin Page 2 March 27, 1991 i are suspect. We have seen no comprehensive study or report on this important issue. As a matter of fact, we believe that some of the numbers came from a full district comprehensive study commissioned and paid for by the Tigard Water District concerning our future growth needs and those of this area. A second point specifically concerns the problems this merger will create in the eventual and logical consolidations of special districts which serve community water needs. Our feeling is, and will continue to be, that the east county districts have distinct and separate constituencies and concerns than those of Wolf Creek Highway Water District. Growth demands are different. Bonded indebtedness and bonding capacities are also different. Beyond that, east county districts are more mature communities, and require different levels of growth planning. It is my understanding that the Boundary Commission must look at the logic behind such mergers, and is mandated to make these decisions with both the community in mind and to insure for the long term positive consolidation of districts and services. We fail to see where a merger between two unlike districts, which precludes a general area discussion of other potential alternatives, serves either a useful or mandated purpose. While we cannot speak specifically for the residents of the Metzger Water District it is our strong feeling that this merger is not in the best interests of this community as a whole. We are also very aware that the residents of the affected community are unaware of many of the consequences of such a merger, and have had limited opportunity to comment on this action being proposed by their elected officials. But let me return to some major points. Other than the fact that both Metzger Water District and Wolf Creek Highway Water District use the same source of water (Bull Run), there are no similarities. First and foremost is the fact that the two Districts are t not contiguous, nor can they ever be contiguous. This means that the Kenneth S. Martin Page 3 March 27, 1991 water distribution systems of each District cannot be 'integrated, an area where real monetary savings could be realized. Second, Metzger Water District is small (5,000 meters), with established boundaries and no opportunity for expansion, while Wulf Creek Highway Water District is very large (30,000 meters) with high growth and sprawling boundaries. These do make the two Districts dissimilar. The stated annual savings of $327,700 is questionable. Certainly the cost of water, the most expensive item in the budget, will not be reduced by a merger. Metzger Water District spends very little on capital improvements because there is no need to do so. The physical distance between the two administrative offices means that both offices will have to continue to exist, one as a satellite--probably Metzger. Lastly, we assume that no one will lose his or her job, so there will be no savings there, at least not in the first few years. Minor savings will accrue as a result of consolidating some functions, such as purchasing, accounting, budgeting, etc., but certainly not the amount stated in the application. Overall, however, it is believed that this merger will not result in a more efficient, cost-effective larger entity. It is one of those times when bigger is not better. A much more logical proposal would be a merger between Metzger Water District (5,000 meters) and Tigard Water District (10,000 meters). This has been discussed briefly, and officials at Metzger Water District know that Tigard Water District is receptive to such a proposal. There are many realistic reasons for such a merger, the most obvious being that the Districts are contiguous, the distribution systems can be integrated, and both serve portions of the city of Tigard. This latter point is important because it is very confusing and difficult for residents of Tigard to be served by two different water districts and systems. i ~r Kenneth S. Martin Page 4 March 27, 1991 Tigard Water District has recently constructed a new operations center in downtown Tigard, fully capable of absorbing additional employees and functions. This facility is located a relatively short distance from Metzger Water District's present administrative office on S.W. Taylors Ferry Road. In fact, the present boundary between the two Districts is just a few blocks from TWD's offices. Metzger's offices would not have to be manned if such a merger took place, thus showing a cost savings. Duplication and overlapping of existing water mains on the same streets, i.e., S.W. Greenburg Road and S.W. 72nd Avenue, could be eliminated. Metzger Water District has always wanted to use TWD's storage tanks, located at 1-5 and Haines Road. A merger would make this possible. Metzger Water District uses 100% Bull Run water (via Portland), while Tigard Water District uses 95% Clackamas River water (via Lake Oswego). A merger would introduce another independent source of water for Metzger Water District and, likewise, would improve the capability of Tigard Water District to import more Bull Run water to its patrons. Multiple sourcing in water supply is very important to ensure reliability and to reduce water costs. This is an opportunity not available in a Metzger-'g'olf Creek Highway merger. The patrons of Metzger Water District and Tigard Water District have many things in common, namely, the same school district, city, and shopping centers. It continues to make more sense for the merger of Metzger Water District with Tigard Water District (rather than with Wolf Creek Highway Water District). Tigard Water District already serves a portion of Metzner Water District, i.e., the industrial area along S.W. 72nd Avenue, south of Highway 217. Metzger could not provide adequate fire flows to the high valued businesses along this long corridor, which is a "finger" in the southeast ( part of Metzger Water District. The businesses in that area, including . Kenneth S. Martin Page 5 March 27, 1991 Gerber Blades and Fought Steel, wanted to be served by Tigard Water District to take advantage of the excellent fire flows and, thus, lower insurance costs. In past years, this became a controversial issue and we thought that we had arrived at an amicable solution, but perhaps not. Tigard Water District would provide water for fire protection and domestic consumption and receive the revenue. Metzger Water District would have no responsibility for water service but would continue to receive ad valorem taxes from this area. The businesses in this area, however, should have this matter resolved because they are now paying out-of-district water rates to Tigard Water District and property taxes to Metzger Water District without any apparent benefits. Increased efficiency and substantial savings in administration, maintenance, engineering services, facilities and capital improvements would result from a merger between Metzger Water District and Tigard Water District. There would also be savings in non-duplication of assets, i.e., pipelines, which would better serve the residents of Tigard. Having discussed the merits, why have Metzger Water District and Tigard Water District not proposed a merger before this date? On March 6, 1990, the Tigard Water District Board of Commissioners met with representatives of Metzger Water District to discuss water resource issues at the TWD Operations Center. At that time, during general discussion about water issues, the TWD Board proposed combining our two districts. Representatives from the Metzger Water District did not respond favorably to that request. We believe that personality conflicts of long standing have precluded such a logical and obvious development. It is a sad day, indeed, when these conflicts become more important to a district than what is in the best interests of the patrons served. The time has never been more appropriate for a merger between Metzger Water District and Tigard Water District, exclusive of Wolf Creek Highway Water District. To allow any merger other than that at this time would be very damaging to both this community and a future comprehensive consolidation planning effort. Kenneth S. Martin Page 6 March 27, 1991 Therefore, we, The Tigard Water District, ask that the Boundary Commission take the following actions: A. Deny, for cause, the subject proposal for merger of Metzger Water District and Wolf Creek Highway Water District. B. Initiate action to merge only Metzger Water District and Tigard Water District without the inclusion of Wolf Creek Highway Water District. C. Initiate a comprehensive overview and study of. a long term, mutually agreed upon and logical consolidation effort, which maintains the integrity of communities and differing sets of service needs. A merger of Metzger and Tigard Water Districts would resolve many potential conflicts. We believe that the Boundary Commission has the authority to take these actions, and we would actively support the Commission on such proposals. We look forward to your positive response to the proposals stated above. Si;rdof y, Jotad, Chairman Bo Commissioners Tigard Water District cc: Waiter Stronach, Secretary, Board of Commissioners, Tigard Water District Audrey Castile, Treasurer, Board of Commissioners, Tigard Water District Robert Bledsoe, Board of Commissioners, Tigard Water District Denis Borman, Board of Commissioners, Tigard Water District City of Tigard Portland Metropolitan Area Local Government Boundary Commission Enclosure: Water Supply & Water Distribution study for Tigard Water District