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City Council Packet - 08/30/1994
atmr Revised 8/25/94 6 A CITY OF TIGARD OREGON Assistive Ustening Devices are available for persons with impaired hearing and should be scheduled for Council meetings by noon on the Monday prior to the Council meeting. Please call 639-4171, Ext. 309 (voice) or 6342772 (TDD - Telecommunications Devices for the Dea). Upon request, the City will also endeavor to arrange for the following sen4ces. • Qualified sign language interpreters for persons with speech or hearing impairments; and • Qualified bilingual interpreters. Since these services must be scheduled with outside service providers, it is important to allow as much lead time as possible. Please notify the City of your need by 5.00 p.m. on the Thursday preceding the meeting date at the same- phone numbers as listed above. 639-4171, Ext. 309 (voice) or 634-2772 (TDD - Telecommunications Devices for the Dean. SEE ATTACHED AGENDA COUNCIL. AGENDA - AUGUST 30, 1994 - PAGE 1 SPECIAL CITY COUNCIL MEEnNG AUGUST 30, 1994 AGENDA 1 SPECIAL II EE'.riPABt_ 16•30p-m.) 1.1 Call to Order - City Council & Local Contract Review Board 1.2 Roil Cali 1.3 Council Communications/Liaison Reports 1.4 Call to Council and Staff for Non-Agenda Items (6:30 p.m.) 2. PRESENTATION - REPORT TO THE CITY FROM THE WASHINGTON COUNTY SHERIFFS DEPARTMENT ABOUT THE UPCOMING JAIL LEVY U Sheriff Spinden (7:00 p.m.) 3. WATER ISSUES UPDATE: 3.1 Division of Assets 3.2 Capital Improvement Plan 4. CONTINUTATION OF PUBLIC HEARING (FROM AUGUST 23,199 4 COUNCIL. METING) - CALLING OF A CITY TAX BASE ELECTION IN THE CITY OF TIGARD, OREGON ON NOVEMBER 8, 1994. - The Tigard City Council is considering submitting to the legal voters of the City of Tigard the question of establishing a new tax base beginning in fiscal year 1996-97. Preliminary estimates indicate a proposed tax base of $7,056,000 would result in a tax rate of $2.58 per $1,000. Any interested person may appear and be heard for or against the proposal. Any written testimony may be filed with the City Recorder. a. Continue Hearing b. Update and Response to Council Questions - Staff C. Council Consideration: Resolution No. 94-_ 5. CONSIDERATION OF ORDINANCE TO PROHIBIT CAMPING IN PUBLICLY ACCESSIBLE AREAS WITHIN CITY OF TIGARD a. Staff Report - Chief Goodpaster/City Attorney's Office b. Council Discussion C. Council Consideration: Ordinance No. 947 6. BON-AGENDA ITEMS 7. EXECUTIVE SESSION: The Tigard City Council may go into Executive Session under the provisions of ORS 192.660 (1) (d), (e), (f) & (h) to discuss labor relations. real property transactions, exemct public records and current and pending litigation issues. 8. ADJOURNMENT axeAOM.94 COUNCIL AGENDA - AUGUST 30, 1994 - PAGE 2 t Council Agenda Item e Ian GD 0, t T ~iVUi~1 l: .iL MEETING MINUTES - AUGUST 30, 1994 • Meeting was called to order at 6:30 p.m. by Mayor John Schwartz. ROLL CALL Council Present: Mayor John Schwartz; Councilors Wend! Conover Hawley, Paul Hunt, Bob Rohif, and Ken Scheckla. Staff Present: Bill Monahan, City Administrator; Pam Beery, Legal Counsel; Loreen Edin, Management Analyst; Ron Goodpaster, Chief of Police; Wayne Lowry, Finance Director; Mike Miller, Operations Manager ; Liz Newton, Community Involvement Coordinator; Ed Wegner, Maintenance Services Director; Catherine Wheatley, City Recorder; and Randy Volk, Utility Manager. BUSINESS MEETING 2. PRESENTATION - REPORT TO THE CITY FROM THE WASHINGTON COUNTY SHERIFF'S DEPARTMENT ABOUT THE UPCOMING JAIL LEVY • Washington County Sheriff Spinden updated City Council on the Washington County Jail Levy. In addition, Circuit Court Judge Alexander and County Commissioner Linda Peters were present to support the jail levy. The following issues were brought up during Sheriff Spinden's presentation: In 1970 the current jail was remodeled and there are about 181 beds for current capacity. The jail is a four-story building; the Code will not allow for any additional stories. Washington County is not allowed to have more inmates than the 181 capacity. The result is that some of the inmates are released before they have served their time. The jail capacity has been exceeded because officials misgauged the population explosion. It was noted that by 2010 the area will have approximately 500,000 people. The criminal justice system has not kept up. CITY COUNCIL MEETING MINUTES - AUGUST 30, 1994 - PAGE 1 There has been a significant increase of violent crimes since 1970. 80% of the people in jail are pre-trial. The jail's purpose is to certify appearance at trial and to protect the public. The County system also provides for a community correction center. This is a type of "helf-way house" which will get the tools to the individuals so they can be successful. It is the plan to increase the capacity of the half-way house as well. Sheriff Spinden described where the site would be, and also the fact that the jail levy would provide for a new Sheriff's office, new technology, additional space to store evidence, and remodeling of the old facility for County office and archive use. The cost is $77.6 million, which represents 36 cents per $1,000 of assessed value. It is a decreasing tax bond, which means by the end of the fifteenth year, the amount of cost to the taxpayers is estimated to be at 11 cents per $1,000. The issue will be coming out on the September 20 mail-in ballot. There was discussion with representatives from Washington County and City Council with regard to how the project has been planned, the benef¢ts expected, and the fact that this would "hold the line." Sheriff Spinden advised it was anticipated Tigard would be receiving hardware with regard to computerized technology as one of the three sites for processing such data. It is unknown at this time how much assistance the Federal crime bill will provide to Washington County. At this time it looks as if the crime bill would assist prisons rather than jails. Mr. Herb Underdahi, a Tualatin resident, advised he had information regarding a new prison that had been built in Georgia. Mr. Underdahi left the material with the Tigard City Council. Mayor Schwartz requested this material be copied and forwarded to City Council. Council meeting recessed at 7:30 p.m. Council meeting reconvened at 7:40 p.m. 3. WATER ISSUES UPDATE: Maintenance Services Director Wegner advised that Item 3.1, Division of Assets, would be discussed with City Council at a later date. CITY COUNCIL MEETING MINUTES - AUGUST 30, 1994 - PAGE 2 10:1 id 3.2 - Capital Improvement Plan Maintenance Services Director Wegner advised the City has been working with a i oe suli 6t vi long-term water supply options. He noted water supply is an issue which needed to be dealt with, regardless of whether the water service was coming from the City of Tigard or whether it had remained with the Tigard Water District. Mr. Wegner reviewed some data which had been obtained over the summer, noting the City has been purchasing water from the City of Portland as well as using some water out of the storage areas. Staff has been trying to monitor and purchase water from the City of Portland at what is less than peak- hour times. Lake Oswego has not been able to meet Tigard's demands this summer for water supply. The City of Tigard must put together a plan for the next three to five years as an interim measure before determining what the long-term water supply course of action will be. Maintenance Services Director Wegner introduced the consultants from Murray, Smith and Associates: Present were Mr. Hai Murray and Mr. Chris Uber. Mr. Murray reviewed the water supply plan update which had been provided to City Council for their review. This is a draft document and is on file with the Council packet material. The document looks primarily at water supply and what the City should be doing long-term. Long-term water supply alternatives include the following: purchase of water from (1) City of Lake Oswego; (2) City of Portland; (3) City of Tualatin; (4) Hillsboro, Forest Grove, Beaverton Joint Water Commission Supply; (S) South Fork Water Board Supply; (S) Tualatin Valley District Supply; (7) Willamette River Supply above Wilsonville. Presently the City is receiving water by purchasing surplus water from the City of Lake Oswego by contract, and Lake Oswego cannot meet the demands for service. The City has been purchasing water through a contract with the City of Portland. This contract will expire in about 2007. Mr. Murray reviewed the table of evaluation criteria and tabulation of rankings (see water supply plan update, page E-2). Mr. Smith reviewed how the alternatives were evaluated and the summary of this is contained in the report. Ranking results were noted as follows: • First choice - Lake Oswego • Second choice - Portland CITY COUNCIL MEETING MINUTES - AUGUST 30, 1994 - PAGE 3 A 0, 7-Third choice - a regional approach to a system to obtain water from the Willamette River • f=ourth choice - Tigard going on its own and obtaining their water source from the Willamette River supply The only place Tigard has water rights at the present time Is in wells; there are no rights to rivers or streams. The City of "Tigard is now paying the City of Portland 60 cents per 100 cubic feet of water, and 58 cents per 100 cubic feet to the City of Lake Oswego. In order to participate with Lake Oswego for the future, rates will increase to $1.05 per cubic feet of water. Mr. Murray noted this rate increase will be experienced by many jurisdictions; not just the Tigard area. Recommendation is for the City of Tigard is to participate with Lake Oswego if the City is able to buy into their system. Tigard's share of the Lake Oswego improvements will be approximately $16.7 million. This represents about one-half of the cost of the improvements. If Tigard should decide to build their own plant, this would cost approximately $35 million. If Tigard should decide to build a regional plant with other entities, this would cost about $18 million. In addition, Tigard will need to do some negotiations with Portland to buy on the spot market. There may be opportunity to buy water from the Tualatin Valley Water District during peak summer times. The recommendation was for the City to negotiate with the City of Lake Oswego to develop a long-term supply of water. The negotiations should consider institutional, financial, operational, and other relevant matters. Discussion followed regarding what was included in the capital expenditure; i.e., operation and maintenance would also be included in this amount. In response to a question from Councilor Hunt, Maintenance Services Director Wegner advised the Intergovernmental Water Board would make the recommendation to the City Council of whether or not to proceed with negotiations. Council will be the primary group responsible for determining how to implement and proceed. In response to a question from Councilor Hawley, Interim City Administrator Monahan advised Lake Oswego indicated they needed more discussion among themselves, and would not be ready to discuss this issue with the Tigard Council on September 13, 1994. There was discussion on water supply concerns, and the position of Portland and whether or not they would be available to Tigard. Portland has indicated Tigard's involvement would be only as a buyer of water. Mr. Murray referred to the Executive Summary and the recommendations contained on Pages E-3 and E-4 (see Council packet for this material.) There was discussion on financing and the effects of the "Son of Measure 5,° and what it would have on financing of the capital improvements. There was also discussion CITY COUNCIL MEETING MINUTES - AUGUST 30, 1994 - PAGE 4 regarding water restrictions and the effect this has had on the purchase of Portland water. In response to questions from citizen Jack Polans, Mr. Murray noted the State ORS 190 allows municipal entities to participate in joint ventures, and that 190 agencies can sell revenue bonds. In addition, if Lake Oswego and Tigard became partners, then the two City Councils would have to agree on future water decisions. With regard to financing situations, Mr. Murray advised Mr. Polaris that take Oswego would also have to sell bonds, as would Tigard, in order to finance the improvements as proposed. It was noted that beyond the year 2020 there is a good possibility this system would become part of a regional supply plan. On September 14, 1994, the Intergovernmental Water Board will be having an Annual Meeting. The Tigard, Durham, and Icing City City Councils and Tigard Aster Board would be invited. Information to the CIT's will be delivered the first week of October. It is expected that Council will have more information to consider during the latter part of October. a Council meeting recessed at 9:10 p.m. aft Council meeting reconvened at 9:20 p.m. 4. CONTINUATION OF PUBLIC HEARING (FRONT AUGUST 23, 1994 COUNCIL MEETING) - CALLING OF A CITY TAX BASE ELECTION IN THE CITY OF TIGARD, OREGON ON NOVEMBER S, 1994. Interim City Administrator Monahan updated Council on the proposals contained in the Council packet. There was one recommendation which contained a 62 cents per $1,000 of assessed value as the increase. In order to meet this figure, the percentage of growth and salaries was reduced from 5% to 4%. Mr. Monahan noted staff was not necessarily advocating this reduction, and noted the 40/0 was an extremely conservative position. The other proposal was for 75 cents per $1,000 of assessed value. Staff still felt the loss of state-shared revenue should be factored into the proposal. Finance Director Lowry reviewed the cost of FTE, including the methodology used and reasons for 5°/ versus 4% increase per year. He noted there are some savings that could be realized through turnover and hiring people at a lower level. Council discussion followed. It was noted staff was seeking unanimous consent of Council, which would be an important selling point to the community on the tax bane. CITY COUNCIL MEETING MINUTES - AUGUST 30, 1994 - PAGE 5 MINI; Mayor Schwartz advised he did not think it would be a good idea to depend on state-shared revenues. Councilor Hawley expressed concerns with the reductions as proposed, noting that the Community Survey indicated that Tigard citizens were generally happy with services received. She also noted this could affect attracting employees in the job market. There was discussion on how the savings could be realized through delay of hirings. After discussion, Council consensus was that the lesser amount of increase (62 center per $1,000 of assessed value) may be more saleable. Public hearing was closed. RESOLUTION 94-59 - A RESOLUTION CALLING FOR AN ELECTION IN THE CITY OF TIGARD, OREGON ON NOVEMBER 8, 1994 FOR THE PURPOSE OF SUBMITTING TO THE LEGAL RIOTERS OFTHE CITY OF TIGARD THE QUESTION OF ESTABLISHING A NEW TAX BASE BEGINNING WITH THE 1996-1997 FISCAL YEAR. Motion was approved by unanimous vote of Council present. (Mayor Schwartz, and Councilors Hawley, Hunt, Rohlf and Scheckla voted "yes.") (Said resolution was for an increase of 62 cents per $1,000 of assessed valuation.) Discussion followed on the need for public information and education with regard to how taxes are structured in Oregon. 5. CONSIDERATION OF ORDINANCE TO PROHIBIT CAMPING IN PUBLICLY ACCESSIBLE AREAS WITHIN CITY OF TIGARD Mayor Schwartz questioned whether this ordinance would prohibit campers, during events such as what occurred recently during the Tigard Country Daze. Police Chief Goodpaster advised it was not the intent of the ordinance to prevent those types of things. In addition, Interim City Administrator Monahan advised that public property would not be covered by this ordinance. Police Chief Goodpaster noted the ordinance was developed to allow the abatement of illegal campsites that have become a health hazard or where illegal activities are occurring. The City currently has no prohibitions against camping in public places, and has to rely solely on nuisance ordinances. Police Chief Goodpaster also advised of the manner in which the Police Department handled homeless situations. He advised there are administrative CITY COUNCIL MEETING MINUTES - AUGUST 30, 1994 - PAGE 6 rules which the Police Department must follow. It is the Police Department's intent to be sensitive to the plight of folks." After discussion on the ordinance with Legal Counsel, the following changes were made to the- ordinance: Section 7.80.020 - the following 'sentence will read: "Nothing in this chapter shall prohibit the use of designated picnic areas of public property for cooking, or prohibit camping by permit authorized by the City Administrator or designee." With regards to concerns if problems occur on private property, the following wording changes were made to Section 7.80.030(3) - "Notwithstanding Subsections (1) and (2) of this section, cleanup of campsites on both public and private property and regardless of the existence of a permit where the following conditions exist, as determined by the Chief of Police or his or her designee, may take place as necessary without notice:..." There was discussion and clarification on how a "sweep would be done." Councilor Rohlf advised he was not comfortable with the treatment given to "junk." Chief of Police Goodpaster described the administrative rules and procedures he would institute. Junk generally means paper and litter. Councilor Rohif was satisfied that the policy directive would give a person an opportunity to explain sentimental value with regard to personal possessions. ORDINANCE NO. 94-20 - AN ORDINANCE AMENDING TITLE 7 OF THE TIGARD MUNICIPAL CODE BY ADOPTING CHAPTER 7.80, CAMPING PROHIBITED IN CERTAIN PLACES AND DECLARING AN EMERGENCY. Motion by Councilor Hunt, seconded by Councilor Hawley, to approve Ordinance No. 94-20. Motion was approved by unanimous vote of Council present. (Mayor Schwartz and Councilors Hawley, Hunt, Rohif and Scheckla voted "yes.") 6. NON-AGENDA ITEMS Interim City Administrator Monahan introduced a proposed resolution, appointing individuals to the Homeless Task Force. RESOLUTION NO. 94-40 - A RESOLUTION APPOINTING MEMBERS OF THE HOMELESS TASK FORCE FOR THE CITY OF TIGARD IN ACCORDANCE WITH THE GUIDELINES ESTABLISHED BY RESOLUTION NO. 94-38. CITY COUNCIL MEETING MINUTES - AUGUST 30, 1994 - PAGE 7 Motion by Councilor Scheckla, seconded by Councilor Hunt, to approve Resolution No. 94- 4u. Motion was approved by unanimous vote of Council present. (Mayor Schwartz and Councilors Hawley, Hunt, Rohlf and Scheckla voted "yes.") Tentative Agenda - Interim City Administrator Monahan distributed a copy of the Tentative Agenda for Council review. City Administrator Recruitment - Interim City Administrator Monahan distributed a memorandum dated August 30, 1994 from Janice Deardorff, Human Resources Director to the Mayor and City Council. Council discussion followed on process. Council discussed when they could meet to review the candidates' list. Consensus was to schedule a meeting at 3:00 p.m. on September 15, 1994. Arts Policy Committee - Councilor Hawley advised that a presentation would be given by the Arts Policy Committee to the Chamber of Commerce Business Advocacy Subcommittee. It is anticipated that a presentation will be made to the City Council on October 11, 1994. 7. EXECUTIVE SESSION: The Tigard City Council went into Executive Session at 10:33 p.m. under the provisions of ORS 192.660 (1) (d), (e), (f) & (h) to discuss labor relations, real property transactions, exempt public records and current and pending litigation issues. 8. ADJOURNMENT: 10:45 p.m. Attest: Catherine Wheatley, City Recorder or, City of Tigard Date: gla-71gq =n .94 CITY COUNCIL MEETING MINUTES - AUGUST 30, 1994 - PAGE 8 i 10 i MEN= COMMUNITY NEWSPAPER, INC. Legal P.O. BOX 370 PHONE (503) 684-0360 Notice TT 7986 BEAVERTON, OREGON 97075 RECEIVED Legal Notice Advertising AUG 2 9 1994 *City of Tigard ® ® Tearsheet Notice 13125 SW Hall Blvd. CITY. OF TIGARD ®Tigard,Oregon 97223 ® ❑ Duplicate Affidavit a 1140 fQ1Lv4$ tee ni,liiAa ltstie~ ~Ot yolar an:oFlTl8~4f3n 1~nl] AFFIDAVIT OF PUBLICATION YBoc~lvcrl.:bct,gan9',4sitrtln39-1°E~:` STATE OF OREGON, ) ~P. CQL'~`itS COUNTY OF WASHINGTON, )ss. A~T~~ n994 - 6 P~ Kathy Snyder " 3115 $ 4J HAf. ff. L~OL ARC ' F 3~ GOI being first duly sworn, depose and say that I am the Advertising Director, or his principal clerk, of th~'~ gird-TUaI at i n T, mes a newspaper of general circulation as defined in ORS 193.010 Splui ~tCj Cahnca~ IvIe> tS and 193.020; published at Tigard in the m %ter is i, Upt tQ 4v8sip~" e meets and Capita lin- resaid nd ate 4ha th pecia~°ufy Louf4citl g4tg. 1?XCSe6tat>JOra-'Ytegontpt 6ty-2Wr~~,t9~e~ hingtonCounty! a printed copy of which is hereto annexed, was published in the $eniff'SlparlmfE tt4~Tgtx~tt> ,g3 entire issue of said newspaper for ONE successive and ' ?a1nla~ctlevt+x$W ~n d 13Zecutiv 5> in`1fie ig rsigty o44pCBfiaygointo eeu f consecutive in the following issues: 1~iveSeS chiart rl ;gTOv7ss1 et S'49c i ~1) (4l}. ~c 8nd I - (I~) Ys, causs;l~rlal~caa~s ieiro3'"sic€.or Cur August 2 5 ,19 9 4 acn? t.. peliding Sgtl ol issl4ec, _ s r'd 791;6 Nb%F Aug4z 2 ;1 1 s b Subscribed and sworn to be or m this 9t' d )z of gu OF'r!CX SEAL 4~41 ___7_ ROBiN A. BURGESS ' NQ?ARY PUBLIC - OREGON Notary Publi r Oregon COWA165I014 NO. 024552 pp MY 0,0MW.*.S1Qr! EXPIRES ll16,1997 6 My Commission Expires: AFFIDAVIT Emu= III lI: 1 1,1,00 11 ~I11111111111111 IRS: now= CITY OF TIGARD, OREGON AFFIDAVIT OF POSTING In the Matter of the Proposed s:.aeLc~.. ®•a.C t--- `3 q ;Z 6 STATE OF OREGON( ) County of Washington ) ss. City of Tigard ) 1, Xmamo Ande-nQ begin first duly swom, on oath, depose and say: That I posted in the following public and conspicuous places, a copy of Ordinance Dumber (s) an..e P- which were adopted at the Council Meeting dated U--T BeTj I'v copy(s) of said ordinance(s) being hereto attached and by re erence made a part hereof, on the Zti, day of ff O-VrnbPr . 19 q1R- 1. Tigard Civic Center, 13125 SW Hall Blvd., Tigard, Oregon 2. West One Bank, 12260 SW Main Street, Tigard, Oregon 3. Safeway Store, Tigard Plaza, SW Hall Bbd., Tigard, Oregon 4. Albertson's Store, Comer of Pacific Hwy. (State Hwy. 99) and SW (Durham Road, Tigard, Oregon Subscribed and sworn to before me this _ day of - 19~. OFFICIAL SEAL DIANE M..iEWE€ KS k KOTARYPU LiC-OREGON COMMISSION NO. W8977 WO&yy PUb17C fir Qn g My COMM-*SION EXPIRES $EP7. .1995 My Comrrdssion Expires: 7 r. loginvowpost !jr MEMORANDUM CITY OF TIGARD, OREGON TO: Bill Monahan FROM: Ed Wegner DATE: August 16, 1994 SUBJECT: System Asset & Liability Allocation Report Draft In the Intergovernmental Agreements authorizing the City of Tigard to operate the Water System, it is necessary to separate and allocate the assets and ]liabilities of the original District among the four jurisdictions. The TWD contracted with EES to perform this work. I have recommended to the TWD that each jurisdiction review and make comments to the TWD prior to their final approval. I would suggest that staff review and have a meeting with you about this before it is acted upon by the Tigard City Council. Mr. Meigs has brought to our attention three areas of concern: • Employee deferred compensation. Since employees are City of Tigard employees, should this figure be apportioned to all entities or just the City of Tigard? • Some Reservoirs and land have no values and some land values are different in auditors report and the District records. EES had to use a negative adjustment figures. • Retained earnings. EES had to use negative values for balancing. For ease of reading and reference, the following pages are highlighted: Page 5 Basic Data Page 6 Other Assets % for Allocation Page 7 Assets & Liabilities Balance Sheet Page 10 13 Data Base Development Page 15 System Asset Allocation Page 16 Asset Allocation Summary Page 20 Allocation of Liabilities Page 21 Allocation of Liabilities Hopefully we can meet as staff the week of August 22nd and determine how we should proceed. c: Wayne Lowry Intergovernmental Water Board t i t TIGARD WATER DISTRICT SYSTEM ASSETS AND LIAABMITIES 1 Draft Report ECG I AND ENGINEERING SERVICES, INC. E N E R G Y ® R E S O U R C E ® M A N A G E M E N T m C O N S U L T A N T S ECONOMIC AND ENGINEERING SERVICES, INC. =380 S.W. Macactam Ave%e. Suite 365 Por:taro.OR 3727: i5M 223.3033 • FAX t5031274-62418 File # 60290 August 8, 1994 Mr. John Haunsperger Tigard Water District 8777 S.W. Burnham Street Tigard, OR 97223 Dear Mr. Haunsperger: Enclosed please find Economic and Engineering Services, Inc.'s (EES's) draft report of system asset and liability allocations prepared for the Tigard Water District (District). This report is for your review and comment as well as for distribution to the Cities of Tigard, Durham, and King City. It is our understanding that discussion of this draft will take place at your September meeting, and subsequent to that EES will prepare the report in final form. Very truly yours, ECONOMIC AND ENGINEERING SERVICES, INC. Gilbert R. Meigs Project Manager GRM:pp enclosure win\8mvivud.rpl Ow.rinia. WA Bellevue. WA Vancouver. 8.C Portand.OR Washington. O.C MEMORANDUM C2W OF TXGARD, OREGON TO: Dill Monahan FROM: Ed Wagner DAVE: August 19, 1994 SDBJRCT: Water %ssues Meeting Schedule The following is a list of the meeting schedule for water related issues: AUGUST 30TH 7:00 p.m. Tiger City Council Presentation by SSA on Water Supply Plan ® 12TH 7:00 p.n. Regular Ming of TOD Review Water Supply Plan.Update - Ed Wegner • ffit 13TH 5:30 p.m. Joint masting w/Lake %-5/217 Water supply SEPTEMBER 14TH 6:30 - 9:30 p.m. Joint aseti ng with Y , TI City of Tigard, City of Durham, and City of King City Division of Assets Review Water Supply Plan - Discussion Y Iathy hMill IMM WATER SUPPLY PLAN UPDATE FOR THE CITY OF TIGARD AUGUST 1994 41- }'Y w cY~s; j N w%Sfiv' $J Prepared by: MURRAY, SMITH & ASSOCIATES, INC. Engineers/Planners 121 SW Salmon, Suite 1020 Portland, Oregon 97204 93-0292.101 TABLE OF CONTENTS Ater Cha lilk EXECUTIVE SUMMARY General E - 1 Water Demands Estimates E - I Evaluation of Alternatives E-2 Recommendations E - 3 1 INTRODUCTION General Purpose and Authorization 1 - I 1-2 Scope Sff 2 EXISTING WATER S`ISTEM A11 : A?Pi R DEIVIANDS General 2-1 Existing Water System. 2-1 Water Demand EstiYtirQ!? 2-3 Conclusion v ~`y 2-5 VIA f' IND 3 SUPPLY RN x General,' ::f!~f 3 - 1 yv,,, ~ke egg Supply 3-6 cit. Gify oftlan apply 3 - IO of 7% tirs°Supply 3 - 14 ro-0rest Grove-Beaverton-Tualatin Valley 3-14 !strict Joint Water Commission (JWC) S}Sly Sou Fork Water Board (SFWB) Supply 3-15 Tualatin Valley Water District (TVWD) Supply 3-15 Willamette River Supply 3-16 Conclusion 3-22 4 EVALUATION OF ALTERNATIVES General 4-1 Ranking of Alternatives 4-1 Opportunity for City Ownership of Treatment 4-1 and Supply Facilities Water Supply Agreements and Contract Provisions 4-2 93-0292.101" - i - 4~ Required Improvements and Estimated Project Costs 4-3 Estimated Cost of Water 4-4 Water Rights 4-5 Water Quality 4-6 Supply Implementation liming 4-6 Certainty of Supply 4-6 Ranking Summary and Conclusion 4-7 5 CONCLUSIONS AND RECOMMENDATIONS Conclusions 5-1 Recommendations 5-1 APPENDICES A. References sa E. Final Report for Evaluation of Wate service With and Without Tigard, CH2M Hill, J ty of Portland Response to TVArd. Su l Request C. Ci LIST OF TABL .1 7 Table No.~> x d Pale HTf~t 2-1 Summary of 1., ated $ ula an and 2-5 Water Dem -of MGM 3-1 Project Cos r Labe Oswego Supply 3-3 Imp" nth of Tigard Costs Only) ' 3-2 :tf La~?swego Supply Estimated Cost of Water 3-9 3-3 CitVy Improvements for City of Portland 3-12 Supply 3-4 Willamette River Supply City of Tigard Supply 3-19 System -.20 mgd Treatment Facility Project Cost Estimate 3-5 Willamette River Supply Regional Supply 3-20 System - 100 mgd Project Cost Estimate 3-6 Willamette River Supply City of Tigard Supply 3-21 System - 20 mgd Estimated Cost of Water Summary 93-0292.101 - ii - ~i LIST OF TABLES (cont.) Table No. 3-7 Willamette River Supply Regional Supply 3-21 System - 100 mgd Estimated Cost of Water Summary 4-1 Summary of Evaluation Criteria and Tabulation of 4-8 Rankings LIST OF FIGURES Page Figure No. 2-1 Existing Facilities Plan Maps. 2-2 • ~A 2-2 Water System Hydraulic Pro y! y•"4, 2-4 u.......... s~ f 3-1 Tigard Water Service Aga and Su ternatives 3-2 A, 3-2 Hydraulic Profile of E1lte .l 3-3 3-3 Hydraulic e4...,;AAlterr t$,ves 3-4 3-4 Willamette facilities Plan 3-15 93-0292.101 -iii - ~jp RINI , - . . i r . ~ . ••`i. f I , I a . I . ~ ~ - - . , , I " - - , . "'t, - , ~ - . - . , . . , .t . . . : I . ~ - . . ~ I , - . . , - , . ':y..: - - .r:. y ' i , ~ , . . ~ I . , . . I I ~ : . , _ - ' jt y' c : . ::S . - :.i, y ^r. ; z, a''r N - s Y iu: :1. 4 :r. i i,y w C • 7. .z;~; 4y,' :,h ry. CY• y. `n` f '4 r: ::f c. _ c'. . . f% - Li'' - :.Jr` _ _ y ~'r: :'I i' :G. y gip1 .T'• _ - - ,'r" - - ~'~°t~ . ~'i.; ii' '.S . '11:41 , Y.:1:' U. i Y` •j t= I 6* - ,~l-l.,:-..~7'..,-'-.."".'.'.'--, . "i _ t ,J ~ 1-•. 'i T.' 'ti t , 'Z^^ , . A;. _ J• -t :i _ _.t 4 i'.- :j. :s• r.. . t., _ +i . J ~h. Y r' _ ~tir r 3? - J•;.: . t '3_ .:1; "i . a: ' . r• i. !fw y ::f. ' i h }y . n ,i it 1 ;'r •'C' - - - . : : 0,1... I ~ - - . , ~ - , . , . . . j • ti. M1 A•.- ,:SUM'MARY-' i - 41•_ - r . . :l .i•• ' . . `r :tip'- i . . 1. _ _ 7' - r „ '1 - - - " _ _ EXECUTIVE SUIvUW"Y General This document is an update of a water supply plan prepared for the Tigard Water District in 1990. This update includes an evaluation of seven long term water supply alternatives. These alternatives are: 1. City of Lake Oswego Supply (Clackamas River) 2. City of Portland Supply (Bull Run River and Columbia River Well Fields) 3. City of Tualatin Supply (Bull Run River and Columbia River Well Fields) 4. Hillsboro-Forest Grove-Beaverton Joint Water Commission Supply (Tualatin and Trask Rivers) 5. South Fork Water Board Supply (Clackamas Riv i ,L. 6. Tualatin Valley Water District Supply (Bull Ru.Aiver and Columbia River Well Fields) ::....F% 7. Willamette River Supply above Wilsonville:*I:~: r:•.. .224 v . Water Demand Estimates Estimated water demands for the water service area`vs developed using City of Tigard population estimates for the years 2000, 020. Also developed were estimates of anticipated 1994 demands ant' `4184 pop i on estimate. Tigard's year 1990 population of 30,800 is included as a as year. Population estimates and water demand estimates are sumt,Ymzed in ieYfollo®ving table. :MR Summary of E ~t ll'oR,ulff on and Water Demands fo:\y':., p~x\~K~t}:yy:ry:~`~~~.`~K:.,};c?>:x... `.C2..."{oFory:';~:.`'y*'y.~.~p.~s"' .y~~•°•.~.~?2<>#g:.:..'~':~..~c\~~,~;::`L .c::};:K,•:.; •,•~}~:<y~,l}~'; `Oa 4+ii~`~~ ;LSD'' . ':,,Y,~~~3}A' :~`~.e`+•i;O!44.~$r~~~: y ,`'`~y 3~ o•a• by ~i~ .vv,. .xt` RG f. u'•r}~2.2'~f' Zy~..•}.;v~`,\:NyLy~. Y n \'v `}i;\:~}~~~~~.`,~ j, '2 vK2n\.i v:~.:; "'';~:{2C`~ti: 4 \~1>":U. ` \r x...,{J 4.3:`• ,~+.:x t } 'FRG .Y• v k . NC\ tn, .,y..;.' KS.v.4\+M\ Y :C , Y"~MC+: ~ ` ' i>.',>• i ,`~3.' :U ~+}.F,ti :ZL::27:c `,~.Tg'.. , •.~`wS%:CY.L~. L'.j}. \ ~ ♦ iti fi • w. w \Y „ C \ Kx1~'~\'t+y'' 'i •'a:.• ' stk.;\♦ O :F: 0't Y~~ '`4~u•C'~".~• ~°'C.. ,~,F. ` v.L CCs v...yf+y~'2. •.+•c ?2~,`•~'.\`s c'~..' '~2•\~,.~} ~ a~,, ~'V \~:}G:,tts\. K+'.`\. .A .o>1Y2C.c•. \2K;. 1~ Ka,•~ ~}..`Y 4P':~ n„Fe,~ A}h.•x .<'~~52 k;,'. <.,;;,2 y~. A 'v:c.;:(.;..v A r' a ~,~$~v KY vv<~Ko,:Ck2,4+:.'; »';~3 ` yx Z..\,,yLt:',`$~\w~,~\,C: sT\,~,:,~..`•.•, Vt S;•L', ~S:s.,•'~.'.<y~'~,.;;` $'~..,,.qq.".L.,.. K`...•... r.K:. 'y'.:,~., .:,2~. ~~.~3.{ • :`~?`S.}f$yR ~:}y \>\cc}?2:~~v}.i Kai K K••ti: •L~: ::?}`.i';:~:f;: \`o~"v %r,.ys y;}...,:o•Y..i}:::x.;~4i: kn•. `r'L`S.'t'.'•~}}S :`:.2{,:;,;\.s.~:.'::, Ri,`5:.. 5a;}a(,>3: y~ti`F~ti•. 1990 30,800 4.6 10.6 1994 33,500 5.0 11.5 2000 39,700 6.0 13.8 2010 45,500 6.8 15.7 2020 51,700 7.8 17.9 93-0292.101 E-1 r 1,517 E Evaluation of Alternatives Discussions were held with purveyors of each developed water source. 'Of those providers under consideration, only the City of Lake Oswego and the City of Portland provide Tigard the potential for a long range supply of water from an emoting supply system. A long range supply of water could be obtained from the Willamette River through a City-owned or a jointly owned supply system. These four alternatives were evaluated under a set of eight criteria and ranked in comparison each other. The eight criteria are: 1. Opportunity for City Ownership of Supply System 2. Water Supply Agreements and Contract Provisions 3. Required Improvements and Estimated Project Costs 4. Estimated Cost of Water 5. Water Rights 6. Water Quality 7. Supply Implementation Timing R<<$ r 8. Certainty of Supply A tabulation of the evaluation and ranking resul pi,sented it die following table. Summary of Evaluation Criteria sand '1`~ P.iation of Rankings }:2^}}?}}:::{.w: -;r4y;ii':::.-%.:i:: ni:.. ;:.}::.....ti.%::::.>:::4::... . .n.: Wn:. v.•rv v: n.: v:.T':::.:v .:v::::.: u..::.v v.:w: •..v::::: w::...:: v::: v.•.L•.:-::::•.;;tiv::.w:. . .I2•}::t;n:•$:'?}?i}}isS}:L:2•}:v'r-;24:'!•}i}:<.}:•i:p12ri2•}i??:• ....xr,•.t}:..v .nv x.v :•::•.nw:i:[Li?:}:}:}}:.•,}}:2:2k:•}i:2: :n..::.. 4+t2v:,vti•: n.v nvNi: }.x}: ' ..:A.... . r+v}::k:::+:kY`v.':+! :mw:?i$' ri?~•:•:,p: . nvv' n::.v: Y.:b:n:2???n..^:: i ;i2:' :'k••: Y.:) 4.2.:vh:?~::}}:~-: CJ..O ri n:.};•:ttti;:tit.;:2.::.}}:.y}.:.....:.:::::::}::vr'::k:$::i'$'::}:::i:C•}}}:}:,:.::.:.::::: r}: r}::.::.. 2.:?•.?:.::v: v::.}::2.}}}?i}}::::: ..5..:%2" .nt . . ......r .:.n...v . .......»......x ....n n.........n.......v,. m:::: nv:::::: n...:. vw::::}: \2w............, ..........m»nv r :}r.. v.2ti:6.ti-}}•C:{.? :$}:{2::2•}:k 2 ~'b~..... nv n?: n::: n::• ; i .}?:•}:•}:•}:.?:2:•?}}}}}'^:{2•: 4:?:v: }r...:.i n:•.,?}}::.:::: }}??:::2:•:;;n}}}}:•:v:•}}:::?: }r.•}:. .,.....v.-vr..::,t.,v.{-v}?p::}.::.n.....~-:}}:::::v.,.: w.w: n.n:•?}n n;•... :}.v: viu:''.:;: ~y. ~{t. v~. '}•tn}, i..w:::m::::.:::•:v::v:::.,v:.v: m::: :•:.v:: rr}r.Y.?ti:C:. :.}.y.y:.~ :n:;}:::.~.i?:•i}: y.~y+ 2:::•}: ii>Alip~~:is}$i:~$$.;r:::$:1.:•.2~X'~a~d:>a pttl.kv..6Y1~.;.$~~ Jy y} ~i'• $f wig ..k ti ......::...r......... •~6): ii i:•:ti•:•r • Opportunity for City Ownp of Supply System ti.'.. )kk2 f Water Supply Agrees and- r: 1 2 1 1 Contract Provisions" Required Improvements al 2 1 4 3 Estimated Project Costs / 11 Estimated Cost of Water 1 1 3 2 Water Rights 1 2 4 2 Water Quality 1 1 1 1 Supply Implementation Timing 2 1 4 3 Certainty of Supply 1 2 4 3 Total Points 10 12 22 16 T final Ranking 1 2 4 3 93-0292.101 E-2 111,11 IIJJ III I N" .r Recommendations The recomme_nder~ alternnative for Tigard's long teinn water supply is the lake Oswego ® supply alternative. Tigard should proceed immediately with the steps needed to develop this supply. Interim water supplies are needed to supplement existing supplies as the recommended supply alternative is developed. Discussions should be held with Portland and the Tualatin Valley Water District for these interim water supply needs. It is recommended that Tigard proceed with the following items. Items 1 through 11 should proceed immediately and concurrently and be concluded in approximately one year. Items 12 and 13 should proceed immediately and continue indefinitely. 1. Formally adopt this plan and its recommendations.::;; >;.f 2. Incorporate this plan into the City's Comprehens a Pla x < 3. Proceed with negotiations with the City of. a Oswego to ievelop a long term supply of water. The negotiations should'c azs t r stitutional, financial, operational and other relevant matters. 4. Develop and execute agreements wil eOswe_g upon successful completion of negotiations. 't'w $'~k f::: :$t 5. Prepare a comprehensive,Wdt"e" ysterri master plan update. The plan will identify those system iY,pverats.,retired for implementation of the Lake Oswego supply as well ai ternal=system improvement requirements. Data from this plan will-, Wised' t3 >~ae financial plan. 6. Prepare a fin. at 41 plan.J the City water system considering the financial requirements of.akeLSswego supply, interim water supply costs from Portland and the `aa stitin Valley Water District until completion of the Lake Oswego supply expansion, internal system capital improvement requirements, operations and maintenance costs, and other items as appropriate. 7. Proceed with the recommendations of the financial plan including authorization for and sale of bonds and water rate adjustments. 3. Review existing operational conditions with Lake Oswego to establish arrangements that allow Tigard and Lake Oswego to maximize the available water supply prior to the completion of the proposed supply expansion. 9. Review with Portland Tigard's interim water supply needs during the period that the recommended long term supply alternative is being developed. These discussions should include: 93-0292.101 E-3 11, 1, gicilig ErMEEM iWil A. An immediate review of transmission piping configuration and capacities to confirm the actual capacity of the Bradley Corner connection. B. A review of water use patterns and system operations to provide the most economical supply of water. C. A further review of the impacts on anticipated water costs from variations in system operations. D. A review of the existing agreement for water service. This review should include a discussion of the potential cost impacts of an interim supply arrangement and the potential benefit to Portland for Tigard's ultimate reduction in Portland water use. • 10. Review with the Tualatin Valley Water District Tigard'nterim water supply A *7 f: needs. The discussions should include: l> A. Review the potential for an agrreehzent for warervice that provides Tigard the opporturdj to purchase surplus water to supplement existing suppli6 recommended longterm supply alternative is developed. If B. Determine the need forW'.) raer~#s to provide an adequate interim water supply while l Oswego supply is developed. ONO. C. Review potep"."60: znecti+gn configurations of this interim supply in addition'tcskprsupply and the cost of service 1 /v h }r N. associated rtcl arrangement. r N%}FlirV4' KY~7r Ni. ociated with the development of this interim D. Review ~ X. ::..>>l aricses its further consideration. .emu ~ f 11. Maximize the use' achy of City of Tigard ground water well supplies. These supplies are tutted, however, additional well capacity may be available to supplement existing supplies as the recommended long term supply alternative is developed. 12. Participate in the current regional water supply planning efforts, the Phase 2 Regional Water Supply Plan, and in the subsequent implementation of that plan and other plans that may provide for Tigard's water supply needs beyond the year 2020. 13. Periodically review the findings and conclusions of this supply plan update to provide guidance for the supply of water to the City beyond the year 2020. 93-0292.101 E-4 -2: 1 1111111111 INN r: ,~1~ , . . a , ~ . , , . , . 5' • W® - • , " i' n'" , 's.' s . • Lf _ ^ ' - _ , " " :-r,.~ I - - - , : I , , - , * , : - , : - , ~ - - , , , - - . . ,.o f 't 1- - - i 7... 7, ,•f: ' A'r'' `;.::e N^ r..` H' '.'t:,: L.: _ - .r. ~ i_ t'. - _ - is _ r:' i- y. _ \.:l - r ,i Y , A i•i • , - ' - f 1 . w. • . S•. i . - r s, . q;'.-:^-* ~t: - . ~ , - ' r i• t- - . _y • i - }N': * 11 I . . - _ - . I I -p ; . I I . . ~ I - : - - , - . ~ , ~ . z - ~ . , - . ~ , , - , I . . " . . , , . . ~ . : , - * , I I i - - - - I - - . t: . . r l 'o r • - - CHAPTER 1 INTRODUCTION General The City of Tigard annually receives over 90 percent of its potable water supply from the City of Lake Oswego. Tigard also receives water from the City of Portland and pumps from its own ground water wells. Lake Oswego owns and operates a river water intake near the City of Gladstone and a water treatment facility in the City of West Linn. Tigard has an agreement with Lake Oswego for the purchase of surplus water produced by these facilities. In recent years, including 1994, during peak demand periods, Lake Oswego has been unable to supply the.106tal needs of both communities. In order for Lake Oswego to continue meet it±~wri water needs and the needs of Tigard, major capital improvements to the Lake ;Usro facilities are required to expand their capacity. A study completed for the former Tigard Water Dict pow the City of Tigard Water. Department, titled Water Supply and Water Dis#.oi23'1or thegard Water District, (EES, May 1990) presented four options for future wt;.suppli es. These alternatives included the following: 'fir. ii •,•$,.v'::r ti•M4n .t:++ 1. City of Lake Oswego (Clack amas"itlamette Rivers) 4 2. City of Portland (BullrRMra Rive n>} id nlumbia River Well Fields) 3. Hillsboro-Forest Gxd"" vertoi Joint Water Commission (Tualatin; TraK. versa , 4. Development of a': W W u" p 'from the Willamette River above Wilsonville The May 1990 study". devdiojected water demands in addition to potential capital improvements,':►eect cit estimate, and estimates of water costs for each supply alternative. lido r dations were made for a preferred long term water supply option for Tigard. Sibe 1990 water demands of both cities have continued to increase to the point where'`water supply to Tigard has been curtailed by Lake Oswego during peak use periods. In addition to the 1990 alternatives, Tigard is now considering potential supply source options that include the South Fork Water Board, the City of Tualatin, and the Tualatin Valley Water District. Purpose and Authorization The purpose of this study is to update the May 1990 report, expand the consideration of potential supply sources, and make recommendations to provide a reliable long term water supply for the City of Tigard. On December S, 1993 the farm of Murray, Smith and Associates Inc., was authorized to complete this study for the City of Tigard. 93-0292.101 1 - 1 Scope The scope of work includes the following: • Gather and review documents, studies and plans relevant to potential water supply sources. These water supply source options include: 1. City of Lake Oswego Supply (Clackamas River) 2. City of Portland Supply (Bull Run River and Columbia River Well Fields) 3. City of Tualatin Supply (Bull Run River and Columbia River Well Fields) 4. Hillsboro-Forest Grove-Beaverton Joint Water Commission Supply (Tualatin and Trask Rivers) 5. South Fork Water Board Supply (Clackamas River) 6. Tualatin Valley Water District Supply (Bull Run River and Columbia River Well Fields) 7. Willamette River Supply above Wilsonville • Coordinate and review population data PreP t d'bY ~ the C" ~11 the years 2000, N; A.X 2010 and 2020. ` w tv:N,C ~:•W/J • Based on the population data developed in Tas;, prepare water demand projections for the years 2000, 201Q%and 2020.y>> ` r:. . • Using the supply data and demand d.tawr[Vop supply alternative options. Develop estimates of probable, project "C,osts mid prepare a comparison of the advantages and disadvant ew each on. • Prepare a document that"iz`:'~ summarizes the results of this study. I 93-0292.101 1 -2 «5 E t YY r 1• i; ~ ~ - ~ . . . . , . . - Jy •r. - • iii. , . ti .t . , :"41. r -.W.• 4 - - _ - _ _ .y- _ , Y• j, :,f r: : : •f I I 'J , , , ~ , ~ - Mr. 7 Z. i. 1, ' •t1\ 't)~~~.:. ;t• - ..:':•r t> cif - j S. - :mot- ~ ~y.. - - _ ' .'7 :i. y J. i4s •p. 1.-'~.,~~~',,*.~"".,.,~--; F: x'1 V i . _ t. ~ Y. 49. r _ *J «t ~L~ -ti`, : Y ..t :J . i f ' Vt. _ ~4 Y f"y ti^ x : l'! ti~ : t t - l~*r'---...".,,!.,~-..r..,~--~i- , ! J-..:!~~' --'-~'.n: ":~~-'L*~'-"t '--,4~"~-' - - . - , . , . , -.'-6"j'--.' '~~-'--2. . - '.'.xv , ~ , - - . r ,t ' ti.. ti. s " i3. _ ' r r. :G^-ri: t ;y !r t 1~ ` A" S,. : . : ti s4.. i 1 y F: D 'Si _ ;C- . , f'• 3 1 " ' ~y r. t j•y y;;. - 7^ ^ i v: - ^iy, `i.' j. J. ;r' _ _ . 1 Y. 1^ .p" te L ~ u:~:,,wr . e : . ;r "i?:: jy -,.1. r. f ti - yr . r ..4 ir.. _ r ;F::'r. i r M: _ 4 i .'t : ° :YfY - . r J - - -:1+1 v vt.,. . ' 1 :f.: s:3' :x" l . 1. t< 1: 1 . . n.... . _ v. --t'?.....,'• _ ,.w l.} " t : "I . ...--:1, " "-I . . " ~ , - , _ l .A. .l: ; . :1[ ~`®~,,y` l i®`~ @~ - - r- Vr v a„ i;' ~ "i ' J- _ _ - -'1.. _ - { •.!'l: - - , r - ' . . - , - 1- , " , , 2 . . . . , - - - L .1 - - ~ ~ ~ , I . ~ . . I ' 1% . . , . j ' ' ^ ' ' ' _ s _ <.7 - , 1: CHAPTER 2 EXISTING WATER SYSTEM AND WATER DEMANDS General The supply alternatives under consideration for the long term supply of water to Tigard may require modifications and improvements to Tigard's existing water supply system. A description and discussion of these potential improvements are provided within the Chapter 3 presentation and discussion of each alternative. This chapter generally describes Tigard's existing water supply facilities in addition to providing a general summary description of the water system's pumping and storage facilities. Also presented are estimates of population and future water demands. Existing Water System General The City of Tigard water service area includes thcritiesof Durham"and King City in addition to unincorporated areas outside the Cifyt n khe City presently purchases agpro~_mately 93 percent of its water unreggreement from the City of Lake Oswego. The remaining 7 percent is supplied by °tt pity of Portland and Tigard's own ground water wells. The agreement w$f1 Osweo allows Tigard to purchase surplus water produced by Lake Oswego 's tk afi i f-dcilities. In 1990 this amounted to approximately 1,500 million gall Dur ng"higWdemand periods this supply has been subject to curtailment. A .1h-h. p of T` ard's water system illustrating major 4: facilities and supply connectis is pp~t~d ;kri Figure 2-1. ,tiw`tr u:}:;: Syr Supply Connections ;...rn: rvi„4:+G+ Urr,W,:. V'iv s:t` ;+f Tigard's primary wspplyri tke City of Lake Oswego is provided through the Bonita Road Pump Std` l~ --,.neamtffie intersection of Bonita Road and I-5. This station is located downstream ol'° KA metered supply connection from the Lake Oswego . water distribution system a" houses three pump units. The pump station has a total pumping capacity of approximately 8.0 million gallons per day (mgd) and provides a static lift of approximately 90 feet. The station's firm pumping capacity is approximately 5.3 mgd. Firm pumping capacity is the station's pumping capacity with the largest pump out of service. Supply to Tigard from the City of Portland is provided at a connection at Bradley Comer. Pressure reducing valves (PRVs) at the end of the 16-inch diameter connection from the Bradley Corner supply connection, reduce the water pressure from Portland's system to levels acceptable within Tigard's distribution grid. Both supply connections provide water to Tigard's 410-foot service level. Service Levels Tigard's water system includes three service levels. These are the 410-foot, 470-foot and 713-foot service levels. The largest of the service levels is the 410-foot service "'-^292.101 2-1 7V v..s- CITY,,OF TIGA a'~ ra j WATER AREA ;i CORNER ~ J PLY METER ( F PORTLAND SUPPLY) S4YLDR STREET RESERVOIRS -L I 1 MG OE:416' :O MG OE.416 NO. 2 RESERVOIR2S' 10.OMG OE-.-470" » ; I 1 I D.aeMC PS; ~F 1, ~kl PS:2.flMCO 9.:.$33:`..:. .......:....,,..q. ::I~:.:=?Aad! _ :s: ii'4;;~c'i~ `~:'s[i a• Jgo _ .i •t BONRA ROAD PS 1.104 •T0W : (CITY OF LIME OSWMQI SUPPLY) w 1.9[d0 OE7S3' r p 1.01M' ®7 E y' 7 iiPil x~1 0.2MC OE~713' : G S-i'e°N:bJD ?n - . uo tin Tualoti i-! is I She od , R ' z% i o m l ~ Y~r/ y' gar -t I ?N SGALE:1" =7500' Wilsonviilq~ LEGEND wlLSOrutuE RD e RESERVOIR CAPACITY IN MILLION GALLONS (MG) Figure 2-1 AUGUST 1994 OVERFLOW ELEVATION IN FEET EXISTING FACILITIES METER PUMP SrAnoN ! PLAN CAPACITY IN MILLION GALLO R,...W.j.;'?(m` GO) CI3'Y OF TICARD - WATER,. SUPPLY PLAN UPDATE ® PIPELINE'`" SIZE IN INCHES "`I 93--0292.101 6 level. A hydraulic profile of Tigard's storage and supply facilities is illustrated in [;MMgutLre 2-2. Storage Reservoirs The City of Tigard water system contains twelve storage reservoirs with a total combined capacity of approximately 20.88 million gallons (mg). The largest storage reservoir is located west of Highway 99W on Bull Mountain. This reservoir has a capacity of 10.0 mg and an approximate overflow elevation of 470 feet. The 410-foot service level contains eight reservoirs with a total combined capacity of approximately 8.58 mg and overflow elevations ranging from 410 feet to 416 feet. The City's highest service level, with a hydraulic grade of approximately 713 feet, contains three storage reservoirs with a combined capacity of approximately 2.3 mg. PUnW Stations . In addition to the Bonita Road Pump Station, Tigard's water'tem contains three other pump stations. Pump ~ Station No. 2 contains tw..,. :ump}~•,, > >ts. One unit pumps water from the 410-foot service level to the 713-foot~ce levdRfWthe second pumps water from the 410-foot service level to tl~e°,0 rictg reservoir.&I the 470-foot service level. These pumps have capacities of agi ±±tly 2.0 mgd and 2.9 mgd respectively. The Transfer Pump Station pumps watom the 10 mg reservoir to the 713-foot service level. This station contains-one um Y h' a capacity of Wn. P << approximately 2.9 mgd. The 132nd Street E p tatio , ps water from the 410- . foot service level to the 713-foot service level:""~f?rstion houses two pumps with a combined capacity of aPProximate ly.; Water Demand Estimates Estimated water derfi, for. wader service area were developed using City of Tigard population estis for`ie years 2000, 2010, and 2020. Also included are estimates of anticipated 1 demands and a 1994 population estimate. Tigard's year 1990 population of 30,$00 included as a base line year. Tigard's average daily water use in 1990 was approximately 4.6 mgd. This results in an average daily per capita use of approximately 146 gallons per capita per day (gped). For the purposes of this study, a per capita use of 150 gpcd will be used to estimate future water demands. Average Day and Maximum Day Demands Water demands can vary widely from year to year depending on climatic conditions. Water use also varies throughout the year. Typically water use increases during warmer, summer months. The maximum water use occurring within a 24-hour period during the year is typically referred to as the maximum day demand. This is the demand that is required to be met by the water source or sources. The ratio of average daily demand and the maximum day demand is defined as the peaking factor. 93-0292.101 2-3 Rill OEM=_ Emmil --mom HIGH TOR RESERVOIRS 1.® O 1.iMG .2M® ~~~1 1 1 10 MILLION SITE 1 1 RESERVOIR 47W 1140.2 NO. 3 P 2.~ 10.OMG O. 2 I RESERVOIR RESERVOIRS PUMP STATION 41V 41w TRANSFER p p _ J .28MG .3 O 2.5 Q PUMP STATION 2.9M®O 2.OM®O p FROM ~w 13 LACE OSWEGO 6if1 p ~s® RONITA ROAD PUMP STATION CITY OF TIGAR ap k 1000 900 8w 700 600 PORTLAND FROM BRADLEY 500 O. NO. 1 CORNER RESERVOIR RESERVOIRS RAYLOR STREET N~E1~R ~ 417 141oll 1 Ole' 400 z tome toms tome tome 1.0MO IL < I.OMQD NO ST PUMP STATION PRv 300 I -200 GROUND WATER FELLS , 100 \/\/ATER SYSTEM 0 Figure 2-2 AUGUST 1994 WATER SYSTEM HYDRAULIC PROFILE CITY OF TICARD - W TER SUPPLY PLAN UPDATE 93-0292.101 i ''MAN I! Al :i 11 iil 1 Tigard's historical peaking factor has been estimated at approximately 2.10. For the purposes of this study this peaking factor is used and a 10 percent peaking factor contingency is added to allow for potential future uncertainties. A resulting peaking factor of 2.3 has been applied to the estimated average day demands to estimate dnv demands. pl -jeCtcd aTaax►uwisais.2 Population and Water Demand Estimates Population and water demand estimates are summarized and presented in Table 2-1. The population and water demand estimates suggest that between 1990 and the year 2020 Tigard's population and water usage will increase by almost 75 percent. By the year 2020 Tigard's estimated population will be 51,700 people, with an average day demand of approximately 7.8 mgd and a peak day demand of approximately 17.9 mgd. Table 2-1 s rr. Summary of Estim ed Population and emands yam; . . f .h..b)'.i= !T1~„" iii X: rf:F r: ,'fli,7'°1'r,:..... a .Y .•S`~ .r. 1990 30,800 10.6 £ 11.5 1994 33~0~Y~~: :;..5.0 2000 33''` 6.0 13.8 wt .u. hey 3,r'd;~s• la 20150~r 6.8 15.7 2020 5'700 7.8 17.9 ; &I. Conclusion Recent growth in Tigard and Lake Oswego have resulted in total maximum day demands of both communities exceeding Lake Oswego's treatment plant capacity. The population projections show that the City of Tigard can anticipate continued growth. The population and demand projections confirm the need for Tigard to secure a reliable, long term water supply. Chapter 3 of this study presents seven supply alternatives under consideration for the long term supply of water to Tigard. Chapters 4 presents the criteria by which each alternative is evaluated and an evaluation of each alternative based on these criteria in addition to the selection of a preferred alternative. Recommendations are presented in Chapter 5. These recommendations describe the actions necessary to implement the preferred long term supply alternative. 93-0292.101 2-5 N11 M- •t j. ~ 1 ~.L - . . - ' . 1 . , , . I . . , . -i!'- . . - y . f 1 Y . t t V . 1 Y t . _ z 4 . lk'~~' - -i;--'~' -':7';--' "i ~ , ~ -~-iiii ~ . , 1 ,4'~ . ~ . - ~ - 1 f f j. _ 7 s t.. y 4 f I f ) h it \ R I ir - . - . . -ii- . . - . -i , * ' ' - - . S f l L r 1 t. .r t 1 I.. ! i,. ~ Y ' . D , - - - - I - . . . r } ` Y t f - ` - 1 t .t^ ` [ ' . . I . . . , . . . ; . ~i%' i : . . - ~ - . . - - ' - - - - --'~---i - I-- ,.1. t ' . . . ..CHAP .I t''..'. L:.- :..A.. 1.1...- : . . . . ` .1, 4i . . f ' 1 _ ^ F - ~ . ,.1 . , ~ I.... i1i I , 'i " % . , . . , -1 I ' . < y MM CHAPTER 3 SUPPLY ALTERNATIVES General Seven supply alternatives are considered for evaluation as a long term water supply source for the City of Tigard. The alternatives include the following: 1. City of Lake Oswego Supply (Clackamas River) 2. City of Portland Supply (Bull Run River and Columbia River Well Fields) 3. City of Tualatin Supply (Bull Run River and Columbia River Well Fields) 4. Hillsboro-Forest Grove-Beaverton Joint Water Commission Supply (Tualatin and Trask Rivers) 5. South Fork Water Board Supply (Clackamas River) 6. Tualatin Valley Water District Supply (Bull Run River and Columbia River Well Fields) 7. Willamette River Supply above Wilsonville Alternatives 1 through 6 are existing, developed, potable water supplies from the sources indicated. A developed source has transmission and treatment facilities in place for the production and delivery of water. Alternative 7, the Willamette River at Wilsonville, is not presently a developed source. Figure 3-1 illustrates Tigard's water service area and the location of each supply alternative. A description of each supply alternative is also presented, including a discussion of source, existing treatment and transmission facilities, existing connections to Tigard's water system, and estimates of available supply quantities. Hydraulic profiles of each alternative are illustrated on Figures 3-2 and 3-3. Discussions were held with the purveyor of each developed source. The issues discussed at these meetings included the amount of water Tigard could anticipate receiving from the purveyor, required system improvements (for tooth systems), the potential for negotiating an acceptable, long term supply agreement and other issues relevant to the particular supply alternative. Tigard's estimated water demands, as developed in Chapter 2, were discussed with the purveyors of developed sources and presented to those providers potentially capable of providing Tigard a long term water supply. Project Cost Estimates Improvements required for an existing or new source to provide water service to Tigard are identified and discussed. Estimated project costs are presented for potential improvements to the provider's system and for improvements required to Tigard's system. These costs include construction costs, contingencies, engineering, administration and other project related costs. All costs presented should be considered as opinions of probable costs. Final costs will be dependent upon final 93-0292.101 3-1 ge 1 _ I picilms ftfl~ wmiom Cwndko ' Gl TUALATIN VALLEY z~ WATER DISTRICT . WYP f Ci JOINT WATER a COQ N WATER r PORTL TREATMENT PLAT CITY i oGARD WATER SERVICE AREA i` Mmton _:.s.ri -;a'~p=.r• t:~c ` _ ; 0;- RM Httt `k Vii SM1„L•4'.' ;~'.;lii u'ih : Q~}, - r C=afv'•,'E,,, i!ii: •'~r.: ~.5.':'F~~ i i5~r ui ,i:'{'t .ii' ii:iie .."Si:dr , r•.; .u • Tud • . tt+mluti~ - s CITY OF TUAL.ATIN o ~ WILLAMETTE RIVER AT WILSONVILL E r A U be s SCALE: 1" =15000' f_ ~,F.~*" 'dA ¢47flSSuf•':ry;F, • •n G garb" i WATER TREATMENT W T P PLANT , F ~ .Frq:sM1?~..p M ...~f Al lp:;! Jef Wosho•xYP R1 couu, rY " ;k+~,.{~{-iy kct'.s't i~P ~ r*~w~~..,.',k,rr{I{tSl~ s ~~iaa.~ t. .•...t_ _ , . t ! •s P r {k` n: tf- 1 t it ~';z ; e t ~--~,..._..--~---'a`'"aw:,~4• ~!tiz~{T;' E ~ ~~..i { 1. -t~ ~ ~ .t' {~::s.•s.;:,,l::,d, 1 1•{ ~4'i{ {I tty,y I Fi } r• i ' r: ..3i - tt:I:l1:`::f r h..•a:l - is i 1 k 3~.3 w:, n., l,i°a~. •iSv? . h ,4''.,-' . ~ l 4 - { hi, r' r.~ .~'.y~,t 'stn's::Iii,;;:er.ii;;:~'s•}`~i:k::y;y.wl:,a:~~`~?t*`vtu. y4y, Z.t 4, ,,1y W"~ 4•Governmen Jslon '':ni::~i•rck-.{.:y;~>!,~~.,n`isY:, 1":... ~;~C;t..:..:; a:i;, •Is.i~v ,r.`k kb.. ^;.t`;.6;iig::.j:~;: ,~;r::.p,<",t;`:: "~•::.e.,.a' vti'r' •i;~'~ en!'SyFr`.~k~'ii; .?'it' .:t r t.E ~ • z : { Y{... - .,III a ~ r y , . I•,.v., ,a m 90 glssha^ P ' b r~Q'XK. cao~'' I;S.'n s K ~ o~ - g .w BoAso y • b ~"~~'~T ~ T •iErs[ ~ N , Av e- C Figure Ppf ~1 7~►~ ptd. N UPYtATV tv-P Y PI.A r. p►~ '~?4TfiYY CITY OF TYGAR 1 i ill 1911 11 I'M I'! I 111~1 l'illi ;!I I'll! bi sr RESERVOIR 4W 2D.®@ TR TUALATIN RIVER JONT WATER AT EAST®N C O N WATER WILLAMETTE RIVER TREATMENT PLANT, AT WILOONVILLE CAPACITY-40MGD [A~440MQD. -u.. VBd-I . mum; 1000 U 0 900 X300 r 700 600 500 .,s 400 LAKE OSWEGO WALE RESERVOIR 31W 3w 300 UT1-I FORK 44.0MQ TER BOARD .O TICARO'S SONITA FLANT, ROAD PUMP STATION: C~ITI- 200 Cl.ACKA A3 LAKE OHO RIVER AT GLA®3TONE WATER TA°I~IEt+IT 100 AND AT PLANT, FORK I-205 LAKE OSWEGO C~4PACITY--161 ~iTI`I BOARD CLACKAMAS RIVER RIVER WAKE INTAKE Figure 3-2 AUGUST 1994 HYDRAULIC PROFILE OF ALTERNATIVES CITY OF TICARD - WATER SUPPLY PLAN UPDATE 93--0292.101 PORTLAND PORTLAND BLFd-NQAME WOOD FESEMCIIRS RESERVOIR TO TnAFUS BRADLEY 11 1 SUPPLY TUALAT VALLEY WATM DISTFICT ) I OIRS I o ~ ' 2. I I L I i I I Cam' OF PO TO I FXT®N AND CAROLINA F CIA AND I PLW STAMONS POWER GENERATION STATION 8.7MGD s TO CITY OF WILLA E Tll ►TIN AT PO WASHINGTON COUNTY _.....u r IBM 3000 wo 700 PORTLAND 600 POWELL BUTTE RESERVOIR FROM BULL RUN wr WATERSHED 500 cAPAcriy 22 500 d 400 I ~ I 300 i 200 i PORTLAND COLUMBIA RIVER P GD~ GROUND WATT 1 TE RIVER WAS T'ON I WELLS COUN `°LA® I SUPPLY LINE I 0 Figure 3-3 AUGUST 1994 HYDRAULIC PROFILE OF ALTERNATIVES T CITY OF TICARD - WATER SUPPLY PLAN UPDATE 93-0292.101 project scope and design and construction and other costs. The American Association of Cost Engineers (AACE) categorizes cost estimates as order-of-magnitude estimates, budget estimates and definitive estimates. The estimated costs presented in this report will be identified as budget (planning) cost estimates or order-of-magnitude costs depending on the source of the cost estimating data. Other improvements to Tigard's transmission and distribution systems beyond, those identified in this study may be needed. A comprehensive review of these facilities is beyond the scope of this study. Estimated Annual Cost of Water The annual cost of water for each alternative may include the following components: 1. Debt service for financing capital improvements 2. Operation and maintenance cost 3. Return on investment (when applicable) 4. Depreciation allowance (when applicable):<;:'v; Each alternative presented requires that Tigard mAke 5gme initial apital expenditure.' The amount of the expenditure varies depending~c"'J":" rriative. A common method of financing large capital projects is through>~:t issuance or selling of bonds. The cost for the capital improvement is then spread ov C' 4~et interval. Bond sales allow the public entity a method of financ~ at Y.sr;R/ Y does £ttit require large sums of money be paid all at once and offers a way tb kite the payment for large capital projects on an incremental For, the piiposes''bf this study, it is assumed that capital improvements, whose cqS%. "a fed thd°:city's normal capital improvements budget, will be aid for throw p g„i he sVpo}bot9s. The cost of bond repayment, called debt service, can then be consid 'ft--b d'" i < rliiial cost. For this study it is assumed that bonds will be for azt f 26 4 s at an interest rate of 7.0 percent. Operation and m ; aixit~nce cam; include, among other things, labor costs, power and chemical costs for puari. andvater treatment facilities. A depreciation allowance is provided for the rehab $ n.?of replacement of existing facilities as they approach the limits of their design lif ffi"There may be a rate of return component for Tigard's use of exsting providers' facilities. The rate of return component will only be applied to facilities not owned, in part or in total, by Tigard. The annual cost of water for each alternative is presented following the discussion of required improvements and project cost estimates. Estimated annual costs are distributed over the total average yearly water consumption and presented as the cast per 100 cubic feet (ccf, of water. In order to provide a consistent comparison of estimated coasts of water, the 1994 average daily demand of approximately 5.0 mgd (2,440,000 ccf) will be used as a basis for determination of the cost of water for alternatives capable of providing a long term water supply. All cost estimates of water costs are opinions of probable costs and are based on available information. F nal costs will depend on the final scope and design and 93-0292.101 3-5 gramme= construction costs of the required improvements, contractual arrangements, debt financing costs and other conditions not presently known. City of Lake Oswego Supply The City of Lake Oswego owns and operates a water treatment plant in West Linn. Clackamas River water is pumped from a raw water intake near Gladstone, through a 27-inch diameter transmission main to the treatment plant. The raw water transmission main crosses the Willamette River near Mary S. Young State Park. Lake Oswego's treatment plant is a direct filtration type plant originally constructed in 1968. The intake, raw water transmission main, and the treatment plant have a design capacity of approximately 16.1 mgd. The treatment plant can be expanded to an ultimate capacity of approximately 37 mgd. Finished water•Is. pumped from the treatment plant into Lake Oswego's water distribution system.. lake Oswego's distribution system contains ten service levels, including,&~~*laluga/Tenth Street service level with an approximate static hydraulic grade:1'. e C 1. of 320 feet. Tigard's supply connection to the Lake Oswego systeto this`%ce level near Lake Oswego's Waluga reservoir on the westerly l.ts of the Lake>swego system. Tigard's Bonita Road Pump Station pumps water IN- ft 2 S, connection into Ugard's 410-foot service level. vs> Supply Connection Tigard's supply connection to the fie. Oswego- aisti` button system is a metered connection at the Bonita Road Fnpkation.Titis pump station has a total pumping capacity of approximately 8.0aris,prgvides a static lift of approximately 90 feet. Water is transmitted from the pfa#ariciA rf into the 410-foot service zone through 16- inch and 24-inch diametq~Oping: < > Available Supply vk: Lake Oswego's river intal water transmission piping, water treatment plant, and finished water transmissioi have a design capacity of approximately 16.1 mgd. P• g Lake Oswego's and Tigard' ..p S recent combined peak usages have exceeded the treatment plant's and transmission system's capacity. Lake Oswego's Water System Master Plan, completed in June 1988, developed water demand projections and presented recommended improvements under two demand scenarios. Scenario 1 developed improvements required to serve just the City of Lake Oswego. Scenario 2 developed improvements required to serve Lake Oswego and Tigard. The master plan found that significant capital improvements are needed to continue service to both cities. Completion of these improvements would eventually provide a supply of approximately 37.0 mgd from Lake Oswego's treatment and supply facilities. 93-0292.101 3-6 Existing Supply Agreements Tigard and Lake Oswego have an .fisting agreement for water service under which Tigard is entitled to purchase surplus water from Lake Oswego. The agreement was signed in 1983 and renewed for a five-year term in 1993. The agreement has subsequently been modified and is now set to expire at the end of 1994. The agreement allows Lake Oswego to establish and adjust water supply rates at their discretion. Lake Oswego has established a base rate of $0.57 per ccf of water and may impose an additional rate (surcharge) of $0.28 per ccf between June 1 and September 30. The agreement also allows Lake Oswego to curtail or limit its supply of surplus water to Tigard. Curtailment occurred most recently in the summers of 1992 and 1994. . As a result of discussions with, and in response to Tigard's request for information, Lake Oswego has completed an analysis of supply of water to,Tlgard. The document titled "Evaluation of Water Service With and Without Tigard" "Aw rCH2M HILL, July 1994, examined two supply scenarios for Lake Oswego's water" sysrt, Scenario 1, Lake Oswego alone, and Scenario 2, Lake Oswego and Tigard' <,:A gip ' this document has been included as Appendix B of this report. The pupp-o ' of the' is was to review water demand projections, develop capital cost est ates for imp.""" ements under Scenarios I and 2, and to complete an allocatior`otrtaxed costs under Scenario 2. The analysis also noted that should Lake Oswego ancl''d join together to expand Lake Oswego's existing treatment facilities Y"•f K,v .ideratio~r should be given to forming a water authority or similar entity establishedliyeFgovernmental agreement and that Tigard become an equal partnerkul the inaYiageent of the water supply and treatment facilities. 17 Required Improvements and Pros>""'tin~tes As previously discuss;' f ra?swe>' raw water transmission, treatment, and finished water traxison fsctiea iequire major improvements to meet the demand Xk. needs of both cities. Tila l's B4ftita Road Pump Station will also require expansion as the City's water dema`sc.crease. a'SfM1x The July 1994, Lake Oswego analysis confirmed that for Lake Oswego facilities to supply the water needs of both cities, immediate expansion of these facilities to a capacity of 32 mgd is required. The total estimated project cost for Lake Oswego improvements is approximately $30,936,000. The analysis estimated Tigard's share of these improvement costs at approximately $15,400,000. The analysis identified these improvements for the years 1996, 2003 and 2009. The expansion of the Bonita Road Pump Station to a firm pumping capacity of approximately 14 mgd when expanded treatment facilities are in service would provide adequate pumping capacity to meet estimated peak day demands through the year 2002. Firm pumping capacity is the station's pumping capacity with the largest pump out of service. Initial expansion of the pump station would include the addition Aft 93-0292.101 3-7 HIM, of three pumps, each with a capacity of approximately 3.0 mgd. The estimated cost of this expansion is approximately $630,000. This estimate assumes that the existing pump station site is large enough to accommodate this initial expansion. Ultimately, the station should be expanded further to provide a firm pumping capacity of approximately 18.5 mgd, or approximately half of Lake Oswego's ultimate treatment plant capacity of approximately 37 mgd, the estimated ultimate capacity of this supply. The Lake Oswego analysis estimated the cost of immediate supply, treatment and transmission improvements at approximately $24,200,000 and estimated Tigard's share of these improvement costs is approximately $12,100,000. Additional capital improvements are required in the year 2003 and 2009 for the expansion of Lake Oswego facilities to meet increasing demands. • The Lake Oswego analysis estimates Tigard's share of these improvement costs at approximately $535,000 and $2,850,000 respectively. The estimated project cost to expand the Bonita Apad Pump Station to an ultimate firm pumping capacity of 18.5 mgd is approximtely $260,000. The expansion of the pump station should be timed to occur:avYti:,estimated maximum day demands approach the station's capacity. For the,p rpose analysis this is estimated to occur in the year 2003. Table Project C®3mates;'' for Lake Oswego Sul ~iy,.. neaats Witt' < 'igard v ost~ safly' A.. x:: ..}+'.}'<.}.}:.i: y?.; ~:n'v:J..?::ry: ~j:: i:L::::>':~}: :iv4}?i~v,::n'FnvY.j:r iii::;:: ems:... . ::;.K+:•..: v. .?'o:.u:•?';•?}i?: ;v+•?Y.::.?? y???? yy.?...:::::: ivn:Y:':::: •?x}•:..::.:::: {.v: x::::: : 'v}::!i:?.e:•.v;v::::;::::JV:::::::v:p:;:i.}}}:}:;.v:v:::;.•::.;,.n..•.+ ..:p?'Li;?pv...,..v.: r:.... ??:4}::{±C:iip}ivv:';:.: :.:::::+vm::•.v.:...n,..n.v n?::::: <C???:^.?: }:iti{:ii'~i:~;ip. :n.:•. n' ~M~........ ....:..:......r :::.},:.:::.,.:.::;.:iii.}::ii:}:.:.::.:: r City of Lake Oswegn'Epply, k` Treatment and Transiaan r $12,100,000 535,000 2,850,000 Facilities Expansion t~ ~F • ~}i{v Bonita Road Pump Station i 630,000 260,000 Expansion 0 TOTAL PROJECT COST $12,730,000 $795,000 $2,850,00 ESTIMATES The costs presented in Table 3-1 are classified as budget estimates and should be considered accurate within plus 30 percent to minus 15 percent. This range should be considered a statistical confidence limit and not a contingency. The costs presented are based on an Engineering News Record Seattle Construction Cost Index of 5747. A 35 percent_ contingency, administration and engineering factor is included in the estimated project costs. 93-0292.101 3-8 , The total estimated project cost for this supply alternative is approximately $16,375,000. The estimated project costs identified for the Lake Oswego supply alternative do not include piping or other distribution system or transmission system improvements beyond the Bonita Road Pump Station. Estimated Cost of Water Estimates of water costs from the Lake Oswego supply include debt service for the large capital expenditures required, operation and maintenance )O & M) costs, a buy- in charge based on Lake Oswego's estimation of the value of existing facilities and a depreciation allowance. The buy-in charge, a one time payment, provides for the purchase of the existing supply facilities based upon estimated depreciated replacement costs as developed in the Lake Oswego analysis. While it is anticipated that the improvements identified in Table 3-1 may take years to implement and complete, for cost comparison purposes, funding for these impro ements is assumed to begin in 1994. For the purposes of this study it is assumed that the 1x34 capita,: costs presented in Table 3-1, will be financed by bonding for 20 years :a€'a'r=interesiz''of 7.0 percent beginning in 1994. Annual debt service on this l ohded, ount i approximately $1,202,000. Lake Oswego estimates Tigard's sl 'a~° '~f;<~>~4 annual O & M costs at K-.. I i u: approximately $515,173. Lake Oswego estimates th~.ue of its existing facilities at approximately $13,106,860 and estimates, ard's buy £ charge at approximately $6,514,598. Annual debt service on the b ! tfe arge 'approximately $615,000. The annual depreciation allowance of Tigarft' f~ tdd share of this alternative is approximately $246,000. Table 3-2.2 esents 'sux nary of these estimated costs. The 1994 estimated cost of wat ,$tifts alternative is approximately $1.06, based on 1994 annual water consumpcof aramtly 2,440,000 ccf. Al 3-2 of {fie Oswego Supply ted Cost of Water :i:t!t:•:;;L:t•?ii'J:::UN: i:-iiii:bi:Y.Gi:;%t;:::: ~A ....::::o:•:;ic;::4iiiiiiiiii:'viiiTiYi.ini:: ~ t.::. .:b:Rii:•::i:'v> 'ii}ii::YiY'iii ,r ■~~y'~'{~~~y9.~~py'y~ :..W.W~t::C:i•;<::tti•i-:•:::: n• .:i'::: ,v::.+-: n: nv....• nv...... i::: ;.3. :v-........; n•. n•...:..: nn•. nv...... •f./w~0.S8Aa{bi l.'A.i.. .....:n.:........., ......n.,....,:....,:.~teY'Sd....n: ..n.....: ,:.::::::.:~:::::::.:::.,::.::::::i<it.::::.......:::............;... ...;..,,::.:....:.:;>;:.;'.;:.i•:. ..v.,,....:,....,,,~.,;,;•.;•:n:>,.::.:,a>.i,,,:t,..t::a:::-:::.,,.:.,..,:n.,.,.,:h.:::.... ..............:t:.>::~~::::::.,:.::.............,...............,. ost:;:;>:i:z::.>:ti. IBM Debt service on capital costs $ 1,202,000 Operation and maintenance costs 515,173 Debt service on buy-in charge 615,000 Depreciation allowance 246,000 TOTAL ESTIMATED ANNUAL COST $ 2,578,173 1994 Estimated cost per cef of water $1.06 93-0292.101 3-9 I! q1:1: The estimated cost per ccf of water will vary over time. The water demand estimates presented in Chapter 2 indicate that Tigard's water demands will increase. As water consumption increases, the cost of debt service per ccf will fall. Also, the cost of debt service is only carried for the, life of the bond, or, for this analysis, 20 years. O & M costs are estimated to rise proportionately as water production increases. Supply Implementation ?Fining It is anticipated that actual implementation of funding mechanisms, institutional arrangements and improvement scheduling could occur within 1 to 3 years and that a new supply could be operational in 3 to 5 years. City of Portland Supply The City of Pordand is supplied water from the Bull Run Wa rslied and ground water wells along the Columbia River in northeast Portland. Tht'M&U Run supply has a capacity of approximately 225 mgd. Treatment of this,.: rater Ance presently consists of chemical disinfection. The City of Portland's water-g ►stem i9-`?*4 argest in the metropolitan area and supplies water to a number W wholesale cistomers outside of the Portland City limits. 'tM•:~ ti::~ ~ 4•S•tvv :•'•4 • Supply Connection >v>: The City of Portland can supply water to TigiE` htiiEgh a metered connection at the intersection of SW Hall Blvd., Oleslon:,Road, ' tti Greenburg Road, referred to as .to t1#§. jocation through a 24-inch diameter Bradley Corner. Portland supplies' WIP. main from the Burlingame and ` esti d,Res&r oirs in Portland's west hills. These reservoirs have overflow elevatie'itF>approximately 644 and 653 feet and are supplied through the Ca!,raling arOMFUton Pump Stations in southwest Portland near the Willamette River.: Vie` pt p,sta t^ have a combined total capacity of approximately 32.44and a:Supplied watts through transmission piping connected to Conduit'1~ v3;.nee&.Mount Tabor in southeast Portland. Conduit No. 3 is one of three supply coh4p . ~ffiat transmit water from the Bull Run Watershed to the Portland area. Tigard has a 16-inch diameter transmission main that connects Bradley Corner to the City's 410-foot service level near the intersection of SW North Dakota St. and SW Greenburg Rd., referred to as Tiedeman Comer. Water pressures are reduced to acceptable levels through pressure reduction facilities located at the connection of the 16-inch diameter transmission main to the distribution system. Existing transmission piping and valving also allows this supply to be directed to the 10 mg reservoir in the 470-foot service level. 93-0292.101 3-10 kit. _ WIN 11111111 zjllpqggg~~, 115 WE Available Supply Discussions with the City of Portland Bureau of Water Works and past use of the Bradley Corner connection revealed that Portland can supply Tigard approximately 8.0 mgd. Recent attempts by Portland to supply this amount and by Tigard to take this quantity of water have shown that the connection can presently supply only approximately 5.0 mgd to Tigard. The reasons for this reduction in capacity are not presently known. In order for Portland to supply water beyond 5.0 or 8.0 mgd, additional transmission facilities are required from the Burlingame Reservoirs to the Bradley Corner connection. There is concern within the City of Portland Bureau of Water Works over the Bureau's ability to provide a long term supply to Tigard. It is anticipated that some of these concerns will be addressed when the Phase 2 Regional Water Supply Plan is completed. A copy of Portland's response to Tigard's presenta .-bn of its estimated water demands and to Tigard's request for increased use oce Portland supply is presented as Appendix C of this report. Existing Supply Agreements Tigard and Portland have an existing agreement'fo" t service under which Tigard d. The agreement is a is entitled to purchase surplus water from the City 'o€-ttlan cost of service contract that became effectiv.e.,.in July 19 2 id has a term of 25 years. The agreement allows Tigard to purchase vs g.pm Po"', .and at an annually adjusted Y: rate. Certain provisions of the agreement hive4 ttered and others added through negotiations between Portland and;#:yvholesale customers. For example, Portland may assess a peaking charge on, ai uppli si`,to Tigard and other wholesale users at certain hours and days durir;g h*-.. ater, se months. This charge will vary he av'a iff'flow to the peak flow volumes. The depending on the ratio of the. agreement also penalizes.* eailke,less water than their historical five year avera a use. The results of t i Ph < Plan may prompt an examination of the g existing agreement, ry•<- rfi.:... Required Improverruants it Estimates As described, Portland can `supply approximately 5.0 to 8.0 mgd to the Bradley Corner connection through existing City of Portland piping. Tigard's existing 16-inch diameter piping between Bradley Comer and Tiedeman Corner has historically had adequate capacity to carry these flows, however, Tigard has planned the construction of a parallel 24-inch diameter transmission main to increase capacity and improve reliability. Increased use of the Portland supply will require the construction of this piping. Pipe sizing should be confirmed prior to construction. For cost estimation purposes, it is assumed that 24-inch diameter piping is adequate. In addition to piping improvements, additional telemetry and flow control facilities will be required to allow more precise monitoring and flow control of the Portland supply. Present operations rely on the manual operation of valves to activate and control the 93-0292.101 3-11 i NZ: III EMS= amount of water taken from the Portland supply into the 470-foot service level. The 410-foot service level presently is'automatically controlled. Automated control of the Portland supply is required to increase control flexibility over the Portland supply and allow for more economical system oileradons. Automatic control to the 470-foot service level should be accomplished by the installation of an automatically controlled valve near Tiedeman Comer. Arrangements could be made with Portland to share telemetered flow data that is currently collected 'by Portland at the Bradley Corner connection. In addition to system improvements, a hydraulic analysis of transmission system capacities from the Burlingame Reservoirs to Tigard's 410-foot service level connection and the 10-mg reservoir should be completed. This analysis would confirm the existing capacity of the supply and confirm transmission pipe sizing assumptions. Portland estimates that it can supply an additional 11.5 mgd. digigard with the installation of approximately 28,000 feet of 24-inch diametef*<piping from the Burlingame Reservoirs to Bradley Comer. This results iWA2c'=1 supply capacity of approximately 19.5 mgd from Portland which would be W ciegd to meet Tigard's water supply needs beyond the year 2020. The City;if'Portland'`tinates the cost of this improvement at approximately $5,000,000. w;. fir; Table 3-3 summarizes estimated City of Tigard imp vent costs for the City of Portland supply alternative. The estimates.:,assume tl ard's existing telemetry and control systems can be readily expand"ez`ryaUow fo'automatic contr ol of the Portland supply. The costs presented shouli"kid :dered opinions of probable costs and should be considered as budget)yel estates:" Cfi y," provements for :.~ortlan+d Supply VvT. ::•i\4: ii i:::i•iii: is •i:::^:: ii ii:::::i::vi:{: i:v: iii? n:i :j!:!'iiiiii:•.. .::SiiA.:;.,.:ii}is i::.v :.}i:K•ii:p}iY.v:>.. . . :.:.:...:.......:::.....:nom:: i:{:•iv. {:::.:.:...v:::.::: :::v:::::::::: ;b:::..:.:: r:.:::•: +U:•::'::::i:?:i: •^ip:;.., . - $ Hydraulic analysis of Cat~~$rtland Supply 15,000 Transmission main - 900,000 From Bradley Corner to Tiedeman Comer (4,350 If of 24-inch diameter main - including Hwy 217 Undercrossing) Installation of flow control valve and vault - 135,000 (Includes vault, valve and vault piping) Transmission main - 51000,000 From Burlingame Reservoirs to Bradley Comer (28,000 if of 24 inch diameter main) TOTAI, ESTIMATED PROJECT COST $ 6,050,000 93-0292.101 3-12 As Tigard has identified the construction of the 24-inch diameter main in its existing capital improvements program, it is assumed that this improvement, the installation of the flow control valve and vault and the hydraulic analysis could be funded through that program and not require bonding. It is anticipated that Portland would install the transmission main from the Burlingame Reservoirs to Bradley Corner and that Tigard would compensate Portland for its use. For the purposes of this study, it is assumed that Portland would be reimbursed for the entire cost of this improvement through annual payments from Tigard. Considering this improvement as funded through debt service would result in annual payments of approximately $472,000 for 20 years. The total estimated project cost for this alternative, for service.:to the ,s year 2020 is approximately $6,050,000 in 1994 dollars. Additional impr. pments may also be required within Tigard's transmission and distribution. 13etiet3unation of these improvements is beyond the scope of this study. Estimated Annual Cost of f Water Portland sets water rates for wholesale customers tzrgh calculations with multiple variables. The variables include a five yeax::,,average of~xal water usage, the ratios of hourly and daily usage to the average arise, wither Portland must pump the suliplied water and the water use patterns tiff otltilesale users. Portland developed estimates of~ble bas,_water costs for this study using a computerized rate model tha;:. est wader costs five years into the future. The 'an estimates are variable and depe t-on- a3~~ umber of conditions not presently known. The estimates do, howev. rygovid ange of probable costs. These base costs are between approximatelA:$al $iMS per ccf. Water costs in the lower end of this p: ^ range are achieved:t a gh oldl;#tional procedures that reduce peals day and peak flour use ratios. M•. roTr The construction of the 24=aeh transmission main from Burlingame Reservoirs to Bradley corner could resulem additional costs of approximately $0.20 per ccf assuming annual payments of approximately $472,000 and an average annual consumption of approximately 2,440,000 ccf or 5.0 mgd. Portland has indicated a willingness to negotiate a payment amount and payment schedule for this improvement. It is estimated that the cost of water from a Portland supply is between approximately $0.30 and $1.05 per ccf. The City of Portland rate estimation model can estimate water costs up to five years into the future. Portland water cost estimates beyond the year 1999 are not available. It is anticipated that the Phase 2 Plan will provide Portland direction on future water supply improvements and related costs. 93-0292.101 3-13 Supply Implementation Timing - It is anticipated that a City of Portland supply of Tigard's total water needs could be operational in one to three years. City of Tualatin Supply The City of Tualatin relies on the City of Portland for its water supply. The City is supplied water from Portland's 50 mg Powell Butte Reservoir through the Washington County Supply Line. The supply line has a capacity of approximately 64 to 60 mgd of which. approximately 5 to 7 mgd is available to the City. A 48-inch and 36-inch diameter transmission main extending south from the intersection of SW Beaverton/Hillsdale Hwy. and ®leson Road south, through Tigard, serves the City of Tualatin. Supply Connection The Cities of Tigard and Tualatin have existing emer, riby suPPl aaizections that allow flow from Tigard to Tualatin. Available Supply Discussions with Tualatin indicate that it drat prot3e a long term water supply to the City of Tigard. Following these discuds alternative was not considered for further evaluation. Y i{:•} Hillsboro -Forest Grove - B toxXg~,< alat3n Valley Water District Joiaat Water Commission (JWC) Supply The Hillsboro, Forest Grove;< vex on "Tualatin Valley Water District JW C supplies water to its member ties hsoM. a water treatment plant located on the Tualatin River southeast of Fore<...~~.~:.~oveThe treatment plant can be supplied raw water from the Tualatin and Trask RQ~ any%the treatment. plant is a conventional type with an intake structure located not of the treatment plant on the Tualatin River. The treatment plant, raw water intake facility, and raw water transmission main have an existing capacity of approximately 40 mgd. The treatment plant can be expanded to an ultimate capacity of approximately 60 mgd. Finished water from the treatment plant is pumped to the Fern Hill Reservoir located just east of the treatment plant on Fern Hill. The reservoir has a capacity of 20 mg and an overflow elevation of approximately 520 feet. Approximately 20 miles of transmission piping carries water from the reservoir to the Cities of Hillsboro and Beaverton and the Tualatin Valley Water District. Supply Connection The .JWC and the Tigard water system are not presently connected. 93-0292.101 3-14 Available Supply Discussion with the JWC revealed that the JWC cannot provide any short te= or long term water supplies to Tigard. While the JWC is presently considering the expansion of its trea LLerrat acilities,.the additional supplies are needed by the member entities. Following these discussions, this alternative is not considered for further evaluation. South Fork Water Board (SFWB] Supply Oregon City, West Linn and the Clairmont Water District are supplied treated Clackamas River water through the SFWB's water treatment plant that is jointly owned by the cities of Oregon City and West Linn. The river intake is located on the looser Clackamas River, east of the I-205 freeway. The intake facility, transmission piping, and the treatment plant have a capacity of 20 mgd. Thi treatment plant is located in Park Place The SFWB is presently conducting ertg veering studies to provide for the expansion of the intake and treatment fati<,. Transmission Piping Treated water flows by gravity from the treatm ough a{ 30-inch diameter pipeline to the Division Street Pump Station in Orvt From the um station the water is pumped through a 24-inch diameter transsion main to the 10.5 mg Mountain few Reservoir and through anofi;.nch ameter transmission maim across the 1-205 Willamette River Bridge into lh~46f West Linn s water system. The City of Lake Oswego's water sy.g.te,xn is in fiedg fo the West Linn 24-inch diameter transmission main through At"124 pipeline along Highway 43. It is estimated that this intertie '*u p to ► mgd to Lake Oswego, however, due to hydraulic conditions, this Mt t tyxOvide this volume when Lake Oswego's 4::'+Ybi:' c treatment plant is oper~t or IT s present maximum capacity. ,wc"Supply Connection The SFWB and the Tigarc~"?/system are not presently connected. Available Supply Discussions with the SFWB revealed that the SFWB cannot provide any short term or long term water supplies to Tigard. While the SFWB is presently considering the eapansion of its treatment facilities, the additional supplies are needed by the member cities and the Clairmont Water District. Following these discussions, this alternative is not considered for further evaluation. Tualatin Valley Water District (TVWD) Supply The TVWD is the largest water provider in Washington County. The District relies on the City of Portland for its water supply. The District is supplied water from 93-0292.101 3-15 MEN= Portland's 50 mg Powell Butte Reservoir through the Washington County Supply Line which ranges from 60-inches to 84-inches in diameter. The supply line has a capacity of approximately 60 to 64 mgd of which approximately 52.8 mgd is available to the District. A 48-inch diameter transmission main extending south from the intersection of SW Beaverton/Hillsdale Hwy. and Oleson Road serves1i A:e+.: s. r area of the District. The Metzger portion of the TVWD (formerly the Metzger Water District) bounds the City of Tigard along Tigard's northeast boundary. Supply Connection The TVWD and the Tigard water system are not presently connected. Available SuPPW Discussions with TVWD found that it could supply Tigard in tbre,,4short term with its existing supply through the Washington County Supply Lis dd=-: through additional supplies it anticipates receiving through its recent J'oinir!l€i'' f JWC. The District i s~ur.,.r.':~v~,• . estimates it can provide water in varying amounts, derR). 'its own supply, to Tigard in the short term, from one to five years. Existing Supply Agreements j 100 ~cf12~,.'a The TVWD and Tigard presently have no existing suppF'eements. •:s: Viz:>.,.. Required Improvements and Project Cost EsL`V' 8 • T&V d i 3 quantities needed to meet Tigard's long As the TVWD cannot supply wa .Qst 4estimates were developed for this term needs, no improvement roj di i" alternative. ReeommendatiOns # >interim water supply arrangements between TVWD and Tigard<;Gpr ed,in Chapter 5, Conclusion and Recommendations. x1, f~ Willamette River Stapp{"~ 3 Presently no Portland metrt~politan area water provider uses the Willamette River as a raw water supply. Several area providers hold water use permits on the Willamette River near Wilsonville. A small scale pilot filter plant is presently being operated there by the TVWD and the City of Portland to study the treatability of the water. Two options are available for Tigard's consideration for the use of the Willamette River as a long term supply source. Tigard can construct and operate its own water supply system or become a participant in a regional supply system. The study of a regional water treatment facility on the Willamette River near Wilsonville is included as part of the Phase 2 Regional Water Supply Plan currently underway for 27 regional water providers. Preparation of the Phase 2 Plan includes the development of technical memorandum on a number of plan elements. Data developed as part of these 93-0292.101 3-16 gill liel; IiIIIII !I HIM I technical memorandum is used to develop cost estimates for the regional treatment facility alternative. C W amette ~~auvcr SuYply 1__ 96_G -ua____Ves 15 prC5eI1lCU. d to LLe location vl a+il6rrx__~ /SQale xv~:a discussion of both y-h t a potential Willamette River water treatment facility and transmission main alignment alternative are illustrated on Figure 3-4. Supply Connection The development of any Willamette River supply source for Tigard will require the construction of transmission and pumping facilities for the delivery of water to Tigard's distribution system. A discussion of these facilities is included as part of the required improvements identified below. Available Supply It is anticipated that the development of any Willamette #v appI for the City of Tigard will provide a supply adequate to meet all of Tigi`s ted water needs through the year 2020. Existing Supply Agreements Tigard currently has no agreements for direct supply St*tg potential Willamette River supply. kt..f:..<.:... Required Improvements and Cost Fa#igaurtes r' or jointly the construction of a rlaw water it~lant, an associatedPrum P~ facilities. <; P Raw water and finish edtt;tran sion piping is also required to carry water between the facilities afi f 3 ard'' 8/or other regional distribution systems. City of Tigard Supply wkR> SJN ~•.f?uy ot° '~CSric~': 9f Table 3-4 presents estimat yproject costs for a City-owned water treatment and transmission facilities with"'a capacity of approximately 20 mgd. Development of this alternative may include additional costs related to the potential need to purchase raw water from US Army Corps of Engineers (COE) storage facilities upstream of the proposed treatment facility. The total estimated project cost for a City of Tigard Willamette River supply alternative is approximately $35.0 million. Regional Supply System As an alternative to Tigard constructing its own water treatment plant on the Willamette River, a second option was considered. This option would require that Tigard reach an agreement with other water providers for the construction and 93-0292.101 3-17 MOM! t ~q e~ ~ Apr ~•.U. _ ! - E AREA WATER a .Oal •.t' _ST;.`i/ i r•, q• ~y CAL.E:1" =750C' 4 Bull. dtnI bra o - LQlce 0$Wego . Sr cm tfeDJNA4.0 -4` `"c- 5. - _ o BULL MOUNTAIN - 14eng Gity 8 4 nEA s~ Q~ , y% . ` n. ten ours se ' , \ ✓ j =RAGE AND DISTRIBUTION ?c 7, :ws i 1~ FACILITIES olinm 'o Tualatin f pivef. Rivergrove SAGERT R^ n / TUA• .T.. ^ f EDY i'~EGlORG STORAGE ANd ALIGN A~IcNT ALTERNATI ~tl r ®ISTRIBUTIE~N FACILITIES r iI FOR CITY OF TIGARIa I. > \1 ~rC OR REGION W AT TRANSMISSION 6►~ \ i ;West Lincr i' 1B•ec ELLIGSEN R7 /'...:tt»';.,°.. RC Z ~I =1 ~l M I s^ECKMAIJ RC I I ADVANCE ~ RD tj 1r ~ Wilsonville P LCCATION --,-OF OI;TY OF TiGAR® /OR REGIONAL WATER / TREA CILITI~ES RD Figure 3-4 AUGUST 1994 WILLAMETTE RIVER SUPPLY FACILITIES PLAN MAP CITY OF TMARD - HATER SUPPLY PLAN UPDATE WiNpMg~~ 93-0292.101 lig Table 3-4 WW.amc"c River City of Tigard Supply System - 20 mgd Project Cost Estimate v:...vvi2}:Y.;:T:;.}8.}i:•:L%:}`::::Tis:k::ii:<;::::;";5:i;:.::y:;::.. .........::5 is is :.'d.tbi6i• 1. . p A7t.. River Intake, Water Treatment Plant and High $ 24,000,000 Service Pump Station Raw water and finished water transmission main 11,000,000 (60,000 If of 36-inch diameter) TOTAL ESTIMATED PROJECT COST 35,000,000 operation of a larger, regional treatment and transmission sue. The Draft Phase 2 Plan has included an evaluation of Willamette River tent f Clues as one of its source options. The analysis included the develops, ' 6n of projecty ist estimates fora Willamette River treatment plant with peak ca.pai, i$veen 10b mgd and 500 mgd. For the purposes of this study it will be assumed th# aid would participate in the construction and operation of a regional treatment fa -ylth a peak capacity of approximately 100 mgd. The facility woulr. an avdge production capacity of approximately 50 mgd. For the purposes of fi;' all assumptions are based on the Willamette River source option ,identiiiec3 aa'Alt alive 1 in the Task 7 Technical Memorandum of the Draft Phas~>2-` m. Aa The costs for a regional treatine ;dude a river intake facility, a conventional water treatment plant witl~„yonatis a finished water pumping station, and raw and finished water trans raft Phase 2 Plan cost estimates are based on the assumption JW#06 ? e fit i I ed a~ titer may ultimately be transmitted to potential regional storage facili e t st of regional storage facilities is not include in this analysis. The casts estimates developed for the Draft Phase 2 Plan are considered planning level or "reconnaissance-grade order of magnitude" costs as defined by RACE. Estimated project costs include a 25 percent contingency factor and a 20 percent allowance for administration and engineering. The accuracy of these cost estimates is plus 50 percent to minus 30 percent. The costs are based on an ENR Seattle CCI index of 5,600. The total estimated project cost for a 100 ingd regional treatment facility is approximately $13.2 million. The project cost estimate includes construction cost estimates of a river intake, a water treatment plant and a finished water pump station. Development of this alternative may include additional costs related to the potential need to purchase raw water from COE storage facilities upstream of the proposed facilities. A summary of estimated project costs is presented in Table 3-5. 93-0292.101 3-19 ® i'0avs~ v°v Willamette River Supply Regional Supply System - 140 mgd Project Cost Estimate } } - Y :g. v.{v. ...:.v:a}::SS:f:::f?•}:}::::::n:v:::.vvJ:n•:A:?.s:.}:}::n:::; vv n.,....v.....v.vvv:.n, rnvi :......n.::,}...T......,k:.::.::::;n•..:::::::. v.vJ: J': i'L..S.... J:v 4ip:•:tiSN}}}::n::; A.v; .:.v':Svi:n::v:;:: r.v:x...: n•.: .x.: .1 :.n r.. n•.. F. .H.. ...v. . . .vv.. ....v.. J...:... ''•}>n:: .:..::,.:S •x:r:n:v: .....n...•f, } ..n nv.•;v......:.. n. n.... r......v.....:xn ..l..LVJ.....:.3......n...v..n..v..n,.:vvuv...;vn:.?::vYn.v....... xJ River intake, water treatment plant and finished $ 85,500,000 water pump station Raw water and finished water transmission main 40,000,000 (89,500 If of 72-inch diameter) y/u Estimated construction cost - subtotal 125,500,000 45% Contingency, Administration, and Engineering 56,500,000 TOTAL ESTIMATED PROJECT COST 2,000,000 ~ A-60~., Jr Based on an average daily water treatmen ,:p Iant prod us s of approximately 50 mgd Offl, and Tigard 's 1994 average daily demand of Tigsrrd's estimated share of these estimated project costs is approximately 10~V'*er ~yfthe total estimated project cost . , or approximately $18.2 million. Offil A l+r 5VF Estimated Cost of Water ~R4~• The estimated coats for kat?t:"s;#1i11 a River supply options are calculated with debt service, operation and.> IfiairritF'l ce and a depreciation allowance. City of Tigard Supply b - mgd The cost of debt service to l ance the capital improvements identified in Table 3-4 is approximately $3,300,000 araraually. Operation and maintenance costs are estimated at approximately 3 percent of capital costs, equalling approximately $1,050,000 annually. As Tigard will own all the facilities no rate of return component is included. A depreciation allowance of 1.5 percent of capital costs results in an annual depreciation allowance of approximately $530,000. The total annual estimated cost for this alternative is approximately $4,880,000. Based on an average daily consumption of approximately 5.0 rngd (2,440,000 cen, the estimated cost of water for this alternative is approximately $2.00 per c cf. A summary of the estimated annual cost of water for this alternative is presented in Table 3-6. dab 93-0292.101 3-20 ly Table 3-6 Willamette River Supply eve. Fru .a G•..w.. C'e..eb~o... _ oit9 r.s l~JLL.- FiA asgaru SUPP9ay-. vara~caaa - 200 ..aau Estimated Cost of Water Summary :v... is •'r': . M.. ::nnh. . ...iJ~YF. - ..n n.:.[.n.n::.m.:n :n r.. n... ' }v Trim. u . r . :N.;:., x... vv :::.n.................5 ;....v.v ..v. v.:v .n..::::::::. . . . .r v vuf,{ ...............n .r.. 'i}::Jri'%~::n. .Y'. K;ui:..f»?:: Ci Debt service on capital costs $ 3,300,000 Operation and maintenance costs 1,050,000 Depreciation allowance 530,000 TOTAL ESTIMATED ANNUAL COST $ 4,880,000 1994 Estimated cost per ccf of water $2.00 Regional Supply System The cost of debt service to finance a 100 mg d b > ,.l . d e ~tpply systibin is appro--dmately . 17,181,000. Operation and maintenance costs a-m-.0' s riated at appro dinately $6,440,000. The ` annual depreciation allowance is ,pr . f. ximately $2,730,000. The total estimated annual costs for this alttiue is ap''" oroximately $26,351,000. A summary of estimated annual costs for a 1 f`f'F"'} " (I► ivona, treatment facility is presented in Table 3-7. The estimates cost o aiafie? from the regional supply system is approximately $1.08 per ccf, eost of 'grter estimates are based on an average daily production of approxizx~aft 50d t[24,(30,000 ccfj. xxa•:y o is r~7Cable 3-7 ~~.'J'S}YJt. q:;t •,~7,v.~rfiuf+y WS)C~%~9::}r y`W Otte Diver Supply ;>~egi '0 Supl~Ply System - 100 mgd ' i tiffi esl Cost of Water Summary n..Sh ..vn S.M,. ♦ ♦JU ...v ~v::c .....v..+.I.;;•.p. ::.:;J? h}.}:}:"n~?;:{p;;, .1.. ....5: nom:'^~itx.::iY:•:::. + ~ F'it' n. . .F.?:;.:.,>.. , r..,.....:.. nu, n?S nv,'v Cn,,. ,v ,v, erRx,.y..v~v.v;v.. .n..v }'i; nvni.n +bx vv: {\':i K ~ i~.Y u,vuu , i vh+' n.: i n •FZ17. . vu v.. h. n.n.. :.nv;h q: ..,..v .Y....:Sv}:}}:nS}}:<^ : . .'1!:Y.Y.i::tl•,:i:~}'i:::jj::j:x:iY:Sit$ii: i:i::ii: ny3~„rc... r.,, w.}:.~}'~....~\; ~+.v:::? }xn ~V S.•J h n... . v.. 1vn,. ..u..n»;». },ii..\♦??Jiit3t:'iY'."`~vYV:nV`v:'ii't:4+:?':it$:;.~:.:.'vi::i:'?ix:t`fn;.::::::::;n:::::::: n..;. Debt service on capital costs $ 17,181,000 Operation and maintenance costs 6,440,000 Depreciation allowance 2,730,000 TOTAL ESTIMATED ANNUAL COST $ 26,3; 1,000 1994 Estimated coast ccf of water $1.08 93-0292.101 3-21 Using the demand data presented in Chapter 2, the estimated cost of water for a 20 mgd water treatment facility may decline as the demand increases. Estimated future ClJ.7W Va Waal.Ca Va to acr ,iVaaO3 1.a G/S UI'M aacaaL adl.au6y are not eYalUated as no demand data was available to support usage variations. Supply Implementation Ming It is anticipated that a City of Tigard water treatment facility and supply system could be operational in approximately seven to twelve years and a regional treatment and supply system could be operational in approximately five to ten years assuming that water rights, water availability and other issues can be successfully resolved. Conclusion Of the seven alternatives under consideration, four offer the of Tigard the potential for a long range supply of water. These alternativp""" : rl F y:: 1. City of Lake Oswego Supply (Clackamas RivgY'' 2. The City Portland Supply (Bull Run River:..;d YColun isza fiver Well Field) 3. City of Tigard SuPP1Y (Willamette Divers 4. Regional Supply (Willamette River) An evaluation of each supply alternative is>.pKesented iii adpter 4. Each alternative is ranked under the evaluation criteria and<ajftwtXunerl0:ed alternative is selected. lfSf%tfj/ flfji' .fN fx;.%u%r:ry) 93-0292.101 3-22 a.: }.L F• L• -CHAP -E T R:4 Him C R4 EVALUATION OF ALTERNATIVES General Each of the supply alternatives presented in Chapter 3 have advantages and disadvantages for Tigard. To quantify and assess these qualities, criteria must be established by which each alternative can be evaluated. A wide range of criteria can be used to evaluate the alternatives. This chapter presents eight criteria by which each alternative is evaluated and ranked in comparison to the other alternatives. These criteria are as follows: 1. Opportunity for City Ownership of Supply Sy, 2. Water Supply Agreements and Contract Prs si N„ dect C 3. Required Improvements and Estimate 4. Estimated Cost of Water 5. Water Rights 6. Water Quality t 7. Supply Implementation Tinting l•: '4I},.fy 8. Certainty of Supply lylT7+'O`sU: jyvf Ranking of Alternatives 3' A brief discussion of each alte t tiv preseari fmr the individual criteria. Each alternative receives a rankir hthe~, 'The ranking ranges from 1 to 4, with 1 being the highest ranking and a`le~I'"o~'}wept ranking. The ranking is relative and some alternatives can rrri e raa~ing for the same criteria. Opportunity for City 0 of Treatment and Supply Facilities Certain supply alternauves,give Tigard the opportunity for an ownership interest in the supply system. It is of benefit to Tigard to gain an equity interest in its water supply, treatment and delivery systems. Each alternative will be rated on whether Tigard has the opportunity to gain ownership or an equity interest in an alternative. City of Lake Oswego Supply The City of Lake Oswego has indicated a willingness to discuss the potential formation of a water authority or similar entity with Tigard. It is anticipated that such an institutional arrangement would allow Tigard the 'opportunity for ownership of its water supply, treatment and delivery systems. This alternative receives a ranking of 1. 93-0292.101 4-1 M=Jpjlqi~~ii 11 RIA; City of Portland Supply It is anticipated that prior to the completion of the Phase 2 Plan Portland will not consider changes in the present ownership arrangements of its water supply system. There is presently no opportunity for acquiring an equity interest in the Portland system. Portland has indicated that its consideration of long term supply arrangements will rely on the results of the Phase 2 Plan. Whether Portland will accept joint ownership of its water supply system by others is not known. This alternative receives a ranking of 2. Willamette River Supply City of Tigard System A City of Tigard supply system would be owned by the citizens; fTigard. This alternative receives a ranking of 1. Regional Supply System It is anticipated that the development of a region 4upp y systerriyN'M provide Tigard the opportunity for ownership of these facilities: ative [receives a ranking of G h3f Water Supply Agreements and Contract dv ;'G~ps~•rs:~^ r% Tigard has existing water servicc%a * cents bake Oswego and Portland. A general description of these agr;er isrpreented in Chapter 3. It is to Tigard's advantage to pursue and enter ';>ervice contract that provides the City and a potential provider withAha as re tract provisions. Each alternative is ranked on kw..~.... 3~ . f the existing contract aid renegotiation of the existing agreement with more equitable terra; * e t ranked alternatives are those that provide Tigard the opportunity to ento a aj.pg-w agreement for water service that, among other things, establishes the arrtt; f rater to be supplied, provides the potential for the most equitable contract P r~ ians and provides the potential for Tigard to have direct and substantive input isxtoe rate setting process. City of Lake Oswego Supply The existing agreement for water service between lake Oswego and Tigard allows Tigard to purchase surplus water, allows Lake Oswego to unilaterally establish the cost of water and allows the supply of water to be reduced at Lake Oswego's discretion. Lake Oswego has presented a framework for discussions of a new institutional arrangement by which Tigard can gain water service through ownership of facilities. It is anticipated that such an arrangement will provide Tigard the opportunity to share in water supply and cost decisions through the potential creation of a water supply authority or similar entity. This arrangement provides Tigard the 93-02.92.101 4-2 r OR iiiiijil; opportunity to pursue a favorable water supply agreement. This alternative receives a ranking of 1. City of Portland Supply The existing agreement for water service between Portland and Tigard allows Tigard to purchase surplus water at rates established by Portland. WItile this contract is utility based, water rates are established through calculations based on an average annual water use and peaking factors of past water use periods. Application of certain provisions of this agreement result in variability of water rates and can cause significant changes in these rates from year to year. While Portland has indicated that there is a potential for a renegotiation of the existing contract, or any subsequent contract, there are no indications of anticipated contractual provisions. This alternative receives a ranking of 2. Wiiici ne to River Supply ,.3r:::r;:ry City of Tigard System A City owned supply and treatment system woulc$`{ <>t.::;:! eQue no contact for service. This alternative receives a ranking of 1. Regional Supply System M. It is anticipated that a regional supply system oat,~;allow Tigard the opportunity to participate in the development of a.gr menu,'- bi wgi#er service. Through this process 1t would be expected that Tigard. ecurea contractual framework that provides water to and on a cost of Tigard of s~~e ''alteanative receives a ranking of I. Required Ixn rov ' P ean $s a~q~:st3s~~d Pro,~ect Costs vii 3 X i1 For each alternative u: c ons eration required improvements have been identified and estimated project coselrloped. Project cost estimates include the cost of treatment facilities, pumpixa 4fac~l'ties, transmission mains and any cost related to the construction of new facilities required to bring a long term supply of water to the City. These costs also include costs that Tigard must pay to other providers for water. The estimated project costs for each alternative are presented and discussed in Chapter 3, Supply Alternatives. Each alternative is ranked according to the estimated costs of implementing the supply alternative. All project cost estimates are in 1994 dollars and include the estimated cost of improvements through the year 2020. City of Lake Oswego Supply It is estimated that the project cost of a Lake Oswego supply for Tigard will be approximately $10.4 million. A summary of these costs is presented in Table 3-1. This alternative receives a ranking of 2. 93-0292.101 4-3 R' A i y. MEE= City of Portland SLTply It is estimated that the project cost of a Portland supply for Tigard will be approximately $6.05 million. This alternative receives a ranking of 1. Willamette River Supply City of Tigard System The estimated project cost of a City of Tigard Willamette River water supply system is approximately $35.0 million. This alternative receives a ranking of 4. Regional Supply System The estimated project cost of a regional Willamette River water-,;supply system is approximately $182.0 million. Tigard's estimated share of . cost is approximately $18.2 million. This alternative receives a ranking of Estimated Cost of Water Gz~? <<r; The cost of water has been estimated for each alterng, As presented in Chapter 3, these costs may include operation and maintenance c" ftdebt service for the repayment of bonds used to finance initial " ,,0'1W- Jmprg:.ments, depreciation costs and/or a return on investment cost. Theseesented in the cost per ccf of Z, water and represent the estimate t of w4ey in. , b94 dollars. If possible, consideration is also given to thrte cosh, of water to the year 2020. Each alternative is ranked accor16 . its,57ctated`costs of water. City of Lake Oswego Sub M As i 'W The estimated cost eb q ter fo a IA&e Oswego supply is approximately $1.06 per ccf. Based on the esti ff s pr~.. rated in Chapter 3, the estimated cost of water may decline over time as the i see expands and debts are retired. This alternative receives a ra-ildng of 1. F City of Portland Supply The estimated cost of water for the Portland supply is variable. It may range from approximately $0.80 to $1.05 per cef. No determination of water costs beyond 1999 have been made. Whale the lower limit of this cost range is the lowest estimate of probable water costs, the potential for variability of costs and the uncertainty of future water costs raises the relative ranking of the other alternatives. This alternative receives a ranking of 1. 93-0292.101 4-4 MEN 1111' fiN IBM= M, HFAM!, Willamette River Supply City of Tigard System The estimated cost of water from a Willamette River supply owned by Tigard is approximately $2.00. This alternative receives a ranking of 3. Regional Supply System The estimated cost of water from a regional Willamette River supply is approximately $1.08 This alternative receives a ranking of 2. Water Rights Each alternative has water rights issues associated with thee livery of water to Tigard. The inability to use or acquire water rights may xrialrn alternative unfeasible. Should Tigard develop a new water supply..", rtclep tly, water rights issues become very important. When purchasing wa&rfrom oiW.water purveyors, the water rights issues become a matter of evalua g the provided 'ability to meet the contractual obligations to Tigard. Each alternatl-76 11,-%ranked on this issue when comparing water supply alternatives. City of Lake Oswego Supply yi: 4iy?iY::Y?,L., .7,.• The City of Lake Oswego has watephts once Clackamas and Willamette Rivers. Lake Oswego has used these t-€u 1 lus water to Tigard. Lake Oswego pp YAP has indicated the willingnessns ietential of allowing these rights to be used by an institutional entity >lLake Oswego and Tigard in a water supply authority or samilf alternative receives a ranking of 1. As' City o Portland S Tr Mfr: The City of Portland has"; uSi~ve water rights to the Bull Run Watershed and additional rights for the Coittabia River Ground Water Well Field. Portland has used these right-- to supply water to wholesale users. Portland is awaiting the outcome of the Phase 2 Plan prior to action on the further use of these rights or acquisition of nz w rights such as on the Columbia River. This alternative receives a ranking of 2. Willamette River Supply City of Tigard System The City of Tigard has no water rights on the Willamette River. This alternative receives a ranking of 4. 93-0292.101 4-5 son= Regional Supply System The Tualatin Valley Water District has water use permits on the Willamette River that could potentially be used as a source for a regional treatment and supply system. Tigard may gain access to these rights through participation in a regional water supply entity. There are some issues related to the ability to use these rights that remain unresolved. This alternative receives a ranking of 2. Water Quality All of the existing developed supply alternatives presently meet existing State and Federal water quality requirements and would be expected to meet any future requirements. Any development of a new Willamette River source will also meet water quality requirements. All of the alternatives receive a nankin` -,d-`1 .1. Supply Implementation Timing City of Lake Oswego Supply A>.. It is estimated that this supply alternative could be`'ational in approximately 3 to 5 ears. This alternative receives a r of 2. »rN, s City of Portk uzd Supply ~<< =a='?' It is estimated that this supply oei ~'~ive coWd. be operational in approximately 1 to 3 years. This alternative recei:,a g..of`*,1'• >f:>;:r>:;;<<>:: Willamette River S «:f<>,_<<,<,. City of Tigard Syster .,.v It is estimated that this s.J!i~lternative could be operational in approximately 7 to 12 years. This alternative 1eives a ranking of 4. Regional Supply System It is estimated that this alternative could be operational in approximately 5 to 10 years. This alternative receives a ranking of 3. Certainty of Supply Each alternative is capable of providing of water to Tigard to meet its estimated 2020 needs with varying degrees of certainty. A discussion of the quantity of available supply and conditions of this supply is presented with the description of each alternative presented in Chapter S. Each supply alternative is ranked on its relative 93-0292.101 4-5 NOR= certainty of meeting Tigard's water needs as presented in Chapter 2. For developed systems, certainty of supply is the provider's expressed willingness to work with Tigard in developing a firm iong term water supply for the City. Alternatives with the greatest potential to provide a firm long term water supply to Tigard rank the highest. For undeveloped supplies, certainty of supply relates to the potential for successsf~,W development of the supply. Alternatives with the greatest potential for providing Tigard certainty of supply are ranked the highest. City of Lake Oswego Supply The Lake Oswego analysis of water service to Tigard concluded that expanded bake Oswego facilities would have adequate capacity to supply both cities to the year 2020. The analysis also presented a documentation of required improvements and provided a framework for discussions that offer Tigard control of its water supply availability. This alternative receives a ranking of 1. My of Portland Supply f ' •'C:j~:Lv'v:j::: f•A':•, v~. tip,. The City of Portland has not indicated a firm comnut#iYezt to suPsrt ater to Tigard. This alternative receives a ranking of 2. t F4 Willamette River Supply City of Tigard System <'i'h < " }f } A City of Tigard treatment facility 4?the Willett would be designed to provide adequate supplies to meet Tigard}}D estizhated peak day demands. Issues related to raw water availability red #ie ra o#` this alternative. This alternative may'if'~ F>.'jf „~c•,`,,,~.`n'"jrr receives a ranking of 4. }Y , Regional Supply Syste.m "g. A regional supply syste t th : Mamette would be designed provide adequate supplies tc meet ard' 2Q rZeak day demands. The certain of this supply is less then for developed supply sgr€-ns. The availability of existing water use permits, however, improves the ranking of this alternative. This alternative receives a ranking of 3. Ranking Summary and Conclusion A summary of the evaluation criteria and a tabulation of the evaluation ranking of each alternative is presented in Table 4-1. The City of Lake Oswego supply alternative receives the highest total final ranking. The City of Portland supply alternative ranks second. A regional supply system on the Willamette River is ranked third and a City of Tigard treatment facility on the Willamette ranks fourth. Recommendations for the implementation of the Lake Oswego supply alternative are presented in Chapter 5. 93-0202.101 4-7 s, 16 Table 4-1 Summary of Evaluation Criteria and Tabulation of Rankings v:} ;•i:,r::; ~ :.?fir.:;;s:?~:;.:;!;: :n:::::•, r: rt. ;::-;:!;:cis,;:;}:~,.::;p:;: n•::n::•::., :r;:;;t :t . ~:osso?•.•;a.:..2+i} f:k;r.',, tv;-}?++:i<•:p}}:•s?xi•::::; :::r+' .,.s. :5~:•i:'::i;•xt+t;n?.;n:. :::t;,,..>.. :..u;::s:•?s?s?:a>£??;'t:.. gem= ..u :n Y...... nAwn:t.;: n:;t: v::..uw: w::::. n:;.;:;•?v. v.. nr: n'•?: J:J::::r.. ♦ }n .................v........ n............:::•};U.Wii+ -.yJ}::::: -:}.:.rv:: ;4 n. .:.v ::n .v,.~:a:SCi?? :}i' ..:SV.::.::: r:::::: ttC;~ii: 'p': •:C.v i.i}•.~i.r : ;i 'r ~}Y~ r~....:v.+.,:C'{SS..:..}w•\. .:.n x:. ~q'~~(y~n•. : ~lYiJlL4.i:[::•i:t•J::.:?::::•:'•?ri?}:: ::?<:::ti;j:}::JS;:y<S•i4.`.:y::y:::::::•:;.vyw::4,..}..}}}.::.:}..y.r; ..........:......:..:...~.8 6i~iYli3 -:i.;r..;.:;}ri•;t.:;::o:..r.:...::..}r' ~ ~::::•n.....•:o n..~ v: ,~.:::::::::!r:os}siJ:xti.i;}s•?:::?;i::: ~ :.i: s}.; t,}} it ..:n..... ........'t 1........ v::::::::• .n n........v n... }.v..-n• v :.:.vn ........?.}}::•p'C}.;C... C,. n........ n. .:r.. n\vv. :.r... n ..uu.... n... n...u .::.:v............ n............... : \ v....... r.... n:v:...:. nv...:..... Y : .n..:... .r nv.. 4. nu.................. .............r ....:.::t;:S{•?:•:524::.......v.................... r:::..:..n..x .v.v..... n... n.n.,. }n....:.:..•.:.. . ...vn u. n...u n.:..........., . . . i;it;S:S•J;•}:t•}}Ji??isv}?}::::5::::'.•:::::<::Sf::::v ..::....n... n n........ n...:. nt. u..:•.:.:. , . . Y.v: .,}.}'v}}nv: w:: xx: n....•,::! v ..............:nu..v.{w. r v: -nJ::: v: n-:::::S~i:::nv:: • :v; •w::: . n::•..,. r: v ::;v:::::::::nvn:•; jt';: •?'-:<.}}n••...., u... , v..... ' v::.:: ~ f ~~i:tt• . .............C n..... . ..J.. n•v?:: n•::: n4 :::::.v.v:; :•v. ~ . n::A..w::: n:v:•}:v}'. ..5 ........::................n -::::::::•:.;t•:n}:.}:-::;: .::::::::::..::nv::::::::::: w:. vai:s:•;;J:•?~ t•4:csv+. n•:5::: ~;,r,,r,:4< ................::..,.:sr:: n•:.,:....-::::.:................. n•...r~..::~.. ...........::.J}~..::..}ti:: ii:::c:;:;;::;;;::.?-:.; ~ wi s}: •1aE''ti ~~,,,,44 a j~~ dA;7t:J } r?J: r.::::::•S:f:'::: Opportunity for City Ownership 1 2 1 1 of Supply System Water Supply Agreements and 1 2 1 1 Contract Provisions Required Improvements and 2 1 3 Estimated Project Costs Estimated Cost of Water 1 2 Water Rights 4 2 Water Quality 1 1 $YM1 ri;tC Supply Implementation Timing 21 ::.;1r`" . 4 3 Certainty of Supply 2 4 3 Total Points 12 22 16 2 4 3 Final Ranking ; 1?~J S?.;tit jf}J~t: rC•i Si::C ' ;:i Jvv~ yi}ice 4j.. ,r i 93-0292.101 4-8 110 P . ~ - . I I . I . I I MMIM lam= - . - _ _ + _ " • _ .~.t , , :t i..It - . - . . - J - :S:- . ' t Y - . - + . . . _ - _ - _ _ - - - - < r. r t - - - r - { - ' - - . - i , ' i ' . I" - f t - - tr is t e t . . t. _ , .a - r , . , . . - _ _ - a ~ , L 1, I , . . I . a I ~ - M - m , . ~ = M M L , M . . ~ - m:. . ~ I - I- ~ t~ I , - I ~ , ~ ~ 1 , , mg~~ " I a' CHAPTER 5 CONCLUSIONS AND RECOMMENDATIONS Conclusions It is recommended that Tigard select the Lake Oswego supply alternative as Tigard's long term water supply. Tigard should proceed immediately with the steps needed to develop this supply. Negotiations should begin immediately with Lake Oswego to develop agreements. Tigard's water system master plan should be updated and a financial plan prepared concurrently with these negotiations. Interim water supplies are needed to supplement existing supplies as the recommended supply alternative is developed. Discussions should be held with Portland and the Tualatin Valley Water District for these interim water supply needs. Recommendations It is recommended that Tigard proceed with the follawrig items 1 through 11 should proceed immediately and concurrently and be concluded ix >'`approximately one year. Items 12 and 13 should proceed immediately :crdcmtinue indefinitely. 1. Formally adopt this plan and its rec ommendatioz s : 2. Incorporate this plan into the City's Corfpsive Plan. 3. Proceed with negotiations wtftae Cityof;Lake Oswego to develop a long term supply of water. There btYatio s.;shou consider institutional, financial, operational and other reIe?t# crates. 4. Develop and exeiute emts `vith Lake Oswego upon successful completion of negotiatioa~4 5. Prepare a comprelevevs~ater system master plan update. The plan will identify those systeri ii: rovements required for implementation of the Lake Oswego supply as well as internal system improvement requirements. Data from this plan will be used in the financial plan. 6. Prepare a financial plan for the City water system considering the financial requirements of the Lake Oswego supply, interim water supply costs from Portland and the Tualatin Valley Water District until completion of the Lake Oswego supply expansion, internal system capital improvement requirements, operations and maintenance costs, and other items as appropriate. 7. Proceed with the n6commendations of the financial plan including authorization for and sale of bonds and water rate adjustments. 8. Review existing operational conditions with Lake Oswego to establish arrangements that allow Tigard and Lake Oswego to maxi ndze the available water supply prior to the completion of the proposed supply expansion. 5-1 9. Review with Portland Tigard's interim water supply needs during the period that the recommended long term supply alternative is being developed. These discussions should include: ® A. An immediate review of transmission piping configuration and capacities to confirm the actual capacity of the Bradley Corner connection. B. A review of water use patterns-and system operations to provide the most economical supply of water. C. A further review of the impacts on anticipated water costs from variations in system operations. D. A review of the existing agreement for wate&.tservice. This review should include a discussion. of the pote4al cost impacts of an interim supply arrangement and the; t4WU al benefit to Portland for Tigard's ultimate reduction in Porflancfir ter use. 10. Review with the Tualatin Valley Water Distxt Tigard's intern water supply . needs. The discussions should include: A. Review the potential for an agree rrt+ttf> Or water service that provides Tigard the opM444Y to p srchase surplus water to supplement existing supopli"' 4e the recommended long term supply alternatae;is developed; ` B. Determine€i e ne improvements to provide an adequate interim wafd1' i:0" ?Ytble the Lake Oswego supply is developed. C. Review `po2tia1`onection configurations of this interim supply idditior} . pressure, flow, supply and the cost of service associated h such an arrangement. D. Review costs associated with the development of this interim supply and assess its further consideration. 11. Maximize the use and capacity of City of Tigard ground water well supplies. These supplies are limited, however, additional well capacity may be available to supplement existing supplies as the recommended long term supply alternative is developed. 12. Participate in the current regional water supply planning efforts, the Phase 2 Regional Water Supply Plan, and in the subsequent implementation of that plan and other plans that may provide for Tigard's water supply needs beyond the year 2020. 13. Periodically review the findings and conclusions of this supply plan update to provide guidance for the supply of water to the City beyond the year 2020. J-2 Emmils- I FM am I 1, ~ 1 ME= = I 11 ~ I - . .1 I 43 f 1 - . - _ _ . . S _ `i. } i S ,l . f . . - - - - - ! , t t . . . . a . . t . - :I ♦ i. _ . ilr, i - • { ! j t . t i ! ♦ - - _ , 1 . '1 .y .e - - _ - 1 t i 2 i.. •l ,1 1J . - - . j S . . . _ - - s } } i i . - A 4 . L n . . S _ i . 7 11 .J _ - r. . t f . s ♦ - " i~ - - , I llili-::~ " - * IN i ~ ~ I i M-11M I ~ 11 I 11 ~ l~~1!111~l'i'll! 1, = Milmommill: momms, = i = 4: ii REFERENCES City of Beaverton, Water System Facility Plan, Brown and Caldwell, April 1991. City of Lake Oswego, Water System Master Plan and Executive Summary, CH2M Hill, June 1988. Draft Task 7 Technical Memorandum, Phase 2 Regional Supply Plan, Montgomery Watson, February 1994. Tigard Water District 5-Year C1P, EES, June 1993. Tigard Water District and City of Lake Oswego, Agreement for Water Service, July 1983. Tigard Water District said City of Portland, Agreement for r Service, February 1983. Washington County Supply Line; Capacity Studiesi the Tualat'alley Water District, EES, September 1993. yY'+6ft } n Water Source Options Study-City of Portland Bureau #Water Works, CH2M Hill, February 1992. e mber 1986. Water Supply for Bull Mountain Area, Gil. ' Water Supply 8a Water Distribuon fegardyy' ter District, EES, May 1990. 4 H Wolf Creek Highway Water Dis a Plan, EES, October 1990. F fQ ,~Y 4. a 93-0292.101 - 1 - =mm . . _ , • - - . ' ' , - - _ : t _ _ _ _ ' .i w _ - . '•i - . - - , ' L L . 1 " - - r .j''; . . + - - 't:. " r' •i t: - - - I, a - . ' .t r- t . _ t" mmm . . , k t ^ . j'' • - - ~i' " - w _ - 'i _ y" . a ' 1 :'li.: r., - I - - - - - - Vii. _ _ _ a: . _ , i , :r •s ri - - - - - _ -.I• - _ _ i _ - - ~y- ' _ _ ~t' ; •i''' . - _ . f.. " , - - _ . - - 1. • - - . _ _ - - :f _ - .1 - . . i." - _ a'. , . - ',t• - - _ _ - _ - , .i - - _ - ''.r , - - - - i . rt ; i.. { •S' . ~ ' - - - - .a... .f' " - _ - _ - - - fit.. - „ - - - ~ - "7 ; t' " ~Ir`I il, - ) . 'I= , , . ~ z . . " - .A.. - . . . : . . : , , ~ . "I - - , ~ . , I 2r. ~l IN -1 i - . . : - . , - - - - - - . INN - . - m " - ~ m . ~ , m I w -am , - ~ - I !!I I ~ ~ III I MBM I I II ~ I I= I ~ 6 I III All, Final Report a 2 - - for . and • service. . and Without 'T2g Vuation of water Serve prepared for Oswego City. of Laie 7' '11 by HLLL spy NNo 9 Contents Page Summary Report S-1 Introduction S-1 Summary of TM-1 S-1 General S-1 Population S-2 Water Demand S-2 Summary of TM-2 S-6 General . S-6 Schedule for Improvements S-6 Cost Estimates S-9 Summary of TM-3 S-11 General S-11 Operations and Maintenance (O&M) Costs S-11 Capital Costs ..S-11 Cost Comparison S-16 Technical Memorandum No. 1 1-1 Introduction 1-1 Population 1-1 Water Demand 1-2 Technical Memorandum No. 2 2-1 Introduction 2-1 Schedule for Improvements 2-1 Cost Estimates 2-5 Scenario 1 2-5 Scenario 2 2-8 Technical Memorandum No. 3 3-1 Introduction 3-1 Operation and Maintenance (O&M) Costs 3-1 Allocation of O&M Costs for Scenario 2 3-2 Estimated Value of Existing Capital 3-6 Allocation of Existing Capital 3-11 Allocation of New Capital for Scenario 2 3-13 Cost Comparison 3-13 Initial Rate impacts 3-18 Summary and Conclusions 3-24 i gill; 1E ffffmal Tables Number Page summary Report 1-1 Population Projections for Lake Oswego and Tigard S-3 1-2 Water Demand Projections for Lake Oswego and Tigard S-5 2-1 Revised Capital Costs for Scenario 1-Lake Oswego Only S-10 2-2 Revised Capital Costs for Scenario 2-Lake Oswego plus Tigard S-12 3-1 • Estimated Annual O and M Costs, Scenario 1-Lake Oswego Only S-13 3-2 Estimated O and M Costs, Scenario 2-Lake Oswego plus Tigard S-14 3-4 Allocation of O and M Costs to Lake Oswego and Tigard Scenario 2-Lake Oswego plus Tigard S-15 3-6 Allocation of Existing Capital, Scenario 2-Lake Oswego plus Tigard S-17 3-7 Allocation of.New Capital, Scenario 2-Lake Oswego plus Tigard 5718 3-10 Present Worth Costs of Water Supply -Scenarios, Lake Oswego and Tigard S-19 3-15 Comparison of Residential Customer Water Rates for Regional Providers 5-23 Technical Memorandum No. 1 1-1 Population Projections for Lake Oswego and Tigard ' 1-3 1-2 Water Demand Projections for Lake Oswego and Tigard 1-5 Technical Memorandum No. 2 2-1 Revised Capital Costs for Scenario 1, Lake Oswego Only 2-6 2-2 Revised Capital Costs for Scenario 2, Lake Oswego plus Tigard 2-9 Technical Memorandum No. 3 3-1 Estimated Annual O and M Costs, Scenario 1-Lake Oswego Only 3-3 3-2 Estimated O and M Costs, Scenario 2 'Lake Oswego plus Tigard 3-4 3-3 Allocation of O and M Costs to Ease and Maximum Day Scenario 2-Lake Oswego plus Tigard 3-5 3-4 Allocation of O and M Costs to Lake Oswego and Tigard Scenario 2-Lake Oswego plus Tigard 3-7 3-5 Estimated Depreciated Replacement Cost of Existing Capital Scenario 2-Lake Oswego plus Tigard 3-8 3-6 Allocation of Existing Capital, Scenario 2-Lake Oswego plus Tigard 3-12 ' 3-7 Allocation of New Capital, Scenario 2-Lake Oswego plus Tigard 3-14 3-8 Present Worth of New. Capital, Scenario 1 ! Lake Oswego Only 3-15 3-9 Present Worth of New Capital, Scenario 2 -Lake Oswego plus Tigard 3-16 3-10 Present Worth of Water Supply Scenarios, Lake Oswego and Tigard 3-17 3-11 Impacts of Interest Rate and Escalation Factor On Present Worth Costs for Lake Oswego 3-19 i 3-12 Estimated Rate Increases for Lake Oswego, Scenario 1-Lake Oswego Only 3-20 ii 'MOM Tables (cont.) Number Page 3-13 Estimated Rate Increases for Lake Oswego, Scenario 2- Lake Oswego plus Tigard (20-year Buy-In) 3-21 3-14 Estimated Rate Increases for Lake Oswego, Scenario 2- (Lake Oswego plus Tigard (Lump Sum Buy-In) 3-23 3-15 Comparison of Residential Customer Water Rates for Regional Providers 3-25 e Figures Number Page Summary Report 1-1 Master Plan (1988) and Revised (1994) Population Projections S-4 2-1 Water Treatment Plant Capacity Requirements-Scenario 1 (Lake Oswego only) _ S-7 2-2 Water Treatment Plant Capacity Requirements-Scenario 2 (Lake Oswego plus Tigard) • S-8 S-1 Projected Rate Impacts for Lake Oswego (20-year Buy-In) 5-21 S-2 Projected Rate Impacts for Lake Oswego (Lump-Sum Buy-In) S-22 Technical Memorandum No. 1 1-1 Master Plan (1988) and Revised (1994) Population Projections 1-4 Technical Memorandum No. 2 2-1 Water Treatment Plant Capacity Requirements-Scenario I (Lake Oswego only) 2-2 2-2 Water Treatment Plant Capacity Requirements-Scenario 2 (Lake Oswego plus Tigard) 2-4 i g 1 !b r - -Ilk Summary Report Evaluation. of Water Service Wrth and "rth®ut Tigard.. IIM~ Summary Report Introduction The purpose of this report is to summarize the results of three technical memoran- dums that collectively present the evaluation of water service with and without Tigard. The subjects of the three technical memorandums are as follows: ® Technical Memorandum No. 1 - Revised Population and Water De- mand Projections for City of Lake Oswego and Tigard ro Technical Memorandum No. 2 - Revised Capital Costs for Water Supply, Treatment, Pumping and Transmission, Water System Master Plan Scenarios 1 and 2 ® Technical Memorandum No. 3 - Cost Analysis of Water Supply Sce- narios This report provides a brief summary of each technical memorandum (TM). Addi- tional details and information can be found in the TMs. The two water supply alter- natives evaluated are the two alternatives developed in the City of Lake Oswego 1988 Water System Master Plan. The two water supply alternatives are defined as Scenar- io 1-Lake Oswego Only, and Scenario 2-Lake Oswego plus Tigard. Scenario 1 assumes water service to Tigard is discontinued immediately. Scenario 2 assumes facilities are expanded to serve all of Tigard's water needs through the year 2020. The table and figure numbers referenced in this summary report are the same as the numbers used in the technical memorandums to provide easy reference to the more detailed information found in the technical memorandums. Therefore, the table and figure numbers used in this summary report are not in numerical sequence. a Summary of TM-1 a • ' General The purpose of TM-1 is to present updated population and water demand projections for the City of Lake Oswego and Tigard. The updated projections will be used in this project for determining both the timing and capacity requirements of capital improve - meets. Demand projections will be utilized to estimate future operation and mainte- S-1 A-q _ I , ~~i ill III ? 05112, a City of Lake Oswego July 29, 1994 Swvnary Report Evaluation of Water Service With and Without Tgard nance requirements and to allocate costs of improvements -to Lake Oswego and Tigard for Scenari6'2. Population Population projections for the City of Lake Oswego's Urban Service Boundary (USB) and Tigard have been updated since completion of the Water System Master Plan in 1988. Population projections for the area within the City of Lake Oswego's USB have been updated by Metro and are presented in Table 1-1. Population projections for T`igard's water service area have been recently updated by Murray Smith & Asso- ciates and are shown in Table 1-1 also. The City• of Lake Oswego's USB includes several independent water districts *and areas outside the current City Limits which are served directly by Lake Oswego, buy water from Lake Oswego or have another source of supply. The population estimates for Lake Oswego include all area within the USB and therefore include population within the other water districts and areas outside the current City Limits but within the USB. The 1988 Water System Master Plan assumed Lake Oswego would even- tually supply all the water requirements for the area within the USB, including the. water requirements of the independent water districts. The combined population for Lake Oswego and Tigard in the year 2020 is projected to be 101,328. The 1988 Water System Master Plan presented a combined population of 100,533 in the year 2012. The revised population estimates indicate a lower pro- jected growth rate over the next 25 years. The revised year 2020 population projec- tion of 49,628 for Lake Oswego is consistent with previous estimates of the ultimate population within the USB (approximately 50,00. The year 2020 population for Tigard most likely does not represent ultimate values since the Tigard service area could potentially grow beyond existing boundaries. The population projections are ' presented graphically in Figure 1-1. Water Demand Water demand projections for Tigard have been updated by Murray Smith & Associ- ates and are presented in Table 1-2. Water demand projections for Lake Oswego are also presented in Table 1-2. The Lake Oswego projections are based on the per capita demand projections and peaking factors utilized in the 1988 Water System Master Plan. i • S-2 d xj 1 Table 1-1 Population Projections for Lake Oswego and Tigard Po ulation 1988 Estimates 1994 Estimates Year Lake Os ® Tigard Total Lake Ow o Tigard Total 1987 29,342 24,050 53,392 y 1989 31,334 26,936 58,271 35,725 1992 34,323 31,266 65,589 37,260 - 1994 36,298 32,785 69,083 38,283 33,500 71,783 1995 37,286 33,545 70,831 38,795 34,533 73,328 2000 42,225 37,342 79,567 40,988 39,700 80,688 2005 47,163 41,140 88,303 43,181 42,600 85,781 2006 48,151 41,899 90,050 43,620 43,180 86,800 2010 52,102 44,937 97,039 45,374 45,500 90,874 2012 54,077 46,456 100,533 46,286 46,740 93,026 2015 47,219 48,600 95,819 2020 49,628 51,700 101,328 Legend: Lake Oswego - Area within Urban Services Boundary Tigard - Tigard Water District Total - Lake Oswego plus Tigard 1988 Estimate - Source: 1988 Water System Master Plan 1994 Estimate - Sources: Metro Estimates for Lake Oswego Murray Smith & Associates Estimates for Tigard 4 4 - t ' _Z l S-3 IS 11,11, ~ill,il • M:~ Figurel •1 Plow (198R} and Revised (1994} Population projections master 120,0W 100.E -Lake Oswego-1488 _-*--Lake Oswego+Tiga`d-1488 80'm _ Lake Oswego-1994 is Proledons Lake Oswego+Tigord-1994 c ~ 60,000 woo 40,000 20,000 2010 2015 2020 - ~ qS5 1990 1495 2000 2005 feat • 7/2&V S-4 I mass= Table 1-2 Water Demand Projections for Lake Oswi ego and Tigard 1954 Estimate 1988 Estimate Tigard Lake Os o Total Total Year ADD MDD ADD IVIDD ADD OADD BADD 198719.5 1989 5.64 13.0 5.6 13.0 21.3 1992 5.89 13.6 5.9 13.6 23.9 1994 5.00 11.5 6.05 14.0 11.0 25.5 25.2 1995 5.17 11.9 6.13 14.2 11.3 26.0 25.9 2000 6.00 13.8 6.48 15.0 12.5 28.8 29.0 2005 6.40 14:8 6.82 15.8 13.2 30.5 322 2010 6.80 15.7 7.17 16.6 14.0 32.3 35.4 2012 7.03 162 7.31 16.9 14.3 33.1 36.7 2015 7.30 16.8 7.46 172 14.8 34.0 2020 7.80 17.9 7.84 18.1 15.6 36.0 i Notes: ADD - Average Day Demand (mgd) MDD - Maximum Day Demand (rngd) Source: Tigard - Murray, Smith & Associates • Lake Oswego -1988 Master Plan per capita demands s • .t S-5 HIEM 0012=110, Ciry of Lake Oswego July 29, 1994 Summary Report Evaluation of Water Service With and Without Tigard F-Mi YAM The information presented in Table 1-2 indicates the ultimate demand projection of 36 million gallons per day (mgd) is nearly the same as was used in the 198$ Water Sys- tem Master Plan. However, the ultimate water demand is not projected to occur until the year 2020, a lag of 8 years compared to the 1988 Water System Master Plan projections. In the context of this study the term ultimate demand applies only to the year 2020 demand since population projections for Lake Oswego and Tigard do not extend beyond that date. Summary of TM-2 General The purpose of TM-2 is to present revised capital costs and schedules for water sup- ply, treatment, pumping and transmission improvements for the alternatives presented in the 1988 Water System Master Plant: Scenario 1 (Lake Oswego only) and Scenario 2 (Lake Oswego plus Tigard). The revised capital costs and schedule will be used to develop the economic comparison of the two scenarios. The capital costs presented in this TM include only the water supply, treatment, pumping and transmission compo- N nents of the original 1988 Master Plan, and do not include all components of the City of Lake Oswego's Capital Improvement Program. The capital costs shown are for only those components that will be impacted by not continuing full service to Tigard (Scenario 1) or by continued. service to Tigard (Scenario 2). Schedule for Improvements The population and water demand projections presented in TM-1 were used to update the schedule for proposed improvements to expand water supply capacity. Figures 2- 1 and 2-2 present the updated water demand projections and the proposed timing for capacity expansions. Figure 2-1 presents the water treatment plant capacity requirements for Scenario 1, Lake Oswego only. As shown in Figure 2-1, the water treatment plant and associated facilities will require expansion in the year 2010 based on a current capacity of 16.1 mgd. An expansion of the water treatment plant will increase the capacity of the plant by an increment of 5.4 mgd, or a total capacity of 21.5 mgd. Figure 2-2 presents the water treatment plant capacity requirements for Scenario 2, Lake Oswego plus Tigard. For Scenario 2, the water treatment plant and associated facilities will require expansion immediately to begin providing all- the needs of both S-6 pr IN III I I Rom gfgut® 2-1 0 ov"y) R®quiterrn®n1s - Sc®natic 1 tlok® ~s~+~g - Water It®®tt~en4 PI~a1t 1;~pctcily 40 35 30 - W-rp F pansion - . + . -----Lake swego CD 000 - swego + Ttgaid 25 apacity F 20- 15~ 10 u, ® oewe9a 5 2015 2Q20 2005 955 2010 2000 0 1990 1995 YOGI s~2a~ S-7 ligipp'll Ing 1~jgjl 11 Pin liql1ijill 110 liffit 11 2 Sol .r- plus Sigcod) ~GItY quirer~~~t~ ~e~c®s Tr~~l~~~~ plslr►t CO - ~ £xpanxton ~ • 4fl ° ° • - - ego ~'€`.~xqd 35 ® O: '000 Oswego k •"gotd 30 Lake 0e9 'P~nston - - COPoctiY 1 of xttn~ ' 25 , 20 15• ~ 10 2015 5 2010 2020 • 2 sr OM 1995 0 Y~~s 1990 1985 SA City of Lake Oswego July 29, 1994 Summary Report Evaluation of Water Service With and Without Tigard Lake Oswego and Tigard. The proposed expansion would increase the capacity of the existing water treatment plant to 32 mgd, its original maximum design capacity. As discussed in the 1988 Water System Master Plan, 32 mgd is equal to the maximum water withdrawal amount allowed in Lake Oswego's water right permit on the Clackamas River. In the year 2009 the MDD will exceed 32 mgd and additional capacity will be required. As presented in the 1988 Water System Master Plan, a 5- mgd expansion to treat Willamette River water is assumed to provide peak water needs beyond 32 mgd. The expansion proposed for the year 2009 was assumed to be 5-mgd to allow direct use of information developed during the 1988 Water System Master Plan regarding pumping and transmission. Cosec Estimates Cost estimates were developed using the information in the 1988 Water System Mas- ter Plan. Where applicable, cost estimates were adjusted using the Engineering News Record Construction Cost Index for Seattle of 5747 (May 1994). Cost estimates for raw water intakes, pump stations and water treatment were revised based on new assumptions resulting from changes since the 1988 Water System Master Plan was completed. Changes to the 1988 Water System Master Plan recommendations includ- ed updating river intake construction costs to account for more- stringent fish screen requirements; improvements at the water treatment plant to provide additional clearwell storage to meet more stringent disinfection contact time Tequirements; im- provements at the water treatment plant to store and feed chemicals for control of lead and copper corrosion in building plumbing; and a revised water treatment process for treating Willamette River water during the summer and fall of the year. Revised cost estimates are presented for the following cost components: ® Pipeline Improvements for Finished Water Transmission Pipeline Improvements for Raw Water Transmission ' ® Finished Water Pump Station Improvements 0 Raw Water Pump Station Improvements N Water Treatment Plant Improvements Scenario I Lake Oswego Only Scenario 1 assumes Lake Oswego will not supply all of Tigard's water needs and will 9 expand to meet only the projected water requirements for the area within the urban services boundary (USB). Table 2-1 presents the revised capital costs for Scenario 1. The "project numbers" shown in Table 2-1 coincide with the project numbers used in the 1988 Water System Master Plan for Scenario 1. One new project has been added to Scenario 1, improvements for sludge handling, chemical feed and .storage, and S-9 an 91 all I IN u~= Table 2-1 Revised Capital Costs for Scenario 1 Lake Oswego Only PROJECT COST NO. PROJECT DESCRIPTION YEAR $ Pipeline Im rovements for Finished Water Transmission: 9 12,000 LF of 24-inch; Lake Oswego WTP to Pacific Hwy. and Laurel St., 2010 1,705,000 parallel to east. 24-inch Pipollne Improvements for Raw Water Transmission: 13,600 LF of 24-inch; Exst. Clackamas River Intake & P.S. to Lake 11 Oswego WTP, including Willamette River crossing and 500 LF of 24-inch; 2010 3,433,000 New Intake and P.S. to Exst. Raw Water Pipeline Finished Water Pump Station Improvements: - ' 13 WTP High Service Pumps; 4 - 600 hp - 4,730 gpm capacity pumps 2010 1,164,000 Raw Water Pump Station Improvements: 18 New Clackamas R. Intake and P.S.; 14.1-mgd capacity 2010 2,700,000 " Water Treatment Plant Improvements: new Improvements for Sludge Handling, Chemical Feed and Storage, and 1996 1,594,000 Clearwell Baffles to increase CT 19 Expand Exst. WTP to 21.5 mgd capacity 2010 2,045,000 TOTAL - SCENARIO 1 12,641,000 NOTES. (1) Project numbers are from the 1988 Water System Master Plan. (2) ENR CCI 5747 (Seattle Area), May 1994 (3) Project Cost = Construction, Contingencies, Engineering and Administration i Pr S-10 l, lip t 11 IN! 1 11 11: 01111111 City of Lake Oswego July 29. 1994 Summary Report Evaluation of Water Service With and Without Tigard clearwell baffles for CT. This new project and the others listed in Table 2-1 are described in -more detail in TM-2. The total cost of improvements required for Sce- nario 1 is estimated to be $12,641,000. The costs shown in Table 2-1 include 35- percent for engineering, contingencies, and administrative costs. Scenario 2 Lake Oswego plus TYgard Scenario 2 assumes Lake Oswego will supply all of Tigard's water and will expand facilities to meet the combined or total demands of the two service areas. Table 2-2 presents the revised capital costs for Scenario 2. The project numbers shown in Table 2-2 coincide with the project numbers used in the 1988 Water System Master Plan for Scenario 2. The projects listed in Table 2-2 are described in more detail in TM-2. The total cost of improvements required for Scenario 2 is estimated to be $30,936,000. The costs presented in Table 2-2 include 35-percent for engineering, contingencies, and administrative costs. The total costs for Scenario .2 would be r shared by Lake Oswego and Tigard. Summary of TAI-3 General The purpose of TM-3- is to present the costs to Lake Oswego customers for each of the two alternative supply scenarios and to evaluate whether potential investments by the City to serve Tigard are of net benefit to the City. The revised capital costs and schedules developed in TM-2 were used for developing the economic comparison of the two supply scenarios. ' Operation and Maintenance (O&M) Costs Operation and maintenance costs were estimated for each water supply scenario, the O&M costs for Scenario 2 were allocated to Lake Oswego and Tigard using a cost of service approach, and the present worth cost of the O&M was calculated. Tables 3-1 and 3-2 present the estimated O&M costs for the two scenarios.. Table 3-4 summariz- es the allocation of Scenario 2 O&M costs to Lake Oswego and Tigard. 4 Capital Costs The value of existing capital assets was estimated using the depreciated replacement value method. The depreciated replacement cost for existing capital assets was then allocated to Lake Oswego and Tigard using a cost of service approach. The amount S-11 WIN Table 2-2 Revised Capital Costs for Scenario Lake Oswego plus Tigard PROJECT - COST NO. PROJECT DESCRIPTION YEAR S Pipeline Im rovements for Finished Water Transmission: 9 12,000 LF of 36-inch; Lake Oswego WTP to Pacific Hwy. and Laurel St., 1996 3,291,000 parallel to exst. 24-inch 2,600 LF of 30-inch; Pacific Hwy. and Laurel St. to State and Ladd St.; parallel to exsL 24-inch 800 LF of 24-inch; Quarry Rd. - Lower Boones Ferry Rd. to Douglas Way _ 10 6,100 LF of 30-inch; North Shore Rd., Middle Crest Rd., and State St. - 2003 1,072,000 from State St. and Ladd St. to Iron Mtn. Blvd. and Fairway Rd. Pipeline Improvements for Raw Water Transmission: 13,600 LF of 30-inch; New Clackamas River Intake & P.S. to Lake 12 Oswego WTP, including Willamette River crossing, and 500 LF of 30- 1996 4,035,000 inch; New.intake and P.S. to Exst. Raw Water Pipeline 13 4,000 LF of 16-inch. ; new Willamette R. Intake and P.S. to exst. WTP site 2009 583,000 Finished Water Pump Station Improvements: 13 New WTP High Service Pump Station; 37-mgd capacity 1996 2;880,000 Raw Water Pump Station Improvements: 21 New Clackamas R. Intake and P.S.; 25.1-mgd capacity 1996 3,659,000 23 New 5-mgd capacity Willamette R. Intake and P.S. 2049 1,755,000 Water Treatment Plant Improvements: 24 Expand Exst. WTP to 32 mgd capacity 1996 10,321,000 25 New 5-mgd capacity WTP expansion for Willamette R. water 2009 3,340,000 TOTAL - SCENARIO 2 30,936,000 a NOTES: (1) Project numbers are from the 1988 Water System Master Plan. (2) ENR CCI 5747 (Seattle Area) May 1994 (3) Cost = Construction, Contingencies, Engineering and Administration 4 -12 Table 3-1 Estimated Annual O and M Costs Scenario 1 - Lake Oswego Only 1994 2,020 Estimated Estimated 0AM O&M O&M Item $ $ River Intake & P.S. Electrical 113,328 146,911 Maintenance 4,706 12,200 Pump Maintenance 13,840 17,941 Raw Water Pipeline 5,100 6,611 Water Treatment 613,466 770,882 Sludge Handling & Disposal 15,142, 19,629 High Service Pumping Electrical 188,228 244,005 Maintenance 4,745 6,152 Finished Water Pipeline 4,745 6,152 Storage Reservoir 2,500 2,500 TOTAL ANNUAL O&M 965,801 1,232,982 Note: O&M Costs are 1994 Dollars S-13 7115N4 Table 3.2 Estimated O and M Costs Scenario 2 - Lake Oswego plus Tigard 1994 2009 2010 2020 Estimated Estimated Estimated Estimated { O&M Cost O&M Cost O&M Cost O&M Cost O&M Item $ 3 $ River Intake & P.S. Electrical 207,007 258,925 261,722 293,050 Maintenance 5,522 6,907 11,482 12,318 Pump Maintenance 16242 20,315 20,535 22,992 Raw Water Pipeline 5,985 7,486 7,567 8,472 Water Treatment Clackamas R. WTP 522,118 639,614 690,127 732,848 Willamette R. WTP 57,100 57,100 Sludge Handling & Disposal 27,658 34,595 34,968 39,154 High Service Pumping Electrical 343,820 430,050 434,696 486,729 Maintenance 5,569 6,966 7,041 7,884 Finished Water Pipeline 2,913 3,644 3,683 4,124 Storage Reservoir 2,500 2,500 2,500 2,500 • TOTAL ANNUAL O&M 1,139,334 1,411,601 1,531,421 1,667,170 Note: O&M Costs are 1994 Dollars A Z S-14 i/1&94 0 1111 I i Table 3-4• Allocation of O and M Costs to Lake Oswego and Tigard Scenario 2 - Lake Oswego plus Tigard Allocated Costs Annual O&M Maximum Total Allocation Year 1994 $ Base Da Total Lake Oswr o Tigard Total 1994 1,139,334 917,674 221,661 1,139,334 624,162 515,173 1,139,334 2009 1,411,001 1,134,104 276,898 1,411,001 724,993 686,008 1,411,001 2010 1,531,421 1,191,896. 339,526 1,531,421 786,018 745,403 1,531,421 2020 1,667,170 1,294,314 372,856 1,667,170 836,862 830,308 1,667,170 Note: Costs are in 1994 dollars. T - . 1 S-15 City of Lake Oswego July 29, 1994 Swnmary Report Evaluation of %later Service With and Without Tigard allocated to Tigard was assumed to be the amount Tigard would have to pay bake Oswego to purchase or buy Tigard's share of the existing facilities. Table 3-6 sum- marizes the allocation of the depreciated replacement value of existing capital to Lake Oswego and Tigard. Table 3-7 presents a summary of the allocation of new capital costs for Scenario 2. The allocation of capital costs and O&M cost to the two entities was based on a cost of service approach; costs were allocated to base and maximum day followed by allocation of the base costs and maximum day costs to each entity based on projected average day and maximum day demands. Cost Comparison Present Worth Cost Analysis Present worth costs were calculated using both a nominal interest rate and an escala- tion factor. The salvage value of new capital was determined and used in the calcula- tion of present worth. The results of the present worth analysis (see Table 3-10) indicate that Scenario 2 has a lower total present worth cost for Lake Oswego assuming a buy-in amount from Tigard equal to its allocated share of existing capital. Without the assumed buy-in amount, Lake Oswego's total present worth cost of Scenario 2 ranges from 2.9% less to 7.0% greater than the total present worth of Scenario 1, assuming an escalation factor range of 3.00% to 4.00% per year and a nominal interest rate range from 6.50% to 5.00% per year. Water Rate Impact Andysis The initial impacts to Lake Oswego's water rates will be a significant increases for either scenario. The estimated rate increase in fiscal year 1995-96 for Scenario 1 is 54% followed by a 7% rate increase in fiscal year 1996-97. The 54% ratty increase in 1995-96 will be required because of the-loss of revenue from water sales to Tigard and the 7% rate increase in 1996-97 will be required to fund debt service on revenue bonds required to fund capital improvements at the water treatment plant. It is likely that the initial rate impacts of Scenario 1 could be dampened if Lake Oswego could continue to Sell water to Tigard for the next few years with annual rate increases designed to offset the eventual loss of sales to Tigard. The impacts on Lake Oswego's water rates for Scenario 2 are dependent on both the J amount of buy-in by Tigard and how the buy-in amount is financed. If Lake Oswego financed the buy-in by Tigard over a 20-year payment period, the estimated rate S-16 -.0111 R Table 3-6 Allocetion of Existing Capita! Scenario 2 - Lake Oswego plus Tigard Total Allocation - Capital Item Lake Osw o -1 and Total Clackamas R. Intake and P.S. TOTAL-Intake and P.S. 290,145 286,727 576,872 27-inch Raw Water Pipeline 838,921 829,038 1,667,959 Water Treatment Plant TOTAL-Water Treatment 2,647,990 2,616,793 5,264,783 Finished Water Transmission TOTAL-Finished Water Transmission .1,614,036 1,595,021 3,209,057 Storage TOTAL-Storage 822,439 812,750 1,6351190 Clackamas R. Water Rights, 50cts 378,731 374,269 753,000 TOTAL - Existing Capital 6,592,262 6,514,598 13,106,860 S-17 Table 3-7 Allocation of Now Capital Scenario 2 - Lake Oswego plus Tigard Total Allocation Ca ital Item Lake Oswego Tigard Total Pipeline Improvements for Finished Water Transmission 12,000 LF of 36'; 2,600 LF of 30'; 800 LF of 24" 1,655,250 1,635,750 3,201,000 6,100 LF of 30' 539,176 532,824 1,072,000 Pipeline Improvements for Raw Water Transmission 13,600 LF of 300; 500 LF of 30' 2,029,455 2,005,545 4,035,000 4,000 LF of 16' 293,227 289,773 583,000 Finished Water Pump Station Improvements New WTP High Service P.S., 37 mgd 1,448,533 1,431,467 2,880,000 Raw Water Pump Station Improvements Clackamas R., 25.1 mgd 1,840,341 1,818,659 3,659,000 Willamette R., 5-mgd 882,700 872,300 1,755,000 Water Treatment Plant Improvements Expand Exst. WTP to 32 mgd 5,191,078 5,129,922 10,321,000 Willamette R. expansion, 5 mgd 1,679,896 1,66`0,104 3,340,000 1 TOTAL - SCE=NARIO 2 15,659,60 15,376,345 30,936,000 S-18 MUM MENEM Table 3-10 Present North Costs of Water Supply Scenarios Lake Oswego and Tigard Base Year: 1994 Escalation Factor: 3.00% Nominal interest Rate: 7.00% Present Worth Scenario 1 Scenario 2 Item Lake Osw o Lake Osw o Ti and Existing Capital $0 ($6,514,598) $6,514,598 Proposed Capital $3,949,799 $10,396,794 $10,274,308 O&M $18,494,685 $12,695,332 $10,631,685 TOTAL, with Existing Capital $22,444,484 $16,577,527 $27,420,591 TOTAL, without Existing Capital $22,444,484 $23,092,125 $27,420,591 t S-19 FM man City of Lake Oswego July 29, 1994 Summary Report Evaluation of Water Service With and Without 77gard increase in fiscal year 1995-96 for Scenario 2 is 69% assuming receiving an annual reimbursement from Tigard for the assumed buy-in to the existing system. The initial 69% rate increase projected for Scenario 2 could be reduced if Tigard were to pay Lake Oswego a lump sum buy-in amount and Lake Oswego utilized the buy-in amount to reduce potential rate increases over the first few years. If it was assumed that $2 million of the initial $6.5 million buy-in amount would be placed in reserve for future capital requirements (present worth cost of improvements required in the years 2003 and 2009), and $4.5 million was used during the period FY1995-96 through FY1998-99 to reduce annual rate increases and spread the total rate increase required over a longer time period, initial rate increases would be less than 24% per year. Figures S-1 and S-2 present a comparison of projected annual rate increases for Scenarios 1 and 2 assuming a 20-year buy-in period and a lump sum buy-in by Tigard, respectively. Table 3.15 presents a comparison of residential customer water rates for regional water providers. Lake Oswego's current rates are lower than those of surrounding water providers. With the rate increases proposed for either scenario, Lake Oswego's residential customer rates would continue to be equal to or less than most of the regional providers. It is doubtful that Tigard would buy-in to Lake Oswego's existing system without becoming an equal partner in the management of the water supply and treatment facilities. This would require Lake Oswego to join with Tigard to form a water supply authority or similar entity established by an intergovernmental agreement; each entity would retain local control of its distribution system and customer billing. Based on the results of the present worth analysis there are long term benefits to Lake Oswego if Scenario 2 were implemented. Operation and maintenance costs are re- duced on a per unit of production basis and the costs to customers over the next 26 years will be less for Scenario 2 than for Scenario 1. Construction of the transmis- sion pipelines required to implement Scenario 2 will cause disruption and inconve- niences on local streets and highways. Permitting requirements for a new intake and f raw water transmission pipeline crossing of the Willamette may also be difficult, but a will be required.for either Scenario: Based on changes over the last 10 years, it may be more difficult to obtain permits for the river intake and pipeline crossing in the s year 2010 (Scenario 1) compared to permitting for improvements with the next few years (Scenario 2). t S-20 1110.. ~~gu~a S ~aKu ®avvag® tof ~a$~ OIY,pac$~ ~0 Pr®'ac$ad (201 'at lauY. yo 60.0% 543% ~gcenada 2 5(1.04`,9 40.0% r . 30.0% c 20.0% 2 1 T'6 0.0°. 00 s.~ 2.4% 0.2% 059 ia99-4Q 10.4 i~g$-99 7128 igg~-97 i9~5 96 ~-21 4 o°r~ ~ i~i~4-95 figure S-2 ©sweg® projected* Rate impacts ~t~ for SuY"lug Lake . • (LUMP- . 60.0% 543% 50.0% Scenario 1 40.0% ®Scenado 2 30.0% 23,6% 23.5% no 20.0% 42.4°,6 6.6% 2.9% 10.0% 2,0% 1.8% 0.096 0.8% FY ISAT-98 FY 199"S ' ~ 199"o FY 1995-97 712&94 0.096 ~ logs-96 - Fy 1994-95 S-22 w Table 3-15 Comparison of Residential Customer Water Rates for Regional Providers Volume Rate Water Provider Basic Customer Charge $Icc Or on City- $1212 months $1.00 City of West Linn $19/2 months $19 includes 14 ccf) $1.10 >14 ccf/2 months Clackamas Water District $3.50/month $0.90 0-4 ccf $1.00 >4-12 ccf $1.25 >12 ccf Ci of Tualatin $6.901month $0.95 Ci of Beaverton $5.57/month $1.31 City of Portland $13/3 months $0.825 <36 ccf/3 months $0.995 >36-60 ccf/3 months $1235 >60 ccf/3 months City of Lake Oswego_ Current rates $7.65/month $0.50 Scenario 1 - projected 1996/97 $12.61 $0.824 Scenario 2 - projected 1996/97 $13.26 $0.866 (20-year Buy-In) Notes: All rates are current as of 8/1/94, and are for residential customers with 3/4-inch meters. ccf = hundred cubic feet = 748 gallons Y 1 1 f S-23 M9194 r ~ a !eat tviel gard IWOand and at'air osvia o ~ ~ laffio TECHNICAL MEMORANDUM NO. i HILL PREPARED FOR: City of Lake Oswego PREPARED BY: Phillip Butterfield, CH2M HILL DATE: June 7, 1994 SUBJECT: Revised Population and Water Demand Projections for City of Lake Oswego and Tigard PROJECT: OPW37635. A0.01 Introduction This document is the first technical memorandum for the study of the costs of water service both with and without service to Tigard. The purpose of this technical memoran- dum is to present updated population and water demand projections for the City of Lake Oswego and Tigard. The updated projections will be used in this project for determining both the timing and capacity requirement of capital improvements. Population Population projections for the City of Lake Oswego's Urban Service Boundary (USB) and Tigard have been updated since completion of the Water System Master Plan in 1988. Population projections for the area within the City of Lake Oswego's USB have been made by -Metro and are presented in Table 1-1. Population projections for Tigard's service area have been recently updated by Murray Smith & Associates and are also shown in Table 1-1. Metro population projections for the USB do not go beyond the year 2010. Based on information from the City of Lake Oswego's planning staff, popula- tion for the area within the USB has been estimated to the year 2020 using a 1 percent per year growth factor beyond the year 2010. The City of Lake Oswego's USB includes several independent water districts and areas . outside the current City Limits which are served directly by Lake Oswego, buy water from Lake Oswego or have another source of supply. The'population estimates for Lake Oswego include all area within the USB and therefore include population within the other water districts and areas outside the current City Limits but within the USB. The 1988 Water System Master Plan assumed Lake Oswego would eventually supply all the water requirements for the area within the USB, including the water requirements of the inde- pendent water districts. ' 1-1 City of Lake Oswego June T, 1994 Technical Memorandum No. 1 Revised Population and Water Demand The combined population for Lake Oswego and Tigard in the year 2020 is projected to be 101,328. The 1988 Water System Master Plan presented a combined population of 100,533 in the year 2012. The revised population estimates indicate a slightly lower projected growth rate over the next 25 years. The 1994 estimate of the year 2020 total population for Lake Oswego and Tigard is essentially the same as the 1988 Water System Master Plan estimate for the year 2012. The population projections are presented graphi- cally in Figure 1-1. Water. Demand Water demand projections for Tigard have been updated by Murray Smith kc Associates and are presented in Table ii. Water demand projections for Lake Oswego are also presented in Table 1-2. The Lake Oswego projections are based on the per capita de- mand projections utilized in the 1988 Water System Master Plan. The per capita average day demand (ADD) is 158 gallons per day, and the per capita maximum day demand (MDD) is 365 gallons per day. The information presented in Table 1-2 indicates the ultimate demand projection of 36 million gallons per day (mgd) is nearly the same as was used in the 1988 Water System Master Plan. However, the ultimate water demand will not occur until the year 2020, a lag of 8 years compared to the 1988 Water System Master Plan projections. In the con- text of this study the term ultimate demand applies only to the year 2020 demand since population projections for Lake Oswego and Tigard do not extend beyond that date. The year 2020 population projection of 49,628 for Lake Oswego is consistent with previous estimates of the ultimate population within the USl3 (approximately 50,000). The year 2020 population, and water demand, for Tigard most likely does not represent ultimate values since the service area could potentially grow beyond existing boundaries. 1-2 Table 1-1 Population Projections for Lake Oswego and Tigard Population 1980 Estimates 1994 Estimates Year Lake Oswe ® Ti and Total Lake Oswego- sw o Tigard Total 1987 29,342 24,050 53,392 1989 31,334 26,936 58,271 35,725 1992 34,323 31,266 65,589 37,260 1994 36,298 32,785 69,083 38,283 33,500 71,783 1995 37,286 33,545 70,831 38,795 34,533 73,328 2000 42,225 37,342 79,567 40,988 39,700 60,688 2005 47,163 41,140 88,303 43,181 42,600 85,781 2006 48,151 41,899 90,050 43,620 43,180 86,800 2010 52,102 44,937 97,039 45,374 45,500 90,874 2012 54,077 46,456 100,533 46,286 46,740 93,026 2015 47,219 48,600 95,819 2020 49,628 51,700 101,328 Legend: Lake Oswego - Area within Urban Services Boundary Tigard - Tigard Water District Total - Lake Oswego plus Tigard 1988 Estimate - Source: 1988 Water System Master Plan 1994 Estimat® - Sources: Metro Estimates for Lake Oswego Murra Smith & Associates Estimates for Ti and Technical Memomdum No. t . 1-3 &=194 ffm mm ~ Squre1-1 Master Plan (1988) and Revised {1994) population Projections 120,000 100,000 r _ g__* Lake Oswego 1988 --Lake Oswego+Tlgard-1988 80,00 - Lake Oswego-1994 I ~ro~scuons Lake Oswego+Tigard-1994 60,000 a a ~ 40,000 20,000 0 2005 2010 2015 2020 1985 1990 1995 2000 Year 7119M 1-.4 Technical Memorandum NO. i BRUNEI Boom_= Table 1-2 Water Demand Projections for Lake Oswego and Tigard 1994 Estimate 1968 Estimate Ti and Lake Oswego Total Total Year ADD MDD ADD MDD ADD MDD MOD 1987 19.5 1989 5.64 13.0 5.6 13.0 21.3 1992 5.89 13.6 5.9 13.6 23.9 1994 5.00 11.5 6.05 14.0 11.0 25.5 25.2 1995 5.17 11.9 •6.13 14.2 11.3 26.0 25.9 2000 6.00 13.8 6.48 15.0 12.5 28.8 29.0 2005 6.40 14.8 6.82 15.8 132 30.5 32.2 2010 6.80 15.7 7.17 16.6 14.0 32.3 35.4 2012 7.03 16.2 7.31 16.9 14.3 33.1 36.7 2015 7.30 16.8 7.46 17.2 14.8 34.0 2020 7.80 17.9 7.84 18.1 15.6 36.0 Notes: ADD - Average Day Demand (mgd) MDD - Maximum Day Demand (mgd) Source: Tigard- Murray, Smith & Associates Lake Oswego - 1988 Master Plan per capita demands TechntalMemorandu, No. r 1-5 622)Y4 NMI, 6 o., 2. m1po Otto 41 so n ~~e~ u~ ~nscena tios cap, co for ~a vsteto 00 P. -0 ~ teak®~S~®o° only) 1® e rYt 2-1 IS " Sc®tes~~l® 1 ~euttt~®a~ Pl~►t~~ ca'~acltY 0100 000 AD 35 ~,,,.e Lake Qs"d 43e {Beard psw68° ~ notion Lake Is 30 s NO COPOM v 25 ® 2D 15 10 2020 2015 5 2010 1995 loot 0 1940 1485 2-2 'f®chnlr~~ No. 2 City of Lake Oswego June 10, 1994 Technical Memorandum No. 2 Revised Capital Costs 1994 ADD = 6.05 mgd 1994 MDD = 14.0 mgd 2020 ADD 7.84 mgd 2020 MDD = 18.1. mgd The year 2020 maximum day demand (MDD) projection for Lake Oswego only is 1.7 million gallons per day (mgd) less than the 1988 Water System Master Plan (Master Plan) projection for ultimate MDD.- As shown in Figure 2-1, the water treatment plant will require expansion in the year 2010 based on a current capacity of 16.1 mgd. An expansion of the water treatment plant will require the addition of another contact basin and two filters, increasing the capacity of the plant by an increment of 5.4 mgd, or a total capacity of 21.5 mgd. Figure 2-2 presents the water treatment plant capacity requirements for Scenario 2, Lake Oswego plus Tigard.. The water demand projections for Scenario 2, based on the infor- mation in TM-1, are as follows: 1994 ADD = 11.0 mgd 1994 MDD = 25.5 mgd 2020 ADD = 15.6 mgd 2020 MDD = 36.0 mgd The year 2020 maximum day demand (MDD) projection for Labe Oswego plus Tigard is 0.7 million gallons per day (mgd) less than the Master Plan projection for ultimate MDD. As shown in Figure 2-2, the water treatment plant will require expansion immediately to begin providing all the needs of both Lake Oswego and Tigard. The proposed expansion would increase the capacity of the existing water treatment plant to 32 mgd. As dis- cussed in the Master Plan, 32 mgd is equal to the amount allowed in Lake Oswego's water right permit on the Clackamas River. The 32 mgd water right permit has priority over instream minimum flow rights and is therefore a firm water right even during river low flow times. In the year 2009 the MDD will exceed 32 mgd and additional treatment capacity will be required. As presented in the Master Plan, a 5-mgd expansion to treat Willamette River water is planned to provide peak water needs beyond 32 mgd. The capacity of the expansion proposed for the year 2009 was assumed to be 5-mgd to allow direct use of information developed during the Master Plan regarding pumping and trans- mission. 2-3 Phil NINE% 'Ill tole » OF got- 1us Agard' ego P g9ur® 2-2 Sc®narta 2 ~~ak® 0""1 acttY ~®~~trerr►ents ~at~r zr®atrrr~~t ?Ilan, Gad . • r 5-rs+~d ~uP~j9~►on ~ ; ~ . 40 ° ' .000 35 eke 0s $9®it19~d . 000 Lake Oswego t.IlgaSCi Lang Oswego COPOCIW WIP E 16 g1►n~ . a. ° 15 10 2020 2015 5 X010 6 0 1490 1995 Y~~r 1465 2.a ; iechnic~~ Memo Odom N0 2 City of Lake Oswego June 20, 1994 Technical Memorandum No. 2 Revised Capital Costs Cost Estimates Cost estimates were developed using the information in the Master Plan. Where applica- ble, cost estimates were adjusted using the Engineering Dews Record Construction Cost Index for Seattle of 5747 (May 1994). Cost estimates for raw water intakes, pump sta- tions and water treatment were revised based on new assumptions resulting from changes since the Master Plan was completed in 1988. Revised cost estimates are presented for the following cost components: ® Pipeline Improvements for Finished Water Transmission ® Pipeline Improvements for Raw Water Transmission ® Finished Water Pump Station Improvements Raw Water Pump Station Improvements Water Treatment Plant Improvements Scenario 1 Scenario 1 assumes Lake Oswego will not supply all of Tigard's water needs and will expand to meet only the projected water requirements for the area within the urban ser- vices boundary. (USB). Table 2-1 presents the revised capital costs for Scenario 1. The "project numbers" shown in Table 2-1 coincide with the project numbers used in the Master Plan for Scenario 1. One new project has been added to Scenario 1, improve- ments for sludge handling, chemical feed and storage, and clearwell baffles for improved disinfection. This new project and the others listed in Table 2-1 are described in more detail below. Pipeline Improvements for Finished Water Transmission The Master Plan recommended the addition of 12,000 lineal feet of 24-inch pipeline for finished water transmission improvements. The estimated cost for this improvement was determined by updating the Master Plan cost using the ENR index. Pipeline Improvements for Raw Water Transmission The Master Plan recommended the addition of 13,6GO lineal feet of 24-inch pipeline be- tween the existing raw water pump station and the water treatment plant. As will be discussed below, a new raw water intake will be required for Scenario I and 500 lineal feet of 24-inch pipeline was assumed to connect the new intake pump station with the existing raw water transmission pipeline. The estimated cost for this improvement was determined by updating the pipeline costs in the Master Plan using the ENR index. 2-5 !III Ill: 11!111!111 ll~gl III!!!! III! lp~lc 1 11 11 Illig Il Table 2-1 Revised Capital Costs for Scenario 1 Lake Oswego Only PROJECT COST NO: PROJECT DESCRIPTION YEAR $ Pipeline improvements for Finished Water Transmission: 9 12,000 LF of 24-inch; Labe Oswego WTP to Pacific Hwy. and Laurel St., 2010 1,705,000 parallel to exst. 24-inch Pipeline improvements for Raw Water Transmission: 13,600 LF of 24-inch; Exst. Clackamas River Intake & P.S. to Lake 11 Oswego WTP, including Willamette River crossing and 500 LF of 24-inch; 2010 3,433,000 New Intake and P.S. to Exst. Raw Water Pipeline Finished Water Pump Station Improvements: 13 WTP High Service Pumps; 4 - 600 hp - 4,730 gpm capacity pumps 2010 1,164,000 Raw Water Pump Station Improvements: 18 New Clackamas R. Intake and P.S.; 14.1-mgd capacity 2010 2,700,000 Water Treatment Plant improvements: new Improvements for Sludge Handling, Chemical Feed and Storage, and 1996 1,594,000 Clearwell Baffles to increase CT 19 Expand Exst. WTP to 21.5 mgd capacity 2010 2,045,000 TOTAL - SCENARIO 1 12,641,000 NOTES: - (1) Project numbers are from the 1988 Water System Master Plan. (2) ENR CCI 5747 (Seattle Area), May 1994 (3) Project Cost = Construction, Contingencies, Engineering and Administration t i ' 2-6 5rl IS r City of Lake Oswego June 20, 1994 Technical :Memorandum No. 2 Revised Capital Costs Finished Water Pump Station Improvements The Master Plan recommended installation of four new pumps (replacing three existing pumps and adding one new pump) to bring the capacity of the existing finished water pump station at the water treatment plant to 21.5 mgd. The estimated cost for this im- provement was determined by updating the costs in the Master Plan using the ENR index. Raw Water Pump Station Improvements The capacity of the existing raw water intake is limited by the size of the intake screen. The existing intake screen is '6-feet wide. Based on observations by water treatment plant operators, the low river water level is only 5.5-feet above the bottom of the screen, resulting in an effective screen area of 33 square feet at low river levels. Current Oregon Department of Fish and Wildlife regulations for fish screens on the Clackamas River limit the approach velocity to 0.4 feet per second (fps). The approach velocity is deter- mined by dividing the flow rate in cubic feet per second (cfs) by the screen area in square feet measured below the water surface. Current regulations also require a screen area of 2.5 square feet per cubic foot per second of-water being drawn through the screen. Therefore, due to limitations in the screen area at low water levels, the capacity of the existing screen is 13.2 cubic feet per second (cfs) or 8.5 mgd. Since low river water levels can coincide with maximum day water demands, the maximum capacity of the existing intake is 8.5 mgd based on screen area limitations. At higher river water levels the capacity of the screen can be determined by multiplying the water depth above the bottom of the screen in feet by 1.55 mgd per foot of water depth. The required total capacity of the raw water intakes for Scenario 1 is 22.6 mgd based on a desired plant capacity of 21.5 mgd and an allowance of 5-percent for water required for backwash and plant uses. The estimated capacity of a new raw water intake and pump station is 14.1 mgd assuming the capacity of the existing intake is 8.5 mgd. The cost estimates for raw water intakes and pump stations presented in the Master Plan were based on the costs for the existing intake: Because of the new screening requirements the cost of the raw water intake and pump station was revised to account for the new require- ments. The estimated cost for a new 14.1 mgd capacity raw water intake and pump sta- tion is $2.7 million. It is assumed the new intake would be required when the plant ex- pansion is constructed in the year 2010. This study did not evaluate alternatives to modi- fy the existing intake by adding new screening facilities that met current requirements for protection of fish. Water Treatment Plant Improvements Costs for expanding the existing plant to a capacity of 21.5 mgd and making other im- provements are presented in Table 2-1. Expansion of the existing plant will not be re- quired until the year 2010. However, in the 'interim there are certain improvements that are required or recommended. The interim improvements are: 2-7 :11;1! IN 01 City of Lake Oswego June 20, 1994 Technical Memorandum No. 2 Revised Capital Costs ® Sludge Handling-cost estimates for new sludge handling and disposal facilities are based on the costs presented in the Water Treatment Plant Study (Black & Veatch, April 1994). The facilities include new lagoons for sludge dewatering and storage and sludge drying beds. The facilities were assumed to handle the sludge production from a treatment plant with a maximum capacity of 21.5 mgd. The costs presented in the Water Treat- ment Plant Study were prorated based on annual sludge production for Scenario 1. ® Clearwell Baffles-cost estimates were provided by the treatment plant operators for the addition of baffles in the existing clearwell to increase detention time for meeting disinfection requirements. Chemical Storage and Feed-cost estimates were based on costs presented in the Water Treatment Plant Study for improvements- to existing chemical feed and storage facilities. The improvements would increase the capacity of the storage and feeding systems for lime, required to raise the pH of the finished water to meet the Lead and Copper Mule for corrosion of lead and copper. The improvements would add new chlorine storage and feed facilities, including an emergency chlorine leak scrubber system. In the year 2010 the plant would. be expanded from 16.1 mgd to 21.5 mgd with the addi- tion of another contact basin and two additional filters. With the addition of another contact basin, the new 24-inch finished water transmission pipeline, and continued prechlorination, disinfection requirements can be met during the winter (flow assumed to not be greater than 70-percent of the maximum day flows). Total Cost for Scenario I The total cost of improvements required for Scenario 1 is estimated to be $12,641,000. The costs shown in Table 2-1 include 35=percent for engineering, contingencies, and ad- ministrative costs. Scenario 2 Scenario 2 assumes Lake Oswego will supply all of Tigard's water and will expand facili- ties to meet the combined or total demands of the two service areas. Table 2-2 presents the revised capital costs for Scenario 2. The project numbers shown in Table 2-2 coin- cide with the project numbers used in the Master Plan for Scenario 2. The projects listed in Table 2-2 are described in more detail below. 2-8 Table 2-2 Revised Capital Costs for Scenario 2 Lake Oswego plus Tigard PROJECT COST NO. PROJECT DESCRIPTION YEAR S Pipeline lm rovements for Finished Water Transmission: 9 12,000 LF of 36-inch; Lake Oswego WTP to Pacific Hwy. and Laurel St., 1996 3,291,000 parallel to east. 24-inch 2,600 LF of 30-inch; Pacific Hwy. and Laurel St. to State and Ladd St.; parallel to exst. 24-inch 600 LF of 24-inch; Quarry Rd. - Lower Boones Ferry Rd. to Douglas Way 10 6,100 LF of 30-Inch; North Shore Rd., Middlo Crest Rd., and State St. - 2003 1,072,000 from State St. and Ladd SL to Iron Mtn. Blvd. and Fairway Rd. Pipeline Improvements for Raw Water Transmission: 13,600 LF of 30-inch; New Clackamas River Intake & P.S. to Lake 12 Oswego WTP, including Willamette River crossing, and 500 LF of 30- 1996 4,035,000 inch; New Intake and P.S. to Exst. Raw Water Pipeline 13 4,000 LF of 16-inch; new Willamette R. Intake and P.S. to exst WTP site 2009 563,000 Finished Water Pump Station Improvements: 13 New WTP High Service Pump Station; 37-mgd capacity 1996 2,660,000 Raw Water Pump Station Improvements: 21 New Clackamas R. Intake and P.S.; 25.1-mgd capacity 1996 3,659,000 ZD 23 New 5-mgd capacity Willamette R. Intake and P.S. 2009 1,755,000 Water Treatment Plant Improvements: 24 Expand Exst. WTP to 32 mgd capacity 1996 10,321,000 25 New 5-mgd capacity WTP expansion for Willamette R. water 2009 3,340,000 TOTAL - SCENARIO 2- 30,936,000 NOTES: (1) Project numbers are from the 1966 Water System Buster Plan. (2) ENR CCI 5747 (Seattle Area) May 1994 (3) Cost . Construction, Contingencies, Engineering and Administration 2-9 G A 01 City of Lake Oswego June 20, 1994 Technical Memorandum No. 2 Revised Capital Costs Pipeline Improvements for Finished Water Transmission 'The Master Plan recommended the addition of 12,000 lineal feet of 33-inch, 8,700 lineal feet of 30-inch, and 800 lineal feet of 24-inch pipeline for finished water transmission improvements. Since the Master Plan was completed the sine of the initial 33-inch pipe- line has been recommended to be 36-inch based on revised pumping requirements. The 30-inch pipeline is proposed in two phases, similar to the Master Plan, with the first phase consisting of 2,600 lineal feet. The estimated costs for these improvements were determined by updating the Master Plan costs using the ENR index. Pipeline Improvements for Raw Water Transmission The Master Plan recommended the addition of 13,600 lineal feet of 30-inch pipeline be- tween the existing raw water pump station and the water treatment plant. A new raw water intake will be required for Scenario 2 and 500 lineal feet of .30-inch pipeline was assumed to connect the new intake pump station with the existing raw water transmission pipeline. Additional capacity will be required by the year 2009 and an intake, pump station and pipeline to supply water from the Willamette River will be required. As pre- sented in the Master Plan, 4,000. lineal feet of 16-inch pipeline will be required. The estimated costs for these improvements were determined by updating the pipeline costs in the Master Plan using the ENR index. Finished Water Pump Station Improvements A new finished water pump station was assumed for the expanded plant based on the requirement for a new, larger clearwell as discussed below. The pump station would have a capacity of 37 mgd and would be constructed over the proposed new clearwell. The existing surge control system would be expanded and upgraded. Cost estimates prepared.for the Master Plan were used to estimate the cost of the new pump station. Rim Water Pump Station Improvements It was assumed the existing raw water intake and pump station would remain in service but would be limited to a maximum day capacity of 8.5 mgd. A new raw water intake and pump station was assumed to be constructed on the Clackamas River with a capacity .of 25.1 mgd based on a desired plant capacity of 32 mgd and an allowance of 5-percent for' water required for backwash and plant uses: The cost estimates for raw water intakes and pump stations presented in the Master Plan were based on the costs for the existing intake. Because of the new screening require- ments the cost of the raw water intake and pump station was revised to account for the new requimments. The estimated cost for a new 25.1 mgd capacity raw water intake and pump station is $3.659 million. The new intake would be required immediately so the year 1996 was assumed to be the earliest the improvement could be constructed. 2-10 City of Lake Oswego June 20, 1994 Technical Memotmndtun No. 2 Revised Capital Costs `dater "Treatment Plant Improvements Costs for expanding the existing plant to a capacity of 32 mgd are presented in Table 2-2. (Expansion of the existing plant will be required immediately so the year 1996 was as- sumed to be the earliest the expansion could be constructed. The plant expansion would include the following components: ® Sludge Handling--cost estimates for new sludge handling and disposal facilities are based on the costs presented in the Water Treatment Plant Study. The facilities include new lagoons for sludge dewatering and storage and sludge drying beds. The facilities were assumed to handle the sludge production from a treatment plant with a maximum capacity of 37 mgd. The costs presented in the Water Treatment Plant Study were prorat- ed based on annual sludge production for Scenario 2. ® Chemical Storage and Feed-cost estimates were based on costs presented in the Water Treatment Plant Study for improvements to construct new chemical feed and storage facilities for lime and chlorine. The improve- ments would increase the capacity of the storage and feeding systems for lime, required to raise the pH of the finished water to meet the Lead and Copper Rule for corrosion of lead and copper. The improvements would add new chlorine storage and feed facilities, including an emergency chlo- rine leak scrubber system. ® New Clearwell-cost estimates are based on a new below-ground concrete clearwell sized to meet the disinfection requirements. A 725,000-gallon clearwell was estimated based on the following criteria: - Winter disinfection criteria and a winter maximum flow of 26 mgd (70-percent of the maximum day flow) 5,500 feet of 36-inch and 24-inch transmission pipeline for contact time prior to the first customer Clearwell drawdown of 50-percent of the total water depth at 26 mgd flow Three additional contact basins and continued prechlorination - Clearwell detention time equal to 70-percent of the theoreti- cal detention time (T1o:Ttheor°0.7) ® The plant expansion would consist of the addition of 3 new contact basins and 6 additional filters, increasing the capacity of the original plant to its planned maximum capacity of 32 mgd. An allowance of $250,000 for the purchase of additional land for the ex- panded facilities 2-11 City of Lake Oswego June 20, 1994 Technical Memorandum No. 2 Revised Capital Costs In the year 2009 the plant would be expanded from 32 mgd to 37 mgd with the addition of a 5 mgd facility to treat Willamette liver water. The Master Plan assumed a com- pletely separate 5 mgd treatment plant to be built on the site of the existing plant, with common clearwell, finished water pumping, and sludge handling facilities. The Master Plan proposed the 5-mgd plant's treatment process consist of a conventional treatment plant (chemical addition, flocculation, sedimentation, and filtration) followed by filtration using granular activated carbon contactors. Pilot work performed during the fall of 1993 on Clackamas River water included testing a combined process called upflow carbon contact adsorption, a process that combines flocculation, particulate removal and carbon contacting in a single process; the process assumed for pretreatment of Willamette River water in this study. The upflow GAC process for Willamette River water was assumed to consist of 5-foot deep beds of granular activated carbon (GAC) operated in an upflow mode at a hydraulic loading rate of 3 gallons per minute per square foot of contactor area. The carbon • . contactors are backvrashed with a combined air-water system and the waste backwash water would go to a backwash pond similar to the ponds at the existing plant. Treated water from the GAC units would go to gravity mixed-media filters identical to those used at the existing plant. Because operation of the 5-mgd plant would only be required dur- ing the peak water demand season, it was assumed it would be used for 4 months per year. Willamette River water quality during the peak demand period is usually better than during the winter months, allowing the application of the upflow GAC contactor treatment process. The cost estimates for the 5-mgd expansion assume the use of this technology for particulate removal and carbon contacting. Tom Cost for Scenario 2 The total cost of improvements required for Scenario 2 is estimated to be $30,936,000. The costs presented in Table 2-2*include 35-percent for engineering, contingencies, and administrative costs. 2-12 t t dl, 0. 3 chw®'oat aernorandu scena ~o of star Cost z . MEN MEN= E- me= TECHNICAL MEMORANDUM NO. 3 HILL. PREPARED FOR: City of Lake Oswego PREPARED BY: Phillip Butterfield, CH2M HILL DATE: July 28, 1994 SUBJECT: Cost Analysis of Water Supply Scenarios PROJECT: OPW37635. A0.03 Introduction This document is the third and last technical memorandum (TM) for the study of the costs of water service both with and without service to Tigard. The purpose of this technical memorandum is to present the costs to City customers for each of the two alternative supply scenarios and to evaluate whether potential investments by the City to serve Tigard are of net benefit to the City. The revised capital costs and schedules devel- oped in TM No. 2 were used for developing the economic comparison of the two supply scenarios. The supply scenarios referenced in this TM are the same two presented in the 1988 Water System Master Plan and in TM No. 2: Scenario 1 - Lake Oswego Only, and Scenario 2 - Lake Oswego Plus Tigard. This TM is organized under the following major headings: ® Operation and Maintenance (O&M) Costs ® Allocation of O&M Costs for Scenario 2 A . Estimated Value of Existing Capital Allocation of Existing Capital ® Allocation of New Capital for Scenario 2 ® Cost Comparison Initial Rate Impacts ® Summary and Conclusions Operation and Maintenance (O&M) Costs Annual O&M costs for each supply scenario were estimated using data and estimates provided by the City of Lake Oswego. The last three years of O&M costs for the water treatment department were used to estimate costs for the two scenarios. The City's water treatment department total O&M costs include costs for operation and maintenance of the City's distribution pump stations and storage reservoirs, or "outplant" O&M. The City's 3-1 City of Lake Oswego July 28. 1994 Technical Memomndum No. 3 Cost Analysis of Scenarios operations staff first determined the estimated O&M costs without "outplant" costs, providing a cost for only the water supply and treatment portions of the annual O&M budget. The annual O&M budget for the last three years of complete record was then broken down by the City into components to provide a more accurate estimate upon which to base future costs. The City's operations staff was also able to determine the immediate O&M cost savings if no water was produced for Tigard and total annual production was reduced. Initially the estimated cost savings are primarily for electric energy related to pumping and chemicals for treatment. No significant labor cost savings are projected for the scenario without water sales to Tigard. In addition to using the data for the last three years of complete record for the water r treatment department, projected O&M costs for fiscal year 1994-1995 were taken into account to reflect projected cost increases in treatment plant operation and maintenance. Estimated annual O&M costs for Scenario 1 are presented in Table 3-1 for the years 1994 and 2020. The total annual O&M cost was broken down into the components provided by the City's operations staff. An additional component, "sludge handling and disposal" was included to account for projected new sludge related facilities. and disposal costs. Annual O&M costs between the years 1994 and 2020 are anticipated to increase at a con- stant rate within the 26-year time frame. Estimated annual O&M costs for Scenario 2, Lake Oswego plus Tigard, are presented in Table 3-2 for the years 1994, 2009, 2010 and 2020. Cost estimates are presented for the years 2009 and 2010 to reflect the anticipated change in annual O&M costs when treat- ment plant facilities are added to treat Willamette River water, projected to be required in thd. year 2010. The year 2009 O&M costs do not include Willamette River water treatment and the year 2010 costs do include Willamette River water treatment O&M costs. Sludge handling and disposal costs are also included in the break down of cost components. AIlocai ion of O&M Costs for Scenario 2 The estimated annual O&M costs for Scenario 2 were allocated to Lake Oswego and Tigard. The base-extra capacity method (Water Rates, American Water Works Associa- tion, Manual Ml, 1991) was utilized to allocate O&M cost components to base and maxi- mum day cost categories. Table 3-3 paesents the allocation of the annual O&M costs for Scenario 2 to base and maximum day categories for each of the four years of estimated f costs previously shown in Table 3-2. Costs were allocated to base and maximum day based upon how each O&M item was .influenced by the peak day of production compared to the average day. For example, electrical energy and chemical costs were allocated to base since these costs depend primarily* on the total volume of water treated and not on the peak rate of production. A maximum day to average day peaking factor ratio of 2.31 3-2 'I a 11,11 Table 3-1 Estimated Annual 0 and M Costs Scenario 1 - Lake Oswego Only 1994 2,020 Estimated Estimated O&M O&M O&M Item $ $ River Intake & P.S. Electrical 113,328 146,911 Maintenance 4,706 12200 Pump Maintenance 13,840 17,941 Rave Water Pipeline 5,100 6,611 Water Treatment 613,466 770,882 Sludge Handling & Disposal 15,142 19,629 High Service Pumping Electrical 188,228 244,005 Maintenance 4,745 6,152 Finished Water Pipeline 4,745 6,152 Storage Reservoir 2,500 2,500 TOTAL ANNUAL O&M 965,801 1 232 982 Note: O&M Costs are 1994 Dollars 't j Techntw Memorandum Ab. 3 3-3 7115194 c Table 3-2 Estimated O and i1M Costs Scenario 2 a Lake Oswego plus Tigard 1994 2009 2010 2020 Estimated Estimated Estimated Estimated O&M Cost O&M Cost O&M Cost O&M Cost ffa O&M Item a $ $ M River Intake & P.S. Electrical 207,007 258,925 261,722 293,050 Maintenance 5,522 6,907 11,482 12,318 . Pump Maintenance 16,242 20,315 20,535 22,992 Raw Water Pipeline 51985 7,486 7,567 8,472 Water Treatment Clackamas R. WTP 522,118 639,614 690,127 732,848 Willamette R. WTP 57,100 57,100 Sludge Handling & Disposal 27,658 34,595 34,968 39,154 High Service Pumping Electrical 343,820 430,050 434,696 486,729 Maintenance 5,569 6,966 7,041 7,884 Finished Water Pipeline 2,913 3,644 3,683 4,124 Storage Reservoir 2,500 2,500 2,500 2,500 TOTAL ANNUAL O&M 1,139,334 1,411,001 1,531,421 1,667,170 (dote: O&M Costs are 1994 Dollars s TechnbW Memonandum No. 3 3-4 71tS194 i 1111M j 111' gill 1 i imam Allocation of 0 and ail Costs to Base a Maximum Day Scenario 2 - Lake Oswego plus Tigard 2050 2090 2020 2020 1994 2009 2009 1994 1994 Estimated Allocated Costs Es led Allocated Casts EsVmaRad Aitocat M Costs Esltmaled Allocation Factors Allocated Costa ~tmuI O$A9 Cost Maxima O&M Cost pa 08M Cost Maxirntmt urn O$M Cost Base Qa g g Base Da Paso Qa (s Base Qa S O&M item River Intake Qt P.S. Electrical 207,007 10900 0.0000 0 261,722 261,722 0 293,0.50 293,050 0 Ma 5,522 .4329 0.567E 207 2,,391 007 3,132 258.925 8,907 258.925 2,990 3,917 11,402 4,970 6,511 12,318 5.332 6,985 _ ranpMaim rsteMance 18,242 0.4329 0.5671 7,031 9,22111 1 20,315 6,794 11,521 20,535 8,889 11,845 22,992 9,953 13,039 Pump 4,005 5,985 0.4329 0.€679 2,591 3,394 7,486 3,241 4,245 7,567 3,276 4,291 8,472 3.668 Row M+lelat Pipscprw Mater Treatment 57,100 Clackamas A,ydTP 522,196 0.8175 0.3925 322,421 199,898 839,810 309,834 249,780 690,,27 437,6490 262,479 57,100 732,848 57,904 454,948 0 282,700 Willamette R. WW 0 0.0000 9.0000 0 p 34.968 34.960 0 39.154 39.154 27,658 0 34,595 34,595 Sludge Handling $ 11 27.858 1.0000 O.Q000 0 High Service Purim 0 430,050 430,050 0 434.696 434,698 0 486,729 4863,,729 413 4.4 0 Electrical 343.820 1.4000 0.00 343.820 3.158 81988 3.015 3,950 7,041 3.048 3,993 7,884 Maintenate~ 5,589 0.4329 0.5871 2,411 3,683 1,594 2,089 4,124 1.785 2.33? 2.913 0.4329 0.5871 1.261 9,6$2 3,644 1,577 2.088 Finished Victor Plpelirse 1,082 1,418 2,500 1,082 1.418 2,500 0.4329 0.66T1 1,082 1,410 2,500 1,002 1,418 2,500 Storage Reservoir , 1,139,334 0.6054 0.1946 917,674 221,881 1,411,001 1,134,104 276,898 1,531,421 1,191,896 339,526 1,667.170 1,294,314 372,856 TOTAL ANNUAL O&M Note: 08M Costs are 1994 Dollars ' 7114194 3-5 7ochnkal8}errwr®rrdum No. 3 Ciry of Lake Oswego July 28, 1994 Technical Memorandwn No. 3 Cost Analysis of Scenarios was utilized for determining the allocation factors. The maximum day peaking factor of 2.31 is consistent with the maximum day demand projections for both Lake Oswego and Tigard. The Clackamas River water treatment plant (WTP) costs shown in Table 3-3 were adjusted each year to reflect the changing allocation of costs due to chemical use and other base related costs. The Willamette River WTP costs were allocated to maxi- mum day because it was assumed the facility would be operated only during the peak use months of the year and its purpose is to. meet maximum day demands. Following the allocation of estimated O&M costs to base and maximum day, the annual O&M costs were estimated for all years of the analysis and allocated to Lake Oswego and Tigard. The allocation of base costs to each entity was based on the ratio of the entity's projected average day demand to the total average day demand. The allocation to maximum day was based on the ratio of the difference between average day and maximum day demands for the entity to the difference between the total maximum day and average day demands. -Demand projections for each year were used for the allocation of costs to each entity. Table 3-4 presents the allocation of annual O&M costs to each of the two entities, Lake Oswego and Tigard, for the years of analysis. Estimated Value of Eiisting Capital The City of Lake Oswego has invested significant capital in its water supply and treat- ment facilities. The primary construction of the existing facilities took place during the years 1968 through 1970 when the water treatment plant was constructed. The 1968-70 projects included the raw water intake and pump station on the Clackamas River, a 27- inch diameter raw water transmission pipeline from the intake pump station to the water treatment plant, a 10.7-million-gallons-per-day (mgd) water treatment plant and finished water pump station (designed to be expanded to 32 mgd), and 24-inch and. 18-inch diameter finished water transmission pipelines that extend from the water treatment plant (WTP) to Waluga Park. The raw water pump station, water treatment plant and finished water pump station were expanded in 1980 to a capacity of 16.1 mgd. In 1985 a 24-inch diameter finished water transmission pipeline was constructed as part of the transmission pipelines serving Tigard and the west side of Lake Oswego's service area. The existing Waluga Reservoir has been included in the existing capital serving Tigard since this reservoir serves as the terminus for pumping from the water treatment plant and as stor- age for Tigard's pump station.. The value of Lake Oswego's existing water supply and treatment facilities was deter- mined using the estimated depreciated replacement value of the existing assets. Table 3-5 ' presents the data used to determine the estimated depreciated replacement value of existing assets. The original service life (in years) and the remaining useful life were estimated for each asset. The remaining useful life of the asset was estimated taking into account the maintenance and replacement that has been performed on existing facilities 3-6 1 I'll! 5: iogm=Mw- sow g so -A and go-go ~aece ka pSvi 0~Ege and .~:~r • to l a and Year and tA6'pgts plus Tp1ai At 1~' Toni Atl®catton o4 take 0swe9 19x4 Scenatio , ~utrtDO Ai~ifoIpial 42090 lllgu 695.173 1929 ,334 1 2009 15311 2020 6.24.162 24,993 '745,43039567.170 ptllocaii0n Total l8xe 9 1869 ? -atCpSts Bad d 121771 09.680 27g 898 766019 08 lBe° 917.874 142 13454 3°9 626 836.862 FBCias6 Tpiai 415.283 ,357 165201 372858 wgex @as® Da Li02.3g0 480 9.134.904 174.324 984 855 ,y3yt?5tA D i 1.139.334 682838 651 1.191,696 184.001 Pt>n Daa~a 017 874 ~8 898 1 A11001 E111.B94 66046. Yost A5,° 1294 314 1994 0.1948 27 339,626 1,531.421 g468S0 1~13Q334 0. 0.9462 991.898 312.80 1g 1A1 ~0; 40 03 0.2 17 .7763 021294.394 2010 1532170 01784 988 NOW costs area ~ ig94 ao1►srs• 11, x4 37 fdo. 9 d_f~A1 PAer► as iiill:lll l,.~ae 3-5 Estimated Depreciated Replacement Cost of Existing Capital Scenario 2 e Lake Oswego plus Tigard Remaining Revised Estimated Estimated Estimated Original Cost Estm.Deprec. Acquisition Acquistition Service Years In Useful Estimated Annual Accumulated Book Escalation Replacement Capital Item Date Amount Life Service Life Life Depreciation De nrdafion Value Factor Cost Clackamas R. Intake and P.S. Original Faci{ity (estimated components): 6130168 Structure (60%) 121,980 75 26 50 76 1,605 41,730 80,250 5.2341 420,033 Purnpa and Equipment (25%) 60,825 20 26 5 31 1,640 42,627 8,198 5.2341 42,907 Piping and Valves (10%) 20,33`) 50 26 25 61 399 10,354 9,966 5.2341 52,161 Electrical, I&C, HVAC (5%) 10,165 20 26 6 31 328 8,525 1,640 5.2341 8,581 Subtotal 203,300 3,971 103,247 100,053 523,682 1980 Improvements: 6130!80 Pump 40,000 20 14 10 24 1,667 23,333 16,667 1.6336 27,227 Piping and valves 10,000 50 14 35 49 204 2,657 7,143 1.6336 11,669 Electrical and I&C 21,000 20 14 10 24 875 12,250 . 8,750 1.6336 14,294 Subtotal 71,000 2,746 38,440 32,550 53,169 TOTAL-Intake and P.S. 576,872 27-inch Raw Water Pipeline 6M71 690,137 60 23 27 50 11,803 271,463 318,674 5.2341 1,667,959 Water Treatment Plant Original WTP (estimated components): 6/30/71 Sitswork (13%) 165,916 76 23 50 73 2,138 49,124 106,791 5.2341 558,951 Coral la ens! buildings (40%) 479,739 75 23 60 73 6,572 151,151 328,588 5.2341 1,719,850 Purrgrs (3.5%) 41,977 20 23 10 33 1,272 29,257 12,720 5.2341 66,579 Mochanical equipment (10.5%) 125,931 20 23 5 28 4,493 103,444 22,488 5.2341 117,702 IPil8 Vail (16%) 191,895 50 23 25 48 3,998 91,950 99,946 5.2341 523,121 IEWrical, I&C, HVAC (16%) 191,895 20 23 5 28 6,853 157,628 34,267 5.2341 179,356 114'sscellarraouz (i%) 11,993 75 23 50 73 164 3,779 8,215 6.2341 42,996 Subtotal 1,199,347 25,493 686,332 613,015 3,208,556 Pechniccd Memorandum No. 3 3-8 7114194 21211111 IRWIN gi, jimomm ~L 7 wile 3-5 Estimated Depreciated Replacement Cost of Existing Capital Scenario 2 - Lake Oswego plus Tigard Remaining Revised Estimated Estimated Estimated Odginal Cost Estm.Deprec. Acquisition Acquistitlon Service Years In Useful Estimated Annual Accumulated Book Escalation Replacement Ca Hal Item Date Amount Life Service Ufa Lilo Depreciation Depredation Value Fec'ior Cost WTP Land: Original plant 6MI68 83,797 N/A NIA WA NIA N/A NIA N/A 5.2341 438,599 ~ Land acquisition 0/30;90 200,243 WA WA N/A N/A WA WA WA 1.1650 233,285 Subtotal 284,040 671,884 1980 Expansion: 6/30181 SHework (6.696) 80,221 75 13 60 73 1,099 14,286 65,935 1.6338 107,711 Concrete and bulldings (27%) 333,224 75 13 60 73 4,565 69,341 273,883 1.6338 447,415 Pumps (7%) 86,391 20 13 10 23 3,756 48,830 37,562 1.6336 61,360 Mechanical equipment (5.6%) 67,879 20 13 10 23 2,951 38,366 29,513 1.6336 48,212 Piping & valves (29%) 357,908 50 13 35 48 7,456 96,933 260,974 1.6336 426,327 Electrical I&C, WVAC (14.5%) 178,954 20 13 10 23 7,781 101,148 77,808 1.6336 127,104 Fiifer Media and Undardralns (6.8%) 83,923 60 13 35 48 1,748 22,729 61,194 1.6336 9P,966 Miscelaneous (3.7%) 45,664 75 13 60 73 626 8,132 37,532 1.6336 61,312 Subtotal 1,234,164 29,982 389,766 844,398 1,379,408 Chlorinator Improvements BI30/88 6,158 20 8 12 20 308 2,463 3,695 1.3356 4,935 TOTAL-Water Treatment 2,723,709 55,783 978,561 1,461,108 5,264,783 Finished Water Transmission 24-mch Finished Water Pipeline (14,628 LF) &%71 473,456 so 23 27 60 9,469 217,790 255,666 6.2341 1,338,172 WTP Transmission Main W..= 42,618 50 1 49 60 652 852 . 41,766 1.0417 43,507 North Shoralron Min. Pipelines 6430/70 534,142 60 24 26 50 10,683 256,388 277,754 4.0817 1,133,700 Upper Dr. - Iron Mtn. 24' Pipeline 6/30/85 676,398 50 9 41 50 1111508 103,572 471,826 1.4702 693,678 TOTAL-FinlshedWater Transmission 1,625,613 32,512 578,602 1,047,012 3,209,057 Technkat Memorandum No. 3 3-9 7114494 all ii ! Volvo, -s tint! ~aPitgi s 1. •s8 g;ost 01 1a08tnanto Plus ~IOard 0641 nat Cast estmQePtec• ra~latgd ~~a ~yawa~ ant rstitnat®d ®P d -sfi F. ° tb°n ta® 5~®naaln 2 - SsCunate g0OX yok pastor sod pstimat~ AccumU%tod Veatu@ ~tomaintn9 f1mA altwn Do reciet~an roeia . t7selut trite Oo 1358265 .joass In t tto 128 ti~tilion ° so N, 0 220,245 A -06A.182 12.316 Mqulsltton ant tlto 20.027 1,4702 pate 64 84 wA tVA 264 5W- 10417 Ca 'dot Itorn 11 tvA 75 t,UA 10.Sa2 243,380 1635.190 3!300 1,261.427 WA WA 72 3.627 c~tocago 8.417 N/A 3 72 753.00 a RooeNOis Lend "mm' We~Ofl 253 75 WA PIlA V4.1,0 ftwwo 90 S RoaeotrW®Dalre 1+~ WA wA pUA 1.m°'°'" ttJetu9e QUA PltA • S©~Ap,Star89a 1087 ~tIA Ctoctcnms 4 ygeter ptahts. was iOSAt ° E~totleMi Cap", 7/14134 3-10 No, 3 Teohni~i ~!®n'pferad City of Lake Oswego July 2.9, 1994 Technical Memorandwn No. 3 Cost Analysis of Scenarios since they were originally constructed. As an example, the City has replaced several of the original.. finished water pumps at the WTP over the last few years, extending the remaining useful life of those assets. Estimated depreciation was determined based on the revised estimated life (sum of the years in service and remaining useful life). The estimated accumulated depreciation, based on the estimated annual depreciation and years in service, was subtracted from the acquisition cost to determine the estimated book value. The estimated book value was then escalated to 1994 dollars using the Engineer- ing News Record Construction Cost Index values. The May 1994 ENR CCI index for Seattle of 5747 was used for the escalation of costs. The City of Lake Oswego has a 50 cubic feet per second (32 mgd) water right on the Clackamas River with a priority date senior to instream flow rights. It is difficult to estimate the value of this water right primarily because current Oregon water law does not allow cities to sell water rights. Lake Oswego's water right does have value, particularly given the fact that no additional municipal water is available for appropriation in the Clackamas River during the summer low-flow months, the time when the greatest diversions are required for municipal uses. The availability of summer diversion rights on the Willamette River above the falls at Oregon City is also questionable due to potential pre-1909 water rights with seniorityover newer, junior water rights. If storage rights could be purchased from the Willamette River reservoirs, the estimated costs are extremely high, possibly in the range of $1,500 or more per acre foot. Run-of-river water does not appear available from the Willamette River during the period from July through November, therefore stored water rights may be required for up - to five months of the year. Lased on the historical water use characteristics for Lake Oswego, a 32 mgd maximum diversion right would equate to approximately 7,531 acre feet over a five month period from July to November. If the avoided cost of $1,500 per acre foot were used, then the value of the water right would be* over $11 million. A value of $11 million would greatly skew this analysis towards Scenario 2, asstnning Tigard would be willing to pay for their share of the water right value. Therefore, this analysis applies a value of $100 per acre foot for the existing 32 mgd water right. This assumption places some value on the City's existing water right without skewing the present worth cost analysis towards Scenario 2. A value of $100 per acre foot may be more in line with the value of irrigation water rights in the Willamette 'Malley (the difference in the value of land with and without irrigation water). ARocation of Ddsting Capital Existing capital was allocated to Lake Oswego and Tigard based on the assumption that Tigard would share in the costs based on the projected year 2020 water demands. Table 3-6. presents the estimated allocation of existing capital to the two entities for Scenario 2. 3-11 WIN v! . v r.~,tan at ~~},stirl ~ ~'>bs'il9ard Laue Tom ~°`6 00 Qy80'd4$ Tdd Palo 1Ro> Da Ri°csta~+ Ti ,,..r. ~naooee°" uk~1~w Qas ~aeTa 290,146 206,121 yyxfasi°ra 1 v Tout ~yo 164@52 182.1@7 327.144 62@036 16674`'0 Eoq°.D®°' ! grin 24@720 638421 ~clad D~ 124,636 @464@@ 10941 x,144 678472 tab.+~ 478,@41 468450 ' 789 722.000 5 ,SeS11ae0 0.6071 @.6@77 240, 722720 3otA~ ny90~0 2,818793 p$. P.S. eed06612 0.43211 045609 1.087069 1.605427 264,.0@0 ~ 1.400,Zp 2 @86.8 C p. ~A TOTR7 •it4 10 7.V62 0.4329 067 1J38.684 2$7@.IS7 10~pa1 32~• 8;763 1.142.600 e92.tt3 1014036 27 pnwvi Now 0.6071 29M.127 24660 62 277.607 gM246 157@.066 i~ 6~17a 0.43a@ 136@.202 1 635.1@0 612.E v1sW 51,' 690.429 027316 622~ TQTwvla -fma~ 13~2oa 101@.0`~ 30.07 46@,746 763900 1 467.671 3747.60 0.432@ 0.6@7 ~ ~ 707074 ~ ~g 731 427. 32~ 067 255711 159@g.~ ~/31g 1.63.+.100 6974 2163+6 `,6540 TOTA7 Obg71 707 074 (8 58266@ 7 696 g04a2~ 97 082 1,6190 0.4329 000 163. 7.012 36914 427 026 763. 616 6,0n."s 3,06. 41oan0" 0.6671 2044.460 2.620. 763.800 0.432@ B07RL-S 7,~®g6 53.1~~ . 0,6811 ~ 673466 A.vdalAt F~°'~ 0.432@ 76.70@x@60 wrat-~as°1u`ec Tn~ 342 . . mom" No.3 Taetxdc~~° City of Lake Oswego July 28, 1994 Technical Memorandum No. 3 Cost Analysis of Scenarios All of the capital items were allocated to base and/or maximum day based on the maxi- mum day peaking factor of 2.31 and the assumption that all capital items were construct- ed to meet maximum day demands. Once capital costs were allocated to the base and maximum day components, they were allocated to the two entities lasing the same • methodology described above for O&M costs, but using year 2020 projected average day and maximum day water demands. Allocation of New Capital for Scenario 2 New capital requirements for Scenario 2 were presented and discussed in TM No. 2. The estimated new capital costs for Scenario 2 were allocated to the two entities using the same methodology as was used for the allocation of existing capital. Table 3-7 presents the estimated allocation of new capital to Lake Oswego and Tigard. Cost Comparison A present worth analysis was performed to estimate which supply scenario had the least cost over the analysis period (1994 to 2020). Present worth values of both capital and O&M were -determined using a nominal interest rate and an escalation factor. Capital and O&M costs were escalated in value to the year the cost occurred using a constant escalation factor. Salvage values were estimated based on an assumed service life and straight-line depreciation of the original value of the asset, escalated to the year 2020. The present worth of both capital and O&M was calculated using the nominal interest rate and the escalated cost values. Table 3-8 presents the present worth analysis for new capital for Scenario 1, Lake Oswe- go Only, using an escalation factor of 3.00%® per year and a nominal interest rate of . 7.00%® per year. Table 3-9 presents the same analysis for the Scenario 2 new capital costs as allocated to Lake Oswego and Tigard in Table 3-7. The total present worth of the two scenarios is presented in Table 3-10: Total present worth represents the total cost of a scenario over the period of analysis, and is presented in terms of 1994 dollars. For Scenario 2, the present worth costs for both Lake Oswego and Tigard are shown. The total present worth costs for Scenario 2 assume Tigard's buy-in amount is equal to the amount of existing capital allocated to Tigard (refer to 4 Table 3-6). Tigard's buy-in amount would add to the present worth cost of Scenario 2 for Tigard, and reduce the present worth cost of Scenario 2 for Lake Oswego. Without the reduction of Lake Oswego's total present worth cost of Scenario 2 by an amount equal to Tigard's share of existing capital, the total present worth of Scenario 2 for Lake Oswego would be $23,092,125, making the total present worth cost of Scenario 2 close to that of Scenario 1 ($22,444,454). The total present worth cost of Scenario 2 will be 3-13 'I Jill MEN= NMI Mae= 1..a 3-7 Allocation of Now Capital Sconario 2 - Lake Oswego plus Tigard El matod Ah=don F=U" Allocated GmW Cant Matr6laan 9Amdetpan Ban Al moon p4aukraan Da Alkeeeem Totes Anwittlon cqm Rent 1094 3 Basin Day Bsso Da Told Lake TOW Lako m Told Lake 0-a Torte Ppe'.no lmpromerne a for Fir"hed W&W TmnemkWm 12,0W LF of 30'; 2,600 LF d 3W; 800 LF a124 301,oDo 0.4329 0.6871 1,424,073 1,61 301,000 714,213 710,463 1,424,876 941,038 925,287 1,888,326 ' 1,865,260 1,835,760 3,291,000 B.100LFd3V 1,072,000 0.4320 0.6871 464,089 007,931 111 232,646 231,424 484,069 300,631 301,400 607,931 639,178 61 111 ftakw bmpmoff b W Raw wales Tmwrda" 13,800 LF d 30'; 600 LF d 30' 4,036,000 0.4320 0.6871 1,740,763 2,288,247 4,036,000 676,676 071,078 1,748,763 1,163,779 1,134,488 2,268,247 2.029,465 2,006.645 4,06,000 1 4,000 LF all 18' 683,000 0.4329 0.6071 462,381 330,610 583,000 128,623 125,868 252,381 168,705 183,914 330,819 293,227 289,773 683,000 MOnI3 Waist Pimp S WAn kMemamemft Now WTP F@g19e V100 P.a., 37 mgd 2,860,000 0.43P 0.6671 1,248,763 111 2,889,000 625,017 621,730 1,248,763 81 809,731 1,633,247 1,448,633 1.431.467 2.M.000 Raw Wekt Pmt Stebon frrr~tavotrler>!a Clatbsa m FL. 25.1 MO 3,1 0.4329 0.5871 1.553,093 2,976,017 3,060,000 794,076 769,907 1,683,00:! 1,018,285 1,028,763 2,076,017 5,840,341 1,018,659 3,659,000 tRfftm*W R., 6•mo 1,765,000 0.4329 0.6071 769,740 996.280 1,766,000 380,070 378,870. 769,740 601,030 493,430 995,280 882.700 872300 1,7&SI W41W Tit--tr M! PkA WVMV=Wb EapendEnat.WTPto32m9d 10,321,000 0.4339 0.5671 4,407,986 5.553.036 10,321.000 2,239,883 2,229,103 4,1 2,951,216 2,901,@19 5,853.035 5,191,070 6,129,922 10.32t.000 WdunoeR.eVemila11,6ni 3,340,003 0.4329 0.6871 1406887 1894113 3340000 724,847 721,041 1,446,887 955,049 939,064 1,824,113 1,@79,690 1,880,104 3,390,000 TOTAL • SCEHAR70 2 30,936,003 0.4320 0.6671 13,1 17,643.792 30,148,000 5,713,728 6.670.480 13.392,268 8.845.927 6.697.686 17.643,792 16,669.666 16,376.346 30,035,000 Tochnkal Memomndr<m No. 3 3-14 7116/94 PER NMI I imi m iffigifil By Mmi I MM 5%MP;.. M_ am EM MM.MMjVMM EMM M =-MEMO@= M T:._.e 3-BI Present !North of New Capital Scenario 1 - Lake Oswego Only PRESENT PRESENT TOTAL ESCALATED USEFUL SALVAGE VALUE WORTH WORTH PRESENT PROJECT COST COST LIFE YEAR 2020 CAPITAL SALVAGE WORTH NO. PROJECT DESCRIPTION YEAR $ $ 1994 $ 1994 $ 1998$ Pipeline Im rovemenis for Finished Water Transmission: r! 9 12,000 LF of 24-Inch; hake Oswego WTP to Pacific Hwy. and Laurel St., parallel to exec. 24-inch 2010 1,705,000 2,738,024 50 (2,941,590) 926,786 (508,529) 420,258 Plpetlno i rovements for Raw Water Transmission: 13,600 LF of 24-inch; Exst. Clackamas River Intake 8 P.S. to Lake 11 Oswego WTP, Including Wk9amelte River crossing and 500 LF of 24- inch; New Intake end P.S. to Fast. Raw Water Pipeline 2010 3,433,000 5,508,957 50 (5,922,862) 1,866,074 (1,019,890) 846,164 Finished Water Pump Station Improvements: 13 WTP High Service Pumps; 4 - 600 hp - 4,730 gpm capacity pumps 2010 1,164,000 1,867,878 30 (1,673,515) 632,715 (288,172) 344,543 Raw Water Pump Station Improvements: 1s New Clackamas R. Intake and P.S.; 14.1-mgd capacity 2010 2,700,000 4,332,707 50 (4,658,237) 1,467,638 (802,127) 665,510 Water Treatment Plant Improvements: Improvements for Sludge Handling, Chemlcal Feed and Storage, and new Clearwell Baffles to Increase CT 1998 1,594,000 1,691,075 50 (1,787,x55) 1,477,050 (307,809) 1,169,241 19 Expand Exst. WTP to 21.5 mgd capacity 2010 2,045,000 3,281,625 50 (3,528,183) 1,111,600 (607,537) 504,063 TOTAL - SCENARIO 1 12,641,000 7 481 863 1(3.532.064) 3,949,7991 Notes: Escalation Factor - 3.00% Nominal Interest Rate - 7.00°k T+dwkd Momwsndw No. 3 3-15 ~irc se M, I !I I I a17(o 3-9 Pmsant Worth of Now Capital Sanarlo 2 - Lek* Oswego plus Tigard LAKE 0610£00 TKi4R#1 PPF.b64I PR£SQ4T TOTAL PRES'£HT PRESENT TOTAL Ect'maamr) ESCALATED I RA t)AIVAQEdALIIE WORTH WOPTH PRESENT E6CAlATEO U6'EFIA B)V.VAO£VA417E WORTH WORTH PRESENT k Cmt Totr)A9cratlal 0097 M YE/312~0 Ca4HT7d. BALdAOE WORTH 0681 UFTa YFAR2~ CAPITAL PALVAO£ WORTH am Dam 1~1 ta2a 1470 16)1 1994 ) 19@4 1004 1 PsiribmIrpol-n14+aatcr FkAOWWamrTr.-,A zcn )2,000 LF N 3r; 2A0 LF b 0•; 60 LF of 24 IBM 3.201A0 I.em260 1,06,750 34791.00 LIMA$ Lo (-XS.243) 1.63T,W7 (919,697) 1.214,170 1,795.961 50 (1,614.375) 1.516.731 (316,971) 1,IWA666 6.10OLF03V 200 1,07$00 689,176 M024 1.072.00 709.50 so (797.439) =.$W (132.144) 2%610 666.214 so (756.396) 379.151 (190.592) 247.559 PIP(" bvwwmo Iv(mwWa1nRnm614" . 13A0 LF of 30; 60 LF of 20' 1906 4,MOM 2,029.456 2,06,645 4,006.00 2,163,046 to (2XEAW) 1.M,650 (39I.W7) 1.436.659 2.127.639 So (2.2(9,074) 1A64401 (367290) 1.471.120 4A0LFdIr 2009 WSW 20,477. 20.779 669,00 466,639 60 (499.260) 165.079 (14.95) 00.14 431.456 6o (497.40 i99A2 (93,035) 70.904 Ftritapad Water Puny l)tr.Tcn Inyeoyanw0e "M WTP Nab SaMm P.D.. 31 rnpd low 2.00.1M-0 1.440.699 1.431.467 2.420.000 1,698,746 0 (624.179) 1.942,266 (107.664) 1¢14,471 1.510.644 30 (617,416) 1.329.442 (106.317) 1,23.126 R6ar Wsdir P1n7 @1a6o116ry1oywlrm Cbclt am FL.-.&I mad IMO 3.650.000 1,640.341. IAISA0 %GW.OW 1.952.417 60 (2.003AM) 1.709.317 (356,970) 1.349.9947 1.92.416 so (2.09405) 1,685.220 (361.190) 1.334.035 W0mt1a96)1,"rA 200 1.756.03 M703 612JW 1.766.000 1,976,217 50 (1.464,625) 490.442 (ffi6,6M) 242.:62 1,950.916 6o (1.497,932) 492.670 (262.666) 22.907 WaI1r Traanara Petra . E1Paml Eats. WTP to 32 S40 1098 10.321.000 6.191.073 6,128.22 10.321AW 6,607.315 40 (4.470,014) 1.10.216 (771.00) 4.op.121 6.442,314 40 (4.425256) 4.753.546 (762.0M) 3.001.536 Wilwaft R. eVaraim 9avd 209 3.340.00 1.470.6M 1.660.104 31340.00 2.617,222 40 (2,62.565) 90.602 (462.29) 496.319 1900,10 40 (206.621) 037.4. (449,93) 400,472 I TOTAL-OC6NA930 6 ASWAN 16.29,096 16.370.846 80.601.0047 13,267.432 (2.70.6147) 10,906.704 19,111.127 (2.636.610) 10,274,703 Hone: Eamblon Factor- 3.0% Norrdna Normal Rass- 720% Ttc(w" A(iY11o78Y1 AM No. 3 3.16 72&0 Table 3-10 Present Worth Casts of Water Supply Scenarios Lake Oswego and Tigard Base Year: 1994 Escalation Factor: 3.00% Nominal Interest mate: 7.00% Present Worth Scenario 1 Scenario 2 Item Lake Oswe o Lake Osw o Ti and Existing Capital $0 ($6,514,598) $6,514,598 Proposed Capital $3,949,799 $10,396,794 $10,274,308 O&M $18,494,685 $12,695,332 $10,631,685 TOTAL, with Existing Capital $22,444,484 $16,577,527 $27,420,591 TOTAL, without Existing Ca ital $22,444,484 $23,092,125 $20,905,993 I Techrsteal Memomndum No. 3 3-17 7115194 I City of Lake Oswego July 28, 1994 Technical Uemoranciuna No. 3 Cost Analysis of Scenarios less than the total present worth cost for Scenario 1 if there is a buy-in amount received from Tigard for a share of the existing capital assets. The impacts of both the escalation factor and nominal interest rate on the total present worth cost estimates are shown in Table 3-11. The total present worth cost for Scenario 2 assumes a buy-in amount from Tigard equal to the amount shown in Table 3-10. An increase in the escalation factor increases the difference between the total present worth cost estimates. An increase in nominal interest rate decreases the difference between the total present worth cost estimates. As the nominal interest rate increases, the amount of buy-in from Tigard must be greater if the two scenarios are to have an equal total present worth cost. At the buy-in amount estimated and assumed in this analysis, Scenario 2 would always be the least cost alternative for Lake Oswego over the period of analysis. Without any buy-in amount, the total present worth of Scenario 1 is close in value to the total present worth for Scenario 2. In Table 3-11, the total present worth cost of Scenario 2, without an assumed buy-in value, ranges from 2.9% less to 7.0Q1o greater than the total present worth cost of Scenario 1 when evaluated over a range of escalation factors and interest rates. These percent differences in total present worth costs may not be great enough to be certain one scenario is more cost effective than the other given the accuracy of the estimates. it tW Rate Impacts An analysis was performed to determine the initial water rate impacts for each of the two wat<:r supply scenarios. Lake Oswego's water fund budgets were used as the basis for estimating future revenue requirements and projected revenues. Tables 3-12 and 3-13 present the data used to estimate rate impacts for Scenarios 1 and 2, respectively. Tables 3-12 and 3-13 show water fund revenues and revenue requirements from Lake Oswego's budget for the last three fiscal years (1992-93 through 1994-95) and projected revenues and revenue requirements for the next five fiscal years (1995-96 through 1999-00). The projected 1994-95 budget items that are not directly impacted by the proposed chang- es in water production amounts or new facilities were escalated by a factor of 3.00% per year to determine future budget numbers. Budget items that will be directly impacted by the proposed new improvements and water production amount changes were adjusted to reflect the same assumptions as made in estimating annual O costs for the present worth analysis. For example, the "materials and services" budget for water weatnment was adjusted to reflect electrical energy and chemical cost savings for Scenario 1 and estimated O&! costs for sludge handling and disposal. New capital improvements were assumed to be funded using revenue bonds with the initial debt service requirements beginning in the year projected for construction of the capital improvement. The size of revenue bond issues included issuance costs, discount costs, and one year's debt service 3-15 y Table 3-11 Impacts of Interest Mato and Escalation Factor On Present Worth Costs for Lake Oswego Nomina! Escalation Factor Interest 3.00% 3.50% 4.00% Rate Scenario 1 Scenario 2 Difference Scenario 1 Scenario 2 Difference Scenario 1 Scenario 2 Difference 6.50% 23,484,143 17,163,943 6,320,200 24,622,267 17,793,006 6,829,261 25,821,698 18,441,762 7,379,936 7.00% 22,444,484 16,577,527 5,866,957 23,520,665 17,184,526 6,336,139 24,665,310 17,811,265 6,854,045 7.50% 21,466,210 16,014,813 5,451,397 22,483,729 16,600,061 5,883,668 2,3,556,914 17,204,938 6,351,976 8.00% 20,545,700 15,475,163 5,070,537 21,507,730 16,039,092 5,468,638 22,522,692 16,622,412 5,900,280 Notes: Present Worth Costs are in 1994 Dollars. Assumed Tigard Buy-in Amount = $6,514,598 Technical Memorandum Na. 3 3-19 T/18~4 HIGHER MIAMI Table 3-12 Estimated Rate Increases for Lake Oswego Scenario i - Lake Oswego Only jected Projected Projected Projected Actual Esttrrnatad Proposed Projected Pro Item 1982.93 1983.94 1894.95 1895.85 1996.97 1.997-98 1998.99 1999-00 - REVENUE REQUIREMENTS will WATER TREATMENT Personal Sonri es 325,029 351.000 364,550 375,487 385,751 398,354 410,304 422,613 Materials & Services 613,006 756,350 898,400' 762,161 804,286 831,896 660,439 889,946 Transfers To Other Funds 111 17,212 23,000 23,690 24,401 25,133 25,887 26,663 Capital Outlay 700 15,000 32,500 33,475 34,479 35,514 38,579 37,676 Subtotal- Water Troahnent 955,623 1,139,562 1,318,450 1,194,812 1,249,917 1,280.896 1,333,209 1,376,899 - NONDEPARTMENTAL Materials & Services 79,414 182,787 262,101) 269,963 278,062 286,404 294,996 303,846 Other Financing Uses 3,173,670 650,000 0 0 0 0 0 0 Debt Service: ErdstIr g 653,275 628,103 6532W 610,590 634,425 605,005 624,155 0 Now 0 0 0 0 185,949 185,949 185,949 185,949 Subtotal - DebtService 653,275 628,103. 653,200 610,590 820,374 780,954 810,104 185,949 Tranaterto Other Funds 936,853 977,788 1,065,409 1,097,371 1;130,292 1,164,201 1,199,127 1,235,101 pCa~ . (Rate Funded) 886,448 1,099.500 3,604,800 1,184.953 1,220,502 1,257,117 1,211 1,333,675 contingancY 0 0 75,182 77,437 79,761 82,153 84,618 87,157 Unappropriated Ending Fungi Balance 2,951,775 2,350,041 0 0 0 0 0 0 Subtotanl - Nondepartmental 8,681,435 5,888,219 5,650,691 3,240,315 3,528,990 3,580,828 3,683,675 3,145,727 + TOTAL WATER FUND REVENUE REQUIREMENTS 9,637,058 7,027,781 6,979,141 4,435,127 4,778,907 4,871,725 5,016,884 4,522,626 Loss: OTHER REVENUES (Without Tlgasd) Befli mft Fund Balance 2,864,239 2,951,775 2,350,041 0 0 0 0 0 °ees 0 0 0 0 0 0 0 0 ales & Services: Meter Installations 79,265 69,000 92,200 93,125 94,059 95,003 951958 96,918 interest income 141,008 127,427 110,000 0 0 0 0 0 Rem 333 504 0 0 0 0 0 0 ! Other Revenues 7,394 10,575 3,000 31000 3,000 31000 3,000 3,000 Other Financing Sources 3,210,000 0 667,000 0 0 0 0 •0 TOTAL OTHER REVENUES - 6,302,239 3,179,287 3,23'1,241 86,125 97,059 98,003 98,956 99,810 NET REQUIRED REVENUES FROM RATES 3,334,819 3,848.500 3,758,900 4,339,002 4,681.848 4,773,722 4,917,928 4,422,708 FORECAST REVENUES FROM RATES Sales & Services (Includes growth & rate Increases) - Consurner 2,36F3,536 2,467,000 2.713,600 2.740.823 4,270,858 4,608,320 4.698.751 4,840,693 Buds Water Sales 868.283 1,381,500 1,043,300 71,666 111,673 120.486 122,861 126,572 Subtatai - Forecast Revenues from Rates 3,334,819 3A48,500 3,756,800 2,812,489 4,382,531 4,728,818 4,821,612 4,911 REVENUE SURPLUSPDEF'ICIT(-) 0 0 0 -1,526,513 -299,317 -44,906 -98,316 . 544,557 DEBT SERVICE COVERAGE: Total Revenues 4,778.907 4,871,725 5.016,884 5.067.184 Operating EMorl 2.623.1 4705,987 2,790,753 2,878,169 Net Oper&WV C 2,155.115 2,165,738 2,226,131 2,189,014 Total Armual DOOR Service (Revenue SI 185.949- 185,949 185,949 185,949 Actual Debt SOPAN Coverage Ratio 11.59 11.65 11.97 11.77 Requl Debt Service Coverage Ratio 1.25 1.25 125 1.25 Revenue Surplilmo kX(-) vft Coverage REQUIRED PERCENTAGE INCREASE IN RATES 0.00% 0.00% 0.00% 5428% SAM 0.95% 2.00% 0.0016 PLANNED PERCENTAGE INCREASE IN RATES 0.00% 0.00% 0.00% 5428% 6.83% 0.95% 2.00X, 0.00% 'rechnkad hfe+morl Ado. 3 3-20 712RJf;m4 . Table 3.13 Estimated Rata Increases for Lake Oswego Scenario 2 - Lake Oswego plus Tigard (20-year Buy-in) Actual Estknsted Proposed Projected Projected Projected Projected Projected hem 1992.93 1993.94 1994-95 19DS-98 19%-97 1997-98 1998.99 1999-00 REVENUE REQUtREMEN48 ('EWaWdad) WATER TREATMENT Personal Services 325.029 351,300 364,550 375.487 385.751 398,354 410,304 422.613 Materials & Services 613.008 756,350 898.400 935.486 1,003.331 1.044.800 1,087.855 1,132.552 Transfers To Other Fiends 16,888 17,212 23,000 . 23,690 24,401 25,133 25,867 26,663 Capital Outlay 700 15,000 32,500 33,475 34.479 35,514 36,579 37.678 Subtotal - Water Treatment '955,623 1,139.562 1,318,450 1,368,137 1,448,962 1,503,800 1,560.625 1,619,505 NONDEPARTMENTAL Materials & Services 79,414 182,7137 262.100 269,963 278.082 288.404 294.996 303.846 Other Financing Urges 3,173,670 650,000 0 0 0 0 0 0 DoW Service: Existing 653,275 628,103 653.200 610,690 634,425 605.005 624,155 0 New 0 0 0 1.364.233 1,384.233 1,364.233 1,364.233 1,364.233 Subtotal - Debt Servica 653,275 628.103 653.200 1.974.823 1.998.658 1.989,238 1.988.388 1,364,233 Transfer to Other Funds 938,853 977,788 1,065,409 1,097,371 1,130,292 1,164,201 1,199,127 1,235,101 Capkd Outlay (Rate Fund9d) 8N,448 ' 1,099,500 3,804.800 1,184,953 1,220,502 1.257,117 1,294,830 1,333,675 Contingency 0 0 75.182 77.437 79.761 82.153 64,616 87,157 Uruapprepftated Ending Fund Satanm 2,961.775 4350,041 0 0 0 0 0 0 Subtotal - Nondepartrnantal 8,681,435 5,8118,219 5,660.691 4,604,548 4,7070275 4,759,113 4.661,960 4,324,012 TOTAL WATER FUND REVENUE REQUIREMENTS 9,637,088 7,027,781 6,979,141 5,972,688 6,156,237 6,262,914 6,422.584 5043517 Laea: OTHER REVENUES (With Tigard) Begiruing Fund Balance 2,884.239 4951,775 2,350,041 0 0 0 0 0 Fees 0 0 0 0 0 0 0 0 Sates & Sarvk:e= Mater Irr:4aliations 79,265 89.000 92,200 93.125 94.059 95.003 95,958 96.918 Tigard O&M Share 0 0 502,8133 521,431 553.916 574,481 595.767 Interest Income 141,000 127,427 110,000 0 0 0 0 0 Rain bursements 333 504 0 814,932 614,932 614,932 614,932 614,932 Other Rauerams 7,394 10,575 3.000 3,000 3.000 3.000 3,000 3,000 OOtor Finarx lnp Somes 3.210.000 0 667,000 0 0 0 0 0- TOTAL OTHER REVENUES 6.302239 3,179.281 3,222,241 1.213,920 1,233,423 1.268.851 1.288,369 1,310,618 NET REQUIRED REVENUES FROM RATES 3,334,819 3,848500 3,756,900 4,758,766 4,972,815 4,998,063 5,134.215 4,632,899 FORECAST REVENUES FROM RATES Sales & Seavkea (Inotudes growth & rate V=asssa) - Consumer 2.3Zt8S38 2,467.000 2,713.600 2,740,823 4,684,030 4,845502 4,917,600 5,053583 Bulk Water Sales 968.283 1,381.500 1,043,300 71,W6 122,476 126,698 128,583 132.139 Subtotal - Forecast Revenuas from Rates 3.334.819 3,848500 3,756,900 2,812.489 4.808506 4,972,200 5,046,183 5,185,722 REVENUE SURPLUSIDEFICIT(-) 0 0 0 -1,948277 -116,308 -23,862 -68,032 552.823 DME SERVICE COVERAGE- Total Revenues 5,972,688 6,158.231 8.262.914 6,472,584 • 6,498,340 Operating E>1petn" 2.701.997 2,822.837 2.916.892 3,018,169 3.120.778 Net Operating Costa 32M.689 3„333.400 3.344.022 3.404,416 3,375,564 Tote) Annual Daft Servks (Revenue Bonds) 1.384,233 1.384.233 1,354,233 1.384.233 1,W4,233 Actual Debt Seneca Coverage Ratio 2.40 2.44 2.45 2.50 2.47 G Required Debt Serv6oe Coverage Ratio 125 133 1.25 125 1.78 Revenue Surplua/GsBclt(.) with Coverage 0 0 0 0 0 REQUIRED PERCENTAGE RiMEASE IN RATES 0.00% 0.0096 0.0696 69.2076 2.42% 0.48% 1.74% 0.00% E, PLANNED PERCENTAGE DWREJASE IN RATES MOD% O.OD% 0.00% 692M 2.42% 0.48% 1.74% 0.00% TeoferticaN Af®,~rn Rio. 3 3-21 712af94 A City of Lake Oswego July 28, 1994 Technical Mentorandwn No. 3 Cost Analysis of Scenarios payment for reserves. Budgets for capital outlays funded by rates were based on the adopted 1993-94 budget, escalated to future years. The contingency shown in the projected 1994-95 budget was also escalated to future years. In the water fund revenues budget, the beginning fund balance was set to zero based on the City's 1994-95 budget: Revenues from meter sales were projected to increase at the same rate as the projected rate of population growth for Lake Oswego. Interest income was projected based on the "unrestricted" amount in the beginning fund balance. Other smaller revenue amounts were held constant over the years of projection. Consumer water sales were projected to increase at a rate equal to the rate of projected population growth for Lake Oswego. For Scenario 1 the bulk water sales were adjusted to reflect no sales to Tigard. For Scenario 2 the bulk ;eater sales were adjusted to reflect no revenue from Tigard, however Tigard's share of annual O&M for water supply and treatment was included as a nonrate revenue source. In Table 3-13, Scenario 2 revenues also included a reimbursement from Tigard based on payment of the buy-in amount to Lake Oswego over a 20 year period assuming an interest rate of 7.00% per year. The results of the rate impact analysis show that the initial impacts on rates for Scenario 1, Labe Oswego Only, would be an approximate 54% increase in water rates for fiscal year 1995-96. An approximate rate increase of 7% would be required for the year 1996- 97 to cover increased debt service for revenue bonds to fund proposed capital improvements. Scenario 2 would require a 69% rate increase initially in the year 1995- 96 to cover the new debt service for revenue bonds.required to fund the major capital improvements required for Scenario 2. Most of the debt service requirements would be offset by reduced O&M costs and Tigard's buy-in amount. However, a lower buy-in amount from Tigard would increase the initial rate impact to Lake Oswego for Scenario 2. As with the present worth analysis, the actual buy-in amount is critical to the outcome of the analysis. The initial 69% rate increase projected for Scenario 2 could be reduced if Tigard were to pay Lake Oswego a lump sum buy-in amount and Lake Oswego utilized the buy-in amount to reduce potential rate increases over the first few years. Table 3-14 shows the estimated rate increases for Scenario 2 assuming a lump sum buy-in by Tigard. For the option shown in Table 3-14 it was assumed that $2 million of the initial $6.5 million buy- in amount would be placed in-reserve for future capital requirements in the years 2003 and 2009, and $4.5 million would be used during the period FY1995-96 through FY1998-99 to reduce annual rate increases and spread the total rate increase required over a longer time period. This option would minimize rate increases to less than 24% per year. In fiscal year 1999-2000 the general obligation bond debt service will end. Although this analysis did not extend beyond the year 1999-2000 fiscal year, the revenue requirements will be reduced by approximately $550,000 per year, an amount that could be used to build a reserve to fund future capital improvements and/or minimize future rate increases. 3-22 Table 3-14 Estimated Rate Increases for Lake Oswego Scenario 2 - Lake Oswego plus Tigard (Lump Sum Buy-In) Actual Estimated Proposed Projected Projected Projected 1il ed Projected hem 1992.93 1993-94 1994.95 1995.96 1996.97 1997-98 1998.99 1999-M REVENUE REQUIREMENTS (Escalated) WATER TREATMENT Personal Services 325,029 351,000 364,550 375,467 388,751 398,354 410,304 422,613 Materials & Ssrvtese 613,006 756,350 898,400 935,488 1,003,331 1,044,800 • 1,087,855 1,132,552 Transfers To Other Funds 16,888 17,212 23,000 23,690 24,401 23,133 25,887 28,663 Capital Outlay 700 15,000 32,500 33,475 34.479 35,514 36,579 37,676 S ubi - Water Treatment 955,623 1,139,562 1,318,450 -1,368,137 1,448,962 1,503,800 1,560,625 1,619,505 ONDEPARTMENTAL Materials & Services 79,414 182.767 262.100 269,963 278.062 286,404 291 303,646 Other Financing Uses 3,173,670 650.000 0 0 0 0 0 0 Debt Service: E)eisll 653,275 628,103 653,200 610,590 634.425 605,006 624.155 0 Now 0 0 0 1,364.233 1.364.233 1,364,233 1,364,233 1.364,233 Subtotal - Debt Service 653,275 628.103 653.200 1,974,823 1.998.658 1,969,238 1.988.388 1,364,233 Transfer to Other Funds 936.863 977,788 1,065,409 1,097,371 1,130,292 1,164.201 1,199,127 1.235,101 Capital Outlay (Rate Funded) 886,448 1,099,500 3.604,800 1,164,953 1,220502 1;257,117 1,294,830 1,333,675 Contingency 0 0 75,182 77,437 79.761 82,153 84,618 87,157 Unappropeiated Ending Fund Balance 2,951.775 2,350,041 0 0 0 0 0 0 Subtotal - Nan"mril mrtal 8,681,435 5,888,219 5,660,691 4,604,548 4,707275 4.759.113 4,851.960 4,324.012 TOTAL WATER FUND REVENUE REQUIREMENTS 9.637,058 7,027.781 6,979,141 5,972,686 6,156,237 6262,914 6.422,584 5,943517 Lem OTHER REVENUES (With Tigard) Beglnmtlng Fund Balaruo 2,664239 2,951,775 2,350.041 0 0 0 0 0 Fees 0 0 0 0 0 0 0 0 Sales & Services Meter Installations 79266 89.000 92200 93.125 94.059 95,003 91 96,918 Tigard Oti,M Sham 0 0 502.863 521,431 553,918 574,481 595,767 Interest Income 141,006 127.427 110.000 0 0 0 0 0 Rotrnbursernents 333 504 0 1,900,000 1200,000 700.000 700,000 0 Other Revenues 7,394 10,575 3.000 3.000 3.000 3.000 3.000 3,000 Other Financing Sources 3,210,000 0 867,000 0 0 0 0 0 TOTAL OTHER REVENUES 6,302239 3,179281• 3222241 2.498,988 1,818,491 1,351,919 1,373,437 695,686 NET REQUIRED REVENUES FROM RATES 3,334,819 3,848,500 3,756,9W 3,473,098 4,337,746 4,910,993 5,049.147 5247,831 FORECAST REVENUES FROM RATES Sales & Services oncludes gro+ath & rate increases) Conaaanapr 2,386,538 2,467,000 2,713,600 2,740,823 3,419,144 4261 4,833,868 4,969,851 Bulk Water Sales 968283 1,381,500 1,043,300 71,668 89,402 111,640 126,394 129,950 Subtotal - Forecast Revenues from Rates 3,334,819 1848500 3.758,900 2,812,489 3508506 4.381263 4,960262 5.099,601 REVENUE SURPLUS+DEFICIT(-) 0 0 0 -661209 -829200 -529.732 -88,885 -148,031 DEBT SERVICE COVERAGE. Total Rsvenum 5.972.686 6.156237 6282.914 6.422564 5.943,517 wing E 2.701,987 2.8'1' ,837 2,918,= 3,018,169 3,120.778 Net Operaft Coats 3270.889 3,333,400 3,344,022 3.404.418 2,822.741 Total Annual Debt Servias (Revenue Bonds) 1,384233 1.364233 1.384233 1.364233 1.394233 Actual Debt Servioe Coverage Ratio 2.40 2.44 2.45 2.50 2.07 Required Daft Service Coverage Rash 1.25 1.25 1.25 1.25 1.25 Revenue SurptuslDeficNt(-) with Coverage 0 0 0 0 0 REQUIRED PERCENTAGE INCREASE IN RATES 0.00% 0.00% 0.00% 2351% 23.63% 12.09% 1.79% 2.90°%. PLANNED PERCENTAGE INCREASE IN RATES 0.00% 0.0076 0.00% 23.51% 2363% 12.09% 1.79% 2.90% T601111nrral Moff anckm Ala. 3 3-23 7&S I City of Lake Oswego July 28, 1994 Technical Memorandum No. 3 Cost Analysis of Scenarios 'Fable 3-15 presents a comparison of residential customer water rates for regional water providers. Lake Oswego's current rates are lower than those of surrounding water providers. With the rate increases proposed for either scenario, Lake Oswego's residential customer rates would continue to be equal to or less, than most of the regional providers. Summary and Conclusions This technical memorandum presents the results of the cost comparison between the two water supply options: Scenario 'l - Lake Oswego only, and Scenario 2 - Lake Oswego plus Tigard. Operation and maintenance costs were estimated for each scenario, the O&M costs for Scenario 2were allocated to Lake Oswego and Tigard, and the present worth of the O&M costs was calculated. The value of existing capital assets was estimated using the depreciated replacement value method. The depreciated replacement cost for existing capital assets was then allocated to Lake Oswego and Tigard. The amount allocated to Tigard was assumed to be the amount Tigard would have to pay Lake Oswego to purchase or buy Tigard's share of the existing facilities. New capital costs for Scenario 2 were allocated to Lake Oswego and Tigard. The allocation of capital costs and O&M cost to the two entities was made using a cost of service approach: costs were allocated to base and maximum day followed by allocation.of the base costs and maximum day costs to each entity based on projected average day and maximum day demands. Present worth costs were calculated using both a nominal interest rate and an escalation factor. The salvage value of new capital was determined and used in the calculation of present worth. The results of the present worth analysis indicate that Scenario 2 has a lower total present worth cost for Lake Oswego assuming a buy-in amount from Tigard equal. to its allocated share of existing capital assets. Without the assumed buy-in amount, Lake Oswego's total present worth cost of Scenario 2 ranges from 2.9% less to 7.0% greater than the total present worth of Scenario 1 when evaluated over a. range of escalation factors and interest rates. The initial impacts to Lake Oswego's water rates may be a significant increase in the year 1995-96 for either Scenario. The estimated rate increase in fiscal year 1995-96 for Scenario 1 is 54%. The estimated rate increase in fiscal year 1995-96 for Scenario 2 is 69% assuming receiving an annual reimbursement from Tigard for the assumed buy-in to . the existing system. With the proposed rate increases required for either Scenario 1 or Scenario 2, Lake Oswego's residential customer water rates would be equal to or less than rates charged by other regional providers. The initialPate impacts of Scenario 1 could be reduced if Lake Oswego could continue to sell water to Tigard for the next few years with annual rate increases designed to offset the eventual loss of sales to Tigard. If the City of Lake Oswego selected Scenario 1, it is 3-24 OEM 'fable 3-15 Comparison of Residential Customer Water Rates for Regional Providers Volume Rate Water Providar Basic Customer Char ® $/cc ®r n Ci $12/2 months $1.00 City of West Linn $19/2 months $19 includes 14 $1.10 >14 ccf/2 months Clackamas Water District $3.50/month $0.90 0-4 ccf $1.00 >4-12 c cf $1.25 >12 ccf Ci of Tualatin $6.90/month $0.95 Ci of Beaverton $5.57/month $1.31 City of Portland $1313 months $0.825 <36 ccf/3 months $0.995 >36-60 ccf/3 months $1.235 >60 ccf/3 months C of Lake Oswego Current rates $7.65/month $0.50 Scenario 1 - projected 1996/97 $12:61 $0.824, Scenario 2 - projected 1996/97 $13.26 $0.866 (20-year Buy-In) Motes: All rates are current as of 8/1/94, and are for residential customers with 3/4-inch meters. ccf = hundred cubic feet = 748 gallons Teohntal Memorandum No. 3 3-25 712a94 , 1994 city of Lake Oswego July 28, Technical Memorandum No. 3 Cost Analysis of Scenarios likely that Tigard will continue to purchase some water from Lake Oswego until another source of supply is secured. The initial 69% rate increase projected for Scenario 2 assuming a 20-year buy-in period could be reduced if Tigard were to pay Lake Oswego a lump sum buy-in amount and Lake Oswego utilized the buy-in amount to reduce potential rate increases over the first few years. It is doubtful that Tigard would buy-in to Lake Oswego's existing system without becoming an equal partner in the management of the water supply and treatment facilities. This would require Lake Oswego to join with 'Tigard to form a water supply authority or similar entity established by an intergovernmental agreement; each entity would retain local control of its distribution system and customer billing. Based on the results of the present worth analysis there are long term benefits to Lake Oswego if Scenario 2 were implemented. Operation and maintenance costs are reduced on a per unit of production basis and the costs to customers over the next 26 years will be less than for Scenario 1. Construction of the transmission pipelines required to implement Scenario 2 will cause disruption and inconveniences on local streets and highways. Permitting requirements for a new intake and raw water transmission pipeline crossing of the Willamette may also be difficult, but will be required for ei'her Scenario and may be easier to obtain within the next few years (Scenario 2) when compared to permitting in the year 2010 (Scenario 1). 3-26 MUM . - . +i;` L' _ , . " . • _ . . - . : r` , , • . - . If: • - . . , 11 . • • - _ 'S' - . ; , . . " - - ' i'" ~ ' , J.; ' . _ . - - .y . - ' - . '-1• - • f . - - - - ,I_ - - - ' •I• . 1 , -3. i. - - - . - ' - I - •S ,l • - - . F - ti' . j:: " . . 'i - . - - l - - ' - V, / - - - - - - ,i - - i. _ . i t . i'L' { - , f,-1 - -1 . .•1 S'' - C' if " .--r • - - ' _ _ . S' - _ - I r' - :`t } t , 1', I I L , . . ~ , ~W.. - - , ~ ~ . , ! . - - , 1. I . '1' r.. MA m - - , . . . , ~ - , - " - - - - - - . - , . I - : I - I . ~ - .1 : I I - . I ~ . 1, II6 - , ~ - : ; z , % - ~ ~ . , , . . , - ~ a - , ~ . I ~ . I - q I ~ - - _ - - _ - - : ORNMEM Ill: 1~ 1, III I OEM= ~ i Ii 1 ~ ~ mm- ;,I His= °RT IAty C17Y OF Mike Undberg, Commissioner a i Michael F. Rosenberger, Administrator r%00~r u LAND, 01 11 1120 S.W. 5th Avenue r* _ Portland, Oregon 97204.1926 BUREAU OF WATER WORKS Information (503) 823.740A 1851 RE CE I E- D July 20, 1994 Mr. Mike Miller City of Tigard MURRAY, SMITH & ASSOCIATES, INC. 13125 S.W. Hall Blvd. Tigard, Ore. 97223 Dear Mr. Miller: I am writing in response to your inquiries about the City of Tigard increasing its level of water purchases from the City of Portland. Our analysis of the District contract is that it is probably assignable under the facts as we know them. The issue of whether the contract has actually been assigned is not quite as clear although the intent to do so is expressed in your joint intergovernmental agreements with the District, King City, and Durham. We would suggest that you make this clear by taking whatever actions are called for in the intergovernmental agreements. In addition, it is our understanding that, assuming an assignment has taken place, that our existing contractual obligation to provide water to the District is completely extinguished and we are dealing with the City of Tigard based upon that understanding. In other words, our contractual obligation under the District's original agreement, now runs to the City of Tigard only. Your intergovernmental agreements would seem to have contemplated this fact by transferring the obligations to provide water to the City of Tigard. We would like to meet with the appropriate representatives from the City of Tigard to discuss two issues related to increases in the amount of water historically taken by the District. Your relatively recent interest in greatly increasing the historical amounts of water taken from Portland is of interest to us and something we wish to discuss further. In this regard we would like to meet to discuss the City of Tigard's growing reliance on Portland water and its commensurate decrease in reliance on Lake Oswego water. We are interested in supplying the City of Tigard but must keep in mind other existing contractual obligations. We would like to discuss the relationship of your demands to both our system and the Lake Oswego system and possible actions to reduce your total demand through conservation and pricing so that we can assure all of our customers that we are minimizing the extent of any increased risk of shortfall as much as passible. • The second issue is that we want to be clear about the relationship of any increased reliance on the Portland system and the outcomes A of the Phase 2 Regional Water Supply Plan. We want to have a clear understanding that long term supply decisions might require either a renegotiation of the current contract or a different perspective on the negotiation of any subsequent contractual relationship. I hope that this approach meets your needs. Please contact Bob Rieck (823-7454) or Jim Doane (823-7505) at your earliest convenience about a follow-up meeting. Sincerely Yours, 1 Michael Rosenberger, Administrator Bureau of Water Works cc: Tigard Water District Mike Miller Bureau staff gill FM SEEMANINEM, CNN M E M O R A N D U M TIGARD POLICE DEPAR'?'MENT TO: Bill Monahan City Administrator FROM: Ronald D. Goodpaster~ Chief of Police DATE: August 29, 1994 SUBJECT: Homeless Task Force The below listed people have been contacted and have expressed interest in serving on this task force. Mr. Wes Taylor, Pastor Tigard Methodist Church 9845 SW Walnut Pl. Tigard, OR 97223 639-3181 S. Carolyn Long, Director Tigard Chamber of Commerce 12420 SW Main St. Tigard, OR 97223 639-1656 Deanne and Richard Jones Labor Ready 9818 SE Powell Portland, OR 97266 762-0838 Rick Peltzier Oregon Drive Axel Supply 22533 SW Main Tigard, OR 97223 639-7762 Rob Blakely, Pastor Tigard Christian Church 13405 SW Hall Blvd. Tigard, OR 97223 590-5002 Rim Brown, Executive Director Inter Faith Outreach Services P. O. Box 230821 Tigard, OR 97281' 598-°0359 i r , i August 25, 1954 Page two Jack Schwab Conrad Pearson and Associates 10300 SW Greenburg Rd., Suite 275 Tigard, OR 97223 245-5220 Sgt. Chuck Martin Tigard Police Department I also believe that Councilor Paul Hunt expressed interest in serving on this task force committee. cc; Sgt. Martin COUNCIL AGENDA ITEM - CITY OF TIGARD, OREGON COUNCIL AGENDA ITEM SUMMARY AGENDA OF: _August 30. 1994 DATE SUBMITTED: ISSUE/AGENDA TITLE: Camping PREVIOUS ACTION: Prohibited Ordinance PREPARED BY: Ronald D. Goodpaster DEPT FdEpiD OR CITY ADMIN OK ls^r REQUESTED BY: Ronald D. Goodpaster ISSUE-BEFORE THE COUNCIL - Approve ordinance prohibiting camping in public right of ways, streets, alleys, lanes or places which the general public has access to. To provide notice of abatement and opportunity to retrieve personal property. STAFF RECOMMENDATION Recommend approval. INFORMATION SUMMARY The amendment to Chapter 7 TMC allows the abatement of illegal camp sites that have become a health hazard or where illegal activities are occurring. The City currently has no prohibitions against camping in public places and has to rely solely on nuisance ordinances. PROPOSED ALTERNATIVES Not approve. FISCAL NOTES None. 1 t CITY OF TIGARD ORDINANCE NO. 94- AN ORDINANCE AMENDING TITLE 7 OF THE TIGARD MUNICIPAL CODE BY ADOPTING CHAPTER 7.80, CAMPING PROHIBITED IN CERTAIN PLACES AND DECLARING AN EMERGENCY. WHEREAS, the City of Tigard finds that it is in the best interest of the public peace, safety and health to prohibit camping in publicly accessible places; and WHEREAS, the City of Tigard finds that camping in prohibited places is a nuisance;' and WHEREAS, the City of Tigard wishes to abate illegal campsites in a manner which provides notice of the abatement and an opportunity to retrieve items of personal property; WHEREAS, the City is willing to abate such nuisances; now, u therefore: THE CITY OF TIGARD ORDAINS AS FOLLOWS: SECTION 1: Chapter 7.80 of the Tigard Municipal Code shall read as follows: Section 7.80.010 Definitions. As used in this Chapter: (1) "to camp" means to set up, or to remain in or at, a campsite. (2) "campsite" means any place where any bedding, sleeping bag, or other sleeping matter, or any stove or fire, is placed, established, or maintained, whether or not such place incorporates the use of any tent, lean-to, shack, or any other structure, or any vehicle or part thereof. (3) "personal property" means items which are reasonably recognizable as belonging to individual persons and which have apparent utility. (4) "junk" means items which have no apparent utility or are in an unsanitary condition. Ordinance No. 94- Page 1 Sectlgn 7 80 020 ggmpina Prohibited in Certain EjAceq. It is unlawful for any person to camp in or upon any sidewalk, street, alley, lane, public right of way, transit facility or bus shelter, or any other place to which the general public has access, or under any bridgeway or viaduct, unless otherwise specifically authorized by this City or by declaration by the Mayor in emergency circumstances. Nothing in this chapter shall prohibit the use of designated picnic areas of o~ C on pv public property for c? .Xo,j or Section 7.8 .030 Scheduling and Notice f Camosite Cleanuu. (1) Cleanup of illegal campsites will be scheduled on an as-needed basis by the Chief of Police or a designee. Cleanups at sites where permanent signs are posted, as described in Subsection 2 of this section, cannot occur any more frequently than once every ten (10) days except as provided otherwise herein. (2) In locations where campsites are regularly established, permanent signs may be posted announcing that personal property will be removed and stored. Once the permanent sign is erected, no edr k, further notice is required in order to cleanup O illegal campsites in the area. In areas where no ~ permanent sign is posted, notice will be posted and PC distributed in the area of the scheduled cleanup at least twenty-four (24) hours before the cleanup. X19+ ~~9~A (3) Notwithstanding subsections (1) and (2) of this section, cleanup of campsitesg where the following conditions exist, as determined by the Chief of Police or his or her designee, may take place, as necessary, without notice: (a) conditions which are unsanitary or cause offensive odors, such that an immediate threat to public health exists; and (b) conditions of illegal activity. (4) At the time of the cleanup, written notice will be posted and distributed announcing the telephone number where information on picking up the stored property can be obtained during normal business hours. Ordinance No. 94- Page 2 iff,mg Bid= (5) Written notices, including permanent signs, will be in both English and Spanish.. Section 7 80 040 Removal Storage and Retrieval of Personal Property. (1) Personal property as defined by this Chapter, will be separated during cleanups from junk. Junk will be immediately discarded. Items of personal property will be - turned over to the Police Department and stored. The personal property shall be stored for no less than ten (10) days, during which time it will be reasonably available to persons claiming ownership of the personal property. (2) The Police Department shall arrange in advance for 'a location to store personal property. The storage facility should be reasonably secure. The location should be reasonably accessible to the cleanup area and preferably served by public transportation. (3) Any personal property that remains unclaimed for ten (10) days after the cleanup shall be disposed of or sold. Such disposal or sale shall take place pursuant to Section 2.52.030 of this code, except that the items need not be held for the 90 day period described therein. (4) Weapons, drug paraphernalia, and items which reasonably appear to be either stolen or evidence of a crime may be retained by the Police Department. Section 7 80 050 Camping in Railroad Right of Way. The City has the authority to abate illegal camping located in a railroad right of way provided that the City has been given such authority by the owner of the railroad property. _Section 7.80.060 Violation. Violation of this chapter is a nuisance affecting public health as described in section 7.40.030(b) of this code. Such violation is a Class 1 civil infraction and may be processed under chapter 1.16, civil Infractions. Section 7.80.070 Nonexclusive Remedy. The remedy described in this Chapter shall not be the exclusive remedy of the City for the acts described herein. Ordinance No. 94-M Page 3 SECTION 2: Because prompt implementation of this ordinance is necessary for the peace, health, and safety of the people of the City of Tigard, an emergency is declared to exist, and this ordinance is effective upon its passage by the Council. PASSED: By vote of all Council members present after being read by number and title only, this day of , 1994. Catherine Wheatley, City Recorder APPROVED: This day of , 1994. -T Schwartz, Mayor rpr- - Approved as to form: City Attorney Date tkw\ach\90024\campmg 55 Ordinance No. 94- Page 4 o MEMORANDUM CITY OF TIGARD, OREGON TO: Mayor and City Councilors FROM: Janice Deardorff, Human Resources Director DATE: August 30, 1994 SUBJECT: City Administrator Recruitment By way of update to you on the City Administrator_ recruitment process, I wanted to let you know that Noel Klein and I will be ready to meet with you next week to review the applications. We received 146 letters of interest with 42 of these submitting responses to the supplemental questionnaire. Noel and I have selected 17 candidates for you to review. We will review the total pool of candidates one last time this week to be sure we have selected the best candidates available for your review. If you could take a minute tonight and coordinate a date and time to meet (I would assume two hours), I will arrange for you to receive copies of the applications in advance of our meeting. There is a lot of material to read so giving you the materials in advance will help expedite the discussion and selection process. I will make myself available to you anytime next week. If you would like to meet in the evening, I can do that as well except for Thursday, September 8, 1994. Noel said he will work with your schedule as well. I think you will be very pleased with the applicants and look forward to working with you on the next phase of our recruitment and selection process.