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City Council Minutes - 11/14/2011 ■ City of Tigard ' Tigard City Council Special Meeting - Minutes TIGARD AND LAKE OSWEGO JOINT CITY COUNCIL MEETING MEETING DATE AND November 14, 2011 — 7 p.m. TIME: MEETING LOCATION: City of Tigard - Town Hall - 13125 SW Hall Blvd., Tigard, OR 97223 1. SPECIAL MEETING SCJ Mayor Dirksen called the meeting to order at 7:06 p.m. Roll Call: Tigard City Council Name Present Absent Mayor Dirksen ✓ Council President Buehner ✓ Councilor Henderson ✓ Councilor Wilson ✓ Councilor Woodard ✓ Lake Oswego City Council: Name Present Absent Mayor Hoffman ✓ Councilor Gudman ✓ Councilor Jordan ✓ Councilor Kehoe ✓ Councilor Moncrieff ✓ Councilor Olson ✓ Councilor Tierney ✓ 2. INTRODUCTIONS ICJ Mayor Dirksen asked that people attending give a self-introduction. Staff attending the meeting included the following: TIGARD CITY COUNCIL/LAKE OSWEGO CITY COUNCIL JOINT MEETING MINUTES —November 14, 2011 City of Tigard 1 13125 SW Hall Blvd.,Tigard,OR 97223 1 www.tigard-or.gov Page 1 of City of Tigard: Interim City Manager Newton,Public Works Director Koellermeier,Finance and Information Services Department Director LaFrance,Utility Division Manager Goodrich City of Lake Oswego: City Manager McIntyre,City Attorney Powell,Project Director Komarek,Communications Director for the Lake Oswego/Tigard Water Partnership Heisler 3. PROGRAM PURPOSE (REVIEW) Documents,prepared for this special meeting,are on file in the council meeting packet. • Council Report—dated November 9,2011, from Joel B. Komarek,Project Director for the Lake Oswego-Tigard Water Partnership regarding the Lake Oswego-Tigard Water Supply Expansion Project—Implementation Update. • PowerPoint Slides—Lake Oswego-Tigard Water Partnership—Water Program Update Joint Council Meeting—November 14,2011. Lake Oswego City Engineer Komarek presented the staff report. • Work commenced on the project in 2008,when the communities of Lake Oswego and Tigard entered into an Intergovernmental Agreement to jointly plan, finance,construct and operate an expanded water supply system for the benefit of both communities. • Water program overview of existing facilities: o Clackamas River intake is located in the City of Gladstone. The water is pumped across the Willamette River through a 27-inch diameter pipeline to the treatment plant located in West Linn. o The current capacity of the treatment plant is 16 mgd. o The treated water is pumped through a 24-inch diameter finished water pipeline to the west side of the City of Lake Oswego to the terminal reservoir,Waluga Reservoir. o Tigard has a connection to the Waluga Reservoir,which is pumped into the Tigard community's distribution system. o The existing system was built in the mid- to late-1960's. • Reviewed a concept rendering of River Intake Pump Station (RIPS) that will replace the existing station. This rendering was presented to the City of Gladstone Planning Commission several months ago as part of the conditional use and design review process. This concept was approved by the Gladstone Planning Commission and is being used for final design preparation. The land use process for the station is complete. Currently environmental permitting efforts are underway. • Reviewed a map of the wide range of alternatives evaluated for the raw water pipeline system (intake) for the water treatment plant. TIGARD CITY COUNCIL/LAKE OSWEGO CITY COUNCIL JOINT MEETING MINUTES —November 14, 2011 City of Tigard 1 13125 SW Hall Blvd.,Tigard,OR 97223 1 www.tigard-or.gov Page 2 of • Reviewed the finalized alternatives for the raw water pipeline: o Preferred option is the Hull Avenue to Mapleton Drive alignment. o Another option is the Meldrum Bar Park to Mary S.Young Park if an issue arises that would preclude the preferred option. • Reviewed the raw water pipeline considerations (Slide 7). • Reviewed preliminary and current site plans of the water treatment plant(Slides 8 and 9). • Reviewed artist renderings of vantage points of the water treatment plant site. • Reviewed the preliminary design considerations for the water treatment plant (Slide 15). • Revised schedule predicts the plant will take about 28 months to build (originally anticipated 24 months). • Reviewed the current alignment and work needed soon for the finished water pipeline connecting the water treatment plant to the Waluga Reservoir(Slide 15). • Reviewed the recommended Waluga Reservoir 2 site location for a 3.5 million gallon tank that will provide storage not only for Lake Oswego but for Tigard from which to draw for the new Bonita Pump Station. Tigard Public Works Director Koellermeier commented on Slides 20 and 21 for the new Bonita Pump Station: • Reviewed that the best site has been located for a reservoir. The station will be relocated from the existing site,which was too small. • Reviewed the features of the station. • Reviewed plans to address storage and water age issues. • Reviewed the supply connections,work done to acquire property,and plans to begin construction in April 2014,which is later than originally planned but will mitigate cash flow compression. Lake Oswego City Engineer Komarek: • Reviewed the updated schedule (Slide 22),which was revised to better manage the resources and cash flow. • Reviewed that the plans are for the project to be completed well in advance of July 1,2016. • Reviewed the financial status (Slide 23). The partnership has spent a total of a little over$13 million. • Reviewed the key events/issues for the next six months (Slide 24). The plan is to use an alternative delivery method to procure the services of a horizontal directional drilling(HDD) contractor,as opposed to a conventional design/bid/build delivery approach—this process will begin the first quarter of 2012. • Reviewed the status of the water rights appeals process. First briefings to the appeals court are due later in November. • Reviewed that both Tigard and Lake Oswego will be positioning themselves and looking for their first bond issues: for Tigard,February 2012 bond issue; for Lake Oswego,a late second or early third quarter bond issue. TIGARD CITY COUNCIULAKE OSWEGO CITY COUNCIL JOINT MEETING MINUTES—November 14, 2011 City of Tigard J 13125 SW Hall Blvd.,Tigard,OR 97223 1 www.tigard-or.gov Page 3 of ® Communications Director Heisler: • Reviewed the 2011 public outreach priorities (Slide 25). • Reviewed target audiences and methods (Slide 26). • Reviewed public outreach and communications in efforts to create broad community support. (Slides 27 and 28). Questions/Comments: • Councilor Jordan asked how much energy would the solar panels produce and whether it makes sense to do more than what is required by state law. Lake Oswego City Engineer Komarek said he did not have the answer about how much energy the solar panels will produce as the panels have not been designed. He said they made an estimate using the administrative rule as to what"one percent"means in terms of the investment amount. One percent equals$250,000. From that the engineers determined the number of panels that can be purchased and located on the treatment plant roof. At this time,the plans are for the required one percent,although it is possible more could be done. Councilor Jordan said it would be interesting to know what the trade-off is and if there is capacity. • Councilor Jordan requested information about the decision to procure a horizontal directional drilling(HDD) contractor,rather than using a design/bid/build process. Lake Oswego City Engineer Komarek said for all facilities,other than the two HDD crossings, construction will be approached as a conventional design/bid/build with prequalification of contractors bidding on the major elements of work. The HDD projects are specialized and there is a smaller pool of qualified contractors. The partnership wants to make a decision based on factors that includes price. They want to select the contractor that brings the best combination of technical expertise,qualifications and price. They will use a competitive proposal approach to procure services. • Councilor Jordan commented on a remark by one of the Gladstone City Council members regarding drilling under a community garden if the preferred alternative alignment for the pipeline is used. During discussion it was noted the preferred alignment would not affect any garden areas. • Councilor Wilson referred to the 30 percent cost estimates due in the first half of 2012. He asked when was the last cost estimate done—have there been interim cost estimates?Lake Oswego City Engineer Komarek said the last program cost estimate was in November 2010. For purposes of rate setting and revenue requirements,this estimate (cash flow forecasting) was updated in March 2011 and again in September 2011,to make sure both communities were collecting sufficient revenue to support debt issues for 2012. When the schedule shifted,cash flow was reanalyzed to make sure the timing of the revenues was appropriate to the expenditures. The forecasts utilized many of the same assumptions used to develop the November 2010 estimate. When the 30 percent design development estimates are received from the design firms, forecasting can be predicted using the updated information. • Councilor Moncrieff followed up on Councilor Jordan's comments to support use of solar energy. She referred to the report that the existing water plant consumes about 55 percent TIGARD CITY COUNCIL/LAKE OSWEGO CITY COUNCIL JOINT MEETING MINUTES —November 14, 2011 City of Tigard 1 13125 SW Hall Blvd.,Tigard,OR 97223 1 www.tigard-or.gov Page 4 of of the electricity used in Lake Oswego and energy costs have risen by 17 percent over the past year. She said she supports any efforts to minimize operating costs and to use the best technology. Lake Oswego City Engineer Komarek agreed this was a good point and said they were looking into a variety of sustainable practices for the plant. Primary objectives for the overall project were for a long operating life with low lifecycle costs. In addition to solar energy,they are also exploring opportunities for heat recovery. The plant design team includes a special group with a focus on sustainability. There has been discussion to go about the project so if the decision was made to seek a LEED (Leadership in Energy and Environmental Design) certification,it would be possible. Tigard Public Works Director Koellermeier said installation of solar panels has to be balanced with land use issues,such as buffering and screening. He referred to other sustainable features including natural lighting and things learned by visits to other plants—there will be many opportunities to institute sustainable practices in a variety of ways. • Councilor Kehoe noted his support of the sustainable practices under discussion tonight. He urged a little caution regarding solar use noting his experience that,in general,solar panels do not generate enough electricity to justify the cost unless there are tax subsidies. He noted the need to keep the total cost of the project as low as possible for the citizens. • Tigard Council President Buehner said she understands that over the last year there was an extensive value engineering process to evaluate the possibility of different ways to approach components of the plant or other parts of the project. She asked if Lake Oswego City Engineer Komarek received information for positive changes that might make the project more efficient and save money. Mr. Komarek said one of the recommendations for the Plant was to consider using a somewhat new technology for water treatment that would dewater the silts and clay materials produced from the treated water. The original assumption was to use centrifuges to dry out solids;however,there is the possibility to use a screw press. While a screw press is used throughout the wastewater industry,there is little information about its use for drinking water. They have asked screw press vendors if they would be interested in a pilot test on the types of solids generated in the water treatment plant. They have talked with the City of Wilsonville to determine if they would be interested in facilitating the pilot project since they produce the same kinds of solids that will be produced in this plant. On a life cycle basis,the screw press has a better return on investment than the centrifuges,but they require a larger building to house them. The screw presses are easier to operate and maintain. • Councilor Henderson asked for additional information on potential geotechnical problems. Lake Oswego City Engineer Komarek said they recently completed investigatory borings and analyses of the information for the plant site. About 25 feet below the site,there are soils that the engineers say are potentially liquefiable in a seismic event. This needs to be considered when designing the project structures,particularly those that are water bearing,so the amount of settlement that would occur after construction and a post-seismic event would be minimized. This translates to the type of foundation to be constructed and they are exploring options at this time including examining how this will impact costs. • Councilor Wilson questioned whether a contractor should be procured early on to flush out some of the constructability issues. Lake Oswego City Engineer Komarek said the team TIGARD CITY COUNCIL/LAKE OSWEGO CITY COUNCIL JOINT MEETING MINUTES —November 14, 2011 City of Tigard 1 13125 SW Hall Blvd.,Tigard,OR 97223 1 www.tigard-or.gov Page 5 of 7 i talked about this at length and there was a time when an alternative delivery was under consideration for the water treatment plant. In the end,they decided there was not a compelling reason for this plant site to move forward with alternative delivery. With a robust prequalification process,they can manage the risk. In response to a question from Councilor Wilson,Lake Oswego City Engineer Komarek said he did not have a cost premium figure for a compact footprint versus the more spread out earlier version. Generally,it might mean that they will have to construct a new structure adjacent to an existing structure that will have to remain in service. He agreed there is a cost to the compact footprint,but no cost comparison was done. • Public Works Director Koellermeier reported that the design standards with regard to settlement are rigid. • Councilor Gudman asked about the response from the West Linn neighborhood when the design features of the water treatment plant were presented. Ms. Heisler said they received a lot of positive comments. Some people appeared to be happy with the compact footprint since the structures would be located farther away from their property and with the additional landscape buffers that are planned. There remains a group of people who would prefer that the plant be moved to Lake Oswego. • Councilor Gudman asked about the discount rate used for the analysis. Lake Oswego City Engineer Komarek said they have been carrying a 4.4 percent discount rate for all of the net present value analysis work. 4. WATER RIGHTS UPDATE Lake Oswego City Engineer Komarek reviewed: • The record generated by the contested case hearing in March 2010 was consolidated and entered into the record at the appellate court. • A briefing schedule was set by Judge Brewer. Briefings are due November 28. • It is anticipated that the petitioner,Water Watch,will be requesting an extension to the submittal date for their briefing. If granted,the extension period can range from 30-60 days. 19 5. SCHEDULE UPDATE/ISSUES Lake Oswego City Engineer Komarek reported they are on schedule. Some things are being moved around to manage cash flow and resource allocations. They still anticipate a completion date well ahead of July 1,2016. 19 6. QUESTIONS/COMMENTS • Councilor Jordan said she is impressed with the new water treatment plant footprint—it is a positive step. TIGARD CITY COUNCIL/LAKE OSWEGO CITY COUNCIL JOINT MEETING MINUTES —November 14, 2011 City of Tigard 1 13125 SW Hall Blvd.,Tigard,OR 97223 1 www.dgard-or.gov Page 6of7 • Mayor Dirksen suggested another joint meeting around July. This would be about the time the 30 percent design review will be available for evaluation. Mayor Hoffman agreed that Lake Oswego would host the next meeting. • Tigard Council President Buehner commented that the Oversight Committee members have had an opportunity to learn about various kinds of filtration systems. The new flocculation process is part of the reason the treatment plant footprint can be reduced and should result in cost savings. • Lake Oswego Mayor Hoffman said he attended the National League of Cities conference last week. He attended a presentation facilitated by a person from the Clean Water America Alliance. The subject included information on a change in the way people view water. Points brought forward by the speaker included: o To be sustainable,we have to build systems that last. o New regulations are forthcoming and he advocated including the full true cost of water. Most cities'charges for drinking and wastewater represent one percent or less of the median household income. However,EPA is suggesting that to catch up with infrastructure,a reasonable monthly charge would be two percent for wastewater charges and two percent for drinking water. This cost is lower than services to provide television,cell phones or energy. o Children should never fear that they will not have glass of clean water. o In the 1950's there was a nationwide construction of water pipe projects with a life expectancy of 50 to 75 years. In the 1970's and 1980's there was a lot of construction of water treatment plants throughout the country,with a 25 to 50 year life cycle.A new wave of infrastructure investment is needed. $250 billion will be needed to replace water infrastructure nationally. o Local entities now fund 90 to 95 percent of infrastructure. o In the USA,a water main breaks every two minutes. 7. ADJOURNMENT Mayor Dirksen adjourned the meeting at 8:14 p.m. Catherine Wheatley,City Recorder Attest: *try'or,City of Tigard Date: J/a'Ila o/nZ I:\adm\cathy\ccm\2011\final minutes\11 november\111114 fiml.docx TIGARD CITY COUNCILMAKE OSWEGO CITY COUNCIL JOINT MEETING MINUTES —November 14, 2011 City of Tigard 1 13125 SW Hall Blvd.,Tigard,OR 97223 1 www.tigard-or.gov Page 7 of