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01/13/2010 - Packet
Completeness Review °9 for Boards Commissions y and Committee Records CITY OF TIGARD Intergovernmental Water Board Name of Board, Commission or Committee �ar►..�l.. 13. -La I a Date of Meeting To the best of my knowledge this is the complete meeting packet. I was not the meeting organizer nor did I attend the meeting;I am simply the employee preparing the paper record for archiving.This record came from Greer Gaston's office in the Public Works Building. Kristie Peerman Print Name Signature Date Intergovernmental Water Board — Agenda SERVING TIGARD, KING CITY,DURHAM AND THE UNINCORPORATED AREA MEETING DATE: Wednesday,January 13, 2010, 5:30 p.m. MEETING LOCATION: Tigard Public Works Building 8777 SW Burnham Street Tigard, OR 97223 1. Call to Order, Roll Call and Introductions Call the meeting to order, staff to conduct roll call. 2. Approval of Minutes — December 9, 2009 Action: Motion to approve the December 9, 2009 minutes. 3. Public Comments Call for comments from the public. 4. Member-at-Large Position Candidates Each candidate to address the Board for a max of five minutes, explaining why they are interested in the appointment. - Paul Ardnson - Steve Huynh - Jill Rosenberg - Michael Stone - Gary Strealy 5. Water Supply Update -John Goodrich 6. Motion to Withdrawal from the Joint Water Commission— Dennis Koellermeier 7. Informational Items • Update from Commissioner Buehner on Lake Oswego/City of Tigard Oversight Committee activities. • Copy of the letter to the Portland Water Bureau • Tigard Water District Board Voting Requirement 8. Non-Agenda Items Call for non-agenda items from the Board. 9. Presentation of Draft 1993 Intergovernmental Agreements between Durham and the City of Tigard, King City and the City of Tigard, and the Tigard Water District and the City of Tigard - Commissioner Scheiderich Action: No action required. INTERGOVERNMENTAL WATER BOARD AGENDA-JANUARY 13, 2010 City of Tigard 1 13125 SW Hall Blvd.,Tigard, OR 97223 1 503-639-4171 1 www.tigard-or.gov I Page 1 oft 10. Future Agenda Items Schedule Date Item To Be Announced Consider an Anchor Easement with PGE Company on the Public Works Building Property To Be Announced Additional Tenancy in Common Agreements for Properties within the Tigard Water Service Area. To Be Announced Approve Water System Master Plan 11. Next Meeting: ■February 10, 2010 at 5:30 p.m. Tigard Public Works Building, 8777 SW Burnham Street, Tigard, Oregon 12. Adjournment Action: Motion for adjournment. Executive Session The Intergovernmental Water Board may go into Executive Session. If an Executive Session is called to order, the appropriate ORS citation will be announced identifying the applicable statute. All discussions are confidential and those present may disclose nothing from the Session. Representatives of the news media are allowed to attend Executive Sessions, as provided by ORS 192.660(4), but must not disclose any information discussed. No Executive Session may be held for the purpose of taking any final action or making any final decision. Executive Sessions are closed to the public. INTERGOVERNMENTAL WATER BOARD AGENDA-JANUARY 13, 2010 City of Tigard 1 13125 SW Hall Blvd.,Tigard, OR 97223 1 503-639-4171 1 www.tigard-or.gov I Page 2 oft Intergovernmental Water Board (IWB) Meeting Minutes January 13, 2010 Tigard Public Works Building 8777 SW Burnham Street Tigard, OR 97223 Members Present: Gretchen Buehner Representing the City of Tigard Patrick Carroll Representing the City of Durham Ken Henschel Representing the Tigard Water District Dick Winn Representing the City of King City Bill Scheiderich Member At-Large Members Absent: None Staff Present: Public Works Director Dennis Koellermeier Utility Division Manager John Goodrich IWB Recorder Kathy Mollusky 1. Call to Order, Roll Call and Introductions Commissioner Carroll called the meeting to order at 5:27 p.m. 2. Approval of Minutes — December 9, 2009 Commissioner Buehner motioned to approve the December 9, 2009 minutes; Commissioner Winn seconded the motion with changes as noted. The minutes were approved, as amended, by unanimous vote of the Commissioners present, with Commissioners Buehner, Carroll, Henschel, Scheiderich and Winn voting yes. 3. Public Comments: None 4. Member-at-Large Position Candidates Paul Aronson, Jill Rosenberg, Michael Stone, and Gary Strealy each had five minutes to address the board as to why they are interested in the member-at-large position and ask any questions of the current Board members. Steve Huynh, another candidate, was not in attendance. 5. Water Supply Update • Mr. Goodrich reported that water demand is currently 4 million gallons per day (mgd). Aquifer storage and Recovery (ASR) 2 injection is at 1.5 mgd. The injection is ending this week because we have reached capacity, 160 million gallons (mg). Tigard has a total of 260 mg of water in storage, or 107 days supply at the current rate of consumption, at ASR 2. • The City is switching over to ASR 1 which has been operating as a native groundwater well for the last year and a half. Utilizing native groundwater is cheaper than purchasing Intergovernmental Water Board Minutes January 13,2010 1 water. It does not have to be pumped in and out. The target goal for ASR 1 is 100 mg. Eight hundred gpm will be injected into ASR 1 which translates to around one mgd. • The native groundwater has been tested, there are no health hazards. There is a change in hardness noticed by citizens closest to the well. • There are three wells in operation. One that stores native groundwater and two ASR wells. ASR 3 (the fourth well)will be designed starting in July. • Currently, the ASR wells are not a primary water source. The ASRs are designed to eventually be used as a primary source of water for us, not just a peak use or emergency supply. When operational with Lake Oswego, we will not have peaking costs like those that we have now. Tigard will be an owner receiving water at operation costs. • No requirement for fire suppression in Oregon. OAR states must have certain amount of storage capacity. The City of Tigard (Tigard) is storage rich. We currently have two to three days of storage above ground, not counting ASR. • The 550' pump station is the main pump station that moves water from the 10-million water reservoir on Bull Mountain Road to higher elevations. It pumps water to two different elevations; it will be half of our water supply. It will cost $4.8 million to build. The money is coming from an American Recovery and Reinvestment Act (ARRA) grant we won. Half the grant is "forgivable loan" money, half of it is a low interest loan that is subsidized down to 1% or so. The money budgeted to use on this project is now going to pay off operating the Lake Oswego project for one year. Very few municipalities were able to tap into this fund money. 6. Motion to Withdrawal from the Joint Water Commission Mr. Koellermeier stated the process of withdrawing from the Joint Water Commission (JWC) is concluded. A requirement of being a member of the JWC is investing in the Haag Lake project, so we withdrew. The previous $134,000 JWC dues paid out of water capital improvement funds for JWC real estate holdings will go back into the fund. Commissioner Buehner moved that the Board recommend approving Resolution 10- XX withdrawing the City of Tigard from the Joint Water Commission, Commissioner Henschel second the motion. The motion was approved by unanimous vote of the Commissioners present, with Commissioners Buehner, Carroll, Henschel, Scheiderich and Winn voting yes. 7. Informational Items a. Update from Commissioner Buehner on Lake Oswego/City of Tigard Oversight Committee activities. • Commissioner Buehner reported on the joint meeting, referring to the PowerPoint presentation and oversight committee report handouts included in meeting minute files, stating a firm was hired to run the project. The Values & Principles handout may need to be updated since the relationship has changed. Commissioner Buehner would like to be informed of any changes needed. The draft environmental process will come back to committee for finalization. • Public outreach information needs to get out in front of misinformation campaign. For instance, a public health expert is needed to talk about the chemistry involved. Some groups are not interested in facts. Some groups get upset about ancillary issues like less water for fish. Experts need to be available to address those issues. • Mr. Koellermeier is concerned decisions are made based on technical experts and then a citizen group creates a political issue to stop progress. The schedule is rather aggressive; we cannot allow public misinformation to make us miss the two-year deadline. The cities are expecting legal challenges. Money is budgeted in the capital Intergovernmental Water Board Minutes January 13,2010 2 budget for the Lake Oswego partnership. The Waterwatch lawsuit, stating we cannot take any additional water out of the river, has been going on for about two years. Southfork Water Board is arguing constitutional issues. Tigard joined with Lake Oswego and North Clackamas Water Commission's legal firm, Bateman Seidel. The lawsuit hearings should occur in March. State agencies are also involved in our defense. b. Copy of the letter from the Portland Water Bureau • A copy of the letter received from the Portland Water Bureau (PWB) regarding the November 28, 2009 Boil Water Incident is enclosed in the packet. Mr. Koellermeier and Mr. Goodrich wrote a good letter. Mr. Koellermeier is in contact with the PWB Administrator. • Tigard is working on the IWB contact information procedure, the protocol of who needs what information when. Tigard will complete the communication plan in one month. c. Tigard Water District Board Voting Requirements Commissioner Henschel reported he would get back to the Board next month. 8. Non-Agenda Items • Since Commissioner Scheiderich is resigning, the IWB needs to appoint a new representative to the West Bull Mountain Technical Advisory Committee, who will need to attend the next meeting on February 11. Commissioner Buehner nominated Commissioner Winn to be the IWB representative to the West Bull Mountain Technical Advisory Committee; Commissioner Carroll seconded. The motion passed by unanimous vote of the Commissioners present, with Commissioners Buehner, Carroll, Scheiderich and Winn voting yes. Commissioner Henschel abstained. • Mr. Goodrich is working on modifications to rights in the Groundwater Rights book. The water rights are still in Tigard Water District's (TWD) name. An affidavit of consent is required from TWD. Water rights were not discussed in the 1994 agreement. • How would the IWB like to approach water right issues, as a system asset? Whose name should the assets be held in? Mr. Goodrich has until Feb 5th to get consent. He is going to ask Oregon Water Resources Department (OWRD)for an extension of time. The Board considered adding discussion about water rights and water right issues in the new IGA. • Groundwater rights are generally associated with each individual well. The City is trying to change diversion points to utilize all the water rights in any well in the system. Instead of being able to only pull 400 gallons per minute (gpm)from ASR 1, and 600 gpm from ASR 2, Tigard wants to be able to pull 800 gpm at ASR 2. • The City is trying to modify the two wells located at Canterbury. The property was put into joint tenancy last year as part of the sale agreement. Water rights do not automatically transfer with ownership, it is a different process. Staff could have initiated the change when the property deed changed to a tenancy-in-common. The question is, can water rights be in a tenancy-in-common? Staff suggests the water rights be put in the City of Tigard's name and have the IGA state that it is a system asset. Commissioner Carroll feels this would be a benefit to all members as a tenancy-in- common. Commissioner Winn wants water rights to go to Tigard, rather than a tenancy- in-common agreement. • The second well, ASR 2, is located on 119th Avenue (private drive). This property was annexed into Tigard; however, the property is still in TWD's name. This property is on Intergovernmental Water Board Minutes January 13,2010 3 the list for a tenancy-in-common agreement. One property of the tenancy-in-common agreement is a claim of beneficial use which means if water rights are not used for five years, they are lost. Mr. Goodrich just went through the process of securing all the water rights through the claim of beneficial use, having to prove the City took water. • The Board does not want this issue to hold up the agreement; it will take time to complete. Commissioner Scheiderich will put a placeholder in for now. 9. Discussion of Draft 1993 Intergovernmental Agreements between Durham and the City of Tigard, King City and the City of Tigard, and the Tigard Water District and the City of Tigard — Commissioner Scheiderich The Board wanted to review the changes from last month prior to continuing with the agreement. Page 3, Paragraph 3 —The member at-large must reside in the water service area. A water service area map will be attached to the agreement. Party members appoint the member at- large. Middle of paragraph — the IWB acts on behalf of the governing body of that Party. When voting on any issue before the IWB, if they vote affirmative, it is presumed they will be recommending it to their government body; they are not binding their government body. End of paragraph — If a member has three consecutive unexcused absences from the IWB meetings, the IWB may declare a position vacant and shall notify the Party of the vacancy to fill the position. The Party members shall appoint a member at-large for the remainder of the existing term of that position when the position becomes or is declared vacant. It was suggested that a separate line is created for Party members and the member at-large position. Page 4, Paragraph 5B — States more specifically what Tigard shall provide for the IWB meetings. Page 4, Paragraph 5C - Tigard shall hold at least one public meeting with the councils and the governing bodies of the served Parties on matters relating to the water supply system. Page 4, Paragraph 6A - IWB members present and voting may advise the Tigard City Council. Page 4, Paragraph 66(1) - The IWB decision shall be final and binding when Tigard proposes to serve to another reseller. Last time it was worded that IWB could bind Tigard, that was not the intent. Page 4, Paragraph 6B(2) -The IWB decision shall be final and binding when Tigard proposes to issue revenue bonds to finance capital improvements outside the service area Page 5, Paragraph 6B(4) - The valuation of a Party's ownership shares shall be recalculated from time to time and upon termination. Page 5, Paragraph 7A - Each party owns equitable, undivided shares as per Section 7B. The Parties share the Lake Oswego project within the service area as shown on Exhibit A. Last sentence -The Party's shares are pledged to the repayment of any debt issued to finance further capital improvements. After the bonds are paid off, the assets revert to the TWSA. Mr. Koellermeier is not sure how to resolve the Lake Oswego project issue. The assets become part of Tigard's share of the system assets. Commissioner Carroll stated that since the Parties Intergovernmental Water Board Minutes January 13,2010 4 are paying for the Lake Oswego project, the Parties want ownership of the project. Mr. Koellermeier stated that Tigard owns the assets. It is listed as if we are purchasing real estate, that there is a deed out there. In year 21 of the Lake Oswego-Tigard agreement, Tigard will then be a partner. Commissioner Buehner suggested another section should be created for other assets (i.e., Lake Oswego and Willamette) for when the bonds are retired and these capital improvements become system assets. This is a new piece to the agreement; in the 1994 agreement, everything was paid for. Mr. Koellermeier needs to make sure the agreements work together. Page 6, Paragraph 7D - No change. Commissioner Winn would like to take the paragraph out. All money goes back to water capital improvement fund. Page 6, Paragraph 7E — Commissioner Scheiderich shall put General Accounting Standards Board before GASB. Tigard creates and maintains a list of all the assets. Certain things have to be confidential due to sabotage concerns. Also, all customer personal information is confidential. Page 6, Paragraph 7F —The current agreement is 1%; the Parties have not agreed to 2%. Tigard shall disperse the amount to a Party after the audit, at least once per year. Page 6, Paragraph 7G - Clarified the space shall be available to any Party for a meeting, whether or not it is related to the water system. Page 6, Paragraph 8A—The Parties will use the state law to divide assets when a city takes territory out of the district. If the Parties do not agree, it will go to court. The provisions for assumption of debt for terminating party will be added. The terminating Party may pay off the debt either in a lump sum at present value or pay every year. When a Party terminates, that is the end of their claim to revenues. Revenues are prorated up to time of termination, this is referenced in Paragraph 7F. Page 7, Paragraph 8C - Instead of dividing up assets, a terminating Party may offer to convey its ownership share of system assets to Tigard and may waive its rights to a division of assets. Page 7, Paragraph 8D - Tigard has the first right of refusal to purchase a Party's share of system assets on that Party's termination. Tigard already has the right of first refusal on this Public Works Building. Page 7, Paragraph 9A—Tigard shall operate and maintain the water system as an enterprise fund. Page 7, Paragraph 9B - Tigard makes all the water supply system supply records available to any Party for inspection and copying at reasonable notice. Page 7, Paragraph 9C - Tigard presents the proposed budget to the IWB for recommendation prior to Tigard's adoption of the budget. Tigard shall provide a copy of the year-end financial audit to any Party upon that Party's request. Page 7, Paraqraph 10 - No change. Annexation is subject to Metro Code and state land use law. In case of boundary changes, the Parties agree to execute all documents in a timely manner. Intergovernmental Water Board Minutes January 13,2010 5 Island annexation is consistent with Metro law; IWB cannot say we will not serve the area. An annexation will change the ownership percentage. Tigard will serve an area if it is annexed. Page 8, Paragraphs 12 & 13 - only housekeeping changes. 9. Future Agenda Items Future agenda items were not discussed. 10. Next Meeting: ■ February 10, 2010 at 5:30 p.m. Tigard Public Works Building, 8777 SW Burnham Street, Tigard, Oregon 10. Adjournment At 7:45 p.m., Commissioner Winn motioned to adjourn the meeting; Commissioner Henschel seconded the motion. The meeting was adjourned by unanimous vote of the Commissioners present, with Commissioners Buehner, Carroll, Henschel, Scheiderich and Winn voting yes. Sa�&Q QAA \ B Chair Kathy Mollusky, IWB Recorder Date: Z) Intergovernmental Water Board Minutes January 13,2010 6 Agenda Itein No.: c IWB Meeting Date: Intergovernmental Water Board (IWB) Meeting Minutes December 9, 2009 Tigard Public Works Building 8777 SW Burnham Street Tigard, OR 97223 Members Present: Gretchen Buehner Representing the City of Tigard Patrick Carroll Representing the City of Durham Ken Henschel Representing the Tigard Water District Dick Winn Representing the City of King City Bill Scheiderich Member At-Large Members Absent: None Staff Present: Public Works Director Dennis Koellermeier Utility Division Manager John Goodrich IWB Recorder Kathy Mollusky 1. Call to Order, Roll Call and Introductions Commissioner Carroll called the meeting to order at 5:36 p.m. 2. Approval of Minutes — November 12, 2009 Commissioner Buehner motioned to approve the November 12, 2009 minutes; Commissioner Henschel seconded the motion. The minutes were approved by unanimous vote of the Commissioners present, with Commissioners Buehner, Carroll, Henschel, Scheiderich and Winn voting yes. 3. Public Comments: None 4. Water Supply Update Mr. Goodrich reported that ASR injection started December 1. Currently, the rate of injection is at 1,100 gallons per minute into ASR 2. This will continue until it is full, then injection into ASR 1 will begin. Water demand is currently averaging 4 to 4.2 million gallons per day. On Saturday, November 27, around 1:00 p.m. a boil water event occurred. Portland Water Bureau (PWB) released this information to the media around 5:00 p.m. During this four-hour time period, there was some confusion on PWB's part, which resulted in citizens in the City of Tigard (COT) being informed to boil water until staff could verify that Tigard's system was not affected. Once verified, staff changed the message. COT also posted the information on the website Monday morning. COT staff is speaking with PWB about the missteps that happened. Unfortunately, this occurred on a four-day weekend when PWB customer service staff and the state were on furlough. The message has to be approved by the state before being released to the public and the media. Intergovernmental Water Board Minutes December 9,2009 1 PWB lifted the boil water notice Sunday evening. PWB has spent a week trying to determine what the cause was. They isolated and drained the affected reservoir, but have not found anything that specifically points to the contamination. They think ducks might have caused it. A boil water notice is not something any water district wants to do. COT is making sure all the communication tools are in place to notify people if it is ever needed. When there is a positive sample, then an additional three samples must be taken. One upstream, one downstream, and one where the original sample was taken. Those samples take 24-hours to run. For PWB, the one upstream and one downstream came back negative. The resample in the same place came back positive. Under state law, PWB has 24-hours to notify the public of the boil water notice. Commissioner Henschel inquired as to how many hours pass before the first indication and public notification occurs. Mr. Goodrich responded between 24-to 48-hours. Mr. Koellermeier clarified that PWB followed the letter of law exactly. COT has discussed what we would do differently. An option COT has is our reverse 911 system that can dial every customer in the system. The state still has to approve the message before we send it out. A suburb just cannot get a message out as well as the City of Portland. Portland dominates the media so suburbs have had to create other methods. The timing would not change; staff still has to go through the test and retest process, but COT's methods of getting the message out to people is more efficient. Commissioner Henschel inquired as to what the downside would be of notifying people even if the first sample turns out to be a false positive. It is common to have the first test positive. Sometimes it is the process of taking the water sample that is contaminated, not the water. For instance, the sampler touches the end of the bottle or the bottle was contaminated during processing. That is why the system is has a two-step approach in verifying results in the system. The reason it was confusing for everyone was the initial message that stated everything west of the Willamette River was affected. Mr. Koellermeier did not want to trust the media for information; he wanted verification from PWB. It was around 6:00 p.m. before we could verify TWSA was not receiving water from the problem reservoir and we asked the media to change the message to clarify which specific areas west of the Willamette River were affected. Mr. Carroll inquired as to how many water districts PWB supplies. Mr. Koellermeier thinks 17 or 18 separate districts. Portland guidelines state they are supposed to be in constant contact with the districts. The Public Information Officer at the time was a laboratory supervisor who may not have known the protocol for communicating with the wholesalers. Commissioners Buehner and Carroll requested that Mr. Koellermeier send a letter to Randy Leonard, Portland Water Board Commissioner regarding their handling of the situation. The board stated that Portland should be told they have to notify all the wholesale providers. Commissioner Carroll stated it is unacceptable that COT was not notified as per the agreement. Mr. Koellermeier agreed that PWB let their customers down. He suspects we will fix these issues. We will not change protocol at the state level for dealing with first notification versus second notification because there is a lot of science behind this we have not discussed tonight. It is appropriate for the IWB to express displeasure with how PWB treated the wholesalers through lack of information. Commissioner Carroll wants COT notified within hours of potential problem so we can make decisions, like to turn the water off. Mr. Koellermeier stated that in this Intergovernmental Water Board Minutes December 9,2009 2 case, with this particular problem, if we were contaminated that contamination would already be throughout the system. In different instances, we do have the capacity to isolate one supply from another. We are probably one of the few wholesalers that have that luxury to change the source of supply. Commissioner Buehner asked if it would be appropriate for PWB to give the 18 districts a heads up so everybody was ready if the second positive came in. Mr. Goodrich said PWB is looking at changing their protocol to provide notice to the wholesalers regarding this type of event. They have only had 14 since 1990, which works out to less than one per year. One per year for a system their size indicates a fairly clean system. They take around 200 samples per month. It is very easy to contaminate the bottle with a bib nozzle, sampler's thumb, etc. Commissioner Winn wants COT to notify the IWB as soon as they know of a situation. Mr. Koellermeier could have activated our CodeRed phone system, but by then the media began clarifying the message regarding areas of impact. He did not call IWB members because the media message was being disseminated properly at that point. Mr. Koellermeier stated that we could change that procedure, if necessary. 5. Credit for Water Leak Mr. Koellermeier stated that the IWB recently passed a policy to allow COT staff to issue credit for water leaks. However, this is imbedded in COT ordinance, which has not been changed at the council level yet. These policies and code changes have not been put on the agenda because staff wanted to put through all the policy issues at one time. Commissioner Buehner motioned to approve credit Commissioner Scheiderich second the motion. The credit for the water leak was approved by unanimous vote of the Commissioners present, with Commissioners Buehner, Carroll, Henschel, Scheiderich and Winn voting yes. 6. Informational Items a. Update from Commissioner Buehner on Lake Oswego/City of Tigard Oversight Committee activities. Commissioner Buehner reported the Lake Oswego/City of Tigard Oversight Committee has not met since IWB's last meeting. b. Advertisement Submitted for Member-at-Large Position A copy of the advertisement is in the IWB package. It is in the newspapers, on our website, etc. Commissioner Scheiderich would like applicants to come to our January meeting so we could ask them a few questions and they could introduce themselves. He would like to do this in open session. Depending on the number of applicants, it can occur in one meeting or two meetings. 7. Non-Agenda Items • Commissioner Scheiderich inquired about the status of buying into the Sherwood pipeline. Mr. Koellermeier is waiting to hear from the City of Sherwood. Both the City of Tualatin and COT have budgeted for this purchase. The first offer was to buy an option to exercise later. If it was not exercised, the down payment would be lost. The City of Sherwood asked if we wanted to abandon the Lake Oswego operation and go in full with them. Mr. Koellermeier informed them we were not willing to do that at this time. Craft Belfour is drafting an agreement to make us partners through the Willamette River Water Coalition. Mr. Koellermeier expects to have something for the IWB in three months. Intergovernmental Water Board Minutes December 9,2009 3 • Commissioner Buehner requested an update on Haag Lake. The IWB decided not to do the Haag Lake project and the costs keep going up. It has been in the paper that the Lake Oswego project costs are going up. Mr. Koellermeier stated that the scope of the Lake Oswego project did not change and there is no new information on costs. The 2006 estimate was escalated through the construction period out to 2016. A 6% multiplier was used, which is a 60% increase if you add 10 years to that initial number. The scope of the Haag Lake project has changed substantially. The existing dam is seismically deficient according to the seismic evaluation. This is a federal government issue. They have three options: (1)spend money fixing the dam, (2) put money in for new dam, or(3) lower the water in the lake to mitigate the potential issue. The technical solution that works best for the project is to have the federal government contribute to a new dam downstream from the existing dam. This has pushed the project costs to above $1 billion. It is not yet determined how much of that cost will be federal obligation and when the cash will start flowing to pay for the project, which will cause the project to cost more. The participation of the federal government is outside of the timeline the partners have been working towards to fix the issue so the IWB's decision was a good one. • Mr. Koellermeier answered the question posed last week regarding TWD board members needing ratification of issues from their board before they can contribute to a vote here at the IWB. The legal opinion is that this is a TWD decision made by their board. State law does not impose it. It is a decision to be made between the parties, if they want TWD to amend their operating rules. TWD is taking COT's legal opinion back to their board to make a decision. 8. Discussion of Draft 1993 Intergovernmental Agreements between Durham and the City of Tigard, King City and the City of Tigard, and the Tigard Water District and the City of Tigard—Commissioner Scheiderich The Board wanted to review the changes from last month prior to continuing with the agreement. Page 2. Paragraph 1 B— It was made clearer that the Parties are delegating legal complexities, such as the ability to adopt the system development charges, to Tigard. Page 2. Paragraph 1 C— It was pointed out that all revenues are pledged to Tigard, except those shares of system revenues that are allocated to each Party's control and disposition under Section 7E of the Agreement. Page 2. Paragraph 2B—Tigard may terminate this Agreement after 30-days notice of default. This is standard language. Pa_Qe 3. Paragraph 2C —This restates that if a Party terminates, Tigard will try to negotiate a wholesale water agreement contract. This does not obligate Tigard to provide water,just obligates the City to try to negotiate a contract. Page 3, Paragraph 3—This was changed to say the member-at-large must reside in the service area. Further down it says the member representing the Party shall be authorized to act on behalf of that Party. The IWB, by majority vote, may declare a member's position to be vacant with three unexcused absences. Intergovernmental Water Board Minutes December 9,2009 4 Page 3, Paragraph 5A— Clarified that the IWB shall schedule regular meetings. Page 3, Paragraph 5B - Tigard shall budget and provide staff support for the IWB. Page 4, Paragraph 5C — One public meeting is to be held annually with the governing bodies of the served Parties and Tigard City Council. Page 4, Paragraph 6A —Will be numbered correctly, there are no additional changes. Majority vote is the majority of all five members present. Page 4, Paragraph 6B —The majority vote of the parties shall be final and binding on Tigard. Page 4, Paragraph 6B(1) — If COT wanted to provide water service to a new wholesale customer, this should require a majority vote of the Parties. Serving new members could risk the integrity of the system. A wholesale customer means territory, a city or district, not an individual customer. Commissioner Buehner inquired if the agreement should have different provisions for Areas 63 and 64 that are already included in our long-term plan to serve. The Board did not feel separate provisions were necessary. Mr. Koellermeier is concerned the new Agreement language removes the tenant that we are under no obligation to serve outside of the boundary. The concern with this language is that IWB can force Tigard to serve outside of the current boundary. This would be contrary to the current City policies. The new Agreement states that the IWB must vote on a proposal from Tigard to supply water outside of the area. If the IWB wants to bind Tigard to supply water outside of the area, they can. Commissioner Scheiderich will clarify the wording to state that the Board must ratify a proposal by Tigard to supply water to an area outside the existing area. Page 4, Paragraph 6B(3)— Changed the word "supply" to "source". The Lake Oswego agreement is binding on Tigard, but it was not imposed by the IWB. This agreement says that if the IWB wanted to invest in Sherwood and COT did not want to, the IWB could vote to make it happen. This statement is strong and will probably raise questions from Tigard City Council. Page 5, Paragraph 7(A)—All the Parties own all the assets. The state law on annexation reads that assets that are of no use to the city withdrawing just go away. This Agreement does not differentiate between system assets versus other assets. The Parties pledge all assets until withdrawal. On termination, the Parties decide what assets in the ground are unique to the service area and divide off the rest of the system. Other assets follow state law. Page 5, Paragraph 7B—Commissioner Scheiderich will reword the last sentence. If ownership shares change from time to time, it does not matter until termination. We will bring ownership shares current at time of termination only. Page 5, Paragraph 7C — If it is not real estate, it is a straight-line depreciation. Real property shall be valued by an independent appraisal. Page 5, Paragraph 7D —The IWB does not have consensus concerning when real estate is sold. Should all proceeds go into the Capital Improvement fund or to each city to dispose of as they wish? TWD needs to relook at this; they thought it referred to termination. Intergovernmental Water Board Minutes December 9,2009 5 Page 6, Paragraph 7E — General accounting standards require every city to put a value of pipeline in the annual budget. If we agree to this agreement, all property — existing and new - needs to re-deeded. The pipeline from Lake Oswego is listed as part of Lake Oswego/Tigard agreement; it is removed from the Parties here. The agreement specifically states that the asset is a part of the partnership, the agreement with Lake Oswego would have to be amended to change. Commissioner Carroll inquired as to why would this asset not be everyone's since everyone pays for it. There are several ways to finance this agreement. The decision was made that it should be self-supported by revenues. The existing Agreement did not allow a revenue bond sale by anyone but Tigard. Commissioner Carroll wants the assets converted to system assets as they are paid off. We take title as system paid off, ownership as we get benefit from it. In 2016, that which has property will be re-titled to say Tigard and Lake Oswego has some percent ownership. The IWB should have their percentage ownership of Tigard's piece. Assets have value when they are half paid off. At some point those assets revert to system assets. Mr. Koellermeier stated that if that is the pleasure of group, put it in the Agreement. Lake Oswego pipe is the only system asset not in here. Mr. Koellermeier does not know how Tigard City Council will react to this. Page 6, Paragraph 7F — The IWB does not agree on this issue. Tigard wants to treat everyone the same. The IWB will revisit this issue at the next meeting. Page 6, Paragraph 7G —Tigard shall make the auditorium meeting space available at no cost to the Parties whether or not the meeting is related to the water system. The IWB stopped the discussion and will continue next month starting with (8) Division of Assets on Termination or Dissolution. 9. Future Agenda Items • PGE is driven by PGE's timeline. • We are continuing to work on the Tenancy-In-Common agreements (doing survey work, getting property descriptions) and checking legal description. • Approve Water System Master Plan. 10. Next Meeting: ■ January 13, 2010 at 5:30 p.m. Tigard Public Works Building, 8777 SW Burnham Street, Tigard, Oregon 10. Adjournment At 7:25 p.m., Commissioner Winn motioned to adjourn the meeting; Commissioner Buehner seconded the motion. The meeting was adjourned by unanimous vote of the Commissioners present, with Commissioners Buehner, Carroll, Henschel, Scheiderich and Winn voting yes. IWB Chair Kathy Mollusky, IWB Recorder Date: Intergovernmental Water Board Minutes December 9,2009 6 Sign-in Sheet Intergovernmental Water Board Meeting Date: January 13, 2010 Name Do you wish If yes, please give your address please print to speak to the Board? John Q. Public Yes 13125 SW Hall Blvd. Tigard OR 97223 l ( -M S W �a�2 gr N Sr i �JgL) PA4j - ) A-12-6f 2 Z 12vl Agenda Item No.: y City of-Tigard IWB Meeting Date: )�,,.� h ��, a., CITY ADMINISTRATION Citizen Committee Interest is Application Please check which Board/Committee you are interested in serving on: ❑Budget Committee ❑ City Center Advisory Committee ❑ Conunittee for Citizen Involvement ❑ Library Board ❑ Parks and Recreation Advisory Board ❑ Planning Commission ❑Tigard Youth"Advisory Council ❑Transportation Advisory Committee ❑Tree Board .Other LCr�uT - Name: 1 f` a /-i �.t� 5©�" Date: ✓ Z 723 y Address (Res.): g7' ✓ / � Res. Phonec�� City: Zip Code: '72 Z-� Bus. Phone: / Address (Bus.): N E-mail: p4n�-5,x-)P, L)Fd&,Za j Aj E 7- City: City: Zip Code: Suggested by: Length of Residence in Tigard: Where did you live previously? 5eg-1&rn �v v�� %-Az Educational Background: Occupational Status and Background: JCC—t'i2L /ZF,d =E e,77y")s -,e� 7",0 5/ ie f How long have you been employed with this firm: G1J 1� Previous Community Activity: 3/_/l L ,� /A-l+,,4 IF_ Organizations and Offices: L!�/3 Other Information (General Remarks): vQ h*�s� �coo J Any other pertinent information you want to share? j rn:Qe Please make sure to read and sign the second page. Application cannot be processed unless signed. m+v-taw Uprd«.govk vok"ow opaaoc c izw iMero.tAWicnionjirA,&c wiv1uo7 City of Tigard I Citizen Committee Intemst Application I Page Two Person to notify in case of emergency: Address: Ic City: State: Contact Phones: D S-7y `:272— I 7J-I acknowledge that any photograph or videotape taken of me participating in this activity may be used for outreach,education or docum talion purposes,without compensation, by the City of Tigard. Signature of Participant: -A" Date: -) � ` Z g " d Please return this form to City of Tigard, 13125 SW Hall Blvd, Tigard, OR 97223 http:lta .tigand-r.gov/oommurgty/volurteer_op&tocs NiZ¢ _lrstweo_Appkation_Ord.dwer11/14107 i City of Tigard RLCFIVEp CITY ADMINISTRATION DEC 1 12009 Citizen Committee Interest Applica ,?7gera J06 Please check which Board/Committee you are interested in serving on: ❑ Budget Committee ❑ City Center Advisory Committee ❑ Committee for Citizen Involvement ❑ Library Board R Parks and Recreation Advisory Board ❑ Planning Commission ❑Tigard Youth Advisory Council ❑ Transportation Advisory Committee ❑ Tree Board ® Other Intergovernmental Water Board Name: Steve Huynh Date: 12—17—09 Address (Res.): 15223 Sw Criterion Teff Res. Phone: 503—764 - 8893 City:Tigard Zip Code: 97224 Bus. Phone: Address (Bus.): E-mail: Steve.Huynh@pcc.edu City: Tigard Zip Code: 97224 Suggested by: Length of Residence in Tigard: 21 Years Where did you live previously? N/A Educational Background: Portland Community College Occupational Status and Background: Student How long have you been employed with this firm: N/A Previous Community Activity: Friends of Trees,Cascade Education Corps Organizations and Offices: Tigard High School Leadership, Asian Club Vice-president, Key club member, Dornbecher secretary Other Information (General Remarks): I am a Hard worker, and would love this opportunity to help serve my family, friends,and community. Any other pertinent information you want to share?N/A C:Wmmr banduMppDaleu.ecal%TemplCitiier_Imeresl_Apptltalion_Mnt.00crev11/1/107 City of Tigard I Citizen Committee Interest Application I Page Two Person to notify in case of emergency: Ky Huynh Address: 15223 Sw Criterion Teff City: Tigard State: OR Contact Phones: 503—709 - 3109 I acknowledge that any photograph or videotape taken of me participating in this activity may be used for outreach, education or documentation purposes,without compensation, by the City of Tigard. Signature of Participant: Date: Z 7 la Please return this form to City of Tigard, 13125 SW Hall Blvd., Tigard, OR 97223 C:WwrsibentluT\NW&ta\locaRTemp�ClUxen_InlerosLAppllcaUon_xint.Cocrev11114N7 DecDec. 23. _2U09. 4:U4FM ; Always at, HoomeCare,w 5o3se48e4o No. /9U8 P. 1 z City arrigard r CITY ADM)NN-TRA77ON Citizen Committee Interest Application F Please check which Board/Commince you are interested in serving on: ❑ Budgcr C ornmiacc ❑City Center Advisory Commitsec 0 Committee for Citizen Involvement 0 Ubmq Board E]larks and Recreation Advisory Board ❑ Mauling Conunh;,.uon Tigard Youth Ad%isory Council 0 1'ransponation Advisory Committee ❑'lice Board El oder In-T- 6 ✓��,�vti /3 val_o Name: c / Lt `P Date: Addtcss (Res.): �J J`>& b Q R...Phone: 03 (v•�5 —Cf,%�e7� City: s opo Zip Code: 1l(`{ U Sus. Phone: Addtesa (Bus-): S �(•t) S �D E-mail: S til.L City: Ktri Zip Code: 9 Z Suggested by: Length of Residence in 7 ard: Where did you live previously? I?duccitinnRl Background: Occupational Status and Background: e 1 &-v:'T 6yi4r How foag have you been employed �� e: with chis fin Previous CotnmuniryActivity ( : _Ay"✓vt a 6� �Cc i`S.� /�`�t D�'S 0.t-��c f'.� /V Dt / Qrganir.:itiony and OfFiccs: AVI-!O Nf l Oder Infon».•ttion (General Remlrks): a Nd! Any urher pertinent informatit�n you want to,hare? IJ i A AJ Person io nodfv i,i case of enurgency: e4 Q Addwsw. ,ity; IcSCLip: Contact Phones 5--Z-6 Er-7 V Y ' I acknowledge that any Photograph or videotape taken of me participating in this activity may be used fur outreach,education or docu station purpose,,,without compensation,by the City of Tigard. Signature of Participant: Date: 2 Z— CQ `? Please retunr r tis form!n City of Tigard, .1312S SW Hall Rlvd, Tigard, OR 97223 0,1D.[.�..H.W M1F�YIMyw.10.Yr�WR.�M n�/�41Svim4w�v1?Tf{ Received Time Oec. 23. 3:45PM City ofTigard CITY ADMINISTRATION . r � Citizen Committee Interest Application Please check which Board/Committee you are interested in serving on: ❑ Budget Committee ❑ City Center Advisory Committee ❑ Committee for Citizen Involvement ❑Library Board ❑Parks and Recreation Advisory Board ❑ Planning Commission ❑Tigard Youth Advisory Council ❑ Transportation Advisory Committee ❑Tree Board ® Other Intergovernmental Water Board Name: Michael A. Stone Date: December 23.2009 Address (Res.): 16349 SW 1071h Court Res. Phone: 503-968-9128 City: Tigard, OR Zip Code: 97224 Bus. Phone: 503-682-4960 Address (Bus.): 29799 SW Town Center Loop East E-mail: stoneaci.wilsonville.or.us City: Wilsonville,OR Zip Code: 97070 Suggested by: Length of Residence in Tigard 18 years Where did you live previously? Tualatin,OR Educational Background: BSCE Oregon State University/ Registered Professional Engineer-Oregon Occupational Status and Background: Currently Employed as the City Engineer for Wilsonville.OR How long have you been employed with this firth: 17 years Previous Community Activity: High School soccer,volleyball'parent' Organizations and Offices: Member of AWWA.APWA.ASCE.WEE Other Informiation (General Remarks): Any other pertinent information you want to share? Project Manager/Engineer for the Willamette River Water Treatment Plant in Wilsonville Person to notify in case of emergency: Patti Freemon Address: 15201 SW 98th Avenue City: Tigard State/Zip: OR,97224 Contact Phones: 503-624-1577 I acknowledge that any photograph or videotape takenjoPme participating in this activity may be used for outreach,education or doc a to u o es, . out compensation,by the City of Tigard. Signature of Participant: Date: December 23,2009 Please return t rs form to City of 77gar4 13125 SW Hall Blvd., Tigard, OR 97223 C:0mum ns and Se91rq"orle\L.oca1 Setllnps\Twgr ary IrdemM FIIOMOLK19\CMlzen_IrdwW—Applkellon.docrev 11113*8 City of Tigard CITY ADMINISTRATION Citizen Committee Interest Application n7is7�Y'�;:eF�."SeT�=_•.i}`s`.''?v�s�Rt�s_cK':1`Yi�G;nZ:'i1=zYhta•!4A�•- .. -71iRURtPY3l�flW0Y31rr;�7ucri:t•,,•.:. Please check which Board/Committee you are interested in serving on: ❑ Budget Committee ❑ City Center Advisory Committee ❑ Committee for Citizen Involvement ❑ Library Board ❑ Parks and Recreation Advisory Board ❑ Planning Commission ❑ Tigard Youth Advisory Council ❑ Transportation Advisory Committee ❑ Tree Board Other Intergovernmental Water Boar Name: Gary Strealy Date: December 23, 2009 Address (Res.): 11200 SW Fairhaven Street Res. Phone: 503 620 2358 City: Tigard Zip Code: 97223-3727 Bus. Phone: 503 887 4002 Cell Address (Bus.): E-mail: Strealyl Q Verizon.Net City: Zip Code: Suggested by: Craig Dirksen Length of Residence in Tigard: 31+ Years Where did you live previously? Westminster, CA (1974-1978) Educational Background: B.S.- Manufacturing Engineering Technology, California State University, Long Beach, CA (1971); AA-El Camino College (1969); Hawthorne H.S., Hawthorne, CA (1962) Occupational Status and Background: Retired (2001) from Daimler Trucks North America (DTNA) as the Coating Technology Manager, Corporate Manufacturing Engineering; and from 2002-2009 owner, Strealy & Associates, LLC. Most of my career has been in the paint and finish industry as the technical engineering or consultant to heavy duty truck manufacturers or their suppliers industry. Fully retired in 2009. How long have you been employed with this firm: DTNA from 1978 to 1982, and 1986 to 2001; Strealy & Associates from 2002 to 2009 Previous Community Activity: None Organizations and Offices: Deacon for four years (1987-1991) and an Elder for 18 years (1991-2009) at SW Church of Christ, Tigard; Board member of 501(c)3 Non-Profit Organizaation in 2006 and 2008 and Corporate Officer (Secretary) in 2007 and 2009. Other Information (General Remarks): My wife and I raised our four children in Tigard. In addition, we were guardians for a teen boy for three years from 2003 through 2005. Any other pertinent information you want to share? I've seen Tigard grow from a semi-rural farming area to an urban community. The transition over the last 10-12 years has sometimes been bumpy and other times C.Zocuments and Sol VS%Gary StrealyWy OoueneMsMVard Interest Application t.docaevI V13M appearing smooth. It's been a great place to raise a family and I'm glad I came here. Now that I'm retired, I'd like to servie in some capacity. Person to notify in case of emergency: Alden & Niki Strealy Address: 5021 Tualata Lane City: Lake Oswego State/Zip: OR 97035 Contact Phones: 503 684 6113 (Home) or 503 789 2244 (Cell) I acknowledge that any photograph or videotape taken of me participating in this activity may be used for outreach, education or documentation purposes, without compensation, by the City of Tigard. Signature of Participant: Date: December 23, 2009 Please return this form to City of Tigard, 13125 SW Hall Blvd, Tigard, OR 97223 C-Oocumeras and Settings%Gary S1realyWy Do erasMgard Interest Appllcatlon 1.docrev 11/13108 Agenda Item No.: 7 I VB Meeting Date: ��.�,�..;J� �, �C e : December 28, 2009 City of Tigard David Shaff,Administrator Portland Water Bureau 1120 SW 5th Ave # 600 Portland, OR 97204 Re: November 27, 2009 Boil Water Incident Dear Mr. Shaff, On behalf of the City of Tigard (City) and the Intergovernmental Water Board (Board) representing King City, Durham and Tigard Water District, this letter is to convey our lack of satisfaction with the recent handling of the Boil Water incident that occurred November 27, 2009. The City and Board understand the complexity of water quality sampling and verifying results through repeat sampling. However, our contention with Portland Water Bureau (PWB) is the lack of notification to the City and the way in which information was released to the public, especially the lack of notification regarding press releases to the media and their impacts to the region as a whole with regard to water quality and safety. The City received no written notification regarding the need to boil water,why the notification was necessary,if Tigard was impacted, or any after action reporting such as lifting the boil water notice. The City's answering service and emergency management coordinator received only voicemail messages and without a call back number. The message said "PWB believed" we were not impacted. The City was left to acquire unofficial information from the media hardly a proper source in times of emergency, and forced to wait two hours on the phone before speaking to the proper PWB staff to verify information. PWB's own document entitled "Guidelines for Preparing and Issuing a Boil Water Notice" revision date May 24, 2006 prepared by the Regulatory Compliance Group, Section 4.5 — Wholesale Customers clearly states "The Regional Water Users Liaison Officer will initiate and maintain communication with wholesale customers. Wholesale customers should be provided the following information: 1) A copy of the notice that will be issued to the public; 2) Description of the problem; 3) Expected duration;4) Actions currently being taken; 5) Operational considerations specific to their water system." None of these requirements took place during this event, and no after action written report has been provided to the City explaining why this process was not followed. 13125 SW Hall Blvd. a Tigard, Oregon 97223 • 503.639.4171 TTY Relay: 503.684.2772 9 www.tigard-or.gov The City and Board recommend that PWB in the future ensure: • Better communications via email and phone with call back numbers • Consistent communications including after action reporting • Inclusion of the wholesalers comments before reporting to the media • Appoint a service representative to each wholesaler for emergency and customer problems • Public Information Officer (PIO) training regarding the importance of wholesale customers, or assigning a service representative as PIO to wholesale providers during times of emergency PWB is our water provider. We depend on its professional decision making and dedication to service to provide us safe and reliable drinking water. As a wholesaler,we are one of your largest customers. Please provide us with a written response regarding what steps have been taken to remedy this situation. er y, nis Koellermeier Public Works Director c: Intergovernmental Water Board Tigard City Council Portland Wholesalers r o PORTLANDRandy Leonard,Commissioner a R David G.Shall,Administrator WATJLJN 1120 SW Sth Avenue.Room 600 BUREAU Portland,Oregon 97204-1926 Information:503-823-7404 FROM FOREST TO FAUCET www.portiandonline.com/water An Equal OppeHunity Emplowr January 12, 2010 Dennis Koellermeier Public Works Director City of Tigard 13125 SW Hall Blvd Tigard, OR 97223 Re: November 28, 2009 Boil Water Incident Dear Mr. Koellermeier, The Portland Water Bureau values its wholesale customers and understands your concern and lack of satisfaction with the November 28, 2009 Boil Water Incident. As you know the incident was the result of a repeat positive E..coli sample at one of the open. reservoirs in Washington.Park. The initial positive result was received on the afternoon of November 26, Thanksgiving Day. The repeat sample was collected on Friday, November 27 with results received on Saturday, November 28. After consultation with State regulators the decision was made to issue a boil water notice to affected customers: all customers of the Portland Water Bureau west of the Willamette River and customers of Valley View, Burlington and Palatine Hill water districts. The boil water notice was issued to the public through a media release and press conference with local media. As mentioned in your December 28 letter, the Portland Water Bureau attempted to contact wholesale providers Saturday morning including the City of Tigard by contacting the City's answering service and emergency management coordinator. The Water Bureau staff who contacted wholesale customers recalls leaving a callback number and did receive a call back from another wholesaler. In addition,within an hour after issuing the boil water notice, an e- mail from Regulatory Compliance Manager Yone Akagi was sent to all wholesale providers, including you, with the boil water notice and media release attached. A copy of that e-mail is attached. The boil water notice included a description of the problem, the expected duration and the actions currently being taken. On Sunday Yone Akagi sent another e-mail to wholesale customers notifying them that the boil water notice had been lifted and directed wholesaler customers to the Portland Water Bureau website where the notice was posted. While efforts were made to communicate with our wholesale customers, we could have done better. Unfortunately this incident occurred over Thanksgiving weekend which made The City of Portland will make reasonable accommodation for people with disabilities.Please notify us no less than five(5)business days prior to the event by phone 503-823-7404,by the City's TTY at 503-823-6868,or by the Oregon Relay Service at 1-800-735-2900. communications with wholesalers less than ideal. We understand the need to communicate sensitive and important information to our wholesalers and the effect such an incident may have. To improve our efforts to communicate this information in the event of any future public notices the Portland Water Bureau is taking the following actions: • Updating emergency contact lists. The wholesale provider's contact list available during the incident did not include sufficient after hours contacts for appropriate personnel at the respective providers. The Portland Water Bureau will be asking all of our wholesale providers for updated contact information and will request updated numbers on an annual basis. • Incorporate wholesale contact into the emergency response. The Portland Water Bureau guidelines for issuing a boil water notice assign contacting wholesale providers to the Regional Water Users Liaison Officer. Efforts, as identified above, were made to contact the wholesalers; however these proved less than effective. In the event of a future incident,the Incident Commander will indentify a single position in the ICS that will be responsible for directly contacting all wholesale providers and maintain communication throughout the incident. In addition the Emergency Operations Center is developing checklists of important tasks that need to be completed at the beginning of any emergency, directly contacting wholesale customers will be included in these checklists. • Increased exercises and drills. I have directed our emergency operations staff to conduct more frequent emergency exercises that will include issuing boil water notices. As you may know, this was the first widespread boil water notice issued by the Portland Water Bureau. Despite our efforts to prepare for such an event, this incident showed several areas for improvement, including increased and improved communication and involvement of our wholesale customers. Through more frequent exercises of our emergency response system, we will continue to find ways to improve our communication with all of our customers. • Provide wholesale customers with emergency contact for key Portland Water Bureau personnel. Contacting and communicating with our wholesale providers is the intention and responsibility of the Portland Water Bureau. Contacting the Portland Water Bureau is not the responsibility of our wholesale customers. However providing our wholesale customers with the means to directly contact key personnel in emergency situations is an additional means to ensure that all necessary information and assistance is available. I want to assure you that the Portland Water Bureau takes the concerns of our wholesale customers over the communication regarding this incident very seriously. I assure you that there will be greater communication with our wholesale customers should a similar event occur in the future. Sincerely, David G. Shaff Administrator Page I of'I Bradway, Scott From: Akagi, Yone Sent: Saturday, November 28, 2009 4:48 PM To: burlingtonwater@gwest.net-, Brian.Stahl@ci.gresham.or.us-, dennis@tigard-or.gov; 'City of Tualatin'; 'bkwaterwiz@cs.com'; artst@juno.com ; metereadersl @aol.com; Lgwater@teleport.com, 'pdxruth@yahoo.com'; 'saidee@mckaycsi.com'; raleighwater@comcast.net; hbarnes@rwpud.org; kanderson@sunrisewater.com; 'greg@tvwd.org'; toddh@tvwd.org; 'jarnold@wswd.org'; grasshopper49@earthlink.com Cc: Shall, David; Wanner, Chris; Black, Terry; Bradway, Scott Subject: FW: Finals BWN & Press Release Attachments: BWN media release revfinal.doc; BWN-1 1 28 09final.doc PWB issued the attached media release and boil water notice this afternoon. This should only effect PWB customers on the west side of the Willamette, customers of Burlington, Palatine Hills and Valley View Water Districts, From: Akagi, Yone Sent: Saturday, November 28, 2009 3:58 PM To: WB MANAGEMENT TEAM Cc: Akagi, Yone Subject: FW: Finals BWN & Press Release Final BWN and Press Release sent out on Nov 28, 2009. From: Akagi, Yone Sent: Saturday, November 28, 2009 3:56 PM To: Shaff, David; Adams, Sam; Black, Terry; Campbell, Edward; Wanner, Chris; Bradway, Scott; Sheets, Mike Subject: FW: Finals BWN & Press Release 1/8/2010 Page 1 of 1 Bradway, Scott From: Akagi, Yone Sent: Sunday, November 29, 2009 4:40 PM To: Akagi, Yone; burl ingtonwater@gwest.net; Brian.Stahl@ci.gresham.or.us; den nis@tigard-or.gov; 'City of Tualatin'; 'bkwaterwiz@cs.com'; artst@juno.com ; metereaders1 @aol.com; Lgwater@teleport.com; 'pdxruth@yahoo.com'; 'saidee@mckaycsi.com'; raleighwater@comcast.net, hbarnes@rwpud.org; kanderson@sunrisewater.com; 'greg@tvwd.org'; toddh@tvwd.org; 'jarnold@wswd.org'; grasshopper49@earthlink.com Cc: Shaff, David; Wanner, Chris; Black, Terry; Bradway, Scott; Day Burget, Jennifer; Yezman, Crystal Subject: Boil Water Notice Lifted - November 29, 2009 Portland Water Bureau has lifted its Boil Water Notice. Please see our website for the notice/media release that was sent out. www.portlandonline.com/water Yone Akagi From: Akagi, Yone Sent: Saturday, November 28, 2009 4:47 PM To: burl ingtonwater@gwest.net; Brian.Stahl@ci.gresham.or.us; den nis@tigard-or.gov; 'City of Tualatin'; 'bkwaterwiz@cs.com'; artst@juno.com ; metereadersl@aol.com; Lgwater@teleport.com; 'pdxruth@yahoo.com'; 'saidee@mckaycsi.com'; raleighwater@comcast.net; hbarnes@rwpud.org; kanderson@sunrisewater.com; 'greg@tvwd.org'; toddh@tvwd.org; 'jarnold@wswd.org; grasshopper49@earthlink.com Cc: Shaff, David; Wanner, Chris; Black, Terry; Bradway, Scott Subject: FW: Finals BWN & Press Release PWB issued the attached media release and boil water notice this afternoon. This should only effect PWB customers on the west side of the Willamette, customers of Burlington, Palatine Hills and Valley View Water Districts. From: Akagi, Yone Sent: Saturday, November 28, 2009 3:58 PM To: WB MANAGEMENT TEAM Cc: Akagi, Yone Subject: FW: Finals BWN & Press Release Final BWN and Press Release sent out on Nov 28, 2009. From: Akagi,Yone Sent: Saturday, November 28, 2009 3:56 PM To: Shaff, David; Adams, Sam; Black, Terry; Campbell, Edward; Wanner, Chris; Bradway, Scott; Sheets, Mike Subject: FW: Finals BWN & Press Release 1/8/2010 Agenda Item No.: 9 IWB Meeting Date: „ AMENDED AND RESTATED INTERGOVERNMENTAL AGREEMENT BETWEEN DURHAM, KING CITY AND THE TIGARD WATER DISTRICT AND THE CITY OF TIGARD FOR WATER SUPPLY 3rd Draft 1/13/10-New Matter in Bold Italic- This Agreement is made and entered into under authority of Chapter 190, Oregon Revised Statutes, by and between the cities of Durham and King City and the Tigard Water District, an ORS Chapter district ("District") and the City of Tigard ("Tigard"), all Oregon municipal corporations ("the Parties"), in Washington County, Oregon. This Agreement is an amendment and restatement of those individual agreements entered between Tigard and each of the other two other cities and the District in or about 1993 This Agreement shall be effective as of the date that all Parties have signed. RECITALS: A. The three cities withdrew the areas included within their boundaries from the political boundary of the District effective July 1, 1993. In consideration of their separate contracts with Tigard for the operation and maintenance of a water supply to serve all four Parties, Tigard granted to Durham, King City and the Tigard Water District (all Parties other than Tigard being the "Parties served") an equitable interest in those assets (described as "system assets" in those contracts) located within the combined service area. Water supply, storage and distribution facilities ("system assets") were not divided between the cities and the District as provided for by ORS 222.540 and instead, all such assets wherever located were pledged to the use of the City of Tigard for the operation and maintenance of a single water supply, storage and distribution system to serve all four Parties. All Parties now desire to clarify the method to determine the value of those assets and the Parties' equitable ownership interest in same and to establish the methods for valuation of both real and personal property. B. The Parties intend that Tigard continue to provide and manage a water supply system serving all Parties for the duration of this Agreement including use of assets and facilities not within the combined service area that are owned by Tigard and other entities that are not parties to this Agreement. C. The Parties desire to clarify the role of the Intergovernmental Water Board ("IWB") as to those matters where its actions are advisory to Tigard or are binding on Tigard. In consideration of those premises as generally recited the Parties now AGREE: 1. Purpose and Scope. 1A. Tigard shall continue to furnish and maintain a domestic water supply, storage and distribution system serving all Parties to this Agreement. All Parties pledge the use and benefit of all assets of that system, wherever located whether inside or outside the Tigard Water Supply Agreement 2"d Draft 12/9/09 Page 1 Parties combined service area, as they now exist and hereafter are constructed or accrue, for the duration of this Agreement as to each Party served. Each Party's equitable interest in any and all system assets located within the combined service area shall be deemed held as an undivided common interest until the Party terminates this Agreement or until the Agreement is dissolved. 1 B. All other Parties delegate to Tigard the authority to enact water system rates and charges, including systems development or connection charges, with the advice of the IWB and as limited by state law, in such amounts as are necessary to maintain the system for the benefit of all Parties. Any and all such rates and charges shall be applied evenly to all customers in similar rate classes throughout the area now served by the system and each Party agrees to enforce those rates and charges without exception within that Party's political boundary. 1 C. Tigard shall enter into all contracts necessary or desirable to operate the system in its own name whether or not any such contract is subject to IWB approval. Tigard shall issue and make provisions for repayment of any and all municipal bonds issued to finance capital improvements to the system and may pledge any and all system revenues for repayment of such bonds except those shares of system revenues that are allocated to each other Party's control and disposition under Section 7E of this Agreement. Tigard shall prepare and issue all statements and filings necessary to issue such bonds and shall make all continuing disclosures regarding the bonds as may be required by state and federal law. A served Party may not issue or contract for any debt that is to be secured by any assets that are necessary to operate or maintain the water supply system. 1 D. A served Party shall consider any request by Tigard to exercise powers of eminent domain if needed to acquire property within that Party's political boundary for use for the water supply system. A Party shall not unreasonably withhold its consent to such a request. A Party may condition its exercise of such authority on Tigard's agreement to pay all attorney fees and costs incurred in any such proceedings. 2. Term of Agreement. 2A. The term of this Agreement shall be perpetual. Any served Party may terminate this agreement as between that Party and all other Parties by delivering written notice to the other Parties not less than 5 years prior so as to allow the Parties to reconfigure the supply, storage and distribution system serving the remaining Parties to accommodate any division of assets that may result from such termination. 2B. Tigard may terminate this Agreement as to any served Party only for cause and only after Tigard has served written notice to that Party of that Party's default as to a material term of this Agreement and has allowed that Party not less than 30 days to cure that default. On a Party's continued default Tigard may serve written notice of termination to that Party not less than 5 years prior so as to allow that Party to arrange Tigard Water Supply Agreement 2"d Draft 12/9/09 Page 2 for a replacement water source and supply system with Tigard or with another supplier. 2C. Tigard agrees to negotiate in good faith a wholesale water supply contract with a terminating Party on that Party's request. Tigard and the terminating Party may mutually agree to a different date of termination. 3. Intergovernmental Water Board. The Intergovernmental Water Board (IWB) is continued. The IWB shall consist of five members, with one member to be appointed by each of the four Parties to serve at the pleasure of the appointing Party and a fifth "at large" member who resides in the service area as shown in Exhibit_ to this Agreement to be appointed by a majority vote of the other members and who shall represent the interest of the general public. The IWB shall decide the process by which it seeks candidates for and appoints the member at large. A member representing a Party shall hold a current elective office for that Party and shall be deemed to act on behalf of the governing body of that Party when voting on any issue before the IWB. The extent to which that Party's member's vote at the IWB is binding on the Party that the member represents shall be determined by each Party. Each Party may appoint an alternate IWB member who may take the place of the regular member who is absent at any IWB meeting. An alternate member shall have the same qualifications as the regular member. A person appointed to fill a vacancy shall serve the term of the position that was vacated. The IWB by majority vote may declare a position to be vacant for that member's unexcused absence for more than 3 consecutive IWB meetings and shall notify the Party of any such declared vacancy. The Party members shall appoint a member a large for the remainder of the existing term of that position if and when that position becomes or is declared to be vacant. 4. Term Of IWB Membership. An IWB member shall continue to occupy the same position on the IWB from and after the adoption of this Agreement for the duration of that member's term. Each IWB position including the Member at Large shall have a term of two years that begins on January 1 and expires on December 31 of the second year of each term. There is no limit on the number of terms that any person may serve in any position. Notwithstanding that the term of a position has expired, the Member occupying that position may continue to serve on the Board until a successor is appointed. 5. Conduct of IWB Meetings. 5A. The IWB shall schedule regular meetings and shall conduct all meetings according to Oregon public meetings law. At its first meeting in every calendar year the IWB shall elect a chairperson for the ensuing calendar year and may elect other officers, all of whom shall have such powers and duties as assigned by the IWB. The Chair shall set the agenda for each meeting. A quorum of the IWB shall be three (3) members and no vote shall be taken on any matter requiring a vote without a quorum. All matters requiring a vote shall be enacted by affirmative vote of at least three (3) members Tigard Water Supply Agreement 2"d Draft 12/9/09 Page 3 present and voting except where this Agreement provides a different voting requirement. 56. Tigard shall budget for and provide a sufficient number of employees to provide staff support to the IWB during and between meetings. Tigard employees shall serve at the pleasure of Tigard and shall have no voting privileges. Tigard shall provide adequate facilities and equipment for use for all IWB meetings. 5C. Tigard shall provide for at least one public meeting to be held annually between and among the Tigard City Council and the governing bodies of the served Parties on matters relating to the water supply system. 6. Jurisdiction of IWB. 6A. The IWB shall hear and by majority vote of the members present and voting may advise the Tigard City Council on the following issues: 1) Uniform rates to be charged to all water system customers throughout the system, including connection charges, with different rates to be allowed only for different classes of use (e.g., residential, commercial, industrial, irrigation, high elevation surcharge) and all rates and charges to be limited to the costs of service; 2) Operation and maintenance issues referred to the IWB by Tigard or that a majority of the IWB raise on the IWB's own motion: 3) The proposed annual budget for the Parties' water supply system; 4) Policies and rules for curtailing water consumption in the same manner throughout the service area in cases of emergency: 5) Billing methods and customer account management, including any contracts with third Parties for meter reading; 6) Capital improvements not listed or scheduled in a capital improvements plan that is adopted as part of Tigard's annual budget for the system; 7) Tigard's proposed issuance of municipal revenue bonds to be used to finance water system capital improvements or to refinance existing water system revenue bonds; 8) Any and all rules and regulations issued by Tigard as to the use of the water system. 6B. The IWB shall hear, and by majority vote of the Parties shall decide the following issues, as to which the IWB's decision shall be final and binding on Tigard: 1) A proposal by Tigard to provide water service to any area or to any public or private reseller of the water that is located outside the Parties' combined service area as shown on Exhibit_ to this Agreement, and a proposal by Tigard to serve by wholesale contract a once-served Party who has terminated this Agreement; 2) A proposal by Tigard to issue municipal revenue bonds to finance capital improvements to serve any area or customer located outside the Parties combined service area as shown on Exhibit_ to this Agreement; 3) A proposal by Tigard to enter a contract or partnership with a water source other than a mutual aid or similar emergency supply agreement; Tigard Water Supply Agreement 2"d Draft 1219/09 Page 4 4) The valuation of a served Party's ownership share(s) of system assets when recalculated from time to time and when calculated at the time of a Party's termination of this Agreement, as further provided in this Agreement; 5) The sale or purchase of any real property used or proposed for use in the water system, and the terms of any such sale or purchase; 6) Tigard's proposed issuance of any debt other than municipal revenue bonds for capital improvements for the water system serving the exising service area, for which repayment is secured by a lien or other encumbrance on system assets. 7) The assignment, sale or other conveyance or transfer of any Party's rights or liabilities under this Agreement to any person or entity other than another Party. 6C. In all cases where an action taken by the IWB shall be advisory to Tigard the City of Tigard shall address and consider the Board's recommendation when taking action or a position on the matter. In all cases where an action by the IWB is final and binding on Tigard, no Party shall unreasonably withhold its consent to such action. 7. Ownership and Valuation of Assets. 7A. In consideration of the 1994 agreement with Tigard for a water supply system, each of the Parties owns an equitable, undivided common share (as calculated per Section 7B of this Agreement) of all capital improvements and real property used in the system that are located within the Parties' combined service area, including those improvements to be constructed by Lake Oswego and Tigard under that certain contract between those cities entered in or about August 2008 that are located within the service area shown on Exhibit— to this Agreement if constructed using revenues or the proceeds of debt to be repaid from revenues generated by the sale of water within the Parties'combined service area. The Parties' equitable shares of ownership of any and all such capital improvements shall be pledged to the repayment of any debt issued to finance further capital improvements to the extent required by the debt instrument(s). 713. A Party's equitable share of a system asset, whether real or personal property, shall be calculated using cumulative meter equivalency values. Tigard shall recalculate every two years in the course of Tigard's annual budget process for that year and will recalculate the Parties' shares on any Party's termination or on dissolution of this Agreement. The Parties' shared interests in any system asset that is real property and that Tigard uses in part for purposes other than operation of the water system shall be shown by lease agreements between the Parties and Tigard and recorded in county deed records. The Parties ownership shares of any property subject to a lease agreement with Tigard shall be set out in the lease agreement and any change in those shares (after recalculation as provided for herein) shall be set out by amendment to the lease agreement. 7C. The value of a system asset shall be calculated by one method for assets that are personal property and another method for real property. An asset that is personal Tigard Water Supply Agreement 2"d Draft 1219109 Page 5 property shall have that asset's depreciated value over its useful life using straight line depreciation as are set out in the "Tigard Water District System Assets and Liabilities Final Report" of November 1994 , Section Il. The depreciated value shall be based upon the useful life of the capital improvement under generally accepted accounting principles using a straight line method of depreciation. An asset that is real property shall be valued by an independent appraisal at such time as the property or a portion of same is assigned, sold or otherwise conveyed and at the time of any Party's termination or the dissolution of this Agreement. 7D. The proceeds of any sale or other conveyance of any portion or all of a system asset that is real property shall be allocated to each Party according to its current ownership share and shall be held in trust for that Party until the Party directs the disposition of same. 7E. Tigard shall maintain all system assets and shall recommend to the IWB the disposition of any asset that is or becomes surplus to the needs of the water supply system. Tigard shall adequately insure all system assets against all risks of loss. Tigard shall prepare and maintain a current list of all system assets including but not limited to intake facilities, treatment plants, transmission lines and storage and pumping facilities showing the general location relative to major streets and political boundaries, the original date in service and the original cost to acquire or to construct the asset. A list of such facilities that is current as of the date of this Agreement is attached as Exhibit X to this Agreement and incorporated by this reference. Tigard on any served Party's request shall calculate the value of that Party's ownership share of a system asset for that Party's use in its annual budget as may be required by GASB rules. 7F. For the duration of this Agreement each Party shall be entitled to dispose of 2 percent of the revenue collected from customers within that Party's boundary by written direction to Tigard. Tigard shall dispense that amount to a Party on a Party's request at least once annually. A Party may direct Tigard to hold such revenue in a segregated fund in trust for that Party pending the Party's further direction on the disposition of that revenue. 7G.Tigard shall make the same public meeting space(s) that are used for IWB meetings available to any Party on request free of charge on reasonable advance notice for that Party's occasional use for a public meeting whether or not the meeting is related to the water system. [Discussion at December 9, 2009 meeting ended here] 8. Division of Assets on Termination or Dissolution. 8A. Upon termination of this Agreement, the Parties shall divide assets using the same procedures as are set out in ORS 222.540 for partial withdrawals of territory from a Tigard Water Supply Agreement 2"d Draft 12/9/09 Page 6 water district upon annexation to a city. Add provisions for assumption of debt by terminating party allocated to area withdrawn from the service area. 8B. Revenues generated by operation of the water supply system shall not be subject to distribution or accounting on a served Party's termination and shall not be subject to an equitable- or other claim by that Party. 8C. A terminating Party may offer to convey its ownership share of system assets to Tigard and may waive its rights to a division of assets as provided in this Agreement in consideration of a wholesale contract for water supply between the terminating Party and Tigard. Any such contract is subject to IWB review and approval as provided for herein. If the asset is not essential to the operation of such jurisdictions' water system, Tigard may terminate such jurisdiction's rights in the system asset capital improvement by payment of a sum equal to the Jurisdiction's Proportionate Interest in the depreciated value of such system asset. 8D. Tigard shall have the first right of refusal to purchase a served Party's share of a system asset on that Party's termination of this Agreement or on the Parties' decision to sell all or a portion of a system asset, on the same terms and conditions as offered to any other person or entity. The offer to purchase and Tigard's exercise of its rights as to that offer shall be on the same terms as in that certain lease agreement between the served Parties and Tigard for the property commonly known as 8777 Burnham Street, Tigard, Washington County, Oregon. 9. Accounting and Records. 9A. Tigard shall account for the operation and maintenance of the water system as an enterprise fund using generally accepted accounting principles applicable to utility enterprises for the recording and identifying of all revenues and expenditures. The IWB may review and make recommendations on the means and methods of such accounting from time to time. 9B. Tigard shall respond in the normal course of business to all requests for public records by persons who are not Parties and shall defend the other Parties and hold them harmless from any and all claims or legal actions made or filed by the person making the records request. Tigard shall make all financial records relating to the supply system available to any Party for inspection and copying on reasonable advance notice and during Tigard's ordinary business hours. 9C. Tigard shall present the proposed annual budget for the water system to the IWB for its consideration and recommendation(s) prior to Tigard's adoption of that budget. Tigard shalll provide a copy of each year-end financial audit of its accounts to any Party upon that Party's request. 10. Annexation and Changes to Service Area. Tigard Water Supply Agreement 2"d Draft 12/9/09 Page 7 The Parties' combined service area as it exists on the effective date of this Agreement is shown, with relation to the Parties' political boundaries, on Exhibit X to this Agreement, attached and incorporated by this reference. An annexation of new territory to any Party's political boundary and annexation-related changes to political boundary between any of the Parties shall be subject to the process for boundary changes set out in Metro Code and in state law. The determination of what Party or what other entity shall be the water supply provider for the area to be annexed shall be decided by that process. Each Party to this Agreement reserves all of the rights granted by Metro Code and state law to appear and be heard in those proceedings. Any of the served Parties may enter an urban services provider agreement with Tigard as to the water supply provider within all or a portion of that served Party's political boundary by the process set out in state law for such urban service provider agreements. 11. Amendment. No amendment to this Agreement, including a substitution of any exhibit to this Agreement with a different version of same shall be effective unless in a writing signed and dated by all Parties and shall not be effective before the date last signed. 12. Severability. if any portion of this Agreement is for any reason held to be invalid or unconstitutional by a court of competent jurisdiction, all remaining portions of this Agreement shall remain in effect until this Agreement is terminated or expired. After any declaration of invalidity or unconstitutionality of a portion of this Franchise, any Party may demand that one or more other Parties meet to discuss amending the terms of this Agreement to conform to the original intent of the Parties. if the Parties are unable to agree on a revised agreement within ninety (90) days after such a court decision is final and binding, any Party whose rights and obligations are affected by the decision shall have cause to terminate this Agreement by delivering one hundred and eighty (180) days notice to the other Party. 13. All parties agree in good faith to execute any and all real property conveyances deemed necessary or desirable to show each Party's share of ownership of such property as provided for in this Agreement. Tigard Water Supply Agreement 2"d Draft 1219109 Page 8 City of Tigard 13125 SW Hall Blvd. Tigard, OR 97223 i Phone: 503-639-4171 TIGARD FAX TRANSMITTAL Date January 6, 2010 Number of pages including cover sheet 3 To: ❑ The City of King City (Fax No. 503-639-3771) ❑ The City of Durham (Fax No. 503-598-8595) From: Kathy Mollusky Co: City of Tigard Fax#: 503-684-8840 Ph#: 503-718-2594 SUBJECT: Intergovernmental Water Board Meeting Agenda MESSAGE: Please post the attached agenda for the upcoming meeting of the Intergovernmental Water Board. Thank you. I.XENGTFAX.DOT hp officejet 4200 series 4215 Personal Printer/Fax/Copier/Scanner Log for City of Tigard PW 5036848840 1 /6/2010 5: 17PM Last Transaction Date Time Type Identification Duration Pages Result 01/06 05: 16p Fax Sent 5035988595 0: 35 3 OK Fvp ' officejet 4200 series 4215 Personal Printer/Fax/Copier/Scanner Log for City of Tigard PW 5036848840 1 /6/2010 5: 15PM Last Transaction Date Time Type Identification Duration Pages Result 01/06 05: 14p Fax Sent 5036393771 0: 51 3 OK CITY OF TIGARD, OREGON TIGARD CITY COUNCIL RESOLUTION NO. 10- A RESOLUTION WITHDRAWING THE CITY OF TIGARD FROM THE JOINT WATER COMMISSION QWC) WHEREAS, in August, 2008, the City executed a partnership agreement with the City of Lake Oswego to jointly develop municipal water supply,thus selecting a future source; WHEREAS, the City consequently notified its partners in the Tualatin Basin Water Supply Project (Project) that the City of Tigard (Tigard)was withdrawing from future investment into the Project; WHEREAS, partnership in the Project is a requirement for continued membership in the Joint Water Commission QWC); WHEREAS,in May 2009,Tigard provided notice to the JWC of its intent to withdraw from the JWC;and WHEREAS, the parties agreed that Tigard's membership would terminate upon payment of all sums due Tigafd under the Water Service Agreement no later than June 30,2010;and WHEREAS,Pursuant to Article 11 of the Water Service Agreement,JWC and Tigard have agreed on the terms and payment for Tigard's interest in JWC assets. NOW,THEREFORE,BE IT RESOLVED by the Tigard City Council that: SECTION 1: Tigard acknowledges receipt of $134,000 from the JWC and agrees that such amount constitutes all sums due and owing to Tigard for any right, title and interest it may have to JWC assets. SECTION 2: By signing below Tigard shall have no further interest, rights, obligations or duties under the Water Service Agreement from that date and shall make no claim thereto. SECTION 3: This resolution is effective immediately upon passage. PASSED: This day of January 2010. Mayor- City of Tigard ATTEST: City Recorder- City of Tigard RESOLUTION NO. 10- Page 1 0�SAKE OS'y`CO CITY OF LAKE OSWEGO COUNCIL REPORT �REG�N TO: Mayors Jack D. Hoffman and Craig Dirksen Members of the Lake Oswego and Tigard City Councils City Managers Alex D. McIntyre and Craig Prosser FROM: Joel B. Komarek, P.E., Project Director SUBJECT: Lake Oswego/Tigard Water Supply Expansion Project — Implementation Update. DATE: January 7, 2010 ACTION This study session provides an opportunity for staff from the partner cities to update the Joint Councils on the status of Project' activities that have occurred since the Intergovernmental Agreement (IGA)was signed by the two cities in August 2008. In addition, staff seeks the Joint Councils' concurrence with proposed early implementation activities related to the initial expansion of Lake Oswego's water supply system. INTRODUCTION/BACKGROUND For over two decades, the cities of Lake Oswego and Tigard have shared the use of water from the Clackamas River with Lake Oswego being the supplier of surplus water to Tigard and Tigard being the purchaser of that water. It has been a mutually beneficial relationship. Beginning in 2005, the two cities joined together to fund a comprehensive analysis of the opportunities and costs of jointly planning, funding, constructing and operating an expanded water supply system for the benefit of their citizens and wholesale customers. The analysis concluded that significant benefits would accrue to both cities under a partnership approach relative to an approach that would have each pursue separate paths to achieve their water supply goals. On August 6, 2008 the Mayors of Tigard and Lake Oswego memorialized their commitment to each other to undertake significant efforts to achieve these goals by ' The"Project"(initial expansion)is defined in the IGA as"The design,permitting and construction of new and expanded Supply Facilities,as generally described in the City of Lake Oswego and Tigard Water Service Area Joint Water Supply System Analysis date July,2007 by Carollo Engineers("Carollo Report")to provide 32 million gallons per day capacity by 2016..." Council Report 01/07/2010 Page 2 signing an IGA. The IGA establishes the respective roles and responsibilities of the partner cities and schedule for undertaking and achieving the initial expansion. DISCUSSION Since the signing of the IGA, the partner cities have undertaken and completed a number of IGA-required actions including: • Appointment of two members from the city councils of each partner city to comprise an Oversight Committee ("OVC"); • Designation of two staff members from the partner cities to comprise a Technical Committee ("TC"); • Authorizing a first amendment to the IGA establishing the value of assets owned by Lake Oswego that could be used and useful to Tigard during the period prior to completion of the initial expansion and which Tigard purchased in June 2009 for approximately $2.8M dollars; • Conducting several meetings of the OVC and TC to discuss matters related to delivery of the initial expansion; • Developing and jointly approving an operating budget for FY 2009/10; • Recruiting and hiring additional staff for the managing partner to ensure the obligations of the managing agency to deliver the initial expansion are achieved; • Undertaking and completing a qualifications-based competitive procurement process to select and contract with an engineering firm to provide program management, permitting and construction management services to the managing partner; and • Embarking on efforts to develop a Capital Facilities Plan and budget for approval of the partner cities for FY 2010/11. Through the use of a PowerPoint presentation, staff wishes to engage the Joint Councils in a discussion of near term implementation actions staff believes are crucial to execution of efforts necessary to achieve the initial expansion. These crucial, early implementation actions consist of: • Development and execution of a comprehensive communications strategy that is easily adaptable to be effective at informing the broad spectrum of stakeholders the Program Team (the "Tea M,,)2 anticipates will be engaged in the delivery of the initial expansion; • Soliciting the involvement of interested citizens from the partner cities to comprise a "citizen's sounding board". The primary objective of the board would be to provide a broad-based, grass roots perspective on issues presented to them by the Team during the design phase of the initial expansion; and 2"Program Team"includes members of the Technical Committee and partner agency staff and the Program Management Team from Brown and Caldwell. Council Report 01/07/2010 Page 3 • Assembling a panel of experts to provide alternatives evaluation and decision support to the Team specific to the evaluation of various water treatment technologies that could be used at Lake Oswego's Water Treatment Plant ("WTP"). Staff will seek concurrence from the Joint Councils that the reasoning and rationale behind the above proposals is sound. In addition, staff seeks direction to move ahead with efforts necessary to complete these tasks. ALTERNATIVES 1. The Joint Councils could disagree with staffs suggested need to assemble a citizen's sounding board and WTP expert panel. 2. The Joint Councils could also disagree with staff's proposed communications strategy. RECOMMENDATION Staff believe that at the close of their presentation to the Joint Councils, selection of Alternative 1 will be deemed contrary to the public's interests on such critical matters as public health and the quality of their drinking water. Staff is eager to hear from the Joint Councils ideas for improving on the initial proposals for the communications strategies. Therefore, staff recommend Joint Council concurrence with staff proposals regarding the above early implementation actions. ATTACHMENTS 1. PowerPoint Presentation Reviewed by: Alex D. McIntyre City Manager Joint Water Supply Project Program Status City of Lake Oswego—City of Tigard Joint Councils Meeting January 11,2010 .4- _. �UNIRF AIE uSVATERFwELl4t IRfATED WAIER PWELINF `WATER FAI IIII'/ 5 RAP- r M ®Lake Oswego•Tigard Water Partnership r� f Introductions Program overview Permitting overview Communications strategy WTP process selection Action items for Councils Discussion of action items 2 I Program Background • • Purpose L 9 Lake Oswego • Peak season demands are approaching treatment capacity Respond to new contaminants of concern, e.g., PCP's & EDC's Beneficial use of existing water rights Tigard • Become an owner of water supply assets More control over customer costs of water Owning assets allows cost recovery through SDC's 3 Program Background • • Purpose (Cont.) Lake Oswego Tigard • Expanded water system to serve both communities Sharing capital and operating costs to reduce rate impacts Rate stability Region Improved water emergency response capabilities Reliability through interconnection of multiple sources Partnership sets example of benefits of regional cooperation • Improved opportunity to access multiple sources for environmental and economic benefits o� 4 '•o, 2 Program • Program C Organization ...................... o.uo. Program Woager c.rw.•wt.r. Pu61ic OuVeacLProgram Permlls Project ccnsimctlon I,Itorrnnllon Definition Management °p 5 Program Action • Months • Begin permits process • Develop communications strategy • Select WTP process Determine conveyance alignments Continue water rights process 6 ?�y, 3 W.1—Floss—i" SHPOClearance COED NPOES 1200•C • • • City of Lake Osvrego Permits Eatementa 11 Lak 'Cl Pum Station DIA DVVP D sign C.rhf—h l Plain Gbarance .y, ODES DWP Design CartilicaUon NPDES 1200-C ODEA NPDES 200-J I T d Permits OOEo NPOES/200 C Iger Finlshad Water Pioehm SHPO GNu-. •� USACE BtcUen 404110 d ODSL Removal Fill ,s Cdy of Weal Linn Permll Federal Endangered Sperm Act ComullaUon Millin 4 .. NMFS Mgnuson St.—Act ODEA fcalion NP ODEO NPDESES 1 1200-C ODFW Mitigation Policy 0007 N-Permit SHPO Clearance CneS ar Lake 0-9,Tigardd West Llnn Pe— k" Lake Cotponlbn Easement UPRR Enter aenmpnl Permit 1 Eesemertts Raw Water,d Sp e USACE Sec ten 4M110 A ODSL Removal Fill 91a1e d Federal EMangeretl Sp-We Ad Consultation USFIYS.9nu..ry Bird Treaty Act NMFS Magnuson Stevens Ael Legend OR Stale,Parks Cleckamaa R—Intake ODEA 401 Certification USFWB Mitt"'ry Bi;it Treaty A"xisting and Proposed ODEQ NPDES/2110-C USACE Section 404110 6 ODSL Rinn—I Fill ODFW Mitlgelion Paltry Federal Endangered Specie AV Consullallon Parallel Pipeline COOT%-Permlt NMFS Magnuson Stevens Act SHPO Claara ice O WRO Water Rights Cities of Gladslom d West Linn Permlls ODE q 401 Cerllficat— Cbckamas Courcy Permlb ODEQ NPDES 12MC Easements ODFW Mitigation Polley SHPO Cieannce City of Gladstone d Clackamas County Permits Easements Traditional Permit Acquisition Process Environmental n yst �J l Process Collaborative . • • Based on a strategy developed by the Partnership Uses frequent and early communication with regulatory agencies and the public Uses scientifically sound, unbiased data with agency and community input to make decisions Accommodates broad advisory agency input Collabor . . . . . Limits concurrence to each agency's legal authority * Built on 10 years of regulatory agency collaborative process, but uses an agreement Successful on-going implementation for Columbia River Crossing (1-5) and Tualatin Basin Water Supply Project 10 ti Permit Acquisition Schedule 7010 2011 1017 2013 Trvah Name S1a11 F N 01 OZ 09 02 OI 02 03 01 Of 02 O7 01 O1 02 O7 02 + DOIMOPP•mR Acquw SpaWgx +2,1712009 6.3M010 co19Ym W.M,SYMM 121152009 0131"010 3 Env.gnm.nUt Palmminq 7111"10 51171"17 knutr Ld.a M.ahv. 711/1010 7712010 En.ildvnen4l Process 5 1M1.P.an.rn F-,(3,c — 525/2011 u31lf011 , point f NMFSNSFWS ab109kal Op"- 1211u2M1 01122012 T0.Pa11M11 NO—Pohl WI V2012 1110,2013 a Envam—.P.—A—.d W 10'7013 91172013 l 9 W—R1pMs S.cv.d 12/172009 10/4/2013 10 Land Us.Approvals 7112010 10'42013 Rph—f-W.,5-4 7112010 10/42013 7 D..Ipn ApproaN 711,2010 Ib42013 I +7 Perm ds Clearances 8 Approval' 10.11"13 10•7f1013 in N.oa 11 Communications Strategy Foundati • Includes outreach, public EcoViable Feasible Technically involvement, media relations, public relations, ` facilitation, mediation Why public involvement? �- Environmentatly N Publicly Supports Councils' Compatible Acceptable ultimate sustainable decisions Sustainable Decisions me�° 12 ! 6 Communications StrategySix-Month Goals2010 2010) Create communications materials and tools Develop clear information on the project and key issues rc Re-engage and inform Lake Oswego and Tigard policymakers • Community education process underway • Inform news media 13 � ommunications • • Six-Month Goals2010 — 2010) • Identify key stakeholders; make initial contacts • Update/validate community values and principles • Support: — Business Case Evaluation — Collaborative environmental process and permitting Develop plan for next phases K €1 14 pMp 7 Proposed Early Im • • Actions Communications Strategy Jan—Feb Develop Citizen Sounding Board Jan—Feb Citizen Sounding Board Facilitation Feb—ongoing Project Website(in progress) Dec—Jan Public Opinion Research Jan—Feb Stakeholder Interviews Jan—Feb Materials and Tools Jan—Feb 15 ZoO Proposed Citizen Sounding Board IL • Eight to twelve community members from the Partner jurisdictions • Members assembled by agency staff • Reports to Program Director • Drawn from related fields of expertise / experience ✓ Engineering ✓Sustainability ✓ Finance ✓Government ✓ Environment ✓Communications 16 ° s 8 Proposed Sounding i • • (Cont.) Purpose • Identify important issues early on • Provide balanced review of problems/opportunities • Improve outcomes by bringing more perspectives to the table Assignment • Begin in February 2010 • Meet bi-monthly over the first year • Topics: water treatment technology, facilities design, conservation measures and public outreach A 16p p 17 • ft Project Website �Mhtw � w�. fW�YwN.ww.•w.� y ti J IY}aMw• �.•�wuro..N.d,c. •wwcr..r� .. �I 3 18 http://www.lotigardwater.org/DRAFT +, r 9 Goals for • • Inclusive, transparent, repeatable — Offers more holistic approach to major program decisions — Incorporates community values — Gives full consideration to Economic,Environmental, and Social/Community factors(the Triple Bottom Line) _•I — Withstands future scrutiny Assesses potential risks & mitigation strategies • Monetizes evaluation factors Engages experts for broadest perspective • Seeks Council input at key steps Recent success for Victoria, BC ` 19 EvaluationBusiness Case Process Supports Sustainable Decision on WTP Upgrade Alternative �L t - 1 Form Expert Team Your Staff+ Document Problem Linked to z Level of Service Define Evaluation Boundaries- �Dl�ff 1 3 Link to Level of$emce/ Community Values 4 Brawstorm Alternatives and Screen rata)claws Collect Data on Costs and Benefits S Economic,Environmental,and w0ftrr��2 it Community Risks and Opportunities Monetize Environmental and 6 Community Criteria Undertake Net Present Wbrbhap3 7 Value Analysis 20 R Determine Preferred Solut on •Mri 10 • Eel iii . ................ n 21 Wide RangeofTreatmentIlternatives Available, • Cost 1 1 TreafmNl[ Technology D rest filtratior Membranes Granular Advanced activated wddation car oon processes CURRENT REGULATIONS REGUf ATTO�15 Le"I of Particulates Cryptnspo idiom Organics Difficult to Service Turbidity knharxed remove organics Coliform particulate removal Giardia 22 Virus tt Water Treatment Plant Panel oms Membership — Agency staff — Process experts from several design firms — Public health and regulatory expert — Oversight Committee and Citizen Sounding Board representation Mechanics for engaging outside experts — Stipend for participation — Design firms still allowed to pursue WTP design contract Benefit of BCE process: a recommendation the Councils can support 23 ,0 Action Items Councils Endorse communications strategy Endorse expert panel for WTP process decision support Endorse Citizen Sounding Board d�°pOpj 24 '•,`� 12 w • • Action 11 a '' Joint Councils and program management team 25 cre., For qF 11111111111111111P qr Closing of Council Tigard a, Lake Oswego I ' 26 } Hot Line: (503) 697-6502 http://www.lotigardwater.org/DRAFT(active in late January) Joel B.Komarek,P.E. David A.Prock,P.E. Jane Heisler Project Director Deputy Director Communications Director (503)697-6588 (503)697-7417 (503)697-6573 jkomarek@ci.oswego.or.us dprock@ci.oswego.or.us jheisler@ci.oswego.or.us Dennis Koellerrneier Eric Day Laura Barrie Public Works Director Associate Planner Administrative Support City of Tigard (503)534-4238 (503)534-4239 (503)718-2596 eday@ci.oswego.or.us Ibarrie@ci.oswego.or.us Dennis@tigard-or.gov V27 )S sary of Terms AM lili!L _MMM_ - mom PCP — Personal Care Products EDC — Endocrine Disruptor Chemicals SDC— Systems Development Charge CEP — Collaborative Environmental Process LOS — Level of Service WTP — Water Treatment Plant 2s i-j Lake Oswego / Tigard Water Supply Analysis Values & Principles Secure Lake Oswego's and Tigard's water future, ensuring both communities can meet their long-term growth needs. Demonstrate cost savings and favorable rates when compared with other supply options. Maintain conservation as the highest priority water resource, before pursuing other supply options. Retain / obtain ownership interest in long-term drinking water resources. Retain and perfect Lake Oswego's full Clackamas River water rights, while assuring protection of habitat and the environment. Design the Lake Oswego /Tigard partnership to offer parity— fairness — balance. Develop redundant water sources, for backup and emergencies. Promote equitable distribution of natural resources throughout the region. Communicate openly with policymakers and the public, educating them on the communities' current water sources, water system assets, future infrastructure needs and various supply options. Nurture cooperation among Lake Oswego, Tigard and surrounding communities that is beneficial to drinking water and other public services. Expand Lake Oswego / Tigard leadership in regional water supply decision making. s COLLABORATIVE ENVIRONMENTAL PROCESS The Collaborative Environmental Process (CEP) establishes a process for coordination of the Endangered Species Act (ESA) consultation,National Environmental Policy Act (NEPA) process, and other applicable federal, state and local regulatory programs. The CEP coordinates involvement in the ESA consultation and the NEPA planning process,including the ultimate development of a Biological Assessment (BA), Biological Opinion [by National Marine Fisheries Service (NMFS) and U.S. Fish and Wildlife Service (USFWS)], Environmental Assessment (EA) and Finding of No Significant Impact(FONSI). The purpose of the CEP is to coordinate between the Project Sponsors (Lake Oswego and Tigard), the Lead Agency [U.S.Army Corps of Engineer (USACE)] and the Resource Agencies. The CEP effectively ends when a biological opinion, final EA/FONSI, and final permits have been issued for the project. However, the Signatory Agencies may continue to use the collaborative;frame_Vork of this agreement through construction and ongoing monitoring as agreed to by the parties. Collaborative Environmental Process Principles The Signatory Agencies are committed to implementing'the CEP through a signed agreement. The CEP accomplishes the following principles for the ptoecss and project: • Facilitates process for ESA cool•o ation.including data collection and agreement on Reasonable and Prudent Actions.`; • Use frequent and early communication. • Use sound information,good science Viand agency and community input to make intelligent decisions. • Implement a collaboration process that is4ficient and cost effective and that integrates water,and environmental planning objectives. • Implemerit the.Permit Strategy developed by the Project Sponsors and the Lead Agency that focuses on,the development of an integrated project Mitigation Plan. • Develop a proces's and Program that reflect the missions and input of the Cities of Lake Oswego and Tigarthe lead agency and signatory agencies. • Accommodate b 6ad advisory input from each agency but limit agreement-related authorityA'4 e.-,c agency's respective legal authority. • Develop acid meet efficient and realistic timelines. Lake Oswego Tigard Water Partnership Outcomes • Secure a water future for Lake Oswego and Tigard that has strong community support and is able to serve the cities of Lake Oswego and Tigard's future growth and quality of life. • Maintain conservation as the highest priority water resource, before pursuing other water supply options. Collaborative Environmental Process Fact Sheet Page 1 • Retain and perfect Lake Oswego's full Clackamas River water rights,while assuring protection of habitat and the environment. • Develop redundant water sources, for back-up and emergencies. • Develop a Program that will meet the permitting/approval requirements of the agencies with permitting/approval authority. • Effectively implement the policy of avoidance, minimization and mitigation of impacts to affected resources. • Promote equitable distribution of natural resources throu h6il tHrr region. Tenets of Participation All Signatory Agencies agree to follow the processes intatt6gF'o nsistent Eetuig attendance and timely participation in the decision making process. A4participation 'Signatory Agencies are responsible for providing sufficient and approp -t staff with the needed ei'atise and authority to proceed with the timely resolution QF4 Agreement process. N Each Signatory Agency shall identify a single person as that agency's primary point of contact for the agreement process who will be responsible for represeiitlmg the agency in the process. Other staff may be used in a technical or supporting role as needed.Agency representatives should have sufficient authority to represent the agency during meetings and"participate in decision making. Representatives need not have signatory ad�hority to formally respond to concurrence point requests, but it is the representative's respotigibility to see that concurrence requests are reviewed by appropriate agency authorities within the poces timeline. Implementation Coordinator 4. Project Sponsors will&_g4'gnate a0.-ImplementatioWCoordinator. It is the responsibility of this coordinator to be a central point of contact for all Signatory Agencies and insure that all meeting notices and other necessary iiMormation are disseminated to participating agencies in a timely mannei.This persolf-will also be'the project sponsors primary representative at meetings and during the decision maliag,process. Workgroups and 0*-line Meetings Workgroups inlays be forme by the Project Sponsors to address any issue they believe needs more focused or techniN attention than is available within the scheduled CEP meetings. Any Signatory Agency(ies) may rec6�mmend the formation of a workgroup or single offline meeting and make recommendations regarding the composition of the workgroup. Workgroups shall be composed of all Signatory Agencies relevant to the topic available to attend and can be staffed with the existing agency representatives or other staff as needed. Generally it is expected that workgroups will report back to the CEP Group on meeting results and any action that may be needed as a result of the workgroup's effort. Workgroups will make regular progress reports during scheduled CEP meetings. Page 2 Collaborative Environmental Process Fact Sheet N Comment Points Comment points represent specific points in the project process at which Resource Agencies will be asked to provide written,advisory comments to Lead Agency and Project Sponsors. Participation in comment points by resource agencies does not represent an endorsement of the project. Comments received by the Lead Agency and Project Sponsors at these points are advisory only and treatment of advisory comments does not trigger the issue resolution process. The comment points for this agreement are: • Project Definition (Goals, Objectives,Proposed Action, and Action Area) • Preferred Alternative and Conceptual Mitigation Plan • Draft Biological Assessment Report • Mitigation Strategy and Design Criteria In order to support the collaborative process, Resource Agencies should comment on, amongst others, the following issues if appropriate: • The appropriateness of the specific comment point topic; • How the comment point topic will impact further development and ultimate completion and approval of the biological opiniQp final EA and FONSI and permits by the Lead Agency; • How the comment point topic would be consistent or inconsistent with the agency's ability to ultimately,approve or perrnii the project; • How the specific comment point topic will support the best possible project and environmental.outcome`` F Resource Agencies should focus comments on the element's interaction with resources under that agency',legal jurisdiction or expertise and on how that element may impact the agency's ultimate approval or permitting of the project,. l 1: Concurrence Point v Concurrence`Agmts represe 1 specific points in the project process at which Resource Agencies will be asked to provide a ritten concurrence on that stage of the project to the Lead Agency and Project Sponsors. Concurrence on a Concurrence Point means that the information submitted for a particular concurrence point meets the definition of"Concurrence"in this Agreement. Once a Resource Agency ha`s provided concurrence on a given point it agrees not to revisit that project topic unless there is substantial new information or substantial changes have occurred to the project. The recommended Concurrence Points are: • Methods and Data Report • Impact Analysis and Conceptual Mitigation (Conservation) Plan • Draft Joint Permit Application Collaborative Environmental Process Fact Sheet Page 3 Issue Resolution The purpose of the issue resolution process is to provide a means to resolve disagreements between Signatory Agencies. The intention is to expeditiously resolve issues at the lowest level of the organizations through collaboration and consensus.Alternative issue resolution forums (e.g., facilitation or mediation) can be used in this process. The issue resolution process may be initiated by any Signatory Agency for the following reasons: there is a disagreement on the interpretation of this agreement; a Resource Agency gives a response of non-concurrence to a request for concurrence;or any other dispute in the process that cannot be resolved by a consensus of agency representatives. Issue Resolution Process Step 1: The Implementation Coordinator begins the issue resolution process by informing all other Signatory Agencies that the issue resolution processes being initiatedand describe in detail the reasons for initiation. The notice must also indicate which-signatory agencies need to consult, either to resolve the issue or to determine how concerns can be best addressed.-, Step 2: Within ten (10) calendar days of Step 1,'the initiating ag&cy,Lead Agency,!Project Sponsors and/or other Resource Agencies involved will develop and exchange questions or comments to be addressed in white papers and identify the'change that is needed for issue resolution. Issue Resolution Process Initiate Issue Resolution Process Develop & Exchange Issues to be Addressed in White Papers f . / Develop & Exchange White Papers Hold Issue Resolution Meeting Issue Resolution with Primary Signatories Page 4 Collaborative Environmental Process Fact Sheet Step 3: Within 30 calendar days of Step 2,white papers will be developed and exchanged addressing each question or comment submitted and detailing concerns, and a meeting will be held with the next level of supervisors. The Implementation Coordinator will manage the issue resolution meeting unless any involved agency requests a mediator.The mediator may be a specialist from one of the Signatory Agencies or.a contractor (contingent upon a project's budget). Step 4: If resolution cannot be achieved at Step 3,a meeting will be held with the signatories of the agreement or their designees.This meeting will occur within 45 calendar days of the exchange of white papers (Step 3). (It is presumed that the signatories will reach an agreement on how to resolve the disputed issues). If resolution is not reached at Step 4 the Project Sponsors may choose to proceed ahead with the project. i i Collaborative Environmental Process Fact Sheet Page 5