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11/14/2012 - Packet Intergovernmental Water Board Agenda SERVING TIGARD, KING CITY,DURHAM AND TIGARD WATER DISTRICT MEETING DATE: Wednesday, November 14, 2012, 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 2. Approval of Minutes September 12, 2012 Action: Motion to approve the September 12, 2012 minutes. 3. Public Comments Call for comments from the public. 4. Water Supply Update John Goodrich No action required. 5. Update on the Draft Intergovernmental Agreement for Water Service Dennis Koellermeier No action required. 6. Residential Backflow Device Service Pilot Program John Goodrich No action required. 7. Informational Items ❑❑Winter Edition of Know H2O 8. Non-Agenda Items Call for non-agenda items from the board. 9. Next Meeting: December 12, 2012, at 5:30 p.m. Public Works Auditorium, 8777 SW Burnham Street,Tigard, Oregon 10. 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 November 14, 2012 City of Tigard 1 13125 SW Hall Blvd.,Tigard, OR 97223 1 503-718-2591 1 www.tigard-or.gov I Page 1 of 1 Intergovernmental Water Board (IWB) Minutes SERVING TIGARD, KING CITY,DURHAM AND TIGARD WATER DISTRICT MEETING DATE: Wednesday, September 12, 2012, 5:30 p.m. MEETING LOCATION: Tigard Public Works Building 8777 SW Burnham Street Tigard, OR 97223 Members Present: Gretchen Buehner Representing the City of Tigard (Arrived 5:31 p.m.) Ken Henschel Representing the Tigard Water District Keith Jehnke Representing the City of Durham Dick Winn Representing the City of King City Andrew Barrett Member-lit-Large Members Absent: None City of Tigard Staff Present: Dennis Koellermeier Public Works Director John Goodrich Utility Division Manager Greer Gaston Public Works Office Manager Kristie Peerman IWB Recorder 1. Call to Order, Roll Call and Introductions Commissioner Winn called the meeting to order at 5:30 p.m. 2. Approval of Minutes —July 26, 2012 Commissioner Winn moved to approve the July 26, 2012, minutes. Commissioner Jehnke seconded the motion. The motion passed by unanimous vote of the commissioners present, with Commissioners Barrett, Henschel,Jehnke and Winn voting yes. Note: Commissioner Buehner arrived at 5:31 p.m. 3. Public Comments Neal Brown informed the board of 6 tax lots, totaling 12.37 acres, for sale adjacent to Tigard's Sunrise property. He said these properties could possibly benefit the city. Benefits might include an expansion to Sunrise property, protection of Summer Creek, possible relocation of future water reservoir, and connections to existing trails. Mr. Brown submitted an informational packet of the properties to each board member. The packet is on file in the IWB record. John Bacon, realtor for the property owners, submitted photos to board. Photos are on file in the IWB record. Commissioner Buehner stated Tigard City Council would be the appropriate entity to consider the property purchase. Mr. Koellermeier will discuss the properties with City of Tigard Parks and Facilities Manager Steve Martin. 4. Water Supply Update Mr. Goodrich was absent. Aaron Beattie, City of Tigard water operations supervisor, reported: • August average was up about a half a million gallons per day (mgd) from last year. ■ Summer peak in the middle of August was 10.51 mgd. ■ Aquifer storage and recovery (ASR) #1 is up and running but will shut down mid- September. ■ 131 million gallons of water are stored in ASR #2. This amounts to about a 60- day supply. ■ The city will continue to use ASR #2. ■ September and October water use is expected to be approximately 8 mgd. 5. Briefing on Portland Water Fluoridation Initiative Nlr. Koellermeier reported that on September 12, 2012, Portland City Council voted unanimously to start fluoridating the Portland water supply. Mr. Koellermeier indicated Portland Water Bureau had no communication with wholesale water customers regarding fluoridation. According to Tigard's Water Sales Agreement with Portland, Tigard's wholesale water rates are determined, in part, by Portland's costs to address water quality issues. Tigard asserts fluoridation is not a water quality issue and is not an allowable cost under the terms of the agreement. This issue will be up for debate and possible litigation. Mayor Dirksen sent a letter to Portland Mayor Adams addressing Tigard City Council's concerns on communication and costs associated with implementing a water fluoridation system. The letter is on file in the IWB record. Commissioner Buehner reported Tigard City Council discussed the fluoridation issue and stated this is a short-term problem, as Tigard will move to the Lake Oswego-Tigard water supply in 2016. Commissioner Henschel stated Tigard Water District strongly objected to the way Portland handled the fluoridation issue. Tigard Water District also sent a letter to the City of Portland; it was similar to Mayor Dirksen's letter. 6. Update on the Intergovernmental Agreement for Water Service Mr. Koellermeier met with Tigard City Council to discuss concerns and get direction on the intergovernmental agreement (IGA). An outline of a proposed draft IGy will be available soon. The draft IGA will be addressed at the October meeting. 7. Update on the Willamette River Water Coalition The memorandum from John Goodrich regarding the Willamette River Water Coalition was distributed at the meeting and is on file in the I" record. Mr. Koellermeier referenced the memo and reported: ■ The Willamette River Water Coalition (WRWC) continues to maintain a utility corridor to bring water from the Willamette River Treatment Plant to the Beaverton/aloha area. ■ The City of Hillsboro will publically announce its decision to name the Willamette River as a potential water source. ■ The key players in the Haag Lake project will revisit their old studies to see what the next best option is. ■ The first location for the pipeline coming from Wilsonville will cross a Metro property called Graham Oaks. ■ WRWC approached Metro staff about acquiring an easement to place the pipeline across Graham Oaks. Metro staff denied the request. The next step will be to take the easement request to the full Metro Council. ■ The two critical areas the pipeline must cross are the Graham Oaks property and the Tualatin River in the vicinity of Roy Rogers Road. ■ The City of Tigard has not been active in the WRWC, but may be called upon to vote if it has to invest some money. 8. Informational Items Senator Burdick's Letter on the Water Pipeline through Mary S. Young Park ■ Commissioner Henschel requested background information regarding Senator Burdick's letter to the Office of the Attorney General. ■ Mr. Koellermeier stated Senator Burdick's letter addressed the deed language of having to obtain the approval of Mrs. Young's heirs in order for the Department of Justice to advise the Oregon Parks and Recreation Department to grant an easement to the City of Lake Oswego. Her letter requested the state attorney general review the history and language of the deed and allow the project to continue. The letter is on file in the IWB record. The easement issue through Mary S. Young is not resolved. Lake Oswego-Tigard Water Partnership ■ Mr. Koellermeier reported on a water partnership task to update an intergovernmental agreement (IGA) between Lake Oswego,West Linn and South Fork Water Board. The IGA directs how these three entities will deal with their emergency water intertie. When Tigard bought into the Lake Oswego water system it bought into the intertie. Tigard needs to be added as a party to the IGA, and the IGA needs to be updated to reflect the benefits to the City of West Linn in having Lake Oswego's water treatment plant expanded. ■ Mr. Koellermeier stated the critical decision for the partnership is the timing of construction contracts as they relate to the court of appeals case regarding water rights. At issue in the case are a half of the overall water rights that will supply the water system for one month in the summer. Resolution of the case may take place after construction contracts are issued. 9. Non-Agenda Items The board did not discuss any non-agenda items. 10. Next meeting: October 10, 2012, at 5:30 p.m. Public Works Auditorium, 8777 SW Burnham Street, Tigard, Oregon 11. Adjournment At 6:13 p.m. Commissioner Buehner moved to adjourn the meeting. Commissioner Henschel seconded the motion. The meeting adjourned by unanimous vote of the Commissioners present, with Commissioners Barrett, Buehner, Henschel,Jenke, and Winn voting yes. Dick Winn, IWB Chair Kristie Peerman, I" Recorder Date: Date: Tigard Public Works Department Fact Sheet Reducing Your Water Meter Size from 1-inch diameter to 3/4x3/4-inch diameter At the time water meters were first installed within the Tigard Water Service Area, the size of water meters was based on anticipated needs of customers and the fire department. For residential homes built after 1990,water meter size is based on a fixture count method (Oregon Plumbing Specialty Code) and has been properly sized based on the engineering formula,unless the property owner has permanently removed "water using fixtures or devices" from the original design or construction. If you have a 1-inch water meter with few water using fixtures in a home built before 1990, your water meter could be oversized. As a result,your water meter may no longer be the correct size to meet your current water needs. Benefits of a properly-sized meter: 1. Properly sized meters have a lower failure rate and read more accurately. 2. Smaller meters have a lower base service charge and lower booster pumping charge (if applicable). Reducing in size could save money depending on water use patterns. Remember, larger homes with multiple full bathrooms and/or multiple floors with many water using fixtures require a larger meter to ensure adequate water pressure at all times. Determine which size water meter you need To determine whether downsizing is right for you, do the following: 1. Determine the age of your home. If it was built before 1990, the meter could be oversized. Has any remodeling or additions been added that include more water fixtures? If it was built after 1990, or remodeled including plumbing fixtures after 1990,your water meter is properly sized. 2. Determine the maximum water flow on your property in gallons per minute by completing a fixture unit worksheet. This will determine your water capacity needs. Remember to count all outside hose bibs or in-ground irrigation systems. Incorrectly reducing the meter size could cause low pressure problems within your home. 3. Complete the request form with information and signatures, and submit it to the Public Works Department at 13125 SW Hall Blvd.,Tigard, OR 97223. If you have any questions, contact the Utility Manager at (503) 718-2609. 4. Fees and charges associated with removing and installing a new water meter as requested by the property owner are listed in the City fees and charges schedule. Submitted at the IWB Meeting By: 1j6h o Good fl cls Revised 10/09/2007 Date: �_� -1 Agenda Item No.: 4 Leave Blank Revised 10/09/2007 ` FIXTURE UNIT WORKSHEET - WATER METER DOWNSIZE APPLICATION Customer Name Acct No. Address of Meter Please fill in the number of each fixture as detailed below, then multiply the quantity by the point value given, and enter it at the point total. Add all point totals together for total fixture unit points. Fixture Unit Quantity Point Value Point Total Bar Sink X 1 = Bidet X 1 = Clothes washer X 4 = Dishwasher X 1.5 = Hose Bib 1 X 2.5 = 2.5 Hose Bib,each Additional X 1 = Kitchen Sink X 1.5 = Laundry Sink X 1.5 = Bath Sink X 1 = Toilet, 1.6 GPF X 2.5 = Bathtub/Whirlpool X 4 = Shower Stalls X 2 = Bath/Shower Combo X 4 = Total Fixture Points Meter Size (determined by City) Meter Cost (if applicable) $164.00 Verified by the property owner: Date: (Signature required) Verified by Date: The City will calculate the proper size water meter based on the information provided by the property owner. Meters are sized according to the Oregon Specialty Plumbing Code. ************************************************************************* FOR OFFICE USE ONLY Fixture Count Verified with Plumbing Permit Meter # Receipt# Revised 10/09/2007 FIXTURE UNIT WORKSHEET -WATER METER DOWNSIZE APPLICATION I, (name) , the property owner of (address) located in Tigard Water Service Area and served by the City of Tigard,hereby request that the property address as stated above be installed with 3/4 x 3/4 inch water meter,with the maximum flow capacity of 30 gallons per minute (gpm). This request includes the removal of the existing 1-inch water meter with a maximum flow capacity of 50 gpm. As signatory of this request, I hold harmless and indemnify the City of Tigard from any damage claims resulting or regarding any reduction in water pressure or water flow capacity that results from this action of reducing the water meter size. The fixture count is submitted and signed by me, and all information is provided to the best of my knowledge. This action is taken by the property owner to reduce the meter size to the appropriate flow capacity based on the residential property fixtures and use. The property owner holds the City harmless regarding the action or events that occurred in sizing the existing water meter, or the calculations by others to determine the water meter size. I also verify that this residential property address does not have a built-in fire suppression system (internal sprinklers as required by the Fire Marshal). As the undersigned, I also understand and have been provided information by the City of Tigard that by reducing the water meter size,the water rates based on an "increasing block method" reduces the monthly amount of water that can be used within each of the tiered rate blocks, and that under-sizing the water meter could result in low water pressure. I hereby authorize the City of Tigard to remove the existing 1-inch water meter, and install a 3/4 x /4 inch water meter to provide water service to the above stated property address. ACCEPTED BY: Name Date VERIFIED BY: Name Date Title Revised 10/09/2007 e City of Tigard , a , Fixture Unit Count, Meter Size and Equivalent Units (August 2011) Fixture Unit Count Meter Size Design Criteria Meter Hydraulic Equivalent Units diameter inches m Capacity Ratio 0 -22 5/8 inch 16 1 1 22.5 - 37 3/4 inch 24 1.5 1.5 37.5 - 89 1 inch 40 2.5 2.5 89.5 -286 1.5 inch 80 5.0 5.0 286.5 - 532 2 inch 128 8.0 8.0 532.5 — 1,300 3 inch 256 16.0 16.0 1,300.5 — 3,600 4 inch 400 25.0 25.0 3,600.5 — 8,200 6 inch 800 50.0 50.0 This table is derived from American Water Works Association (AWWA) Manual M22, AWWA Standards series C700, and Uniform Plumbing Code PC , Appendix A, Charts A-2 and A-3 Submitted at the IWB Meeting By: J)eAJAI iS k6 LLEP-ME1LP--- Date: 11-14-12, Agenda Item No.: J New IGA for Water Service Complete Ownership Outline King City Version 10/26/12 I Recitals Effective July 1,1993,the Cities of Tigard,D and KC withdrew the areas within their boundaries from the Tigard Water District. In lieu of the division of TWD assets as provided by 222.540,the e4iesthe cities and TWD entered into the IWB Agreement. The IWB Agreement provides,among other things,for COT operation and management of the entire water system wherever located and that all users within the Tigard Water Service Area obtains service at the same rates and on the same terms and conditions. COT has provided all services under the existing IWB-sincelGA since the beginning and the existing IWB agreement expires on Dec 31,2018. The Parties desire to terminate and cancel the IWB and to replace it with this,. wh-,FebylGA whereby COT assumes complete ownership of the water system within the Tigard Water Service Area(TWSA)along with the obligations set�orthl_ —— King City?Is so should we cite it?Comment[DK1]:Comment here is do we have the authority under the existing IGA to do this w/ T as obtained water supply sources in its sole name and is willing to provide those sources to KC,D and TWD in consideration of this IGA 11 Definitions]]Definitions `�ivelll Effective Date The effective date of this Agreement is and shall continue in perpetuity unless terminated as provided in Article On the effective date of this IGA,the IWB agreement shall terminate and be of no further effect. iV 9wneFshiplV Ownership In consideration of the assumption of obligations and responsibilities in Article V below,KC,D and TWD grant,convey,transfer and assign all right,title and interest in any and all water system assets of whatsoever kind and wherever situated in the TWSA to COT and COT accepts title. The water system assets are identified on EX.- KC,D and TWD agree to execute all documents to effectuate such Comment[DK2]:KC CM seems to think we need conveyances as requested by COT. COT owns 100%of�ysteml.-No tenancy in common. to define thisasautility.Ithinkheisstartingtoset up the concept of a FF or r/w permit here. � a V. COT Covenants and Obligations COT is the water provider for the*s4and shall supple water to KC,D and TWD at the same - Comment[DK3]:Need to define,maybe an exhibit, 1111 quality and on the same terms,conditions and price for the same customer types and classes as exist in COT. Full service concept. COT will be a direct retail service provider to all users in the TWSA and provide all customer service,billing,etc. COT has obtained water supply sources and will continue to develop water supply sources to achieve reliable and redundant supplies for the future demands of the�WSAI_ COT will provide that - ,_- Comment[DK4]:weare�reserve include some assuranwater to KC,D or TWD so long as they are parties to the IGA. annexed areas/ackno COT will plan,design, build,finance,operate,maintain,repair and replace the water system as necessary and recovers costs through rates. COT will develop Curtailment Plan to meet shortages in water supply and curtailment shall be equal throughout the TWSA so that all users are treated equally. COT will be responsible for demand forecasting and planning based on population information provided by KC,D and TWD. COT will be responsible for compliance with all federal and state statutes,rules and administrative processes. Responsible for all regulatory matters. COT to develop a budget for each year for review by the Water Managers Advisory Board prior to consideration,review,approval and appropriation by( Ot. COT Council is the sole decisionmaker. _ comment KC sees no need to create B and suggests that COT iust make an annual COT will be responsible for calculation of rates and charges including system development to the KC City Council.COT agrees. charges as related to the water system and to adopt rates in accordance with AWWA M-1 standards, including any system related debt coverage requirements. GOT gets full cost FeceyeFy fl9F G&M at then GbIFFent labeF and FnatelFial Fates. O&M paid an unit cast ef wateF used by eaek paFty. ARAWal fGFeG Comment[DK6]:I think you have added a concept that is not needed.This would be applicable in a wholesale environment but we are COT will be responsible for conservation programs and planning,PR/Media relations, Water going to full retail.We need to get full cost recovery Managers Board meetings and support,I tci. via our rate structure. -- Comment[DK7]:See note 5 Other Obligations? VI Water Managers Advisory IBoaro----- -------- - -- Comment[DK8]:see note s Creation of a Water Managers Advisory Board to meet at regular intervals. Purpose is to provide a forum for COT to make periodic reports to the WMAB and receive advice from the WMAB about the water system,standards of operation,conservation and curtailment practices and seasonal forecasts, to review upcoming projects and proposed budgets and rates and anything else COT deems appropriate. The WMAB is purely advisory to the COT Council. One Rep from KC,D and TWD. Can be elected or staff and appointed at pleasure of respective governing bodies. COT will advise WMAB of any proposed water sales to non-parties to this IGA but proposed sales us be on a surplus basis. _- Comment[DK 9]:Need to keep the surplus water sales in even if you delete all this section VII Right of Way COT shall have the right to use and occupy the KC and D streets and roads where water system facilities now exist or may be placed in the future. COT shall succeed to all rights and obligations that TWD may have for its existing facilities within County ROW. �OT pays KC andD a mutually agreed fee-for use of ROW.-Voluntary- -- Comment[DK10]:Need to somehow exempt COT debt service and the rates that support it from VIII Annexation the fee basis.More to come on this COT has planned for and will provide water service to areas within existing TWSA according to anticipated densities under the applicable comprehensive plan and zoning codes of COT,KC,D and Washington County. Changes in density over those anticipated within TWSA will require notice and approval by COT as to service availability New areas annexed to the TWSA will require approval by COT as to service lavailability�. _- Comment[DK11]:This whole annexation section has KC nervous.They don't want COT to IX Withdrawal have veto power over orderly annexation and they want to include a provision that COT will not serve un-annexed areas.I got them to allow health hazard A. May withdraw from the IGA upon Year notice to all parties. Withdrawal would be service extension if we acquire waiver.I suggested we could set up something again to the CWS service effective on date specified in notice. Withdrawal means COT remains as the direct retail provider letter. provider within the Withdrawing Party's(WP)territory and the WP has no further participation under this IGA. COT deals directly with its direct retail customers. There are no changes other than WP is not on WMAB. B. But a WP may withdraw and elect to re-acquire through jpurchase its distribution only _- Comment[DK12]:pushback on the concept of -. --------- .....--- --- purc value a they system within its boundaries. If so,the WP will be responsible for all costs incurred to the deed its ver rock thy.They of recognize he s s tem deed it over initially.They recognize the system may date of termination. If bonds or indebtedness have been incurred against the water system be modernized or upgraded and I think they would or real property,withdrawal cannot occur until the debts have been paid. be willing to buy that component. >In such case the WP must negotiate with COT to purchase only distribution system assets within Withdrawing Party's boundaries. No purchase of any assets owned by COT except those described above. Cost is original cost new less depreciation. >Withdrawing Party must install master meters at its expense at all connection point(s) with COT water system. Master Meter is property of COT but paid for by WP. >WP must negotiate a wholesale water purchase contract with COT OR obtain its own source. If it is a wholesale purchase contract with COT,then billings will be based on water through the Master Meters according to the terms of the contract. The costs of the master meters may be included in the rate. >If the WP obtains water from another source,then in addition to the Master Meters at connection points,a COT approved back flow device must be installed at the expense of the WP,unless COT approves the other source in its sole discretion. Thereafter the WP shall be solely responsible for all aspects of its re-acquired water system. COT shall have no further responsibility and shall be completely released from any claims relating to the water system,known or unknown. X. Termination Termination may occur for breach or nonpayment. After notice and opportunity to cure,the defaulting party can be terminated from the group. COT may elect to continue to provide direct retail service as in Withdrawal above or elect to sell the distribution system as provided above. In lieu of termination,a defaulting party can be placed in suspense status until the breach is cured. XI. Budget,Billing and Payment COT will develop an annual budget and projected rates each year and provide to the WMAB�of - comment[DK131.Bypass WMAB per comment review and comment on or around . Based on anticipated usage and other allocation factors Sand go straight to their Counci I in February. adopted by COT in its discretion,a tentative rate for all customer classes will be developed. COT Council will approve the budget and rates as part of COT processes with notices to all direct retail customers within the TWSA as required by law. The direct retail customers will pay COT directly for monthly use fees,SDCs and other fees and charges adopted by COT KC,D and TWD will direct all persons seeking connection to the COT water system to conduct all transactions directly with COT. XII. Dispute Resolution Process Negotiation Mediation Arbitration or Litigation XIV. Lawyerly Boilerplate 0 2 o f f . SAat the IllMeeting By: i GI�J t Date: /Z Agenda Item No.: .` 4�NHUVOno A Message on Water Rates From Tigard Mayor Craig Dirksen a� n 2008,after exploring all p ' � available options, and on the recommendation of our Citizen Advisory Committee,the City Council and I made k rqP1 the decision to partner with the City of Lake Oswego to build a new water system;a system that would meet both Tigard's and Lake Oswego's Lake Owego MayorJndieHamnwstadand TigmdMayorCmigMrksenareskown future water needs.This water partnership is the signing the wa`erpartnersk'pagreenentonAugust 62M,, Questions? culmination of Tigard's 15-year search to obtain Tigard water customers have experienced significant Tigard has the answers! ownership and control in a secure,dependable, increases in water rates over the past several years. high-quality drinking water source. In retrospect, These increases were necessary to fund partnership Your Water Bill? the City Council and I made the right decision, projects.Another 14 percent increase will take effect Utility Billing 503-718 460 During the past four years,many of the other on January 1,2013;this amounts to an additional water sources we considered have been delayed, $5—$8 a month for the typical water customer. Water Quality? have become unworkable or cost prohibitive. I know these increases have placed a financial Jennifer Joe Some of these supply options may never get burden on many of our customers,especially in jennifer@tigard-or.gov beyond the drawing board. these challenging economic times.Yet it is because 503-718-2599 of these increases—and the projects they fund— Water Conservation? In contrast,partnership projects—a new that our water future looks bright. Jennifer Joe Clackamas River intake,reservoir,pump jennifer@tigard-or.gov station,state-of-the-art water treatment plant In the end,the Lake Oswego-Tigard partnership 503-718-2599 and transmission pipelines—are taking shape. will actually save water customers millions of Backflow Prevention? Construction will be underway in 2013,and I am dollars when compared to other supply options. Hung Nguyen pleased to report that partnership projects are on The investments we make today will benefit our hung@tigard-orgov schedule and are within our original financial community for decades to come. 503-718-2603 projections.When the new water system comes Water Emergencies? online in 2016,Tigard will receive 14 million Regards, Public Works gallons of water per day—enough water to meet ,p � Z. 503-718-2591 the needs of its 58,000 customers in the Tigard 4*, After-hours Water Service Area. Mayor Craig Dirksen Water Emergencies? On-call Service For more information: 503-639-1554 ►Water Rates: www.tigard-or.gov/WaterRates General Inquiries? Utility Manager John Goodrich at 503-718-2609 or johng@tigard-or.gov Public Works ►Water Partnership: wwwlotigardwater.org 503-718-2591 2013 Water Rate Information ■ , D Water charges include a fixed monthly fixed rate.Larger meters also have higher Emergency Communication Made Easy. customer charge and a variable,or tiered, tier thresholds.Tiered water rates are a r IS water usage charge.The fixed charge is used for residential,multi-family and the price all customers pay each month, commercial customers. Industrial and Emergency regardless of how much water they use. irrigation customers are billed at a uniform For the typical single-family, residential water rate. Notification customer,the fixed charge is$20.51.Added Customers in higher elevation zones are system to this fixed charge is the water usage billed monthly for an additional booster charge,which is tiered (see chart below) pump charge.This charge recovers the depending on how much water is used. additional costs of energy and pump Will you get the call? capacity to move water to a higher For residential elevation.Atypical single-family,residential In 2007 the City of Tigard purchased an / TIER 1:the first 0-6 CCF of water customer located at a higher elevation will emergency notification system called used will be billed at$2.65 per CCF.* be billed$4.58 per month.Booster pump CodeRED.Via a recorded message, / TIER 2: 7-15 CCF of water used will charges are based on meter size.Customers the system provides up-to-the-minute be billed at$3.87 per CCF.* with larger meters pay a higher charge. information on emergencies.CodeRED / TIER 3: 16 CCF or more of water used was activated in July when Tigard's water will be billed at$4.43 per CCF.* supplier,the Portland Water Bureau,issued '1 CCF=100 cubic feet or 748 gallons For water rate questions, including a calculator to estimate your monthly water a boil water notice.The system relayed Most single-family,residential customers the boil water notice to 20,000 Tigard charges, visit www.tigard-or.gov/WaterRates have a 5/8-inch water meter. Customerswater customers—in less than an hour. or contact Utility Manager John Goodrich at with larger meters pay a higher monthly 503-718-2609 or johng@tigard-orgov. Water customers are encouraged to register their contact information in the CodeRED system.Registration is free and IMPORTANT NOTE confidential.For more information or to In addition to water service,other fees and services may appear on your utility bill. register, visit www.tigard-orgov/codered. The rate increase only applies to the water service portion of your bill. City of Tigard PxEsxT STD I ' INVITED ! i 0 " PUBLIC WORKS DEPT. U.S.POSTAGE 13125 SW Hall Blvd. PORTLAND,ox Interested in learning more r Tigard,OR 97223 PERMIT#1350 about your water? The City of Tigard serves 58,000 water customers in Durham, King * * * * * * ECRWSS City,two-thirds of Tigard and the Tigard Water District.Each of POSTAL CUSTOMER these areas is represented on the Intergovernmental Water Board. • The board meets the second Wednesday of each month at 5:30 p.m. in the Tigard Public Works Building at 8777 SW Burnham St. The public is welcome to attend! Meeting agendas are posted at • www.tigard-or.gov/IWB. This newsletter was printed on recycled paper with environmentally friendly inks. Please remember to complete the cycle and recycle this newsletter after it is read. Agenda Item No.: IWB Meeting Date-, 0 . , t 0 �.� to g o 1 - 1- 1 1 1 1 1. . @ L L P E C I A L E D i T 1 Q N OP .x ° Tigard and Lake Oswego z t City Councils Endorse Water Partnership On November 8,2010,the Questions? Tigard and Lake Oswego City Councils reaffirmed their support Tigard has the answers! Councils join forces and share drinking Your Water Bill? water.In August 2008,the two Utility Billing cities agreed to become partners 503-718-2460 in an effort to supply both cities' future water needs. Water Partnership? Dennis Koellermeier The Lake Oswego Tigard Water Bennis@tigard-or.gov 503-718-2596 Partnership will upgrade and expand Lake Oswego's existing Water Quality/Conservation? water facilities to serve both Jennifer Joe communities by 2016.This is jennifer@tigard-or.gov when Tigard's current supply 503-718-2599 contract with Portland expires. Backflow Prevention? Hung Nguyen Tigard Water Service Area(TWSA) hung@tigard-or.gov customers in Tigard,Durham, 503-718-2603 King City,and Tigard Water Water Emergencies? District will benefit from a secure, Public Works dependable water source.Under The Clackamas River is a high quality water source. 503-718-2591 the partnership,Tigard gains the ability to control future costs with an ownership share Capital and operating costs will be spread over a larger After-hours in a local high quality drinking water source,without customer base,saving money for customers in both Water Emergencies? continuing to purchase water from Portland. communities. On-call Service 503-639-1554 Both cities want to keep water affordable for their To learn more about the Lake Oswego Tigard Water General Inquiries? customers.The partnership approach allows Tigard Partnership,contact Dennis Koellermeier,Public Public Works to share costs with Lake Oswego for water system Works Director,at dennis@tigard-orgov or 503-718-2591 improvements and ongoing maintenance. 503-718-2596. Financial Plan Restructures Water Rates Tigard's share of the Lake Oswego Tigard Water system needs.The Water Financial Plan was Tiered Water Rates Promote Partnership costs—more than$100 million— adopted by Tigard City Council in November. Conservation will be debt-financed through the sale of water The plan makes several changes to the Tigard The new tiered water rates for residential and revenue bonds to be repaid over 25 years.These Water Service Area's rate structure that result in commercial customers are structured to offer a costs will be funded through higher water rates significant benefits: powerful incentive for customers to save water and system development charges(SDCs)—one- time charges paid by new development to offset / Provides a more stable revenue source and save money. the cost of new capacity. / Equitable for all ratepayers A Water Financial Plan was developed to 1 Encourages water conservation determine water rates and charges necessary to pay for water source ownership,ongoing water system operations and other long-term water M Fi} TIER TIER THREE 2� 1 Pays the lowest rate Pays 46% more for any water Pays 14% more for any water used used over average user over the mid-range user Rates & Charges are Changing Council Acts to Hold Down Future Rate Hikes Fixed charge proportional to meter size: In August,the Tigard the projected rate To make the rate structure more equitable,the City Council learned Even with the rate increase, increases were cut fixed charge will now be proportional to the size that customers drinking water will cost in half. Although d customers onlan of the meter. could face annual Tigard Y customer rates will rate hikes above 30 a penny per gallon. continue to rise in the Increase fixed"customer"charge: percent-for several future as Tigard pays The Financial Plan determined the fixed charge years.Council for its share for the —the flat charge paid by every customer—was members urged financial planners to water partnership,the rates are expected to too low in comparison to fixed costs(expenses find ways to reduce the impacts. Using increase only another 14 percent annually that must be paid each year no matter how a financing method known as Bond in 2012 and 2013 instead of 32 percent as much water is consumed).Increasing the fixed Anticipation Notes,along with other tools, orginally predicted. charge provides a more stable revenue source to pay for the ongoing yearly expenses that are not linked to fluctuations in water use. Introduce a tiered water rate: Under the old rate structure,rates did not vary by the quantity of water used.With the new tiered system,most customers(residential, multi-family and commercial)will pay more Tigard City Councilfrom left:Council for the water they consume beyond certain President Nick Wilson,Sydney Webb, The neig hboring f cities o Tigard Mayor Craig Dirksen,Gretchen _ g threshold amounts.This will encourage water Buebner,and Marland Henderson. and Lake Oswego have been conservation. _ drinking waterpartners since 1972. New Water Rates Take Effect January 1 Water charges will include a fixed Monthly Customer Charges-January 2011 "customer"charge and a variable"water Meter Size JI customer Charge Meter Size Customer Charge usage"charge.The fixed charge is the 5/8"x 3/4" $15.78 4" $567.12 price that all customers pay regardless ill $35.40 6" $635.88 of how much water they use.The fixed charge is$15.78 for a typical single family 1 1/2 $93'49 8" $993.12 "residential"customer.A water usage charge 2" $151.68 10" $1,832.55 is added to the customer charge,which is 3" $298.56 12" $2,592.94 tiered depending on the volume of water used. Tiered Water Rate Thresholds (in CCF)-Increasing Blocks For a residential customer: ► Tier 1:The first 6 CCF(100 cubic 5/8"x 3/4" 6 15 Over 15 feet or 748 gallons)of water is 1>> 16 40 Over 40 billed at$2.04 per CCE 1 1/2" 48 120 Over 120 Water use greater than 6 CCF 2„ 78 195 Over 195 j is billed at the next tier � 3" 137 344 Over 344 / Tier 2:Over 6 to 15 CCF of water is 4" 282 705 Over 705 billed at$2.98 per CCE 6" 300 750 Over 750 Water use greater than 15 CCF 8" 480 1,200 Over 1,200 is billed at the next tier 10" 938 2,345 Over 2,345 ► Tier 3:Over 15 CCF of water is billed 12" 1,350 3,376 Over 3,376 at$3.41 per CCF Customers with larger sized meters pay a Monthly Tiered Water Rates(per CCF) higher"customer"charge based on an Classification/Type - increasing scale.Larger meters also have Residential $2.04 $2.98 $3.41 higher water rate thresholds according Multi-Family $1.70 $2.48 $2.84 to size.Tiered water rates are used for Commercial $2.32 $3.38 $3.87 residential,multi-family and commercial Industrial" $3.23 $3.23 $3.23 customers.Industrial and irrigation Irrigation* $4.59 $4.59 $4.59 customers are billed at a uniform water rate. No tiered rate structure for industrial and irrigation customers. Customers located in higher elevations are Monthly Booster Pump Charges* billed monthly for an additional"booster Booster Meter Size Booster Charge pump charge."The charges recover additional costs of energy and pump 5/8"x 3/4" $4.08 4" $191.41 capacity to provide water to these customers. ill $10.87 6" $203.75 A typical single-family residential customer 1 1/2" $32.60 8" $326.00 located in a higher elevation will be billed an 2" $52.93 10" $636.93 additional$4.08 per month.Booster pump 3" $93.33 12" $917.17 charges are proportional to meter size. Customers in higher elevation zones that require additional pumping. IV If you have questions regarding your city Want to ter rate? _ utility bill,contact Utility Billing at �gure out Your new water 100 CUBIC FEET(CCF) rrJ'the Online rate calculator! 1 CFF=748 gallons 503-718-2460.If you have questions regarding water rate increases related to It helps customers estimate and _ the Lake Oswego Tigard Water Partnership, plan for their upcoming water bills. contact Public Works at 503-718-2433. Find it at www.tigard-orgov/water In Other Water News. . . =1i -own Tigard Water Service Boundary V//, Monthly Billing Coming m Tualatin valley Water District ��� i `A � Ar Early 2011 `i°'' . ��.�i �■■� <` 3� Fly The city plans to switch 9i to monthly billing next �'� TIGARD 0i year.This will replace the ' M ° M current bi-monthly billing cycle ,p; and provide customers with a more ■:■Roy'' j Qa` 4 timely account of their water consumption.With igard Wa r the increased frequency,customers can adjust their Service rea 'W� water use to avoid higher water bills. SDC Increases Proposed ••■■■■■■■■ LININ- d ■ p � CORPORATED /� ■ WASHINGTON Tigard City Council is also considering higher system COUNTY s development charges for new development.A public Beef 800j'ad r 0g.■■„t1A■: KING _ Durham Road meeting will he held Tuesday,December 14,at 7:30 ; CITY p.m.in the Town Hall Conference Room, 13125 SW � ”'"'_•■''�• g Hall Blvd.,Tigard,OR 97223. Citizens are invited to ■ �.■►`. �'� �•... provide testimony regarding the proposed SDCs. ��.•'"■�.' Aar N Did you know? For more information: In the 1970s, our service area was supplied To learn more about the upcoming changes water by only four deep wells. Water to Tigard drinking water rates and charges, restrictions were in place every summer. visit www.tigard-or.gov/water or you may Connections to Lake Oswego and Portland Lake Oswego•Tigard " Water Partnership contact John Goodrich,Water Division, ,.a� allowed these restrictions to be liftsharing water-connectingcommunities at johng@tigard-or.gov or 503-718-2609. . . . • • • • • • • • • • • • • • • • • • • • • ■ • • • • • ■ • • • • • • • • • ■ • • • • • • • • • • • • • . . . . . . . . . GET INVOLVED!The Intergovernmental Water Board consists of representatives from the jurisdictions within the Tigard Water Service Area.Public meetings are held on the second Wednesday of each month at 5:30 p.m.in the Tigard Public Works Building Auditorium,8777 SW Burnham Street in Tigard,Oregon. City of Tigard KNOW: EDITION PRrsRT STD PUBLIC WORKS DEPT. U.S.POSTAGE • 13125 SW Hall Blvd. PAID • Tigard, OR 97223 PORTLAND,OR / New Water Rates Take Effect January 1 PERMIT#1350 / Tiered Rates Promote Water Conservation • • * * * * * * ECRWSS ► Online Water Rate Calculator at POSTAL CUSTOMER www.tigard-or.gov/water • / Lake Oswego and Tigard City Councils i4M Reaffirm Partnership • • This newsletter was printed on recycled paper with environmentally friendly inks. Please remember to complete the cycle and recycle this newsletter after it is read. Intergovernmental Water Board JWB) Minutes SERVING TIGARD,KING CITY,DURHAM AND TIGARD WATER DISTRICT MEETING DATE: Wednesday, November 14, 2012, 5:30 p.m. MEETING LOCATION: Tigard Public Works Building 8777 SW Burnham Street Tigard, OR 97223 Members Present: Gretchen Buehner Representing the City of Tigard Ken Henschel Representing the Tigard Water District Keith Jehnke Representing the City of Durham Dick Winn Representing the City of King City Andrew Barrett Member-At-Large Members Absent: None City of Tigard Staff Present: Dennis Koellermeier Public Works Director John Goodrich Utility Division Manager Greer Gaston IWB Recorder 1. Call to Order, Roll Call and Introductions Commissioner Winn called the meeting to order at 5:32 p.m. 2. Approval of Minutes — September 12, 2012 Commissioner Buehner moved to approve the September 12, 2012, minutes. Commissioner Henschel seconded the motion. The motion passed by unanimous vote of the commissioners present, with Commissioners Barrett, Buehner, Henschel,Jehnke and Winn voting yes. 3. Public Comments There were no comments from the public. 4. Water Supply Update Mr. Goodrich reported: ■ Average water use for the month of October was about 4.5 million gallons per day (mgd). This is about .5 mgd more than was used in October 2011. Page 1 of 6 ■ At present aquifer storage and recovery (ASR) well 1 is being utilized for native groundwater storage. • Ninety million gallons of water are currently stored in ASR well 2. Injection started today, and staff expects to store about 215 million gallons of water prior to next summer. This amounts to about a 48-day supply. ■ The winter edition of Know H2O went out last week. An article announcing another 14 percent rate increase was included in the publication. Mr. Goodrich is tracking customer calls generated by the article. Note:More information on Know H2O a ,ppears under agenda item 7. ■ The board discussed water rates as they pertain to meter size and fixture count. Later in the meeting, Mr. Goodrich provided the commissioners with handouts on information and calculations related to meter size and fixture count. The handouts are on file in the IWB record. 5. Update on the Draft Intergovernmental Agreement for Water Service Mr. Koellermeier noted the draft IGA (intergovernmental agreement) for water service (King City Version), dated October 26, 2012, and had been handed out to the commissioners. The IGA is on file in the IWB record. Mr. Koellermeier reported: ■ The City of Tigard (COT) will take the 1994 state law approach. The approach would mirror that of a private utility such as Portland General Electric or Clean Water Services. Each of the I" jurisdictions (Durham, King City and the Tigard Water District) could decide to turn its distribution assets over to the COT and have Tigard maintain those assets or retain its assets and pay for service via a service agreement. ■ A franchise fee/right of way fee paid by Tigard to the IWB jurisdictions is included in the IGA; Mr. Koellermeier suggested debt service should be excluded from the fee computations. ■ King City had concerns about the COT serving areas annexed in the future and proposed that Tigard would be responsible for providing water within the legally recognized boundaries of any of the member jurisdictions. If those boundaries are extended,Tigard would supply water to new areas within the boundaries. ■ There had been discussion on whether to disband the I" and instead have the COT report directly to other city governments/district as a part of its budget process. Page 2 of 6 ■ King City asked about restricting the provision of water service outside municipal boundaries. Language to this effect will be incorporated into the IGA. ■ The agreement would be perpetual; this addresses the concern about a future water source for member jurisdictions. ■ The COT would like to get out of business of buying and selling assets from and between the member jurisdictions. If, years from now, a jurisdiction would like to take its water system back from the COT, and the COT had invested more than the average cost to maintain system, the COT would ask for some type of true up to that cost. In such a scenario, the COT could become a water wholesaler and provide water to that jurisdiction; the jurisdiction would run its own water system. Commissioner Winn indicated King City was interested in turning its infrastructure over to the COT. He considered the new arrangement with the COT similar to other utilities. Mr. Koellermeier mentioned that the member jurisdictions may decide to enter into one agreement, or separate agreements could be made with each jurisdiction. In response to the bullet point above, Commissioner Jehnke questioned—if the City of Durham turned its water system over to the COT and then decided to take the system back—it may have to pay additional costs. Mr. Koellermeier replied that a jurisdiction can decide to hold on to its distribution system and have Tigard run it. If a disproportionate amount of Tigard's operation and maintenance budget is used to improve or repair the jurisdiction's system, and the jurisdiction subsequently decides not to have Tigard run its system, then the jurisdiction would be responsible for the excess operational and maintenance costs. ■ The other scenario would be if a jurisdiction turned everything over to COT. The COT would figure the cost into the rates and distribute it evenly over the entire service area. ■ The COT is still unsure of the differential cost issues with the above scenarios. ■ The COT is in its first year of a 20-year debt repayment scenario. If the member jurisdictions want to explore other water providers/options, now is the time to explore those options—before the jurisdictions' customers fund several years of debt service payments. Page 3 of 6 ■ The COT City Council liked the direction of moving away from a partnership to a service provider role. Commissioner Buehner added the COT City Council typically works in conjunction with some type of an advisory board, like the IWB. Commissioner Winn recommended additional discussion set up as a future agenda item; other commissioners concurred. Mr. Koellermeier stated an updated draft IGA will be available soon; he will distribute this to the IWB members. The commissioners agreed to wait until the updated draft IGA receives further refinement before taking it back to their respective cities/district. The board will revisit the updated version of the agreement at an upcoming meeting. 6. Residential Backflow Device Service Pilot Program Mr. Goodrich briefed the board on a new approach to Tigard's backflow prevention program. The COT currently has 4737 residential customers with backflow devices. Most of the devices are related to irrigation systems. The state requires these devices be tested annually to ensure they are functioning properly. Tigard's commercial customers are at 100-percent compliance. Over the past few years, there has been a decline in residential compliance; compliance for residential customers is as follows: Year Percentage of Residents in Compliance 2009 72 % 2010 76 % 2011 60 % 2012 57 % Based on administrative rules reviewed by the I" and put into place last year, Tigard has the authority to turn off a person's water should they fail to comply with backflow testing requirements. The COT has been monitoring Tualatin Valley Water District's (TVWD's) backflow program. Under this voluntary program, TVWD hires a third party (or parties) to test program participants' backflow devices. The testing cost—typically less than the market price—is added to the participants' water bill. TVWD's program has been successful, with 75- to 80-percent compliance. TVWD will also test backflow devices of customers Page 4 of 6 who did not enroll in the voluntary program; as a penalty, these customers pay a higher rate for testing. The COT must get authorization to check private plumbing devices, like backflow devices, on private property. COT is starting to formulate a new program, similar to TVWD's program. The COT may contract with a third party to perform testing. This may result in possible cost savings that can be passed on to customers. The program would be a voluntary. A customer may sign up Tigard's program or forego the program and perform his/her own testing. If customer fails to do either, the COT could either send out the third party contractor to do the testing or could turn off the customer's water until the device is tested. Mr. Koellermeier noted water customers with and without backflow devices are currently paying for the administrative costs associated with Tigard's backflow prevention program. He raised the question of whether customers without backflow devices should be subsidizing program costs for customers who do have the devices. The options are under review and will be discussed at a later date. 7. Informational Items ■ The winter edition of Know H2O was included in the meeting packet and is on file in the I" record. The board was briefed on Know H2O under agenda item 4. However, it was noted that staff had provided an old edition of Know H2O in the commissioners' packets. Ms. Gaston distributed the current winter 2012 edition. This edition is on file in the I" record. 8. Non-Agenda Items Mr. Koellermeier acknowledged confidential correspondence had been provided to the commissioners in a separate envelope. Commissioner Henschel requested an update on the Lake Oswego Tigard Water Partnership's land use application in West Linn. Mr. Koellermeier reported: The West Linn Planning Commission (WLPC) denied Lake Oswego/Tigard land use application for the water treatment plant and pipeline. The basis of their denial is that the application did not meet code requirement benefit whereby the projects have to provide some benefit to the West Linn community. Once the Planning Commission's findings are adopted, Lake Oswego/Tigard will likely file an appeal with the West Linn City Page 5 of 6 Council (WI,CC). Lake Oswego and Tigard expects the appeal to result in a multi- meeting public hearing. The partnership enacted a slow down for projects with long lead times. Lake Oswego/Tigard can delay about S2.5 million in expenditures for about three months without affecting the overall project schedule. Other alternatives are being considered, should the WLCC deny the appeal. 9. Next Meeting December 12, 2012, at 5:30 p.m. Public Works Auditorium, 8777 SW Burnham Street, Tigard, Oregon 10. Adjournment Mkt 6:55 p.m. Commissioner Henschel moved to adjourn the meeting. Commissioner Buchner seconded the motion. The meeting adjourned by unanimous vote of the Commissioners present, with Commissioners Barrett, Buchner, Henschel,Jenke, and W* n voting yes. Gretchen Buehne , I B lice-Chair Greer Gaston, IWB Recorder Date:" �. Z Date: Page 6 of 6