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05/09/2012 - Minutes Intergovernmental Water Board JWB) Minutes SERVING TIGARD,KING CITY,DURHAM AND TIGARD WATER DISTRICT MEETING DATE: Wednesday, May 9, 2012 6:30 p.m. MEETING LOCATION: Tigard Public Works Building 8777 SW Burnham Street Tigard, OR 97223 Members Present: Charles Radley Alternate 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 Note: Mr. Radley arrived at 5:54 p.m. Members Absent: Ken Henschel Representing the Tigard Water District Gretchen Buchner Representing the City of Tigard City of Tigard Staff Present: John Goodrich Utility Division Manager Greer Gaston IWB Recorder Toby LaFrance Finance and Information Services Director 1. Call to Order, Roll Call and Introductions Commissioner Winn called the meeting to order at 5:32 p.m. 2. Approval of Minutes —April 11, 2012 Commissioner Jehnke moved to approve the April 11, 2012, minutes. Commissioner Winn seconded the motion. The motion passed by unanimous vote of the commissioners present,with Commissioners Barrett,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 April was about 3.91 million gallons per day (mgd). ■ Tigard has met its aquifer storage and recovery (ASR) well injection goal. Over 200 million gallons of water are stored in ASR wells. This amounts to a 93-day supply. ■ Summer water supplies should be adequate. ■ To fulfill contractual requirements, Tigard is taking about 1 million gallons of water per day from the City of Lake Oswego. 5. Consider Malang a Recommendation to the Tigard Budget Committee and the Tigard City Council on the City of Tigard's Water Division Budget Finance and Information Services Director Toby LaFrance updated the board on Tigard's budget process. Mr. LaFrance noted two major milestones affecting water-related finances: ■ Tigard earned favorable bond ratings from Standard &Poor's and Moody's and subsequently received $103 million from the sale of water bonds. These bond revenues will fund water-related capital improvement projects. ■ Tigard hired a firm to prepare an A-87 federally-approved indirect cost plan. Based recommendations from a federal Office of Management and Budget circular, the plan establishes how Tigard allocates central service costs to direct service providers like the Water Division. Mr. LaFrance pointed out the following items which represent changes from previous budget numbers or practices. (Page numbers refer to budget materials on file in the IWB record.) Pae Line Item Change 173 54311 —Special Franchise fees have been added to the revenues in this line Department item. In the past, franchise fees were not included here. Expenses 174 58000 — The increases in these line items are a result of the indirect Interdepartmental cost plan; this is the mechanism for the Water Division to Costs fund utility billing and a portion of public works 58220 —Indirect administration. In the past, this money was shown as a Charges transfer out of the water fund. The change reflects a different method of accounting, but the actual amount of the charges is comparable to previous years. Note: Mr. Radley arrived at the meeting at 5:54 p.m. Pae Line Item Change 349 Total Transfers This number has decreased because the Water Division's Out funding of utility billing and a portion of public works administration used to be reflected here. Those costs are now reflected under Interdepartmental Costs and Indirect Char es on page 174. Commissioner Jehnke asked if Tigard staff were coding time to various funds. Mr. LaFrance replied that they are not. In lieu of coding time, the indirect cost plan establishes how staff time will be allocated. Pae Line Item Change 302 Project Summary This was used as the basis for issuing the revenue bonds. Table Tigard staff responded to some of questions submitted by Commissioner Henschel. The questions are on file in the IWB record. Vater Operating Budget 9. Page 171 "Effectiveness Measures"shows the 2092-2013 goal decreasing to 60%. Wle suspect that is a typo and should read 90%. Mr. Goodrich relayed the 60-percent is an actual number and was correct;it demonstrates that more water customers are failing to meet cross connection requirements. Staff is investigating this trend. 2. Page 172: Ale were curious why one.FTE is required for a Backflow Cross Connection Specialist. It seems like a lot. Mr. Goodrich reported Tigard monitors over 5,000 commercial and residential cross connection devices throughout the water service area. The FTE in question maintains and tracks testing data for these 5,000 devices. He also performs field site visits and inspections. Mr. Goodrich informed the board that the cross connection program is mandated by the state. 3. Page 172: Wle were curious why one FTE for Environmental Programs Coordinator is comingfrom the waterfund. One HTE seems excessive. Mr. Goodrich said the coordinator handles water quality (including the ASR program and sampling) and water conservation. Two years ago, the Water Division cut the number of coordinators from two to one. Mr. Goodrich assured the board that the current coordinator has plenty to do. Mr. LaFrance to point out items which represent changes from previous budget numbers or practices. Pae Line Item Change 351 40000 —Total Bond proceeds are shown in this line item. Beginning Fund Balance 351 49100 —Transfer This shows payments to the water Capital Improvement Plan In from General fund from the general fund and the park system Fund development charge fund for the purchase of the Canterbury 49425 —Transfer property. In from Park SDC Fund 352 40000 —Total This $8.9 million in debt service is made up of- Beginning fBeginning Fund ■ $6.9 million to make largest annual bond payment. Balance ■ $2 million in a rate stabilization account. Funds can be used to supplement actual revenues—should those revenues fall short of projections. Commissioner Winn moved to recommend the Tigard Budget Committee proposed budget as presented to the Tigard City Council. Commissioner Barrett seconded the motion. Commissioner Winn clarified the IWB was not approving the budget, but was recommending that the proposed budget be forwarded to the Tigard City Council for action. The motion passed by unanimous vote of the commissioners present, with Commissioners Barrett,Jehnke, Radley and Winn voting yes. 6. Consider Malting a Recommendation to the Tigard Budget Committee and the Tigard City Council on the City of Tigard's Water Capital Improvement Plan Budget The board did not take separate action on Tigard's Water Capital Improvement Plan. The plan was mentioned briefly in agenda item 6. 7. Discussion on Proposed Administrative Rules Mr. Goodrich noted that he had received comments on the administrative rules from Commissioner Henschel on behalf of the Tigard Water District (TWD). These comments are on file in the IWB record. Mr. Goodrich proposed these comments be incorporated into the public review process. The comments will be reviewed by Tigard staff and, if appropriate, the rules will be revised. Commissioner iehnke said the TWD made some good suggestions. The board concurred with Mr. Goodrich's approach. 8. Informational Items The board did not discuss any informational items. 9. Non-Agenda Items The board did not discuss any non-agenda items. 10. Next Meeting June 13, 2012 at 5:30 p.m. Public Works Auditorium, 8777 SW Burnham Street,Tigard, Oregon 11. Adjournment At 6:26 p.m. Commissioner Winn moved to adjourn the meeting. Commissioner Radley seconded the motion. The meeting adjourned by unanimous vote of the commissioners present, with Commissioners Barrett,iehnke, Radley and Winn voting yes. Xle ��� Dick Winn, IWB Chair. Greer Gaston, IWB Recorder Date: Date: Z wJz 2_� C� 1�