Loading...
12/10/2008 - Minutes Intergovernmental Water Board (IWB) Meeting Minutes December 10, 2008 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 Alternate Representing the Tigard Water District Bill Scheiderich Member At-Large (Arrived at 5:33 p.m.) Dick Winn Representing the City of King City Members Absent. None Staff Present. Public Works Director Dennis Koellermeier Utility Division Manager John Goodrich Attorney Tim Ramis IWB Recorder Greer Gaston 1. Call to Order, Roll Call and Introductions Commissioner Carroll called the meeting to order at 5:29 p.m. 2. Approval of Minutes— November 12, 2008 Commissioner Buehner motioned to approve the November 12, 2008 minutes; Commissioner Winn seconded the motion. The minutes were approved by unanimous vote of the Commissioners present, with Commissioners Buehner, Carroll, Henschel and Winn voting yes. 3. Public Comments: None 4. Water Supply Update Mr. Goodrich reported: ■ November water consumption averaged 4 million gallons per day. ■ Portland had experienced a turbidity event that caused a switch from Bull Run water to wells. Mr. Goodrich said Tigard would wait until the turbidity event was over before starting aquifer storage and recovery injection. Intergovernmental Water Board Minutes December 10,2008 1 5. Consider a Resolution Recommending the City of Tigard Sell the Water Building Remnant Mr. Koellermeier summarized the process to allow the IWB to dispose of the Water Building remnant parcel and the surplus Canterbury parcel. He reported each of the member jurisdictions had passed a resolution authorizing its IWB representative to execute the resolutions. Mr. Ramis confirmed the Board was being asked to consider a resolution and a tenancy in common memorandum for each property. These documents would: ■ Put Tigard on notice that the properties were being sold and allow Tigard to exercise its right of first refusal. ■ Recommend the Tigard City Council undertake the surplus property sale procedure. ■ Memorialize the fact that each of the member jurisdiction voted to dispose of the proerties. Commissioner Scheiderich motioned to approve Resolution No. 08-02, A Resolution Recommending the City of Tigard Sell the Water Building Remnant Parcel; Commissioner Buehner seconded the motion. Commissioner Henschel reported the Tigard Water District had taken action on their resolutions and had made the following changes to those documents: ■ The District added amounts of the property values to each resolution, $50,000 for the remnant and $605,000 for the Canterbury surplus property respectively. ■ The District changed section 6 of the remnant parcel resolution to say the proceeds from the sale of the parcel should be distributed to the jurisdictions according to their percentage of ownership and that the District intended to use this money to fund a conservation fair. ■ The District changed section 8 of the Canterbury surplus property resolution to say the proceeds from the sale of the parcel should be distributed to the jurisdictions according to their percentage of ownership. The Durham, King City and Tigard Water District resolutions are on file in the IWB record. Commissioner Henschel explained the District would like to use its share of the remnant parcel proceeds to fund a conservation fair in conjunction with the other member jurisdictions. He said sustainability was a timely issue and noted the District approved the resolution with the caveat that the proceeds go back to the member jurisdictions. Commissioner Henschel pointed out the District had imposed a similar caveat on the proceeds from the sale of the Canterbury property, requesting these funds also be distributed to the member jurisdictions. Commissioner Henschel acknowledged the tenancy in common agreements specified the proceeds from the sale of the properties should go to the Water Capital Improvement Project Fund, unless there was agreement to use the funds in some other way. Mr. Henschel asked the Board to consider distributing the funds to the member jurisdictions. Intergovernmental Water Board Minutes December 10,2008 2 Mr. Ramis advised the disposition of the funds could be considered as a separate issue from recommending the sale of the properties. Mr. Ramis read from the tenancy in common agreement: "The owners may sell the park property upon an affirmative vote of three out of four representative owner jurisdictions and the net proceeds distributed under the terms of Section 1 V' Section 11 says, "Proceeds received from any sale . . . of the property . . . to the extent that the proceeds are not needed for debt service, anticipated expenses, and reasonable reserves for contingencies as determined by the owners, shall be retained by the IWB as reserves for capital projects. Notwithstanding the foregoing, the owners may determine to use part or all of said proceeds to reduce or repay mortgage indebtedness, contract, or other liability incurred in connection with the property." Mr. Ramis said this language established a hierarchy of how the proceeds are to be spent. If the member jurisdictions wanted to spend the money differently, this could be accomplished through an amendment to the tenancy in common agreements. Commissioner Winn expressed his displeasure with the Tigard Water District's proposal to give property proceeds to the member jurisdictions. He said this was contrary to other decisions the Board had made. Commissioner Carroll confirmed that unless modified by the Board and the corresponding member jurisdictions, proceeds from sale of the properties would go to the Water Capital Improvement Project Fund. Resolution 08-02, A Resolution Recommending the City of Tigard Sell the Water Building Remnant Parcel, was approved by unanimous vote of the member jurisdictions, with Commissioners Buehner, Carroll, Henschel and Winn voting yes. 8. Consider a Resolution Recommending the City of Tigard Sell the Canterbury Surplus Property (Vote: Some discussion of agenda item G occurred under agenda item 5. Commissioner Winn motioned to approve Resolution No. 08-03, A Resolution Recommending the City of Tigard Sell the Canterbury Surplus Property; Commissioner Buehner seconded the motion. Commissioner Scheiderich confirmed the Tigard Historical and Preservation Society lease and the easement for future water system use were reflected in the appraisal. Resolution 08-03, A Resolution Recommending the City of Tigard Sell the Canterbury Surplus Property, was approved by unanimous vote of the member jurisdictions, with Commissioners Buehner, Carroll, Henschel and Winn voting yes. Commissioner Henschel asked for the Board's support with regard to the conservation fair. Mr. Koellermeier said there were City resources available, although he wanted to be sure a consistent message was given to all Tigard Water Service Area customers. Intergovernmental water Board Minutes December 10,2008 3 Commissioner Henschel said the fair would be open to all jurisdictions. He added the Tigard Water District was willing to take the leadership role. Commissioner Carroll suggested the District work directly with Tigard conservation staff, bringing the matter back to the Board if necessary. In response to a question from Commissioner Henschel, Board members did not express any reservations regarding participation in the conservation fair. Note: Mr. Ramis left the meeting at 5:55 p.m. 7. Discussion on Rewriting/Revising 1993 Intergovernmental Agreements (IGAs) between Durham and the City of Tigard, King City and the City of Tigard, and the Tigard Water District and the City of Tigard This item was continued from the Board's November 12, 2008 meeting. Commissioner Winn expressed reservations about the process of updating the IGAs. Commissioner Carroll responded that the four member jurisdictions would have to find an agreement that was acceptable to all parties. Page 5, Item 4.A.(2). Division of Original District Assets ■ Commissioner Buehner asked if this section required any changes since the assets had already been divided in 1993. ■ Commissioner Scheiderich commented the Board did not have a list of assets, but there was nothing remarkable about this section. It described the asset analysis to be used should a member jurisdiction withdraw from the IWB. ■ Mr. Koellermeier confirmed the assets had been allocated through the execution of the ICAs, even though deeds may not have been signed or recorded. He said other assets needed to be defined, but were not an issue. ■ Commissioner Scheiderich agreed other assets would only become relevant if a member jurisdiction withdrew from the IWB. ■ Mr. Koellermeier said this raised the question of whether the Board wanted to undertake an updated asset inventory process as part of the new agreement. He suggested assets be categorized by type, value and who they were assigned to. ■ Commissioner Henschel suggested this list be incorporated into the new agreement. ■ Mr. Koellermeier said the list should contain the date the asset was constructed and the original construction cost. This information would be used for determining value in the future. ■ Mr. Koellermeier said there were real property system assets and system assets built after 1994 that benefited all member jurisdictions. Commissioner Carroll asked for additional language to clarify or define system assets. With regard to the distribution system, this may be determined by the size of the pipe. ■ Mr. Koellermeier said if a member jurisdiction withdraws from the IWB they could continue to have access to a system asset (distribution pipe) or could cash out. Asset valuation is related to the exit clause. ■ Mr. Koellermeier suggested an asset inventory could be done as part of an upcoming master plan update and asset information could be included in the new agreement. He mentioned assets were categorized in supplemental documents to the 1993 ICAs. Intergovernmental Water Board Minutes December 10,2008 4 ■ Commissioner Buehner asked what was remaining in the old category of system assets; these assets needed to identified and dealt with in terms of new deeds, recording, etc. ■ The Board agreed definitions of the various types of assets needed to be clarified and assets needed to be categorized as "system," "other" and "critical." Page 5, Item 4.C., Division of Original District Assets ■ Commissioner Scheiderich suggested each member jurisdiction's proportionate interest should be based upon their proportion of revenue. Real market value was not relevant. ■ Commissioner Henschel questioned using depreciated value to determine the value of a capital improvement. He proposed this should be related to real market value. Mr. Koellermeier responded the public had already paid for capital improvements. ■ It was noted the value of real property does not depreciate in supplemental documents to the 1993 ICAs. Note: Commissioner Winn left the meeting at 6:26 p.m. ■ Commissioner Scheiderich advised that a member jurisdiction's withdraw under state law just divides up that share of the asset without any return on investment. ■ Commissioner Scheiderich and Mr. Koellermeier said they did not think member jurisdictions bought into the equity of the water system in 1994 when the IWB was formed. Although Mr. Koellermeier noted assets prior to this time were likely funded through water rates. ■ Commissioner Carroll concluded assets acquired since January 1, 1994 are group assets and assets acquired before January 1, 1994 are non-recoverable assets. It was requested this information be included in the asset inventory list. ■ The Board agreed to remove factor B, a jurisdiction's percentage of real market value in original district, from the proportionate interest calculation because no property tax debt is anticipated. ■ Commissioner Carroll requested the term "original service area" be used instead of"original District." ■ Commissioner Henschel pointed out some assets may fall into more than one category. ■ Mr. Koellermeier said meter size (factor C) is the most accurate factor in determining the cost to operate the water system. ■ Commissioner Carroll said revenue, meter size and consumption might be the most applicable factors to determine proportionate interest. ■ Mr. Koellermeier suggested using a cumulative meter equivalency; this would be a good measure from an operational perspective. ■ Commissioner Carroll asked Mr. Koellermeier to provide proportionate interest calculations using three formulas: 1. The existing system 2. The existing system minus factor B 3. The cumulative meter equivalency ■ Mr. Goodrich informed cumulative meter equivalency is used as an industry standard. ■ Commissioner Carroll questioned whether straight line depreciation was the appropriate way to calculate the value of a capital improvement and asked Mr. Koellermeier to research this issue. Intergovemmental Water Board Minutes december 10,2008 5 Pape 6, Item 5.A.(2), Asset Ownership/Water Rates/Revenues ■ Commissioners Carroll and Henschel proposed changing the words "agrees that it will" to "shall" or"will." Pape 6, Item 5.A.(3), Asset Ownership/Water Rates/Revenues ■ Commissioner Carroll suggested the last sentence "Where there is shared . . ." be deleted. Page 7, Item 5.13, Asset Ownership/Water Rates/Revenues ■ It was noted this item has been amended and the Board should work from the amended version which appears on Page 1, as Item 1. Paragraph S.B. on the Second Amendment to Durham's IGA. ■ Commissioner Henschel suggested the IWB should "approve" rather than "review" any higher fees, rates and charges imposed for providing water service. Commissioner Carroll commented the Board played an advisory role with regard to the rate structure, and changing this language would change the role of the Board. Mr. Koellermeier added that having the IWB approve the rates could create a problem, since Tigard, not the IWB, is responsible for the costs to operate the system. Commissioner Carroll said other members would not support a change in the role of the IWB. Commissioner Carroll and Commissioner Henschel ultimately agreed on an alternate third sentence in this paragraph which says, "The IWB shall review and make recommendations regarding any higher fees, rates and charges limited to covering the actual additional costs of providing such service." Mr. Koellermeier informed the Board he would not have the information from the master plan for several months. The Board tabled further review of the intergovernmental agreement to its next meeting. 8. Informational Items • Mr. Koellermeier reported Tigard, in conjunction with Clean Water Services, received a state grant to conduct a feasibility study on the use of reclaimed water in the Tigard downtown redevelopment area and at two golf courses on the other side of Scholls Ferry Road. • The City of Tigard approved the first amendment to the Lake Oswego water partnership last night. This amendment sets Tigard's cost to buy in to the Lake Oswego water system at approximately $2.8 million. 9. Non-Agenda Items: Mr. Koellermeier informed the Board that Tigard provides water to a small area in the Tualatin Valley Water District. Tigard has a preliminary agreement to become the official service provider for the area. The District has not been receptive to other boundary adjustments. 10. Future Agenda Items Future agenda items were not discussed. ■ Water Conservation Program Presentation. ■ Additional Tenancy in Common Agreements for Properties within the Tigard Water Service Area. ■ Presentation by Washington County planning staff regarding Areas 63 and 64. Intergovernmental Water Board Minutes December 10,2008 6 ■ Review: - Proposed Tigard Municipal Code and policy changes regarding credit-for- leak, water meters, and non-payment of water bills. - The billing insert policy. 11. Next Meeting: ■ January 14, 2009, 5:30 p.m. Tigard Public Works Building, 8777 SW Burnham Street, Tigard, Oregon 12.Adjournment At 7:12 p.m. Commissioner Buehner 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 and Scheiderich voting yes. C '1�1 �f� IWB Chair Greer A. Gaston, IWB Recorder Date: /V Uo v intergovernmental Water Board Minutes December 10,2008 7