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01/14/2009 - Minutes Intergovernmental Water Board (IWB) Meeting Minutes January 14, 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 Alternate Representing the Tigard Water District Dick Winn Representing the City of King City Members Absent: Bill Scheiderich Member At-Large Staff Present: Public Works Director Dennis Koellermeier Utility Division Manager John Goodrich Environmental Program Coordinator Jennifer Joe IWB Recorder Greer Gaston 1. Call to Order, Roll Call and Introductions Commissioner Carroll called the meeting to order at 5:32 p.m. 2. Approval of Minutes —December 10, 2008 Commissioner Henschel motioned to approve the December 10, 2008 minutes; Commissioner Buehner 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: ■ December water consumption averaged about 4.5 million gallons per day. ■ Portland is having turbidity difficulties which prevented aquifer storage and recovery injection. 5. Presentation and Discussion on the City of Tigard's Water Conservation Program for the Tigard Water Service Area Mr. Koellermeier introduced this topic. He said Tigard had reviewed the Water Conservation Program recently and developed additional ways to promote conservation. Intergovernmental Water Board Minutes January 14,2009 1 Mr. Koellermeler introduced Ms. Joe, who began a PowerPoint presentation on the water conservation program. Ms. Joe also distributed various water conservation promotional materials/items to the Board: Map of the WaterSense Toilet Rebate Program area ■ 2009 Conservation Calendar ■ 2008 Water Quality Report ■ Rain Barrels & Water Conservation brochure ■ Water conservation postcards These materials and the PowerPoint presentation are on file in the IWB record. Mr. Goodrich continued the PowerPoint presentation, discussing the effectiveness of the water conservation program. At the close of the presentation, Ms. Joe distributed a canvas bag, water bottle, rain gauges and indoor and outdoor water conservation kits to the Board. Commissioner Henschel suggested automatic faucets might be a possible future conservation item. He asked for information on how many households were taking advantage of water conservation promotions and if this information could be provided by member jurisdiction area. Mr. Koellermeier said Tigard was contemplating the development of a quarterly newsletter that would be direct mailed to all Tigard Water Service Area customers. This would ensure all customers received the same information at the same time. He added the current conservation focus has been on youth, but this may shift to adults. Commissioner Henschel suggested the children's programs be maintained while outreach to adults was expanded. He mentioned the Tigard Water District's upcoming water conservation fair. He said a date has been set in early June and the Alberta Rider Elementary School has been reserved for the event. Commissioner Henschel advocated for attendance at events that afforded face-to-face interactions with local residents. He said water conservation was a priority for the Tigard Water District Commissioners and they were willing to assist with conservation in any way they could. 6. 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 December 10, 2008 meeting. Page 8 Item 5.C.(1) & (2_) Asset Ownership/Water_Rates/Revenues — Moneys/Revenues ■ Mr. Koellermeier explained there was a water fund and capital improvement fund. He said he wanted to verify with Tigard's finance department, but he thought reserves, in excess of operating costs, were transferred annually to the capital fund. Some monies, like those from the sale of real property, are deposited directly into the capital fund. Mr. Koellermeier said he may need to amend how the agreement's financial section is structured based on advice from bond counsel. Pape 8, Item 5.C.(4) Asset_Ownership/Water Rates/Revenues — Moneys/Revenues Intergovernmental Water Board Minutes January 14,2009 2 • Commissioner Carroll referred to Commissioner Scheiderich's notes, which said this section was obsolete, because Tigard imposes system development charges (SDCs) on all properties served by the system. ■ Mr. Koellermeier proposed language saying the City of Tigard maintains a SDC rate schedule and applies it universally. Commissioner Carroll noted Tigard would rewrite this section accordingly. ■ Commissioner Henschel proposed the IWB review and approve changes in Tigard's SDC rates. ■ Commissioner Carroll clarified the IWB could make recommendations to Tigard. ■ Mr. Koellermeier said the process to change rates would be an SDC study (financial analysis) and the IWB can choose whether to adopt the study. Page 8, Item 5.D.M (b)Asset Ownership/Water Rates/Revenues —Capital Improvements • The Board determined the term "governing bodies" referred to the City Councils of the three member jurisdictions and the Tigard Water District Board. ■ Mr. Koellermeier asked for some latitude regarding the language in this section, noting that cities are required to publish an annual master plan of projects ("capital improvement program"). ■ Commissioner Carroll confirmed Tigard should "clean up" the language in this section. • Commissioner Henschel asked for clarification on whether this section referred to capital improvements or supply source issues. He pointed out Commissioner Scheiderich had made a similar note. ■ Mr. Koel[ermeier said the agreement was designed to deal with the sources that were in existence when the agreement was written in 1994. He suggested Commissioner Scheiderich's notes were trying to address the approval process with regard to the development of new sources. Mr. Koellermeier referred to the recent water partnership with Lake Oswego. He said because bonding and liability were Tigard's responsibility, Tigard was signatory to the agreement. ■ The board discussed ownership issues related to projects constructed after 1994. With regard to the Lake Oswego water partnership, Mr. Koellermeier said Tigard would use the money generated by all the ratepayers to build the infrastructure and, in return, would be obligated to provide the IWB members with water. The infrastructure would be owned by Tigard and Lake Oswego. • The Board then discussed the newly constructed Reservoir No. 2. Mr. Koellermeier said, under the existing agreement, the reservoir is treated as a system asset, and if one of the IWB partners withdrew from the partnership, they would be compensated for their investment. • Mr. Koellermeier noted the Lake Oswego water partnership is not structured in this manner. Since all debt risk and liability is assumed by Tigard, infrastructure improvements will not become system assets. Commissioner Carroll confirmed this meant if Durham withdrew from the lWB 10 years from now, it would not be compensated for its share of the cost to build infrastructure associated with the Lake Oswego water partnership. • Commissioner Henschel questioned what would happen once the bonds for the Lake Oswego water partnership were paid off. ■ Mr. Koellermeier added the Lake Oswego water partnership was not subject to the rules and regulations of the IGA. ■ Commissioner Winn suggested the Board was getting too detailed in their examination of the financial aspects of the agreement. Intergovernmental Water Board Minutes January 14,2009 3 • Commissioner Buehner said bond counsel may also want to "tweak" some of the language so that the lenders will be willing to buy the bonds. • Commissioner Henschel said if the group enters into a common agreement, in perpetuity, many of the issues being discussed will be irrelevant. • Mr. Koellermeier rephrased the issue as one of how assets would be valued in the event one of the member jurisdictions wanted to withdraw from the IWB. He referred to an assignment he was given at the IWB's last meeting to investigate the methodology used in 1994 System Assets and Liabilities Report. ■ Commissioner Henschel added the issue was not only the value of assets, but also who owned them. • Mr. Koellermeier said a process whereby each member jurisdiction had to review the water capital improvement program was cumbersome. He proposed the IWB consider annual capital improvement program updates, not member jurisdictions. The Board concurred. Page 9, Item 5.D.(4) Asset Ownership/Water Rates/Revenues —Capital lmprovements ■ Commissioner Henschel proposed "depreciated value" be replaced with "flair market value." It was noted this was discussed previously under another section of the agreement. The Board tabled further review of the intergovernmental agreement to its next meeting. 8. Informational Items: None 9. Non-Agenda Items: Commissioner Buehner reported she had been appointed as Tigard's representative to the IWB for the next two years. Councilor Sherwood will serve as Tigard's alternate. Mr. Koellermeier said it would soon be time to make some decisions regarding Joint Water Commission membership and participation in dam project. He may bring a draft letter to the board at their next meeting and asked if the Board had any concerns about cutting ties with this group/project, Mr. Koellermeier's letter will identify any monies that may be due as a result of a withdrawal. 10. Future Agenda Items Future agenda items were not discussed. Schedule Date Item February 11, 2009 Review Credit-for-Leak, Water Meter, and Non-Payment of Water Bill Policies. February 11, 2009 Discussion on Rewriting/Revising 1993 Intergovernmental Agreements. March 11, 2009 Consider Making a Recommendation on the Credit-far-Leak, Water Meter, and Non-Payment of Water Bill Policies. March 11, 2009 Review and Make a Recommendation on the Proposed Water Division Budget. March 11, 2009 Consider the Proposed Capital improvement Program (Community Investment Program). To Be Announced Additional Tenancy in Common Agreements for Properties within the Tigard Water Service Area. To Be Announced Review the Billing Insert Policy. Intergovernmental Water Board Minutes January 14,2009 4 11. Next Meeting: February 11, 2009, 5:30 p.m. Tigard Public Works Building, 8777 SW Burnham Street, Tigard, Oregon 12.Adjournment At 7:06 p.m. Commissioner Henschel 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 and Winn r voting yes. lWB Chair _ Greer A. Gaston, IWB Recorder Date: /1J CcJLCk-, / L1 Intergovernmental Water Board Minutes January 14, 2009 5