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05/13/2009 - Minutes Intergovernmental Water Board (IWB) Meeting Minutes May 13, 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 Julie Russell 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 IWB Recorder Greer Gaston 1. Call to Order, Roll Call and Introductions Commissioner Carroll called the meeting to order at 5:35 p.m. 2. Approval of Minutes—April 8, 2009 Commissioner Buehner motioned to approve the April 8, 2009 minutes; Commissioner Winn seconded the motion. The minutes were approved by unanimous vote of the Commissioners present, with Commissioners Buehner, Carroll, Russell and Winn voting yes. 3. Public Comments: None 4. Water Supply Update Mr. Goodrich reported: ■ Current average water usage is between 4.4 to 4.6 million gallons per day. Tigard expects and is prepared for increased water demand given the prediction for rising temperatures. 288.7 million gallons of water are stored in aquifer storage and recovery well 2. Native groundwater is being pumped out of aquifer storage and recovery well 1. ■ in terms of supply from the Portland Water Bureau, snow pack has been average (90 to 95 percent of normal). Gradually warming temperatures are predicted, meaning the snow pack should melt slowly and issues such with turbidity will be avoided. This summer's supply from the Portland Water Bureau looks good. I ntergovem mental water Board Minutes May 13,2009 1 5. Consider Making a Recommendation to the City of Tigard on the Utility Services Delinquent Account Policy Mr. Koellermeier said the Board had worked on this policy over the past two meetings. He advised the door hanger would be around $35 and would be placed in the City of Tigard's fee schedule effective July 1, 2009. Commissioner Buehner made a motion to adopt the delinquent account fee policy; Commissioner Winn seconded the motion. Commissioner Carroll confirmed the only significant change to the policy was that a water customer with a delinquent account would be charged a $35 fee to cover the cost of letter and door hanger notices. Mr. Koellermeier advised fees such as this one are reviewed regularly to be sure the City of Tigard is recouping its cost. The Commissioners suggested the City of Tigard notify the public about the policy change. The Board discussed having the City send a press release to local papers and include the information in the new water newsletter. Commissioner Carroll restated the motion to recommend passage of the Single Family Dwelling and Metered Business Utility Services Delinquent Account Policy. The motion was approved by unanimous vote of the Commissioners present, with Commissioners Buehner, Carroll, Russell and Winn voting yes. Note: The Board considered Items 6 and item 7 together. 6. Consider Making a Recommendation on the City of Tigard's Proposed Water Division Budget 7. Consider Making a Recommendation on the City of Tigard's Proposed Water Capital Improvement Program Mr. Koellermeier summarized the documents related to the FY '09-10 budget included in the Board's packet. ■ Entire Public Works Department proposed FY '09-10 budget is approximately $14.6 million. ■ The Water Division portion of the proposed budget is $6.6 million. This number includes capital projects and the cost to purchase water (approximately$3 million). ■ Significant FY '09-'10 goals and objectives from page 138 were summarized. ■ The per capita numbers show water usage is decreasing (page 139). Revenues are down because the City is selling less water. The Board discussed possible reasons for this trend. ■ Commissioner Russell inquired about unaccounted water; this is water that the City purchases, but is "lost," or not sold to customers. Meter inaccuracies, fire use, reservoir cleaning, and leaks result in unaccounted water. Tigard's numbers compare favorably with other communities. ■ Rate setting methodology was discussed. A commodity-based rate structure incorporates operational costs (like buying, producing, delivering water) into water rates. Intergovernmental Water Board Minutes May 13,2009 2 • The proposed FY '09-10 water fund is down 12.4 percent when compared to last year. ■ The Commissioners questioned some of the percentage changes on page 141, including salaries and risk management. ■ To ensure water customers receive consistent information, the proposed FY '09- '10 budget includes the cost of three issues of a water newsletter. The newsletter would be mailed with water bills. The Board pointed out customers are on a two- month billing cycle, so they would not receive the newsletter at the same time. ■ The Board discussed enterprise funds and the fact that the budget must be self- supporting when selling a commodity (water). ■ The Board briefly discussed how Tigard allocates citywide costs for human resources, fleet, City management, administration, etc. • Significant FY '09-'10 capital improvements were summarized. These include: - $4.6 million for 550-zone improvements to the pump station - $1.2 million for the Lake Oswego water - $1 million for Sherwood partnership Commissioner Carroll motioned to approve the FY '09-'10 budget; Commissioner Buehner seconded the motion. Commissioner Russell expressed concern over approving the budget given the pending union negotiations. The Commissioners expressed concern over the budget presentation and said that changing methodologies made oversight difficult. Board consensus was not to make any recommendation regarding the proposed FY '09-'10 Water Division budget and Capital Improvement Program. A vote on the motion was not taken. 8. 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 April 8, 2009 meeting. The Board tabled further review of the intergovernmental agreement to its next meeting. 9. Informational Items: None 10. Non-Agenda Items: None 11. Future Agenda Items Future agenda items were not discussed. 12. Next Meeting: June 10, 2009, 5:30 p.m. Tigard Public Works Building, 8777 SW Burnham Street, Tigard, Oregon Intergovernmental Water Baard Minutes May 13,2008 3 13.Adjournment At 6:49 p.m. Commissioner Russell motioned to adjourn the meeting; Commissioner Winn seconded the motion. The meeting was adjourned by unanimous vote of the Commissioners present, with Commissioners Buehner, Carroll, Russell and Winn voting yes. Can L ; � IWB Chair reer A. Gaston, IWB Recorder Date: Intergovernmental Water Board Minutes May 13,2009 4