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07/08/2009 - Minutes Intergovernmental Water Board (IWB) Meeting Minutes July 8, 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 Representing the Tigard Water District Dick Winn Representing the City of King City Members Absent: Bill Scheiderich Member At-Large Staff Present: Assistant Public Works Director Brian Rager Utility Division Manager John Goodrich IWB Recorder Greer Gaston Executive Assistant Kathy Mollusky 1. Call to Order, Roll Call and Introductions Commissioner Carroll called the meeting to order at 5:31 p.m. 2. Approval of Minutes—May 13, 2009 Commissioner Buehner motioned to approve the May 13, 2009 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: • Current average water usage is 7.55 million gallons per day. This is about half-a-million gallons less per day than our 10-year average, the same as last year. • ASR 2 has pumped 39 million gallons for the season. There are 257 million gallons in storage. We currently have a 119 day supply. There was a drop in water sold with the economic downturn. Currently we are using two wells for normal supply. We use ASR 2 for peak times; this allows us to keep water stored in ASR 2 for emergencies. • We purchased half-a-million gallons per day for a two-month period from Portland at 60% of wholesale cost. This makes up the supply we are not getting from the Joint Water Commission (JWC). It is a summer interruptible supply. Intergovernmental Water Board Minutes July 8,2009 1 • Consumer Confidence Report (CCR) 2009 water quality report. John recognized the letter from Commissioner Henschel. TWD's service area was referred to as unincorporated Bull Mountain. This will be properly identified in future correspondence. Commissioner Buehner inquired as to the estimated timeline for the ASR 3 well. Mr. Rager replied that the well improvement design will begin in FY 1011 and construction will be finished in FY 11-12. The well has been drilled, capped and tested for capacity. The other reservoir at the 550' level on the north side of Bull Mountain is five years or more from design. 6. Discussion on Having Commissioner Scheiderich Prepare an Initial Draft of the 1993 IGA Rewrite Mr. Rager summarized a memo from Dennis Koellermeier dated July 8, 2009 discussing Commissioner Scheiderich preparing a first draft of the new IGA. Commissioner Carroll expressed his support for this approach and spoke about Commissioner Scheiderich's competence and knowledge of the material. Commissioner Scheiderich understands IWB's goals. It will save time and money with him preparing the draft. Commissioner Buehner spoke about Commissioner Scheiderich's experience in writing 1GAs and complying with state law. Commissioner Winn supports. Commissioner Scheiderich has been a participant in the IWB rewrite. Each member's individual attorney will still have to review it. Commissioner Winn motioned to authorize the City of Durham to furnish the IWB with limited legal services in the form of Commissioner Scheiderich preparing an initial draft IGA. Commissioner Buehner second. The motion was approved by unanimous vote of the Commissioners present, with Commissioners Buehner, Carroll, and Winn voting yes. Commissioner Henschel abstained. Commissioner Buehner motioned to authorize the City of Tigard, acting on behalf of the IWB, to pay for these legal services when invoiced by the City of Durham at a price not to exceed $2,000. Commissioner Winn second. The motion was approved by unanimous vote of the Commissioners present, with Commissioners Buehner, Carroll and Winn voting yes. Commissioner Henschel abstained. 5. 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 (TWD) and the City of Tigard This item was continued from the Board's April 8, 2009 meeting. Page 12, Item 7.C. Services Provided by Tigard • Commissioner Scheiderich and TWD asked Commissioner Carroll if the right of condemnation can be given away from one district to another. The condemnation would have to come from each individual city for their city. • Commissioner Buehner states the intent is for each city to contractually agree to perform condemnation, if required, for the operation of the water system. Commissioner Scheiderich has already written proposed language. Intergovernmental Water Board Minutes July 8,2009 2 Page 13, Item 7.E. • This item is in the TWD agreement only. TWD would like to eliminate the line: "To the extent that Tigard charges other governmental entities for the use of the building, the District agrees to compensate Tigard a reasonable amount for use of the building." They would like the new sentence to read: "Tigard agrees to allow the District use of the Richard Brown Auditorium at no cost to the district and such consent for use of space shall not be withheld if space is available and the District provides at least 24-hour notice." Commissioner Carroll suggested making it a generic statement for all agreements that states consent to use the room will not be unreasonably withheld to any signees with reasonable notice (City standard of 5 days notice), if room is available. Commissioner Henschel concurs. Item 7.F • This item is in the TWD agreement only. Delete current Item F. TWD wants new Item F to state: "Tigard will respond within 5 business days to requests for public and financial records relating to services provided and expenditures made to and on behalf of TWD at no charge to TWD." COT holds the records for TWD customers. • The release of records depends on what records are requested. The City of Tigard has record request procedures in place already. • Commissioner Carroll defers to Commissioner Scheiderich. Commissioner Scheiderich should read F out of TWD district and make it generic to all agreements. • Commissioner Buehner inquired about annual reports given to each district. All districts receive a I% check once per year from the City of Tigard based on water usage, there is no report with it. • Mr. Goodrich questioned TWD having access to billing records from a privacy standpoint. All customers are treated the same. Jurisdictions are required to guard this information by law. • Commissioner Buehner asked if TWD is asking generically how many gallons are sold to their district or if by individual customer. Sold to individual customer is a violation of HIPPA laws. • TWD only wants what can be delivered to them legally. For instance, they might need a mailing list of customers. Tigard provided this list to them recently. The list has address, not names, attached to it. Page 12, Item 8. Rules and Regulations • Mr. Goodrich proposed deleting Item 8. It was carried over from TWD. Tigard adopted into the Tigard Municipal Code (TMC). • Commissioner Buehner agreed with deleting section. Add reference that states the TMC governs the rules and regulations. • Commissioner's Henschel and Carroll suggested keeping: "The IWB is empowered to make a continuing review of any and all rules and regulations regarding the water system which may be adopted by the Council and periodically to make recommendations to the Council for additions or amendments of such rules and regulations." If this language is in the TMC, it is not needed in this [GA. Commissioner Buehner added: "Parties agree to comply with rules and regulations as adopted by Council." Commissioner Scheiderich should read and sort through Item B.B. Intergovernmental Water Board Minutes July 8,2009 3 Page 13, Item 9. Extension of Service. • Commissioner Carroll proposed leaving exactly as is and making this the fast issue discussed after agreeing to everything else so as to not derail other aspects of agreement. • Commissioner Henschel would like to see Item 9 A & B enforced. Commissioner Carroll does not think it is germane to Durham. Mr. Rager states that the land use process drives Tigard Water Service Area (TWSA) to provide water. Commissioner Scheiderich can rewrite and make it a generic statement. Item 9.0 • Replace "Residents located within the District shall not be responsible..." with "TWSA shall not be responsible for any expenses..." • Commissioner Buehner wants Tualatin Valley Water District(TVWD) boundary adjustment included in agreement. There is an area TVWD does not serve even though it is in TVWD area. TWSA is providing water. Page 13, Item 10. Ema[oyee Benefits/Personnel. • Commissioner Buehner proposed deleting. It is irrelevant. Commissioner Carroll concurred. Page 19. Item 11. Annual Meeting. • Commissioner Winn questioned if an annual meeting should be held. Delete the paragraph, it is not necessary. • Commissioner Carroll acknowledged the difficulty in getting this scheduled. The governing bodies could schedule the meeting and those able to attend shall attend. • Commissioner Buehner states having an annual meeting with COT City Council and the IWB is the best we could ask for. • Commissioner Henschel suggested it does not have to be one meeting. COT could go to TWD, then to Durham, etc. Page 14 Item 12. Attorneys Fees. Item 13. Applicable Law. Item 15. Amendments. Item 16. Effective Date. • Commissioner Buehner states these are standard in agreements. They should be left as is. Done. 7. Discussion on the Frequency of Ownership Interest Calculations and Deed Execution as Specified in the Tenancy in Common Agreements Mr. Rager reported there is a provision to recalculate percentage ownership every two years in the Tenancy In Common (TIC) agreements. In the IGA, if one member wants to pull out of the agreement with Tigard it needs to be redone. In light of the IGA being rewritten and the potential of different methodology, the City is not going to recalculate percentage ownership at this time. Technically, this puts the COT in violation of the TIC agreements; however, COT's Intergovernmental Water Board Minutes July 8,2009 4 attorney is comfortable with this as long as the IWB Board concurs. Mr. Koellermeier is bringing alternate method of calculation to be discussed at next meeting. Commissioner Carroll suggested looking at total gallons sold and number of connections. Mr. Koellermeier is going to inform us of current methodology and other methods that might work. For instance, if we did (1) water sold only or (2)water sold and number of connections with water sold. IWB will be able to see where the slope falls and decide the fairest method to write into the new IGA. Tabled until next meeting. 8. Informational Items: Update from Commissioner Buehner on Lake Oswego/City of Tigard Oversight Committee activities. The Oversight Committee reviewed the status of the plan. COT wrote a $2 million check the third week of June for our buy-in to the Lake Oswego infrastructure. COT paid early so Lake Oswego is refiguring the interest owed. This will save a couple thousand dollars. The technical committee forwarded to Lake Oswego Council a recommendation to hire a consultant to act as project/construction manager. There will be city liaison and an (1)Assistant Director of engineering to work on the water side and supervise sewer project and (2) consultant who should be online in September to look at the plan. Update on water watch litigation. Settlement conference held in June. Administrative law judge (ALJ)from the state had not read all briefs and was not ready to handle settlement conference. Hopefully issues will be resolved with South Fork Water Board and they will withdraw their issues. This group will meet once per quarter until things really get going. 9. Non-Agenda Items: None 10. Future Agenda Items Future agenda items were not discussed. 11. Next Meeting: ■ August 12, 2009 at 5:30 p.m. Tigard Public Works Building, 8777 SW Burnham Street, Tigard, Oregon 12. Adjournment At 6:35 p.m. Commissioner Winn 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 Winn voting yes. IWB Chair Greer A. Gaston, IWB Recorder Date: 9- q_0? Intergovernmental Water Board Minutes July 8,2009 5