01/13/2010 - Minutes Intergovernmental Water Board (IWB)
Meeting Minutes
January 13, 2010
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
Bill Schelderich Member At-Large
Members Absent. None
Staff Present. Public Works Director Dennis Koellermeier
Utility Division Manager John Goodrich
lWB Recorder Kathy Mollusky
1. Call to Order, Roll Call and Introductions
Commissioner Carroll called the meeting to order at 5:27 p.m.
2. Approval of Minutes —December 9, 2009
Commissioner Buehner motioned to approve the December 9, 2009 minutes; Commissioner
Winn seconded the motion with changes as noted. The minutes were approved, as amended,
by unanimous vote of the Commissioners present, with Commissioners Buehner, Carroll,
Henschel, Scheiderich and Winn voting yes.
3. Public Comments None
4. Member-at-Large Position Candidates
Paul Aronson, Jill Rosenberg, Michael Stone, and Gary Strealy each had five minutes to
address the board as to why they are interested in the member-at-large position and ask any
questions of the current Board members.
Steve Huynh, another candidate, was not in attendance.
5. Water Supply Update
• Mr. Goodrich reported that water demand is currently 4 million gallons per day (mgd).
Aquifer storage and Recovery (ASR) 2 injection is at 1.5 mgd. The injection is ending
this week because we have reached capacity, 160 million gallons (mg). Tigard has a
total of 260 mg of water in storage, or 107 days supply at the current rate of
consumption, at ASR 2.
• The City is switching over to ASR 1 which has been operating as a native groundwater
well for the last year and a half. Utilizing native groundwater is cheaper than purchasing
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water. It does not have to be pumped in and out. The target goal for ASR 1 is 100 mg.
Eight hundred gpm will be injected into ASR 1 which translates to around one mgd.
• The native groundwater has been tested, there are no health hazards. There is a change
in hardness noticed by citizens closest to the well.
• There are three wells in operation. One that stores native groundwater and two ASR
wells. ASR 3 (the fourth well)will be designed starting in July.
• Currently, the ASR wells are not a primary water source. The ASRs are designed to
eventually be used as a primary source of water for us, not just a peak use or
emergency supply. When operational with Lake Oswego, we will not have peaking costs
like those that we have now. Tigard will be an owner receiving water at operation costs.
• No requirement for fire suppression in Oregon. OAR states must have certain amount of
storage capacity. The City of Tigard (Tigard) is storage rich. We currently have two to
three days of storage above ground, not counting ASR.
• The 550' pump station is the main pump station that moves water from the 10-million
water reservoir on Bull Mountain Road to higher elevations. It pumps water to two
different elevations; it will be half of our water supply. It will cost $4.8 million to build. The
money is coming from an American Recovery and Reinvestment Act (ARRA) grant we
won. Half the grant is "forgivable loan" money, half of it is a low interest loan that is
subsidized down to I% or so. The money budgeted to use on this project is now going to
pay off operating the Lake Oswego project for one year. Very few municipalities were
able to tap into this fund money.
6. Motion to Withdrawal from the Joint Water Commission
Mr. Koellermeier stated the process of withdrawing from the Joint Water Commission (JWC) is
concluded. A requirement of being a member of the JWC is investing in the Haag Lake project,
so we withdrew. The previous $134,000 JWC dues paid out of water capital improvement funds
for JWC real estate holdings will go back into the fund.
Commissioner Buehner moved that the Board recommend approving Resolution 10- XX
withdrawing the City of Tigard from the Joint Water Commission, Commissioner
Henschel second the motion. The motion was approved by unanimous vote of the
Commissioners present, with Commissioners Buehner, Carroll, Henschel, Scheiderich
and Winn voting yes.
7. Informational Items
a. Update from Commissioner Buehner on Lake Oswego/City of Tigard Oversight
Committee activities.
• Commissioner Buehner reported on the joint meeting, referring to the PowerPoint
presentation and oversight committee report handouts included in meeting minute files,
stating a firm was hired to run the project. The Values & Principles handout may need to
be updated since the relationship has changed. Commissioner Buehner would like to be
informed of any changes needed. The draft environmental process will come back to
committee for finalization.
• Public outreach information needs to get out in front of misinformation campaign. For
instance, a public health expert is needed to talk about the chemistry involved. Some
groups are not interested in facts. Some groups get upset about ancillary issues like less
water for fish. Experts need to be available to address those issues.
• Mr. Koellermeier is concerned decisions are made based on technical experts and then
a citizen group creates a political issue to stop progress. The schedule is rather
aggressive; we cannot allow public misinformation to make us miss the two-year
deadline. The cities are expecting legal challenges. Money is budgeted in the capital
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budget for the Lake Oswego partnership. The Waterwatch lawsuit, stating we cannot
take any additional water out of the river, has been going on for about two years.
Southfork Water Board is arguing constitutional issues. Tigard joined with Lake Oswego
and North Clackamas Water Commission's legal firm, Bateman Seidel. The lawsuit
hearings should occur in March. State agencies are also involved in our defense.
b. Copy of the letter from the Portland Water Bureau
• A copy of the letter received from the Portland Water Bureau (PWB) regarding the
November 28, 2009 Boil Water Incident is enclosed in the packet. Mr. Koellermeier and
Mr. Goodrich wrote a good letter. Mr. Koellermeier is in contact with the PWB
Administrator.
• Tigard is working on the IWB contact information procedure, the protocol of who needs
what information when. Tigard will complete the communication plan in one month.
c. Tigard Water District Board Voting Requirements
Commissioner Henschel reported he would get back to the Board next month.
8. Non-Agenda Items
• Since Commissioner Scheiderich is resigning, the IWB needs to appoint a new
representative to the West Bull Mountain Technical Advisory Committee, who will need
to attend the next meeting on February 11.
Commissioner Buehner nominated Commissioner Winn to be the IWB
representative to the West Bull Mountain Technical Advisory Committee;
Commissioner Carroll seconded. The motion passed by unanimous vote of the
Commissioners present, with Commissioners Buehner, Carroll, Scheiderich and
Winn voting yes. Commissioner Henschel abstained.
• Mr. Goodrich is working on modifications to rights in the Groundwater Rights book. The
water rights are still in Tigard Water District's (TWD) name. An affidavit of consent is
required from TWD. Water rights were not discussed in the 1994 agreement.
• How would the IWB like to approach water right issues, as a system asset? Whose
name should the assets be held in? Mr. Goodrich has until Feb 5th to get consent. He is
going to ask Oregon Water Resources Department(OWRD)for an extension of time.
The Board considered adding discussion about water rights and water right issues in the
new ]GA.
• Groundwater rights are generally associated with each individual well. The City is trying
to change diversion points to utilize all the water rights in any well in the system. Instead
of being able to only pull 400 gallons per minute (gpm)from ASR 1, and 600 gpm from
ASR 2, Tigard wants to be able to pull 800 gpm at ASR 2.
• The City is trying to modify the two wells located at Canterbury. The property was put
into joint tenancy last year as part of the sale agreement. Water rights do not
automatically transfer with ownership, it is a different process. Staff could have initiated
the change when the property deed changed to a tenancy-in-common. The question is,
can water rights be in a tenancy-in-common? Staff suggests the water rights be put in
the City of Tigard's name and have the IGA state that it is a system asset.
Commissioner Carroll feels this would be a benefit to all members as a tenancy-in-
common. Commissioner Winn wants water rights to go to Tigard, rather than a tenancy-
in-common agreement.
• The second well, ASR 2, is located on 119th Avenue (private drive). This property was
annexed into Tigard; however, the property is still in TWD's name. This property is on
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the list for a tenancy-in-common agreement. One property of the tenancy-in-common
agreement is a claim of beneficial use which means if water rights are not used for five
years, they are lost. Mr. Goodrich just went through the process of securing all the water
rights through the claim of beneficial use, having to prove the City took water.
The Board does not want this issue to hold up the agreement; it will take time to
complete. Commissioner Scheiderich will put a placeholder in for now.
9. Discussion of Draft 1993 Intergovernmental Agreements between Durham and the
City of Tigard, King City and the City of Tigard, and the Tigard Water District and the City
of Tigard —Commissioner Scheiderich
The Board wanted to review the changes from last month prior to continuing with the agreement.
Page 3, Paragraph 3 —The member at-large must reside in the water service area. A water
service area map will be attached to the agreement. Party members appoint the member at-
large.
Middle of paragraph —the IWB acts on behalf of the governing body of that Party. When voting
on any issue before the IWB, if they vote affirmative, it is presumed they will be
recommending it to their government body; they are not binding their government body.
End of paragraph— If a member has three consecutive unexcused absences from the 1WB
meetings, the IWB may declare a position vacant and shall notify the Party of the vacancy to
fill the position. The Party members shall appoint a member at-large for the remainder of
the existing term of that position when the position becomes or is declared vacant. It was
suggested that a separate line is created for Party members and the member at-large
position.
Page 4, Paragraph 5B—States more specifically what Tigard shall provide for the IWB
meetings.
Page 4, Paragraph 5C -Tigard shall hold at least one public meeting with the councils and the
governing bodies of the served Parties on matters relating to the water supply system.
Page 4, Paragraph 6A- IWB members present and voting may advise the Tigard City Council.
Page 4, Paragraph 6B(1) _The IWB decision shall be final and binding when Tigard proposes to
serve to another reseller. Last time it was worded that IWB could bind Tigard, that was not
the intent.
Page 4, Paragraph 6B(2) -The lWB decision shall be final and binding when Tigard proposes to
issue revenue bonds to finance capital improvements outside the service area
Page 5, Paragraph 6B(4)-The valuation of a Party's ownership shares shall be recalculated
from time to time and upon termination.
Page 5, Paragraph 7A- Each party owns equitable, undivided shares as per Section 7B. The
Parties share the Lake Oswego project within the service area as shown on Exhibit A.
Last sentence -The Party's shares are pledged to the repayment of any debt issued to finance
further capital improvements. After the bonds are paid off, the assets revert to the TWSA.
Mr. Koellermeier is not sure how to resolve the Lake Oswego project issue. The assets become
part of Tigard's share of the system assets. Commissioner Carroll stated that since the Parties
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are paying for the Lake Oswego project, the Parties want ownership of the project. Mr.
Koellermeier stated that Tigard owns the assets. It is listed as if we are purchasing real estate,
that there is a deed out there. In year 21 of the Lake Oswego-Tigard agreement, Tigard will
then be a partner. Commissioner Buehner suggested another section should be created for
other assets (i.e., Lake Oswego and Willamette)for when the bonds are retired and these
capital improvements become system assets. This is a new piece to the agreement; in the 1994
agreement, everything was paid for. Mr. Koellermeier needs to make sure the agreements work
together.
Page 6, Paragraph 7D - No change. Commissioner Winn would like to take the paragraph out.
All money goes back to water capital improvement fund.
Page 6, Paragraph 7E—Commissioner Scheiderich shall put General Accounting Standards
Board before GASB. Tigard creates and maintains a list of all the assets. Certain things
have to be confidential due to sabotage concerns. Also, all customer personal information is
confidential.
Page 6, Paragraph 7F—The current agreement is 1%; the Parties have not agreed to 2%.
Tigard shall disperse the amount to a Party after the audit, at least once per year.
Page 6, Paragraph 7G - Clarified the space shall be available to any Party for a meeting,
whether or not it is related to the water system.
Page 6, Paragraph 8A—The Parties will use the state law to divide assets when a city takes
territory out of the district. If the Parties do not agree, it will go to court. The provisions for
assumption of debt for terminating party will be added. The terminating Party may pay off
the debt either in a lump sum at present value or pay every year. When a Party terminates,
that is the end of their claim to revenues. Revenues are prorated up to time of termination,
this is referenced in Paragraph 7F.
Page 7, Paragraph 8C- Instead of dividing up assets, a terminating Party may offer to convey
its ownership share of system assets to Tigard and may waive its rights to a division of
assets.
Page 7, Paragraph 8D -Tigard has the first right of refusal to purchase a Party's share of
system assets on that Party's termination. Tigard already has the right of first refusal on this
Public Works Building.
Page 7, Paragraph 9A—Tigard shall operate and maintain the water system as an enterprise
fund.
Page 7, Paragraph 9B -Tigard makes all the water supply system supply records available to
any Party for inspection and copying at reasonable notice.
Page 7, Paragraph 9C -Tigard presents the proposed budget to the 1WB for recommendation
prior to Tigard's adoption of the budget. Tigard shall provide a copy of the year-end
financial audit to any Party upon that Party's request.
Page 7, Paragraph 10 - No change. Annexation is subject to Metro Code and state land use
law. In case of boundary changes, the Parties agree to execute all documents in a timely
manner.
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Island annexation is consistent with Metro law; IWB cannot say we will not serve the area. An
annexation will change the ownership percentage. Tigard will serve an area if it is annexed.
Page 8, Paragraphs 12 & 13 - only housekeeping changes.
9. Future Agenda Items
Future agenda items were not discussed.
10. Next Meeting:
■ February 10, 2010 at 5:30 p.m.
Tigard Public Works Building, 8777 SW Burnham Street, Tigard, Oregon
10. Adjournment
At 7:45 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, Scheiderich and Winn voting yes.
IWB Chair Kathy Mallusky, IWB Recorder
Date: D- \.n- 1 l�
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