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05/12/2010 - Minutes Intergovernmental Water Board (IWB) Meeting Minutes May 12, 2010 Tigard Public Works Building 8777 SW Burnham Street Tigard, OR 97223 Members Present: Gretchen Buehner Representing the City of Tigard Keith Jehnke Representing the City of Durham Kinton Fowler Alternate Representing the Tigard Water District Dick Winn Representing the City of King City Mike Stone Member At-Large Members Absent: None Staff Present: Dennis Koellermeier Public Works Director John Goodrich Utility Division Manager Greer Gaston Executive Assistant Jennifer Joe Environmental Program Coordinator 1. Call to Order, Roll Call and Introductions Commissioner Winn called the meeting to order at 5:28 p.m. 2. Approval of Minutes --April 14, 2010 Commissioner Buehner motioned to approve the April 14, 2090 minutes. Commissioner Stone seconded the motion. The minutes were approved by majority vote of the Commissioners present, with Commissioners Buehner, Stone, and Winn voting yes. Commissioners Fowler and Jehnke abstained. 3. Public Comments: None 4. Update on Water Conservation Efforts Environmental Program Coordinator Jennifer Joe reported on conservation activities, for instance the reimbursement and outreach programs. She is on several committees promoting water conservation efforts. The 2009 Water Conservation Report was distributed to the Board. Mr. Goodrich noted that unaccounted for water is at four percent, well under the industry standard of ten to fifteen percent. The upgrading of meters throughout the water service area and replacement of outdated water lines in King City was discussed. Intergovernmental Water Board Minutes May 12,2010 1 5. Proposed City of Tigard Water Capital Improvement Plan (CIP) Budget The following documents were distributed to the Board: 1. Capital Improvement Plan —Water 2. Water Budget 3. Comparison of 2000 vs. 2011 Budget Mr. Koellermeier discussed the Capital Improvement Plan and the projects contained in the plan. The Tigard Budget Committee has approved the budget and the budget is on its way to the Council for final adoption. The Budget Committee needs to approve a technical adjustment related to the Sherwood Water Partnership on Monday. The adjustment means $1 million will be reallocated from this fiscal year budget to next year's fiscal year budget. Mr. Koellermeier relayed the highlights of the Comparison of 2000 vs. 2011 Budget document. He noted staffing had decreased while the number of customers increased. The materials and supplies have increased which means we are investing these dollars back into the system. The cost of water has remained stable with only a 4.34 percent average increase per year over that time period. Commissioner Winn expressed concern that the Board did not have sufficient time to review the Water Capital Improvement Plan. Mr. Koellermeier suggested the Commissioners send any comments to him. 6. Sherwood Water Partnership, Pipeline from Wilsonville Water Treatment Plant Mr. Koellermeier reported that there has been a change on the partnership agreement that is coming to the Board. Sherwood has already bid out this project and is under construction. The bids were very good in this financial climate and the project has seen substantial cost savings. Tualatin has decided not to participate in the project, which gives Tigard access to more water. Sherwood inquired if Tigard want to stay in at 10 million gallons per day (mgd) or buy up to 20 mgd capacity. The agreement is for 10 mgd: however, we will need 20 mgd. Tigard will commit to buy 20 mgd of capacity. Tigard is currently cash poor so we will buy it over time as we sell bonds. Sherwood believes the pipeline will cost around $8.8 million including easements, construction management, etc. The proposal for Tigard would be around $4.4 million to own half of the 40 mgd pipe capacity. Mr. Koellermeier recommends we go ahead with this. The pipe currently terminates at the pedestrian bridge in Tualatin Community Park. Mr. Koellermeier will have a legal written opinion with limits of law regarding the Tigard Charter Amendment going to the Willamette River. Commissioner Winn expressed concern over the requirement of taxpayers having to pay for this without a vote since it would entail taking water from the Willamette River. Commissioner Stone clarified that this 20 mgd Tigard portion is the most water that could be bought from this pipeline. Parallel lines could be installed if more water was required in the future. Aside from Commissioner Winn's legal concerns, the Board expressed general support for the project. Commissioner Stone stated it is inexpensive future planning and we could sell the water if it was not needed. Intergovernmental Water Board Minutes May 12,2010 2 Mr. Koellermeier will bring this back to the Board before bringing it before Council. It will be July or August before the legal opinion is done and agreements are refined. 7. Water Supply Update • Mr. Goodrich reported that water demand is currently 4 mgd. • There is 219 mg in ASR storage, which is 102 days of supply. This should be adequate for the peak period. ASR will be shut off at the end of May when we move from winter interruptible supply. • Tigard is purchasing .5 mg a day extra to get through July and August from the Portland Water Bureau. This is the maximum amount that can flow through the system. Tigard will pay the summer interruptible rate for all the water brought in as per the agreement, which is at 66 percent cost. • The Portland Water Bureau does not anticipate any water curtailment. • There is a temporary pump station being built on 125`h Avenue & Bull Mountain Road to help supply the 710-foot zone during the summer while work is being done on 1251x' Avenue. S. Informational Items Commissioner Buehner reported on the selection of Red Oak Consulting to conduct the Water Rate Study and Water System Development Charges Update. Council approved the contract last night. a. Update from Commissioner Buehner on Lake Oswego/City of Tigard Oversight Committee activities • A handout entitled Lake Oswego Water Treatment Plant Alternatives Study was distributed to the Board. Commissioner Buehner summarized the handout and different treatment options. The circles on the handout are transposed in the last column for alternatives 2.1 and 2.2. Membrane proposals (the "3" options)were removed from consideration. They take less oversight, but are more expensive. The treatment options range from $65 million to $121 million. Alternative 2.2 is close to the Wilsonville treatment plant. The Wilsonville treatment plant is the gold standard for this area. • The Joint Water Supply source water(Clackamas River) does not require the level of treatment Wilsonville did for the Willamette River. These treatment plant options are being considered for the future in case regulations change since more regulations are anticipated. If the treatment plant only treated the water to high rate sedimentation, it would meet drinking water standards. The questions providers have to ask are: o What is the level of service they want to provide to the customers? o What level quality of water do you want to deliver? o How certain do you want to be to meet future drinking water standards? • Mr. Koellermeier stated the process of picking treatment method will be concluded in June. Meetings are open to the public. A presentation of how this all came together will be made at the joint IWB and City Council meeting. • Citizens seem to be most concerned with taste and odor issues. Commissioner Fowler left the meeting at 6:45 p.m. Intergovernmental Water Board Minutes May 12,2010 3 b. Update from Commissioner Winn on West Bull Mountain Technical Advisory Committee Activities • Commissioner Winn reported the committee is undergoing revisions to accommodate several requests for change. c. Updated from Commissioner Henschel on the Citizen Sounding Board activities • Commissioner Henschel did not attend the meeting so there was no information reported. d. Water Treatment Plant Informational Tour— Mr. Goodrich will circulate dates and preferable times. It was suggested that they meet at the West End Building. 9. Non-Agenda Items Mr. Goodrich and Mr. Koellermeier are working on a public open house on June 24 at the West End Building 5:00 or 5:30. The invitation will be in the Consumer Confidence Report(CCR) which goes to all our customers and consumers. The purpose of this open house is to educate the public on all the work that citizens and the expert panel have done and which treatment options are going to be chosen. This is the first public hearing of the treatment plant decision process. Commissioner Buehner stated Ms. Newcomb, head of Citizens for Safe Water group, was at the Willamette River Water Coalition (WRWC) meeting, she raised concerns about the ozone and Granular Activated Carbon (GAC) treatment process. Mr. Goodrich stated Red Oak Consulting will be at the June 15 joint Tigard Council/IWB meeting giving a 30-minute overview of water rate SDC so we can bring everyone up to speed. 10. Future Agenda Items Future agenda items were not discussed. 11. Next Meeting: • June 15, 2010 at 6:30 p.m. Tigard City Hall, 13125 SW Hall Blvd, Tigard, Oregon 12. Adjournment At 7:02 p.m., Commissioner Buehner motioned to adjourn the meeting; Commissioner Stone seconded the motion. The meeting was adjourned by unanimous vote of the Commissioners present, with Commissioners Buehner, Jehnke, Stone and Winn voting yes. IWB Chair Kathy Mollusky, IWB Recorder Date: -1 - 1 - 14 Intergovernmental Water Board Minutes May 12,2010 4