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09/08/2010 - Minutes Intergovernmental Water Board (IWB) Meeting Minutes September 8, 2010 Tigard Public Works Building 8777 SW Burnham Street Tigard, OR 97223 Members Present: Gretchen Buehner Representing the City of Tigard Ken Henschel Alternate Representing the Tigard Water District Dick Winn Representing the City of King City Mike Stone Member At-Large Members Absent. Keith Jehnke Representing the City of Durham Staff Present: Dennis Koellermeier Public Works Director John'Goodrich Utility Division Manager Kathy Mollusky Executive Assistant Visitors: Joe Healey Red Oak Consulting Paul Matthews Red Oak Consulting 1. Call to Order, Roll Call and Introductions Commissioner Winn called the meeting to order at 5:35 p.m. 2. Approval of Minutes —July 14, 2010 Commissioner Buehner motioned to approve the July 14, 2010 minutes. Commissioner Stone seconded the motion. The minutes were approved by majority vote of the Commissioners present, with Commissioners Buehner, Henschel, Stone, and Winn voting yes. 3. Public Comments: None 4. Credit for Leak Adjustment Mr. Goodrich asked for the WB's approval for a credit for leak adjustment submitted by Linda Masters for a leak that occurred at their home. Commissioner Buehner motioned to approve the Linda Masters credit as recommended by staff. Commissioner Henschel seconded. The credit for the water leak was approved by unanimous vote of the Commissioners present, with Commissioners Buehner, Henschel, Stone, and Winn voting yes. Intergovernmental Water Hoard Minutes September 8,2010 1 5. Tualatin Valley Water District Boundary Clarification Mr. Goodrich reported that last year the City went through the property withdrawal procedure for this area; however, one property was inadvertently omitted. The state requires the process be completed from the beginning with all of the effected properties included. This is a housekeeping issue; there are no service boundary changes. Tigard has been serving this area since the 1970s. 6. Water Supply Update • Mr. Goodrich reported having an average month of about 10 million gallons per day (mgd) of water usage. This is 0.67 mgd less than the historical low. Water use has been less than expected because of a very late, wet spring. It is up 0.3 mgd from last year. The complete supply from ASR 1 was utilized. There is about a 9-day supply left in ASR 1 and a 70-day supply in ASR 2. • The 10 million gallon reservoir is offline. Construction is continuing on the pump station. Excavating and shoring are being completed. JS Fowler is the contractor. 7. Consultant Presentation on Final Recommendations on the Water Rate Study and Water SDC Findings Mr. Paul Matthews and Mr. Joe Healy, Red Oak Consulting, gave a PowerPoint presentation, which is on record in the IWB file. • Mr. Matthews clarified the Tigard Water Service Area (TWSA) conservation program has been in existence at least 10 years. Due to the success of this program, there is not a lot of future conservation figured in. • Mr. Healy clarified a typical residential has a meter size of 518 x 314. • There is only one 12" meter in the TWSA, which may be in use for fire flow. The City would suggest an adjustment for them. • if larger meter users do not pay for their use, the charge would shift to other customers. Some customers would true up meter size and may not need as big a meter as they have. • In October 2010, there will be a 7% increase. On January 1, 2011, costs will increase 31%. • Typical residential user fees per month depend on the time of year. Average winter consumption is six units, which would be in Tier 1. Low minimum user will have a fixed rate charge of$31 plus the cost of water at thresholds based on meter size. • The large meter customers will see a higher percentage increase. They currently are not paying their fair share. Billing is currently based on how much it costs to bill a customer. It costs the City the same to bill a small meter as a large meter customer. That is not the true cost of the water used. A 30% increase equals $8/month or 20 cents/day. The percentage increase seems to be a lot; however the dollar amount is not that much. • If the increase was overestimated or we realize additional savings, these rates can be adjusted in the future by having either a smaller increase or no increase in the "out years". • The booster charge is used to recover the additional cost of pushing water to the higher elevations. This rate is not increasing. • For low-income customers, there is a third party, not-for-profit group that will allocate a check to the customer to help cover the water bill. • For TWSA purposes, System Development Charges (SDC)for existing sources (ASR, Wells, etc.) were allocated to existing customers. This shifts a big share of the Lake Oswego capacity expense to future growth. Tigard's current SDC charge is $2,366. Wilsonville's is around $7,200. West Linn's is $6,600. Happy Valley's is $6,500. Intergovernmental Water Board Minutes September 8,2010 2 • If SDC's are reduced to one meter size (i.e., 2" meters), someone still has to pay so it will be ratepayers. • Most of our customers have 518" by 314" meters. If someone needs a 4" connection, it will be a school, hospital, major hotel, some kind of industry. It will not be a standard customer like a restaurant. • An 8" meter ensures customers that water will be available for that development from here forward; it is a buy-in fee, a onetime fee. • Commissioner Buehner explained that developers are not paying what it costs, particularly for transportation. Cities cannot diminish service levels for water like they have for roads. Ratepayers have to pick up the cost. Commissioner Henschel made a motion that IWB recommend to Council to not phase in System Development Charges, but institute immediately. Commissioner Buehner seconded the motion. The motion was approved by unanimous vote of the Commissioners present, with Commissioners Buehner, Henschel, Stone, and Winn voting yes. 8. Informational Items a. Update from Commissioner Buehner on Lake Oswego/City of Tigard Oversight Committee Activities • Commissioner Buehner reported receiving a presentation on the new figures for the joint project. The figure they were working with was $200 million and now it is $230 million. • It was determined that almost none of current take Oswego plant will be able to be reused, which will reallocate a percentage of the cost. Lake Oswego's share will increase and Tigard's share will decrease. This will not raise our costs very much, if at all. We will stick with $118 million for our purposes here and will adjust rates later if needed. b. Update from Commissioner Winn on West Bull Mountain Technical Advisory Committee Activities • Commissioner Winn reported this will be talked about next month. c. Update from Mr. Goodrich regarding Tigard Municipal Code (TMC) 12 • Mr. Goodrich is presenting the updated TMC, practices and procedures to Council October 19 during the workshop session and will present the following month for adoption. The updated TMC, practices and procedures should be in place January 1, 2011. 9. Update from Mr. Koellermeier regarding the IWB Intergovernmental Agreement (IGA) • Mr. Koellermeier reported Tigard sent the marked up IWB IGA to the IWB. This will be discussed at the October 13 meeting, including the reasons behind the changes. • Council will discuss at the September 28 workshop. • Commissioner Winn would like IWB to go through, decide and make recommendations before Council gets the final draft. The seventh draft is what Tigard City Council will approve and he doubts much will be changed. • Commissioner Winn recognizes that °613", giving authority to the IWB to be final and binding on Tigard, was put in due to the IWB being in a hurry. This was not what the IWB had agreed to. He believes this agreement is good. He would like the [WB to join together and think about what is best for all the communities. The betterment of the Intergovernmental Water Board Minutes September 8,2010 3 cities depends on a financially and operationally sound water department. He would like the IWB to all show up when it is submitted to Council. 10. Non-Agenda Items None 11. Future Agenda Items • Future agenda items were not discussed. 12. Next Meeting: • October 13, 2010 at 5:30 p.m. Public Works Building, 8777 SW Burnham St, Tigard, Oregon 13. Adjournment At 8:00 p.m., Commissioner Buehner motioned to adjourn the meeting; Commissioner Henschel seconded the motion. The meeting was adjourned by unanimous vote of the Commissioners present, with Commissioners Buehner, Henschel, Stone, and Winn voting yes. �L Dick Winn, IWB Chair Kathy Mollusky, IWB Rerorder Date: I'D Date:_ 10 t L-i 7 U Intergovernmental Water Board Minutes September 8,2010 4