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06/08/1994 - Packet Public +�+ .... :. ...AG 1 Cad to Corder: Approve Nay ��., ��94 � eet�ng�xunutes P1 .me ]emit com�aents t dive inutosj Iurxay � Lung T`�ru�'�at�r SuppXy�Upda Dine et s Repan` dater 1auot update Non Agenda Set Next Nieet� g:�gedcla Ad�a�rnzueat CITY OF TIGARD MEMORANDUM OREGON CITY OF TIGARD, OREGON TO: Intergovernme ntal Water Board Members FROM: Ed Wegner DATE: July 29 , 1994 SUBJECT: Reschedule of 8-13-94 IWB Meeting After speaking with Murray Smith and Associates and per my telephone conversation with Chairperson, Peggy Manning, we have decided to reschedule the regular business meeting of the IWB from August 13 , 1994 until August 17 , 1994 . The firm of Murray Smith and Associates needed some additional time to prepare their report and they will be in attendance at the August 17 , 1994 meeting to provide that information to the Board. If you have any questions , feel free to contact me at 639-4171, extension 396 . kathy\iwb\resched 13125 SW Hall Blvd„ Tigard, OR 97223 (503) 639-4171 TDD (503) 684-2772 INTERGOVIN NMENTAT, WATER BOARD Meeting Minutes May 11, 1994 Board Members Present: Chair Peggy Manning, Chair-Elect Bill Sheiderich, Lynda Jenkins, and George Morgan Staff Present: Pat Reilly, Ed Wegner, Wayne Lowry, Mike Miller, Kathy Kaatz 1. Call to order Chair Manning called the meeting of the Intergovernmental Water Board to order at 5:37 p.m. 2. Approval of Minutes Ed Wegner informed the Board that in their packet was a set of revised minutes from the April 27, 1994 meeting which included additional comments made by Paul Hunt that had previously been omitted im regards to the Chair-Elect issue. George Morgan motioned to approve the minutes which was seconded by Lynda Jenkins. o 3. visitors Comments Jack Polans, King City resident, discussed the importance of public input. At the time a bond issues comes up for vote, the public needs to be informed in order for that to be passed. Jack discussed the importance of the City of Tigard providing this information to the - public via the Library. All water information- files are kept with Ed Wegner in a centralized location. Pat Reilly stated that Ed Wegner would be the source to refer the public to in order to gain information regarding water issues. Pat Reilly also stated that the Library has a local information center where information is readily available, which enables the City to facilitate the public access to information. Jack Polans asked how we could consolidate this information? Pat Reilly stated that in regards to the Tigard Water District information, the Tigard Water District is a separate entity and that Board is responsible for distributing information on their own. George' Morgan stated that the Tigard Water District has a responsibility through the provisions of the Intergovernmental Agreement to provide access to records and minutes and make available to the public and all interested participants. George Morgan also stated that the primary reasons for continued meetings at this time, of the Tigard Water District Board is to meet their responsibilities in regards to long term water supply and a capital improvement program which will allow that water supply to contract to serve the interest of the water service area. Jack Polans questioned how the unincorporated area would get thi information? It was stated that they also could go to Ed Wegner this obtain this information. Lynda Jenkins asked Jack where he obtains his information? Jack stated that he, obtains his information from attending various Board meetings, and through the City of Tigard. It was stated by Lynda Jenkins that any members of the public can also contact Mr. Wegner, any of they other of various Board members, as well as the Library for information. Chair Manning thanked Jack Polans for his input. 4. Budget Discussion Ed Wegner stated that the packet of information that was provided to the Board members was a document called Water Budget Overview which is in outline form to highlight those areas of the budget that were determined to be of importance to the future programs of the Water Division. • 15.5 FTE's within the Water operation for next year. The other positions were allocated to the Finance, Account, Customer Billing side. This does not show a reduction in staffing. • Water Costs for next year with Lake Oswego and Portland. Currently have a water sampling program throughout the system. Will also be starting a pump maintenance program to rebuild one pump and motor per year for the next five year period. We will also be continuing the replacement of 2" galvanized lines with copper. Most of these lines are located in King City. George Morgan asked if these were being replaced as part of the overal' maintenance program? Ed Wegner stated that was the case. • Vehicle maintenance program-this year will continue with contracting-the--- work he -work out. It may be pulled in a later date into our fleet maintenance program, depending upon the ability to offset costs. • IWB expenses covers meeting costs as well as other necessities of the Board. • Pipeline replacement have been designated in three areas that need additional work. Rates of new meter installations has averaged five hundred. • Field equipment. One item to be purchased in the budget is a chipper. This piece of equipment reflects a cost savings due to the fact that the costs are being shared among three other divisions of Maintenance Services. • Pipeline extensions. These differ from the replacement in the fact that these are additional lines. • Site work for the reservoir South of Scholls Ferry Road is also included in this budget and the possible purchase of land for a pumping station in the area of Beef Bend. Both of these items are subj ect to change when the Murray Smith report is finalized. Ed Wegner also included in the packet a table addressing some questions that he received from Board members regarding clarification.. This table outlined specific funds, justification and dollar amounts being budgeted. T, pRWVERNNENTAL WATER BOARD MEETING NINDTEs - MAY 11, 1994 - PAGE 2 Chair Manning Questions: • Account 51-6340 Engineers - Plans for reservoir off Scholls, Pump station off Beef Bend Road, ongoing system growth plan review. Why General Fund not Capital Investments. Wayne Lowry stated that this has been discussed and would be placed under Capital Improvements under 51- 2170-701.000. • Janitorial supplies 51-6730 - recognize there might be a bulging of this account. Ed Wegner stated that this fund was left at the amount that the staff had requested. We will be consolidating with other City Departments to contract these services out. Lynda Jenkins questioned how many restrooms we have to deodorize? It was stated that were seven restrooms at the Water Building. This cost alone runs approximately $67.00/month which seems excessive. Yearly rag and coveralls costs were also discussed with Ed Wegner where it was determined that there was a duplication under the Safety Equipment account 51-6720. Chair Manning requested that this account be looked at. • Maintenance and repair of equipment 51-6200 - The City apparently owns 99 rolling stock vehicles and 45 pieces of various equipment and these costs are on a shared basis with these costs reflecting .the Water Division's share. • Safety Programs 51-6720 - A dollar amount of $8,000 was requested which also includes the purchase of a $5,000 shoring shield. • Lynda Jenkins questioned if there would be accurate history of these accounts made available. Ed Wegner stated that he has access to reports that show what has been expended in these account for the last year minus the last- three months. • Office supplies 51-6401 - $5,000 amount appears to be totally out of line.- Would like to see justification for this account next year, if not available this year. Wayne Lowry stated that this was one of the accounts that was scrutinized and was reduced from the previous budget year from $18,700. • Chair Manning stated that it was her understanding that the Intergovernmental Water Board appropriation was canceled and was placed into another account • Due and Subscriptions 51-6480 - In the additional information that was provided to the Board tonight those costs were broken down. It seems still quite high at $500/month. Perhaps this is an area that could be looked into to cut. Bill Sheiderich questioned how many employees were enrolled in the AWWA association? Ed Wegner stated that there is five members and membership is based upon service area size. The current members are Mike Miller, Ed Wegner, Randy Volk, backflow water quality person and an inspector. Peggy Manning questioned what value is received from this membership? Ed Wegner stated that we received a lot of technical advise, materials, and new equipment information. • What League of Oregon Cities provides to the Water District that is not currently being provided to the City resulting in the cost of $2,500? Pat Reilly stated that the LOC initiated a state wide effort to look at water resource issues within the state which are not a part of the regular LOC membership. A lot of time is being spent with DEQ and water standards and Drinking Water Act. The LOC has also been involved with the reservation effort with the Willamette River trying to protect INTBRGOVBRNNBNTAt+ NAT= BOARD STING MINUTES - MAY 11, 1994 - PAGE 3 domestic use. The City of Tigard has not participated until the last few months to protect the Water Division interests. Chair Manning stated that in 1991 there were 61 different water studies completed. These were almost a sure way to provide guaranteed employment by bringing up water issues and during this time period, she never seen LOC representing other Cities. Would like to have some thought go into joining other groups and agencies and look at the what we are getting in return for that membership. Pat Reilly stated that he would evaluate these memberships but after only three months does not feel that we can fairly evaluate this membership other than based on -what other agencies are gaining. • Travel and Training 51-6800 - Typing error on the part of personal versus personnel in the 1-1/2% for travel and training purposes. Apparently this was also added in twice which adjusted this account from $7,100 to $3,200. • Seminars and Classes 51-6850 - Classes and seminars for 12 FTE's not included in the prior budget amount. This account includes registration whereas, 51-6800 includes travel, food and lodging. • Scada equipment, Phase II - has already been approved by Council, Phase III is what will be budgeted. Phase III will be $200,000 v7hich will include hard and software. Meter van which was listed on the budget is no longer in the budget. Lynda Jenkins noted that she has gone through some issue with Ed Wegner on the phone and he responded to all questions asked. Lynda Jenkins did state that she would like to have the history and background which provides a lot of information. When addressing Citizens questions, it is beneficial to share this information with them. For example, Lynds questioned if rain gear is bought every-year, 'or a partial set each year? Ed Wegner addressed the issue by stating that rain gear is bought on an as needed basis. Bill Sheiderich questions: • Overview of water costs - Are we currently purchasing water from both agencies (Lake Oswego and Portland) minimum purchase contracts? Mike Miller stated that during the peak season, we play the market. ' We have a Purchase Agreement with Portland for a minimum purchase set amount (3.8% purchased) . The next year will purchase water during winter months versus during peak season, to avoid peak season pricing. Beaverton has inquired into using the line that was built to serve Washington Square, which from his understanding there is capacity there and Portland contractual commitment to send water through it to either City. Beaverton's interest is only as a second supply at the South end of Beaverton, at Washington Square. Beaverton is not currently paying that rate to Portland for surface water. • Vehicle Maintenance - Have any other public entities been solicited to do a joint program? Ed Wegner stated that we currently have our own full time Fleet Maintenance Manager and Mechanic and are looking at the prospect of the ability to absorb those vehicles into our program. • Pipeline Replacement - Bull Mountain road widening to be funded by Road Levy and if so could relocation costs of water facilities be charged tr INTERtiOVERNDU3NTAL WATER BOARD MEETING MINUTES - MAY 11, 1994. - PAGE 4 that levy also? Pat Reilly stated that there is no Bull Mountain Road widening other than a walkway. Mike Miller stated that the widening project is being funded by MSTIP. It was determined that it would be to late to be a part of that project. • Bill Sheiderich also questioned the other two capital improvement projects and whether they were General Fund Projects (Beef Bend and Durham Road) or are they out of road levies. Has the Tigard Street Levy expired? Wayne Lowry_ stated that these are not our projects and was not a street levy but a bond issue. Mike Miller stated that both projects are outside the City limits. • Site work for the 2.5 million gallon reservoir - Land use approval is in place? This is outside the City limits. George Morgan questions: • Took a different approach at looking at the budget document. He has planned on forwarding on a document to the Board with his comments, but was unable to have that ready at this time. His primary purpose to approaching the budget was to devise a plan of operation and to try to identify what the responsibilities of the Board are. Primary purpose was to review a plan that anticipates a variety of services and actions, capital improvements, consultant contracts, works that are in progress or are likely to be in progress during the year. First recommendation to establish a program budget for the water enterprise, basically identifying programs and activities that relate to production, maintenance and operation, training and development, public and consumer information.- He has great respect for the efforts that have been made in reducing the budget to a more manageable level. George discussed the issue of developing a program budget, which he realizes, would take a considerable amount of time in defining terms. He feels that this should be an objective to be accomplished during the first quarter of the 1994/95 budget year. Important for two reasons; allows you to forecast and identify the priorities and to access achievement of those goals; and establishment of accountability. A program budget is a) framework to accomplish things which should include a more sophisticated reporting system, b) major program that addressed the subject of public information and consumer services. The need to be more aggressive in making sure that the information is available not when things are already accomplished but as it is being developed, an example of this is the City Newsletter. At this time, it seems to be only a handful of people that have inquired about information as it relates to the Water Division. We need to generate an interest in asking the public to support this plan and the need to provide information, orientation and education programs. c) Staff training and development Chair Manning, wanted to clarify at this time, if the issue of staff training and development is an area that we as an advisory board to the City Council on water related matters, have the authority to get into George Morgan stated that the responsibilities of this agency as outlined in the IGA are quite remarkable. We are neither an administrative board nor a policy making agency, except to our respective jurisdictions as it applies to water supply and capital IpTERGOpERNDU�N'1'AL WATER BOARD MEETING MINUTES - MAY 11, 1994 - PAGE 5 improvements. We are an advisory board to the City of Tigard in those things that the City of Tigard asks for advise on. One of those is specified in the application for variance, etc. We have a responsibility to inform the City Council things that we believe are items that should .be of concern to them, as we observe as a result of our activities. Chair Manning stated that she did not agree with George No on this issue. George Morgan stated that a reporting system is important to staff training and development in trying to find out what is being done and make a judgement to its adequacy and any necessity if there is some to advise the City of Tigard that there are needs that require attention. George Morgan stated that our role today is to support and encourage and hold people accountable for what they propose and what they do. Chair Manning thanked George for his input and asked staff that when the budget document goes to Council will the comments that were made by the Board accompany that document? Chair Manning questioned whether the minutes should accompany this document to the Budget Committee to convey concerns and suggestions? Pat Reilly stated that the Board put together a Motion to convey their concerns and present it to the Budget Committee. It has not been effective in the past to provide the Budget Committee with a lot of additional reading information. Chair Manning questioned what the expectation of Council was in regards to the Budget document? Pat Reilly stated that the Council's expectation is that the Board has seen a full disclosure of the document and had the opportunity to comment on it. George Morgan stated that he would like to see the Board address a Motion. The Board's responsibilities are to make recommendations to the Budget Committee and the Council on all budget requests for operation and maintenance. A Motion was entertained by George Morgan that stated: The primary recommendation being that the budget document reflect a plan and a series of programs which anticipate a variety of maintenance and operation activity during the 1994/95 fiscal year. That a program budget be developed to achieve that objective and that reporting system adequate to valuate progress in achievement of those objectives be established. Public information and customer service program be formalized to ensure public awareness and orientation and education relating to the activities of the Water Division in pursuit of long term water supply, capital improvement plan and maintenance and operation of operational efficiencies. Budget program be established for the personnel training and staff development so that some consolidation proposals of staff can be pursued. gR WAMM BOARD DING MINOTzs - may 11, 1994 - PAGE 6 _ . a Chair Manning stated that hearing no second, this motion fails to continue in the process. Bill Sheiderich made a motion to recommend that Chair Manning make a verbal presentation to the Budget Committee summarizing the concerns the Board has. This would be contingent on being recognized by the Chair of the Budget Committee to speak. If at that time we are unable to speak, we would come back to the Board and come up with a written document. This was seconded by Lynda Jenkins. Pat Reilly stated that if the Board wishes to present a verbal presentation to the Budget Committee that is fine, but the Board need to clarify what there concerns actually are. Chair Manning stated that through the IGA this Board is given the right to go through the budget and make comments and requests changes. Bill Sheiderich stated that he would like to withdraw the Motion. The Board continued with further discussion on a Motion. Pat Reilly stated that the Board need to focus on the issue at hand, being whether or not to recommend the budget for approval. A short break was taken at 7:00 and meeting was resumed at 7:08 p.m. Lynda Jenkins made a Motion that moved that the Administration inform the Budget Committee of the Intergovernmental Water Board's preference that the budget for fiscal year 1995 be managed using performance criteria (goals and objectives) to be devised and that the fiscal year 1996 budget be prepared using that format, showing history and justification. The Motion was seconded by Bill Sheiderich. The Motion passed unanimously. Chair Manning stated the Board's appreciation for Ed Wegner and Wayne Lowry to take the time to discuss and clarify their budget questions during the week. 5. Director's Report Ed Wegner stated that he provided the monthly report, but due to the difficulty in getting those completed, would discuss at the next meeting. In the future, will include these reports in the packet sent to the Board members. Ed Wegner stated he had two questions for the Tigard Water District; 1) Has Ring City and Durham passed SDC's. Lynda Jenkins stated that the Water Division should have received a copy. 2) City of Durham is close to passing and will provide a copy to the Water Division. Pat Reilly stated that we have asked the various entities to affirm the request to extend the CIP deadline from June 30 to September 30, and have not had a response to date. Icing City did send a copy but will make sure another copy is provided. City of Durham has not acted on that at this time. Chair Manning requested that Mr. Feldman get together with the City of Tigard to discuss these issues. INTERGOVERNMENTAL WATER BOARD MEETING MINUTES - MAY 11, 1994 - PAGE 7 6. Non Agenda Items George Morgan brought up the issue of asset allocation and as a matter of information that program is underway and the Consultant is using his judgement. Their is uncertainty to what direction to head since it is not as simple as it sounds. It would be appropriate for members of each jurisdiction to direct those questions to the consultant or attend the meeting. Hope to be finish in the next couple of months. Items for next agenda would be: Discussion of the draft bylaws. Water Budget update Long term water supply update The next meeting of the IWB was set for June 8, 1994 at 5:30 p.m. Lynda Jenkins questioned the possibility of obtaining copies of the water quality reports. Lynda stated that the Board in the past has received copies of the sampling printouts. Mike Miller stated that the Water Division is done with the testing for Lead and Copper for the last period. Lynda stated she would like to receive these when available with their agenda packets. Bill Sheiderich made a Motion to Adjourn and was seconded by Lynda Jenkins at 7:20 p.m. INTSRGOVSRNKMAL WATLR BOARD MMING MINO783 - MAY 11, 1994 - PAGE 8 T- J+ Yo semcl 7- 1"64, a E� REGIONAL WATER SUPPLY PLAN ' Portland Metropolitan Area June 22, 1994 PARTICIPATING WATER PROVIDERS Mr. Ed Wegner City of Tigard water Department City Beaverton post Office Box 230000 Canby Utilities Board Tigard, Oregon 97281-1999 Clackamas Water District Dear Mr. Wegner: City of Gladstone Clairmont Water Attached you will find the most recent version of the District policy objectives piece that we have been working on Damascus Water for the Regional Water Supply Plan project . The goal District at this point would be to share this document with your City of Fairview policy bodies and elected officials as you deem City of Gresham appropriate to get their feedback, thoughts, comments, City of Hillsboro, suggested revisions, additions . The piece can be used -1%iitiesCommission to provoke some thinking about water supply issues from .ty of Forest Grove City of Lake Oswego your own jurisdiction' s perspectives . The objectives Citv of N&lwaukie can be used to stimulate discussion about the Mt.Scott Water objectives themselves as a statement of the important District issues regarding water supply and to hone in on those Oak Lodge Water issues that are of particular concern to your decision District makers and stakeholders . Citv of Portland Raleigh Water The policy objectives are very important to the Dist`ctcompletion of the Phase 2 planning process because they Rockwood Water will be used to guide the formulation of integrated City ofSandv `„later supply strategies and will form the basis of City of Sherwood South Fork Water measurable evaluation criteria against which future Board, water resource strategies will be assessed. In many (City of Oregon City ways, the policy objectives are the "engine" that City of west Linn) drives the planning process . Tigard Water Dist. City of Troutdale The policy objectives are meant to represent the City of Tualatin ranee of values held throughout the region not a Tualatin Valley statement of consensus . Therefore, some will be Water District complementary while others will compete or may actually West Slope Water conflict with each other (in terms of satisfying them District City of Wilsonville to varying degrees) The idea for this piece was to City of Wood village represent what citizens, stakeholders, as well as water providers believe to be important in how this region ^ meets its future water supply needs . It is Regional Water Supply Plan Project, 1120 S.W.5th #601,Portland,Oregon 97204-1926 (503)823-7528 Participants Committee Regional Policy Objectives June 20, 1994 Page 2 important that this set of objectives represent as broad a range of views as exists in the region. Otherwise, we risk not addressing legitimate concerns which we will have to address later, after we have completed most of the work. For that reason the policies have been formulated based on not only the expertise of the water provider participants but also the feedback gained from the last couple of years in reaching out to other stakeholder groups. The Steering and Participants Committees have engaged in an intensive collaborative process to develop this set of policy objective statements . This process has also incorporated the input of the Water Services Leadership Group and some other advisory bodies specific to this process. The policy objectives have gone through many iterations, which has resulted in a much better focus on what is truly important to the region in evaluating alternative resource strategies . Some of you have already begun to share these objectives with your decision making bodies. Now is the time to engage whatever groups, individuals, or bodies that you feel is appropriate. The intent would be to use this set of objectives to stimulate discussion about both the objectives themselves as a statement of the range of values regarding water supply issues and to hone in on those values that are of particular concern to your decision makers and stakeholders. Any suggestions for revisions or additions to the policy objectives should be given to either myself or Gary Fiske and once these are compiled the Steering Committee will recommend changes to the Participants Committee. We would like to complete this review pr-ocess==by September of this year. �- Sincerely Yours, S J-J'� Lorna Stickel Project Manager Attachments �i1rr+; ENVIRONMENTAL IMPACTS ■ Minimize the impact of water resource development on the natural and human environments. For purposes of discussion and analysis, the distinction between the two-is described as follows: The natural environment includes but is not limited to the following areas: - Fisheries - Wetlands - Threatened & endangered species - Wildlife - Water quality - Geotechnical hazards The human environment includes but is not limited to the following areas: - Cultural and historic resources - Land use compatibility for facility siting - Recreation - Scenic resources - Hazardous waste and waste discharges NOTE: All of these impacts are those that remain after mitigation efforts. The cost of environmental mitigation will be reflected in the "economic costs" policy area. GROWTH ■ Be consistent with Metro's regional growth strategy and local land use plans. FLEXIBILITY TO DEAL WITH FUTURE UNCERTAINTY ■ Maximize the ability to anticipate and respond to unforeseen future events or changes in forecasted trends. liwwl 3 ENVIRONMENTAL IMPACTS ■ Minimize the impact of water resource development on the natural and human environments. For purposes of discussion and analysis, the distinction between the two-is described as follows: The natural environment includes but is not limited to the following areas: - Fisheries - Wetlands - Threatened & endangered species - Wildlife - Water quality - Geotechnical hazards The human environment includes but is not limited to the following areas: - Cultural and historic resources - Land use compatibility for facility siting - Recreation - Scenic resources - Hazardous waste and waste discharges NOTE: All of these impacts are those that remain after mitigation efforts. The cost of environmental mitigation will be reflected in the "economic costs" policy area. GROWTH ■ Be consistent with Metro's regional growth strategy and local land use plans. FLEXIBILITY TO DEAL WITH FUTURE UNCERTAINTY ■ Maximize the ability to anticipate and respond to unforeseen future events or changes in forecasted trends. liwwl 3 . f MAY 1994 WATER MONTHLY REPORT Revenues/Expenditures: Month of May Year to Date Prior Yr. to Date %of Budget Revenues: Water Sales $223,642.08 $2,821,842.43 $2,542,731.57 Meter Sales 63,855.00 519,135.93 304,054.12 Developer Fees 16,366.68 96,005.54 126,047.19 Other Income 5,436.12 106,015.27 114,322.83 Total Revenue $309,299.88 $3,542,999.17 $3,087,155.71 96.2% Expenditures: Personal Services $60,037.17 $763,856.08 $820,274.78 Material Services 123,671.78 1,548,428.82 1,261,353.62 Capital Outlay 6,736.99 254,273.90 339,090.00 Cap. Proj. Res. Fund 00.00 300,000.00 300,000.00 Total Expends. $190,445.94 $2,866,558.80 $2,720,718.40 62.2% SDC Fund: $83,170.00 $665,853.68 $405,185.78 216.2% Meter Installations: 5/8" x 3/4" 1" 1 1/2" 2" Total Durham 5 0 0 0 5 King City 0 0 0 0 0 Unincorporated Area 37 3 0 0 40 City of Tigard 24 3 2 2 31 Total for May 76 Work Accomplished: Durham • Water Division personnel replaced a fire hydrant that was damaged by a motor vehicle at 16075 SW Upper Boones Ferry Road. • Water Division personnel responded to a few, less than five, requests for routine pressure and meter problems. The most common meter problems consist of determining whether or not a water leak actually exists on the customer side of the meter. King City • Water Division personnel responded to a few requests for routine pressure and meter problems within the city limits of King City Unincorporated Area • Water Division personnel performed meter maintenance in various locations throughout the unincorporated area. This work involved adjusting four water meters and the meter boxes to the proper grade; replacing the concrete meter box covers on three meters; installing a concrete traffic meter box; and replacing four water meters that were stuck, broken, and fogged. • Water Division personnel repaired three water services that were damaged by other utility installations within newer subdivisions in the unincorporated area. • Water Division personnel relocated a fire hydrant and seven water services on SW 139th Avenue, south of SW Bull Mountain Road, due to a conflict with a new sidewalk that was required by Washington County after the subdivision was completed. This completes the relocation work on SW 139th Avenue that began in April. • Water Division personnel relocated five 5/8" x 3/4" meters,two 1" water meters,three CARV's (combination air and vacuum release valve) and one fire hydrant along SW Bull Mountain Road due to the City of Tigard Bull Mountain Road Shoulder Improvement and Washington County overlay project. City of Tigard • Water Division personnel installed two 2" water services on SW Sequoia Parkway for the Office Depot site. • Water Division personnel relocated a water meter on SW Falcon Rise Drive and relocated two water meters on SW Mary Place due to conflicts with driveway locations. • Water Division personnel tapped the 8-inch water main from the#3 reservoir located on SW 135th Avenue, south of SW Walnut Street, for a pressure sensor that will be installed in phase 2 of the SCADA program. • Water Division personnel installed two 3/4" water services and one 1" water service on SW Park Street for a single family residential development. • Water Division personnel removed one 3/4" and one 1" temporary water services at the Durham Water Treatment Plant. These water services were used during the construction of the plant expansion. Water Consumption and Loss: Total 100 cubic feet of water purchased or produced 234,887 ccf Plus amount of water from storage during May and consumption not billed in April 10,278 ccf Total 100 cubic feet of water billed <140,100 ccf> Net amount of water in storage < 12,000 ccfl Amount of water consumed but not yet billed < 70,200 ccf5 Total Water loss 14,865 ccf 6.06% Status Report: Golden Valley Construction, Inc. of Salem, Oregon started construction Monday, June 6, on the SW North Dakota Street 12-inch Transmission Main Project. Handheld Meter Reading is proceeding very well and currently we are cross-training two additional personnel to perform this task. Classification interviews of the Water Staff were completed on Friday, June 3. Coopers and Lybrand, Certified Public Accountants, have completed the audit of the Southeast Washington County Joint Water Agency for the period of July 1, 1993 to December 31, 1993. The final report was received on June 6. A presentation to the IWB by Coopers and Lybrand will be scheduled at a later date. Murray Smith and Associates, the engineering firm performing the Water Supply Study, will give an informational update on the Water Supply Study at the IWB meeting June 8. July 1, 1994 is still the target date for combined sewer and water billings for city of Tigard residents who are also within the Water Department's service area. Complaint Summary: We are still receiving inquiries from citizens about the joint sewer and water billing system. Number of calls: 20 to 25 last month. There is still some confusion regarding the way the water bill is calculated. The confusion stems from both the minimum ccf for the billing period and the dollar amount. The inconsistency is from the information on the back of the water bills and the way the computer system is setup to apply the minimum. The computer bases its calculations on a 61 day billing period. Number of inquiries: 5 to 8 last month. We have received 4 to 5 calls regarding the construction of the 12-inch transmission main on SW North Dakota. The callers stated that they were concerned with the safety of the school children waiting for the school buses in the morning and their return in the afternoon. Operational Changes: No major operational changes during the month of May. MEMORANDUM CITY OF TIGARD, OREGON TO: Intergovernmental Water Board Members FROM: Liz Newton, Community Involvement Coordinator DATE: April 15, 1994 SUBJECT: DRAFT Bylaws Attached is a revised copy of the DRAFT IWB Bylaws. The section on Voting and Motions has been clarified to reflect that a majority vote of the Board is necessary to pass motions. I have ordered five copies of the pamphlet on Conflict of Interest from the Oregon Government Standards and Practices Commission. An appropriate reference to that document will be included in. the bylaws. In addition, a reference regarding Parliamentary Authority will be added after the City Recorder makes a recommendation. As I pointed out at your meeting on April 13, the Board may want to consider their obligation to appoint a Chair-Elect in the event of a mid-term resignation. The last paragraph on page one of the DRAFT Bylaws require the Board to fill that vacancy at the next available meeting. The Board may want more flexibility if there is only two or three months left of the term. If after discussion, the Board agrees to other modifications, additions, or- deletions, the changes will be made and presented to the Board prior to adoption. If no additional revisions are necessary, staff will present the final version for adoption. INTERGOVERNMENTAL WATER BOARD DRAFT BYLAWS REVISED APRIL 15, 1994 ARTICLE I: Name of Organization Intergovernmental Water Board ARTICLE II: Mission The Cities withdrew from the original District with intent to take a more active role in planning and operating a domestic water supply system for the Southeast Washington County area in order to provide the residents of that area with the highest quality water service at the lowest possible cost. In keeping with that intention, the Parties to this Intergovernmental Agreement commit to working together to provide all of the residents and undeveloped property in the original District with a clean, economical water supply. The Parties further commit to working together and with other agencies and jurisdictions in a cooperative effort to plan for the future long term water supply needs of the area. ARTICLE III: Members The Intergovernmental Water Board (IWB) will consist of five members. Members of the Board will be appointed by the respective governing bodies as follows: Tigard - One Member King City - One Member Durham - One Member District/Unincorporated Area - One Member At Large - One Member selected by a majority vote of the Other Members. ARTICLE IV: Officers The Intergovernmental Water Board shall elect a Chair and Chair-Elect from its' members. Election of the Chair-Elect shall be held the first meeting of each calendar year. The Chair-Elect shall serve one calendar year in that position and become Chair the first meeting of the next calendar year. In the event of a resignation of the Chair, the standing Chair-Elect shall become Chair on the effective date of the resignation of the Chair. (� The new Chair shall serve the remainder of the vacating Chair's term. The new Chair's one year term shall commence at the first meeting of the next calendar year. In the event of a resignation by the Chair-Elect, an election to fill the unexpired term shall be held at the next available meeting. Duties of the Chair: Presides over the deliberations of the Board. He/She votes on all questions brought before the Board. Has the authority, with consent of Board Members in attendance, to place time limits on visitor comments. Is recognized as the spokesperson for., Board actions and activities. Reviews and approves meeting agendas set by Board prior to the meeting. Duties of the Chair-Elect: Presides over the Board in the absence of the Chair. Preforms other duties assigned to the Chair in the absence of the Chair. ARTICLE V: Meetings: Meetings of the Intergovernmental Water Board shall be held at a regular time and place set by the members. Meetings of the Intergovernmental Water Board are subject to the open meetings law and are open to the public. Only issues covered under ORS 192.660 may be discussed in Executive Session. Quorums: A majority of 3 members shall be considered a quorum to conduct business. Duly appointed Alternates count as Members for purposes of establishing a quorum. In the event that the elected Chair and Chair-Elect are both absent, the Members in attendance shall elect a pro-tem Chair for that meeting. Agendas: At the end of each Board meeting agenda, sufficient time shall be allocated to set the agenda for the next meeting. Agendas shall be reviewed and approved by the Chair prior to mailing. . Agendas and supporting material shall be mailed to Board Members one week prior to meetings. Information for last minute agenda items shall be distributed to Board Members at least 48 hours in advance of meetings. Only true emergencies may be brought before the Board without at least 48 hour notice. Meeting Notice: Notice of all Board meetings must be posted at least three days prior to the meeting in the following locations: Tigard City Hall King City City Hall Durham City Hall Tigard Water Building In addition, Notice of all meetings of the Board• must be published in the Tigard Times at least three days prior to each meeting. Public Comment: There shall be time set aside on each regular meeting agenda for Visitors to address the Board on any topic related to the Board's duties. Visitors will be asked to limit their comments to five minutes. In addition, the Board may ask for Public comment on specific issues under consideration. The Board reserves the right to place time limits on speakers. Voting and Motions: Each Board Member shall be allowed one vote. Any members may make and second motions. Motions shall be addressed to the Chair. All seconded motions shall be voted on by the Board. The Chair may ask for unanimous consent if the motion is not debated or discussed. A voice vote shall be the usual method of voting. For adoption, motions require a majority vote of the Board Members (3 affirmative votes) . in the event of a tie, any member may ask for reconsideration of the motion. The motion fails if the second vote is a tie. Minutes: Staff shall be assigned to record and transcribe minutes of all Board meetings. Prepared minutes shall be considered "draft" until approved by majority vote of the Board at a regular meeting. The Chair shall sign minutes acknowledging Board approval. Parliamentary Authority: ARTICLE VI: Conflict of Interest ARTICLE VII: Amendments These Bylaws of the Intergovernmental Water Board may be amended at any time by majority vote of the members. AR LocAC--e- uW AS - -- C _ o��o��`v�, _ 'Tva tc tu ► Set( po rgy-��cef - =--I n i k or(, Com_ Cas f 61-4A";116-9o JP-_ -r7.-L — -- 2 •_ 5-� ,�,-.o.�b Cos pp--� _W A-� - �� ,5-. wokEv,— p kS eemn.e j- C®nb2c�C1 riw 41 00 �I! ;b �, A 0 m"i � , r L !,,,1 J 1 II' 'T i, Oh I I t" I I :j� I. I "li 1. t'I"!, tv, I d I j it It N It All I I' lit it :1 At it vit SOUTHEAST WASHINGTON COUNTY JOINT WATER AGENCY REPORT ON AUDIT OF FINANCIAL STATEMENTS AND SUPPLEMENTARY DATA (Containing Audit Comments and Disclosures Required by State Regulations) for the six months ended December 31, 1993 SOUTHEAST WASHINGTON COUNTY JOINT WATER AGENCY DIRECTORS AS OF DECEMBER 31, 1993 Name Term Expires Lynda Jenkins December 31, 1993 Paul Hunt December 31, 1993 John Schwartz December 31, 1993 Beverly Froude December 31, 1993 Clarence Nicoli December 31, 1993 Bob Tydeman December 31, 1993 Patrick Reilly December 31, 1993 ADMINISTRATOR Randy Volk (acting) REGISTERED OFFICE 8777 S.W. Burnham Street Tigard, Oregon 97223 LEGAL COUNSEL George Mardikes Derryck H. Dittman Davis Wright Tremaine Anderson&Dittman 2300 First Interstate Tower 8865 S.W. Center Street Portland, OR 97201-5682 Tigard, Oregon 97223 SOUTHEAST WASHINGTON COUNTY JOINT WATER AGENCY TABLE OF CONTENTS Page REPORT OF INDEPENDENT ACCOUNTANTS 1 SECTION I-BASIC FINANCIAL STATEMENTS: Balance Sheet 3 Statement of Changes in Agency Equity 4 Statement of Income 5 Statement of Cash Flows 6 Notes to Financial Statements 7 SECTION Il - SUPPLEMENTARY DATA: Description of Budgetary Funds 12 Schedule of Revenues - General Fund 13 Schedule of Expenditures - General Fund 14 Schedule of Revenues and Expenditures - Systems Development Fund 15 Schedule of Revenues and Expenditures - Capital Projects Reserve Fund 16 Reconciliation of Revenues and Expenditures to the Statement of Income 17 SECTION III- AUDIT COMMENTS AND DISCLOSURES REQUIRED BY STATE REGULATIONS: Introduction 18 Internal Accounting Control 19 Other Comments and Disclosures 19 CooPp`rs certified public accountants Y &L brand REPORT OF INDEPENDENT ACCOUNTANTS Board of Directors Southeast Washington County Joint Water Agency Tigard, Oregon We have audited the accompanying balance sheet of Southeast Washington County Joint Water Agency as of December 31, 1993, and the related statements of changes in Agency equity, income and cash flows for the six months then ended. These financial statements are the responsibility of the Agency's management. Our responsibility is to express an opinion on these financial statements based on our audit. We conducted our audit in accordance with generally accepted auditing standards and the Minimum Standards for Audits of Oregon Municipal Corporations. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our audit provides a reasonable basis for our opinion. In our opinion, the financial statements referred to above present fairly, in all material respects, the financial position of Southeast Washington County Joint Water Agency at December 31, 1993, and the results of its operations and its cash flows for the six months then ended in conformity with generally accepted accounting principles. 1 Our audit was conducted for the purpose of forming an opinion on the basic financial statements taken as a whole. The supplementary data included in this report on pages 12 to 17, inclusive, are presented for purposes of additional analysis and are not a required part of the basic financial statements of Southeast Washington County Joint Water Agency. Such information has been subjected to the auditing procedures applied in the audit of the basic financial statements and, in our opinion, is fairly presented, in all material respects, in relation to the basic financial statements taken as a whole. COOPERS &LYBRAND By eeU44k 0 7- 4�� Brent A. Macey,a partner Portland, Oregon April 8, 1994 2 +�r �r SECTION I BASIC FINANCIAL STATEMENTS r �w SOUTHEAST WASHINGTON COUNTY JOINT WATER AGENCY BALANCE SHEET December 31, 1993 ASSETS Current assets: Cash and cash equivalents $ 3,711,838 Investments 102,875 Accounts receivable 478,869 Inventory of materials and supplies 110,664 Other current assets 13,006 Total current assets 4,417,252 Deferred compensation investments, designated for deferred compensation benefits 331,059 Utility plant in service, at cost,net of accumulated depreciation 20,872,627 $25,620,938 LIABILITIES AND AGENCY EQUITY Current liabilities: Accounts payable $ 129,352 Other accrued liabilities 96,485 Total current liabilities 225,837 Deferred compensation plan liability 331,059 Total liabilities 556,896 Agency equity.: Contributed capital 24,762,704 Retained earnings 301,338 Total agency equity 25,064,042 $25,620,938 The accompanying notes are an integral part of the financial statements. 3 SOUTHEAST WASHINGTON COUNTY JOINT WATER AGENCY STATEMENT OF CHANGES IN AGENCY EQUITY for the six months ended December 31, 1993 Contributed Retained Total Agency Capital Earnings Equity Balances,July 1, 1993 $ 23,820,494 $ 23,820,494 Net income $ 301,338 301,338 Contributions 942,210 942,210 Balances, December 31, 1993 $ 24,762,704 $ 301,338 $ 25,064,042 The accompanying notes are an integral part of the financial statements. 4 SOUTHEAST WASHINGTON COUNTY JOINT WATER AGENCY STATEMENT OF INCOME for the six months ended December 31, 1993 Operating revenues: Residential and commercial water service $ 1,901,774 Other 3,546 Total operating revenues 1,905,320 Operating expenses: Labor and fringe benefits 459,433 Water purchased 713,436 Electricity and other utilities 75,452 Maintenance and repairs 60,011 Professional and engineering 74,068 General and administrative 39,048 Supplies 53,340 Less overhead and equipment usage expenses capitalized on line extensions (58,644) Total operating expenses before depreciation 1,416,144 Operating income before depreciation 489,176 Depreciation expense 267,084 Operating income 222,092 Nonoperating income: Interest income 59,189 Gain on disposal of utility plant 3,319 Miscellaneous income 16,738 79,246 Net income $ 301,338 The accompanying notes are an integral part of the financial statements. 5 SOUTHEAST WASHINGTON COUNTY JOINT WATER AGENCY STATEMENT OF CASH FLOWS for the six months ended December 31, 1993 Cash flows from operating activities: Operating income $ 222,092 Adjustments to reconcile operating income to net cash provided by operating activities: Depreciation 267,084 Changes in assets and liabilities: Increase in accounts receivable (15,997) Increase in inventory (20,787) Increase in other current assets (7,107) Decrease in accounts payable (191,803) Decrease in other accrued liabilities (1,967) Increase in deferred compensation plan liability 33,813 Total adjustments 63,236 Net cash provided by operating activities 285,328 Cash flows from noncapital financing activities: Other nonoperating income 16,738 Cash flows from capital and related financing activities: Cash received on disposal of utility plant 3,319 Acquisition of utility plant (160,444) Capital contributions 583,071 Net cash provided by capital and related financing activities 425,946 Cash flows from investing activities: Interest 59,189 Investments purchased (1,820) Increase in deferred compensation investments, net (33,813) Net cash provided by investing activities 23,556 Net increase in cash and cash equivalents 751,568 Cash and cash equivalents, July 1, 1993 2;960,270 Cash and cash equivalents, December 31, 1993 $ 3,711,838 Noncash capital and related financial activities: The Agency received$359,139 in fixed assets from developers. The accompanying notes are an integral part of the financial statements. 6 SOUTHEAST WASHINGTON COUNTY JOINT WATER AGENCY NOTES TO FINANCIAL STATEMENTS 1. The Agency and Summary of Significant Accounting Policies: Organization and Operation Southeast Washington County Joint Water Agency (the Agency), was formed on July 1, 1993 pursuant to ORS 190.003 to provide domestic water services to the cities of Tigard, Durham and King City (the cities). The Agency assumed all the assets and liabilities, except for that related to bonded indebtedness, as of July 1, 1993 from the Tigard Water District. The responsibility for the payment of bonded indebtedness remained with the Tigard Water District. The Agency is governed by a seven member Board of Directors, of which four members represent the City of Tigard and one each represents the cities of Durham and King City and the Tigard Water District. Effective January 1, 1994 the Agency's operations were assumed by the City of Tigard. The Agency's accounts are maintained on the fund accounting basis required for budgetary reporting. For financial reporting purposes its financial statements are presented as an operating utility enterprise. The principal sources of working capital are revenues from water service and contributions. Working capital is expended primarily for operations and additions to utility plant in service. Description of Reporting Entity and Basis of Accounting The financial statements have been prepared on the accrual basis of accounting whereby revenues are recorded at the time they are earned and expenses are recorded at the time liabilities are incurred. The Agency's financial statements include all activities and organizations over which the Agency exercises oversight authority as demonstrated by financial interdependency and/or authoritative appointment of governing authority. The Agency has no potential component units. Cash Flows For purposes of the statement of cash flows, the Agency considers all highly liquid investments with an original maturity of three months or less when purchased and all amounts in pooled accounts (including restricted assets)to be cash equivalents. Investments Investments and deferred compensation investments on the balance sheet are carried at cost plus accrued interest, which approximates market value. 7 SOUTHEAST WASHINGTON COUNTY JOINT WATER AGENCY NOTES TO FINANCIAL STATEMENTS, Continued 1. The Agency and Summary of Significant Accounting Policies, Continued: Accounts Receivable The Agency accrues receivables for water service rendered, including unbilled service. Substantially all accounts receivable for water service are either current or less than 30 days delinquent and are considered collectible. Therefore, an allowance for uncollectible accounts has not been provided. All accounts receivable balances are due from customers within the Agency's boundaries. Inventory of Materials and Supplies The inventory of materials and supplies is stated at lower of cost or market on the first-in, first-out basis. Utility Plant in Service Utility plant in service is stated at cost. Depreciation is computed on assets placed in service, using the straight-line method, over their estimated useful lives as follows: Buildings 33 years Supply and distribution lines 50 years Wells,reservoirs and pump stations 10 to 40 years Machinery and equipment 5 to 10 years Normal maintenance and repairs are charged to operations as incurred. Expenditures for major additions, improvements and replacements are capitalized. Upon disposition of such assets, the accounts are relieved of the related costs and accumulated depreciation and resulting gains or losses are reflected in income. Contributed Capital Contributed capital is comprised of meter installation and waterline hookup fees from customers, and pipe installations by developers. 8 SOUTHEAST WASHINGTON COUNTY JOINT WATER AGENCY NOTES TO FINANCIAL STATEMENTS, Continued 2. Cash, Cash Equivalents and Investments: The Agency is legally authorized to invest in the types of investments listed under Oregon Revised Statutes Section 294.035. All of the investments held at December 31, 1993 are allowable under this Section. Cash, cash equivalents and investments are comprised of: Cash on hand $ 400 Cash in bank demand deposit accounts 238,180 State of Oregon Local Government Investment Pool 3,473,258 Total cash and cash equivalents 3,711,838 Investments - certificates of deposit 102,875 Deferred compensation investments . 331,059 Total cash,cash equivalents and investments $ 4,145,772 The carrying value of all investments held at December 31, 1993, approximates market value. At December 31, 1993, the carrying amount of the Agency's demand deposits was $238,180 and the bank balance was $244,096. Of the bank balance, $100,000 was covered by federal depository insurance, $125,000 was collateralized with securities held by financial institutions in the Agency's name and $19,096 was uncollateralized. Statutes require depository institutions to maintain on deposit with a collateral pool manager securities having a value not less than 25% of the outstanding certificates of participation issued by the pool manager. The Agency's investment in the State of Oregon Local Government Investment Pool of $3,473,258 at December 31, 1993 is not required to be categorized by risk in accordance with Governmental Accounting Standards Board Statement No. 3 (GASB No. 3). The deferred compensation investments of$331,059 at December 31, 1993 are held by an insurance company in a pooled investment account and are classified in accordance with GASB No. 3 in Category 3. GASB No. 3 requires categorization of investments to give an indication of the level of risk assumed by the Agency. Category 1 includes investments that are insured or collateralized with the Agency or its agent in the Agency's name. Category 2 includes uninsured investments for which the securities are held in the Agency's name by the trust department of the financial institution selling the security to the Agency. At December 31, 1993 the Agency has no Category 1 or 2 investments. Category 3 includes uninsured investments for which the securities are held by the financial institution selling the security to the Agency or by its trust department, but not in the Agency's name. At December 31, 1993, all investments required to be categorized are classified in Category 3. 9 SOUTHEAST WASHINGTON COUNTY JOINT WATER AGENCY NOTES TO FINANCIAL STATEMENTS, Continued 3. Utility Plant in Service, Changes in these accounts are as follows! Retirements Balances Balances and December 31, July 1, 1993 Additions Transfers 1993 Land $ 692,559 $ 692,559 Buildings 1,409,745 1,409,745 Improvements other than buildings 23,614,049 $ 482,563 $ (9,556) 24,087,056 Machinery and equipment 1,400,683 37,020 1,437,703 27,117,036 519,583 (9,556) 27,627,063 Accumulated depreciation (6,496,908) (267,084) 9,556 (6,754,436) $ 20,620,128 $ 252,499 $ $ 20,872,627 4. Retirement Plan and Deferred Compensation Plan: The Agency assumed the responsibility of Tigard Water District's (the District) noncontributory defined contribution retirement plan. The Plan covers all full time employees who have been employed for a full six months or more by the Agency or District with a minimum age of 20-1/2 years and who have elected to be covered by the Agency's deferred compensation plan. Covered payroll for the six months was approximately$269,000 of$451,000 in total payroll. Under the defined contribution retirement plan, the Agency makes contributions to the Plan totaling 10% of each participant's salary. Total employer contributions accrued and charged to operations were $26,955. The Agency assumed responsibility for the District's deferred compensation plan. The Plan created in accordance with Internal Revenue Code Section 457, has eligibility requirements identical to the Agency's defined contribution retirement plan. A percentage of the participant's gross compensation, generally a minimum of 3% and a maximum of 25% or$7,500, is withheld from the participant's gross compensation and remitted (usually quarterly) to an insurance company. The amounts remitted are held on deposit, solely as the property of the Agency, and become a general liability of the Agency to its employees whose rights are equal to, but no greater than, the rights of other general creditors with respect to such amounts. 10 SOUTHEAST WASHINGTON COUNTY JOINT WATER AGENCY NOTES TO FINANCIAL STATEMENTS, Continued 4. Retirement Plan and Deferred Compensation Plan: Deferred compensation assets are valued at the contribution amount, plus the net interest income earned which approximates market. 5. Commitments: The Agency has a twenty-five year agreement to purchase a minimum percentage of its total water consumption from the City of Portland. A penalty is charged if the Agency does not purchase at least the minimum amount. The minimum percentage is recalculated each year and is based on a five-year moving average. For the six months ended December 31, 1993 the minimum percentage amount has not been calculated. If the Agency made no water purchases from the City of Portland for five successive years, the purchase commitment percentage would decrease to zero. The Agency has an agreement to purchase water from the City of Lake Oswego. A minimum purchase of$75,000 per year is required under the agreement. The Agency's purchases from the City of Lake Oswego totaled approximately $711,000 for the six months ended December 31, 1993. 11 aw w ar +w SECTION II lw SUPPLEMENTARY DATA SOUTHEAST WASHINGTON COUNTY JOINT WATER AGENCY DESCRIPTION OF BUDGETARY FUNDS For financial reporting and operating purposes, management considers the Agency's activities as those of a unitary enterprise operation and, as such, are reported in a single fund in the basic financial statements. However, for budgetary and legal purposes, these activities are accounted for in the funds described below: General Fund This fund accounts for the Agency's normal recurring operations. The primary source of revenue is water service charges. Systems Development Fund This fund accounts for the development of water systems. The primary source of revenue is meter installation charges. Capital Projects Reserve Fund This fund accounts for monies reserved for construction of a new reservoir. The primary source of revenue is interest earnings. 12 SOUTHEAST WASHINGTON COUNTY JOINT WATER AGENCY GENERAL FUND SCHEDULE OF REVENUES for the six months ended December 31, 1993 Over(Under) Budget Actual Budget REVENUES: Water service charges $3,232,300 $ 1,934,402 $(1,297,898) Sewer service charges 30,000 (30,000) Meter installations 225,700 260,977 35,277 Recovery of construction costs from developers and others 98,400 43,766 (54,634) Rebates from line extensions 2,000 (2,000) Miscellaneous, interest and penalties 90,200 51,501 (38,699) Sale of equipment 2,000 3,319 1,319 Rental income 2,100 1,701 (399) Total revenues 3,682,700 2,295,666 (1,387,034) BEGINNING FUND BALANCE AVAILABLE FOR APPROPRIATIONS 2,000,000 2,188,411 188,411 $5,682,700 $ 4,484,077 $(1,198,623) This schedule is prepared on a budgetary basis to conform with the Minimum Standards for Audits of Oregon Municipal Corporations. 13 SOUTHEAST WASHINGTON COUNTY JOINT WATER AGENCY GENERAL FUND SCHEDULE OF EXPENDITURES for the six months ended December 31, 1993 Budgeted (Over)Under EXPENDITURES: Qppro rias tions Actual Budget Personal services: Administrator $ 77,981 $ 7,330 $ 70,651 Foreman 56,261 28,563 27,698 Crewmen 330,029 161,060 168,969 Other field labor 60,000 15,625 44,375 Shop labor 45,752 22,706 23,046 Bookkeeper 39,555 20,082 19,473 Office manager and office help 145,103 60,207 84,896 Overtime 30,519 18,874 11,645 Pension plan contributions 68,000 28,263 39,737 Medical,vision,dental,life and disability insurance 92,000 42,794 49,206 Payroll taxes 94.500 36.127 58.373 1.039.700 441.631 598.069 Materials and services: Water purchased 1,454,000 713,436 740,564 Water costs-electricity 156,000 63,066 92,934 Maintenance and repair of lines and pumps 85,200 29,892 55,308 Meter maintenance and repair 28,800 12,948 15,852 Equipment rental 1,200 1,039 161 Insurance 38,000 38,000 Professional fees 137,500 74,068 63,432 Office supplies and expense 96,800 44,446 52,354 Utilities 33,700 12,386 21,314 Advertising and elections 31,700 4,812 26,888 Dues and subscriptions 13,000 9,802 3,198 Miscellaneous 21,200 7,504 13,696 Fire hydrant maintenance 26,300 6,039 20,261 Truck and equipment maintenance and repair 18,000 9,456 8,544 Gas and oil I8,000 7,395 10,605 Janitorial services 15,000 6,433 8,567 Tires and batteries 3,000 464 2,536 Small tools 6,000 1,034 4,966 Rain gear and first aid 9,000 2,590 6,410 Employee training 19,200 4,084 15,116 Repairs-smalI tools and equipment 3,500 1,678 1,822 Caterbury Shop expense 2,000 766 1,234 Training travel 6.000 2.006 3.994 2.223.100 1.015.344 1.207.756 Capital outlay: Buildings and additions 10,000 10,000 Meter installations 108,500 70,433 38,067 Equipment and tools 288,500 37,020 251,480 Line extensions 251,610 17,922 233,688 Fire hydrants 3,000 3,000 Land and improvements to land 76,800 18,319 58,481 Public art program 2,700 2,700 741.110 143.694 597.416 Operating contingencies 305.000 305.000 Total expenditures 4,308,910 1,600,669 2,708,241 OTHER FINANCING USE: Operating transfer to Capital Projects Reserve Fund 300.000 300,000 Total expenditures and other financing use 4,608,910 $-1,9-00 .,669 $ 2.708.241 UNAPPROPRIATED ENDING FUND BALANCE 1.073.790 Total $ 5.682,700 This schedule is prepared on a budgetary basis to conform with the Minimum Standards for Audits of Oregon Municipal Corporations. 14 SOUTHEAST WASHINGTON COUNTY JOINT WATER AGENCY SYSTEMS DEVELOPMENT FUND SCHEDULE OF.REVENUES AND EXPENDITURES for the six months ended December 31, 1993 Over(Under) Budget Actual Budget REVENUES: System development charges for meter installations $ 300,000 $ 322,094 $ 22,094 Interest 8,000 12,978 4,978 Total revenues 308,000 335,072 27,072 BEGINNING FUND BALANCE AVAILABLE FOR APPROPRIATIONS 400,000 511,168 111,168 $ 708,000 $ 846,240 $ 138,240 Budgeted (Over) Under Appropriations Actual Budget EXPENDITURES: Pipeline extensions $ 128,000 $ $ 128,000 UNAPPROPRIATED ENDING FUND BALANCE 580,000 Total $ 708,000 This schedule is prepared on a budgetary basis to conform with the Minimum Standards for Audits of Oregon Municipal Corporations. 15 SOUTHEAST WASHINGTON COUNTY JOINT WATER AGENCY CAPITAL PROJECTS RESERVE FUND SCHEDULE OF REVENUES AND EXPENDITURES for the six months ended December 31, 1993 Over(Under) Budget Actual Budget REVENUES: Interest $ 10,000 $ 11,733 $ 1,733 OTHER FINANCING SOURCE: Operating transfer from General Fund 300,000 300,000 Total revenues and other financing source 310,000 311,733 1,733 BEGINNING FUND BALANCE AVAILABLE FOR APPROPRIATIONS 318,000 313,294 (4,706) $ 628,000 $ 625,027 $ (2,973) Budgeted Appropriations UNAPPROPRIATED ENDING FUND BALANCE $ 628,000 This schedule is prepared on a budgetary basis to conform with the Minimum Standards for Audits of Oregon Municipal Corporations. 16 SOUTHEAST WASHINGTON COUNTY JOINT WATER AGENCY RECONCILIATION OF REVENUES AND EXPENDITURES TO THE STATEMENT OF INCOME for the six months ended December 31, 1993 Systems Capital Development Projects General Fund Fund Reserve Fund Combined Revenues $ 2,295,666 $ 335,072 $ 11,733 $ 2,642,471 Expenditures 1,600,669 1,600,669 Excess of revenue over expenditures $ 694,997 $ 335,072 $ 11,733 1,041,802 Salaries, materials and capital outlay capitalized 160,444 Developers'contributions capitalized 359,139 Depreciation (267,084) Contributions: Contribution of fixed assets from developers (359,139) Meter installations (583,071) Decrease in unbilled water sales (32,322) Increase in accrued vacation payable (18,431) Net income(page 5) $ 301,338 This schedule is prepared on a budgetary basis to conform with the Minimum Standards for Audits of Oregon Municipal Corporations. 17 SECTION III AUDIT COMMENTS AND DISCLOSURES REQUIRED BY STATE REGULATIONS .w w AUDIT COMMENTS AND DISCLOSURES REQUIRED BY STATE REGULATIONS Oregon Administrative Rules 162-10-050 through 162-10-320 of the Minimum Standards for Audits of Oregon Municipal Corporations, prescribed by the Secretary of State in cooperation with the Oregon State Board of Accountancy, enumerate the financial statements, schedules, comments and disclosures required in audit reports. The required statements and schedules are set forth in Sections I and II of this report. Required comments and disclosures related to our audit of such statements and schedules are set forth following. 18 AUDIT COMMENTS AND DISCLOSURES I. INTERNAL ACCOUNTING CONTROL: In planning and performing our audit of the financial statements of Southeast Washington County Joint Water Agency for the six months ended December 31, 1993, we considered its internal control structure in order to determine our auditing procedures for the purpose of expressing our opinion on the financial statements and not to provide assurance on the internal control structure. Our consideration of the internal control structure would not necessarily disclose all matters in the internal control structure that might be material weaknesses under standards established by the American Institute of Certified Public Accountants. A material weakness is a condition in which the design or operation of the specific internal control structure elements does not reduce to a relatively low level the risk that errors or irregularities in amounts that would be material in relation to the financial statements being audited may occur and not be detected within a timely period by employees in the normal course of performing their assigned functions. However, we noted no matters involving the internal control structure and its operation that we consider to be material weaknesses as defined above. This report is intended solely for the information and use of the Board of Directors, management, others within the organization and the State of Oregon Secretary of State, Division of Audits. II. OTHER COMMENTS AND DISCLOSURES: We have audited the financial statements of Southeast Washington County Joint Water Agency as of and for the six months ended December 31, 1993, and our report thereon is included on pages 1 and 2 of this report. Our audit was made in accordance with generally accepted auditing standards and the Minimum Standards for Audits of Oregon Municipal Corporations and, accordingly, included such tests of the accounting records and such other auditing procedures as we considered necessary in the circumstances. 19 AUDIT COMMENTS AND DISCLOSURES, Continued II. OTHER COMMENTS AND DISCLOSURES, Continued: In connection with our audit, nothing came to our attention that caused us to believe the Agency was not in compliance with: • ORS 294.305 to 294.520 in the preparation and adoption of its budget for the six months ending December 31, 1993, • the cost accounting guidelines developed by the State of Oregon Executive Department with regard to the Agency's cost accounting system, • ORS 294.035 in the investment of public monies, • ORS Chapter 295 in the collateral requirements for public fund deposits, • ORS Chapter 279 in the awarding of public contracts and the construction of public improvements. However, it should be noted our audit was not directed primarily toward obtaining knowledge of noncompliance with such requirements. 20 AUDIT COMMENTS AND DISCLOSURES, Continued II. OTHER COMMENTS AND DISCLOSURES, Continued: Additionally, we make the following other comments: • We found the Agency's accounting records to be adequate for audit purposes. • We reviewed the Agency's insurance and fidelity bond coverage at December 31, 1993 and ascertained such policies appeared to be in force. We are not competent by training to state whether the insurance policies, covering Agency-owned property, in force at December 31, 1993 are adequate. COOPERS & LYBRAND By W�UG G Brent A. Macey, a partner Portland, Oregon April 8, 1994 21 CITY OF TIGARD MEMORANDUM OREGON CITY OF TIGARD, OREGON TO: Intergovernmental Water Board Members FROM: Ed Wegner DATE: July 29, 1994 SUBJECT: Reschedule of 8-13-94 IWB Meeting After speaking with Murray Smith and Associates and per my telephone conversation with Chairperson, Peggy Manning, we have decided to reschedule the regular business meeting of the IWB from August 13 , 1994 until August 17, 1994. The firm of Murray Smith and Associates needed some additional time to prepare their report and they will be in attendance at the August 17, 1994 meeting to provide that information to the Board. If you have any questions, feel free to contact me at 639-4171, extension 396. kathyM wb\reached 13125 SW Hall Blvd., Tigard, OR 97223 (503) 639-4171 TDD (503) 684-2772 yon rrAO,,lw -' sena �w��d t6 C.'C'i� ?p Sw S ' .7 F�14 REGIONAL WATER SUPPLY PLAN Portland Metropolitan Area June 22 , 1994 PARTICIPATING WATER PROVIDERS Mr. Ed Wegner City of Beaverton City of Tigard Water Department Canby Utilities Post Office Box 230000 Board Tigard, Oregon 97281-1999 Clackamas Water District Dear Mr. Wegner: City of Gladstone Clairmont Water Attached you will find the most recent version of the District policy objectives piece that we have been working on Damascus Water for the Regional Water Supply Plan project . The goal District at this point would be to share this document with your City of Fairview policy bodies and elected officials as you deem City of Gresham appropriate to get their feedback, thoughts, comments, City of Hillsboro, suggested revisions, additions . The piece can be used "'ilitiesCommission to provoke some thinking about water supply issues from 'qty of Forest Grove P g pp y City of Lake Oswego your own jurisdiction' s perspectives . The objectives City ofMilwaukie can be used to stimulate discussion about the Mt.Scott Water objectives themselves as a statement of the important District issues regarding water supply and to hone in on those Oak Lodge Water issues that are of particular concern to your decision District makers and stakeholders . City of Portland Raleigh Water The policy objectives are very important to the District completion of the Phase 2 planning process because they Rockwood Water will be used to guide the formulation of integrated City of Sandy City of Sherwood strategies y water supply strate ies and will form the basis of South Fork Water measurable evaluation criteria against which future Board, water resource strategies will be assessed. In many (City of Oregon City ways, the policy objectives are the "engine" that City of West Linn) drives the planning process . Tigard Water Dist. City of Troutdale The policy objectives are meant to represent the City of Tualatin range of values held throughout the region not a Tualatin Valley statement of consensus . Therefore, some will be Water District complementary while others will compete or may actually West Slope Water in conflict with each other (in terms of satisfying them District y g City of Wilsonville to varying degrees) . The idea for this piece was to City of Wood Village represent what citizens, stakeholders, as well as water providers believe to be important in how this region meets its future water supply needs . It is Regional Water Supply Plan Project, 1120 S.W.5th#601,Portland, Oregon 97204-1926 (503)823-7528 Participants Committee Regional Policy Objectives June 20, 1994 Page 2 important that this set of objectives represent as broad a range of views as exists in the region. Otherwise, we risk not addressing legitimate concerns which we will have to address later, after we have completed most of the work. For that reason the policies have been formulated based on not only the expertise of the water provider participants but also the feedback gained from the last couple of years in reaching out to other stakeholder groups. The Steering and Participants Committees have engaged in an intensive collaborative process to develop this set of policy objective statements . This process has also incorporated the input of the Water Services Leadership Group and some other advisory bodies specific to this process. The policy objectives have gone through many iterations, which has resulted in a much better focus on what is truly important to the region in evaluating alternative resource strategies . Some of you have already begun to share these objectives with your decision making bodies. Now is the time to engage whatever groups, individuals, or bodies that you feel is appropriate. The intent would be to use this set of objectives to stimulate discussion about both the objectives themselves as a statement of the range of values regarding water supply issues and to hone in on those values that are of particular concern to your decision makers and stakeholders. Any suggestions for revisions or additions to the policy objectives should be given to either myself or Gary Fiske and once these are compiled the Steering Committee will recommend changes to the Participants Committee. We would like to complete this review pr-ocess==by September of this year. �- Sincerely Yours, S J-J'� Lorna Stickel Project Manager Attachments �i1rr+; ENVIRONMENTAL IMPACTS ■ Minimize the impact of water resource development on the natural and human environments. For purposes of discussion and analysis, the distinction between the two-is described as follows: The natural environment includes but is not limited to the following areas: - Fisheries - Wetlands - Threatened & endangered species - Wildlife - Water quality - Geotechnical hazards The human environment includes but is not limited to the following areas: - Cultural and historic resources - Land use compatibility for facility siting - Recreation - Scenic resources - Hazardous waste and waste discharges NOTE: All of these impacts are those that remain after mitigation efforts. The cost of environmental mitigation will be reflected in the "economic costs" policy area. GROWTH ■ Be consistent with Metro's regional growth strategy and local land use plans. FLEXIBILITY TO DEAL WITH FUTURE UNCERTAINTY ■ Maximize the ability to anticipate and respond to unforeseen future events or changes in forecasted trends. liwwl 3