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10/11/1995 - Packet . 1_ Fik Cc; INTERGOVERNMENTAL WATER BOARD MEETING MINUTES AUGUST 16, 1995 BOARD MEMBERS PRESENT: Bill Scheiderich, Paul Hunt, Beverly Froude, Peggy Manning and John Buidhas STAFF PRESENT: Ed Wegner, Randy Volk, Mike Miller and Kathy Kaatz VISITORS PRESENT: Jack Polans and Steve Feldman 1. Call to Order Meeting was called to order at 5:34 p.m. 2. Roll Call Roll call was taken and all Board Members were present. 3. Visitor's Comments Jack Polans of the City of King City spoke regarding the minutes from the June 14 meeting of the IWB and the Oregonian article. Mr. Polans stated that he had attended the City Council meeting of the City of Lake Oswego last evening and questioned them regarding this article. Mr. Polans stated that he had spoke with Mr. Leland from the State Health Division and questioned the report. Mr. Polans did receive copies of the report from Mr. Leland (pages 882- 886). Mr. Polans stated that Mr. Leland will provide him with the full report, press releases as well as names of people he can contact in Washington D.C. This is the information that was provided to the City of Tigard and the City of Lake Oswego by Mr. Polans. 4. Approval of Minutes A motion was made by Paul Hunt for approval of the minutes of the June 14, 1995 meeting as written, which was seconded by Peggy Manning and voted upon unanimously. 5. Easement - Mike Miller Mike Miller discussed a request from the State of Oregon regarding an easement across the property frontage of the Tigard Water District. They are requesting an estimated 300 square foot to accommodate a bike and pedestrian walkway access along Hall Blvd. The crossing needs to be perpendicular at the railroad tracks which will require an easement on this property. According to the IGA, this property has been divided among the various members (Durham, King City, Tigard and the unincorporated area), Mr. Miller stated that they would need a consensus from this Board allowing the State this easement. The State of Oregon is willing to pay $550.00 (fair market value, which was determined by an independent assessor). The Tigard Water District Board has already approved this easement and with this Board's approval will be forwarded to the Tigard City Council. Commissioner Scheiderich questioned the possibility of negotiation in the amount of money or the possibility of the contractor making further improvements? Mr. Miller stated that our improvements on the property are complete. Chair Scheiderich stated that this work should be completed at the State's initiative and expense. Mr. Miller stated that since the property has not been transferred, this motion would need to be made on behalf of the IWB. A motion was made by Paul Hunt to recommend to the City of Tigard that they act on behalf of the Intergovernmental Water Board to grant an easement to the State of Oregon as requested. This motion was seconded by Bill Scheiderich and passed unanimously. Commissioner Hunt questioned whether this Board should in the near future discuss the properties such as this building and whether the City of Tigard should purchase this property or some of the facilities that are being used by the City for non water uses? Chair Scheiderich stated that most of the uses of this building are being used as public space. Mr. Hunt continued to discuss what the other entities feel is fair and equitable. Mr. Scheiderich stated that possibly the staff should give direction to determine whether any portion of this building or other properties are surplus to the actual means of the Water District or the entities served by the Water District. Commissioner Froude stated that included in the audit was the agreement that the parties would pledge their share of the use to the Water building? If this has changed then Ms. Froude felt this should be discussed. Mr. Scheiderich stated that he was unsure whether this Board had the authority to direct the Water District staff but could recommend that Tigard City Council on their behalf direct staff to come back to the Board with an informal report on what property they deem to be surplus. Commissioner Manning stated that if the building and it's purposes are for Water business, there is the IGA to go by and any other uses would need to be agreed upon by the members of the IGA and come before the IWB for approval. IWB MEETING MINUTES - AUGUST 16, 1995 PAGE 2 Ms. Froude stated that last year it was necessary for the Tigard Water District Board to meet on occasion in another area to accommodate the Interfaith Shelter. Mr. Hunt stated that there is a plan to continue the use as a shelter again this year. At this time, Mr. Volk stated that the City of Tigard is also using this building and parking lot for the Saturday Market which is an exclusive City of Tigard use. Mr. Volk stated that the Board may feel that the City of Tigard is taking advantage of this facility's use. Commissioner Froude also discussed the use of the building on a daily basis being used by the Finance Department, not Water employees. Mr. Volk also stated that the Canterbury facility is used primarily by the Maintenance Services Department and these areas are not available to the City of King City or the City of Durham. Commissioner Manning requested that the staff prepare a schedule of use to include the percentage of use and how much is being used for water purposes versus City of Tigard usage. Mr. Hunt also stated that a part of this report should include what the Water District use of other City facilities are. A motion was made by Chair Scheiderich to ask the Water District to direct it's staff to survey the uses of property, (real estate) that is generally assigned to the Water District purposes. This motion was seconded by Peggy Manning and voted upon unanimously. It was stated that this survey would be complete by the September meeting. 6. Water Rules, Rates and Regulations Mr. Volk questioned whether the Board had any questions on the Rules, Rates and Regulations? Mr. Volk stated that he had spoke with Beverly Froude today and they had discussed one change being made to item 12.10.070 - Credit for Leak. Mr. Volk stated that this had been discussed at a previous meeting and additional language needed to be added to state that any request over the $165.00 is to be brought before the Board for consideration. Mr. Volk stated that Ms. Froude would also like language added that if there is a grievance or if the customer is still dissatisfied, they would refer to item 12.10.260 - Grievances. With the Board having no further comments, Ed Wegner questioned whether the Board had reached a consensus to send this document on to the Tigard City Council for adoption minus"the rates until the rate study is complete? It was discussed that once the rate study was approved this would be put together as one document. Mr. Scheiderich questioned the status of the rate study? Mr. Wegner stated that Mike Miller had met with Wayne Lowry and the consultant a couple of weeks ago and are moving ahead. Mr. Wegner stated that they should have a preliminary report by mid September. IWB MEETING MINUTES - AUGUST 16, 1995 PAGE 3 7. Director's Report Mr. Wegner stated that included in the packet distributed to the Board was the month of July report, by date which outlined a tracking of water purchases (Lake Oswego, Bull Run, Tualatin Valley), includes the wells, water purchased or produced, water storage and water demand. We will continue to produce these reports through the summer. This reflects the purchases from TVWD which is currently up to 1.7 mgd. through the Baylor intertie. Also included in this packet were some articles from the West Linn Tidings and the Lake Oswego paper with the issue of the Lake Oswego water treatment facility being within the city limits of West Linn. There have been some concern on approval on the Lake Oswego plant expansion in West Linn. Mr. Wegner, Mr. Volk and Mr. Monahan will be visiting West Linn tomorrow. Also in packet are the Regional Water Supply Plan minutes for the past two months. Mr. Wegner also discussed the large packet of information that was provided to the Board on the Regional study. Mr. Wegner stated that by the end of the month there will be a draft copy of the Regional Plan. He stated that on June 22, Beverly Froude and himself attended a public forum which included some position papers which were also supplied. Also included in this large packet was a report by McArthur and Associates of a synopsis of the public hearings that were held within the region. Commissioner Manning suggested that next month the Board members can go through this information provided and come back with any questions. 8. Discussion - Letter Mr. Wegner stated that he had received a letter from Mr. Robert Moore who experienced a water break which was taken care of in a timely manner by emergency repairs. Mr. Moore had a large bill from the break as well as a large repair bill and would like to recoup some of the water costs. Mr. Moore was credited with the allowable $165.00 credit on his account but he choose to go through the process of bringing this issue before the IWB. Chair Scheiderich questioned whether the average use was confirmed, which it was. Mr. Scheiderich also questioned how this leak occurred? Staff was not aware of how this leak occurred. Commissioner Hunt questioned what the outcome of the last request was a few months ago? After some discussion and looking into the previous minutes (March 1995) it was stated that they had given her full credit. Mr. Hunt stated the need for consistency in these issues. IWB MEETING MINUTES - AUGUST 16, 1995 PAGE 4 Chair Scheiderich recommended that we split the difference of the excess ($702.00 minus the average usage and half the difference). The customer would pay for his average usage and then half of the excess usage. Although the Rules, Rates and Regulations outlines the process with $165.00 being the maximum allowable, Mr. Scheiderich stated that these exceptions should come before the Board for approval. Mr. Volk stated that if an employee is called out after hours and the leak in on the side of the customer, the employee will fix that leak while they are there. Commissioner Hunt made a motion to grant relief as requested which is to split the difference that is over the average usage. This was seconded by Commissioner Froude and voted upon unanimously. The Board discussed adjusting the language in the Rules, Rates and Regulations to grant half with a no fault circumstances, over the average usage with the approval of the IWB. The relief granted to Mr. Moore will be $702.17 less his average usage and a split of the difference. Chair Scheiderich questioned whether the Board would be ruling on the request from KOIN TV that was furnished by Mr. Volk? Mr. Volk stated that he had received a request from KOIN TV to install a camera at the Baylor Street location. Chair Scheiderich stated that he felt this request would be ok with the condition that it does not interfere with any telemetry and that all initiative and expense be on the part of KOIN TV. Discussion was held on the possibility of a bond. Mr. Volk stated that this would be connected to the ladder which is four feet out from the actual reservoir and extends only slightly below the crown of the roof. The Board discussed the chance of damaging any portion of the reservoir, endangerment to someone on the ladder, or security or accessibility to the site. Mr. Wegner stated that KOIN TV would be responsible for meeting design criteria and would have the appropriate insurance to ensure workmanship and for the equipment. Chair Scheiderich stated that this should be short term agreement. A motion was made by John Budhihas and seconded by Bill Scheiderich to allow KOIN TV to mount a sky camera above the Baylor Street reservoir. This passed unanimously. IWB MEETING MINUTES - AUGUST 16, 1995 PAGE 5 9. Commissioner's Comments With no further comments the next meeting was set for September 13, 1995. Mr. Wegner stated that the Tigard Water District Board had agreed to meet bi- monthly beginning in September and their new Chairperson is Norman Penner. Commissioner Hunt suggested that if the Chairperson and the staff agree there is no need for a meeting, with proper notification to the Board members would be appropriate. Mr. Wegner also stated that the Tigard Water District Board proposed that we take a tour of the various water facilities on a Saturday morning. A specific date has not been set at this time but possibly mid September. 10. Adjournment A motion was made to adjourn by Commissioner Manning and seconded by Commissioner Hunt at 6:35 p.m. and passed unanimously. kethy\iwb\8-16mtg.min IWB MEETING MINUTES - AUGUST 16, 1995 PAGE 6 Memorandum City of Tigard, Oregon TO: Intergovernmental Water Board FROM: Wayne Lowry, Finance Director Ed Wegner, Maintenance Services Director DATE: October 3, 1995 SUBJECT: Water Study Contract In May 1995, the I ntergovem mental Water Board (IWB) heard presentations from three Consultants to perform a study of Water rates. The IWB recommended the selection of CH2M Hill at a cost of $20,750. The Council then approved that recommendation in June 1995. In August, it was learned that both employees with CH2M Hill assigned to our study were leaving the firm and that very little progress had been made on the project. In reviewing the options, we spoke with Economic and Engineering Services (EES) which was the runner up firm in the selection process. They were willing to step in and complete the study and reduced the cost of their proposal to $24,590. We have attached a copy of the EES refined scope of work and cost proposal for your review. This issue was discussed with the Council on September 12, 1995. Council gave direction to review the replacement staff suggested by CH2M Hill. We have therefore asked CH2M Hill to have their representatives present at the October 11, 1995 meeting of the IWB to make a presentation. CH2M Hill proposes to replace the original staff of David Hasson and Debra Davis with Eric Rothstein and Robert Tomlinson. This will give the IWB an opportunity to assess their confidence in the replacement CH2M Hill team and their ability to complete a quality study of Tigard water rates. We have attached copies of their resumes for your review. If the IWB is satisfied with CH2M Hill's newly assigned staff, we will move ahead with the project with CH2M Hill. If the IWB recommends cancellation of the CH2M Hill contract and award of the contract to EES, the issue will be scheduled on the next available City Council agenda for final action. If you have any questions about this issue before the meeting next week, please call Wayne at 639-4171 ext. 345 or Ed at 639-4171 ext. 396. Robert I Tomlinson Economist Distinguishing Qualifications • Financial management experience in rate and impact fee development for municipalities and utility districts • Experienced in successful interaction with citizen advisory committees and elected officials • Expert witness testimony in electric, gas, telecommunication, water, and wastewater rate proceedings Related Experience Mr. Tomlinson serves as project manager and project economist for a wide range of economic projects, including utility rate and financial planning studies, system development charge studies, economic and financial feasibility analyses, and demand studies. Mr. Tomlinson has participated in numerous utility rate studies and has presented expert testimony in electric, gas, telecommunication,water, and wastewater rate proceedings. Representative Projects Mr. Tomlinson-is managing a wastewater rate and system development charge (SDC) study for the City of Wilsonville, Oregon. The current project updates wastewater cost of service analyses from a previous study that included both water and wastewater rates and SDC studies. Mr. Tomlinson has worked extensively with a citizens' advisory committee to develop alternative rate structures that are equitable for all customer classes. Mr. Tomlinson is currently the project manager for a laboratory. analysis fee study for the Clackamas County Department of Utilities. This cost of service analysis includes determination of the labor, materials, equipment, and facility costs associated with the lab tests it conducts for the various sewer districts associated with the Clackamas County Department of Utilities. Mr. Tomlinson recently managed a wastewater rate and system development charge study for the City of Woodbum,;Oregon. The project included analysis of various sewer rate structures and participation with a citizens' advisory committee on the development of the cost of service rate methodology and alternative rate designs. Preparation of a financial feasibility analysis for the City of Portland's Bureau of Environmental Services, for a $250-million revenue bond issue. The bond, which is to be used for wastewater system improvements, was the largest construction-related bond ever issued in Oregon (as of 1994). He evaluated the bureau's financial operation and budget forecasts to determine whether debt service coverage would be adequate in the future. Robert I Tomlinson Mr. Tomlinson was assigned to the City of Los Angeles' Wastewater Program Management Division offices on a full-time basis for more than 4 years. This $5 billion wastewater facility upgrade and expansion program was a joint venture between CH2M HILL and the City of Los Angeles. Mr. Tomlinson's responsibilities included developing financial policies for the wastewater utility, analyzing capital improvement program financing; developing customer tariff schedules; and coordinating all contract agency meetings and workshops. For CH2M HILL INTERNATIONAL, LTD., Mr. Tomlinson was a financial specialist on an institutional support contract with the Cairo, Egypt, Wastewater Authority. The utility's goal was to become quasi-independent and decrease subsidies from the central government. Mr. Tomlinson managed the financial viability tasks,conducted a revenue and cost analysis with a goal of full cost recovery within 3 to 5 years; developed a 5-year financial plan; and assisted development of a computerized accounting system. As an employee of the Denver Water Department (DWD),Mr. Tomlinson was responsible for the development of retail and wholesale customer rate designs. The DWD wholesaled water to 44 outside city water districts which includes most of the Denver metropolitan area. For the utility's capital improvement program, Mr. Tomlinson was responsible for population and demand forecasts, long-range financial analyses, cash-flow analyses, bond and debt projections, and projections of rate impacts. Participation in water and wastewater rate proceeding for the City of Rio Rancho, New Mexico, an intervener, before the New Mexico Public Utilities Commission. Mr. Tomlinson presented expert testimony in the areas of rate of return, rate design, and the utility's corporate structure and equity financing. Participation in water and wastewater rate studies for the Albuquerque Utilities Corporation in Albuquerque, New Mexico. Mr. Tomlinson prepared a return-on-equity analysis using a discounted cash flow methodology to determine a reasonable rate of return for the water and wastewater utilities. The corporation used these findings in its request for increased rates to the New Mexico Public Service Commission. Education M.S.,Economics, Colorado State University B.S.,Mathematics/Computer Science, Colorado State University Membership in Professional Organizations American Water Works Association National Association of Business Economists Pacific Northwest Pollution Control Association Water Environment Federation 08/30/95 14:51 CH2K HILL IMD04/OD5 Robert J. TQJ<littJ nson. Economist Educakorc M.S.,Economics, Coloiado State LTniv+etsity ' B.S.,Math/C'omput w Science, Colorado Sithe 1Uuiv&•sity ,l�cperdeace Mr. 'romlinson is a sensor e=omist with mare than 13 years of expedence, in financial m .Wrr eM regulatory and natural resource econormics;utility rate design,budgeting, and accounting;economic irmpact ama�lysis;and economic,financial,and bond fe 1'bft analyses. He has presented expert testimony in electric gas, and telocammunication carte proceedings- Mr. Tomlinson is currently coodueft a water and sewer rate study for the City of VrLhonvMr,Oregon,and a cash suf icieUcy atdy fm the Clainucmt WdW District of O1te9*n City, C7r+agti m He has evaluated the district's proposed budgets,ca*tat irnpmvetnent plans, and source of finds to emsare revenue adequacy for the dbftic t- He has also patiicipated in a wastewater race classification M*sb for the City of Portland In addition,W.ToMIJI son is mmaging a water system development charge study and a waste system d8v1810pmeaat charge study for rile City of Gmshatn, Oregon. Whas anatyzed the city's capital impx+aysement pba and fined assets to determine both the cast of capacity in the existing system and the incre nUd cow of expandon capita]pa*ct r- Recently for aum Hila.INTmNATioNAL„Mr.Tomlinson served as a financial specialist on an institutional sti►ppatt const-act for the Cairo,P..gypt,'Wasft-. a ter Authodty. The ntiUty's goal is to become a quasi indeWadent utility and degrease the current subsidies it rete m -f om the central.government. Mr.Tampon managed ft financial viabitity tasks forthe uh11ty. His r+esponsimities inched conducting a revenge and.cost analysis with a gel of full est recovery vAthin-3 to 5 years;developing emd impiememtmg it 5-year fi nmcht plan; and assisting in the development of a comput tined utility Ming 50�eft He garticipatad in a watur and wastewater rate proceeding for an inoxveaer before the New Akxico Public-Utilities Commission- *presented expert testimony in the areas of rate of return, rage design,..and tate utility's corporate stmam and equiLy fin •. W. Tomlinson was assigned to the Coity of los Angeles WaMwater Progr m Managemw Division offices on a full-time basis fart mom than 4 yam. This C12M HILL Project is an ongoing joint venture with the City of Los Angeles for the maaagemmot of a $5 billion wastewater facility upgrade and expansion program. Mr. Tomlinson was responsible for fmanciai policy &we'loptnent for the city's wasunvater charge system. His Wks included t analysis of the capital improvement program fi n8 and new custameir-tanff schedules. r �enxtsc�a-wps' f . ..,..�� •11`•" X1005/005 Robert I Tomftson W. Tomlinson was also the city's coordinator for all eonwAa agency meetings and worlmhops. Mr. Tomlinson was assigaed to a CWM HILL project team that malyzed various water supply and wastewater alternatives for Mem Matrauh, EZYPL Mersa Matrouh, the governorate in the northwest corner of P,gypt, is faced with the challenge of limited water resources. Mr. Tomlinson reviewed the local waberr and wasicwater utility Menow, costs, and,rate mss. He also provided a financial analysis of the various waaer UPPIY alternatives avadW*for the region and developed a cost-of-serom rate,model for fame rate updafin& j As an employee of the Denver Water Deft, he was responsible for the fLanciai analysis of a. major water supply pra}ect and customer rate analysis. His respond included the loug-ranges finalcial analysis; cash flow analysis; bond and ddt prnjecdow; demand pmjec&=;and castomer rate impacts of the chart' y's capital,iWwvement program. W.Tou ttson also has provided ti almogy before the Wyoming Public Service Cominissioa, both as an expert wiums for an fndusuy ve ner and as a coionm inion staff nwadW He specialmd in cost-of-cagrtal and sem-of-mtutu analysts is a la=i,gas,and teleca�pnmunical tioat rate.proceedings+as wen as east-of-se ndoe,mw design,and monomic impact anaiyses. Membership in Prufe cheat Orgaar a&ns American Water Wofs Association California.Water Pollution CbnUvI Assoeiatition Natimal Association of Business EcOGOMAM Waw Bavhv=wew Federation i PDXtiC14.VMI I Eric P. Rothstein, CPA Senior Economist Distinguishing Qualifications P Expert in water and wastewater utility economics NO, Hands-on financial management experience from the municipal perspective in rate development,evaluation of alternative capital financing options,and integrated resource planning Nationally recognized rate,public involvement,and conservation program expertise, including participation on American Water Works Association's Rates and Charges and Water Conservation Program Planning and Evaluation Sub-Committees Related Experience Mr.Rothstein, a senior economist, specializes in water and wastewater utility finance, rate design, integrated resource planning, and the application of decision analysis techniques to financial issues. Mr. Rothstein has participated in numerous rate studies, including most recently work for East Bay Municipal Utility District in Oakland, California, the City of Idaho Fails, Idaho, and the City of Colorado Springs, Colorado. Mr. Rothstein is currently project manager on rate studies for the cities Of McMinnville, Oregon and Sedona, Arizona.. He is also providing decision support services for several projects that include financial evaluations of alternative project financing options including privatization. Previously, Mr. Rothstein served as utilities finance manager for the City of Austin, Texas. In this capacity, he directed a technical staff of eight in utility ratemaking and finance, financial reporting, internal control evaluation, and revenue forecasting. His financial analysis responsibilities included evaluation of regionalization alternatives, proposed utility investments, capital financing options, and alternative rate designs. Financial reporting responsibilities included development of monthly fund summaries, budget development and tracking, and review of GAAP-basis financial statements. His internal control evaluation responsibilities included both financial and performance audits. Representative Projects As project manager, Mr. Rothstein directed the City of Austin's water and wastewater utility cost-of-service rate setting and implementation. Project work included extensive public information efforts, hourly water demand monitoring, billing system modifications, and technical analysis of revenue requirement allocations. Other contracts with the city for which Mr. Rothstein provided project management are as follows: — City of Austin Water and Wastewater Utility rate consultant, 1993 — City of Austin Water and Wastewater Utility capital improvement plan process improvement study, 1993 — City of Austin Water and Wastewater Utility hourly demand monitoring sampling plan and data analysis, 1989-1993 City of Austin Water and Wastewater Utility line maintenance productivity study, 1991-1992 During a 3-year tenure as division manager of the City of Austin Resource Management Department, Mr. Rothstein directed a staff of 22 employees in financial and personnel management, computer system services, and planning and evaluating energy and water conservation programs for commercial, multifamily, single-family residential, and low-income sectors. Initiated the City of Austin's electric Integrated Resource Planning effort through project management of its 1987 "Technical Audit of Demand-Side Management Programs" and work supported through a U.S.Department of Energy Integrated Resource Planning grant to develop load shape impact curves of energy conservation programs. Publications "Applications of Decision Analysis Techniques to Water Conservation Program Planning", Proceedings of the American Water Works Association CONSERV'96 Conference, January 1996, forthcoming. "Benefit/Cost Evaluation of Water Conservation Programs", Proceedings of the American Water Works Association CONSERV'96 Conference, January 1996, forthcoming "Public Involvement Strategies That Work" with Elaine Jones, Operations Forum, vol. 11, no. 6, (June 1994) pp. 10-13. Also published in Proceedings of the Water Environment Federation 66th Annual Conference-and Exposition, vol. 8 (October 1993), pp. 137-144. "Public Involvement Strategies for Water Rate Change Acceptance" with Elaine Jones, Journal AWWA. vol. 85, no. 11 (November 1993) pp. 47-53. Also published in Proceedings of the American Water Works Association Annual Conference and Exposition, June 1993, pp. 41-57. An abbreviated version published as "Raising Rates: Involving the Public". Public Works.February 1994. "Summer Water Demand Patterns in a Southwest City", Proceedings of the American Water Works Association CONSERV'93 Conference December 1993, pp. 1491-1516. "Balancing Interests of Wholesale and Retail Customers in Utility Ratemaking" with David S. Hasson, Ph.D., Proceedings of the American Water Works Association Annual Conference and Exposition. June 1993, pp. 541-556. "Water Demand Monitoring in Austin, Texas", Journal AWWA vol. 84 (October 1992), pp. 52-58. "Time Differentiated System Load Impacts of Demand-Side Management: A Case Study", with Ken Monts, Ira Birnbaum, and Beverly Bonevac, Electric Power Research Journal, vol. 16, (1989), pp. 165-172. r . "Institutional Barriers to Data Collection and Demand-Side Management Program Evaluation: Practical Lessons in Political Economy", Proceedings of the 1988 American Council for an Energy Efficient Economy (ACEEE) Summer Study on Energy Efficiency In Buildings. August 1988, vol. 9, pp. 139-151. "The Demand-Side Management Audit - An Integral Step to Least-Cost Utility Planning" with Robert K. Camera, Proceedings of DSM Strategies in Transition - Third National Conference on Utility DSM Programs, (June 1987), pp. 34-1 through 34- I. Testimony Prefiled testimony in the matter of One Austin Capital, Inc., et. al. of City of Austin Ordinance No. 920903 Prefiled and oral testimony 'in the City of Austin Electric Utility Department's rate filings, January 29, 1988 and August 1, 1987. Prefiled and oral testimony in the City of Austin in the Public Service Commission of the District of Columbia's Case No. 834, Phase II: Application of Potomac Electric Power Company for Changes to Electric Rate Schedules, February 9, 1987. Certifications/Professional Licenses Certified Public Accountant Oregon, License No. 7998, June 1995 Texas, License No. 60341, September 1992 Education MA,Economics,University of California-Davis A.B.,Economics,Ripon College Membership in Professional Organizations American Water Works Association(member of Rates and Charges Sub-committee) Water Environment Federation(member of Financing and Charges Manual Sub-Committee) 08/30/95 14:50 CH2M HILL X1002/005 Eric p. Rothstein, C.P.A. wed MahWr Educadan M.A., EGAOmiCS, University of Califomia Davis A.B., Economics, Ripon College Experiewe f Mr. Rot aeK a senior economist. specializes in Qvater and water utility f ancibg rind { rate design: Mr.Rothstein has participated in nuimerous•raw etudiles,including mast recently i work for the City of Anaheim, Califom M the Lcenvitlle and 3effc n County MSD, Kentucky,and the East Bay Mu*dPOl Utility District is flakhmd,Caliifomia. Mr.Rothstein is cuntatly the Pewmanagerfor s,,aad solid waste rale studies for the City of Idaho Fa11s,Idaho,and=Want project mRnagor on a wastewater billing determinants study for the 1 • City Of Colorado Springs, Colorado. previously,W.Rothstein was utMes finance manager for do Qty of Austin,Texas. In this � capacity, }e, &ODW a technical staff of eight in utility vasmak:ing and finanim, financial reporting, internal control evaluation; and revenue fare UM& • IRS finsocxal arAalysis l respo�ibilina included evaluation of system devvlopmeot charges, proposed utility inerts, capital financing options, and almmative rafts desmons. Financxal x+eP ng 'bi$ties included development of monthly find summaries;budget development and tracking; and review of GAAP-basis financial stammenm. Plies ba=d control evaluation respo.nsibili&s included both financial and performance audits. As project manager,Mr. Rothstein.dined the Chy of Austin's water and wastewamer utilitY cost-of-s� rate man and imglementatiOn- prrqect work indudod extensive public infaoao�ation efforts, houxly waw demand mouitorwg, billing system modifi�oas, and technical anWysis of revenue requirement allocations. other contras with the city for which Mr. Rothstein pr vided pl*a ulanagcm=t are as follows. ' City of Austin Water and Wastewater Utility rate consoltnnt, 1993 City of Austin Water and Wastewater Utility capital iatpravement pun process improvement study, 1993 • City of Austin Nater and Wastewater Utility hourly demand monitoring sampling plan and data analysis, 1989-1993 Pp7C15sF3.� 08/30/05 14:50 V CH2X HILL IJ 003/005 Erik P. R6thstein • City of Austin Nater MW Wastewater Utility line maintenance.productivity study, 1991-1992 During a 3-Year tenure as division maxager of the City of Austin Resotxtr..e Management . Diepart=14 Mr Rothstein directed a staff of 22 employws in financial and personnel managemeV�computer system services;and the planning and evaluation of energy and water conservation programs targeted to caommumal,multifam7y,sin1gk-f&MWY residential,and low- income sectors. Mairebershilt ra I'rofessi+aetari Urgaua�teons . Ammicam Nater Warks Association(mennber of Rates and Charges 5ubomxxmeium) Water Envixonrnent Federation (member of Financing sad(urges lmual Committee) Pabfec+ dow and Preseretaffons With Elaine Jones. Public Involvement Strategies That WmiL Dpsratioiuur Forum 11(6):101- 13. June 1994. Also published in Proceedings of the Water, EnvirOnmeret Federarian 66th 'Am uml Co4krenci a EUpositean 8:137-144, October 1993. With Elaine Jones. Public lhnvoivement Strategies for Waw%RM ChmW Aoc:eptsnce. .journal AWWA 85(11)-47-53. November 1993. Also puhlisbed in Proceedings of the American Water Works Association Anmal Co4erence ted Fjposition,pp.41-5y. June 1993. .An a0breviated version publisbed as: Raising Rags: Involving the Public,,Public Works. Febtaary 1994. Summer Water Demand Patterns in a Southwest City. Proceedings of the Americom Water Works Assocon's Ct?NSERV'93 Conference,Pp. 1491-1516. •Decesn6er 1993: With David S. Hasson, PhD. Balancing k tex+ests of Wholesale and Retail CWtomets in Utility Rawmddn& Proceedings of the Amnerfcrm Water Work)- Association Aur ud Conference and Eq�osition,pp. 541-556. Jame 1993. PDX156r3.WF5 09/11/95 11:25 FAX 206 451 8096 EES--Bellevue IM002/032 project Merrtornndurn To: Wayne Lowry,City of Tigard From: Tom Gould,EES Date: September 11, 1995 subject: Revised Water late Study Proposal Wayne- Please find attached our revised proposal to provide a water rate study for the City. You will note that the proposal is very similar to our previous proposal,but we have made some changes which have reduced the proposed casts_ Specifically,these changes include the following: El Eliminated my attendance at the initial project meeting;- Randy, as project manager will attend the meeting- This saved labor and airfare. ® Eliminated the educational session from the initial project meeting. This saved material preparation time for the meeting. ❑ Simplified the determination of growth rates within the revenue requirement model This saved labor and had no signiFicant impact upon revenue requirements_ ❑ Simplified the modeling process in re gard to the calculation of interest income. Rather than attempting to calculate interest income on ending cash balances, we will use City budgeted estimates and check to see-if they S= reasonable based upon current cash balances. The initial approach is more precise and technically correct, but interest income seldom has a major impact upon revenue requirements ❑ We have stated that the City will be required to provide data in the format specified by EES. In our initial proposal, we had provided time for EES staff to work with the City's data and re-format as required (e.g. - a thick computer printout that rids to be 5ummvzzed into some usable fashion for the study_) O We have stated a specific limit on the development of rate design options. We had no stated limit in our initial proposal. ❑ We eliminated written progress reports to the City's project manager- instead,We stated that we would provide verbal reports. U' We have provided two options for the presentation of the results- We talked about this approach,and we have pried the study both ways- 09/11/95 11:25 FAX 206 451 8096 EES--Bellevue 1003/032 in:.-A w�,o;-DMIA Study Pm,nnssl �91111�5 k''.►ge;d I hope this revised proposal meets the City's needs. We look forward to the opportunity to work with you on this project. If X can pmvida any'other information. please let me know. 09/11/95 11:28 FAX 206 451 8096 EES--Bellevue 4005/032 9 m 9% Economic and Engineering Services, Inc. .�.oy September 9, 1995 Mr. Wayne Lowry Finance Director City of Tigard 13125 SW Hall Burd. Tigard,OR 97223 Se�hjerts R.evige r o I For Coma rehens#v mater ate St v Dear Mr. Lowry: Economic and Engineering Services, Inc. (EES) is pleased to submit this revised proposal to the City of Tigard (City) to provide consulting services for the development of a comprehensive water rate study. Our proposal details the scope of services to be performed'for the City, a project time schedule and the project zees assaulted with the work. In addition, the qualifications of EES and its personnel to perform this study are listed. Given the opportunity to work on thus project, I arn confident that you will be pleased with the quality of work provided to the City, along with quality of persoiir�et assigned ou he p.��.�..�+ •,,� �1,n --pe%At11 .;4-,t *et reg,in0V to your needs Pind hope that the City I 2ipprVQa'tis lle lj;F u. arm., . Jr - a will provide us with the opportunity to assist the City. Should you have any questions regarding this proposal, Randy Goff or myself will pleased to help you. Sincerely yours; ECONOMIC AND ENGINEERING SERVICES, INC_ 'Phomas E. Gould Vice President TEGJdzr Enclosure 12o11 Bel-Red Road,Suioe 2111 Post Office Box 1989 ieLmie,mfiingmn 98005-2471 BeRevuOVashington 90409.1884 Teiephone206A31-901S Fax 206451.80% I Bcilevue• 0R mpia • Fortiand +vanrouver,B.C. •Washington,Uk 09/11/95 11:47 FAX 206 451 8096 EES--Bellevue Ijj018/020 City of Tigard Exhibit 5-2 PRO.� �TE� EIE 1r Option 2-Consolidated Meeting With Jurisdictions Randy Tom Angie Cheri k Task Offigriutianriutian. rda fLwu &ndm Bmdkuk Cleric Malt Hourly Bulling Rate 8105.00 $105.00 565.00 $W.OQ $40A0 1 Tx►i621_Projeet Meeting Hours 6 0 0 0 1 7 Labor Costs $630 $0 $0 $0 $40 $670 2 'Revenue Requirement Analy56s Hours 4 16 40 0 2 62 Labor Casts $420 $1.680 $2.600 $0 $80 $4,780 3 cost or Serviee Study Hours 4 24 40 0 2 70 Labor Costs $420 $2.520 $2,600 $0 $80 $5,620 4 Develop Rate Options Hours 4 12 .24 0 2 42 Labor Costs $420 $1,260 $1.560 $Q $80 $3,320 5 System Development Charges Hours 32 0 0 S 2 42 Labor Costs $0 $o $'484 $80 53,920 6A Written Report Hours 8 12 4 4 8 36 Labor Costs x$40 $1,260 $260 $240 5320 $2,920 6B Presentations Hours 12 0 0 0 6 18 Labor Costs $1.260 '$0 $0 $0 $240 $1,500 7 Computerized Models Hours 0 0 12 0 2 14 Labor Casts $0 $0 $780 $0 $80 $860 Subtotal 70 120 12 25 241 Hours Labor Costs $7-350 $6,720 $7,800 $720 $1,0000 $23,590 Plus=Expenses 1. GRAND TOTAL � Economic and Engineering Services,Eric. 24 City of Tigard Proposal City of Tigard Water Utility Rate Study CH2M HILL October 11, 1995 CH2M HILL Experience ♦ Over 200 rate studies ♦ 100 rate models ♦ 50 System Development Charge studies ♦ Expert witness testimony ♦ AWWA financial planning model ♦ AWWA committee membership Proj ect . Team. City of Tigard Intergovernmental Water Board ,'tt::#i:f:'sx.'�.:d`Z•:i?;�T S:F. 53Fff::SS*k"v}.'Sfut.�ri#... ffProffjectct Manager xP . Rothstein �;%` ., :•":•i+:•:•wFi..•:,"•,:;•;.;;.:::o:sr:•::x�c�.���.r%fx�'4Si .i :$3.uf.}#'o-'�x'3t"}�c:Ko:�.. '"'q. ^�;x�•ir�;6 :.�'��%•''x�`•>::•":•�:•`:�>:`•:::�i:`•3:� ::" Project Engineer Project Economists Bob Fuller Bob Tomlinson Toby L aFranc e x .r..w.. :s3��bt''"c:2:mw:�:::r�::2cf'-:i�•?.'•::6itiw::�� :••�`::".••:<:::::::':::r,,>%:�:'.•'' Project Manager Experience _ ♦ City of Austin, Texas rate manager ♦ AWWA Rates & Charges Committee ♦ Recent Rate Project Work: ♦ McMinnville, Oregon ♦ Sedona, Arizona ♦ Idaho Falls, Idaho ♦ East Bay Municipal Utility District, CA ♦ Anaheim, CA Project Economist _Experience ♦ 8 Years with CH2M HILL ♦ Previously with Denver Water Board ♦ Recent project '..work: + Wilsonville, Or, egon * Woodburn, Oregon ♦ Clackamas County Utilities Department, OR ♦ Gresham, Oregon * Idaho Falls, Idaho Study Objectives ♦ Adequate revenue to meet„ system costs ♦ Equitable Rates ♦ Conservation-oriented rate structure ♦ Fairness between current and future users o Consistency with Orgeon SDC laws ♦ Affordable rates and charges ♦ Public Acceptance Project Status ♦ Project management transition ♦ Project work ♦ Reviewed basic system data ♦ Begun rate model development ♦ Outstanding Issues ♦ Project scheduling ♦ Identify new or additional concerns ♦ Public involvement process 1 MEMORANDUM CITY OF TIGARD, OREGON TO: Ed Wegner FROM: Mike Miller DATE: October 11, 1995 SUBJECT: Facility Use This is a status update of the facility use survey that was requested by the IWB. Attached is a spreadsheet showing the Water Building, Operations and City Facilities, and the Canterbury building square footage's. Also under each heading is a listing of the current department occupancy or usage. Because of the overlapping responsibilities, it has been difficult to determine exactly the percentage of chargeable usage to a department. Additional time is necessary to evaluate all aspects of facility use. For example Human Resources and Risk Management is a City wide function which is head quartered in a city of Tigard owned building. Although the majority of issues are City wide, there are also specific Water Division matters that they handle. Chargeable time spent on water related issues, personnel or otherwise, is adjusted once a year during the budget process. Another area is Fleet operations. Fleet is now housed in the shop bays at the Water Building and spends approximately 70% of its time maintaining the Police fleet. The remaining 30% is divided up amongst the rest of the City's departments. If we are just talking about routine and preventative vehicle maintenance, the Water Divisions share would be less than 5%. However, with the size of the Water Division fleet a major failure of a piece of equipment will skew the percentages. Although we need additional time to complete the analysis, here are some of the preliminary findings: Canterbury Facility The Tigard Tualatin School District has lease agreement, originally with Tigard Water District, to utilize 1200 square feet of building area and additional outside area for their mini bus operations. City of Tigard utilizes a small portion of the upstairs offices at Canterbury for record storage. The rest of the shop area is utilized for storage of Maintenance Services equipment. Most of the equipment belongs to the Parks division, however some of the equipment is used to maintain water reservoir sites. Community Use Farmers Market utilizes the Water Building Auditorium and parking lot along SW Burnham Street on Saturdays from June 1 through October 31. The Farmers Market pays no rent, but has paid for additional electrical service. Severe Weather Shelter utilized the Water Building Auditorium for 71 nights during the 199495 fiscal year. They do not pay rent, although they do provide their own cleaning services. Other community usage's: City of Tigard Office Services is currently checking the registration list for out of house usage of the Water Building. This information should be made available sometime next week. In house usage is not tracked the same way as out of house usage's, plus the number of attendees are not tracked. No fees are collected for use of the Water Building, however, after November 1, 1995, certain uses will be charged a rental fee. One last item. Although the carpet in the Water Building Auditorium is in excellent physical condition, its appearance, due to food stains, is unacceptable. New carpet for the Water Building Auditorium will be purchased by the City Building Maintenance Fund. Sheet1 % SF Charged Adjusted SF Occupied SF to Water Charged to Water Water Building Water Operations 7,485.95 Fleet 3,036.58 Finance (A/P PR) 560.00 Finance (Customer Service) 1,152.18 Finance (Finance Director) 203.71 Finance (Accounting Mgr) 265.25 Copier/Mail/Printer room 252.88 Inside Conference room 217.00 Office Lunch Room 401.64 Vacant Office 195.00 Public Use 2,562.76 Halls, Mech. Rm., Gen. Rm 1619.05 Operations/City Facilities Maintenance Services Dir 195 Directors Sec. 175.5 Utility Manager 148 Operations Manager 126 City Administrator 204.35 Canterbury Leased Section (TTSD) 1200 City of Tigard-record storage and Maintenance Services equipment 2496 Page 1 r T' I AUGUST 1995 WATER MONTHLY REPORT Revenues/Expenditures: Month of August Year to Date Prior Yr. to Date % of Budget Revenues: Water Sales $534,457.04 $937,162.60 $851,339.81 Meter Sales 40,707.41 84,797.41 70,640.00 Developer Fees 0.00 9,970.88 11,199.72 Other Income 28,619.31 46,856.12 13,128.17 Total Revenue $603,783.76 $1,078,787.01 $943,301.70 27% Expenditures: Personal Services $68,693.22 $119,548.43 $123,466.00 Material Services 270,828.21 282;429.74 263,463.85 Capital Outlay 37,265.87 62,518.92 54,256.44 Cap. Proj. Res. Fund 00.00 00.00 00.00 *Total Expends. $376,787.30 $464,497.09 $441,186.29 12% SDC Fund: $49,716.25 $109,030.26 $81,728.00 29% SDC Fund Balance: $1,763,699.85 * City accounting system is on a cash basis Meter Installations: 5/8" x 3/4" 1" 1 1/2" 2" 3" Total Durham 0 0 0 0 0 0 King City 0 0 0 0 0 0 Unincorporated Area 24 1 0 0 0 25 City of Tigard 17 10 0 0 1 28 Total for August 53 Water Consumption and Loss: Total 100 cubic feet of water purchased or produced 317,761 ccf Plus amount of water from storage during August and consumption not billed in July 140,500 ccf Total 100 cubic feet of water billed <354,279 ccf> Net amount of water in storage < 10,100 ccfl Amount of water consumed but not yet billed < 75,000 ccfl Total Water loss 18,882 ccf 6% Work Accomplished: Durham • Water Division personnel responded to a few routine requests to check for water leaks or low water pressure at the customer's service. • Water Division personnel replaced a defective 5/8" x 3/4" water meter and 3/4-inch pressure regulator in the Kings Gate neighborhood. King City • Water Division personnel responded to a few requests to check for low or no water consumption. • Water Division personnel replaced a defective 3/4-inch pressure regulator and raised one meter box within King City. Unincorporated Area • Water Division personnel replaced two 3/4-inch regulators that were malfunctioning; replaced three 5/8"x 3/4" water meters; responded to 19 requests to check for low or no water consumption and three requests to check low or high pressure. • Water Division personnel repaired one 1-inch water service on SW Beef Bend Road and one 3/4-inch water service on SW Chardonnay Avenue that were damaged by a contractor. City of Tigard • Water Division personnel replaced 22 3/4-inch pressure regulators and six 5/8" x 3/4" water meters that were malfunctioning. In addition Water staff also responded to 50 calls to check on water leaks at the meter, replace damaged meter boxes or checked reports of low water pressure. • Water Division personnel replaced and relocated a 2-inch water service located on SW Grant Avenue for St. Anthony's Church. This relocation/replacement was necessary due to the City's Grant Street Bike Path and Sidewalk Improvement project. • Water Division personnel installed a 2-inch water service located on SW North Dakota Street for a new Boston Chicken. Water personnel also installed a 1-inch water service for the Kenny Rogers Roaster located on SW Pacific Highway; removed a 3/4-inch water service on SW McDonald Street; and installed a 1-inch water service and meter for the new Chevron Station located at the corner of SW Pacific Hwy. and McDonald Street. • Water Division personnel relocated a fire hydrant on SW Landmark Lane that was damaged by a moving van. • Water Division personnel relocated two 2-inch water services, three 3/4- inch water services, one air release and adjusted water valve boxes that were impacted by the City's Bonita Road Improvement Project. Also the Water Division had personnel standby as the pilings were driven for the new bridge over Fanno Creek. This was a precautionary act in case a transmission main was damaged. • Water Division personnel removed a water service along SW Burnham Street that was for the tavern located on the corner of SW Main and Burnham Street. The tavern was demolished to make improvements to this intersection. • Water Division personnel raised and repaired valve boxes due to street overlay projects on SW Main Street, SW Wilton Drive, SW Bonita Road, SW Scoffins Street, and SW Hunziker Street. Status Report: On August 18, we increased our water purchases from TVWD to 2.1 million gallons a day. We were able to sustain this flow with no negative effects to the TVWD system. The average yield, during the remainder of the month, was 2.06 MGD. The combined average water production for Wells 1 and 2 for August was 1.16 MGD. This is an increase of approximately 16% from last year. MEMORANDUM CITY OF TIGARD, OREGON T0: Interested Parties FROM: Ed Wegner, Director of Maintenance Services DATE: September 14, 1995 SUBJECT: Regional Water Supply Plan Joint Meeting The City of Tigard will be hosting a joint meeting on October 11, 1995, at 8777 SW Burham, Tigard, at 7:00 p.m. to discuss the Preliminary Regional Water Supply Plan. Council members from Tigard, King City, and Durham, as well as Board members from the Intergovernmental Water Board and Tigard Water District Board are invited. A light dinner will be served from 6:00 p.m. to 6:45 p.m. We have attached a copy of the Preliminary Regional Water Supply Plan for your reference. Hope to see you there. 44*4.1 I 11 EXECUTIVE SUMMARYI. PRELIMINARY REGIONAL WATER SUPPLY PLAN _ _ __ I . .. I. 11 1I ..._ _.... ....... .. . ..__ ........_ _ . __ ..... .. _ _ _ _ _ __.._ .... . for he Portland MetI-Iropolitan Area August 1995 THIS PLAN WAS FINANCED AND MANAGED BY THE FOLLOWING PARTICIPANTS: City of Beaverton Canby Utility Board Clackamas River Water Damascus Water District City of Fairview City of Gladstone City of Gresham City of Hillsboro Utilities Commission City of Forest Grove City of Lake Oswego Metro City of Milwaukee Mt. Scott Water District Oak Lodge Water District City of Portland Raleigh Water District Rockwood Water City of Sandy City of Sherwood South Fork Water Board: City of Oregon City/City of West Linn Tigard Water District City of Troutdale City of Tualatin Tualatin Valley Water District West Slope Water District City of Wilsonville City of Wood Village CONSULTANT TEAM: Barakat & Chamberlin, Inc. Montgomery Watson Barney & Worth Murray, Smith & Associates Squier Associates Parametrix, Inc. McArthur & Associates Pete Swartz EXECUTIVE SUMMARY HISTORY OF THE REGIONAL WATER SUPPLY PLANNING EFFORT The Portland, Oregon, metropolitan region is located on the lower Columbia River, where the Willamette River joins the Columbia. Its urban area is made up of 3 counties and 24 cities with a combined 1990 population of 1,138,000. This population is growing. The region is served by a number of different surface water and groundwater sources. The water supply system operated by the City of Portland currently supplies about 750,000 people; the rest are served by a variety of sources, most notably the Clackamas River, the Trask River/Tualatin River system, and groundwater. In 1989, a number of the region's water providers convened to discuss future water supply issues. It was agreed that the region was going to face future supply shortfalls given current supplies, use patterns, and growth projections. A group called the Regional Providers Advisory Group (RPAG) was formed. It met on a monthly basis and had about 35 members. The RPAG process has evolved into a regional water supply planning effort of unprecedented scope. Phase 1 of this effort, which was completed in 1992, found that: ■ Water demands would increase significantly throughout the region; ■ Existing supplies would not meet all of these demands; ■ Conservation could play an important role in meeting regional water needs; and ■ New sources of water and efficient transmission systems offered the potential to meet these increasing needs. The Phase 1 "Water Source Options Study" evaluated 29 different water supply options that could potentially be developed to serve the Portland/Vancouver metropolitan area's water needs and ranked these sources against a predetermined set of criteria. The evaluation concluded that six supply source options were worthy of additional analysis and should be carried forward to a second phase Regional Water Supply Plan (RWSP). The six source options are: ES-I ■ A third dam in the Bull Run Watershed; ■ Additional diversion and treatment capacity on the Clackamas River; ■ Diversion and treatment capacity on the Willamette River; ■ Diversion and treatment capacity on the Columbia River; ■ Raising the height of Barney Dam on the Trask River, thereby increasing the storage capacity of Barney Reservoir; and ■ Aquifer Storage and Recovery, involving the use of one or more of the region's surface water sources. Since the completion of Phase 1, the Joint Water Commission and the Tualatin Valley Water District have continued to pursue the Barney Reservoir option' and have initiated construction on that project. The RWSP therefore focuses on the remaining five supply options. The RWSP also considers water conservation as a key resource option. This document reports on the results of the RWSP. Phase 2 was funded and managed by a group of 27 water providers in the metropolitan region.Z In 1994, the Metropolitan Service District (Metro) became the 28th participant. The project used the techniques of Integrated Resource Planning and was conducted by a team of consultants led by the firm of Barakat & Chamberlin, Inc. Following is a list of the project participants: City of Beaverton* City of Portland Canby Utilities Board Raleigh Water District Clackamas Water District** Rockwood Water PUD City of Gladstone City of Sandy Clairmont Water District** City of Sherwood Damascus Water District South Fork Water Board City of Fairview City of Tigard City of Gresham City of Troutdale City of Hillsboro Utilities Commission* City of Tualatin 'An Environmental Impact Statement was being developed for this project before Phase 2 began. -The City of Vancouver and Clark County, Washington chose not to participate in Phase 2. The Phase 2 participants are all Oregon jurisdictions. ES-2 City of Forest Grove* Tualatin Valley Water District* City of Lake Oswego West Slope Water District City of Milwaukie City of Wilsonville Mt. Scott Water District City of Wood Village Oak Lodge Water District Metropolitan Service District (Metro) *Denotes members of the Joint Water Commission. **The Clackamas and Clairmont Water Districts have recently merged to form Clackamas River Water. SCOPE OF THE PHASE 2 REGIONAL WATER SUPPLY PLAN The scope of the Regional Water Supply Plan (RWSP) is comprehensive. It includes the following major elements: (1) An active and ongoing public information and involvement program. (2) Development of policy objectives that reflect the important regional values that this plan must attempt to meet. (3) Development of a logical and defensible demand forecast for the region. (4) Evaluation of five potential supply sources. (5) Identification and evaluation of possible transmission system improvements and expansions. (6) Identification and evaluation of a broad range of voluntary and mandatory demand management and conservation options available to the region. (7) Development and evaluation of integrated resource strategies based on the information developed in the foregoing elements. A sophisticated modeling tool was developed to assist this process. (8) Identification of short-term and long-term actions that the region must undertake to ensure that the needs of the regional water providers and ES-3 their customers are met throughout the planning period, which runs through the year 2050. This report contains the preliminary results of the RWSP. The plan is "preliminary" at this point because of the critical need for public feedback over the next several months on the report contents. Based on that input, the plan will be finalized in early 1996. Chapters of the preliminary plan document provide descriptions of all RWSP elements. For most of these, more detailed documentation has been prepared over the course of the project in the form of interim reports or technical memoranda. These are listed in Appendix A of the plan. Arrangements to review these documents may be made through participating water providers. THE REGION'S NEED FOR NEW RESOURCES A key conclusion of the RWSP is that, with current resources and facilities supplemented by the resource additions to which the region's providers have already committed, the earliest point at which the region will need major new supply additions Iwo will be around the year 2017. This point is illustrated in Figure ES-1, which shows a simple comparison between available supplies and peak-day demands under extreme weather conditions, assuming no utility-sponsored conservation programs. An active conservation effort by providers can put off this need until at least the early-to-mid 2020s. This does not imply that there is no work to be done until that time. There is, in fact, much to be done in the near-term to ensure that the region meets the needs of its water customers. Some of these near-term actions include the timely completion of resource additions to which the regional providers have committed, development of necessary transmission and interconnection facilities to meet the needs of all providers, conservation program planning and implementation, and design of a suitable institutional and financial structure to govern the delivery of water service in the region. ES-4 Figure ES-1 Comparison of Regional Peals-Day Demand To Existing and Committed Supply Portland Metropolitan Region 1992--2050: All Customer Classes Millions of Gallons per Day 800 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 750 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 700 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 650 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 600 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 550 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 500 450 . . . . . . . . . . _ - _ _-- -.. -�. . . . . . . . . . . . . . . . . . . . . *A -- -.-."--._ . . . . . .- -- ----------------- ------ . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 400 350 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 300 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 250 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 200 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 150 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 100 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 50 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 0 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1990 2000 2010 2020 2030 2040 2050 Forecast Scenarios ----""-` High Growth 1 13 11 Baseline ----- Low Growth '—`—• Supply 01 AT TCT95 PUBLIC INVOLVEMENT IN THE REGIONAL WATER SUPPLY PLANNING PROCESS Public information and involvement (PI&I) has been a cornerstone of the RWSP. Water provider participants demonstrated their commitment to PI&I by making it a key element of the project's scope, Substantial fiscal and staff resources have been dedicated to ensuring that the values of the citizenry are understood and heard. From its inception, the RWSP was designed to obtain input from various audiences through a mix of activities. Some activities targeted the general regional population, while others involved those with specific interests. Through this process, providers also attempted to promote consensus-building concerning the process and findings of the Plan. Vehicles used to obtain that input and inform the public about the project have included: ■ A broad range of written materials made available to the public; ■ A variety of workshops, roundtable discussions, and public forums; ■ Over 80 interviews of key stakeholders in the region; ■ A detailed public opinion research study; ■ A survey to assess the value that customers place on water supply reliability; ■ More than 100 presentations to interested agencies, organizations, and citizens; ■ Various newsletters, informational materials, and bill inserts; ■ An Environmental Task Force of environmental organization representatives and government officials to review the environmental analysis; ■ Exhibits at county fairs in Multnomah, Clackamas, and Washington counties; ■ Two focus groups with residential water customers; ES-6 ■ A slide show on the RWSP; and ■ A 15 minute RWSP video. Thus, there has been, throughout the planning process, a great deal of information exchanged between project participants and interested citizens, organizations, and decision makers. Over 300 persons receive regular notification of committee meetings and documentation of ensuing discussions. Approximately 3,300 citizens receive updates and invitations to submit feedback through newsletters and other information pieces related to the project. Many customers have received bill inserts on the RWSP process. In turn, project participants have received input from over 3,200 people through surveys and public workshops or briefings. Participating providers made it a priority to listen to the public. Several key public values and priorities have emerged from the PI&I effort. The issues that people most care about include: ■ Cost ■ Equity %W ■ Water quality ■ Environmental protection ■ System reliability ■ Efficient water use ■ Implications of growth Not surprisingly, these key issues reflect the diverse interests of the region's citizenry. The goal of the public involvement process has been to capture the range of interests and concerns held throughout the region. REGIONAL POLICY OBJECTIVES The PI&I efforts provided key input to the development of a set of regional policy objectives developed specifically for the RWSP. The policy objectives, along with associated evaluation criteria, provide a framework to design and evaluate the relative strengths and weaknesses of alternative resource configurations. The region's water providers have not attempted to prioritize the policy objectives. This is consistent with not providing a single "best" resource plan. Rather, the plan presents several options that emphasize different sets of objectives. The plan makes ES-7 tradeoffs among these options clear. The region must now make choices among these alternatives. Some of the policy objectives complement each other, while others compete or conflict. The complexity of the water supply planning and decision-making process is appropriately reflected in the broad range of policy objectives identified. The policy objectives include: Efficient Use of Water ■ Maximize the efficient use of water resources, taking into account the potential for conservation, availability of supplies, practicality, and relative cost-effectiveness of the options. ■ Make the best use of available supplies before developing new ones. Water Supply Reliability ■ Minimize the frequency of water shortages of any magnitude and duration. ■ Ensure that the duration and magnitude of shortages can be managed (e.g., through the operation of raw water storage facilities or through access to alternative sources of water). Water Quality ■ Meet or exceed all current federal and state water quality standards for finished water. ■ Utilize sources with the highest raw water quality. ■ Maximize the ability to protect water quality in the future, including using watershed-protection based approaches. ■ Maximize the ability to deal with aesthetic factors, such as taste, color, hardness, and odor. ES-8 Impacts of Catastrophic Events ■ Minimize the magnitude, frequency, and duration of service interruptions due to natural or human-caused catastrophes, such as earthquakes, landslides, volcanic eruptions, floods, spills, fires, sabotage, etc. Economic Costs ■ Minimize the economic impact of capital and operating costs of new water resources on customers. ■ Assure the ability to relate rate impacts associated with new water resources to benefits gained within the region on an equitable basis over time. Environmental Impacts ■ Minimize the impact of water resource development on the natural and human environments. 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. Ease of Implementation ■ Maximize the ability to address local, state, and federal legislative and regulatory requirements in a timely manner. ES-9 Operational Flexibility ■ Maximize operational flexibility to best meet the needs of the region, including the ability to move water around the region and to rely on backup sources as necessary. Comparisons and tradeoffs among alternatives are facilitated through a set of measurable evaluation criteria. Each policy objective is associated with one or more evaluation criteria. Each alternative resource strategy is evaluated against these criteria. FUTURE WATER DEMANDS IN THE REGION A well-developed and defensible water demand forecast is critical to the RWSP. The demand forecast underlies the entire planning effort. The RWSP demand forecast was a complex undertaking that projected annual, seasonal, monthly, and peak-day demands for the region as a whole and for each of the three counties. These projections are based on demographic and employment forecasts developed as part of Metro's Region 2040 project. RWSP staff and consultants have coordinated closely with Metro staff throughout the process to ensure consistency. Tables ES-1 through ES-3 summarize the forecasting results for annual average, summer average, and peak-day demands respectively. The 1992 base demands are shown, as are the high, medium, and low demand forecasts for the year 2050, the last year of the planning period. Average annual growth rates over the planning period are also shown. These demands reflect naturally-occurring conservation, which results from legal, regulatory, and market forces which tend to increase water efficiency over time regardless of any utility conservation programs. lowi ES-10 ;'err Table ES-1 ANNUAL AVERAGE WATER DEMAND FORECAST (MGD) AND AVERAGE ANNUAL GROWTH RATES 1992 2050: High 2050: Medium 2050: Low Region 172 310 (2.1%) 264 (1.5%) 211 (0.7%) Multnomah County 97 144 (l.4%) 126 (0.9%) 106 (0.3%) Clackamas County 33 67 (2.6%) 56 (l.9%) 43 (0.9%) Washington County 42 99 (3.1%) 82 (2.4%) 62 (l.4%) Table ES-2 PEAK SEASON WATER DEMAND FORECAST (MGD) AND AVERAGE ANNUAL GROWTH RATES 1992 2050: High 1 2050: Medium 2050: Low Region 220 417 (2.3%) 350 (l.7%) 275 (0.8%) Multnomah County 123 190 (1.6%) 165 (1.1%) 136 (0.4%) Clackamas County 41 90 (2.8%) 74 (2.1%) 56 (1.1%) Washington County 56 137 (3.27T) 111 (2.5%) 84 (1.5%) Table ES-3 PEAK DAY WATER DEMAND FORECAST (MGD) AND AVERAGE ANNUAL GROWTH RATES 1992 2050: High 2050: Medium 2050: Low Region 365 780 (2.7%) 667 (2.2%) 535 (1.4%) Multnomah County 183 305 (1.8%) 269 (l.4%) 227 (0.8%) Clackamas County 87 221 (3.4%) 185 (2.7%) 144 (l.8%) Washington County 96 255 (3.6%) 213 (2.9%) 164 (l.9%) ES-11 CURRENT AND COMMITTED RESOURCES Existing water systems in the region have an estimated usable storage capacity of 11.4 billion gallons and a delivery capacity of 413.8 million gallons per day (mgd). Current regional peak-day demand, even under weather conditions that approach the hottest and driest that the region has experienced over a 65-year historical period of record, is about 370 mgd. Despite this apparent excess capacity, some individual providers within the region do face more immediate shortfalls due to transmission and distribution system constraints. Existing water sources and facilities for the region include: ■ The Bull Run watershed, with two dams that impound 10.2 billion gallons of usable storage. About 750,000 residents of the region rely on the Bull Run as their primary supply. ■ The Clackamas River, on which regional providers have developed 66 mgd of intake and treatment capacity. The Clackamas is currently the primary source of water to 175,000 residents. ■ The Trask/Tualatin water system, which includes the 1.3 billion 1"004 gallon Barney Reservoir on the Trask River, a conduit from the reservoir to the Tualatin River, and 43.5 mgd of intake and treatment capacity on the Tualatin. In addition, in most years, the region has access to 4.2 billion gallons from Hagg Lake, which is owned by the Bureau of Reclamation and located on Scoggins Creek. This system supplies water to over 120,000 residents in the western part of the region. ■ The Columbia Southshore Wellfield, which was developed in the 1980s as an emergency backup and peaking supply source. Since 1986, the ability to use the wellfield has been limited to prevent migration of contamination plumes. As a result, the current usable delivery capacity of the wellfield is assumed to be 35 mgd. The City of Portland is working closely with the Oregon Department of Environmental Quality and with the responsible parties to implement a remediation program that restores the wells to their full capacity of up to 90 mgd. ■ Local sources, which are used by a number of smaller communities in the region for base use or peaking purposes. These are largely ES-12 ,%w groundwater sources scattered throughout the region and provide nearly 60 mgd of capacity. ■ Transmission lines, which range from 4-inch diameter pipes in small districts to the 66-inch diameter Bull Run Conduit No. 4. In addition to maintaining existing water supply sources and transmission facilities, the region's water providers are committed to completing several facility additions, expansions and improvements over the next two to ten years. The projects will provide another 80 mgd of delivery capacity and 5.2 billion gallons of storage. These additions are not being evaluated as part of the Regional Water Supply Plan. Rather, the RWSP assumes these projects will be completed, and includes them in the plan's baseline resource assumptions or "base case". Resources to which regional providers have committed, but which are not yet operational, include: ■ The Barney Reservoir expansion, which will increase the water storage capacity of Barney Reservoir from 1.3 billion gallons to 6.5 '*ww' billion gallons. This project is expected to be completed by 1998. In addition, improvements to the Joint Water Commission's intake and treatment facilities on the Tualatin River and addition of a new transmission line are expected to increase delivery capacity by 20 mgd to 63.5 mgd by 1997. ■ Additional Clackamas River capacity beyond the 66 mgd that already exists. Several Clackamas providers have committed to developing a total of 22.5 mgd of additional capacity. This would bring the total "base case" capacity on the Clackamas to 88.5 mgd. ■ Columbia South Shore Wellfield enhancements, which the RWSP assumes will increase the current 35 mgd of capacity to 72 mgd by 2005. Table ES-4 summarizes the existing and committed resources being assumed in the RWSP "base case." As discussed earlier, these committed resources enable the region to defer the need for further resources or facilities until at least the year 2017. Without these committed additions, needs can occur as early as 2004. ES-13 Table ES-4 REGIONAL WATER SUPPLY PLAN EXISTING AND COMMITTED SUPPLY SOURCES Existing Additional Committed Existing and Committed Usable Storage Usable Storage Usable Storage Delivery Capacity Capacity Delivery Capacity Capacity Delivery Capacity Capacity Source (mgd) (mg) (mgd) (mg) (mgd) (mg) Bull Run Res 1,2 210 10,200 210 10,200 Clackamas CRW 30 30 SFWB 20 10 30 Lake Oswego 16 4 20 Oak Lodge 8.5 8.5 Subtotal 66 22.5 88.5 Trask/Tualatin 43.5 1,153 20 5,214 63.5 6,367 Southshore Wellfield 35 37 72 Local Sources South 28.4 28.4 West 12.8 12.8 East 18.1 18.1 Subtotal 59.3 59.3 Total 413.8 11,353 79.5 5,214 493.3 16,567 N%W. ANALYSIS OF SOURCE OPTIONS For each source option, possible facility locations were screened to identify representative sites, which the RWSP defines as: Potential facility locations that merit detailed analysis because they offer the highest likelihood of successful permitting and potential development based on preliminary analyses of technical, land use, water quality, environmental, cost, and other relevant factors. Identified representative sites are as follows: ■ Bull Run Dam 3: Bull Run River canyon just downstream of Log Creek and about one-half mile downstream of the confluence of Blazed Alder Creek and the Bull Run River. ■ Clackamas River: A consolidated facility adjacent to the current Clackamas River Water site.3 ■ Willamette River: Just upstream (west) of the existing railroad bridge ' in Wilsonville on the north side of the river on property currently owned by Oregon Pacific which is currently used for sand and gravel operations. ■ Columbia River: Just below the Sandy's mouth, on a site currently used for gravel mining and storage. ■ Aquifer Storage & Recovery: Two sites, one in the Powell Valley area southeast of Gresham and the other in the Cooper-Bull Mountain area about four miles to the southwest of the City of Beaverton in Washington County. Extensive analyses of each option were then performed. Areas analyzed include: ■ Water Availability and Water Rights ■ Raw Water Quality and Treatment Requirements ■ Environmental Impacts ■ Vulnerability to Catastrophic Events 'Several configurations were considered that use this consolidated facility instead of or in conjunction with the various existing or planned Clackamas River facilities. ES-15 ■ Costs vote ■ Ease of Implementation One of the key conclusions is that all of the surface sources can readily be treated to meet or surpass all safe drinking water standards. These analyses formed the basis of ratings of each option against key evaluation criteria and provided crucial information to the development and assessment of alternative resource strategies. Table ES-5 summarizes the ratings of the source options. ANALYSIS OF TRANSMISSION OPTIONS In addition to the source options, transmission is critical to efficiently meeting the region's needs. The region's transmission systems include several components, including: ■ Pipelines that move treated water from the treatment plant to the regional storage reservoirs; low ■ The regional reservoirs themselves; ■ Major lines linking sources to demands in other parts of the region; ■ Major lines designed to serve demands within a portion of the region; and ■ Local "spokes" to serve the needs of individual providers. Representative regional reservoir sites for the surface source options are as follows: ■ Bull Run and Columbia sources: Existing Powell Butte reservoir site. ■ Clackamas source: Forsythe Road site near the unincorporated community of Outlook in Clackamas County. ■ Willamette source: Cooper Mountain site in unincorporated Washington County west of Beaverton. ES-16 Nine major representative transmission corridors were identified, as follows: ■ Lusted Hill/Powell Butte ■ Columbia River/Powell Butte ■ Powell Butte/Clackamas River ■ Powell Butte/Beaverton ■ Clackamas/Tualatin ■ Clackamas/Forsythe Road ■ Willamette/Tualatin ■ Tualatin/Beaverton ■ Cooper Mountain/Beaverton Corridor alignments were chosen for each of these based on preliminary land use, environmental, and geotechnical analyses. Based on specified design criteria, cost functions were then generated for each corridor. These cost functions also included base cost estimates for the local "spokes" between the corridor and the appropriate local providers. The final components of the transmission system are the "spokes" that deliver water to the local providers from one of the major transmission lines. For each provider, these spokes were sized to meet the projected 2050 demand deficit based on forecasted high peak-day demands. As discussed below, a key plan implementation issue for the region is the specific local interconnections that are needed to ensure that provider needs are met in the near-term as well as the long-term. The region should attempt to configure these local transmission additions to be consistent with the adopted long-term regional resource strategy. ES-17 Table ES-5 RATINGS OF SOURCE OPTIONS Raw Vulnerability to Ease of Natural Human Water Water Watershed Catastrophic Implemen- Source Option Environment Environment Quality Aesthetics Protection Events tation Bull Run Dam 3 4.9 3.6 1.2 1.0 1.0 3.5 4.5 Columbia 2.6 2.5 2.1 2.5 5.0 3.3 3.5 Willamette 1.0 2.5 2.2 2.0 4.0 2.5 4.0 Clackamas (>50 mgd) 2.4 1.0 1.8 2.0 2.0 2.5 2.0 Clackamas (:!5; mgd) 1.0 1.0 1.8 2.0 2.0 2.5 2.0 ASR 1.5 2.2 3.0 3.0 N/A* 2.0 3.0 Note: Ratings range from 1 to 5; lower scores are preferred. * This issue was not directly addressed in the RWSP. It is assumed that rigorous wellhead protection programs will be required for any ASR site. It is critical that the development of regional, subregional, and local transmission options meets local needs over the entire planning period in a manner consistent with the region's anticipated ultimate resource configuration. At times, there will be some friction between short-term local needs and long-term regional needs. The manner in which this friction is resolved must recognize that a regional plan that cannot flexibly meet the ongoing needs of the participant providers will not retain the critical support of those providers. These needs should, however, be met in the context of the strategic direction the region has chosen. ANALYSIS OF CONSERVATION PROGRAMS A basic premise of the RWSP is that water conservation is a resource that can play a key role in meeting future water needs and that this resource must be carefully considered and subjected to the same level of analysis as are supply sources. A comprehensive framework was used to examine water conservation to assure that all viable conservation technologies and management practices are considered. The framework began by specifying a large universe of potential conservation measures. These measures were then subjected to a qualitative screen to narrow the focus to those that had potential value to the region. For those measures that passed the qualitative screen, technology profiles were developed that described each measure's key technical and economic characteristics. The profiles formed the basis of an economic screen of the remaining measures. The next step was to combine measures passing both screens into effective conservation program concepts. A conservation program is a set of conservation measures bundled for delivery to a defined target market of customers. The results of this step are presented in Table ES-6, in which the program concepts are divided into three levels in increasing order of "aggressiveness." Detailed descriptions were developed for each of 24 program concepts. In addition, estimates were made of the further savings that could be achieved through conservation pricing programs beyond those already in place in the region. The RWSP also included a preliminary analysis of opportunities for increasing water reuse and recycling, and for the direct use of stormwater. Options evaluated include: ■ Stormwater capture ■ Cisterns ■ Gray water systems ES-19 ■ Recycling of industrial cooling water v■r� ■ Reuse of treated wastewater effluent DEVELOPMENT OF ALTERNATIVE RESOURCE STRATEGIES The final product of the RWSP is a set of resource strategies that best meet the region's needs as expressed through the policy objectives. There are many possible strategies that reflect the tradeoffs the region must make among the policy objectives. In light of the importance of future uncertainties, it is useful to distinguish between a resource sequence and a resource strategy. ■ A resource sequence is a linear progression of resource and transmission additions over the planning period. Note that a resource sequence does not provide flexibility for the region. It is a single development path that does not respond to changing future conditions. ■ A resource strategy is a multi-branched "tree" of sequences that defines actions that should be taken under various sets of uncertainty outcomes. It is a "road map" of recommended actions under a wide range of " future conditions, and provides a series of points at which the region can respond to new information about then-current conditions. 14000, ES-20 Table ES-6 REGIONAL CONSERVATION PROGRAM CONCEPTS Commercial, Industrial, Commercial, Industrial, Residential Indoor Residential Outdoor Institutional Indoor Institutional Outdoor Level 1 Public education and Public education and Commercial plumbing and CI&I outdoor education and awareness awareness appliances education awareness Customer landscaping HVAC workshops C&I watering practices workshops workshops Trade ally landscaping Trade ally landscaping workshops—res. portion workshops—C&I portion Level 2 Indoor audit (combined with Outdoor audits Commercial indoor audit CI&I outdoor audits outdoor) Incentives for new efficient HVAC financial incentives Large landscape audits Appliance incentives and landscaping and irrigations equipment tagging systems Industrial process technical Incentives for new efficient assistance and incentives landscaping and irrigation systems Level 3 Ultra low-flush toilet rebate Landscaping ordinance Ultra low-flush toilet direct Landscaping ordinance installation and incentives Incentives for early retirement of single-pass cooling Water Supply Reliability One of the fundamental goals of the RWSP is to address the issue of water supply reliability. This goal is embodied in the policy objective of "minimiz(ing) the frequency of water shortages of any magnitude and duration." In many ways, supply reliability is basic to the RWSP, as concern about future unreliability is the key reason the region's providers joined to develop the plan. The region must ultimately choose a desired level of future reliability, just as it must make choices about other policy objectives. Tradeoffs occur between increased reliability levels and other important objectives, such as minimizing costs and environmental impacts. Policymakers must understand the consequences of different reliability levels to make informed decisions. To accomplish this, resource sequences and strategies were defined for each of three reliability levels. The definition of these reliability levels was guided by the key finding that, given existing and committed resources, the Portland region will have sufficient total water supply volumes to avoid all volume-related shortages for the entire planning period (i.e. through 2050), even under high demand and low flow conditions. However, in the absence of further resource and facility additions, the region will face shortages in delivery capacity on high-demand days. Since the region must concern itself with shortages in delivery capacity that are driven by peak demands, the alternative reliability levels should be defined accordingly. Thus, the key distinctions in reliability relate to the level and frequency of shortages during peaking events. ■ A system that achieves Level 1 reliability would be perfectly reliable. No shortages would be experienced even under the worst historical weather conditions. ■ A system that achieves Level 2 reliability would allow for no more than a 10% peak day shortage for any of the three counties under the worst historical weather conditions. ■ A system that achieves Level 3 reliability would allow for no more than a 20% peak day shortage for any of the three counties under the worst historical weather conditions. ES-22 Resource Sequences That Achieve Level 1 Reliability There are many ways for the region to add resources and facilities to ensure that future shortages do not occur. The RWSP proposes five approaches to meeting the region's needs and achieving this highest possible level of reliability. Each of these five sequences was designed to emphasize different policy objectives or combinations of objectives. Table ES-7 provides a guide to the key policy objectives addressed by each sequence. The sequences themselves are illustrated in Figure ES-2. Each of these sequences assumes high demands. These resource sequences were evaluated against the evaluation criteria. Table ES-8 shows the results of the key assessments. Table ES-7 KEY POLICY OBJECTIVES ADDRESSED BY LEVEL 1 RESOURCE SEQUENCES Natural Water Use Raw Water Catastrophic Sequence Environment Efficiency Quality Costs Events 1.1 ✓ ✓ 1.2 ✓ ✓ 1.3 ✓ ✓ ✓ 1.4 ✓ ,/ 1.5 ✓ ✓ ✓ ,/ ES-23 Table ES-8 PERFORMANCE OF LEVEL 1 RESOURCE SEQUENCES AGAINST KEY EVALUATION CRITERIA Cost Water Quality Catastrophic Events Expected Seasonal Efficiency: % Unserved Demand in Present Present Conservation Worst Year Without: Value Value Savings for 2nd No. of Ease of Societal ($ Utility Planning Natural Raw Water Watershed Largest New Implemen- Sequence millions) ($millions) Period Environment* Quality*,t Protection* Bull Run Source Sources tation* 1.1 Natural 996.6 962.9 10.57% 1 2.2 2.1 23% 1.5% 1 2.5 Environment/ Efficiency 1.2 Raw Water 722.2 802.6 5.04% 4.9 1.2 1.3 60% 0.7% 0 4.5 Quality/Efficiency 1.3 Cost/Water 611 647.6 5.04% 3.2 2 2.1 16% 9.0% 1 3.1 Quality/Efficiency 1.4 Catastrophic 635.1 673.9 5.04% 2.9 2.2 2.1 2% 0.7% 3 3.8 Events/Efficiency 1.5 Costs/Natural 647.9 673.9 5.04% 2.1 2.2 1.8 2% 0.9% 2 3.3 Environment/ Catastrophic Events/Efficiency * Comparative scale ranging from 1-5 with 1 as the most favorable rating and 5 as the least favorable rating. Volume weighting of raw water quality ratings of new sources. Resource Strategies That Achieve Level 1 Reliability For each of the five sequences, associated resource strategies that reflect demand uncertainty were developed. These strategies indicate how future resource and facility development activities would vary as future demands deviate from earlier forecasts. In all cases, the objective would still be to achieve Level 1 reliability. To illustrate, a resource strategy diagram is shown in Figure ES-3. Table ES-9 shows the expected values of the key evaluation ratings for each of the strategies.' The flexibility rating is based on the number of possible resource paths in the strategy. `4%W 'These expected ratings are based on assumed probabilities for each possible demand outcome (high, medium, or low) for the successive demand reassessments that occur throughout the planning period. ES-25 Table ES-9 EXPECTED VALUES OF KEY EVALUATION CRITERIA FOR LEVEL 1 STRATEGIES Costs Water Quality Present Value Present Societal Value Utility Natural Raw Water Watershed Strategy ($million) ($million) Environment* Quality* Protection* Flexibility* 1.1 864.3 797.8 1.0 2.0 1.8 3 Natural Environment/Efficiency 1.2 580.6 619.9 4.1 1.2 1.2 5 Raw Water Quality/Efficiency 1.3 494.0 501.4 2.2 1.7 1.7 3 Costs/Water Quality/Efficiency 1.4 534.4 546.9 2.2 2.1 1.7 1 Catastrophic Events/Efficiency 1.5 539.9 539.9 1.8 2.1 1.5 2 Costs/Natural Environment/ Efficiency/Catastrophic Events *Comparative scale ranging from 1-5 with 1 as the most favorable rating and 5 as the least favorable rating. Implications As mentioned earlier, these results indicate that—even if the region were to pursue the highest possible level of reliability and future demands turn out to be high—major resource additions would not be required until well into the 2020s. This conclusion assumes that the region pursues a menu of conservation programs that focus on outdoor uses and is critically dependent on the region's developing committed sources in a timely manner. If the region undertakes those near-term activities, there is considerable time before additional sources must be developed. ES-27 Figure ES-2 Level 1 Resource Sequences—High Demand 1995 2010 2020 2030 2040 2050 Level l Reliability I Sequence 1.1 Maximum Natural Environment/ A conservation Willamette— 60 mgd ■ Willamette 50 mgd ■ Efficiency Willamette— 50 mgd ■ i Sequence 1.2 Outdoor ; East-South Bull Run Dam 3 ■ Raw Water Quality/ i conservation • (75 mgd) i Efficiency East-West(75 mgd) • Sequence 1.3 Outdoor Clackamas—50 mgd ■ Clackamas—33 mgd ■ Columbia—55 mgd ■ Costs/Water Quality/ A conservation Columbia -50 mgd ■ Efficiency East-West(75 mgd) • i Sequence 1.4 I Catastrophic Events/ Outdoor ASR E&W ■ Columbia —50 mgd ■E Columbia —25 mgd ■ Efficiency A conservation ■ East-South(50 mgd) Willamette—50 mgd ■ Willamette—25 m'gd ■ West-South(20 mgd) 0 Sequence 1.5 Costs/Natural Environment/Efficiency/ Outdoor `ASR E&W ■ Willamette—50 mgd ■ Willamette—50 mgd ■ Catastrophic Events A conservation ♦ South-East(50 mgd) Clackamas—50 mgd ■ South-West(25 mgd) A Conservation • Single Direction Transmission ■ Supply Option ♦ Bidirectional Transmission 95 920293.por l.ba.7/95.ap �ilrrr' Figure ES-3 Level 1 Reliability — Strategy 1.5 Number of possible Willamette sequences=35 Willamette H 50 mgd 150 mgd ----------M' -------------------- Clackamas _ _H_ 50 mgd - M H Willamette ---------------- H i 100 mgd -- --- - --- -- ----------- I" ASRM,L=---------------------------------- Clack—50 m d Willam�te—10 mgd --------------- Wil—50 mgd H ` Clackamas—70 mg H M40 mgd Clackamas— - - -- - ---- - -- ------------- ---------- M M Clack—40 HL L ---•-- ----------- ----- M = Clackamas L ------------- 40 mgd ASR Wil—50 mgd L =` r--------------- H E Clack—50 mgd Clack—50 m9d,, H Wil—100 mgd -- --------- Wil— 100 mgd Outdoor M ASR Clackamas—�0 m d H Clack—10 mgd ----------------------- ------------- - ---5--- -------` Conser- M M M L vatlon $ L Clack—40 mgd M L ASR L ` M Clack—40mgd --------------- - Clack—40 mgd L =--------------------------------- ASR ASR L `------- L M -------------------------------f L I-------------------- • Indicates on-line date 1995 2020 2025 2030 2035 2040 2045 2050 95-920293 T,i,.X[-1 8.7M Jh This does not mean the region can afford to defer a decision on which resource strategy will be pursued. As discussed below, the region faces many challenges in the short-term that will require action to ensure the needs of individual providers will be met. Policymakers' adoption of a long-term resource strategy will provide important direction to water providers, guiding near-term actions such as regional conservation program implementation and additions to the region's transmission system. Resource Strategies that Achieve Level 2 or 3 Reliability It is important to understand the implications of the region choosing less-than-perfect reliability, particularly in terms of costs. To illustrate, Level 2 and 3 strategies were developed that correspond to Level 1 strategies 1.2 and 1.5. Table ES-10 contains the mean values of key evaluation indices for these four new resource strategies. Their expected costs are significantly less than for their Level 1 counterparts. This key tradeoff between costs and reliability is one of many such tradeoffs that the region must make. -40 ES-30 Table ES-10 EXPECTED VALUES OF KEY EVALUATION CRITERIA FOR LEVEL 2 AND 3 STRATEGIES* Costs Water Quality** Present Value Present Value Societal Utility Natural Raw Water Watershed Strategy ($million) ($million) Environment** Quality** Protection** Flexibility** 2.2 517.2 537.2 3.7 1.1 1.3 5 Raw Water Quality/Efficiency 2.5 494.1 487.8 1.8 2.0 1.5 3 Costs/Natural Environment/ Efficiency/Catastrophic Events 3.2 481.9 490.9 3.7 1.1 1.3 5 Raw Water Quality/Efficiency 3.5 476.2 462.9 1.7 2.2 1.4 5 Costs/Natural Environment/ Efficiency/Catastrophic Events *Probability-weighted averages across all possible resource development paths. ** Scale ranging from 1-5 with 1 as the most favorable rating and 5 as the least favorable rating. CONCLUSIONS AND RECOMMENDATIONS A regional dialogue regarding the appropriate future level of water supply reliability should be undertaken. Yet, that decision does not have to be made before going forward with required near-term actions since the major impact of lesser reliability levels is to put off necessary resource additions even further. At the appropriate time, the region's decision makers must determine the desirable level of reliability for the region. While long-term system reliability does not influence near-term actions, many of the near-term actions the region must pursue will be affected by resource choices pursued over the long-term. Thus, it is critical for the region to consider the five strategies presented for Reliability Level ,1 and to select one of these or develop an alternative. Based on the evaluation of Strategies 1.1 through 1.5, the regional providers suggest a ranking based upon how well each strategy meets the entire range of policy objectives. Table ES-11 shows the ranking of the five strategies recommended by the regional providers. ES-32 Table ES-11 RANKING OF LEVEL 1 RESOURCE STRATEGIES Emphasized Policy Objectives Water Provider Strategy Natural Water Use Raw Water Catastrophic Ranking Number Resource Additions Environment Efficiency Quality Costs Events Outdoor Conservation, ASR, ✓ 1 1.5 Clackamas, Willamette ✓ ✓ ✓ 2 1.3 Outdoor Conservation, ✓ ✓ ✓ Clackamas, Columbia 3 1.4 Outdoor Conservation, ASR, ✓ Willamette, Columbia Outdoor Conservation, 4 1.2 gull Run Dam 3 ✓ ✓ 5 1.1 Maximum Conservation, ✓ ✓ Willamette Thus, based on the RWSP analysis conducted to date, water provider participants recommend Strategy 1.5 for consideration during preliminary RWSP review because it seems to best meet the broadest array of policy objectives identified through the planning process. This strategy focuses on the following major future resource additions: ■ Outdoor water conservation; ■ Aquifer Storage and Recovery; ■ The Clackamas River; and ■ The Willamette River The advantages of Strategy 1.5 include: ■ Relatively low costs; ■ Relatively low environmental impacts; ■ An emphasis on the efficient use of water; ■ Relatively low vulnerability to catastrophic events; and ■ Flexibility to deal with future uncertainty. The overall raw water quality rating for Strategy 1.5 is comparable to Strategies 1.1 and 1.4. It is not as good as Strategies 1.2 or 1.3. The RWSP's raw water quality analysis has revealed that the quality of all the surface supply options is high when compared to most other municipal sources nationwide. The conservative treatment approaches recommended for the river sources will provide multiple-barrier protection against current and future contaminants and will yield good-tasting water. Moreover, the Willamette and ASR will both be used primarily as peaking sources. For the vast majority of any year, the region will be served by the Bull Run, the Trask/Tualatin system, and existing local supplies (primarily groundwater). In addition, the likely injection source for ASR will be the Bull Run. The region's water providers are committed to an open and fair discussion about the merits of the alternative water futures available to the region. The public's response concerning the resource strategies presented and how these meet the region's needs is important. The providers fully recognize that no one "right answer" exists that perfectly meets all of the public's values. This is why several strategies are presented for consideration. Strategies 1.1 through 1.4 are also fully capable of meeting the region's water supply needs. They address some of the same policy objectives and, in many cases, do a better job at meeting particular objectives than Strategy 1.5. Nevertheless, none of the other alternatives seems to meet so many important objectives. ES-34 WHERE DOES THE REGION GO FROM HERE? Regardless of the strategy adopted by the regional providers, a range of issues must be addressed in the near term. Providers have already expressed their commitment to establishing an ongoing regional organization to meet the region's water supply needs following RWSP completion. The exact form and functions of this organization will be discussed over the next few months prior to adopting the final RWSP. However, a key overall role will be to ensure that the needs of all water customers throughout the region are met within the context set by the adopted Regional Water Supply Plan. It will also consider possible long-term changes to the current institutional and financial arrangements under which water service is delivered in the region. Not only must the ongoing relationships among the providers be defined, but so also must the critical role of Metro. Metro has the authority and responsibility to adopt and enforce the region's urban growth management strategy, including the adoption and revision of the Urban Growth Boundary (UGB). Thus, there is a direct relationship between Metro's role and the job of the regional providers to serve the water needs of the growing metropolitan region. In addition, the Metro Charter requires Metro to adopt an Urban Water Supply and Storage Element in its Regional Framework Plan. As a RWSP participant, Metro itself will provide input on the preliminary and final RWSP documents. It will adopt the final RWSP by resolution. The relationship between the region's water providers and Metro requires further discussion as the region moves toward final adoption of a RWSP. Specific near-term actions that must be undertaken by the region include: ■ Adoption of a long-term regional resource strategy. ■ Continued maintenance, upgrades, and remediation of the Columbia Southshore Wellfield. ■ Expeditious completion of the Barney Reservoir and Joint Water Commission treatment plant and transmission expansions. ■ Timely development of the additional committed capacity on the Clackamas River. ■ Development of transmission and interconnection facilities to serve the short-term and medium-term needs of individual providers. It is critical ES-35 that these facilities be developed within the context of the adopted long-term regional strategy. ■ Planning and implementation of an appropriate mix of conservation programs. ■ Expanded coordination with the region's wastewater management agencies regarding the potential use of stormwater and treated effluent as non-potable water resources. ■ Actions necessary to maintain the viability of all source options considered in the RWSP. This last point deserves particular attention. Over the last two decades, events have shown that competing demands, coupled with increased regulatory requirements, will make securing water sources more difficult for the future. Contingencies must be considered if particular choices later become unavailable. The water providers should continue to protect their ability to utilize the water sources considered in the RWSP. This will require a variety of activities for each source option. In short, completion of the RWSP project signals the region's water providers to continue and redouble the collaborative and visionary efforts that they have begun. Among the benefits of the RWSP effort has been an increase in trust and understanding among the providers that has allowed a truly regional plan to be developed. It is critical that the providers capitalize on this trust and understanding to immediately begin to undertake the near-term actions that will lead to effective plan implementation and will meet the needs of the region's water customers. ES-36 • Water Division personnel relocated a fire hydrant on SW Landmark Lane that was damaged by a moving van. • Water Division personnel relocated two 2-inch water services, three 3/4- inch water services, one air release and adjusted water valve boxes that were impacted by the City's Bonita Road Improvement Project. Also the Water Division had personnel standby as the pilings were driven for the new bridge over Fanno Creek. This was a precautionary act in case a transmission main was damaged. • Water Division personnel removed a water service along SW Burnham Street that was for the tavern located on the corner of SW Main and Burnham Street. The tavern was demolished to make improvements to this intersection. • Water Division personnel raised and repaired valve boxes due to street overlay projects on SW Main Street, SW Wilton Drive, SW Bonita Road, SW Scoffins Street, and SW Hunziker Street. Status Report: On August 18, we increased our water purchases from TVWD to 2.1 million gallons a day. We were able to sustain this flow with no negative effects to the TVWD system. The average yield, during the remainder of the month, was 2.06 MGD. The combined average water production for Wells 1 and 2 for August was 1.16 MGD. This is an increase of approximately 16%from last year. jk'ARE p� C �� GREG& CITY MANAGER'S OFFICE October 10, 1995 Jack Polans 16000 SW Queen Victoria Place King City, Oregon 97224 Dear Jack: Thank you for the June 2, 1995 Oregonian article on the quality of drinking water. The article insert, "In Oregon" stated that Lake Oswego is affected by excessive levels of lead. This statement is misleading. The City regularly monitors its raw water and finished water, and water at the tap of Lake Oswego homes. The quality of the City's finished water meets all federal drinking water standards. However, the water at the tap of several homes exceeded the federal action level for lead. During two rounds of sampling of 60 homes, only one home exceeded the action level for lead both times. It is believed that the source of lead is from the service line between the meter and the home. The City conducted a desktop evaluation of corrosion control measures to reduce the lead levels at the tap. This study was completed in October 1994 and submitted to the Oregon Division of Health for its review and approval. The recommended method of reduce lead levels is to raise the pH of the finished water. An increase in pH reduces the solubility of lead and less lead is leached into the water from residential services and plumbing fixtures. The Oregon Division of Health has concurred with the recommendations of the City. Thank you for your interest in the City's water system. VV e truly yours, Do gXanager. Schmitz City DJS:jm c: Alice L. Schlenker, Mayor Lake Oswego City Council Members 2Rn ^A" A%,n,w • Po ,;t Office B0v 369 Lake Osweko. Ore4(,n 147034 (503)(,3;-0'-1 FAX (�O3)hy7-6 94