05/09/2007 - Minutes Intergovernmental Water Board (IWB)
Meeting Minutes
May 9, 2007
Tigard Water Building
8777 SW Burnham Street
Tigard, Oregon
Members Present.
Gretchen Buehner Representing the City of Tigard
Patrick Carroll Representing the City of Durham
George Rhine Representing the Tigard Water District
Bill Scheiderich Member at Large
Dick Winn Representing the City of King City
Members Absent. None
Staff Present. Water Quality/Supply Supervisor John Goodrich
City Attorney Tim Ramis
Financial & Information Services Director Bob Sesnon
IWB Recorder Greer Gaston
1. Call to Order, Roll Call and Introductions
Commissioner Scheiderich called the meeting to order at 5:28 p.m.
Mr. Sesnon introduced himself to the Board. Commissioner Scheiderich recognized Mr.
Ramis.
2. Approval of Minutes —April 11, 2007
Commissioner Carroll motioned to approve the April 11, 2007, minutes; Commissioner
Beuhner seconded the motion.
On page one, Commissioner Rhine requested an addition to the minutes to clarify that
the Tigard Water District had not taken a vote on the disposition of the Canterbury
property, but had engaged in a lengthy discussion of the issue.
It was agreed a notation would be placed in the minutes. The minutes were approved, as
amended, by unanimous vote.
3. Public Comments: None
4. Egbert Credit for Leak Request
Mr. Sesnon provided background information regarding this credit for leak request.
Based upon the prescribed process, a credit of$739.88 was calculated. Credits
exceeding $500 require the approval of the IWB.
Commissioner Buehner motioned to approve the credit; Commissioner Carroll seconded
the motion. The motion was approved by unanimous vote.
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5. Logan Appeal of Leak Credit - Bob Sesnon
Mr. Sesnon provided background information regarding this appeal of a leak credit.
Based upon the prescribed process, a credit of$445.20 was issued. This left a
remaining balance of$484.46 owed by Mr. Logan. Mr. Logan was requesting a further
credit.
Leonard Logan, 10606 SW Windsor Court, Tigard, described how the leak was
identified and repaired.
Based upon past practice, Commissioner Winn suggested the Board split the remaining
balance. This would result in an additional credit of$242.23.
Commissioner Winn motioned to approve the additional credit; Commissioner Buehner
seconded the motion. The motion was approved by unanimous vote.
Non-Agenda Item -Arbor Heights Apartments - Fire Line Leak
A memo and credit for leak request information from Mr. Goodrich were given to the
Board at the beginning of the meeting. These materials are on file in the IWB record.
The Board considered the request.
Mr. Goodrich provided background information regarding this credit for leak request.
Based upon the prescribed process, a credit of$1,323.12 was calculated. Credits
exceeding $500 require the approval of the IWB.
Commissioner Winn motioned to approve the credit; Commissioner Rhine seconded the
motion. The motion was approved by unanimous vote.
6. Discussion of Water Building Agreement
Mr. Ramis distributed rough drafts of the following documents related to the City of
Tigard's use of the water building. These documents are on file in the IWB record.
■ Tenancy In Common Agreement
• Bargain and Sale Deed
• First Amendment to the Intergovernmental Agreement between the City of
Tigard and the Tigard Water District for Delivery of Water Service
• Commercial Lease
Mr. Ramis confirmed the goals of the documents were to:
• assure the ownership of record is actually in the names of the participating
jurisdictions
■ create a lease relationship between those owners of record and the City of
Tigard and outline who will manage the building and take on the costs
associated with that management
• establish clear procedures to address when an owner of record wants to sell
their interest or sell the building
To address these goals, Mr. Ramis proposed the following documents:
• A deed to convey the property in the appropriate ownership interest
percentages
■ A lease between the owners and City of Tigard clarifying who will be
responsible for building maintenance expenses. This would likely include, via an
appraisal process, a first right of refusal for the City of Tigard.
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• Two documents dealing with property sale provisions:
1. An amendment to the Intergovernmental Agreement stipulating that three
votes will be required to sell property.
2. Tenancy In Common Agreement to establish the rules under which the
owners operate the ownership of the property. Most likely, this would also
include, via an appraisal process, a first right of refusal for the City of Tigard.
Mr. Ramis summarized the documents. He directed the Board's attention to the
following specific items:
• Tenancy In Common Agreement, page 4, section 18, Restrictions on Sale of the
Property and, section 18.1, Right of First Refusal
■ Amendment to the Intergovernmental Agreement, page 2, section 4.D.
• Commercial Lease, page 4
With regard to item 4.1 of the Commercial Lease, Commissioner Carroll noted the
Board had agreed it was responsible for the HVAC. Commissioner Buehner explained
maintenance that is typically the responsibility of a landlord would fall to the IWB, and
standard tenant improvements would be the tenant's responsibility. Mr. Ramis
confirmed the Board wished to use the model of a typical office building whereby the
owner has responsibility for the roof, HVAC, structural integrity of the walls, etc.
Commissioner Scheiderich confirmed the Board was renting the building "as is."
With regard to HVAC zone adjustments following the improvements, he asked if this
cost would be allocated among the owners or done at the tenant's expense. The term
of the lease and the City of Tigard's ability to recoup its investment in the building was
discussed. Commissioner Scheiderich requested Mr. Ramis' documents state the
building was being leased "as is."
Commissioner Carroll countered that in previous discussions the Board had decided to
repair the building's HVAC system at a cost of about$350,000. Other improvements
would be the responsibility of the lessee.
Mr. Ramis will review the minutes from previous meetings to determine whether the
IWB direction was to:
• Lease the building "as is," and adjust the lease term to ensure Tigard could
recoup its investment. Tigard would pay for all improvements.
Or
• The IWB would pay for landlord improvements, like the HVAC, to make the
building rentable, and the City of Tigard would pay for typical tenant
improvements.
Commissioner Buehner clarified that Tigard would actually perform the repairs, but it
Was the responsibility of the IWB to make the building rentable.
Mr. Ramis noted the HVAC transaction will be completed by the time the legal
documents are considered. He proposed the content of the minutes be included as a
recital.
The Board discussed the fact that the percentage of ownership, per the IGA, would be
determined by the number of residential, commercial, and industrial
customers within each jurisdiction. Mr. Ramis said the Board could review the
calculations prepared by Mr. Koellermeier.
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The Board agreed to submit any comments to Mr. Ramis at least one week prior to the
Board's next meeting.
7. Update on Water Supply Options -John Goodrich
Mr. Goodrich provided the following updates:
• The Tualatin Valley Water District still appears to be considering the Willamette
River as an option.
• The City of Lake Oswego is working on initial water conservation efforts.
8. Informational Items
Mr. Goodrich provided the following updates:
■ Aquifer Storage and Recovery Wells
- 200 million gallons (mg) is stored in ASR wells.
- A flow meter at ASR 2 is malfunctioning, but injection will continue as
soon as it is repaired.
- Non-contract water is available through May.
- The target storage amount would be 260 mg; 1.8 mg can be injected per
day.
- Drilling is underway on ASR 3.
- Theoretically, ASR 1 can store about 100 mg, and ASR 2 can store about
260 mg.
■ The City of Tigard has hired a contractor to conduct large meter testing within
Tigard Water Service Area. The contractor will check the accuracy of water
meters for commercial buildings. Faulty meters may not accurately report water
usage. Commissioner Buehner asked for a report on this testing at the next
meeting.
9. Non-Agenda Items
Note: See Non-Agenda Item -Arbor Heights Apartments-Fire Line Leak under
item #5
10. Next Meetings—
■ June 13, 2007, 5:30 p.m.
Tigard Public Library, 2nd Floor Conference Room, 13500 SW Hall Blvd.,
Tigard, Oregon
• June 19, 2007, Time to be announced
Joint Meeting with the Tigard City Council
Tigard City Hall, 13125 SW Hall Blvd., Tigard Oregon
11.Adjournment: The meeting adjourned at 6:12 p.m.
Greer A. Gaston, IWB Recorder
Date: .1LU1e_
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