08/08/2007 - Minutes Intergovernmental Water Board (IWB)
Meeting Minutes
August 8, 2007
City of Tigard
Water Auditorium
8777 SW Burnham Street
Tigard, OR 97223
Members Present:
Patrick Carroll Representing the City of Durham
Gretchen Buehner Representing the City of Tigard
Julie Russell Representing the Tigard Water District
Bill Scheiderich Member at Large
Dick Winn Representing the City of King City
Members Absent:
Patrick Carroll Representing the City of Durham
* Joined the meeting by speakerphone for items 4 and 5.
Staff Present: Public Works Director Dennis Koellermeier
Water Quality & Supply Supervisor John Goodrich
IWB Recorder Greer Gaston
1. Call to Order, Roll Call and Introductions
Commissioner Scheiderich called the meeting to order at 5:36 p.m.
2. Approval of Minutes —July 11, 2007
Commissioner Buehner motioned to approve the July 11, 2007, minutes; Commissioner
Winn seconded the motion. The minutes were approved by unanimous vote, with
Commissioners Buehner, Russell, Scheiderich, and Winn voting yes.
3. Public Comments: None
Note: Commissioner Carroll participated in the meeting via speakerphone for agenda
items 4 and 5.
4. Consider a Water Building Lease with the City of Tigard
Mr. Koellermeier briefed the Board on this item which had been tabled at the Board's last
meeting. He explained two items had been updated:
• Language was added which requires adjustments in rent at five year increments.
• A miscalculation was corrected to reflect the fact that improvements were
annualized for a term of eleven and one-half years, instead of twelve and one-
half years.
Commissioner Buenher motioned to approve the water building lease; Commissioner
Winn seconded the motion.
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At the request of Commissioner Russell, Commissioners Buehner and Winn amended
their motion to incorporate the "Background Information on Rental Calculations for the
Water Building Lease" document in the lease.
Note: Commissioner Russell inquired about agenda item 5. The Board discussed
agenda item 5. The Board returns to agenda item 4 following this discussion.
5. Discuss City of Durham Request for Clarification of the Tenancy in Common
Agreements Report on the Adoption of Intergovernmental Agreement
Amendments
In response to a question from Commissioner Russell, Commissioner Buehner advised
improvements (buildings) are typically depreciated through various methods, while real
property does not depreciate.
Mr. Koellermeier summarized Mr. Ramis' memo. Mr. Koellermeier referenced the
depreciation schedule in the 1994 report by Economic and Engineering Services, Inc.,
which assigns a 33 year, straight-line depreciation method for buildings. Real property,
which does not depreciate, would be appraised at the time of transaction.
Commissioner Scheiderich added that if a building were to be sold to an outside party, it
would be appraised and the IWB jurisdictions would share in the proceeds. However, if
the building were sold to an IWB member jurisdiction, the value of the water building
would be based on language in the tenancy in common agreement. This says the value
of the building depreciates over time.
Commissioner Carroll confirmed that at the end of 33 years, if one of the IWB member
jurisdictions wanted to terminate its intergovemmental agreement, then that owner's
share in the value of the building would be zero. Commissioners Scheiderich and Winn
concurred.
Commissioner Buehner added all buildings have a lifetime. She noted the money the
City of Tigard had spent to bring the water building up to code.
Commissioner Russell asked what happens if the City of Tigard wanted the water
building property. Commissioner Scheiderich and Carroll responded this could occur if
the IWB member jurisdictions agreed to it. In this scenario the City of Tigard would be
considered an outside party. The property would be appraised and the IWB would
determine the sales price.
Note: The Board returned to agenda item 4.
4. Consider a Water Building Lease with the City of Tigard - Continued
The motion, under agenda item 4, was repeated.
Commissioner Buehner motioned for approval of the water building lease as amended;
Commissioner Winn seconded the motion. The motion was approved by 4-to-1 vote,
with Commissioners Buehner, Carroll, Scheiderich, and Winn voting yes. Commissioner
Russell voted no.
Note: Commissioner Carroll concluded his participation (via speakerphone) in the
meeting.
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6. Consider Making a Recommendation to Owner Jurisdictions Regarding a
PGE Easement on the Water Building Property
Mr. Koellermeier briefed the Board on PGE's request for an easement on the water
building property. He noted the memo incorrectly listed the size of the easement as 6-
feet long by 14-inches wide. The correct size is 6-feet long by 14-feet wide.
The Commissioners made the following requests/suggestions:
• Add language that should the easement no longer be needed, it can be
terminated
• Add language "for use only as"
• Make the easement subject to relocation to prevent a permanent blockage of the
property. The proposed language was "subject to relocation as Grantor deems
necessary"
Mr. Koellermeier said these modifications would be made and resolutions would be
prepared for each IWB member jurisdiction's consideration.
7. Review the Working Draft of the Tualatin Project Title Transfer and Tualatin
Basin Water Supply Project Principles of Agreement
Mr. Koellermeier briefed the Board on the draft principles of agreement. He explained if
a title transfer from federal to local government was pursued, the local government and
its structure needed to be created. The principles of agreement reflected an attempt to
define this local government.
Mr. Koellermeier added liability issues raised by Commissioner Buehner have been
addressed in the document. He also explained even if the dam raise project does not
take place, the existing operation could still be transferred to local jurisdiction. It was
noted the first ten principles would take place irrespective of the water supply project, but
the three additional principles are tied to the project.
The Commissioners made the following comments/suggestions regarding the draft
principles of agreement:
• Requested attorneys Tim Ramis and/or Clark Balfour review the document.
• Address the fact that the irrigation district serves smaller net area.
• Place some kind of constraints on rates the irrigation district could charge
partners for water it is not using.
• Concerns that the dam has depreciated over time and the partners are paying
to rebuild it.
• Concerns over perpetuating a power subsidy to the irrigation district without
making them investigate whether they really need that power.
• Concerns over whether the irrigation district is using power wisely.
• Concerns over subsidizing an inefficient irrigation system that may be obsolete.
• Concerns Washington County wants to be made whole for the park. Suggested
at most to make them whole for net revenue.
• Proposed a ban on motorized watercraft in the reservoir.
Mr. Koellermeier stated the Scoggins Dam facility is not generating any power. Power
generation was evaluated some time ago and did not make economic sense. This will
be reevaluated.
Mr. Koellermeier reported the next draft of the principles will probably be available in
October.
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8. Water Supply Options
Mr. Koellermeier reported on the Lake Oswego water partnership:
• Meeting representatives from the IWB, City of Tigard, and Lake Oswego have
been identified. The IWB representatives are Commissioners Scheiderich and
Buehner.
• Lake Oswego is generating meeting dates.
• Lake Oswego's City Manager is leaving the city. This may impact work on the
partnership.
Mr. Goodrich reported the following:
• Unusually cool weather has resulted in lower water demand
• Demand peaked at 12.4 million gallons per day (mgd) in July
• Demand in recent weeks has been in the 8 to 9 mgd range
• There is 60 day water supply in ASR 2
• One native groundwater well has been shut down due to the lower demand
Mr. Goodrich summarized a Daily Water Demand chart that had been provided to the
Commissioners. The chart is on file in the IWB record. Over the last five years, there
has been a 9.2 increase in service connections and a 6 percent decrease in water
demand.
Commissioner Scheiderich asked for information on disconnecting down spouts from
the stormwater system. He inquired about incentives for such a disconnection. The
Board discussed whether stormwater run off is connected to the sanitary sewer system.
Mr. Goodrich responded to a question raised at a previous IWB meeting regarding the
distribution of a Water Smart Rebate pamphlet. He advised the City of Tigard recently
mailed two information pieces: a Water Rate Changes brochure and a Consumer
Confidence Report (CCR). The Water rate Changes brochure was sent to every water
account in the Tigard Water Service Area (TWSA), and, at a cost of over$10,000, the
CCR was sent to every household in the TWSA. Both items contained information on
the current water smart rebate. Commissioner Scheiderich suggested a rebate
brochure could be included as an insert in the first water bill of the fiscal year and also
requested a date comparison of customer water usage be provided on water bills.
9. Informational Items: None
10. Non-Agenda Items
Commissioner Russell inquired about adding a discussion of the Grabhorn trash dump
to a future IWB or Tigard Water District meeting. There has been some discussion this
dump site has affected the Tualatin River and the water supply. Mr. Koellermeier will
provide a status report on this topic at an upcoming meeting.
11. Next Meeting - September 12, 2007, 5:30 p.m.
City of Tigard Water Auditorium, 8777 SW Burnham Street, Tigard, Oregon
12.Adjournment
Commissioner Scheiderich adjourned the meeting at 6:39 p.m.
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' v/ C -S 1-,4
Greer k Gaston, IWB Recorder
Date:
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