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05/14/2008 - Minutes Intergovernmental Water Board (IWB) Meeting Minutes May 14, 2008 Tigard Public Works Building 8777 SW Burnham Street Tigard, OR 97223 Members Present: Gretchen Buehner Representing the City of Tigard Patrick Carroll Representing the City of Durham Julie Russell Representing the Tigard Water District (Arrived 6:06 p.m.) Bill Scheiderich Member At-Large (Arrived 5:34 p.m.) Dick Winn Representing the City of King City Members Absent: None Staff Present: Public Works Director Dennis Koellermeier Water Quality & Supply Supervisor John Goodrich IWB Recorder Greer Gaston Note:Agenda items are recorded in the minutes in the order they were considered. This order varies from the agenda, thus the discrepancy in numbering. 1. Call to Order, Roll Call and Introductions Commissioner Carroll called the meeting to order at 5:31 p.m. 2. Approval of Minutes — March 20 and April 8, 2008 Commissioner Buehner motioned to approve the March 20, 2008 minutes; Commissioner Winn seconded the motion. The minutes were approved by unanimous vote of the Commissioners present, with Commissioners Buehner, Carroll, and Winn voting yes. Commissioner Buehner motioned to approve the April 8, 2008 minutes; Commissioner Winn seconded the motion. The minutes were approved by unanimous vote, with Commissioners Buehner, Carroll, and Winn voting yes. 3. Public Comments: None 7. Water Supply Update Mr. Goodrich reported: • There are 262 million gallons of water in aquifer storage and recovery wells. With the forecast for warmer weather, this source is ready to be brought online. • Current demand is 5 million gallons per day. • Abandonment of Titan Lane well should be finished by the end of week. • Work will begin on the Tigard High School well abandonment on June 17. Intergovernmental Water Board Minutes May 14,2008 1 • Paving is taking place on Bull Mountain Road in conjunction with the new reservoir and transmission line. • Mr. Koellermeier offered the Commissioners a tour of the new reservoir. Commissioners Carroll, Buehner and Winn expressed interest. Mr. Koellermeier proposed the tour could be conducted following an IWB meeting. 5. Discussion of Additional Tenancy in Common Agreements for Properties within the Tigard Water Service Area Mr. Koellermeier provided background on this item. The Board had discussed this topic previously at its September 12, October 10, and November 28, 2007 meetings. Mr. Koellermeier suggested all the properties on the "Potential Properties for Tenancy in Common Agreements' list should be owned as an undivided interest among all the member jurisdictions (Durham, King City, Tigard, and the Tigard Water District). Commissioner Carroll asked Commissioners Scheiderich and Buehner to provide their legal opinions on changing the ownership to tenants in common agreements. Mr. Koellermeier said all the properties, even those outside Tigard City limits, were dedicated to the use of the water supply system. The 150'" Avenue well site was an aquifer storage and recovery test site and is now vacant. The property's importance to the water system will be evaluated during the next master planning process. Commissioner Carroll said if this property was transferred to a tenancy in common arrangement and subsequently not needed for the water system, it could be sold and the proceeds could be placed into the capital improvement fund. Mr. Koellermeier advised individual tenancy in common agreements will likely be needed for each property. Commissioner Buehner motioned that the IWB direct staff to prepare separate cotenancy agreements and deeds for each of the properties listed with the memo dated May 6, 2008; Commissioner Winn seconded the motion. The motion was approved by unanimous vote of the Commissioners present, with Commissioners Buehner, Carroll, Scheiderich, and Winn voting yes. 6. Discussion on Rewriting/Revising 1993 Intergovernmental Agreements (IGAs) between Durham and the City of Tigard, King City and the City of Tigard, and the Tigard Water District and the City of Tigard Commissioner Carroll referred to notebooks provided to the Commissioners which contained all of the member jurisdictions' IGAs and subsequent amendments. Commissioner Carroll suggested each Board member review the agreements and specifically asked Commissioner Scheiderich to review and identify potential discussion points related to the agreements. The Commissioners discussed: • Reviewing existing agreements to identify discrepancies and ambiguities. • Streamlining any future agreement(s). • Rewording any future agreement(s) using clear, understandable terms. • An addendum addressing the proposed water partnership agreement with Lake Oswego, acknowledging the City of Tigard as the signing entity. • Extending the agreement beyond its current expiration date. • Not expanding the service area unless the member jurisdictions agree to do so. • Combining the three existing, separate IGAs into a single IGA, signed by all member jurisdictions. Intergovemmental Water Board Minutes May 14,2008 2 Commissioner Carroll asked the Commissioners to review the existing agreements and bring back recommendations regarding possible revisions, points of concern and interest, etc. with the intent being to create one new agreement for all member jurisdictions. The Board discussed the fact that it would have to decide whether to supply water to areas 63 and 64 and how development might be funded. Existing member jurisdictions do not want to pay for new development. Note: Commissioner Russell arrived at the meeting at 6:06 p.m. Mr. Koellermeier added City of Beaverton staff has said they are not interested in providing water to areas 63 and 64. Areas 63 and 64 are within the City of Tigard's master planning area, but outside the boundaries of the existing service district. Note: Commissioner Scheiderich left the meeting at 6:11 p.m. 4. Review of the Lake Oswego/Tigard Intergovernmental Agreement (IGA) Regarding Water System Facilities, Design, Construction, and Operation Mr. Koellermeier summarized the major points of the 51-page draft IGA. • The IGA is a two party agreement. • Tigard and Lake Oswego agree to jointly fund and develop Lake Oswego's water rights. • Some parts of the project will be built to accommodate the full 38 million gallons per day (mgd), while other parts will be built to 32 mgd and expanded later if additional supply is needed. • Most of Tigard's costs are included in the first phase. • Phase 2 would expand the treatment plant from 32 to 38 mgd and construct a reservoir. • Lake Oswego is the managing partner through the construction period. They will handle permits, banking, etc. • Water rights proposed to stay in Lake Oswego's name, but are pledged to the partnership. • Management structure includes technical and oversight committees. • Tigard's buy-in costs for existing capacity are estimated at $2.7 million. After buy- in, Tigard will be a co-owner of facilities. Tenancy in common deeds will be created for facilities and real property that have title. • Percentage of ownership will be based on capacity. • Lake Oswego will supply Tigard with a billing schedule, and Tigard will reimburse Lake Oswego. • Voting issues are described on page 25. • Curtailment would be shared proportionately. • The agreement addresses withdrawal from the partnership, selling assets, admission of new partners. • There is a dispute resolution clause. • A performance clause will likely be added to the agreement as an incentive. Commissioner Winn noted the "Right to Lease" section on page 34 was confusing. He suggested the section needed refinement. Intergovernmental Water Board Minutes May 14,2008 3 Mr. Koellermeier said the IWB will be asked to make a recommendation on the agreement at their next meeting. If the IWB supports the agreement, then each member jurisdiction will be asked to consider a resolution of support. Commissioner Russell inquired about a financing plan. Mr. Koellermeier said upcoming versions of the agreement will have exhibits detailing Tigard's anticipated costs and proportionate share of the project. An official financing plan will be created once the agreement is executed, and the project will be funded by revenue bonds backed by a series of rate adjustments. Commissioner Buehner added the City of Tigard Budget Committee supported seven percent water rate increases over the next four years as recommended by the IWB. Mr. Koellermeier said the City of Tigard would be responsible for the bonds. 8. Informational Items: None 9. Non-Agenda Items: None 10. Future Agenda Items • Make a formal recommendation on the Lake Oswego/Tigard intergovernmental agreement. • Presentation by Washington County planning staff regarding Areas 63 and 64. • Policy regarding extension of water services outside existing Tigard Water Service Area boundaries. • Review: - Proposed revisions to the credit for leak policy. - Proposed revisions to the Billing and Collection of Utility Charges section of the Tigard Municipal Code. - The billing insert policy. Future agenda items were not discussed. 11. Next Meeting ■ June 11, 2008, 5:30 p.m. Tigard Public Works Building, 8777 SW Burnham Street, Tigard, Oregon 12.Adjournment At 6:38 p.m. Commissioner Winn motioned to adjourn the meeting; Commissioner Buehner seconded the motion. The meeting was adjourned by unanimous vote of the Commissioners present, with Commissioners Buehner, Carroll, Russell, and Winn voting yes. �'> IWB Chair Greer A. Gaston, IWB Recorder Date: `5r9L1 /U v'l DIJ� Intergovernmental Water Board Minutes May 14,2008 4