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06/01/1998 - Packet TIGARD WATER DISTRICT BOARD D of COMMISSIONERS MEETING Serving the Unincorporated Area AGENDA Monday, June 1, 1998 7:0©p.m. 1 Call to Orden 2 ROI!Call and introductions 3. Approval of April 27,.1998 (Regular and Budget Meeting) 4.. Public Hearing 1998/99 Proposed Budget 5. 1998/99 Budget Approval 6. Intergovernmental Water Board Update 7. Operation Manager's Report Non-Agenda Items 9. Adjournment.: Executive Session: The Tigard Water District Board may go into Executive Session under the provisions of ORS 192,660 (1) (d), (e), & (h)to discuss labor relations, real property transactions, and current and pending litigation issues. All discussions within this session.are confidential; therefore nothing from this meeting may be disclosed: by those present Representativesof the news media are allowed to attend this session, but must not disclose any information discussed during this session; pw iwdl6-7.agn BOOK COPY TIGARD WATER DISTRICT BUDGET COMMITTEE MEETING APRIL 27, 1998 MEMBERS PRESENT: David Strauss, Gretchen Buehner, John Haunsperger, Beverly Froude BUDGET COMMITTEE PRESENT: Wally Groce, Noel Johnson, Rod Kvistad, Randy Livingston, Betty Thatcher MEMBERS ABSENT: Norm Penner STAFF PRESENT: Mike Miller, Wayne Lowry VISITORS: The Tigard Water District Budget Committee meeting was called to order at 6:00 p.m., at which time the meeting was turned over to the committee chairman David Strauss. Chairman Strauss introduced the 1998-99 budget committee members, Wally Grouse, Noel Johnson, Rod Kvistad, Randy Livingston, and a missing member. Commissioner Strauss added to the budget letter that it is a simple budget, as we are not an operating body as far as operating a water department. We are an administrative organization to look out for the interest of the people who are in the unincorporated area of Tigard, and served by Tigard. He added that his opinion of a budget is a guideline. It's not where every dollar goes, but a guideline where figures can be moved within the budget. At that time, Commissioner Strauss turned the meeting over to Wayne Lowry, Finance Director for the City of Tigard. Mr. Lowry stated that the budget this year is almost a carbon copy of last years budget. The basic fund is the Tigard Water District General Fund. Three or Four years ago there was a service levy debt that had to be approved as a budget committee. That levy has matured and has been paid, which leaves us the General Fund. There are two revenue sources. In your agreement with the City of Tigard, Durham and King City have a similar agreement, you receive one percent of the water sales in your area as revenue, like wise checks are sent to the City of Durham, and City of King City for 1 percent of water sales in their area. The City of Tigard is keeping your books, we do a journal entry to include that revenue in your budget. That figure this year is $9,300.00, which looks like a huge increase over last year, but the actuall one percent that we gave you this fiscal year was $9,200.00. Which is larger than was anticipated for the budget. We invest your funds, including your funds with the city funds for investment purposes. Your allocated interest is approximately $1,500.00. The other Iarge balance carried forward is $35,000.00. In the original agreement between the district and the city, there was $30,000,00 placed in the account for your board when the withdrawal from the district took place. The total resources for this coming fiscal year is $45,000.00. Your have no employees, no personnel costs, and no capitol outlay for equipment or improvements. $18,240.00 is in the budget for materials and services, 15 percent of that amount has been set aside a contingency. With the contingency amount in there, the Tigard Water District Board by resolution can get to $2,700.00 without re-authorizing. The Tigard Water District Budget Committee-04/27/98 t contingncy is for items that come up unexpected, you are giving the board the authority to spend the additional $2,700.00. Mr. Lowry opened for questions. Gretchen asked on the boundary commission dues, if the boundary commission is going out of existence this year, and we are on fiscal year, do these dues reflect the budget for calendar year 1998, or for the fiscal year? Wayne stated that the city and the district notices are sent here, and we budget for the city budget. He was not sure when exactly the boundary commission is going out of existence. Gretchen stated September 30, 1998. Gretchen also asked how Wayne Lowry is paid? He stated that he gets paid out of the meeting staff support. Also Nancy Johnson who puts the budget together, her time as well as Wayne's is charged to that account. Beverly Froude asked where the $9,300.00 is? Wayne stated that it is in the revenue. He explained that $8,300.00 was budgeted for the current fiscal year, but $9,300.00 is budgeted for the coming fiscal year because this fiscal year. The 19 percent was $9,200.00, That fluctuates based on water sales, within your boundaries. Gretchen Buehner asked how much territory did we loose this year due to annexation? Mike stated that he doesn't know the total acreage. It didn't amount to a lot, because a lot of the parcels that were annexed were single family residential, and there was also a lot of growth. It was asked if there was a reason why there is such an increase in the meeting staff support? Mr. Lowry stated it all depends on what the board plans to do. If you need staff people to come and present presentations about various issues, it will be higher. We are trying to provide enough dollars to get the job done. Mr. Strauss asked if they were speaking of the $5,000.00. Mr. Strauss stated that in the letter in the second part of the first paragraph that he requested an increase in that fund and keeping the high figure for public relations. My reasoning is with the Willamette River project going on, investigating the new water sources, I feel there may be a great deal of meetings, and staff time. John Haunsperger stated that their meeting were every other month, but with all the activity with the Willamette Water actions taking place, we have increased our meetings to once a month. It is necessary to have more staff time. It was asked by one of the budget members, how much interest the Tigard Water Board has when it comes to the Willamette Water? Mr. Haunsperger stated that they can give their opinions, and advice. Commissioner Froude stated that we have one member on the Intergovernmental Water Board, which represents King City, Durham, Tigard, and TWD and we give our information to that person. Also anyone is welcome to come to the Intergovernmental Water Board meetings, and speak. We do have direct input to the Intergovernmental Water Board. We can also follow up by going to the city when they make a decision. On an agenda item, we can go and say what we want as a board, or as a citizen. We are pretty well informed as to what is going on. Mr. Lowry pointed out to the board what the actions of the meeting tonight are needed to as a committee; pass a motion to approve the budget as proposed, or as amended. We will then advertise a meeting of the Board, and have another hearing sometime in June, and at that hearing the Board will actually adopt the budget. The Board can amend the budget at that time also. Commissioner Strauss asked about engineering services. He stated that we are down to $2,500.00 in engneering services, and there is no history in the past two years of spending the money. His question was why do we need engineering services? Commissioner Haunsperger Tigard Water District Budget Committee-04/27/98 stated that it was a carry over from the past when they did use engineering services, and have never gotten rid of it. Mr. Lowry stated that when the withdrawal of the district took place that board was thinking that they may want to hire their own independent engineer. Commissioner Buehner stated that now would be the time that we would want that money available in case we want someone else to come in and take a look at the plans. Commissioner Strauss made a suggestion that the figure be reduced since it has not been used, and that it would still remain in the budget, and can be moved. He suggested that the amount be reduced to $1,000.00. Commissioner Buehhner stated that hiring an outside engineer is expensive, and the figure allocated is very conservative. It was stated that they may need engineering services withn the study of the Willamette River. It was stated by a Budget Committee member to leave it another year. Commissioner Strauss questioned the $800.00 as an election expense, and no elections are planned for this year, also, under advertising, publication for unplanned elections. Again, if no elections are planned for this year, it should be put in the contingency fund for planned elections. Mr Lowry stated that the $800.00 was an oversight, and should have come out. Commissioner Haunsperger stated that he is up for election in 1999. It was suggested to leave the money in there. Commissioner Strauss asked for other questions or comments on the budget. It was questioned, in terms of public relations, there has never been anything sent out from this board to people paying taxes. Commissioner Froude stated that one letter was sent. She also stated that everyone in the Tigard Water District should have received a blue flyer about the Willamette River, and said it would be a good idea to keep the funds in there, as there may be more information sent out. Commissioner Haunsperger asked Mike Miller how much of the money was spent? Wayne Lowry stated that in 1996-97, there was $1,261.00 spent. Wayne Lowry stated that if the budget were to be adopted as proposed, you are going to have an ending balance the beginning of next year of$24,000.00, if all moneys in the budget were spent. Commissioner Buehner asked if the attorney services mentioned, are the Tigard attorneys, or outside council? It is outside. With no further questions, Commissioner Strauss asked for a motion to recommend this budget to the Tigard Water Board. A motion was made, and seconded. Motion carried. Commissioner Strauss thanked the members of the Budget Committee, and the city staff for all their work. John Haunsperger encouraged everyone to attend the Tigard Water District meeting. The Tigard Water District Budget meeting was adjourned at 6:35 p.m. Tigard Water District Budget Committee-04/27/98 MIKE MILLER TIGARD WATER DISTRICT BOARD OF COMMISSIONERS MEETING APRIL 27, 1998 Members Present: David Strauss, Gretchen Buehner, John Haunsperger, Beverly Froude Members Absent: Norm Penner Staff Members Present: Ed Wegner, Mike Miller 1. Call to order: The meeting of the Tigard Water Board of Commissioners was called to order by John Haunsperger at 7:00 p.m. on April 27, 1998. 2. Roll Call/INTRODUCTIONS: All members were prestnt at the meeting with the exception of one. 3. Approval of the March 23, 1998 minutes: Gretchen Buehner stated that there is an error in the minutes, first page, second to the last paragraph, in regards to the steelhead. If the steelhead get protected, then the city of Portland would not be able to raise the level of the dam, but would have to lower the water level. Commissioner Haunsperger asked for a motion to approve the minutes. The motion was moved to accept the minutes by Commissioner Froude, and seconded by Commissioner Buehner. Minutes were approved. 4. Intergovernmental Water Board Update: It was stated that the next Intergovernmental Water Board meeting will be held on May 20, 1998, at 5:30 p.m. It is normally held every other month, on the 2nd Wednesday of the month. 5. Operation Manager's Report: Mike stated that included in the packet was the resignation letter from Michelle Wareing, as recording secretary. It is being worked on to have the recording secretary position contracted out. Commissioner Froude stated to have this work, each person who is speaking needs to announce their name. Mike stated that we used 5 mgd this week. Gretchen asked it that is unusual, and Mike,stated it is pretty early in the year. The change is due to the weather. , _. Ed spoke to the board members on the Willamette. Ed stated that it would be easier for him if he could speak on the Willamette at the IWB Board Meeting, and that the TWD Board members Tigard Water District Board Meeting-April 27, 1998 attend. Due to the rapid changes it would be hard for both boards to receive the same information. Ed stated that Wilsonville will participate with the City of Tigard, and Tualatin Valley in a preliminary engineering plan for the design of the water treatment facility on the Willamette. Tualatin, Sherwood and Wilsonville have agreed to be partners, so now we can get started. This is important, because up until now, we were paying for it all. Commissioner Buehner asked what the population base is that covering. Ed Wegner stated that it is over a 100,000. Commissioner Froude asked about Tualatin Valley participating, if that is different from Tualatin Valley bringing pipes and water to the Tulatin Valley Water District. Ed stated that Tualatin Valley has agreed to participate in the engineering study. During that study, they will need to make some decisions. They have already said that they would not participate in the water treatment plant itself. They will help purchase the property, but they will not give us any money for the treatment plant. They are leaving open upsizing of mains and the intake, that decision will come in the next 6 to 8 months. Commissioner Froude stated that TVWD does have another water source. Commissioner Buehner asked if they got water from Haag Lake? Ed stated that they get their water from the Barney Reservoir,in the coast range, and from Portland. Commissioner Strauss asked why anyone would participate in the land, but not the treatment? Ed Wegner stated because they already have two other sources, and are paying for the second one. They just ran a bond issue to raise the Barney Reservoir and put in transmission lines. Commissioner Haunsperger stated that they have the rights to the water on the Willamette, no one else does. The City of Wilsonville will be purchasing the Young property, which sets down on the river. Tualatin Valley and Tigard have delayed their decision to help purchase that property at this time. We are looking at another site in Washington County to put a treatment plant on. Wilsonville knows that. If this other property works out, Wilsonville will either re-sell the Young property or use it for something else. The prison will be in Wilsonville. We have had a river hydraulic study, for river flows. We have had two meetings with the financial people of the agencies, to see how we start financing. One of the very important issues in the financing, to see that this all comes together, is that we do it within a 6 month period of time. We are working on the final draft. What concerns us is the $6.4 million, that is the agreement between the Department of Corrections, Wilsonville and Tualatin Valley Water District. The Department of Corrections will give $3.6 million to Wilsonville for long term supply, and the remainder will go to Tigard and Tualatin Valley Water District. Any agreement with the D.O.C. will be signed contingent upon the governors decision, after June 21, 1998. That will be the new date for the alternate site. Other than the hydraulics of how Wilsonville and Tualatin Valley Water District will get water to the prison site during the interim period, is a done deal, no matter which site D.O.C. goes to. It's not up for grabs. When they want to do it, they want to put it into the context that it will either be on the alternate site or the Dammasch site. We will draw that money off for construction of a treatment plant. Some people have asked D.O.C. to use that money for the preliminary engineering, D.O.C. has said no it is only for construction. Commissioner Buehner asked what the budget for the preliminary engineering study is? Mr. Wegner stated $384,000. The lead company is Murray, Smith& Associates. They have five Tigard Water District Board Meeting-April 27, 1998 entities working for them under one contract. Commissioner Buehner asked how the $384,000.00 will be allocated? Mr. Wegner stated that it is based on a capacity share of a 40 mgd plant. It will produce 40 million gallons of water a day. It figures out that Tigard will pay 42 percent, Wilsonville will pay 20 percent, Tualatin will pay 11 percent, Sherwood will pay 11 percent, and Tualatin Valley Water District will pay 16 percent. Commissioner Buehner asked if we are the biggest entity other than Tualatin Valley? Yes, because we are the ones that will need it the most. We're building for half of that. If we were doing it on our own, we would be building a 20 million gallon plant. This will hold us now until the year 2020. The new revised schedule, as of today, has the completion date as May 1, 2002. This 40 million gallon water plant will hold us for 18 years. The other contract that we will have will be a Raw Water Monitoring Contract, with Montgomery Watson setting up a Raw Water Monitoring Program. The cost will be $65,000.00 per year. Mike Miller and Rich Sattler will be administering that contract. We will be starting to collect water samples the end of May. Commissioner Buehner asked that in this study is anyone going to address the issue of the Newberg Paper Mill in regards to the deformed fish? Mr. Wegner stated that when they go to the OEC Meeting on May 13, our position is to stop complaining about the river being polluted, and start cleaning it up. The Governor has stated that a key issue for the next two years will be to clean up the rivers. The cost of the Raw Water Monitoring Program will be shared by Tigard, Tualatin Valley, Sherwood, Wilsonville, Tualatin, and the other three members of the Willamette Water Supply Agency, which include Canby Utility Board, Clackamas River Water District, and Gladstone, as they will be using the Willamette in 5 years. As of today, the preliminary engineering plan should be done the first of December 1998. That gives everyone from January thru June of 1999, time to put their financing into place. The first major report is due the first of August 1998. Once we get that we will be able to start comparing figures. The design and construction will be from the summer of 1999 thru the year 2002. Commissioner Buehner asked when our contract with the City of Portland expires? Mr. Wegner stated 2007. The first one expires in 2003. For revenue bonding, we do not need a vote of the public. You set your rates, then there is a grace period of 60 days in which people can petition. If they get x number of signatures, then it goes to a vote, but if not, then the rates are raised accordingly. Wayne is working on it now. How long will this rate that we are allocating for the revenue bond be in effect? Most bonds would be paid in 20 years. With the population increase, it would have an impact on how fast it would be paid back. It would, and we are going to charge part of this to SDC, because we know what our peaks have been in the last couple of years, and we will be able to stager that, and show the difference in what we need for normal usage, and charge it off to growth. That will have an impact on how much we will have to borrow. Also, how much money we have in reserve, and are willing to put forth to this project. If we can prove that the Willamette River is a good safe drinking water source, or that we can make it that way, we will have water forever because of the water rights with Tualatin Valley. Why would we go with a 25 to 30 year contract with Portland and pay 10 times as much? The City Scape has in it that we will be having a citizen involvement meeting on May 7,at-7 p.m., at the Senior Center. We will have a breakout session on water quality, and we will be bringing Lisa Obermeier from Montgomery Watson. The OEC public forum will be on May 13, 1998. The second newsletter will be going out the week of May 11, 1998. The second newsletter will Tigard Water District Board Meeting-April 27, 1998 .! s be water quality and treatment plant explanation. This letter will be on water quality, on the treatment process, what is ozone, what it's all about, and it will answer some of the questions we received from the first newsletter. The June newsletter will update people on the preliminary engineering, and where we are on our evaluation of all the studies. In regards to a study that Tualatin Valley and Tigard asked Montgomery Watson to do, is the background of the Willamette. The study surveyed the water quality in some of the major american rivers. They looked at 10 different rivers; Willamette, Delaware, Sacramento, Missouri, Colorado, Ohio, and the Red River. All of these rivers have drinking water plants. The Willamette River is 270 miles in length, the 10th largest river in the United States based on flow. The water shed is forested 70 percent, while the remaining land use is divided among agriculture at 22 percent, and urban use at 5 percent. Based on the findings, the Willamette River can be considered an acceptable source of drinking water. We have done more research and studies than that of the other cities listed, using much more polluted water. Commissioner Buehner stated that she has spoken with two of the candidates running for Tom Brians seat, and they are getting calls from voters in regards to their concerns on the Willamette. Commissioner Buehner asked if the city council meetings are taped? Mr. Wegner stated that one meeting a month is. Ed stated that we always have had something the water that is taped at the city council meetings. The Tigard Times has ran articles, and soon Tualatin, and the Valley Times will run articles. We are setting up a meeting with King City, the Regal Courier and The Oregonian next week. Mr. Wegner stated that the people will read the City Scape and the newsletters before the newspaper. Commissioner Buehner suggested having a meeting in King City. Gretchen asked how long it will take to make the decision on the land? Mr. Wegner stated by mid June at the latest, because we need that to get into how much it is going to cost to build the facility, etc. 6. Non-Agenda Items: Commissioner Froude asked if they found out the water rates based on OEC's report. Mike stated that in 1994, on a residential 5/8 x 3/4 inch meter, the monthly fee was $7.70, which included 400 cubic feet of water, and anything over that was $1.32. Currently, the fee is $3.56 for a two month period. This fee pays for producing the bills, and reading the meter. For every 100 cubic feet it is $1.32. Basically that rate is the same. 7. Adjournment: The meeting was adjourned at 8:30 p.m. Tigard Water District Board Meeting-April 27, 1998 Tigard Water District Resolution No. 98-_0 1 A RESOLUTION OF THE TIGARD WATER DISTRICT APPROVING THE BUDGET AND MAKING APPROPRIATIONS FOR FISCAL YEAR 1998/99. Whereas,the budget for the Tigard Water District for the year beginning July 1, 1998 was duly approved and recommended to the District board by the regularly constituted budget committee at its meeting on April 27, 1998,after proceedings in accordance with Chapter 294, Oregon Revised Statutes;and Whereas a summary of the budget document as required by Chapter 294.416 was duly published in the Tigard Times in accordance with Chapter 294.421;and Whereas a hearing by the Tigard Water District board on the budget document, as approved by the budget committee, was duly called and held on June 1, 1998, whereat all interested persons were afforded an opportunity to appear and be heard with respect to the budget. NOW,THEREFORE, BE IT RESOLVED by the Tigard Water District Board that: Section 1: The Board adopts the budget for 1998/99 in the total sum of$20,940. Section 2: The amount for the fiscal year beginning July 1, 1998 and for the purposes shown below are hereby appropriated as follows: General Fund Materials And Services 18,240 Contingency 2.700 Total 20,940 This Budget is hereby adopted and appropriated by the Board of Commissioners, Tigard Water District, on June 1, 1998. Ti.- d ,at:�D�trict .r4 i4 widl s..4 A n ', ' J. 'n Hau F• •rger, :01:rd ii hair i Date ATT .T. / /_ Dave Strauss • • Budget Officer