03/28/1994 - Minutes TIGARD WATER DISTRICT
BOARD OF COMMISSIONERS MEETING MINUTES
March 28, 1994
Board Members Present: John Haunsperger, Chair; Commissioners Froude,
Morgan, Mortensen and Pedersen
Staff Present: John Acker, Leslee Gemmill and Randy Volk
1. Call to Order
Chair Haunsperger brought the meeting to order at 7:03 p.m.
2. IWB Update
Commissioner Morgan reported to the Board on the Intergovernmental Water Board
meeting of March 23, 1994.
• The Board elected Peggy Manning as Chair and Bill Scheiderich as Chair-
Elect.
• An update was presented on the Capital Improvement Program. The City of
Tigard Council has agreed to a 90 day extension on the Capital Improvement
Plan and requested all the parties to the Intergovernmental Agreement follow
suit. Murray, Smith and Associates, Inc. hasn't been able to get necessary
information required to complete the project from the Cities of Lake Oswego
and Portland and Tualatin Valley Water District.
3. Interview Consultants - Request for Proposals for Asset/Liability Allocation
The Board discussed with John Acker, City of Tigard Associate Planner, the results
of his phone survey of the two firms and the project managers to be interviewed
tonight. John Acker reported that the feedback was positive.
The Board agreed to make the final decision at the next regular meeting on Monday,
April 4, 1994.
The Board discussed briefly the proposals submitted from Economic Engineering
Services, Inc. and Black and Veatch.
• Commissioner Morgan asked if staff had designated an individual to work
with the selected engineering firm and the Board on the project and expressed
his concern regarding the associated cost to the Board.
Randy Volk and John Acker were tentatively designated as project staff
liaisons.
TIGARD WATER DISTRICT MEETING MINUTES - MARCH 28, 1994 - PAGE 1
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ENGINEERING ECONOMIC SERVICES, INC.
Gilbert Meigs presented to the Board a summary of Economic Engineering Services,
Inc. (EES) proposal for the review and division of assets and liabilities. Mr. Meigs
explained briefly the Scope of Services-Task 7, an optional development of a GIS
System. He informed the Board that GIS is a program that combines mapping and
other data i.e., date of construction, cost, repair record etc.
As identified in Section "E" of the summary, Mr. Meigs talked about the asset
separation and said that at the initial project meeting, the individuals involved need
to talk about and decide on the concepts of "function" and "direction". He also
indicated that clarification is needed regarding the asset allocation formula as it
applies to the entities involved.
Randall Goff, also from EES, talked briefly about the process for the allocation of
debt and use of assessed value. He said the system is highly integrated therefore, a
clear definition and agreement by all parties needs to be reached regarding joint
assets versus jurisdictional assets. He explained that the basis for payment on the
general obligation bonds is assessed valuation and will change every year until paid
in full. Mr. Goff also talked about"contributions in aid" and water services including
meters and mentioned utility property records are rarely detailed enough.
Mr. Meigs mentioned that EES knows how to deal with the above issues and wants
synchronization with the Board.
The Board talked briefly with Mr. Meigs regarding the proposal and addressed a few
questions and concerns about specifics of the proposal.
• Chair Haunsperger asked for clarification on assets not specific to a single
jurisdiction.
Mr. Goff said this issue could be split amongst all four entities or only
between the entities receiving service. He didn't foresee this as a problem as
the Intergovernmental Agreement defines a formula on how assets are to be
split.
• Commissioner Pedersen asked about Task #1 and whether or not at the
completion of Task #1, would the project fee estimate be revised.
Mr. Goff explained the nature of the initial project meeting and replied that
if necessary, EES would be more than willing to revise the project fee
estimate perhaps on a "not to exceed" basis.
Chair Haunsperger requested a monthly progress report on the project at each
regular meeting of the Tigard Water District.
TIGARD WATER DISTRICT MEETING MINUTES - MARCH 28, 1994 - PAGE 2
Staff and the Board talked briefly with Mr. Goff about GIS and its function and
other computer software programs.
• Commissioner Morgan brought up for discussion the Intergovernmental
Agreement and his concern that the firm chosen to perform the project be
familiar with the Agreement. He asked the representatives from EES if they
were willing to advise the parties of EES' professional judgement regarding
each of the issues mentioned in Section E of the summary so that the parties
involved have a target to focus on during the initial project meeting.
Discussion followed regarding the initial meeting and the involvement of the four
entities, the Cities of King City, Durham and Tigard and the Tigard Water District.
• Commissioner Morgan talked briefly about the value of this project and its
usefulness,in the future.
Mr. Goff responded that as a result of the project, EES will provide to the
District, maps and a database developed and customized for the District.
• Commissioner Morgan asked about training available for clients for the
process and procedures for capability to move forward after the completion
of the project.
Mr. Goff said written documentation could be provided for the models used
for a nominal charge.
Chair Haunsperger thanked Mr. Meigs and Mr. Goff for their presentation.
BLACK AND VEATCH
Randy Krueger and Karen Johnson, presented to the Board, an overview of the
proposal submitted by Black and Veatch. Mr. Krueger said Black & Veatch is
pleased and excited about the possibility of being of service to the water district in
the asset and liability division.
Mr. Krueger reviewed for the Board the background of Black and Veatch and its
reputation for long-term relationship with clients over the years.
Karen Johnson presented to the Board, Black and Veatch's financial management
background and discussed the financial management of this project.
Mr. Krueger continued talking about the involvement of the environmental group as
it specialises in sources, supply and distribution of water.
TIGARD WATER DISTRICT MEETING MINUTES - MARCH 28, 1994 - PAGE 3
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Mr. Krueger said he would be the Project Manager for this project and reviewed for
the Board his qualifications.
Ms. Johnson reviewed the project approach, specifically from the collection of data
through the asset identification and allocation. She said a database would be created
and provided to the District.
Mr. Krueger indicated his involvement would be in the District's physical assets and
spoke briefly about the difficulty of the allocation of some of the assets. His firm
feels comfortable and prepared to deal with the challenge of the undefined areas in
the scope of the project.
Mr. Krueger said the work could be accomplished in 60 days and agreed to work
closely with the staff during the duration of the project. He continued saying Black
and Veatch will bring in an experienced team with local knowledge committed to
work in partnership with the District and the firm is excited for the opportunity to
work with the Tigard Water District.
• Chair Haunsperger pointed out to Mr. Krueger the references to the City of
Tigard are inaccurate and explained the Intergovernmental Agreement.
• Commissioner Morgan asked Mr. Krueger if Black & Veatch is familiar with
the Intergovernmental Agreement and Oregon's Revised Statutes regarding
the requirements about allocation of assets.
Mr. Krueger indicated as a result of his discussions with John Acker and Mike
Miller, City of Tigard staff, he is somewhat familiar with the Agreement and
responsibilities and requirements of the Oregon Revised Statutes.
• Commissioner Morgan said the interested parties are anxious to proceed with
this and wanted assurance the four parties would be kept informed of the
effort. He mentioned that some of the records may be somewhat obscure and
asked how Black and Veatch would handle this somewhat difficult situation
in the timeframe indicated and at the price quoted.
Mr. Krueger indicated that some of the assets will be easy to identify and
allocate and others may be more difficult and he felt with the expertise and
knowledge of the groups involved from Black and Veatch, the firm would be
prepared to make recommendations to the parties involved for mutual
agreement and still maintain the level of comfort with the price and timeline
proposed.
TIGARD WATER DISTRICT MEETING MINUTES - MARCH 28, 1994 - PAGE 4
• Commissioner Morgan asked Mr. Krueger as the project is completed and
maps prepared, etc. as a matter of normal practice,did Black and Veatch feel
it was important for its clients to be able to maintain the information and data
was prepared for future use.
Mr. Krueger said, as indicated in the contract, the work products developed
belong to the District and would be designed for staff to be able to keep
current as the need arises.
• Art Pedersen asked Mr. Krueger how long Black and Veatch had been in the
Portland Area.
Mr. Krueger responded that Black and Veatch has been doing business in
Portland for 15 years and opened an office in Lake Oswego in June 1991. He
indicated his firm has done work for the Cities of Portland and Gresham
using project office locations. The Lake Oswego office employs 21 people
and formed as a partnership.
• Art Pedersen asked how many meetings with staff are anticipated.
Mr. Krueger indicated there would be frequent meetings and 3 formal
planned workshops.
Mr. Krueger informed the Board that he appreciated the opportunity to make the
presentation and indicated Black and Veatch would like to be of service to the Water
District.
Chair Haunsperger thanked Mr.Krueger and Ms.Johnson for their presentation and
said a decision would be made at the regular monthly meeting April 4, 1994.
4. Non Agenda Items
A. Chair Haunsperger asked Randy Volk the status of the barb wire fence and
the possibility of trees being planted next to the tank; the sinking hole and
access to the fire hydrant; the dying arborvitaes and finally, the status of the
property damage due to the reservoir leak.
Randy Volk discussed with the Board,the above issues and indicated that City
of Tigard's Park Department Supervisor, Floyd Peoples has toured and
reviewed the water sites and has committed the department to take care of
them. Randy Volk agreed to meet with and discuss these matters further with
Floyd Peoples.
The Board discussed further the policy for landscaping and maintenance of the water
sites.
TIGARD WATER DISTRICT MEETING MINUTES - MARCH 28, 1994 - PAGE 5
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B. The Board of Commissioners discussed briefly the presentations by the Project
Managers from Economic Engineers, Inc. and Black and Veatch.
• Commissioner Froude indicated she learned alot and felt both firms
had a broad overview of the project.
• Commissioner Morgan asked John Acker who he contacted for
reference and input stating he was specifically concerned about the
cities of Tigard, King City and Durham and if they voiced any
reservations, concerns or comments.
John Acker responded he discussed the proposals with Larry Cole,
King City Manager. He said Mr. Cole indicated both firms appeared
qualified. Black & Veatch had national experience while Economic
Engineering Services, Inc. had local experience and overall, he didn't
express a preference but felt EES had good background knowledge of
the system. John Acker said he wasn't able to discuss with Mayor
Jenkins and received no feedback from the City of Durham.
• Commissioner Morgan commented regarding the contract with the firm
and indicated it may prove beneficial for the District attorney to review
it for content and adequacy of the contract.
John Acker responded that Attorney Mardikes has looked at the
contract and approved it's form.
Chair Haunsperger suggested John Acker and Randy Volk share the
responsibility of project manager. John Acker said he felt it would be
better if one individual be designated as project manager and both
would work on it. Randy Volk was designated as staff project manager
to be assisted by John Acker.
C. George Morgan requested an update at the next regular meeting on
the status the compliance with the conditions identified in the
Intergovernmental Agreement.
John Acker responded to Commissioner Morgan's concern regarding
the City of Tigard's request for a 90 day extension for the completion
of the study by Murray, Smith and Associates, Inc. He indicated a
letter of agreement would be available at the next regular meeting.
The meeting adjourned at 9:11 p.m.
TIGARD WATER DISTRICT MEETING MINUTES - MARCH 28, 1994 - PAGE 6