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03/29/1995 - Minutes 6 � TIGARD WATER DISTRICT BOARD MEETING March 29, 1995 MEMBERS PRESENT: Chair Froude, Commissioners Haunsperger, Mortensen, Pedersen, and Penner STAFF PRESENT: Ed Wegner, Randy Volk, and Kathy Kaatz VISITORS: Jack Polans 1. Call to Order The meeting of the Tigard Water District Board was called to order by Chair Froude at 7: 03 p.m. 2 . Visitor' s Comments Mr. Jack Polans questioned whether Mr. Wegner would be in attendance. It was stated that he would be late and Mr. Polans said he would talk with him later. Mr. Polans discussed the RFP for rate study and the necessity of hiring a consultant . 3 . Approval of Minutes Commissioner Haunsperger moved and Commissioner Mortensen seconded approval of the February 27, 1995 minutes as submitted. The minutes were approved unanimously. 4. Resignation and Appointment of Commissioners Chair Froude stated that the Board would not be appointing new Commissioners at this meeting since the Elections Division has not completed the vote count. After a discussion by the Board, it was decided that they would appoint Mr. Penner at the end of the meeting for the interim position. 5. Information on Policies for Emergency and After Hour Calls Mr. Volk stated that the Water crew has six employees that rotate on a weekly basis that are on call twenty-four hours a day. After 5 : 00 p.m. the phones in the main office are switched to the answering service in Beaverton (Calls Unlimited) . The service will then reach the on call person via a pager or cellular phone. Mr. Volk stated that if the caller wants to speak directly to the employee that is also possible. Mr. Volk stated that this system works `all the time. r i • 6. Intergovernmental Water Board Update - Froude Chair Froude stated that the Intergovernmental Water Board met twice during the month of March (8th and 22nd) . Ms . Froude stated that she had some information available that was provided to the IWB (Draft of the City of Tigard, Rules, Rates and Regulations, Draft of 1995/96 budget) . The IWB approved to go before City Council the proposal for water rate study, which the City Council passed and it will then be advertised. At the March 22nd meeting, Mike Miller made a presentation on pulling the wells #2 and #3 with costs ranging from $29, 000 to $40, 000 . The IWB recommended to accept the bid from Mather and Sons . Commissioner Haunsperger questioned the age of the wells . Mr. Miller stated that well #3 (South of Walnut/135th) was drilled in 1958 and #2 (SW Gaarde/119th) was drilled in 1940. Mr. Miller stated that this cost involves pulling and reinstallation of the pump, and the repair costs which have been estimated since what repairs are needed is unknown until the pumps are pulled. The IWB also discussed the interim water supply and the Baylor Street intertie connection at the cost of $91, 000 . This will include a water main, 650 feet of 12" main, a valve vault and a 1596 contingency and Tigard' s share of the Florence Street meter replacement. This will allow the supply of water from the Tualatin Valley Water District through this intertie with a capacity of 2 mgd which is based upon a study completed by CH2mHill . Chair Froude shared a matrix of the available funding for these projects. Commissioner Haunsperger questioned the need for the Menlor Reservoir? Mr. Wegner stated that funds had been placed in the budget to complete site work and preliminary design work. It was decided that before working on another reservoir, we are in need of a supply. Mr. Wegner stated that since we will not be spending all the Menlor Site improvement funds, they will be used for the pulling of the wells. Chair Froude stated that the IWB was also provided a copy of a draft agreement between the City of Tigard and Tualatin Valley Water District for the interim water supply. Chair Froude stated that the IWB made some significant corrections which are not reflected in this draft copy. Mr. Wegner stated that one of the significant recommendations was the assessment of liability throughout the contract (prior to the intertie belongs to Tualatin Valley, after the intertie bel9ngs to Tigard) page 10 . Also on page 5, a change will be made that will outline water quality and who the responsible party will be. Mr. Wegner stated that these changes have been submitted Tigard Water District Board Meeting - March 29, 1995 Page 2 to the City attorney and the new draft will be submitted to Tualatin Valley Water District and will be back hopefully before the Tigard City Council on April 11th. Commissioner Haunsperger questioned how the rate of . 78 per 100 cf was determined? Mr. Wegner stated that there is a breakdown of the cost on page 6 and 7 of this draft agreement . Commissioner Pedersen questioned the rate we are currently paying for surplus water? Mr. Wegner stated that Portland is currently charging us 54.9 which is going to go up to 1.26 which may not be a final cost. Lake Oswego is currently charging us .57 and the cost in the future is unknown. Chair Froude stated that it was important to look at page 2 item 1 (a) that discusses the understanding that this is an interim measure until the City can secure a permanent source. Ms. Froude stated that the a final draft will go before the City Council on April 11th and the next IWB meeting will be April 19th. Mr. Wegner stated that the RFP will determine the rates for future costs. At this point we do not anticipate a cost increase due to these rates. Commissioner Mortensen questioned if there was any discussion regarding termination for one year (page 11) ? Mr. Wegner stated that this would give both parties some flexibility if needed. Commissioner Haunsperger noted that the rate of . 78 per 100 cf is for less than 10% of the peak needs . 7 . Update of Water Conservation Mr. Wegner stated that we will be doing a newsletter (insert) for the April/May billings. This newsletter will include the Mayor' s letter and a letter by Mike Miller on water conservation in yards and around the home. We are also in the process of picking up through the Regional Supply Plan, two brochures as an insert on water conservation as well as the timetable on the Regional Plan. Mike Miller is currently drafting a letter to the local businesses regarding wise watering and will also have available staff for consulting purposes. Chair Froude stated discussed an article in "This Week" on gardening workshops which are being held at PCC. Discussed the possibility of providing these workshops for the, service area. Tigard Water District Board Meeting - March 29, 1995 Page 3 4 Randy Volk stated that he is a member of the Water Coalition and they are considering the possibility of grocery sacks with water conservation messages, and also the possibility of publicizing at the Tigard Cinema in regards to water conservation. The next meeting of the Water Coalition will be April 13th. Visitor, Pamela Moyers stated that some areas advertise in the newspaper, residents who abuse the use of water. The Board discussed the inverted rate structure which is currently being done by Tualatin Valley, Hillsboro and Portland. Mr. Wegner mentioned that the involvement for the NW Gas conservation program was quite successful . Tigard sent out 6,000 offers with 4, 102 households requesting packages with 7, 000 showerheads being installed within the service area. Mr. Wegner stated that the Regional Participants met yesterday and discussed their public involvement program which will include newsletter, stuffers for all twenty-seven agencies via billing, targeted interest groups, pubic forums, tv spots, cable video production. The City of Tigard will have a slide show at the Intergovernmental Water Board meeting (4-19-95) and will invite elected officials from the four entities to preview as well as the public. The Regional Plan Draft will be available to the IWB in June and hopefully in November will be approving the final copy. Visitor, Norman Penner stated the importance of getting a couple of the major news stations interested in featuring the issues of water. 8. Director's Report Mr. Wegner stated that we are moving ahead with the wells, the Baylor Street intertie, and work on the large reservoir. Mr. Wegner stated that we did receive a letter from the City of Lake Oswego which stated it was the second extension. The first extension expired March 7th and this extension will go through May 15th. Mr. Wegner stated that last evening, Murray Smith and Associates met with City Council in Executive Session to discuss some of the stumbling stones being incurred in negotiations with Lake Oswego and how to deal with those areas . The City Council will meet again on April 11th with Murray Smith to work out some language and some feasibilities to proceed with Lake Oswego. Mr. Monahan did go into Executive Session with the IWB. . Tigard Water District Board Meeting - March 29, 1995 Page 4 It was requested by Commissioner Haunsperger that the notice of Executive Session be placed on all future agendas . Visitor, Jack Polans questioned on page 4 on the minutes (2-27-95) it states that the agreement will assign water rights to a new agency. Could this new agency be referred to as a shell with no police powers? Mr. Wegner stated no. Mr. Polans questioned when this new agency would come into position? Mr. Wegner stated that the two phases mentioned in those minutes were two areas of concerns. He stated that the first phase of concerns have not been agreed upon as yet . Mr. Wegner stated that this new agency will only be in existence when a final document is arrived at between the two parties . Mr. Wegner stated that he had provided the Board with the monthly report on revenues and expenditures and working within the department, income statement for February and the progress report of the Participants Committee, and the Regional Water Supply Plan. 9 . Non Agenda Items Commissioner Mortensen stated that she had received a letter from Wayne Lowry regarding the remaining payoff of the debt for July 1 of 1995 and the principal amount being due January 1 of 1996 (bond indebtedness) . Commissioner Haunsperger made a motion to accept the resignation of Art Pedersen and was seconded by Commissioner Mortensen and passed unanimously. Chair Froude thanked Mr. Pedersen for his service on the Board. Mr. Pedersen stated that he has enjoyed his association with the Board and that he felt that the staff was doing a very good job. Commissioner Haunsperger made a motion to appoint Norman Penner for an interim Commissioner position to fulfill the position created by Art Pedersen' s resignation until the Board is sworn in June. This motion was seconded by Commissioner Pedersen and a unanimous voice vote. Mr. Penner was then sworn into office. Chair Froude stated that the next meeting date will be April 24, 1995 with the IWB meeting set for April 19th. Mr. Polans questioned the reference of the City of Tigard' s need for a huge study that would require a scientific engineering constructive study which includes a program. Mr. Wegner stated that it is called a model and it has a matrix used by a lot of people with figures that are relative to the study they do regarding Tigard' s water system. Mr. Polans questioned this study running over ten million dollars? Mr. Wegner stated that this study will cost $25, 000 which will Tigard Water District Board Meeting - March 29, 1995 Page 5 n i include the rate study and provide a computer model. Each year we will be able to insert new financial data and project what the rates should be for the coming year. Mr. Polans questioned the City' s need for a consultant to complete this study. Mr. Wegner stated that Mr. Polans could speak with Mr. Monahan. Chair Froude stated that this has already been passed by the City Council . Commissioner Mortensen questioned seeing the resolution that was passed by the City Council on annexation. Mr. Wegner stated that this resolution was passed the previous night by the City Council (3-1) to rescind the ordinance on island annexation. Mr. Wegner stated that he would provide the Board with a copy of that resolution. Commissioner Haunsperger questioned receiving a copy of the budget which Mr. Wegner stated he would provide. The meeting was adjourned. Tigard Water District Board Meeting - March 29, 1995 Page 6