01/23/1995 - Minutes TIGARD WATER BOARD MEETING
January / 1995
2.3
MEMBERS PRESENT: Chair Froude, Commissioners Morgan, Mortensen,
Haunsperger, and Pedersen
STAFF PRESENT: Ed Wegner, Randy Volk, and Sherrie Burbank
VISITORS PRESENT: Jack Polans, Norman and Carolyn Penner, and Carol
Calloway
1. Roll Call
The meeting of the Tigard Water Board was called to order by Chairperson Froude
at 7:00 p.m. with all Board members present.
2. Approval of Minutes
A motion was made by Commissioner Morgan and seconded by Commissioner
Haunsperger seconded to approve the December 12, 1994 minutes. The motion
was approved by a unanimous vote.
3. Visitor Agenda
Jack Polans spoke to the Commissioners in regards to a memorandum from
Finance Director Wayne Lowry regarding a water rate analysis. This particular
item is to be placed on the January 24, 1995 Council agenda. Mr. Polans wanted
to make sure the Commissioners were aware of this agenda item.
Apparently he questioned the expense and indicated that he had spoken to City
Administrator Bill Monahan regarding this issue who informed Mr. Polans when he
asked whether this was a matter that would go before IWB that Mr. Monahan
would have a better idea of how the City would proceed after the January 24
Council meeting. Mr. Polans also stated that Councilor Hunt is now involved with
this matter because Bob Santee expressed a concern to Councilor Hunt that this
was a very expensive cost ($50,000) and one which he felt was not necessary.
Councilor Hunt agreed to review the matter. Mr. Polans felt is was important to
raise this issue to the TWD Board for their review.
Chairperson Froude asked Commissioner Morgan if he was going to cover this
issue in his report. Commission Morgan indicated that although he knew a memo
TIGARD WATER DISTRICT BOARD MEETING -- JANUARY 23, 1995 PAGE 1
was being developed regarding hiring an expert to conduct a water analysis, he
had not seen a copy of the memo until tonight.
Mr. Wegner indicated that he would be covering this matter in his report.
4. Intergovernmental Water Board Update
Commissioner Morgan summarized the January 11 , 1994 IWB meeting. Upon
Chairperson Froude's request, Commissioner Morgan explained the overall role of
the IWB for the benefit of new visitors.
Commissioner Morgan then proceeded with this IWB report. He indicated that the
board received staff reports covering reviewing the long term water supply
contract. He also stated that each member agency must approve or have the
opportunity to approve the long term water supply contract and the capital
improvement plan to assure distribution of water without service interruption to
customers. It will take a 3/4 vote of member agencies to approve any of these
matters. The major criteria for a "No" vote would be based on an engineering data
analysis.
A "short term" interim plan has not been designed at this time. Management of
this plan might be within the responsibility of the City of Tigard unless this results
in implications of the long term water plan.
It was also noted that the City of Tigard basically determines the IWB agenda as
chief purveyor of water representing 70+% of the customers. IWB's primary role
has been to review engineering studies, identify possible alternatives, and select
the best alternative from those identified.
Commissioner Morgan also reported that there are ongoing meetings taking place
with Lake Oswego, but there appears to be some reluctance from Lake Oswego
to relinquish any water rights. It is IWB's understanding that there will be
subsequent meetings to clarify the concerns. Interest has been expressed by
Tualatin Valley Water District to acquire water rights on the Willamette River. They
have also expressed an interest in a sub-regional plan. Principle parties might
include: Tualatin, City of Tigard, Tigard Water Service District, City of Wilsonville,
and possibly Sherwood. There will be further discussion regarding this matter at
upcoming IWB meetings. It is apparent there is a need to discuss effective
program development should Lake Oswego decide to not enter into a contract with
Tigard. There is nothing conclusive at this time; just that it would be explored.
There was a status report on the interim supply involving an inter-connection
between the Tigard Water Service area and Tualatin so TWS can receive 4-5 Mg
of water per day. Several connection point options were reviewed and more
TIGARD WATER DISTRICT BOARD MEETING -- JANUARY 23, 1995 PAGE 2
definitive'information will be discussed at an upcoming meeting. The price would
be about 10-15% above what Tualatin currently pays Portland. The rate seems
to be reasonable and is comparable to the rate we pay with Lake Oswego. The
contract with Lake Oswego expired 12/31/94 so the existing terms and conditions
would be extended as they continue to work out new conditions.
IWB recognized the need to identify costs of the capital improvement plan. As
stated previously, once these costs are identified and reviewed, a 3/4 majority of
the participating agencies is required for approval. This will assure the quality of
water service throughout the participating areas.
Commissioner Morgan stated that the capital improvement plan is extremely
important -- financing and the method of financing will have a direct impact on
future water uses. He talked about budget development and indicated that it will
be finalized during the next few months at which time it will be reviewed by IWB
and subsequently submitted to the City of Tigard.
There was also some discussion regarding representation to IWB due to the recent
elections. Commissioner Morgan stated he was uncertain who would be
representing the City of Tigard and that King City also has a new representative.
He again emphasized that issues still facing IWB is interim supply, long term
supply, capital improvement plan plus any other issues members of the board feel
are appropriate to review or handle.
Commissioner Morgan informed the TWD Board that he does not plan to run for
re-election to the TWD Board. He also noted that since he is the current
representative to the IWB, that someone new will need to be selected to represent
TWD on this board.
Chairperson Froude informed the other commissioners that under Agenda Item #8,
they will discuss appointing a new IWB representative.
5. Election Update
Commissioner Froude asked which other TWD board members were planning to
seek re-election -- Pedersen - No; Mortensen - Yes; Froude - Yes; Haunsperger -
Yes; and Morgan - No.
Chairperson Froude indicated she was aware there were some other people
interested in running for vacant board seats. A brief discussion followed about the
election requirements.
TIGARD WATER DISTRICT BOARD MEETING -- JANUARY 23, 1995 PAGE 3
6. Interim Water Supply
Mr. Wegner indicated the City has not received a written extension from Lake
Oswego yet although they continue to provide water and discussions between the
two city administrators have resulted in a 90 day interim contract which can be
extended every 90 days until the long term contract is implemented.
In developing an interim plan with Tualatin Valley Water District, the City has
authorized their consultant to do a model to make sure we have the proper flows
for Baylor Street, Cascade and Greenburg, and Shady Lane. This model is to be
completed by next Friday. The consultant is Bob Fuller from CH2M; he completed
the water plan for Metzger.
Discussion regarding rate raises followed. Mr. Wegner stated that we will get the
surplus that Portland is not using through Tualatin Valley and that the rate will be
similar to what we are paying to Lake Oswego now.
•
Chairperson Froude expressed a concern that Tualatin Valley might raise their
price to cover their increased costs. However, Mr. Wegner assured the
commissioners that an agreement is in draft stages which will cover the terms over
a 10 year period (with a 120 cancellation clause) specifically designed to allow the
City to get out of the contract upon development of their long term water plan.
Mr. Wegner also indicated that he doesn't believe Lake Oswego will guarantee an
daily amount water while Tualatin Valley is trying very hard to provide this
guarantee.
Mr. Wegner also informed the board members that he composed a memo to all
entities regarding the capital improvement plan. This memo basically puts into
writing the everything that Commissioner Morgan mentioned earlier. This plan
needs to be adopted by IWB so we know where we are going to be buying water
and for how long. Currently, we haven't been doing any CIP projects because we
have been waiting for the adoption of this agreement.
Mr. Wegner indicated that the interim water supply plan would be in place for 1 to
5 years because it is believed it will take that long to get a water production plant
on board.
7. Director's Report
Former Mayor Schwartz and Bill Monahan (City Administrator) met with the Mayor
and City Administrator from Lake Oswego on 12/23/94 to discuss the draft contract
documents. One area of concern identified is the water rights and ownership of
the water system. The City of Tigard wants an equal share. Both mayors were
TIGARD WATER DISTRICT BOARD MEETING -- JANUARY 23, 1995 PAGE 4
hoping to agree on a contract by 12/31/94. Unfortunately, this did not occur.
Discussions are still in progress. Then next step is for Mr. Monahan and Mr.
Wegner to compose a list of issues and concerns (i.e., ownership, guarantee of
water, water rights, etc.) and provide a signal that the City wants to be partners.
The City Council will be discussing this list at tomorrow night's. Two things could
happen as a result of this discussion -- Council could ask staff to continue to work
on this project or the two City Councils may meet to discussion the matter and
determine how to proceed. Apparently Lake Oswego is willing to make a
commitment but they want to assure their residents are covered first. Tigard
continues to hold out for an equal partnership. Staff realizes they might need to
seek further direction from IWB if this option is not possible.
Discussion regarding other possibilities followed. In fact, Mr. Wegner stated that
the City is researching the creation of a third party (water production entity) that
would produce water. The City is also pursuing the Willamette River water rights
with a coalition. However, a coalition of this type may not be viable for another 2
years. It appears that Tualatin Valley Water District and Tigard Water Service/City
of Tigard would be the big players in this coalition. City Council has advised staff
to continue to explore the Willamette River. Staff will be reporting back to Council
next week and to IWB on February 15th.
Commissioner Morgan asked if there was any interest to the west in terms of
agencies such as Beaverton and Hillsboro. Mr. Wegner said that Beaverton might
be interested but they may not have the funds to explore this option now. It is also
possible that some otheragencies might be interested if someone else was willing
to take the first step.
Mr. Wegner let TWD Commissioners know that Randy Volk and Mike Miller were
conducting some hydraulic pumping tests while the tanks are being cleaned to see
if we have the capacity to take on more water.
Mr. Wegner also informed the Commissioners that Violet Yaeger will be the IWB
representative for King City. He also clarified that the Intergovernmental
Agreement stipulates that a representative must be an elected official; this does
not necessarily mean the mayor. The Tigard City Council will decide on their
representative a week from Tuesday when they make their other committee
appointments.
Mr. Wegner asked if Commissioner Mortensen was going to prepare the TWD
budget this year. If so, Finance Director Lowry is ready to start anytime she is.
This can wait until after the election if you prefer.
Commissioner Haunsperger moved and Commissioner Morgan seconded the
motion for Commissioner Mortensen to act as budget chairperson. The motion
passed unanimously.
TIGARD WATER DISTRICT BOARD MEETING -- JANUARY 23, 1995 PAGE 5
Mr. Wegner took a few minutes to share the goals and objectives of the Water
Division with the TWD Board.
Mr. Wegner discussed the objective of the Financial Consultant RFP -- the service
area needs to a financial plan to determine the direction for the next 5 to 10 years
in regards to the cost of service, rate structure, etc. He also noted that it had been
years since a professional rate study was completed. He stated that now is an
appropriate time if we are going to enter into a long term, expensive water plan --
we are going to have to determine the rate charges to customers. A consultant
will look at the books, history, and future direction. Mr. Wegner informed the IWB
at their 1/11 meeting that he and Mr. Lowry would be seeking Council's permission
to prepare an RFP to solicit proposals. Once the proposals have been received,
they would ask IWB to interview representatives of the firms that would be
considered for hiring. A recommendation would then go to City Council. As part
of RFP, firms would be requested to meet with IWB, the Tigard City Council twice,
and the other three entities once.
Discussion followed regarding the logistics for notifying citizens of a public hearing
and the process dates. Mr. Wegner explained the process and stated he hoped
the process would be completed by the end of the fiscal year which would coincide
with the budget.
Mr. Wegner informed the Board that their insurance premium is due and that he
will be processing as previously agreed.
Mr. Polans raised questions regarding the financial consultant contract and
wondered if it will stay under $50,000 and the contract dates.
Mr. Wegner explained the RFP process. The Commissioners also recognized that
there must be proposal before the actual costs are known. More explanation
followed to attempt to help Mr. Polans understand the process.
Commissioner Morgan asked Mr. Wegner if the 71% generated revenue identified
on the first 6 months budget report was high. Mr. Wegner informed the Board that
this was reflective of the increase in meter sales especially in the unincorporated
areas. In fact, this figure exceeds the last year's projections by about 120%.
8. Non-Agenda Items
Chairperson Froude said the Board needed to appoint a new person to IWB.
Commissioner Haunsperger moved and Commissioner Mortensen seconded that
Chairperson Froude be appointed to represent TWD on the IWB. The motion
passed unanimously.
TIGARD WATER DISTRICT BOARD MEETING -- JANUARY 23, 1995 PAGE 6
•
Discussion ensued regarding an early election with the resignation of
Commissioner Morgan. Mr. Wegner informed the Commissioners that it will be
necessary to maintain a forum and that they could decide to fill the unexpired term
before the election. This person would have to run for election in March to fill the
seat in July 1. As long as there is a quorum to do business then one person can
resign and a replacement would not have to be appointed. Discussed this issue
further to assure everyone understood the options and consequences.
Commissioner Morgan stated he would like to resign effective 2/1/95 if this was
agreeable with the other board members. Commissioner Pedersen is intending
to resign effective 3/1/95 if this does not create hardships for the board.
Commissioner Haunsperger commended both Commissioner Morgan and
Commissioner Pedersen for their commitment to TWD and also commended
Commissioner Morgan for his representation on IWB.
9. Commissioner's Comments
No further comments.
10. Next Meeting
February 27, 1995
The meeting adjourned at 9:16 p.m.
sb\twdl95
TIGARD WATER DISTRICT BOARD MEETING -- JANUARY 23, 1995 PAGE 7