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08/30/1999 - Minutes f TIGARD WATER DISTRICT BOARD OF COMMISSIONERS MEETING AUGUST 30, 1999 Members Present: Gretchen Buehner, Beverly Froude, Norm Penner, George Rhine, David Strauss Staff Present: Ed Wegner, Mike Miller Visitors Present: Jane Turner (KC City Manager), Chris Gilmore (KC Attorney), Doug Comstock (KC Council), Roel Lundquist (Durham City Manager), Bill Scheiderich (IWB and Durham Attorney), Tim Sercombe and two citizens. 1. Call to Order The regular meeting of the Tigard Water District Board of Commissioners was called to order at 7:03 p.m. 2. Roll Call and introductions Roll call was taken with all members present. 3. Intergovernmental Water Board Update Commissioner Buehner discussed the scope of Services contract with CH2M Hill for a Water Rate Study Update. The proposal is for $18,400 to conduct an evaluation of our current rate structure, to review the impact of the wholesale water rate increase from Portland and our ability to maintain our one million dollar annual set aside for capital improvement project expenditures. The proposal will only look at our present system and not the potential 42 million-dollar revenue bond issue for capital improvement. Commissioner Buehner discussed the proposed agreement to increase the 1% contribution to the Cities and District based on the water sales in each respective entity. The original IGA was designed to allow these funds (1% contribution) to be used however each entity desired. If it were decided that an increase was necessary for a special fund, then the length of time and determination of the increased percentage would need to be identified. At the IWB meeting an attorney's draft of an amendment to the IGA to allow these figures to be adjusted was passed out. Commissioner Buehner also informed the Commissioners that the Lead and Copper monitoring results from Portland was distributed to IWB members. Also distributed was the Columbia-Willamette Water Coalition Report, which outlines projects that Tigard is involved with jointly with other agencies and a report from Kim Swan, Water Quality and Conservation Program Coordinator, on Tigard's youth education annual report. 4. Utility Manager's Report Mr. Miller informed the Board that he had just received a memorandum from Loreen Mills, Risk Manager, regarding insurance. Mr. Miller stated that, if the Board so chooses, Mr. Drew Bolliger (TWD's Insurance Agent of Record) can be present at the TWD Meeting Minutes Page 1 August 30, 1999 September 27, 1999, Board of Commissioners meeting. The Commissioners were in agreement that they would very much like to meet with Mr. Bolliger and discuss TWD insurance coverage and the role and responsibilities of the Agent of Record. Mr. Miller then discussed peaking, how Portland water was purchased last summer and the reasons why we could not take advantage of the new peaking method last summer. Mr. Miller went into great detail in the methodology of Portland's peaking calculation of taking the annual average purchase from Portland Monday through Friday and then taking full flow from Portland on the weekend. This method had worked great for us in the past, but last summer we experienced an extended hot weather pattern at the beginning of the week and we could not fully recharge the reservoirs on the weekend. In addition, City of Lake Oswego could not deliver any water to Tigard for a 60-hour period. Because Lake Oswego could not deliver any water, and we had to drop back to our annual average starting at midnight Sunday night, we had to purchase additional water from Portland to maintain firewater reserves. Mr. Miller then discussed the new method, which Tigard has been utilizing for this summer. Mr. Miller stated that a recent newspaper article, by Ms. Linda Ames, was very critical of the City and how it manages the purchase of water from Portland. A general discussion of newspaper articles from citizens on the Willamette River option ensued. 5. Non Agenda Items Commissioner Strauss stated that the minutes from the TWD Board meetings continued to be late and that the agenda's were not coming out until the day of the meeting. Commissioner Strauss asked City staff if TWD should hire a secretary to complete the minutes. Mr. Wegner stated that Public Works has a high rate of turn over recently in the area of office assistance. However, Mr. Wegner stated that Public Works is currently recruiting a person to fill Ms. Kathy Kaatz's vacancy(Ms. Kaatz has taken a new position in Public Works as Project Coordinator) and that the new person would be present at TWD meeting to take notes and transcribe the minutes. The City couldn't guarantee someone at that time to fill the position. When the offer is accepted by the candidate, it will be part of the job description to attend TWD meetings to take notes and transcribe minutes of the proceedings. Mr. Wegner then discussed the Regional Water Supply (Consortium) meetings and the Regional Water Supply Plan. Mr. Wegner also discussed a recent Oregonian article by Gregory Noakes on the Regional Transmission and Storage Study. It was noted that Mr. Noakes' article was based on a Regional Water Supply Plan Technical Staff subcommittee meeting. Commissioner Penner questioned when these two bodies meet. Mr. Wegner responded by saying that the Consortium Board meets quarterly and that the Technical staff subcommittee meeting is the fourth Thursday of the month and is held at the Tigard Water Building. 6. Minute Approval of August 2, 1999 Meeting It was noted that during the selection of Vice Chair that David Strauss was the member who abstained from voting. Commissioner Buehner moved to approve the,August 2, 1999 meeting minutes as corrected. Commissioner Rhine seconded the motion. All members present voting AYE, the motion passed unanimously. TWD Meeting Minutes Page 2 August 30, 1999 7. Interview Attorney Commissioner Penner gave some general background on TWD. He stated that TWD is part of a consortium of other cities making up the Tigard Water Service Area. Prior to 1993, TWD ran and operated the entire water system. Since 1994 an IGA formed the IWB and the City of Tigard began operating the water system. Commissioner Penner continued by stating why the IWB was formed and why TWD needs some legal advice for what may happen with the recent ballot initiative. Mr. Sercombe gave a brief description of his experience. Mr. Sercombe then stated that TWD should focus its thoughts on issues preliminary work. Mr. Sercombe stated that there were several questions that the Board will need to answer. 1. Is TWD going to act alone or with other IWB members? 2. What issues are raised with the passage of the Tigard Charter Amendment? Mr. Sercombe then discussed questions about the Charter Amendment and the City Charter in general. He also stated that it was appropriate to place the initiative before the voters. He asked does the amendment actually impair the IGA. Or do you need to wait for the second vote. What is the scope of the Charter Amendment, and does it affect the other IWB partners? Commissioner Penner asked if Mr. Sercombe if he had ever heard of other like situations? Mr. Sercombe stated that he had. That the City of Eugene has a charter amendment to have citizen's vote before a major thoroughfare is constructed. A question was asked if Mr. Sercombe is aware of existing complex agreements. He stated he is aware of the Joint Water Commission and USA contracts. A general statement was made that if the initiative petition has certain impacts upon an agency, it is better to know now and prepare for it. Commissioner Strauss asked if there was anything that TWD could do before the election. Mr. Sercombe responded no. The only thing that TWD can do is question whether the Charter Amendment should have been place on the ballot in the first place. Commissioner Buehner, can a case be made based on takings, as in the Dolan remand? Mr. Sercombe stated no. Dolan had to deal with taking clause of the Fifth Amendment of private property. Governments are liable for temporary taking of private property. The Courts would look at the Tigard amendment if it were a breach of contract. Commissioner Buehner asked if there would be any conflicts of interest because of Mr. Sercombe's agency performing bond work for Tigard. Mr. Sercombe stated that the City has approved a declarationof conflict of interest waiver. Commissioner Penner asked if representatives from King City would like to join in the discussion. Mr. Gilmore, King City City Attorney stated that the Charter Amendment was a good case for breach of contract. However disenfranchisement is not. Mr. Gilmore continued by stating that Durham and King City felt that they were left out.of the discussion regarding the Charter Amendment. TWD Meeting Minutes Page 3 August 30, 1999 • Commissioner Buehner asked Mr. Gilmore if he had seen anything in his research that has to do with having a vote of the citizens with only a portion receiving benefit. Mr. Gilmore stated that he had not. At this time the TWD Board of Commissioner adjourned into Executive Session under the provisions of ORS 192.660 (1) (d), (e), & (h) to discuss current and pending litigation issues at 8:08 p.m. At 9:00 p.m. the TWD Board of Commissioners adjourned their Executive Session and reconvened the regular session. Commissioner Rhine asked Mr. Sercombe if this is something that he wants to do. Mr. Sercombe responded yes. It's what I do for a living and it is something that I'm interested in. Commissioner Strauss asked if there would be a problem in getting a release from Tigard? Mr. Sercombe stated no. Commissioner Buehner moved to retain the services of Mr. Timothy Sercombe to do some research on a variety of issues and report to TWD at their regular meeting on September 27, 1999. Motion seconded by Commissioner Strauss. All members present voting AYE, the motion passed unanimously. Mr. Wegner discussed a time line for the TWD. The Tigard Election is September 21, 1999; IWB is meeting on September 22, 1999; and TWD is scheduled to meet on September 27, 1999. The IWB will be going back to its regular schedule starting October 13, 1999. It makes sense to not have a special meeting of the TWD. That the TWD should stick to its regular schedule. Commissioner Froude stated that George Mardikes was one of the attorneys that represented TWD in writing the IGA. Mr. Mardikes worked for Davis Wright and Termaine. Mr. Wegner stated that he and Commissioner Buehner toured Urban Area #47 recently. Mr. Wegner has asked Tigard City Planning to look into how TWD is to annex the Urban Reserve area that was recently brought into the Urban Growth Boundary. There continued to be a general discussion regarding the IWB Water Sales Agreement and what the percentage should be set at. 8. Adjournment The next Tigard Water District Board of Commissioners meeting is scheduled for Monday, September 27, 1999 at 7:00 p.m. The meeting was adjourned at 9:30 p.m. TWD Meeting Minutes Page 4 August 30, 1999