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