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04/04/1994 - Packet TIGARD WATER DISTRICT Board of Commissioners Meeting Minutes March 14, 1994 - 7 p.m. Board of Commissioners Present: John Haunsperger, Chair; Commissioners Beverly Froude, George Morgan and Lou Ane Mortensen Board of Commissioner Absent: Art Pedersen Staff Present: John Acker, Leslee Gemmill, Wayne Lowry, Mike Miller, Randy Volk and Ed Wegner Visitor: Jack Polans 1. Call to Order The meeting was called to order at 7:07 p.m. 2. Approve Minutes of February 7, 1994 Meeting Commissioner Morgan motioned to accept the meeting minutes as presented and Commissioner Mortensen seconded the motion. A voice vote was called for and the motion passed unanimously. 3. Request for Proposals for Asset/Liability Allocation Black and Veatch and Economic Engineering Services, Inc. submitted proposals for the Asset/Liability Allocation. Chair Haunsperger motioned to delay any decisions on these proposals to allow the Board time to review them further. Commissioner Morgan seconded the motion. • Chair Haunsperger informed the Board he asked Mr.Hill Hampton to review the proposals and report to the Board. • Commissioner Morgan suggested the other involved parties have the opportunity to select an individual to review the proposals. • John Acker said he talked with representatives from both companies and each were willing to participate in whatever selection process the Board chooses. • Chair Haunsperger suggested the Board use this additional time to review, develop questions and prepare to interview the Project Manager from each firm. • In response to Commissioner Morgan's request that background and reference checks be done on the clients identified in each of the proposals, Ed Wegner agreed to solicit input from the Intergovernmental Water Board members and this along with the reference check information would be available to the Board by Monday, March 21, 1994. A special meeting was scheduled for Monday, March 28, 1994 for the Board to interview the Project Manager from each firm. The motion was amended by George Morgan to include the Board invite Hill Hampton, on behalf of the District to review the proposals; the Board give the other parties time to review the proposals to determine the adequacy and responsiveness of the proposals to the solicitation; reference checks be made of projects involving the principals who are proposed to be Project Managers for each of the submittals and this information be completed and provided to the Board by March 21, 1994. Lou Ane Mortensen seconded the motion. A voice vote was taken and the amended motion passed unanimously. TIGARD WATER DISTRICT BOARD MEETING - March 14, 1994 - Page 1 t' s 4. Tigard Water District Budget Wayne Lowry, City of Tigard Finance Director, informed the Board that City Attorney, Jim Coleman recently prepared a legal brief on how to handle the debt service for the next two years because the County Assessor was having a problem determining how to assess the levy of tax to pay the general obligation bond. Since the draft, it's been suggested the best way to handle this matter is to let the remnant District pretend its boundaries are the same for tax purposes and levy the tax as it has in the past. There was discussion regarding the possible financial impact to the Tigard Water District. John Haunsperger read to those present a letter from Ken Martin, Boundary Commission, dated February 22, 1994 informing the Tigard Water District Board of the Boundary Commissions intent to levy an assessment against Tigard Water District for the 1994-1995 fiscal year as authorized by ORS 199.457. The total amount due is $3,226. Wayne Lowry took the letter and agreed to look into the matter further. There was a brief discussion regarding Tigard Water District's financial obligation to the Phase 2 Regional Water Study. John Acker indicated he's in the process of looking into this matter and will report back to the Board. a.) Selection of Budget Committee Lou Ane Mortensen reported to the Board that John Martin, Fred Rosebraugh, Linda Fox, Eleanor Quinby and Rod Kvistad have agreed to serve on Tigard Water District's Budget Committee. John Haunsperger moved these five names be submitted as nominees to the Budget Committee and Beverly Froude seconded the motion. • George Morgan said public offices and positions should be posted for public awareness so interested individuals could be considered for appointment to the Budget Committee. There was a brief conversation regarding the process and timelines. Discussion continued on the various methods to adequately notify the public. Staff was asked to assist in whatever way possible to bring this to the public's attention. b.) Review draft Letter to Committee Members Lou Ane Mortensen read to the Board the proposed letter to nominated budget committee members. The Board briefly discussed the Tigard Water District budget and the responsibilities of the budget committee. c.) Chair Haunsperger reviewed with the Board the amount due to Davis Wright Tremain for legal services for the months of December and January. Commissioner Morgan motioned to authorize payment of the invoice and Lou Ane Mortensen seconded the motion. There was discussion regarding the invoice. A voice vote was taken and the motion was approved unanimously. 5. Director's Report In addition to the Work Accomplished Report, Ed Wegner, Maintenance Services Director reported to the Board the status of the following projects: TIGARD WATER DISTRICT BOARD MEETING - March 14, 1994 - Page 2 • • The hand-held meter reading equipment arrived and employees will receive training the week of April 4, 1994. • Phase 4 of Bull Mountain Meadows will be completed this year. • The transition of the water district staff as a result of the Intergovernmental Agreement is going well. He indicated that customer service has been consolidated and work is beginning on combined billing for water and sewer customers. The City's Finance Department has relocated to the water building to better assist in the consolidation of functions. He reported further to the Board that the water department employees voted "no" to union representation and the Maintenance and Operations employees seem to be working well together. • Ed Wegner reported on the purchase of the second phase of the SCADA equipment. • Randy Volk responded to a question from Chair Haunsperger regarding the software problems with the accounting and SCADA software. Randy Volk said the problems have been resolved now that they upgraded from a 386 to a 486 computer. • At the March 22, 1994 Tigard City Council meeting, the water department is requesting authorization to advertise for bids for the North Dakota Street 12" Water Transmission Line Capital Improvement Project. • Staff is attending meetings and actively working on long range water supply. • Ed Wegner reported briefly to the Board on the presentation by Murray, Smith and Associates presentation at the Intergovernmental Water Board Meeting on March 9, 1994. 6. Non-Agenda Items a.) Mike Miller, Water Management Analyst,reported that currently,the Tigard Water District is the recipient of a waterline easement for a parcel of land located north of SW Bull Mountain Road and east of High Tor subdivision. Due to the position of this existing waterline easement,it cannot be utilized within the new subdivision. Mike Miller responded to questions asked by Commissioner Morgan. Commissioner Morgan moved to accept Resolution 94-01, a Resolution to extinguish a waterline easement across the northern 15 feet of Tax Lot 1500, Assessor's Map #2S, 1 9BA. Commissioner Froude seconded the motion. A voice vote was called for and the motion passed unanimously. b.) Commissioner Morgan informed the Board that a formal request may be made to the Tigard City Council for an extension of the June 30, 1994 deadline for an updated capital improvement program. During a progress report by Murray, Smith and Associates, Inc. (MSA) to the Intergovernmental Water Board on March 9, 1994, MSA indicated that updating the water supply plan could not be completed in the originally anticipated timeframe due to the delay of receiving needed information from water providers. Apparently,the study has prompted possible water suppliers, to update their own plans and this information is not yet available. George Morgan reported to the Board that the City of Tigard's contract for water with the City of Lake Oswego expires at end of this year. • Ed Wegner clarified for the Board the agreed upon terms between City of Tigard and City of Lake Oswego regarding the expiration date of the contract. The Board continued discussion on the delay and its impact on the development of an updated water capital improvement plan and the Tigard Water District budget. TIGARD WATER DISTRICT BOARD MEETING - March 14, 1994 - Page 3 r � George Morgan commented that the presentation by MSA was exceptionally good and this • Board will be pleased with the completed report. • Ed Wegner indicated that a 90 day extension will be requested at the next Tigard City Council Meeting. c.) Commissioner Morgan asked staff for input regarding the Intergovernmental Agreement specifically regarding the responsibilities of this Board and the City of Tigard. He wants verified that both parties are meeting their responsibilities according to the Agreement. The following concerns were identified: certificates of insurance coverage;whether the boundary lines were updated and filed and the status of the adoption of SDCs by the parties. Ed Wegner said a response to this request would be provided to the Board prior to the next regular meeting. Commissioner Morgan explained to the Board the procedure by which the Intergovernmental Water Board chose its fifth member, Bill Scheiderich. d.) Chair Haunsperger reviewed for the Board an outstanding invoice for $63 due to the Daily Journal of Commerce for the advertising for the Request for the Proposals for the Asset and Liability Division. George Morgan motioned to authorize payment and Lou Ane Mortensen seconded the motion. The motion was passed unanimously. The Board requested staff that they be kept informed of their expenditures in some format on a monthly basis. e.) Jack Polans addressed to the Board his concern about the lack of public involvement and asked about the Tigard Water District policy on meeting tapes and minutes. Mr.Polars was assured that the meeting tapes and minutes are always available for review by the public and staff will look into the possibility of making this known to the public via the library. 7. Adjournment The meeting adjourned at 8:45 p.m. TIGARD WATER DISTRICT BOARD MEETING - March 14, 1994 - Page 4 CITY OF TIGARD WATER DEPARTMENT SERVING TIGARD, KING CITY, DURHAM AND UNINCORPORATED AREA FEBRUARY 28, 1994 WELL RECORDS: WELL HOURS COSTS-ELECT NO OFF CUBIC FEET PUMPS, ETC. HOURS DESCRIPTION 1 T/OFF 09/30/93 $ 793.82 Well ,Canterbury Shop and Pressure Pumps 2 T/OFF 09/30/93 $ 519.06 Well& Pumps to Hi-Tor& 10 MG Reservoir 3 T/OFF 09/30/92 $ 45.30 Well and Lights 4 T/OFF $ 20.30 Well and Lights All Pump Stations &Alarm-Telemetry Phones $ 5.297.77 132nd St., High Tor, & 10-MG Reservoirs $ 6.676.25 METER RECORDS: METER#11,816 THROUGH #11,854 & 11,856 THROUGH 11,859 = 43 NEW METERS SOLD METER# 320 BROUGHT IN FROM LAKE GROVE = 1 OLD METER SOLD 44 TOTAL METERS SOLD BILLING DETAIL: FEBRUARY $ 215,230.47 12,772,600 CUBIC FEET OF WATER BILLED. G: MTRFRM10.DOC CONSUMPTION & WATER LOSS REPORT Percentage of each type of water consumed, FY 1993-94 Month & Wells Clackamas R. Bull Run Total Year Cubic Feet Cubic Feet Cubic Feet Cubic Feet . July 1993 168,510 21,160,000 - 0 - 21,328,510 Aug. 1993 4,036,860 26,820,000 16,600 30,873,460 Sept. 1993 3,799,500 25,152,000 - 0 - 28,951,500 Oct. 1993 - 0 - 19,165,000 - 0 - 19,165,000 Nov. 1993 - 0 - 17,380,000 - 0 - 17,380,000 Dec. 1993 - 0 - 15,235,000 - 0 - 15,124,000 Jan. 1994 - 0 - 17,102,000 1,700 17,103,700 Feb. 1994 - 0 - 14,077,000 368,500 14,445,500 Mar. 1994 April 1994 May 1994 June 1994 Total 8,004,870 155,980,000 386,800 164,371,670 4.87% 94.89% 0.24% 100.00% 001"" Unmetered water, FY 1993-94 Pumped Purchased Total Sold Loss * Month Cu. Ft. Cu. Ft. Cu. Ft. Cu. Ft. Cu. Ft. Loss & Year x 1000 x 1000 x 1000 x 1000 x 1000 % . Feb. - 0 - LO 14,077 14,446 12,845 1,601 11.08% 1994 P 369 . Total: 8.005 156.367 164.372 159.875 4.496 2.74% ( 8 months) *Monthly water losses are not accurate. Billing is accomplished every month,with one-half of the patrons billed for a 2-month period of water pumped/purchased computed on a monthly basis. Compare Unmetered Water, FY 1993-94 to 1992-93 FY Pumped Purchased Total Sold Loss * Month Cu. Ft. Cu. Ft. Cu. Ft. Cu. Ft. Cu. Ft. Loss & Year x 1000 x 1000 x 1000 x 1000 x 1000 % . Feb'94 - 0 - 14,446 14,446 12,845 1,601 11.08% Feb'93 - 0 - 12.397 12.397 14.214 -1.817 -14.65% DIFF - 0 - 2,049 2,049 (1,369) 3,418 166.84% This shows we purchased more and sold less water in 1994 than in 1993. 00* 1 03/17/94 08:41 AM Re: wtrlossc.xls, wtrlosst.xls, wloscmpr.xls CONSUMPTION & WATER LOSS REPORT (CONT.) Summary of water purchased and/or pumped and water losses Fiscal Year Well Lake Osweao Portland Water Losses 1987-88 0% 97% 3% 3.90% 1988-89 3% 93% 4% 7.90% 1989-90 6% 90% 4% 6.05% Average 1990-91 5% 90% 5% 9.00% 5.275% 1991-92 7% 89% 4% 15.50% 1992-93 9% 83% 8% 3.25% 1993-94 5% 95% 0% 2.74% (8 month) 2 03/17/94 08:41 AM Re: wtriossc.xls,wtrlosst.xls, wloscmpr.xls • INVOICE, Tax I.D. #91-0839480 DAVIS WRIGHT TREMAINE LAW OFFICES 2300 FIRST INTERSTATE TOWER• 1300 SW FIFTH AVENUE• PORTLAND.OR 97201-5682 (503) 241-2300 •FAX: (503) 778-5299 City of Tigard Water Dept . Page 2 Fees Disbursement Interest Balance from Previous Statement 7,037 .00 146.86 .00 Less Payments Received .00 .00 .00 Previous Balance Due 7,037 .00 146.86 .00 Current Charges 735.00 101.65 .00 Total Due this Matter 7, 772.00 248.51 .00 - - - - SUMMARYBY PROFESSIONAL - - - - Hours Billed Bill Professional Worked Per Hour Amount G. Mardikes 4 . 20 175 .00 735.00 Total all Attorneys 4 .20 175.00 735.00 Total Balance Due This Matter $8,020. 51 RMG:0748m:jds PURCHASE ORDER*: ACCOUNT 1: I3 - ay- (lc 1 .0 - APPROPRIATION BALANCE: PURCH SPECIALIST APPROVAL; _ ''A RTMENT AP-.ROVAL: -1111g30 p6t,r,aet rude P\-, 3 Ito/ DUE UPON RECEIPT A LATE PAYMENT CHARGE WILL BE ADDED TO ALL AMOUNTS MORE THAN 30 DAYS PAST DUE AT THE RATE OF 1%PER MONTH. PLEASE DISREGARD PREVIOUS BALANCE DUE IF REMITTANCE HAS BEEN MADE AFTER INVOICE DATE. INVOICE. Tax I.D. #91-0839480 DAVIS WRIGHT TREMAINE LAW OFFICES 2300 FIRST INTERSTATE TOWER• 1300 SW Fin-H AVENUE• PORTLAND,OR 97201-5682 (503) 241-2300• FAX (503) 778-5299 Client ID 790026 City of Tigard Water Dept . 13125 SW Hall Blvd. Statement as of March 3, 1994 Tigard, OR 97223 Invoice No. 851883 ATTN: ACCOUNTS PAYABLE For Legal Services Rendered: Matter No. 2 General 02/02/94 G. Mardikes . 40 Telephone conference with Mr. Lowry; review bond file 02/03/94 G. Mardikes .30 Draft correspondence to Mr. Coleman 02/07/94 G. Mardikes 2.80 Review outstanding matters; telephone conference with Mr. Lowry; attend meeting of Tigard Water District 02/23/94 G. Mardikes . 70 Review memorandum from City' s attorney regarding general obligation bonds • Total Hours 4.20 Total Current Services $735.00 Expenses 01/28/94 Travel expense 77. 10 02/22/94 Mileage 5.72 Telecopy charges 6.65 Copying expense 11 .20 Postage •98 Total Current Expenses $101.65 Total Current Invoice • $836.65 DUE UPON RECEIPT A LATE PAYMENT CHARGE WILL BE ADDED TO ALL AMOUNTS MORE THAN 30 DAYS PAST DUE AT THE RATE OF I%PER MONTH. PLEASE DISREGARD PREVIOUS BALANCE DUE IF REMITTANCE HAS BEEN MADE AI•I tit INVOICE DATE. WATER DISTRICT COVERAGES Effective January 1, 1994 insurance coverages for the governance and operation of water distribution facilities was purchased by the City. All real property previously insured by the Tigard Water District is now insured on the City of Tigard's policy. However, prior to placing this coverage, our office physically visited and appraised all sites previously owned and insured by the district. As a result, insured values jumped from $3,100,000 in January 1993 to $7,675,000 effective January 1, 1994. The city has now received our formal appraisal, and a summary of this appraisal is included in this section of our report. Liability coverages for water distribution integrated easily with your current insurance carrier, Northland. By placing all liability coverages with one carrier, coverage gaps should be minimized as should pricing. Acquisition of water district responsibilities poses no particular insurance problem, now that coverage has been placed at proper levels. The insurance marketplace for special districts and for cities is similar, in that most markets which will write cities will also write water districts as a part of a city. There are currently several solid programs competing for this business in Oregon. Also included in this section is an insurance summary separately outlining the coverages currently applying to water distribution responsibilities. C6—.1; i i 1__1 JBL & KINSURANCE City of Tigard (Tigard Water District) 13125 SW Hall Blvd. Tigard, OR 97223 INSURANCE SUMMARY Policy Company/ Additional Pro-Rata Period Policy No. Term Coverage Limits Deductible Premium 1-1-94 Chubb 1 yr. PROPERTY $1,000 $3,689 to Group Blanket Real Property, $7,675,000 5-12-94 35303187 Contractors Equipment, Radio Equipment Combined Business Income $1,300,000 Included Boiler& Machinery On All Real & Personal Property Earthquake & Flood $3,000,000 $100,000 Included ELECTRONIC DATA PROCESSING EQUIPMENT Equipment $500,000 $1,000 Included Media/Software $50,000 Extra Expense $50,000 1-1-94 Northland 1 yr. COMMERCIAL GENERAL LIABILITY $4,388 to Ins. Co. "Property Damage" Liability $50,000 to any one claimant for claims arising 5-1-94 CPP77252 out of one single accident or occurrence. "Bodily Injury," "Personal Injury," $200,000 to any one claimant for claims arising "Advertising Injury," and/or Errors out of one single accident or occurrence. Omissions Liability "Bodily Injury," "Property Damage," $500,000 for any number of claims arising "Personal Injury," "Advertising Injury," of a single accident or occurrence. and/or Errors and Omissions Liability Combined Fire Damage Limit $25,000 any one fire JBL& KINSURANCE City of Tigard (Tigard Water District) 13125 SW Hall Blvd. Tigard, OR 97223 INSURANCE SUMMARY Policy Company/ Additional Pro-Rata Period Policy No. Term Coverage Limits Deductible Premium Products/Completed Operations $1,000,000 Aggregate Limit General Aggregate Limit $5,000,000 Property Damage Deductible $500 1-1-94 Northland 1 yr. AUTOMOBILE LIABILITY $2,396 to Ins. Co. 5-1-94 CPP77252 "Bodily Injury" Per Person $200,000 "Bodily Injury" Per Accident $500,000 "Property Damage" $50,000 "Personal Injury Protection" Statutory Uninsured Motorists $500,000 Property Damage Deductible 1-1-94 Northland 1 yr. AUTOMOBILE PHYSICAL DAMAGE Included to Ins. Co. Per schedule on file 5-1-94 CPP77252 Comprehensive on all vehicles Actual Cash Value $100 1980 and newer and 1968 Mack and 1978 Int'l 1700 Collision on all vehicles Actual Cash Value $500 1980 and newer and 1968 Mack and 1978 Int'l 1700 Hired Physical Damage $10,000 $100/500 - JBL & KINSURANCE City of Tigard (Tigard Water District) 13125 SW Hall Blvd. Tigard, OR 97223 INSURANCE SUMMARY Policy Company/ Additional Pro-Rata Period Policy No. Term Coverage Limits Deductible Premium 1-1-94 Northland 1 yr. UMBRELLA LIABILITY Included to Ins. Co. 5-1-94 UB4408 Occurrence Limit $2,000,000 Aggregate Limit $2,000,000 Retained Limit $10,000 Subtotal Prop./G.L,/Auto $10,073 7-1-93 Liberty 1 yr. WORKERS' COMPENSATION To Follow to Northwest 7-1-94 WC4-INC-003731-013 Accident $100,000 Policy Limit $500,000 Employee $100,000 3