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05/28/2003 - Minutes TIGARD WATER DISTRICT BOARD OF COMMISSIONERS MEETING Wednesday, May 28, 2003 Members Present George Rhine, Beverly Froude, and Norm Penner Staff Present: Dennis Koellermeier and Twila Willson Visitors Present: Janet Zeider, Marc Delphine, and Charlie Stalzer 1. Call to Order Commissioner George Rhine called the meeting to order at 7:04 p.m. 2. Roll Call and Introductions Commissioner Rhine called roll and all members were present. He introduced Janet Zeider, who was a write-in candidate for a seat on the Tigard Water District Board of Commissioners, and Marc Delphine who ran for position #4 on the TWD. Charlie Stalzer, chair of the Budget Committee was also in attendance. 3. Approval of Minutes—April 28, 2003 Commissioner Norm Penner motioned to approve the minutes of the April 28, 2003, meeting and Commissioner Beverly Froude seconded the motion. The vote to accept the minutes was unanimous. 4. Visitor's Comments Marc Delphine introduced himself and stated he was present at the meeting to get to know the board members better and was eager to hear input or feedback. 5. Election Update A handout of the unofficial election results was distributed. The election division will send letters in about two weeks (after June 9th) to the write-in candidates, who must either accept or reject the nomination before the results become official. Tigard Water District Minutes - 1 - May 28,2003 6. Water Supply Update- Dennis Koellermeier Water demands have increased with the warmer weather. Mr. Koellermeier briefly explained that the Tigard Water Service Area, which includes the Tigard Water District (TWD), Cities of Durham, King City, and Tigard, operates under the Intergovernmental Water Board (IWB). The water sources for those communities (of approximately 47,000 people) includes a wholesale contract with the City of Portland, a purchase agreement with the (JWC) Joint Water Commission (which is a consortium of Hillsboro, Forest Grove, Beaverton and Tualatin Valley Water District), two groundwater wells, and one ASR well (aquifer storage and recovery). The Tigard Water Service Area's only real water source is about 1 mgd from the two wells and all other water is purchased from other sources, which puts us at the mercy of their pricing markets. During the winter months the water demands are 4-5 mgd and summer months about 10 mgd with peak days at about 13 mgd. The current agreement with the City of Portland is a minimum purchase contract which means our purchase must be at least as much water as was purchased the previous calendar year. If the purchase amount drops below that amount, we must still pay for the same amount of water (rolling average). We are trying to decrease purchases from Portland. Our current purchases are approximately 4 mgd from the JWC through the Beaverton intertie and 1.5 mgd from the City of Portland. The current status of the Portland reservoirs and JWC reservoirs is that they are full. Our ASR well injections began in February 2003 at a rate of 775 per minute and now total 145 mg of water stored in the ASR well. When water demands go up in June or July, the injection will stop and we will start using the water. We, along with the other wholesale contractors, are currently negotiating the wholesale contract with the City of Portland. The restructuring contract process started 2-3 weeks ago and is anticipated to be about a six month process. Negotiations are also in process with the JWC seeking membership with that consortium and current indications are that we will be successful. The water source from Portland is not filtered, however JWC water is filtered and will soon be fluoridated as well. We are also reopening discussions with Lake Oswego. Presently we have an emergency agreement with them, but have not taped that source for several years. Staff is discussing whether to purchase surplus water from them. Water Rate Purchase Predictions — Portland earlier stated they would be increasing rates 24% (from current $.91 fee to $1.15), but after their methodology was challenged they revised the rate to 17% ($1.09). JWC rates will increase from $.66 to $.70 per hundred gallons. Water Supply Plan — Staff pre-plans decisions for use during the heavy usage summer months and the published plan will be presented to the IWB on June 11. Tigard Water District Minutes -2- May 28,2003 There was a brief discussion about Tigard's water sources and previous purchasing patterns. Commissioner Froude suggested holding a public work session to further discuss the history of Tigard's water needs. 7. Non-Agenda Items Commissioner Rhine presented the possibility of appointing the two newly elected board members to the current vacant seats. Commissioner Penner made the motion to appoint Janet Zeider and Marc Delphine to the unexpired terms of Positions #1 and #2 and Commissioner Froude seconded the motion. The vote to accept the motion was unanimous pending investigation of the legalities. 8. Set next meeting date The next scheduled meeting date is June 23, 2003, 7:00 pm., and topics will include the adoption of the budget and a discussion of TWD history. 9. Adjournment Commissioner Penner moved to adjourn the TWD meeting, Commissioner Froude seconded the motion, and the vote to adjourn was unanimous. Tigard Water District Minutes -3 - May 28,2003