01/11/1995 - Minutes INTERGOVERNMENTAL WATER BOARD
MEETING MINUTES
January 11, 1995
BOARD MEMBERS PRESENT: Chair Manning, Paul Hunt, Bill Scheiderich, George
Morgan
STAFF PRESENT: Ed Wegner, Randy Volk, Mike Miller, Kathy Kaatz
VISITORS PRESENT: Jack Polans
1. Call to Order
The meeting of the Intergovernmental Water Board was called to order at
5 :35 p.m.
2 . Visitors
Mr. Jack Polans conveyed his concern to the Board of the fact that the
public is not aware of what is going on with water issues . Mr. Polans
questioned Mr. Scheiderich in regards to the word "conditions" in the
--� negotiations on water issues . Mr. Scheiderich stated that he is not
acting in a legal capacity on this Board.
Mr. Polans questioned having this issue tabled for later discussion.
Chair Manning stated that negotiations are being held and that it would
impossible to negotiate in a public environment and that any plan will
be brought back before the IWB and the City Council .
Mr. Morgan stated that there are four agencies that comprise the IWB and
according to the IGA they are responsible to vote on long term water
contract. Each of these public agencies will hold public meetings to
discuss this long term water agreement. Through the IGA, the City of
Tigard has been delegated to provide the primary responsibility of
negotiating the contract for long term water. Each agency will be kept
informed of these negotiations .
3 . Approval of Minutes
The minutes of the December 14 , 1994 meeting were approved as written.
A Motion was made by Mr. Morgan and seconded by Mr. Hunt.
4. a. Interim Water Supply
Mr. Wegner distributed in the Board' s packet, a memo from Mike Miller
and Chris Uber which he highlighted. He stated that it is anticipated
that we will have ability to purchase between four and five million
gallons per day from Tualatin Valley by the first part of June. Mr.
Wegner stated that he has authorized, with the approval of the City
Administrator, a hydraulic analysis that will not exceed $5 , 000 . 00 .
This will allow us to find at three various locations, the amount of
flows each location will have. This should be completed within two
weeks and we will be able to see where the interties will be which will`'"
help determine the amounts of the CIP expenditure.
By the 27th. of this month, hope to have some draft language of the IGA
with Tualatin Valley Water District. The anticipated cost will be
10-156 more than the cost of water is at Tualatin Valley Water District.
Mr. Hunt questioned how this cost compares to what we are currently
paying to Lake Oswego? Mr. Wegner stated that it would be comparable
(within a few cents) of our current costs .
Mr. Wegner stated that as the memo indicated, the Baylor Street
reservoir site would be the primary location for the first intertie with
TVWD and be online by the fifteenth of March.
Mr. Wegner stated that the interim supply as discussed last month, the
City of Lake Oswego will be sending a letter extending the interim
supply. At this time, we have been assured verbally that this will be
the case, but have not received written documentation at this time.
4 , b. Adoption of Bylaws
Article III - Members
Chair Manning stated that this Article currently states that "members of
the board will be appointed by their respective governing bodies as,
follows, " but, according to the IGA, it states that this needs to be
elected officials . Ms . Manning stated that this should be changed to
reflect that all members appointed will be elected officials with the
exception of the At Large member. Mr. Hunt moved that this be
incorporated into the Bylaws and was seconded by Mr. Morgan. A voice
vote was taken and passed unanimously.
4. C. Meeting Date for February
The Board Members discussed the regular scheduled meeting being the 8th.
of February. Since there were conflicts with Board Members for that
particular date, it was decided that the meeting be scheduled to
February 15 , 1995 .
5 . Director' s Report
Mr. Wegner stated that on December 23 , 1994 , Mayor Schwartz and the City
Manager meet with the Mayor and City Manager of Lake Oswego and
discussed a revised contract . These concerns were put in writing and
presented to them. The City of Tigard did receive communication from
the City of Lake Oswego late afternoon on December 10 , 1994 . After a
brief analyzing of . this communication, the City of Lake Oswego is
willing to look at the issue of dedication of water rights, although
allocation of water continues to be a problem. The City of Lake Oswegc
Intergovernmental Water Board Meeting, 1- 11-95 Page 2
stated that these issues need to be resolved before going onto the
second tier of questions that the City of Tigard has .
Mr. Wegner stated that the City of Tigard has opened up another option
in meeting with three other cities (Tigard, Tualatin, Wilsonville and
Sherwood) within the area to discuss the Willamette River supply.
Murray Smith has turned in a preliminary report on the ten million
gallon a day reservoir site. We are currently doing some testing with
the pump manufacturer, with the possibility of taking on an additional
three million gallons of water from that site without jeopardizing
hurting the hydraulics . There is another proposal for the amount of
$19 , 000 . 00 which would outline other options in order to pick up an
additional 1. 5 mgd. We are holding off on this option at this time, but
are talking with the pump manufacturer and scheduling the testing to
coincide with cleaning.
Mr. Wegner stated that for the past two months he has promised to have
a CIP, hopefully next month will have the three major components of the
Tualatin Valley interties with costs attached. All four of the agencies
have passed a resolution or a letter from respective councils moving the
deadline to November 1 to submit a CIP. Mr. Wegner stated at this date,
we have not lived up to the letter of the IGA and questioned whether the
Board wanted to make a motion to extend this time frame?
Mr. Morgan stated he felt that the Board should formally acknowledge the
importance of the provisions of the IGA. Mr. Morgan suggested that we
ask the City of Tigard to formally advise us of the date to which the
Capital Improvement Program can be extended. Mr. Morgan also stated
that the calendar that was provided by Mr. Wegner is a very demanding
calendar to which the Board has limited control . Mr. Morgan stated that
the Board will also need to be giving some attention to the Rules, Rates
and Regulations . Mr. Morgan stated that he felt that a formalization of
the Capital Improvement Program is a prerequisite to considering the
budget or any rate discussion, or conditions of service.
Mr. Wegner stated that he would send a formal letter requesting an
extension on the Capital Improvement Program until June of 1996 which
should allow us to time to get through the interim supply problems .
Commissioner Scheiderich questioned whether the putting off of the
Capital Improvement Plan would drive a re-evaluation of System
Development Charges, one of the means of financing improvements in
addition to rates . Mr. Scheiderich questioned if there was thought
given to near future revenue bond sale?
Mr. Wegner stated that we are going to the Tigard City council on
January 24, 1995 asking for approval for an RFP to hire a financial
consultant to do a cost of service, rate study and review the SDC
charges . Mr. Wegner stated that they have already spoken to a few
consultants in regards to our lack of a definite figure for our Capital
Improvement Program. These consultants have stated that they will be
Intergovernmental Water Board Meeting, 1-11-95 Page 3
able with the information provided produce an estimate. Mr. Wegner
stated that by June we will know what we will need to purchase over the
next 5-10 year period of time.
Chair Manning questioned whether this study was budgeted and what the
cost would be? Mr. Wegner stated that it was not, but will need to come
out of contingencies and would be approximately $20 , 000 . 00 to do a
complete study of rates, cost of service and SDC charges review.
Commissioner Manning questioned if they would be doing a comparison
between what the SDC charges are in relation to capital improvement
needs? Mr. Wegner stated that was correct .
Mr. Wegner stated that this study will tie in two scenarios , one being
the Lake Oswego Plan (cost of service, projection of rates) and one with
Willamette River project .
Mr. Morgan questioned whether there were any preliminary projections on
rate change in fiscal year 1995/96? Mr. Wegner stated that rates would
not be raised within the scope of preparing this budget . Inclusive in
the RFP will be the requirement that the consultant will make a
presentation to four entities and will be advertised and come back to
the IWB for a final report and then make a second presentation to the
City Council . Hopefully this will be done by July 1 . Mr. Wegner stated
that this study needs to be done so we will be able to answer
questions .
Commissioner Morgan stated that he felt that all rates and conditions of
service need to originate with the IWB. With the schedule the IWB has
and the number of variables that are involved, the compression of time
is bothersome.
Mr. Wegner discussed one of the advantages of the Tigard Water District
with the City is the fact that the City' s Finance Department will work
on the footwork of this project and allow the Water division to continue
work on the interim supply. Mr. Wegner stated that he hopes to have the
consultant appointed by the end of February.
Commissioner Hunt questioned by the time the consultant is appointed,
would we have a feel for whether we will head toward Lake Oswego? Mr.
Wegner stated that at the onset of the study we will be able to use the
same figure, but by the end of the study we will know what direction we
will be headed in.
Mr. Polans questioned whether the IWB would be able to get a 40-- interest
bond rate for twenty-five year period? Chair Manning stated that we did
not have the expertise to know the answer to that question, but
hopefully this preliminary study will answer those questions .
Mr. Wegner stated that he had provided the Board with a copy of a memo
from himself to Bill Monahan in which the Maintenance Services
Department provided goals for the next fiscal year. Mr. Wegner
Intergovernmental Water Board Meeting, 1- 11-95 Page 4
highlighted the goals that deal directly with water issues . He also
provided a newsletter from Bull Run which describes the history of Bull
Run water for 100 years.
Mr. Wegner stated that at the last meeting of the IWB, the Board had
requested a six month update on the budget. Mr. Wegner stated that he
had received those today but had not had time to review those. He will
provide those at the next meeting.
6 . Non Agenda Items
There were none discussed. The Board discussed items for the next
agenda and concluded that they would include the regular items as well
as a discussion of the six month budget.
7 . Adjournment
The meeting adjourned at 6 : 15 p.m.
kathy\iwb\iwb1-1 Lmtg
Intergovernmental Water Board Meeting, 1-11-95 Page 5