04/19/1995 - Minutes INTERGOVERNMENTAL WATER BOARD 'MEETING MINIITES
April 19, 1995,
BOARD MEMBERS PRESENT: Bill Scheiderich, Paul Hunt, Beverly Froude, and
John Budihas
STAFF PRESENT: Ed Wegner, Bill Monahan, Randy Volk, Mike Miller,
and Kathy Kaatz
VISITORS PRESENT: Jack Polans and John Haunsperger
1. Call to Order
The meeting of the Intergovernmental Water Board was called to order at
5 : 30 p.m.
2 . Roll Call
Roll call was taken and all members were present with the exception of
Peggy Manning.
Mr. Budihas stated that he was the newly appointed member of the IWB
representing the City of King City. Commissioner Yager is leaving the
area and the alternate Ms . Drangsholt is not available. Mr. Budihas
stated that he was a small businessman for thirty-five years in Portland
and had moved to King City approximately one year ago. He stated that
he is currently a Councilman for the City of King City.
3 . Visitor' s Comments
Mr. Jack Polans distributed a document which he wrote and sent to the
City of Lake Oswego. Mr. Polans read the first part of paragraph one
from the document and stated there was a correction made by the Mayor of
Lake Oswego in which she stated that the water rights would not change.
There was another correction in regards to the - 42 gpd which was
corrected to 50 gpd.
Bill Monahan stated that Mr. Polans was raising some issues relating to
the minutes of the last meeting that are a part of the on-going
negotiations with Lake Oswego. Mr. Monahan stated that he would rather
not comment on the accuracy or inaccuracy of those comments since the
terms of the negotiations are confidential at this point .
4 . Approval of Minutes
Commissioner Hunt motioned that the minutes of the March 22 , 1995
minutes be approved as written which was seconded by Commissioner
Froude. A voice vote was taken and the results were unanimous .
5 . Fiscal Year 1995/96 Budget Review
Mr. Wegner stated that in the packet the Commissioners were provided an
updated copy of the budget . The first page consisted of a program
narrative which outlined goals of 1994/95 and future goals . The second
page consisted of a recap of the budget that will be submitted to the
Tigard City Council . The total budget reflects a 151 increase. Mr.
Wegner highlighted the following areas of the budget :
a. 501. 000 and 502 . 000 There was a reduction of 741 in salaries and
management since one year ago all Water employees were in the
management category with none of the employees being represented
employees . During the merger these employees have become
represented employees . The account has not actually been reduced
by 741, but have just readjusted those funds .
b. 551. 000 Workers Compensation. This item is reduced due to the
Water employees merging with City employees which has reduced our
overall level .
C. 601. 000 This account reflects a 338. increase which is due to the
funds for Murray Smith to continue their negotiations into the next
fiscal year. This will also include the $25 , 000 for the rate study
as well as a seismic and stress test on some of the reservoir
sites .
d. 602 . 000 Some of this is a transfer of funds from one category to
another as we progressed through the first year of the merger to
get funds into the right place in the budget. ..1
e. 700 .000 Mr. Wegner also distributed a Capital Improvement request
for 1995/96 . These are projects that were discussed at the last
meeting. We will be spending some funds on Fall Protection due to
OSHA regulations at the reservoir sites , Menlor Reservoir site
preparation, the chlorination building which will be located at 10
mg site, Well #4 maintenance, pipeline replacements (Beef Bend
Road) due to the widening project by the County, Durham Road
project, meter replacements, meter installations and water
services based upon new construction, regulator installation
(within the system) , pipeline extensions (North Dakota finish up) .
f . The next page included SDC fund. There was a -correction noted on
that page from Beef Bend Road at 173rd to Beef Bend Road at 137th.
This will also include the Greenburg Road extension. The balance
of funds are set aside for the Menlor Reservoir site. Mr. Wegner
stated there is also a reserve fund which had to be designated
other than contingency and has been placed in the Menlor Reservoir
site.
Mr. Wegner stated that these are the recommendations that will be passed
along to the Tigard City Council and Budget Committee unless the Board
has further recommendations .
Commissioner Hunt questioned under Capital Improvements and water
service installations, since there is no income statement, he questioned
whether, a certain amount of this was offset by income? Mr. Wegner
stated that this was correct and Mr. Miller stated that when meter feF—
IWB Meeting - April 19 , 1995 Page 2
are set up a portion of that cost covers the installation of the water
•.- service and the price of the meter. Mr. Hunt stated that a portion of
these capital costs will be absorbed and a portion of them will have
offsetting income . Mr. Hunt questioned which part of this $639 , 000 will
have to be absorbed and which part will have offsetting income?
Mr. Wegner asked Commissioner Hunt for clarification on the word
absorbed? Commissioner Hunt stated that some of these will not have an
offsetting income. Chair Scheiderich stated that a one page summary of
revenues would be appropriate for the next meeting.
Commissioner Hunt then questioned that expenses increasing by 150-. which
is in part justified but would like that outlined.
Ed Wegner stated that water costs are going up 270 (Portland will go up
substantially, Lake Oswego will also increase) , also it is anticipated
that we will buy up to 6mgd from Tualatin Valley as well . Some of these
costs go up .25 to 1. 00 . Commissioner Hunt questioned whether there was
an anticipation of fee increase for next year? Mr. Wegner stated that
Mr. Lowry does not expect an increase for next year. Mr. Wegner stated
that the rate study will clarify these issues, since there is no
guarantee that there will be no increase.
Commissioner Budihas questioned the age of the meters that are being
replaced and the life span of the newly installed meters? Mike Miller
stated that the manufacturer' s warranty is for five years. . Mr. Miller
stated that by replacing some of the larger meters (industry and
commercial users) it will be likely that we can pick up the increased
revenues to cover the cost of the new installations . Randy Volk stated
that we are replacing 29 meters ranging in size from 3 " to 1211 , eight of
the 29 at the last calibration were not repairable and have been in for
twenty years . All of these meters are also in vaults and will be
revamped to prevent the meter reader from entering the vault for the
read.
6 . Water Conservation
Mr. Wegner distributed blue sheet flyer that we will be placing in
various City Halls and Libraries . Mr. Wegner stated that he also
distributed a copy of Tap Talk which covers a wide range of articles and
will be placed in the next billings . Mike Miller is also working with
a couple of local businesses and drafting a letter asking for their
cooperation in conserving water. Mr. Wegner stated that he had checked
into the water conservation workshops that are being offered by the
Portland Water Bureau and the workshops costs to put on are $6 , 000.
Board discussed the flyers being stuffed into the billings and it was
noted that there will be no additional postage needed, but will involve
approximately (during the eight week billing cycle) a total of twelve
additional manhours . Chair Scheiderich stated that it would be
IWB Meeting - April 19 , 1995 Page 3
beneficial to point out how to measure one inch of water (cup and ruler,--
tuna can) . Commissioner Froude thanked the staff for pursuing this mucl
needed material .
Chair Scheiderich questioned whether a conservation revenue loss to be
figured into the revenue projections for the budget? The Board
discussed the inverted block and stated that the rate study will
consider.
7 . Director' s Report
Mr. Wegner stated that the Tigard City Administrator had received a
letter from the Lake Oswego City Administrator authorizing and extension
of the present agreement to purchase surplus water through May 1, 1995 .
He also stated that the schedule for the rate study is as follows : The
proposals are due by April 21, at the May 10th meeting they will ask two
or three consultants to come make a presentation to the Board and
hopefully by May 23rd the selected consultant will go before the Tigard
City Council . Mr. Wegner stated that each consultant will make a twenty
minute presentation.
Mr. Wegner stated that the City Council did authorize us to proceed with
the well work on well #2 and #3 and the Baylor intertie. Gelco has been
on the reservoir site this week working on the repair work to that site.
Mr. Wegner stated that he provided in the packet the Regional Water,`
Supply progress report from the Participants meeting and the Marc
monthly report . Mr. Wegner stated that with Lorry Christian leaving the
organization, her position was placed into the Maintenance Services
budget as an Utility Worker position.
Commissioner Froude questioned in the Regional Participants progress
report it discussed the future public information involvement activity
and she questioned whether we would be on the list to receive a
presentation? Mr. Wegner stated that the slide show will be shown
hopefully in May and when the draft is ready, we will host a meeting
with the City of Tigard, King City, Durham and the unincorporated area
(June or July) with another meeting possibly in November with the final
draft .
8. Non Agenda Items
The Board discussed setting the next meeting for May 10th.
9 . Adjournment
Commissioner Hunt motioned for adjournment of the regular session with
a second by Commissioner Frcude at 6 : 05 p.m.
A motion was made by Commissioner Hunt to convene Executive Session and
a second by Commissioner Froude for discussion of real property
transactions . A voice vote was taken which passed unanimously.
IWB Meeting - April 19 , 1995 Page 4