05/17/1995 - Minutes ."�
INTERGOVERNMENTAL WATER BOARD MLETING MINUTES
May 17, 19 9 5
Board Members Present: Chair Scheiderich, Commissioners Froude,
Hunt, Manning, and Budihas
Staff Present: Bill Monahan, Ed Wegner, Wayne Lowry,
Mike Miller, and Kathy Kaatz
Visitors Present: Jack Polans, Norman Penner, Lou Ane
Mortensen
1. Call to Order
The meeting of the Intergovernmental Water Board was called to
order at 5 : 36 p.m.
2 . Roll Call
Roll was taken with all members present . Visitors present
included Jack Polans and Steve Feldman.
3 . Visitor Comments
Jack Polans stated that he would speak only briefly since he
was interested in the presentation to be made. Mr. Polans
stated that he had been spending time attending meetings at
the City of Lake Oswego in an attempt to gain information
regarding the negotiations between the City of Lake Oswego and
the City of Tigard.
4 . Approval of Minutes
Motion was made by Commissioner Hunt to approve the minutes of
the April 19 , 1995 meeting minutes which was seconded by
Commissioner Manning. A voice vote was taken which passed
unanimously.
5 . RFP - Water Rate Study Presentations
Chair Scheiderich stated that Mr. Lowry would be introducing
the presenters and then the presenters will be able to
elaborate on the introduction.
Mr. Lowry stated that the RFP asked for proposal on a water
rate study with the scope of work containing the following:
a. Develop revenue requirements for a five year
period.
b. Develop cost of service analyst based on customer
classifications .
c. Develop a cash flow computer model that would be
left with the City for use in the future as we
would plan capital improvements .
d. Update System Development charges .
Mr. Lowry stated that with this scope of work there were five
proposals all of which were included in the Commissioner' s
packets . Mr. Wegner, Mr. Lowry and Mary Gruss evaluated these
proposals and arrived at the three finalists that are present
tonight . Mr. Lowry stated that after their presentations are
heard, it is suggested
that the Board make a recommendation to the Tigard City
Council for their meeting in June. The three presenters
present at the meeting tonight are: CH2M HILL, EES and David
Griffith and Associates .
CH2M HILL
CH2M Hill was the first presenter. David Hasson is the
proposed project manager for this project . Mr. Hasson
introduced Debbie Davis, a rate economist and Bob Fuller, a
Senior Water System Engineer.
After their presentation, Commissioner Hunt discussed the
challenge of selling the public on the need for a new water
supply. Mr. Hasson stated that this would not be the main
thrust of this study although the study will relate to the _
cost numbers and what alternatives are in relation to the
need.
Commissioner Budihas questioned the ability of CH2M Hill
meeting the schedule and budget needs . Mr. Hasson stated
that CH2M Hill makes every effort to stay within budget
constraints . Mr. Hasson stated that the only time that
additional charges would be the responsibility of the City
would be if the City asks for something beyond the scope of
the Contract .
Commissioner Manning questioned the length of the study with
the dynamics of the need for long term water supplier? Mr.
Wegner stated that it is the assumption of staff that the
model will allow us to plug in capital improvement figures and
modify those. Mr. Hasson stated that during the study they
will identify the option that will be used and should that
change during the course of the study or after the study,
these figures can be changed and will reflect what that will
do to the rates .
Commissioner Manning discussed that this firm would not be
doing the marketing of a bond or a debt service that will need
to be sold to the public .
Intergovernmental Water Board - May 17, 1995 Page 2
Chair Scheiderich questioned what type of input has been
provided for in the proposal in regards to the fairness issue?
Will a window be placed out there for the public bodies to
suggest a equitable issues to be considered? Mr. Hasson
stated that the first steps that would be undertaken to
address fairness would be to identify what it meant by the
word fair? In the kick off meetings, CH2M Hill would
determine what is fair and see what can be met simultaneously
and proceed. Mr. Hasson stated that these conclusions would
be determined by a consensus from the Board. Mr. Scheiderich
questioned to what extent there is room in the study to do a
comparison of how other local water providers have faired by
way of matching their financial plans to their success or
failure? Mr. Hasson stated that they can provide antidotal
types of evidence of others in the area. Mr. Hasson stated
that if something more of a survey is required, it has not
been figured into the budget, but could be provided if wanted.
Mr. Scheiderich questioned whether they were confident that
enough time has been budgeted to consider questions not
answered in the draft? Mr. Hasson stated that these time
frames have been figured in within reason.
Mr. Scheiderich questioned the computer model that will be
developed and the ability to run on standard software? Mr.
Hasson stated that this would be ran on Excel . Mr.
Scheiderich also questioned whether the payment schedule is
keyed to deliverables or hourly billings? Mr. Hasson stated
that it negotiable.
Mr. Polans asked the Board if he could questioned the
presenter? Chair Scheiderich stated that Mr. Polans could
reserve his questions until after all the proposals were heard
the Board may invite comments and questions .
DAVID GRIFFITH AND ASSOCIATES
Mr. Lowry introduced David Griffith and Associates . Bob
Chandler the Pacific Northwest Manager, and Bob Reed out of
their Sacramento office who is a specialist in water rate
studies were introduced.
After their presentation, the Board had the following
questions and discussions .
Commissioner Froude questioned whether conservation would be
addressed for this rate structure? Mr. Reed stated that
initially it is important to understand the rate setting
objectives or policy objectives that relate to the water
Intergovernmental Water Board - May 17, 1995 Page 3
rates . If conservation is an objective than it is important
that the rate structure encourages conservation (tiered rates,
commodity component of rate which is the based upon the volume
of water being used versus a monthly service budget) .
Commissioner Manning questioned what effect different
scenarios would have on these policies? Mr. Reed stated that
their firm is known for conducting policy workshops with
either a city council, board of directors or citizens advisory
committees which are organized just for the purpose of doing
the rate study. Mr. Reed stated that they would like to have
a policy workshop to explain the rate setting process and the
issues that need to be addressed as a part of the rate study.
Mr. Reed stated that they would also need at the end of the
study to identify the number of meetings and presentations to
present the results of the study. Commissioner Manning
questioned whether the Board has the time frame to do this
education? Mr. Wegner stated that the time frame is flexible .
Mr. Reed stated that additional meetings are not built in to
do education process . The total number of meetings included
were six. The RFP included an initial meeting, monthly
reports to staff, public hearing in front of IWB and the four
other entities involved.
Commissioner Hunt discussed the current billing cycle being
every other month and the discussions on whether this should
be changed to monthly. Will the results of this study help in
making that decision? Mr. Reed stated that they can looked
into what will be involved. Mr. Reed continued to say that
from a cost standpoint, monthly billings would only be
valuable for the large use customers . He continued to discuss
the possibility of estimating bills also.
Mr. Scheiderich questioned to what extent within the scope of
work would they compare the approach to be taken with other
local water providers (comparison among local providers) ? Mr.
Reed stated that they would be willing to do a survey of a few
neighboring communities . Mr. Reed continued to say that they
would obtain copies of their rate schedules and the SDC' s that
they have and show monthly bills in a comparison format .
Mr. Scheiderich questioned whether they would be prepared to
show projection has fulfilled itself in other entities? Mr.
Reed stated that in terms of the five year projection of what
rates should be, he would be concerned about making
projections since there are a lot of variables .
Intergovernmental Water Board - May 17, 1995 Page 4
ECONOMIC AND ENGINEERING SERVICES
Mr. Lowry introduced the firm of EES . Randy Goff began the
presentation by introducing himself as the Vice President of
EES out of the Portland office. He then introduced Tom Gould,
Vice President out of the Bellvue office.
After finishing their presentation, Commissioner Hunt
questioned the computer model being a requirement of the RFP.
Mr. Goff stated that the model would be included in the study
and the documentation. They stated they will also be here in
the future if additional assistance is required in the future .
The Board took at break and resume the meeting at 6 : 58 p.m.
6 . Discussions and Recommendations on RFP
Ed Wegner stated that after hearing the three presentations
that the Board heard and reviewing all the documents and with
the familiarity of various consultants within this system, the
staff would recommend the use of Economic and Engineering
Systems .
Chair Manning questioned what factors this recommendations was
based upon? Mr. Wegner stated that all the companies
represented made contact with his office when picking up the
RFP' s . EES asked questions that were based upon what the City
wanted that would be beyond the scope. Mr. Wegner stated that
our RFP was based upon what was picked up from Tualatin
Valley, Beaverton, Hillsboro and EES is the consultant of
record for two out of three of these agencies . Also the City
has worked with Mr. Goff on the Division of Assets .
Mr. Lowry stated that it was his opinion that CH2M Hill would
do their study like they have done 200 others . EES has a lot
of local experience with other agencies that we would want to
be compared with. EES has a slightly higher cost but, the
foundation of this study is vital to the next five years of
the Tigard water system.
Commissioner Manning questioned whether there was any
independent referencing to other communities and
municipalities that these presenters have worked with? Mr.
Lowry stated that he has talked with Rob Masters, City of
Hillsboro and discussed the rate work and they were very
pleased with EES . Mr. Wegner stated that Tualatin Valley also
has a very high regard for EES for work on projects they have
had.
Intergovernmental Water Board - May 17, 1995 Page 5
Commissioner Manning questioned when they worked for Tualatin
Valley Water District other than doing the division of assets?
Mike Miller stated that they worked for them in 1989 or 1990 .
Mr. Miller also stated that the SDC' s are outdated and need to
be updated.
Mr. Wegner stated that EES has been the engineer of record for
the Tigard Water District for years . While EES was working on
the Division of Assets, Randy Goff had stated at that time
that the SDC' s needed to be updated.
Mr. Miller stated that Mr. Meigs (EES) has been working with
the District since 1973 .
Commissioner Manning stated after reviewing the proposals, in
her opinion EES came in third as far as personalization. Ms .
Manning felt that the other two presenters were quite anxious
to educate the Board on setting the parameters on policies .
Commissioner Budihas stated that the first presenters agreed
to have four separate meetings and EES did not mention
meetings with Council or the public . Chair Scheiderich stated
that these meetings were called for in the RFP. According to
Ms . Manning on page 19 of EES' s proposal the meeting schedule
was mentioned.
Chair Scheiderich stated that instead of a motion he proposed
that the Board just go person by person and state what is on
their mind.
Commissioner Hunt stated that :
• CH2M Hill bid came in at two thirds of the other bids
which caused concern.
• DMG (David Griffith and Associates) did not care for
presentation and if results would be comparable to
presentation it would not be good.
• EES - would be the choice of the three. Was bothered
slightly since presentation at the end of the Division of
Assets was not good. Gil Meigs who did that presentation
is not a part of the team to work on this RFP.
Commissioner Manning stated that :
• CH2M Hill - all three project managers were here and all
local . CH2M Hill have worked with DEQ and are very
professional , flexible .
• DMG - Emphasize interacting with community.
• EES - Did not emphasize the interaction possibly since
they already have a basis of knowledge.
Intergovernmental Water Board - May 17, 1995 Page 6
Commissioner Froude stated that:
• EES or DMG either firm would be good. Did not ask the
questions of EES that were asked of the other presenters
which opened up their presentations .
Commissioner Budihas stated that:
• This is a big project and would be best dealt with by
local people.
• CH2M Hill are all local, very professional, have good
reputation.
• EES - only one person here full time, part of project
team will only be working on the project part time.
Chair Scheiderich stated that :
• EES had the most thorough written presentation.
• CH2M Hill product would be the equivalent .
• DMG - not convinced that they understand SDC' s charges .
• CH2M Hill as well as EES have done work for City of
Beaverton with CH2M Hill being more sensitive at the
outset to hearing the social issues .
• CH2M Hill put it' s bid in terms of deliverables and their
own schedule sets up the ease with which a contract can
be negotiated.
• Scope of work is scheduled according to points where a
product is deliverable. EES points out time and
materials .
• CH2M Hill computer model is deliverable on over the
counter software.
• Placed CH2M Hill first with EES a close second.
Mr. Wegner stated that all presenters will be providing the
computer model on over the counter software.
Commissioner Hunt ran a service for utility billing and the
majority in the area did use CH2M Hill and he has never heard
a complaint .
Chair Scheiderich stated that with discussion over, he
requested a motion. Mr. Monahan stated that this motion would
be for recommendation. Mr. Scheiderich stated that this
motion would be to recommend a particular consultant .
Commissioner Manning made a motion to recommend to the Tigard
City Council that the proposal be let to CH2M Hill and the
second choice being Economic and Engineering Services and
Company. This motion was seconded by Commissioner Budihas .
A voice vote was taken with the motion passing four to one.
Froude abstaining.
Intergovernmental Water Board - May 17, 1995 Page 7
8. Regional Water Supply Slide Show
Mr. Wegner stated that there is a slide show within each of
the three participating counties in the Regional Water Supply
Plan. The purpose being to bring all participants up to date
on the supply plan. They will be distributing a draft of the
plan within the next few months with some scenarios to look
over. The City Council will make a recommendation along with
the other twenty-six participants with a final draft being
completed by December. As a part of the public involvement we
will be using this slide show in September for the CIT' s and
if King City or Durham is interested we will also do that .
Mr. Wegner showed the slide show (outline included in packet) .
Mr. Wegner stated that the Participants will be meeting again
on Tuesday where they will begin to put together the what if
scenarios to bring this project to a final first rough draft.
Mr. Wegner stated that he has all the draft documents that are
done to date .
The next meeting for the IWB was set for the June meeting on
June 14 , 1995 .
9 . Adjournment
The meeting of the Intergovernmental Water Board was adjourned
at 7 : 55 p.m.
katby\iwb\5-17mtg.min
Intergovernmental Water Board - May 17 , 1995 Page 8