09/11/1996 - Minutes INTERGOVERNMENTAL WATER BOARD
MEETING MINUTES
SEPTEMBER 11, 1996
MEMBERS PRESENT: Beverly Froude, John Budihas, and Paul Hunt
MEMBERS ABSENT: Bill Scheiderich and Robert Tydeman
STAFF PRESENT: Ed Wegner, Mike Miller, Wayne Lowry, and Kathy
Kaatz
VISITORS PRESENT: Roald Lund
1. Call to Order
The regular meeting of the Intergovernmental Water Board was
called to order at 5 : 35 p.m. by Vice-Chair Beverly Froude.
2 . Roll Call and Introductions
Roll call was taken with Chair Bill Scheiderich absent as well
as Robert Tydeman, representative from the City of Durham.
3 . Visitor Comments
There were no visitors present, with the exception of Mr. Lund
who was on the agenda (item #7) .
4 . Approval of Minutes
A motion was made by Commissioner Budihas to approve the
minutes of the May 15 , 1996 meeting as well as the July 10,
1996 meeting minutes . This motion was seconded by
Commissioner Hunt .
5 . Letter for Adjustment - Roald Lund
The Board decided to move and discuss agenda item #7 prior to
reviewing Mr. Lund' s request for adjustment .
Mr. Lowry, Finance Director gave some background information
on the current leak procedure . Mr. Lowry stated that he had
supplied the Board with a memo outlining the new leak
proposal . Previously the IWB with later approval by the City
Council , approved (January) the Tigard Municipal Code, a
portion of which dealt with water leaks . Currently when a
customer has a proven water leak, the staff credits the
customer account .up to $165 for half of the cost of their
water leak (covers a leak up to $330) . This covers excess
water usage not including their average water usage. If the
customer is not satisfied, they have the right to appeal in
writing, to the IWB. This reflects the current policy which
is the same policy the District had prior to the merger
although the dollar amount has increased a few times .
Mr. Lowry continued by stating that during a recent IWB
meeting, Mr. Rolf (in place of Commissioner Hunt) stated that
the customer should pay for the wholesale water that was lost,
which does not include the operation and maintenance costs .
The last three leaks that have come before the Board have been
handled in this manner.
Mr. Lund who is present at this meeting, is in a little more
distressed position due to the size of the water loss . Mr.
Lund does have a 1" meter which accounted for a quicker,
larger water loss . Mr. Lowry stated that the staff is willing
to implement any policy that the Board feels is appropriate .
Mr. Lowry stated that some of the options available are:
• Keep the policy at one half of the water loss with no
maximum;
• increase the maximum that staff could deal with;
• create new policy that is consistent with the way the
last adjustments have been handled. This policy would
have the customer pay for the wholesale water that is
lost .
Mr. Lowry stated that the rate used in the previous
adjustments has been sixty cents per 100 cf which was the
amount paid to Lake Oswego last year. An average wholesale
rate could be applied to water leaks and not have a maximum
which would mean that if someone loses 500 units, staff would
apply the wholesale rate of water, times the number of units
which determine the amount the customer would be responsible
for paying, with the balance been written off as credit . Mr.
Lowry continued by stating that the staff could come up with
the appropriate rate each July 1 for the next year.
Mr. Lowry stated that the contracts between the City and
Portland and Tualatin Valley Water District have brought these
average costs up to an estimated seventy cents per unit
(outlined in memo) . Since Mr. Lund' s water loss occurred
during May/June, his adjustment should reflect the previous
sixty cents rate . Commissioner Budihas questioned the amount
of units used by Mr. Lund? Mr. Lowry stated that Mr. Lund' s
excess usage was 837 units after subtracting his normal usage .
Mr. Lowry stated that the Board could still have the option of
dealing with leaks above the policy. The current policy
allows a customer to come to the Board.
IWB MEETING MINUTES SEPTEMBER 11, 1996 PAGE 2
Mr. Lowry stated that the Board needs to decide what they
would like the policy to be and how it should be structured
and then go back and amend the Code and take the
recommendation to City Council .
Commissioner Hunt stated that consideration should be given to
how quickly the customer has taken care of the problem and the
method used in notifying the customer of the high usage. Mr.
Wegner clarified that a meter is re-read to verify the high
reading. Commissioner Budihas stated that will the cost of
water usage increase? Mr. Lowry stated that it is likely that
this cost will increase but will be reflected with the actual
costs of water (increase or decrease) . Mr. Wegner stated that
since the water is purchased from another purveyor, we pay for
that water whether it is a main break or a customer break. It
is important that we do not have lost water revenue.
Commissioner Froude stated that Tualatin Valley Water
District' s policy is a 50o adjustment on excess water usage
less normal water use.
Commissioner Froude stated that if the Board decides to go
with a figure (possibly 500) would this eliminate the $165
credit amount and eliminate customers from appealing to the
Board? Commissioner Hunt stated that the policy could still
allow the customer the right to appeal to the Board. Mr.
Wegner stated that the new policy would change from the
current $165 credit to seventy cents per unit, less usual
consumption and the customer still has the right to appeal to
the Board. This new policy would cover the costs of the water
purchased. Commissioner Froude stated that when the customer
comes in, they will need to provide repair bills or such to
show that this was indeed a bonafide leak.
Mr. Lowry stated that this policy will state that the costs
will be adjusted yearly to cover actual costs . Commissioner
Froude stated that this new policy information needs to get
out to the customers, perhaps in the Cityscape or in billings .
Mr. Lowry stated that if someone has a leak they contact the
office to discuss the options available.
Commissioner Budihas questioned how many bills have we paid
out the $165 credit? Mr. Lowry stated that we have had four
appeals following the February storms .
The Board discussed whether there is a need to specify in the
policy that the leak needs to be fixed within a certain time
period? It was decided that since the water had been turned
off since discovery of the leak, it is assumed that it will be
fixed promptly so water service can be restored.
IWB MEETING MINUTES SEPTEMBER 11, 1996 PAGE 3
Mr. Lowry stated that the policy should include the average
wholesale water rate which will be determined by the Finance
Director.
The Board stated that the TMC would be changed to state that :
When a water leak occurs on the customer' s side of the water
meter resulting in a unusually high water bill, customers can
apply for a credit to their water bill above average usage
equal to the average wholesale water costs as determined by
the Finance Director and voted upon by the Intergovernmental
Water Board. Customers must apply for credit in writing, to
the City, and forward proof of the leak being fixed in a
timely manner.
Any application for credit over the amount allowed will be
reviewed by the Intergovernmental Water Board.
Mr. Lowry stated that he would provide the policy proposal
revisions to the Board and then would like to take it to City
Council in October. Commissioner Budihas made a motion to
change the Tigard Municipal Code 12 .10. 070 - Credit for Water
Leaks, wording to be changed to reflect the Board' s
Discussion. The motion was seconded by Commissioner Hunt and
passed unanimously.
The Board discussed whether these revisions should be approved
by the Board members that were not present at this meeting.
Since the three members present constituted a quorum, the
information could be passed along to the other members .
Letter of Adjustment - Roald Lund
Mr. Lowry stated that Mr. Lund' s billing reflected the usage
of 837 units of water over the usual usage for this account .
If we charged him at the rate of sixty cents per unit, Mr.
Lund would be paying 502 .20 with a credit of 704 . 72 since his
total leak cost was for $1206 . 00 .
Mr. Wegner stated that when we replace old meters with new,
these new meters run faster and will increase billing.
Mr. Lund stated that he was very satisfied with the outcome of
the Board' s decision and that he will be regularly checking
his meter in the future .
6 . Director' s Report
Mr. Wegner discussed the progress of the Menlor Reservoir
site . Mr. Wegner stated that they have held one neighborhood
meeting which went very well and they have met with the County
on future park property and the property they are considering
is adjacent to the Menlor site . - Murray, Smith and Associates
IWB MEETING MINUTES- SEPTEMBER 11, 1996 PAGE 4
have turned in the permit to the County and the hearing will
be scheduled in October. Staff will be holding another
meeting on the site on a Saturday in September. Once this
date is determined we will notify Board members . The process
has begun on having the tree survey done and at this time
there appears to be no opposition to the proposed reservoir.
Mr. Wegner continued to say that although they have had
difficulty contacting the property owner in Round Tree Estates
(easement issue) , they do not anticipate any problems and MSA
is continuing to work on the design as discussed.
Regional Water Supply Plan and Consortium will have the final
draft out in next couple of weeks . Will have a draft of the
IGA.
Bill Monahan and Mr. Wegner are negotiating with Lake Oswego
on a water sales contract to purchase surplus water - no
parterning. Looks as though the contract will be for five
years with regular renewals .
Sub Regional Committee. Have had two meetings with Water
Commissioner this summer on water rights application and
expect a decision by October.
System Development Charges - Effective December 1 will
- increase as recommended by CH2M Hill . The only testimony
received was a request from the Homebuilders Association to
change the effective date to January 1 which was compromised
to December 1 .
Back in April/May agreed to purchase 1 mgd from Portland, with
the additional demand staff agreed to increase purchase to 2
mgd and have notified Lake Oswego (mid July) .
Randy Volk has retired his position as Utility Manager and the
Department is currently advertising to fill his position. The
Property Manager for the City of Tigard has also left the
organization to move to Texas . The Operation Manager is
working on water and special projects .
Commissioner Budihas stated that in the sidewalk area in King
City (King Richard @ 128th, at the park, 13020 Carmel) there
are small plates that are raising up that are labeled water.
Mr Wegner stated they will check on them and get back to him.
7 . Non Agenda Items
Commissioner Froude questioned whether the Board would like to
contribute to the Peggy Manning Memorial Fund? Mr. Wegner
stated that he would check on whether this could be taken from
IWB MEETING MINUTES - SEPTEMBER 11, 1996 PAGE 5
City funds . Commissioner Hunt stated if this was not
appropriate to be taken from Water fund, the Board members
could contribute individually.
Discussed that the Sprint Mono pole went up today and a check
was received yesterday in the amount of $8, 000 for the
remainder of the year.
8 . Adjournment
A motion was made by Commissioner Budihas to adjourn which was
seconded by Commissioner Hunt.
kathyliwb9-11.min
IWB MEETING MINUTES SEPTEMBER 11 , 1996 PAGE 6