04/27/1994 - Minutes - INTERGOVERNMENTAL WATER BOARD
Meeting Minutes
April 27, 1994
Board Members Present: Chair Peggy Manning, Chair-Elect Bill Sheiderich, Lynda
Jenkins, George Morgan, Paul Hunt
Staff Present: Pat Reilly, Ed Wegner, Wayne Lowry, Randy Volk, Kathy Kaatz
1. Call to Order
Chair Manning called the meeting to order at 5:37 p.m.
2. Approve April 13, 1994 Meeting Minutes
Randy Volk had one correction to be made to the minutes on page 5 to reflect the correct cost
per 100 ccf to $.57 per 100 ccf. Lynda Jenkins motioned to approve the minutes. Minutes
were seconded and approved unanimously with no further discussion.
3. Visitors Comments
Jack Polans from King City spoke in regards to the information getting out to the public. Jack
would like to see some education provided to the citizens in regards to accessing information.
Chair Manning thanked Jack for the interest in the Community and relaying information back to
the citizens. Board discussed the possibility of putting a group together with Jack's involvement
to bring in ideas and come up with some type of schedule. Patrick Reilly informed the Board
that Mike Miller of the Water Department has been assigned to be a research member of the
Citizen Involvement Teams which may help stimulate some interest in the Water.
4. Continue Discussion on Bylaws Draft
Liz Newton was concerned about the wording on the last paragraph on page 1, requiring the
Board to fill the vacancy of the Chair-Elect. The Board may want to have more flexibility if there
is only one or two months left on a term. George Morgan suggested to the Board that they look
into this issue further since there are other appointments that would influence this position. The
Board discussed whether the Board was in jeopardy in operating without a set of Bylaws. The
Board decided to review this issue at the next available meeting.
5. Budget Discussion
Patrick Reilly introduced Wayne Lowry, Finance Director, who gave an overview of the Water
fund. Wayne provided the Board with some additional information that had more complete
information than was originally provided. Wayne Lowry stated that this budget has been
assembled and will include the same level of customer service that is currently being provided.
This budget will include no new policy developments or no new direction on the operations and
Intergovernmental Water Board Meeting Minutes - April 27, 1994 - Page 1
maintenance side. Patrick Reilly stated that on the administrative side there is a very deliberate
effort being made to integrate within the City structure and to achieve whatever efficiencies
possible by consolidating our operation. In regards to capital projects, we are in a treading
water stage waiting the outcome of the Murray Smith report. On the operational side we are
looking at the prospect of making some organizational changes during this transition period.
Wayne Lowry indicated that by looking at the Operating Budget line you can see a historical view
of the budget. George Morgan questioned whether there was an attempt to determine what the
ending fund balance was or whether there were guidelines used to determine fund balances in
response to a possible rate reduction? Wayne Lowry stated that we have not gotten into rate
projections. Patrick Reilly stated that we have not adopted a financial philosophy at this time,
but are trying to operate the City into multiple year thinking.
The Board discussed whether the Water employees were completing all new installations versus
the developers completing those. This practice has not changed and the Water employees are
completing all new installations.
Wayne Lowry explained the Budget Matrix which is compiled the same way for the City's budget.
This matrix included the three water funds; Water General Fund, Water SDC, and the CIP
Reserve. The City charges various activities to various funds which includes administrative type
charges. Effective March 1, 1994 the City began charging back to the Water department any
appropriate charges.
Chair Manning questioned the charges for the Mayor and City Council that is reflected in the
Water budget. Wayne Lowry stated that these charges were for Council preparation, as well as
dealing with Water issues on their agenda. The Board questioned where the actual costs are
incurred at for this item. Wayne Lowry stated that a portion of their budget is split between the
different divisions. Some of these expenses include, medical insurance and travel and training.
George Morgan had a question regarding the Non Departmental line item on the budget and
if it included activities that might relate to the IWB Board and activities being done beyond the
present personnel. Wayne explained that this line is a part of the operating budget which include
utilities, City Attorney fees and also dues paid to outside agencies.
George Morgan inquired as to whether there is a glossary that would outline this information?
Wayne Lowry stated that he has drafted a rational for the Water budget and when that is
completed he will provide that to the Board. George Morgan also questioned in response to
Pat's memo, the reference to the Intergovernmental Agreement which identifies a number of
other responsibilities that the Board has and would like to know if there is somewhere in the
budget that these will be addressed. Wayne stated that the budget proposal assumes that this
Board will be supported by staff and have necessary needs and if there is something in the
Agreement that the Board will take on later that has significant cost attached to it, the Board
should consider adding them to the budget.
Intergovernmental Water Board Meeting Minutes - April 27, 1994 - Page 2
Chair Manning questioned whether the Board would have the opportunity to have access to the
budget balances on a quarterly basis. Pat Reilly stated that this would be addressed with the
Director's report.
Bill Scheiderich asked whether the City would be making voluntary contributions to Metro
Planning this year and plan to also continue that for next year? Wayne Lowry stated that is in
the budget proposal.
Wayne Lowry discussed the Water SDC Fund and the CIP Reserve Fund are in the mode of
accumulating funds for future projects and the main future project is the reservoir. What is being
proposed in the budget, is to estimate that there will be these beginning fund balances at the
beginning of the 94/95 fiscal year and they will get additional revenue and propose to
appropriate the full amount for capital improvements. The Board and the City Council will be
involved in expending any of these funds. Discussion was also held on Contingency Funds and
that they cannot be spent without a Council Resolution, but the matter would be brought before
the Board. Debt Service Fund was discussed and those funds will be budgeted by each entity
(City of Tigard, TWD, Durham and King City).
FTE's for the Water Budget are 15.5 which report to the Maintenance Service Division and some
additional 3.5 FTE's are being moved to other areas where their funds will come from the
appropriate budget. Since the City of Tigard is operating under a FTE cap, the vacancies in the
Water Budget could be moved to other areas within the organization.
George Morgan questioned the time frame on the budget process. May 23, 1994 is the first
Budget Committee meeting for the City of Tigard. The Board's recommendations can be given
directly to Patrick Reilly so that rhis
rented dgretctproposal will to the Budget Colect the mmittee asVstatedater B�the
ard
recommendations or they could be p Y
IWB Agreement.
George Morgan stated that he felt that the Board should identify the assumptions that the Board
had, either in endorsing or recommending some changes to the budget document. Also
discussed the issue of a narrative being prepared that would outline objectives and performance
measures. Chair Manning would like to submit a document from the IWB that would stay with
the budget and be submitted to the Budget Committee and City Council to be in compliance with
the IWB Agreement. It was suggested by Bill Scheiderich that the De-Facto Administrator draft
a narrative for the Board to review.
Ed Wegner stated that Maintenance Services feels very comfortable with the 15.5 FTE that are
allocated for operation and maintenance of the water system. Some of these 15.5 FTE's may
not have the same title or responsibilities six months from now as a result of a lot of historical
research that has been completed with Randy. Some areas of interest would be heading to a
preventative maintenance program. Capital Improvement budget was based upon the
recommendation from staff as it is seen today, together with what the past Tigard Water District
Board had outlined, with a lot of flexibility waiting for the Murray Smith report. Finance
Intergovernmental Water Board Meeting Minutes - April 27, 1994 - Page 3
Department has worked on consolidating a lot of accounts to be more manageable from a
departmental standpoint. Ed Wegner recommended that the Board go page by page and make
comments and voice concerns.
George Morgan talked about the need to have a work plan. Where is the Water Board headed,
how did we get where we are, the need for a cost allocation and cost accounting, the
importance of what the staff visualizes as the next order of priorities in order to enable the Board
to be productive and supportive. Chair Manning stated that this plan be coupled together with
the budget document. Patrick Reilly stated that the City will get together this information to
provide to the Board during this period of transition. This budget reflects a drop in excess of
$300,000 from the prior year budget, without any impact on operation.
During this transition period, it was discussed by the Board that this is a learning period for both
the City as well as the new Intergovernmental Water Board.
Pat Reilly stated that what seems to work well with the Budget Committee, is if there are
individual questions in regards to a particular account, we have encouraged people to contact
the City Administration directly in advance of the meeting, so they can come prepared to the
meeting and prepared to answer. If the Board has particular questions, it was decided that the
Board could direct those questions to Ed Wegner with a reference to the printed number on the
proposed budget document.
Chair Manning noted that with all her past experience with budget documents, this document
is very user friendly and nicely done.
6. Non Agenda Items
Director's Report: Ed distributed the copy of the Monthly Water Report that would be useful for
all members of Staff, Board Members, and Council. This report will be distributed the first
meeting of the month. This report will include a recap of revenues/expenses, major work
status report, compliant accomplishments, Water consumption/loss, p summary and operational
changes. As shown in this report the majority of the work being accomplished is within the City
limits due to the fact that the majority of patrons are in that area.
Ed Wegner discussed water consumption/loss and stated that a water loss of no more than 5%
is acceptable. The industry standard for water loss is approximately 3.5%.
The Maintenance Services Division will be putting together a master calendar for staff purposes
that will reflect all the Council and Board meetings for a one year time period. The Water
Monthly Report will be included with the agenda packet.
Intergovernmental Water Board Meeting Minutes - April 27, 1994 - Page 4
Chair Manning wanted to commend Ed Wegner, Randy Volk and the rest of the staff for the
report. George Morgan also stated that he appreciated this summary and thinks that the
savings should be quantified so as to make it more noticeable and can be translated into a more
positive tone.
7. Non Agenda Items
For informational purposes, Patrick Reilly stated that the Council has approved purchase of
SCADA System and the vendor for this purchase is Central Points Control.
8. Set Next Meeting Agenda
• Budget Detail
• Review narrative that Staff will prepare to be included with Budget document.
• Consolidation in savings information out to the citizens.
Bill Scheiderich suggested to be included in future agendas is information from City of Tigard
Water Department's point of view, the progress of the RGPA study. He stated that he would also
like to know what the City is doing in regards to Well Head protection inventory survey which
was mandated by the State Legislature Session.
9. Adjournment
Bill Scheiderich motioned to adjourn the meeting and Lynda Jenkins seconded the motion. The
meeting was adjorned at 7:15 p.m.
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