02/24/1999 - Packet Book Copy
INTERGOVERNMENTAL WATER BOARD MEETING
Serving Tigard, King City, Durham and Unincorporated Area
AGENDA
Wednesday, February 24, 1999
5:30 p.m.
1. Call to Order
2. Roll Call and Introductions
3. Approval of Minutes
December 9,1998
4. Long Term Water Supply Update - Ed Wegner
5. 1999/00 Budget Summary - Mike Miller
6. Adjournment
Executive Session: The Intergovernmental Water Board may go into Executive
Session under the provisions of ORS 192.660 (1) (d), (e), & (h) to discuss labor
relations, real property transactions, and current and pending litigation issues. All
discussions within this session are confidential; therefore nothing from this meeting
may be disclosed by those present. Representatives of the news media are allowed
to attend this session, but must not disclose any information discussed during this
session.
kathy\iwb\1-27
INTERGOVER�IIEIY L WATER BOAR-D
DECEM3ERg9, x998
Members Present: Paul Hunt, Beverly Fronde, Jan Dransholt, and Patrick Carroll.
Staff Present: Ed Wegner, Mike Miller, Jennifer Renninger
Visitors Present:
1. Call to Order
The regular meeting of the Intergovernmental Water Board was called to order at 5:33
p.m.
2. Roll Call and Introductions
All members of the Board were present with the exception of Bill Scheiderich. Mr.
Wegner introduced Eric Hand, Wastewater Supervisor who has worked for the City of
Tigard for one year in the Utility Division. Mr. Wegner also wanted to introduce
Jennifer Renninger who will be working with Mr. Wegner and Mike Miller as a Water
Resource Specialist for the next few months. Dependant upon what happens with the
water supply will determine Ms. Renninger length of stay with the City. Ms. Renninger's
initial goal will be to work on the two scenarios next week. Currently she has been
reviewing the history of the water supply issues. Kathy was absent at tonight's meeting
since she was attending another meeting.
There were no minutes ready for approval at this meeting.
3. Long Range Water Supply Update
Mr. Wegner stated that both proposals are due next Tuesday(Portland scenario and the
Willamette scenario). Mr. Wegner stated that he has not reviewed the draft of these
reports and is waiting until the proposals are submitted. Commissioner Froude
questioned whether these proposals will be complete or come in phases? Mr. Wegner
stated that these proposals will come as a working document. There was a scope of
services for the Willamette and this scope of services was then taken to Portland and both
of these groups are addressing questions that were directed to them. Mr. Wegner stated
that he would suspect that additional clarification will be needed on both proposals after
the review, although he is hopeful these documents will be complete enough for some
decisions to be made as they are presented. Commissioner Carroll questioned whether
%'� Portland would address costs? Mr. Wegner stated that costs were one of the issues that
Portland was asked to address as well as certainty of water and transmission for the
Tigard area. The Portland scenario will address issues that would effect all the wholesale
customers. The City will be sending out one more newsletter next week that will be
distributed to all rate payers for the Tigard water service area and will address water
quality. This newsletter will compare EPA standards to the Portland system and to a
proposed Willamette system. The information provided will not draw any conclusions
but will outline the standards for turbidity and metals and will outline what the pilot
project showed in graph form for the Willamette and the Portland system. Commissioner
Froude questioned whether the proposals will be provided in a form that will be available
to the public? Mr. Wegner stated that originally these proposals were to be distributed to
all interested but are currently waiting for clarification from the City attorney on
distribution. The preference would be to distribute these after the staff and Board
members have reviewed them. Mr. Wegner stated he will contact the Board tomorrow to
notify them on distribution.
Regional Transmission- Mr. Wegner distributed a review by the Regional Water
Consortium on completing a regional transmission interlinking. Twenty of the twenty-six
members of the Water consortium spent a day reviewing the prospect of regional
transmission. All present agreed that some type of interties that are shown on the fold out
map (CH2mHill) are needed. This map outlined the existing major transmission lines
connecting the Bull Run source to all its customers, various Clackamas River sources and
the Joint Water Commission (Hillsboro, Forest Grove, Beaverton). This map also
showed how all twenty-six members of the Consortium would like to see the region
connected through various sources of water with both planned future piping and
conceptual future piping. It was determined by the Consortium that some sub-regional
decisions have to be made with the region in mind. Tigard, Tualatin, Sherwood and
Wilsonville have to decide whether they will use the Willamette as a water source before
transmission decisions can be made. The Clackamas people have to decide whether they
want to tie their waterpjants together before they can make transmission decisions. Once
these types of decisions are made then decisions can be made on types of transmission
and how they would be funded. Mr. Wegner stated that most of the individual agencies
feel that the subregional decisions need to made initially. The Consortium Board directed
it's staff to take this memorandum and prioritize the decisions that need to be made to
make a regional transmission study possibly.
The Board members discussed which of the reservoirs were planned and budgeted, the
Joint Water Commission (Forest Grove area) has been budgeted, Powell Butte has
planned for a second reservoir but has not been funded.
Commissioner Hunt stated that the City of Tigard has received the papers to begin an
initiative petition to put on the ballot in September that would change the City's charter
and prohibit the City from building a treatment plant on the Willamette River. This
charter amendment would effect only the citizens of the City of Tigard. Mr. Hunt
continued by saying that as soon as the City Recorder for the City of Tigard determines ,,,.
that this is legal petition, it will then be forwarded to the City attorney and he will write
an initiative title and then they can start collecting signatures. If a sufficient number of
signatures are obtained, the City of Tigard will then have to pay the costs of an election.
Commissioner Froude questioned the legality since this would disenfranchise the other
members of the Tigard Water service area. Mr. Wegner stated that since the others have
contracted with the City of Tigard to provide water service they have given up that right.
Commissioner Froude continued by saying that no matter what they outcome the other
members should have the right to vote. Mr. Wegner stated that this Board was set up to
allow the members that were elected by their respective areas to bring back to the City of
Tigard Council and staff what your constituents believe from your respective areas. Mr.
Wegner stated that in the next six months there should be a way for citizens to have input
into this water decision. Mr. Wegner reiterated the reason for the election of the members
of this Board was to represent the people in the respective areas. Mr. Wegner stated that
at this time the ballot title has not been written. Commissioner Froude stated that the big
concern is getting the information to the citizens so they understand the differences
between the two proposals and how they are going to affect their pocketbook.
Commissioner Froude continued by stating that those that have been involved with these
water issues are more familiar but the average person is not and it is difficult to put
emotion aside and look strictly at the facts for the short and long term. Ms. Froude stated
that it is difficult to explain it is not just Bull Run versus the Willamette. Mr. Wegner
stated that while they have attended several meetings at smaller groups and it has been
very difficult to explain what treated water is and what are the difference in the water.
Commissioner Hunt stated that after we receive and review the various proposals we will
be better able to detail the facts. Commissioner Hunt stated that the main issue will be
whether we can produce pure water from the Willamette. Mr. Wegner stated that we
cannot lose site of our number one goal of providing water to the City of Tigard in five
years and through the next forty years. Mr. Wegner stated that the City of Tigard needs
to have a long term solution online by 2003. Mr. Wegner continued by saying that once a
decision is made in April there will still be a lot of decisions to make no matter which
scenario we choose.
The Board continued to discuss the fact that a decision cannot be made until the reports
are out and can make decisions based upon the facts provided.
Mr. Wegner provided the Board with a couple of articles from the Wall Street Journal and
an article titled Management from the Buyers Perspective on electricity. He requested
that the Board review this information and become aware of the growing issue of
privatization. There are a couple of companies currently in the United States buying
water plants and offering incentives, United Water who bought out Atlanta, Georgia and
Enron. Enron is currently in the Portland area and have begun attending Water
Consortium staff and board meetings.
Mr. Wegner stated that the Mayor, Paul Hunt, Council people from Tualatin, Wilsonville
and Sherwood took a tour of the Joint Water Commission. Some additional water tours
are currently being planned. He stated that he would also like to go to Corvallis as well
and is attempting to set a meeting in January to have an annual meeting where the elected
Board Members will be invited. The City attorney is currently checking the possibility of
all the members of these groups together at one time.
S. Set Next Meeting Date
Mr. Wegner stated that he did not want to set the next meeting date at this time until we
find out about the possibility of a joint meeting. A tentative schedule has been set to
meet the next four months on the second Wednesday and the fourth Wednesday could be
utilized to set some public forum meeting. Commissioner Hunt questioned whether the
staff would be able to analyze the reports by the next meeting in January. Mr. Wegner
stated that since we have a full time staff member assigned to focus strictly on the water
supply issue we should have both proposals reviewed by that date.
6. Adjournment
Motion to adjourn made by Commissioner Dransholt and seconded by Commissioner
Hunt,passed unanimously.
MEMORANDUM
TO: IWB and WRWSS Staff
FROM: Ed Wegner
RE: Corvallis Treatment Plant Tour
DATE: February 22, 1999
Please review the attached memo and distribute to staff and elected officials. Please
coordinate your agencies registration with Jennifer Renninger. Jennifer can be reached
at 639-4171, extension 429 or e-mail at iennifer(@ci.tigard.or.us
Please note the registration deadline is Wednesday, March 3.
Thanks!
i
IvlernaYlm
To: All participating members of the IWB and WRWSS report
CC: Ed Wegner
From: Jennifer Renninger, City of Tigard
Date: 02/18/99
Re: Corvallis Water Treatment Plant Tour
The City of Tigard is hosting a tour of the City of Corvallis water treatment plant on
March 6th, 1999. All elected officials and staff members participating in the IWB
and Willamette River Water Supply System report are invited. Registration is
required. We have chartered a bus and we will meet at Tigard City Hall at 8:30 am.
The trip will last the majority of the day and should return late in the afternoon.
Lunch is provided so please register no later than Wednesday, March 1St. To
register, please call Jennifer Renninger at 639-4171 ext. 429.
.. ... .... .... .
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_.....__.. . _ _ _ _. ._._.._
i
MEMORANDUM
TO: Ed Wegner and IWB Members C
FROM: Mike MilleraU
RE: Fiscal 1999-00 Budget Summary
DATE: February 24, 1999
Program Highlights
• Reorganization of the Water Section to create a second Water Supervisor position. We are
also requesting an additional FTE (personnel) to create a Water Resource Specialist position
to provide additional staff support during the selection and implementation of a long-term water
source.
• This will be the third year of a reservoir-cleaning program that utilizes hard hat divers to clean
the reservoirs while they remain in operation. $12,000
• Continue with the meter replacement program consisting of replacing all meters 1 '/" and
larger with meters that are capable of capturing extreme low flows. $300,000
• Construction of a new 24-inch water main along SW Beef Bend Road from SW 131St Avenue
to SW King Arthur. This project is being coordinated with Washington County's MSTIP 3
project.
Expenditures
• Water rates are going to increase from the City of Portland. Currently we pay $0.66 per CCF.
Beginning July 1, 1999;`6ur new price will be $1.226 per CCF. This is based on our peaking
ratio from this last summer. Water costs from all sources is budgeted at $3,154,100. This is
an increase of$1,011,060 over the current fiscal year.
• SCADA. Parts of the SCADA system are now eight years old and some newer technology is
now available to help operate the system at peak efficiency. We are requesting $50,000 to
perform a system review and analysis. In addition we are requesting $25,000 for repair and
maintenance of SCADA and the sensors used throughout the system, $6,000 for our lease
phone lines from GTE and an additional $10,000 for new pH and chlorine sensors.
• Seal and paint exterior of reservoirs at Site#1 (Canterbury). $62,000
• Pump and motor rebuilding program $17,000. Pull well #3 and retrofit with submersible pump,
$15,000. Emergency electrical disconnect at Site #1 and Site#2, $10,000.
• Repair and maintenance program for the Cla-Val pressure reducing valve stations, $18,000.
• Annual Water Quality Report. Under the new Safe Drinking Water Act Amendment, all water
systems are required to mail a Consumer Confidence Report (CCR) on water quality to each
customer. $40,000
• Conservation Program (materials, supplies, dues and contractual services), $26,740. This is
an increase of$9,740 from this current year.
• Replacement of 1984 580-E Case backhoe. $70,000.
• Water Main replacements: SW Tiedeman/Walnut/Fonner St. This is due to an intersection
improvement project, $90,000; SW Beef Bend Road (County MSTIP 3 project), $750,000; SW
Lincoln Street from Greenburg to 91St Avenue (a City street improvement project), $60,000.
• Pipeline extensions: 12-inch DI pipe along SW 150th Avenue from SW Bull Mountain Road to
Hawks Ridge $260,000; 12-inch DI pipe along SW North Dakota between SW 115th and 121st
Avenue, $140,000.
• Fire Hydrant replacement program, $60,000.
I
1999/00 Budget City of Tigard, Oregon Printed: 2/24/99
i
i
Department: PW-Water Dept. Budget Unit: 2170
v
.... ?.. Ab .
....... ..:.:..:....
Total FTE 16.00 0.00 0.00 0.00
500.000 Merit Pool 6,043 - - -
501.000 Salaries- Management 109,636 - - -
502.000 Salaries-General 454,855 - - -
503.000 Salaries-Police - - - -
504.000 Regular-Part Time - - - -
505.000 Temporary- Part Time 10,920 - - -
520.000 Overtime 23,886 - - -
530.000 Education - - - -
531.000 Longevity - - - -
Sub-Total Wages 605,340 - - -
550.000 Unemployment 1,211 - - -
551.000 Worker's Comp 10,098 - - -
552.000 FICA/Medicare 46,308 - - -
553.000 Tri-Met Tax 3,739 - - -
560.000 Retirement 61,627 - - -
565.000 Life Insurance 1,764 - - -
566.000 Salary Continuation 2,078 - - -
567.000 Medical Insurance 66,291 - - -
568.000 Dental Insurance 9,926 - - -
569.000 Vision Insurance - - - -
Sub-Total Benefits 203,042 - - -
Total Wages& Benefits= 808,381 - - -
600000 Water Costs 3,154,100 - - -
605000 Water Costs-Electricity 106,000 - - -
606000 Water Costs-Sampling 15,000 - - -
Sub-Total 3,275,100 - - -
601000 Professional Services 96,327 - - -
602000 Contractual Services 68,103 - - -
Sub-Total 164,430 - - -
610000 Rep& Main-Facilities 1,500 - - -
610001 Rep& Main-Lines Etc. 10,000 - - -
610002 Rep& Main-Valves 1 3,500 - - -
610003 Rep&Main-Reservoir 74,000 - - -
610004 Rep & Main-Grounds 1,000 - - -
610005 Rep & Main-Pump Station 44,000 - - -
610006 Rep & Main -Emergency Gen - - - -
610007 Rep & Main -SCADA 25,000 - - -
610008 Rep & Main - Buildings - - - -
610009 Rep & Main -SM Equip/Tools - - - -
610010 Rep & Main- Meters 10,000 - - -
610011 Rep & Main-Serv. Lines 15,700 - - -
610012Rep & Main- Regulators 23,000 - - - _
610013 Re & Main - Fire Service - - - -
RECAPage
1999/00 Budget City of Tigard, Oregon Printed: 2/24/99
Department: _ PW-Water Dept, Budget Unit: 2170
•> 3.
.
.....
...........:::::::....
....................
::..:. ........ . .........:..:..... ..: .... ........:.:..:its:.;::>;;.:;.P�#i�
610014 Rep & Main - Backflow Dev. 200 - - -
610015 Rep & Main-Fire Hydrant 3,000 - - -
610016 Rep & Main-Sample Stat. 500 - - -
611000 Rep & Main -Vehicles 18,500 - - -
611002 Small Tools 4,500 - - -
612000 Rep & Main-Office Equipment 1,000 - - -
Sub-Total 235,400 - - -
613000 Special Dept. Expense 7,084 - - -
620000 Office Supplies & Expenses 3,000 - - -
621000 Advertising & Publicity 43,000 - - -
621001 Conservation Expenses 26,740 - - -
Sub-Total 69,740 - - -
622_000 Fees & Licenses _ 1,222 - - -
623000 Dues & Subscriptions 5,098 - - -
Sub-Total 6,320 - - -
624000 Travel, Food &Lodging 4,500 - - -
625000 Education &Training 5,500 - - -
Sub-Total 10,000 - - -
626000 Fuel Expenses 15,000 - - -
627000 Computer Software 4,500 - - -
630000 Rents & Leases 3,000 - - -
631000 Utilities 4,000 - - -
632000 Insurance - - - -
633000 Property Damage 1,000 - - -
Sub-Total 1,000 - - -
Total Materials&Services 3,794,074 - - -
701000 Land & Improvements 36,500 - - -
702000 Building & Improvements - - - -
703000 Vehicles 1 1 40,000 - - -
704000 Office Furniture&Equipment - - - -
705000 Computer Equipment 6,000 - - -
706000 Operation Equipment 92,090 - - -
Total Capital Outlay 174,590 - - -
::�1f_;i:::si::::;a:2>is: ::«::::<:•: ::s>,t:>:?i � :::is
......:::.::...:......
RECAP Page 2
' ' i
10Q8/UD Budget City ofTigard, Oregon Printed: 3/24/99755100 Line Replacements 900,000.00 -
755200 Meter Replacements 310,000.00 -
'
Department: lwater -IBudge Unit: 6270
/
755300 Meter Installations 70,000.00 - - -
755400 Water Service Installation 80,000.00 - - -
755500 Regulator Installations 40,000.00 - - -
755700 Fire Hydrant Installation 60,000.00 - - -
755800 Backflow Device Installation - - - -
755941 Fuel Tank/Hi-Tor Replace
755942 Fall Protection/Reservoir
755943 Rechlorination Building
755944 #4 Well House Improvements
755950 Remove Fuel Tank/Hi-Tor
RECAP
.
. .
1698/99 Budget City ofTigard, OR Printed: 3/24/99
City of Tigard, Oregon
Water Fund (15)
Revenue Recap
446.010 Water Sales- Metered 3,900,000
446.011 Water Sales- Other 10,000
446.013 Meter Sales 130,150
446.014 Credit for Leaks/Misreads 9,000
446.015 Bad Debt Expense 9,500
447.001 Developer 10% Overhead 60,000
447.002 Developer Engineering Fee 10,000
447.005 Water- Fire Svc. Hook-up 5,000
448.0001System Develop. Charge Reimb. 308,000449.000 Line Extension Rebate - �
451.000 Miscellaneous Fees &Chgs.
3,000
470.000 Interest Earnings 400,000
472.000 Rental Income 11,400
478.000 Other Revenues 5,000
478.001 Water Late Pay Penalties 14,000
478.002 Water returned check fees 2,500
Total Water Fund 4,877,550
Recap
i
i
/
/'
. .
1998/99 Budget City nfTigard, Oregon Printed: 2/24/09
City of Tigard, Oregon
Water SDC Fund (27)
Revenue Recap
450.000 System Development Charges 195,000
470.000,Interest Earnings 20,000
Total Water SDC 215,000
'
Recap'
1098/99 Budget City of Tigard, Oregon Printed: 2/24/99
City of Tigard, Oregon
Water Capital Project Res. Fund (57)
Revenue Recap
-V..... ......
-A&M. -
eJwp--';�:�b
tal
NONE
.................
470.000 Interest Earnings 220,000
499.000 Transfer from other Funds -
Total Water Capital Proj = 220,000
Recap
Cost Efficiency
Both Initial construction costs
and costs of ongoing
operation and maintenance
•. ��yq 2-/6-95
Evaluation . of Costs
Portland/Willamette Proposals
■ Assumptions for Comparison
■ Construction costs
■ Repayment of Borrowed funds
■ Operation and Maintenance Costs
■ Consolidated Net Rate per CCF
Comparison
Assumptions
■ Demand per 'MSA report to Tigard
■ Inflation 2% per year, growth rates as
provided by MSA.
■ Pumping costs.
■ TVWD Wheeling charge
■ Portland Debt Service rates adjusted to
5 . 25%
O/uzr Z-��-99
Construction Costs
■ Tigard Share
7o
■ Portland $66. 5 60
million so
■ Willamette $42 . 7 40 O Portland
million 301/7
O Willamet
20 to
10
0
Cost
Repayment of Borrowed l�
Funds
■ Portland total
$ 139,417, 182 iao
■ Willamette Total 120
$72,970,787 100.0- ° iorHand
eo o �cm �,
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ao �
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El Tigard Operation 0 Portland O&M ❑Portland Debt Service
E 'k
a � M $ 2 F
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2.00 ;
1.50
1.00
0.50-
0.00
O N tt CD O O N tD CC) O N 4 CD co O N "t to GO ON �! tD CD O
O O O O O r r r T T N N N N N M M C7 M 7 fit' 4 CIt It to
O O O O O O O O O O O O O O O O O O O O O O O O O O
N N N N N N N N N N N N N N N N N N N N N N N N N N
Years
Willamette Component Rates
El Tigard Operation ■Willamette O&M ❑Willamette Debt Service
3.50--,
3.00-
2.50-:00 2 50 Af3
2.00-
1.50
.00 1.50
1.00
0.50
0.00 "
O N (0 o0 O N t0 00 O N �f (D 00 O N �t CO c0 O NCD CO O
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O O O O O O O O O O O O O O O O O O O O O O O O O O
N N N N N N N N N N N N N N N N N N N N N N N N N N
Years
Table of Compared Rates at Five Year Increments
For City of Tigard
Portland Willamette Difference
2000 1.73 1.97 -0.24
2005 1.97 2.28 -0.31
2010 2.35 2.26 0.09
2015 2.46 2.33 0.13
2020 2.98 2.35 0.63
2025 3.23 1.51 1.72
2030 3.18 1.58 1.59
2035 2.67 1.66 1.01
2040 3.20 1.77 1.43
2045 3.13 1.88 1.25
2050 3.38 2.00 1.38
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O TtA1vb
Q Jeffrey L. Rogers, City Attorney
CITY OF City Hall, Suite 430
1221 S.W.4th Avenue �
PORTLAND, OREGON Portland, Oregon 97204
Telephone: (503) 823-4047
OFFICE OF CITY ATTORNEY Fax No.: 823-3089
I851
February 1, 1999
INTEROFFICE MEMORANDUM
TO: Mike Rosenberger, Administrator
Bureau of Water Works
FROM: Terence Thatch -
Ruth Spetter
Deputy City Attorneys
SUBJECT: Wholesale Water Sales: Issues of Certainty and Governance
You asked us to address certain legal issues arising from the renegotiation of the City's
long-term wholesale water contracts. In particular,you wanted us to discuss: (1) the City's legal
authority to sell water wholesale(the"surplus water" question); and (2) methods available to
expand wholesale customer involvement in the"governance" or ownership of the City's water
system or an expanded regional system.
In what follows, we give brief answers to your questions. We will first discuss the City's
authority to build and operate a water supply system and its right to sell water outside the City
limits. Given our answer to those questions,we will then discuss various ways in which the
region could address concerns about system"governance" and ownership.
I. City Authority to Develop a Water Supply System and Sell Water Outside City
Limits
The City Charter contains three provisions directly relevant to the City's authority to own
and operate a water supply system. Two are found in the general enumeration of City powers
found early in the Charter where the City is granted the power
to provide for the location, construction,repair and maintenance in or outside the
City, of any ditch, canal, pipe, or other facility for the impoundment, storage or
conduct or water . . . as it may deem necessary or convenient; . . . [and]
to provide for furnishing the City and its residents with water, and to sell water to or for
nonresidents.
An Equal Opportunity Employer
TDD(For Hearing&Speech Impaired) (503) 823-6868
1995
Mike Rosenberger
February 1, 1999
Page 2
Charter §§ 2-105(a)(30), 2-105(a)(31) (emphasis added). The third water-related Charter
provision is § 11-101. It provides (emphasis added) as follows:
The City may construct, reconstruct, purchase or otherwise acquire, maintain,
improve, alter and change water works and all plants anti facilities found
appropriate by the Council for furnishing water to the City, its property, its
inhabitants, and the places and people along or in the vicinity of the pipes,
conduits or aqueducts constructed or used for that purpose. . . . The Council may
make all necessary expenditures to carry out these purposes and may enter into
contracts for supply of water by the City or supply of water to the City or its
inhabitants. Any surplus water may be sold to persons, public or private, outside
the City, on terms and conditions the Councils finds appropriate.
On first reading,these Charter provisions may appear somewhat confusing. One section
gives the Council unlimited authority to sell water to residents and non-residents; another
specifically authorizes the sale of "surplus water." The ambiguity can be reconciled, however,
upon a closer reading of the Charter as a whole. Upon such a reading, we conclude that the
Council has very broad power to sell water,not just"surplus water," outside the City limits. The
basis of our opinion follows.
Section 2-106 of the Charter announces that
The . . . enumeration of particular powers granted to the Council in this Charter
shall not be construed to impair any grant of power herein contained, express or
implied, nor to limit any such general grant to powers of the same class or classes
as those so enumerated. The City Council may exercise any power or authority
granted by Oregon statute to municipal corporations at any time and also to cities
of a class which includes the City of Portland.
In addition, § 13-201 of the Charter says that
Any restriction or limitation imposed on the authority of the Council by Charter
provision, applies only as its language explicitly and necessarily requires.
Simultaneous or subsequent specification of authority is not exclusive and does
not impair other or general authority and power granted by existing or future
Charter provisions, by statute or by general taw. . . . This Section applies, unless
expressly negatived, to all present and future Charter provisions.
We read these sections of the Charter to allow the Council to exercise any power granted
to it according to the specific terms of the grant. A separate but more limited grant of a similar
power does not diminish a broad grant of authority unless the limitation is explicit. Put
otherwise, if the Charter contains both a larger and a smaller grant of authority on the same
subject, the Council may generally exercise the broadest authority available to it.
Mike Rosenberger
February 1, 1999
Page 3
Here, the broadest authority to develop a water supply and sell water is contained in §§ 2-
105(a)(30) and(31). No other Charter section contains an explicit limitation on the authority
there granted. Our considered opinion, therefore, is: (a) that the City is authorized to develop a
wat--: system sufficient to serve its residents as well as persons and entities outside City limits
and (b) that the City need not, although it may, sell only "surplus water" outside the City. (The
City Code authorizes the Water Bureau to sell"surplus water"to non-residents. § 21.28.010.
Given our reading of the Charter,the Code authorization need not be so limited.)'
II. Governance and Ownership Issues
We next turn to the question of how the wholesale customers might gain more ownership
or more say in the governance of the regional water supply and transmission system much, but
not all of which, is currently owned by the City of Portland. Please bear in mind that this is
simply a summary of options. If any are deemed of particular interest, we and lawyers for the
other interested parties will have to spend time looking more closely at how they might be
implemented. In almost all cases, questions of the legality of a particular approach should be
addressed with the specific proposals before us,rather than on a hypothetical basis.
A. Joint Ownership of Facilities
There are a variety of methods whereby existing or new facilities could be jointly owned
by any number of municipal entities. First, ORS 225.050, long in the statute books, authorizes
"any and all cities . . . [to] construct, own, or operate jointly, in such proportion as they may
agree, waterworks and water pipe lines, water rights and water." They may own and operate
such systems in their own names or through joint commissions or agencies.
Second, and more broadly, ORS 190.003 to 190.110 allow local governments to enter
into virtually any intergovernmental agreement useful to fulfill their public functions. An inter-
governmental agreement could clearly allow for water supply facilities that are "jointly
constructed, owned, leased or operated." ORS 190.010(3).
B. Cooperative Management
No matter who owns the facilities, the City Charter and Oregon statutes are also flexible
enough to define a variety of arrangements for"governance" or participation in water system
management.
' The City's Charter authority is also reinforced by the general statutes of Oregon, which
allow municipalities broad authority to sell water to both their own residents and others. ORS
225.020, 030. By contrast,water districts appear to be limited to the sale of"surplus water"
outside district boundaries. ORS 264.111.
Mike Rosenberger
February 1, 1999
Page 4
First, the City Charter authorizes the City Council to establish"such boards and
commissions as it may deem necessary . . . "and to "delegate any of its non-legislative
functions"to such boards. City Charter §§ 2-103, 2-104. Without question, the Council could
establish a board or commission of wholesale customers to advise the City Council on water
supply management. It could also probably give that board or commission more or less actual
decision-making authority on water management decisions, although in each case we would have
to look closely at whether the authority granted was "legislative"or"non-legislative."
Second, ORS 190, already mentioned, offers several options for setting up cooperative
management schemes. One party can act for any or all others. ORS 190.010(4). Or a
"consolidated department" can be created. ORS 190.010(1). Or an entirely new organization
can emerge from such an agreement. ORS 190.010(5). Most broadly put, the entity or person
designated to act for an intergovernmental group may be "vested with all powers, rights and
duties relating to [its] . . . functions and activities that are vested by law in each separate party to
the agreement, its officers and agencies." ORS 190.030(1).
As you may recall from discussions during creation of the Regional Water Consortium,
lawyers for some of the region's municipalities believe that there are limits to the delegation of
legislative functions (such as budgeting) even under ORS 190, but all agree that there is also
substantial leeway. We believe,at a minimum,that the options under ORS 190 present fruitful
avenues for investigation, although each proposal should be viewed carefully on its own merits.
C. Regional Water Utilities With Independent Governing Boards
The region could also, if it wished, try to create one or more new consolidated utilities,
perhaps using the statutes allowing creation of water authorities or people's utility districts or
domestic water supply districts. Each of these approaches can involve a generally similar
process, starting either with citizen petitions or resolutions of governing boards of cities and
districts that want to merge to create a new district or authority. See generally, ORS 198.010 to
198.915; ORS 261.005 to 261.900; ORS 450.650 to 450.700. Water authorities, people's utility
districts, and domestic water supply districts, once formed, become separate entities from the
districts or cities from which they were created. They are governed by a separate, elected board
of directors.
Presumably, if a regional entity of this sort were formed, it could then, by inter-
governmental agreement, perform whatever functions the various municipalities and districts
agreed it should perform. Water authorities are specifically granted the right to accept water
rights and water permits from any other municipality. ORS 450.69 . Similar transfers could
probably be arranged under ORS 190 to a regional people's utility district .,r domestic water
supply district, although such transfers raise water law questions we have not yet begun to
explore in depth.
Mike Rosenberger
February 1, 1999
Page 5
Conclusion
We hope this discussion is useful to you. At your convenience and if you wish, we would
be happy to discuss any of the topics we address here in more detail.
TLT/RS:jtl
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G:\WATER\MISC.TnSURPLS.BRF
COMPARE THE OPTIONS:
WILLAMETTE RIVER VS. PORTLAND
The following is a side-by-side comparison of the evaluation criteria for both
options. The top three criteria are water quality, cost of water and certainty of
supply.
WILLAMETTE PORTLAND
Water Quality
• Watershed susceptible to agricultural • Watershed closed to agricultural and
and industrial pollution. industrial activity
• Raw water requires filtration to meet • Raw water does not require filtration,
drinking water standards only disinfection, to meet drinking
water standards
• Proposed treatment: Granular • Current treatment: Chlorine
Activated Carbon filtration and ozone disinfection
disinfection
• Water Treatment Plant expected to • Treatment (filtration, ozone and/or
produce water that exceeds future ultraviolet disinfection) in 2020 is
regulations expected to meet future regulations
• Capable of treating raw water with • Capable of supplying water with
turbidity levels up to 200 NTUs turbidity levels up to 5NTUs, until
treatment plant is online in 2020
• Removal of Cryptosporidium and • Disinfection of Cryptosporidium and
Giardia- >99.99% in 2002 Giardia—Removal in 2020 with
filtration
Costs
• Total project costs: $92M, Tigard's • Total project costs: $555.5M, Tigard's
share $42.7M share$66.5M
• Based on 20 mgd capacity • Based on 25 mgd capacity
Certainty of Supply
• Proximity to source— 11 miles • Proximity to source—40 miles
• Little risk of shutting down plant due to • Heavy rains and increased snowmelt
elevated turbidity increase chance of Bull Run shutdown
due to elevated turbidity levels
W THE OREGONIAN, THURSDAY, FEBRUARY 18, 1999
SOUTHWEST
VOICES
j Tigard- I ays i afe -i n stud i n water o MonstspY
By GRETCHEN E. BUEHNER Portland has addressed serious questions event occurred,such as a big earthquake on
9 1 t t ffi
� about safety—because of past industrial con Mount Hood?Is the well system sucient to
he Tigard Water Board,of which tamiriation—of the Columbia shore well sys- provide water for an extended repair period?
I'm a member,is one of four,entities - tem,which supplies some Portland water. Tigard would co-own the WillamAte plant
in the Tigard area responsible for Gretchen E.Buehner is a member of the Tigard Portland proposes a supply ratio of 80 percent with other cities.Water level concerns for en-
choosing between theWillametteWater Board,lawyer and former biochemist. B�Run and 20 percent Columbia shore well dangered fish populations have been antici-
River and Portland's Bull Run/Columbia water.The Oregon Department of Environ- pated in the plan.The Willamette plant would
shore well system for a long term water mental Quality has determined•that,the wells provide an additional water source if a cata-
source.Almost a year ago,the boardbegan an nants to raw,water to see whether the contain-` being.used are safe for drinking-Portland con- strophic event shutdown Bull Run for an ex- ;
in-depth review looking at water:quality,price inants were removed after treatment. tinues to monitor this issue. tended period.
and security of supply:. .: They-tested for bacterial and standard river The conclusion is that the Bull Run/ Conclusions
Until about two years ago,the Tigard area contaminants,heavy metals,organic chemi Columbia wells combination would be a safe - -
got most of its water from the Clackamas
cals and volatile-chemicals such as`thechlo- drinking supply for the citizens of the SouthBoth the Willamette and Bull Run/
-S River.That intake is near the mouth of the methylenes and others on the Environmental west ata - Columbia shore well plan would provide sift ;
river.and below the sewage treatment plants Protection Agency list
zees with a safe source of water.But the cost
i - Price m question
analysis continues.The initial numbers indi
ti of several communities.Because.of Lake Os The studytesults stated that all listed chem q
' ' 'Portland would be cheaper the first few fate that the Willamette would be a better deal
' wego s inabilityao guarantee a sufficient sup- icals were not: and or were removed to:unde-,
I for ratepayers,but Iwant more details before•
i ply,Tigard contracted with Portland for 10 testable levels.t�iptosporidium(bacteria). years Portland does not anticipate I sun prepared to make a final decision.
j year period. levels were reiiuced below Bull Run levels be- having to build the filtration plant and other
t There have been complaints about water improvements for some years. Tigard continues to ask for more uaran e
cause'.of filtration: tion from Portland about Bull Run guarantees.
quality`since the transfer because Portland Nothing found in the report or other studies. The,Willamette plan includes the immediate Partial ownership is a critical item in the se-
does not filter its water.Generally,this affects :explains deformed fish found m a stretch of, construction of the treiLtment plant.But after curity of supply.
only the color and-clarity of the water x > theiver known as the Newberg pool: the first few.years,the Portland plan would I hope more information will be forthcom
The Willamette o on Tigard coritinties to.conduct its'raw water become much more expensive.The final fi Wig,to allow us to make the best and most in
monitoring program;-and zny review of the nancial analyysis is still in progress. formed decision:
i The proposed Willamette site is near Wil quarterlyrep_rts indicates cbnsisteritxosults Tigard bas asked for an ownership interest
sonville,many.miles upstream from down The planned$face of the art planf will pro 'the Bull Run systembut Portland:will not you have an issue you feel strongly about?
town Portland and its serious contamination vide safe drinking water for the citizens of thef the issue until Tigard commits to the An experience you want to share?`My Turn"u
problems from shipbuilding and industrial Soufliwest area (Copies.of the reports are Portland system. an opportunity to e�cpress yourself.Submissions '
dumping.It is many miles downstream-frbm available from the citp_bf Tigard.) Portland promises that raising one or both should be about 800 words,or three typewritten,
Newberg.Further upstream,Corvallis,takes - ,� ofthe dariis,or building s third dam will guar ruble spaced pages.My Turn material should
its water from the Willamette. _ordand option` _ antee a suffic}ent water supply.However, be written exclusively for The Oregonian and is
My evaluation.of the Willamette relies upon: Bullitun avategU a safe drinking supply.In -there are lss'ues with the federal government subject to editing.Unsolicited material submit
the raw water.sampling and treatmentproject _.-the future;Vortland will have to install a fit- and environmentalists about listing of various ted for publication becomes the property of The:
conducted by independent engineers between tration plant-fd-B Run:Plant construction species of as endangered.These could Oregonian and.may be edited for publication.
! will be partially dependent on when cryptos- stop the:raising of both dams and building of Published material also may be redistributed '
1994 and 1996;
The project tested chemicals in raw water poridium reach a criticallevel.The bacteria the third:=These and other supply concerns in other media.Write to:Southwest Bureau,
and aftertreatment.Treatment consisted of can be effectively removed only by filtration. are unluiowns at the moment. The Oregonian,15495 S.W.Sequoia Parkway, -
three steps,including one not available in any. The periodic lead level problems because of . Last Christmas,Bull Run was shut down for Portland,Ore.97224,or send a fax to 968-6061.
other treatment plant-in Oregon. the acidity of Bull Runwater can be resolved five daysbecause of turbidity.And what Pleaseinclude a telephone number where we
One test added specific chemical contami byaddition of chemicals. would happen to Bull Run if a catastrophic can reach you during the day.
1 • r
I
MEMORANDUM
TO: IWB and WRWSS Staff
FROM: Ed Wegner
RE: Corvallis Treatment Plant Tour
DATE: February 22, 1999
Please review the attached memo and distribute to staff and elected officials. Please
coordinate your agencies registration with Jennifer Renninger. Jennifer can be reached
at 639-4171, extension 429 or e-mail at jennifer(cDci.tigard.or.us
Please note the registration deadline is Wednesday, March 3.
Thanks!
,ter
I
i
Ivf�ma�zim _ _
To: All participating members of the IWB and WRWSS report
CC: Ed Wegner
From: Jennifer Renninger, City of Tigard
Date: 02/18/99
Re: Corvallis Water Treatment Plant Tour
The City of Tigard is hosting a tour of the City of Corvallis water treatment plant on
March 6`h, 1999. All elected officials and staff members participating in the IWB
and Willamette River Water Supply System report are invited. Registration is
required. We have chartered a bus and we will meet at Tigard City Hall at 8:30 am.
The trip will last the majority of the day and should return late in the afternoon.
Lunch i. provided so please register no later than Wednesday, March 1s'. To
register,please call Jennifer Renninger at 639-4171 ext. 429.