City Council Packet - 01/23/1992 NEW—
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JOINT TIGARD CITY COUNCILMGARD TUALATIN SCHOOL DISTRICT BOARD OF DIRECTORS
MEETING:
WHERE: Larry Hibbard Admin., 13137 S.W. Pacific Highway, Tigard
TIME. 8:30 P.M.
AGENDA WILL INCLUDE DISCUSSION AND INFORMATION SHARING ON TOPICS OF MUTUAL
INTEREST TO THE SCHOOL DISTRICT AND THE CITK'
• School District Boundaries
• Join Projects - School District/City of Tigard
Construction Update - Tigard High School
• Cify/School District Elections
• School District Long-Range Plan
a. Bull Mountain Site Acquisition
b. 10-Year Enrollment Projections
• America 2000 Project
• Report on Tigard Triangle Potential Development
DISCUSSION MEETING - TIGARD CITY COUNCIL
WHERE: Tigard City Hall, Town Hall Room, 13125 SW Hall Blvd., Tigard
TIME. 8:00 P.M.
AGENDA ITEM: WATER STUDY - REPORT FROM CONSULTANT ON WATER SERVICE/DELIVERY
The following jurisdictions have been invited to attend and participate:
• Tigard Water District City of Lake Oswego
• Tualatin Vallev Water Dist. City of Portland Water Bureau
• City of Durham
• City of King City
COUNCIL AGENDA - JANUARY 23, 1992 - PAGE 1
„
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C w!Et-_! or,'+iF SFSSION - The Tigard City Council will go into Executive Session under the provisions of
nrr% mrh, trancantiAnS, current and
ORS 192.660 (1) (d), (e), & (h) to discuss idtuvi
pending litigation issues.
i
ADJOURNMENT
H. `RECORDER ~ CCA \ CCA0123.92
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COUNCIL AGENDA - JANUARY 23, 1992 - PAGE 2
affivm
Council Agenda Item 4,1
T I G A R D C I T Y C O U N C I L
MEETING MINUTES - jA UA VZ 2-21 19:2
JOINT TIGARD CITY COUNT CIL~TIGARID TUALATIN SCHOOL DISTRICT BOARD OF
DIRECTORS MEETING:
(Note: Attached are Minutes provided from the School District for the School
Board/Council meeting.)
Y
Summary of Discussions:
• School District Boundaries -
Dr. Russ Joki, School District Superintendent reported that there continues to be
interest in some arrangement wherein neighborhoods close to other school districts
(i.e., Tigard/Tualatin, Sherwood and Beaverton) could select the school for their
children's attendance. For example, children in the Summerlake area attend
Beaverton Schools and a new development in Tualatin is near the Tualatin High
School but students are in the Sherwood School District. It was noted that because
of Ballot Measure 5 providing for increased State involvement in funding schools, it
is likely that District Boundaries will become less of an issue and students may be
able to enroll in a school on a "seat available" basis outside their attendance areas.
Joint Projects - School District/City of Tigard
City Administrator Reilly advised of preliminary discussion on the sharing of
' resources between the School District and City with regard to building, maintenance,
and grounds keeping. The possibility of sharing buildings/libraries during the
summer or after hours was noted.
• Construction Update - Tigard High School
Dr. Joki advised the remodeling at the High School is on schedule. He
complimented the City Building and ]Planning Departments on their assistance with
the project.
When complete, a Rededication Ceremony is planned; the School District will ask
Council to participate.
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CITY COUNCIL MEETING MINUTES - JANUARY 23, 1992 - PAGE 1
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• City/School District Elections
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Several candidates are running for the School Board in the March election.
Candidate orientation meetings will be scheduled soon.
• School District Long-Range Plan
The School District's demographer recently reported that the Tigard-Tualatin School
District will have over 14,000 students in about two years. In three or four years,
both high schools are projected to have 2,000 students each. There was brief
discussion on options available to manage the increases, including year-round schools.
E
• Report on Tigard Triangle Potential Development
Community Development Director Ed Murphy reviewed the current discussions with
the City and consultant for development of the Tigard Triangle area. It is possible
that multi-family development may occur which would affect the District's planning
for schools, especially C.F. Tigard. Possibly, 1,000 living units would be developed.
1. ROLL CALL
Council Present: Mayor Jerry Edwards; Councilors Valerie Johnson, Joe Kasten,
Jack Schwab, and John Schwartz. Staff Present: Patrick Reilly, City Administrator;
John Acker, Assistant Planner; Loreen Edin, Administrative Services/Risk Manager;
Bill Monahan, Legal Counsel; Ed Murphy, Community Development Director; Liz
Newton, Community Relations Coordinator; Catherine Wheatley, City Recorder; and
Randy Wooley, City Engineer.
2. DISCUSSION MEETING - TIGARD CITY COUNCIL
AGENDA ITEM: WATER STUDY - REPORT FROM CONSULTANT ON
WATER SERVICE/DELIVERY
The following jurisdictions were represented:
• Tigard Water District City of Lake Oswego
• Tualatin Valley Water Dist. City of Portland Water
Bureau
• City of Durham
• City of King City
(Note: A sign-in attendance sheet has been filed with the Council meeting material.)
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CITY COUNCIL MEETING MINUTES - JANUARY 23, 1992 - PAGE 2
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Council packet material contained a copy of the Executive Summary from the J. M.
Montgomery, consultants under contract with the City to study the water issue. Also
in the packet was a January 16, 1992, memorandum to the City Council from
Patrick J. Reilly, City Administrator. This memo outlined why the City decided to
proceed with the study.
Consultants (Ed Tenny and Bob Jossis) from J. M. Montgomery reviewed the j:
Executive Summary of the Tigard Water System Study.
Listed below are some highlights of the consultants' presentation and from the
discussion which followed:
• The study evaluated the condition of the Tigard Water District (TWD) and
the portion of the Tualatin Valley Water District (TVWD) within the City
limits.
• The Consultants reported there were no major "red flags" with regard to the
condition of either TWD or TVWD water system.
• Major water sources in the region were identified; existing sources will not
meet demands. Future supply alternatives need further detailed study and
were reviewed briefly.
• At this time, the financial condition of TWD can be considered sound.
• There have been no increases in TWD rates since 1983. However, the
consultants advised costs and, thus, rates will go up regardless of water system
governance.
• There are no legal or system impediments for withdrawal of territory within
the city limits from a water district. Dissolution of the TWD outside City
limits (Cities of Durham and King City and unincorporated Washington
County) with the City continuing to provide water service to that area is the
most practical mechanism to continue water service to the entire TWD service
area. The dissolution would require an election of the voters in the TWD
outside City limits. Dissolution would be complex and would require a legally
prescribed sequence of events including intergovernmental agreements.
• There was discussion of the regional issues now under review, local control,
water source availability concerns, and intergovernmental relations between
King City, Durham, and Tigard.
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CITY COUNCIL MEETING MINUTES - JANUARY 23, 1992 - PAGE 3
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• Water purveyors in the area have been meeting on future water needs
including water availability and treatment requirements.
• Audrey Castile, Chair of the Water District Board, advised:
She would prefer TWD retain control for as long as practical.
The District has known that water rates will have to go up, but they do
not want it to cost their customers more before it is necessary.
Water issues have become regional, even state-wide in nature.
• John Miller, staff representative of TWD, advised:
The Consultants' study points out that TWD has been doing its job
well.
TWD has been looking for solutions to long-range water needs.
• Future financing options were discussed. One of the challenges will be to
structure financing so that existing customers will not be burdened unduly for
new growth. Is part ownership of a water system which has water source
rights a possibility (i.e., with Lake Oswego)? Lake Oswego City Manager
Harvey responded that capital facilities are potentially available for ownership
shares; however, a lot of research would be necessary before water rights
would be open to negotiation for ownership shares.
• Water quality issues were noted. Lake Oswego has treated water; Portland
does not. A representative from the Portland Water Bureau advised that
their research indicates EPA compliance can be achieved through the turn of
the century without treatment of their water supply.
• Lake Oswego Council representative advised that they were willing to talk
about water issues, but that it was necessary to know who they should be
talking to: Le, TWD, the City, and/or other jurisdictions.
• Maybelle DeMaye, King City Councilor, inquired about obligations Tigard
would have toward King City, Durham and unincorporated areas, if they
assumed the TWD operations. Mr. Tenny advised that, in similar
circumstances in other regions, intergovernmental agreements have been
drawn up to provide for water service. These issues need to be discussed
among Tigard, King City, and Durham, if Tigard decides to pursue assuming
control of the water system.
CITY COUNCIL MEETING MINUTES - JANUARY 23, 1992 - PAGE 4
s
• Portland's regional water study results are expected to be released on
February 25, 1992.
• There was discussion on service when, in the past, cities assumed control of the water operation. In most cases, consum- e£s noticed no difference in water
service.
• Jim Nicoli, Tigard citizen, expressed concern that he had heard no discussion
on whether the City could serve the customers any better than the TWD and
was disappointdd that there was no discussion on why the City should take
over. Mayor Edwards and Councilor Johnson responded that the City was not
prepared, at this time, to decide whether the City wanted to assume
responsibility for water operations. Councilor Schwab agreed with Mr.
Nicoli's perception that the underlying issue is who should provide water
services; sooner or later; the fo ~s ,V.R ve can which entity should administer
the water operation.
• Mr. Bob Santee, former administrator of the Tigard Water District, said he
thought the days of the Tigard Water District were numbered. The catalyst
(for this study) was the merger of the Wolf Creek/Metzger Water Districts
into what is now known as the Tualatin Valley Water District. The Tigard
Water District could have been merged with TVWD if so ordered by the
Boundary Commission. Mr. Santee noted he would not want to see the TWD
customers lose local control. State law encourages the consolidation of
special districts.
• Lynda Jenkins, Ding City Councilor, asked if there was a "hidden agenda" with
regard to future annexation moves. She referenced a portion of the Executive
Summary which referenced annexation. Mr. Tenny noted the terms for water
operation/delivery should be spelled out in the beginning to relieve any
concerns of neighboring cities. Councilor Johnson assured the King City
representatives that there had been no discussions to use water service as
leverage to force annexation.
• Roger Gano, City of Durham Administrator, summarized that for over 50
years the TWD has done a good job in meeting the needs of their customers.
Now the "playing field" is changing and TWD as a district by itself may find
it difficult to play by the new rules. The study indicates that a new entity may
be better able to address the new rules and provide an opportunity for the
region to come together.
CITY COUNCIL MEETING MINUTES - JANUARY 23, 1992 - PAGE 5
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After discussion on topics of local control, water source availability,
intergovernmental relations between King City, Durham and Tigard, and regional
efforts now underway, consensus was to meet again in 60 days. This would give all
parties an opportunity to review the information available and, in addition, a regional
water study involving Portland and other entities is scheduled to be complete.
3. EXECUTIVE SESSION - Cancelled.
4. ADJOURNMENT - 9:49 p.m.
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At st- Catherine V~heat:leyty Recorder
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Mayor, City of Tigard
1
Date:
h:\recorder\ccm\ccm0123.92
CITY COUNCIL MEETING MINUTES - JANUARY 23, 1992 - PAGE 6
Attachment to 1/23/92 Tigard City
~-mr;- Council Minutes
SPECIAL MEETING/f30ARD OF DIRECTORS
. JAN 2 7 1991 CITY COUNCIL, CITY OF TIGARD
sl J16 Tigard-Tualatin School District 23J
Hibbard Administration Center
January 23, 1992 - 6:30 p.m.
MINUTES
CALL TO ORDER Vice-Chairman Carlson called the special meeting/workshop to order at
6:30 p.m. at the Hibbard Administration Center.
ATTENDING Directors: Mike Nelson, Richard Carlson, Gary Cumpston, Jack Clinton,
Pat Biggs
Administrators: Russ Joki, Al Davidian, Frank Hodapp, Mark Kubiaczyk,
Susan Stat, G. Robb
Tigard City Council Members: Jerry Edwards, Mayor, Pat Reilly, City
Administrators, Valerie Johnson, Joe Kasten, John Schwartz, Jack
Schwab, Ed Murphy, Judy Fessler, Jim Nicoli
Staff and Others: Janice Davis, Dianne Kostur
Press: Martha Allen
Recording Clerk: Rae Bowen
r JOINT MEETING
The annual joint meeting of the Board of Directors and the Tigard City Council
was held to discuss topics of common interest to both groups. Those topics were the School
District boundaries between Tigard and Beaverton and Tualatin-Sherwood, the many issues
dealing with joint projects; buildings, grounds, and equipment/vehicles utilizing the
District libraries by both students and adults during and after school hours, an update on the
construction at Tigard High, City/School District elections and long range plans, and projected
enrollments by Dr. Davidian.
City Administrator Pat Reilly introduced Mr. Jerry McReynolds and Mr. and Mrs.
Fred Ciaggett as representatives of the Fling City Council.
RECESS The joint meeting adjourned at 7:35 p.m. and Dr. Joki announced that the Board
would continue in special session to take action on several matters and to hold an executive
session.
SPECIAL SESSION
Frank Hodapp presented -the refunding resolution which will enable the District
to proceed on the sale of the bonds. This resolution would authorize the advance refunding of the
Refundable Bonds to provide debt service savings to the District and to authorize the delegation
to bond counsel. Director Clinton made the motion to adopt the resolution as presented and
Director Carlson seconded the motion. The motion carried.
Mr. Hodapp then asked for a Board member to complete the team going to San
Francisco in February to make the presentation to Moody's for the bond rating. Chairman
Nelson stated that he would be available to go and the dates will be firmed up soon. He will be
meeting with Mr. Dave Taylor from Seattle Northwest Securities Corporation to schedule the
bond rating presentation.
ADMINISTRATION REPORT
Dr. Joki presented a letter addressed to Roberta Hutton at the Oregon Department
of Education for exemption of a full adoption for social studies. Future adoptions will likely
come under the same review in order to direct the funds toward technology and other equipment
rather than textbooks. The District believes textbooks have limited instructional value and the
need for more technology is growing. Director Biggs made the motion to approve the letter to
the ODE as presented and Director Cumpston seconded the motion. The motion carried
unanimously.
ADJOURNMENT
The meeting adjourned at 7:57 p.m. with Chairman Nelson announcing the ,need
for an executive session to discuss bargaining and personnel.
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l JOINT MEETINGITIGARD-TUALATIN SCHOOL DISTRICT 23J
AND CITY OF TIGARD
JANUARY 23, 1992 - 6:30 P.M.
HIBBARD ADMINISTRATION CENTER
AGENDA
A. CALLTOORDER Mike Nelson, Chairman
B. PUBLIC PARTICIPATION - The work session will permit public participation in the form of
questions and comments after the Board/Council have completed their discussions on the items
below.
C. SCHOOL DISTRICT BOUNDARIES
D. JOINT PROJECTS - TTSD AND CITY OF TIGARD
E. CONSTRUCTION UPDATE AT 71GARD HIGH SCHOOL
F. CITYISCHOOL DISTRICT ELECTIONS
G. SCHOOL DISTRICT LONG RANGE PLAN
H. OTHER
1. PUBLIC PARTICIPATION
SPECIAL SESSION BUSINESS
J. BUSINESS & OPERATIONS
1. Refunding Resolution Action Item
K. ADMINISTRATION REPORT
1. Textbook Adoption Action Item
L. ADJOURNMENT
EXECUTIVE SESSION
Pursuant to ORS 192.610-192.690 to discuss collective bargaining and personnel matters.
NMI
MIND 1
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Attachment to 1/23/92 Tigard City
mom Ea SPECIAL MEETINWOARD OF DIRECTORS
~APJ 27 1991 CITY COUNCIL, CITY OFTIGARD
Tigard-Tualatin School District 23J
_2125U0 Hibbard Administration Center
January 23, 1992 - 6:30 p.m.
MINUTES
CALL TO ORDER Vice-Chairman Carlson called the special meeting/workshop to order at
OEM
6:30 p.m. at the Hibbard Administration Center.
ATTENDING Directors: Mike Nelson, Richard Carlson, Gary Cumpston, Jack Clinton,
Pat Biggs
Administrators: Russ Joki, Al Davidian, Frank Hodapp, Mark Kubiaczyk,
Susan Stark, G. Robb
Tigard City Council Members: Jerry Edwards, Mayor, Pat Reilly, City
Administrators, Valerie Johnson, Joe Kasten, John Schwartz, Jack
Schwab, Ed Murphy, Judy Fessler, Jim Nicoll
Staff and Others: Janice Davis, Dianne Kostur
Press: Martha Allen
Recording Clerk: Rae Bowen
JOINT MEETING
The annual joint meeting of the Board of Directors and the Tigard City Council
was held to discuss topics of common interest to both groups. Those topics were the School
District boundaries between Tigard and Beaverton and Tualatin-Sherwood, the many issues
dealing with joint projects; buildings, grounds, and equipment/vehicles utilizing the
District libraries by both students and adults during and after school hours, an update on the
construction at Tigard High, City/School District elections and long range plans, and projected
enrollments by Dr. Davidian.
City Administrator Pat Reilly introduced Mr. Jerry McReynolds and Mr. and Mrs.
Fred Claggett as representatives of the King City Council.
RECESS The joint meeting adjourned at 7:35 p.m. and Dr. Joki announced that the Board
would continue in special session to take action on several matters and to hold an executive
session.
SPECIAL. SESSION
Frank Hodapp presented the refunding resolution which will enable the District
to proceed on the sale of the bonds. This resolution would authorize the advance refunding of the
Refundable Ronds to provide debt service savings to the District and to authorize the delegation
to bond counsel. Director Clinton made the motion to adopt the resolution as presented and
Director Carlson seconded the motion. The motion carried.
Mr. Hodapp then asked for a Board member to complete the team going to San
Francisco in February to make the presentation to Moody's for the bond rating. Chairman
Nelson stated that he would be available to go and the dates will be firmed up soon. He will be
meeting with Mr. Dave Taylor from Seattle Northwest Securities Corporation to schedule the
bond rating presentation.
TO BE FAXED - MONDAY, JANUARY 13, 1992 CITY OF TIGARD
OREGON
WATER STUDY NEETING NOTICE
On behalf of the Tigard City Council, I would like to invite you
and your elected officials to attend a special Tigard City Council
meeting at which time the Tigard Council will consider the results
of a recent Water System Study completed by James M. Montgomery
Consulting Engineers.
The Tigard City Council meeting will be on Thursday, January 23,
1992 at 8:00 PM in the Council chambers at City Hall, 13125 SW Hall
Blvd., Tigard, Oregon.
Patr~ck Reilly, City Administrator
l
13125 SW Nall Blvd., P.O. Box 23397, Tigard, Oregon 97223 (503) 639-4171
NMI
ATTACHED NOTICE FAXED TO THE FOLLOWING PEOPLE ON 1/13/92
TIGARD WATER DISTRICT - John Miller - 639-1471
TUALATIN VALLEY WATER DISTRICT - Gene Seibel, Administrator
- 649-2733
CITY OF DURHAM - Roger Gano, Manager - 598-8595
CITY OF KING CITY - John Buol, Manager - 639-3771
CITY OF LAKE OSWEGO - Pete Harvey, Manager - 635-0269
CITY OF PORTLAND WATER BUREAU - Mike Rosenberger, Administrator
- 796-6133
o.
CITY OF TIGARD
OREGON
January 16, 1992
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TO: Tigard Water District
Tualatin Valley Water District
City of Durham
City of King City
City of Lake Oswego
City of Portland Water Bureau
Ar
Enclosed is a copy of the January 23, 1992 Meeting Agenda for the
Special Meeting of the Tigard City Council. The Water Discussion
is scheduled for 8 p.m. in the Tigard Town Hall.
I understand that all jurisdictions have received a copy of the
Consultants Executive Summary. A few additional copies will be
available at the meeting as well.
Patric.1t eil y, City Administrator
11
13125 SW Hall Blvd P.O. Box 23397, Tigard, Oregon 97223 (503) 639-4171
MR JOHN MILLER MR MIKE ROSENBERGER
TIGARD WATER DISTRICT CITY OF PORTLAND - BUREAU OF WATER
P 0 BOX 230000 1120 SW 5TH AVE
TIGARD OR 97223 PORTLAND OR 97204
MR GENE SEIBEL
TUALATIN VALLEY WATER DISTRICT
P 0 BOX 745
BEAVERTON OR 97075
MR ROGER GANO
CITY OF DURHAM
P 0 BOX 23483
TIGARD OR 97223
c
MR JOHN BUOL
CITY OF KING CITY
15300 SW 116TH AVENUE
KING CITY OR 97224
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MR P'STE HARVEY
CITY OF LAKE OSWEG0
P 0 BOX 369
LAKE OSWEGO OR 97034
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MEMORANDUM -
CITY OF TIGARD, OREGON
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TO: Honorable Mayor and City Council
FROM: Patrick J. Reillv, City Administrator;
DATE: January 16, 1992
SUBJECT: Water System Study (summary attached)
The City has periodically grappled with the issue of who should be
responsible for long-term water supply and distribution to Tigard
citizens. Recent events bring the water issue to the forefront
once again. There is belief that a multi-purpose entity, such as
the City, may be better able to manage long-term water issues than
a single purpose district simply because of the interrelated nature
of urban services.
In June 193- inspired by the merger of Wolf Creek Highway Water
District and Metzger Water District, the City Council decided to
explore the possibility of assuming operation of the water
distribution system. The water system is considered to be the
entire Tigard Water District and the portion of the Tualatin Valley
Water District (the result of the Wolf Creek/Metzger merger) within
Tigard. The benefits of taking this step were discussed as:
1) City operation would ensure local control of the water
system because the Boundary Commission cannot force
merger of a City-operated service;
2) Operation of the water system would give Tigard an
opportunity to affect regional water decisions that are
being deliberated now and will affect Tigard citizens for
years to come;
3) Operation of the water_ systen, would provide the City with
a tool to better manage growth in the area for which it
has a responsibility;
4) There would probably be some economies of scale with a
single, multi-service provider in such things as billing
and maintenance activities.
However, rather than proceed with acquisition of the water systems
in June, Council determined the need for more information about
existing systems. The decision was made to commission a study to
generally assess the situation, asking whether there are any
obstacles impeding the City of Tigard from becoming the water
purveyor.
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EXECUTIVE SUMMARY
TIGARD WATER SYSTEM STUDY
INTRODUCTION
The Tigard Water System Study is being completed for the City of Tigard by James M.
Montgomery, Consulting Engineers, Inc. (JMM) as authorized by the City/JMM contract of August
14, 1991. The Water System Study is to serve as a "due diligence" evaluation of the City of Tigard
assuming operation of the Tigard Water District (TWD) system and facilities and the portion of
INN
the Tualatin Valley Water District (TVWD) within the City limits. The level-of-effort of the study
is a reconnaissance level and subsequent detailed analysis will be conducted as necessary and as
requested by the City.
The City of Tigard authorized the Tigard Water System Study and is considering becoming the
Tigard area water purveyor for a number of reasons. Among the principal considerations which
will be evaluated by the City in its decision-making process are potential advantages to Tigard
area residents relative to:
• Developing a more influential City identity and role in regional issue decision
making.
• More effectively carrying out City growth management responsibilities.
The primary elements of the Water System Study include:
• Review of available data and previously completed reports.
• Meetings with all affected entities.
• Water service area and water demand projections.
• Review of existing TWD and TVWD facilities.
• Determine major TWD and TVWD system improvement requirements.
• Evaluate existing water supplies and future water supply alternatives.
• Review existing financial conditions and rate structures.
• Determine legal and institutional alternatives and constraints for the City of
Tigard to become the Tigard area water purveyor.
This Executive Summary provides a brief summary of the Water System Study findings to date. It
was prepared to provide basic information for interested parties' review prior to the January 23,
1992 Tigard City Council workshop and as a basis for discussion at the workshop. As discussed
earlier, the study is being completed with a reconnaissance level-of-effort and JMM's findings
are based on this level of evaluation. It is hoped that review and discussion of the Executive
Summary will bring forth from any party additional or clarifying information that will assist the
City of Tigard iii its decision-making process.
SUMMARY
Based on analysis and findings to date, JMM has found no major "red flags" or "fatal flaws" that
should preclude further consideration of the City of Tigard assuming operation of the Tigard
Water District and that portion of the Tualatin Valley Water District within City limits.
To the contrary and relative to the TWD, the following conditions are found:
• The existing water storage, pumping and distribution system is very sound and
C well maintained. Water service within the existing distribution area is very
adequate and only minimal capital improvements to improve service are
1
NNE I
required. There appear to be no unmaintained or deteriorated facilities that would
require replacement or major upgrading.
• Most major water system improvements are those that will be required to serve new
development.
• Unaccounted-for water within the system has been less than ten percent for the fast
ten years. This is a very acceptable percentage.
• The TWD has a master plan for water system improvement requirements and has
been judiciously implementing the plan.
• The TWD has recently adopted a system development charge (SDC) structure
which meets Oregon Revised Statute requirements and provides funding for meter
installations, "buy-in" to existing capital improvements and for capacity
increasing capital improvements required for new development.
• The water rate structure provides general fairness and equity among rate payers
and water rates are relatively low.
• The TWD has only minimal current bonded indebtedness of $695,000 (principal
only) which will be retired in 1996.
The same general statements can be made about the portion of the Tualatin Valley Water District
within the Tigard city limits. In addition, there appears to be no insurmountable legal or
institutional issues which might preclude implementation.
There are, however, two obvious issues that must be addressed by the TWD or the City of Tigard
should the City assume operation of the District. These issues are water supply and water rates.
The TWD typically purchases 96 percent of its water supply from the City of Lake Oswego and
Portland Water Bureau on a "surplus water availability" basis only (92 percent from Lake
Oswego and 4 percent for the PWB). The only TWD owned supply is from wells that only produce
1.0 mgd and which can not be expanded. It has been previously projected that the City of Lake
Oswego will not be able to meet TWD peak day water demands by 1997, if not sooner. Thus the
development or procurement of a long-term dependable source of water supply for the Tigard area
is critical.
Water rates have not been increased by the TWD since 1983. However, the TWD anticipates that
water rates will be increased in FY 92/93 to provide increased operating revenues to meet current
operating expenses and to maintain a responsible level of reserve funds. Water rates will also
need to be raised significantly in the future as the wholesale cost of Lake Oswego water increases
or as new sources of water are developed. Future dependable sources of water supply are projected
to be up to two to three times the current wholesale cost ($0.50/100 cubic feet) of Lake Oswego Water.
The water supply and water rate issues and impending water rate increases may be unfavorable
conditions relative to the City assuming operation of the TWD. Conversely, on the positive side
are the benefits of achieving a more powerful voice in the current regional water supply studies
and decision-making processes that will certainly impact Tigard area rc sidents. In discussions
with the Oregon Health Division, Portland Water Bureau, Tualatin Valley Water District and
City of Lake Oswego, JMM has found that all of these entities would welcome more input and
participation from the Tigard area in regional water supply issues. All four entities indicate a
very high potential for cooperative relationships and see much to gain through cooperation with
Tigard. All have a strong interest in mutually beneficial solutions to the region's future supply
2
aic~e~ui►ii. c•nu all are active participants in the regional water planning process and the
importance of these positive regional relationships can hardly be exaggerated. Tigard will
require cooperation from one or more of these entities to meet its future water needs. Development
of an economical and dependable inden, -nden t :•rater. supply system for the Tigard area is
virtually impossible.
MIN In addition to the opportunity to become a more active and credible participant in regional water
supply planning issues, by becoming the water purveyor for the Tigard area, the City could also
-more effectively carry out its growth management responsibilities. This could be particularly
beneficial in the area of responsibly providing water and other public services in cooperation with
other entities to new development outside the current City limits but within 1Tigard's urban service
area and impact area. Water service to such areas by the TWD is likely to be considered from one
perspective (water supply), but service would be considered from a broader perspective by the City.
WATER SERVICE AREA
The water service areas of cities and water districts in the Portland metropolitan area are shown
on the following figure. The Wolf Creek Highway Water District and Metzger Water District
recently merged to form the Tualatin Valley Water District (TVVVD). As shown on the figure, the
TVWD serves the northern part of the City of Tigard. The Tigard Water District (TWD) serves
the remainder of the City of Tigard, the Cities of Durham and Bing City, and unincorporated areas
of Washington County. For clarity and for the purposes of this Executive Summary, the previous
Metzger Water District portion of the current TVWD will be referred to simply as the Metzger
Water District. Water service area alternatives for the City could include:
• Only the area within City limits.
Y Only the current Tigard Water District area.
The current Tigard Water District area and the portion of the Metzger Water
District within the Tigard city limits.
There are also a number of other "sub-alternatives" associated with the above alternatives with
respect to whether or not King City, Durham and unincorporated Washington County are included
in the water service area.
A key consideration of the City in becoming the water purveyor for the Tigard area is not to disrupt
water service to any entities currently served by the Tigard Water District. Additionally, one of
the City's policy considerations in assuming water system operation is the potential benefit to the
City by becoming a more effective public service provider through consolidation of services. Based
on this perspective, the Water System Study was completed assuming the City of Tigard water
service area would consist of the current TWD area plus the portion of the Metzger Water District
within Tigard city limits.
WATER DEMAND PROJECTIONS
Current water demands for the TWD are approximately 4.8 million gallons per day (mgd) and
11.0 mgd for average and peak day demands, respectively. Two recently completed studies (1990
and 1991) of water demands for the TWD forecast that year 2010 demands will range from 6.8 mgd
to 8.5 mgd for average demands and from 15.7 mgd to 19.3 mgd for peak day demands. Both
studies anticipated a water consumption of approximately 145 gallons per capita per day (gpcd)
with a peak day to average day demand ratio of approximately 2.30. The primary difference in the
forecasted water demands was because of differences in population projections. One study
estimated the year 2010 TWD service population to be 45,600 while the other much more
conservative study estimated a year 2010 service population of 57,800.
3
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For purposes of this study, the TWD service population and water demands in year 2010 are
estimated to be:
Population - 51,700
Average Water Demand (based on 145 gpcd which includes commercial and industrial
demands) - 7.5 mgd
Peak Day Demand (based on a peak to average day demand ration of 2.30) - 17.3 mgd
The portion of the Metzger Water District within the Tigard city limits represents approximately
3000 accounts and average and peak day water demands of approximately 1.6 mgd and 3.3 mgd,
respectively. Thus the total City of Tigard water service area water demands for year 2010 are
estimated to be:
Average Demand Peak Day Demand
_ mgd) (mgrl)
Tigard Water District 7.5 17.3
City portion of Metzger
Water District 1& 3.
Total City Demand 9.1 20.6
P13XSICAL CONDITION OF EXISTING FACILITIES
Tigard Water District
r JMM completed a visual inspection of all major TWD facilities (reservoirs, pumping stations,
etc.) and all appear to be in good to excellent condition and are well maintained. Based on the
regular maintenance of water storage reservoirs by the TWD, all reservoirs should be expected to
last at least 50 years. Of the 21.0 million gallons (Mgal) in available storage, 14.6 Mgal in storage
(four reservoirs) was constructed within the last 20 years. These reservoirs should have long
remaining useful lives. The average age of the remaining eight reservoirs is 28 years so an equal
useful life likely remains. The six pumping stations should be expected to provide satisfactory
service for an additional 10 to 20 years.
Metzger Water District
A visual inspection of Metzger Water District facilities was not completed. Because the portion of
the Metzger Water District within Tigard city limits represents a relatively small portion of water
system facilities under consideration, it was determined that a visual inspection was not
necessary at this time. However, the TVWD reports that all majoi facilities are in good operating
condition and that there are no particular "problem areas" (low flow, low pressure, etc.) in the
system. Of the seven reservoirs in the system (total storage of 8.5 Mgal), three were constructed
since 1975 and represent a storage capacity of 6.3 Mgal. The system has one pumping station
which is used only during peak demand periods.
WATER SYSTEM DWROVEMENT REQUIREMENTS
Tigard Water District
Based on previous water system studies for the TWD and JMM's visual inspection of facilities, the
C TWD water pumping, storage and distribution system appears to be very sound. There appear to be
no unmaintained nor deteriorated facilities that would require immediate replacement or major
upgrading. Additionally, the TWD has systematically followed the recommendations and
4
1101 1
BM
naster plans provided by consultants for improving water service to existing customers and for
construction of new facilities to meet crater demands of new growth.
A common "yardstick" for determination of water storage requirements is to assume that total
storage should be equal to three days of average demand. Another method of determining storage
requirements takes into account operational storage to meet peak hour demands; emergency
storage during periods of supply curtailment, power outages, major repairs, etc.; and fire flow
requirements. In either case, the total current storage requirements for the TWD would be
approximately 15.0 Mgal. Currently the TWD has 21.0 Mgal of storage and the location of the
storage facilities throughout the water service area and within the various pressure zones also
appears to be adequate.
Previous (1990) water system improvement master planning for the TWD identified a total of
approximately $5.7 million in water pumping, transmission and storage facilities that need to be
constructed to reinforce service within the current water system and to extend the backbone of the
system to service new growth. As discussed previously, the existing water system and service is
very sound so most of the improvement requirements are to serve new development. The sound
condition of the existing TWD system is further exemplified by the fact that unaccounted-for water
within the system has been less than ten percent for the last ten years. Actual water loss is even
less because part of the unaccounted-for water includes hydrant testing and other unmetered uses.
Within the water utility industry, ten percent unaccounted-for water is considered to be an
acceptable percentage.
Phasing of the $5.7 million in water system improvements vas a nticipaLed to be as follow:
Year Fstimated Costs
1991 $214,000
1995 1,791,000
2000 and beyond 3,693-000
$5,698,000
In addition to the above improvements, the TWD has been implementing a program of paralleling
existing 16 to 24-inch diameter transmission lines from its 10 Mgal reservoir at Bull Mountain
Road and SW 125th Avenue to the Portland Water -Bureau supply at Bradley Corners (Hall
Boulevard and Greenburg and Oleson Roads) and to the City of Lake Oswego supply at Bonita
Road and Interstate 5. The Lake Oswego transmission line paralleling has been completed. The
costs for remaining PWB transmission line paralleling'is estimated to be approximately $0.5 to
$1.0 million. The TWD has been coordinating the installation of these waterline installations
prudently with on-going street construction projects. However, until a firm future water supply
plan is adopted by the TWD, additional expenditures should be reviewed carefully.
Metzger Water District
The primary water system improvement planned for the Metzger Water District is approximately
9600 feet of 16-inch diameter water transmission line to provide a "backbone" improvement in the
southern end of the District. The line will run generally southeast from near Bradley's Corner to
the proposed Dartmouth Street extension at Pacific Highway. It will improve water supply
capabilities to both the Lincoln Center area at Highway 217 and Greenberg Road and to the
Dartmouth Street and Pacific Highway area
Based on the "three times average day demand" criteria for adequate water storage volume, the
Metzger Water District should have approximately 8.5 to 9.5 Mgal of current storage capacity. The
Metzger Water District currently has 8.5 Mgal of storage. However, the water supply is a very
5
i
Now
dependable supply. Consequently the current Metzger Water District water storage capacity is
also very likely to be adequate.
EXIST-WG TIGARD•WATER DISTRICT WATER SUPPLIES
The TWD currently has three separate sources of supply; the City of Lake Oswego, the Portland
Water Bureau and two TWD wells. In typical recent years, the total water supply to the TWD
would be comprised of:
City of Lake Oswego - 92 %
Portland Water Bureau - 4%
TWD Wells - A-ffi
100 %
Lake Oswego Supply
At present, the TWD/Lake Oswego water supply contract only requires Lake Oswego to wholesale
"surplus" water to the TWD. 1990 studies determined that the water supply from Lake Oswego to
the TWD was limited to approximately 4.0 mgd during gaA demand periods and projected that
surplus water during peak demand periods would be unavailable in 1997. The current TWD peak
day demand is approximately 11.0 mgd.
The 1991 Lake Oswego wholesale water rate to the TWD was $0.40 per 100 cubic feet (cf) and this
rate is less than Lake Oswego's costs of production (pumping, treatment and transmission). At the
end of 1991, the Lake Oswego City Council authorized staff to start charging wholesale customers at
a rate of $0.50/100 cf.
f Currently, the TWD purchases approximately $1.0 million of "surplus" water from Lake Oswego
annually. This represents approximately 45 percent of the water produced by Lake Oswego. The
point of connection to the Lake Oswego supply is at a pumping station near Lake Oswego's Waluga
Reservoir at S.W. Bonita Road and I-5.
The water supply agreement between the TWD and Lake Oswego runs for the term of July 1, 1983
through June 30, 1993 and is automatically renewed for five year periods unless written notice is
given. The TWD must purchase $75,000 of water each year, if available, but Lake Oswego has no
obligation to provide water except if surplus water is available.
Portland Water Bureau Supply
By contract, the TWD must purchase approximately 4 percent of its water sales from the Portland
Water Bureau (PWB). The TWD connection to the PWB system is at Bradley Corner, the
intersection of Hall Boulevard and Greenburg and Oleson Roads. The current cost of the water is
a relatively high $1.53/100 cf. The cost is high because the water is provided during periods of peak
demand. The agreement is for a term of 25 years (ending June, 2007) and requires the TWD to
purchase a firm amount of water from the PWB on a "surplus" basis. The PWB has no obligation
to deliver water to the. TWD when water supply to City of Portland residents is deficient and
"surplus" water is unavailable. Howaver, the PWB must make water available to the TWD when
surplus water exists and, in turn, the TWD must purchase from the PWB a pre-determined
percentage of its total water sales volume each year. This percentage is based on a 5-year moving
average and for FY 1991/92, it is 3.89 percent.
The TWD carefully manages its water purchases from the PWB to meet its obligation but to ensure
C it purchases no more water than necessary. It should also be noted that in all of the PWB's 25-year
wholesale water supply contracts, it is only selling "surplus" water and the water demands of the
6
City of Portland residents must be met first if water supply is not adequate. The "surplus" water
supply provision is not exclusive to the TWD.
Tigard Water District Wells
The TWD has four wells in its system that can be considered operational, but only two of these are
currently used for production. The other two have very low production rates with one producing
water with high iron concentrations. Expansion of the current TWD well supplies (approximately
1.0 mgd) or development of new wells is very unlikely because the wells are in the Cooper
Mountain./Bull Mountain Critical Ground Water Area designated by the Oregon Water Resources
Department.
Oliver Water Supply Agreements
City of Beaverton. The TWD and Beaverton have an agreement to provide each other with
emergency water. The agreement is for surplus water only, the agreement's period is from July 1,
1982 to June 30, 1992 and is renewable indefinitely.
City of Tualatin. The TWD and Tualatin also have an agreement to provide each other with
emergency water. Currently, the hydraulics of both systems only allows the TWD to provide
Tualatin with water. For Tualatin to provide the TWD with water, a pumping station is required.
The agreement is for surface water only, the agreement's period is from July 1, 1985 to June 30,
1990 and is renewable indefinitely. The agreement has not been renewed since 1990.
Lake Grove Water District. TWD and Lake Grove also have an agreement to provide each other
with emergency surplus water. The agreement's period is from July 1, 1985 to June 30, 1995 and is
renewable indefinitely.
The emergency intertie agreements with the Cities of Beaverton and Tualatin have seldom been
utilized. The TWD did, however, provide water supply to the City of Tualatin during a two week
period in November, 1991. The intertie agreement with the Lake Grove Water District has never
been exercised.
EMSTING METZGER WATER DISTRICT WATER. SUPPLIES
The former Metzger Water District receives 100 percent of its water from the Portland Water
Bureau. The primary connection is from a 48-inch diameter gravity pipeline, jointly owned by the '
Tualatin Valley Water District and the' City of Tualatin, via the 60-inch Washington County
Supply Pipeline. A secondary connection exists via the Burlingame pumped system. There is no
emergency water supply intertie with the TWD. Similar to the TWD water supply contract with the
PWB, the Metzger Water District supply from the PWB is on a "surplus" basis. The current
wholesale cost of water purchased by the Metzger Water District (and TVWD as a whole) from the
PWB is approximately $0.43/100 cubic feet. This is a relatively low rate because the water is
provided by gravity (no pumping required) from the PWB. The TVWD has also paid for its share
of capital costs for the gravity line to bring water from the PWB.
FUTURE WATER SUPPLY ALTERNATIVES
Tigard Water District Service Area
By far, the most critical issue facing the Tigard Water District or the City of Tigard should it
assume operation of the TWD is the development or procurement of a long-term dependable source
of water supply. As previously discussed, approximately 96 percent of the TWD water supply is in
the form of interruptible "surplus" water from the City of Lake Oswego and the Portland Water
7
Bureau. A number of water supply alternatives for the TWD have been studied in the recent past
and some are still under consideration today. These are summarized below.
• 4
City of Lake Oswego. Based on previous studies, to meet growing Lake Oswego demands and all
of the TWD demands through 2012, Lake Oswego would have to expand its present Clackamas
River water treatment plant capacity from 16.0 to 32.0 mgd, construct a new 5.0 mgd water intake
and treatment plant on the Willamette River and add pumping and transmission capacity to the
TWD. The TWD share of project costs were estimated to be.
period Estimated Qgg
M1 - 1894
1997 - 2004 2.M
$21.432,000
Portland Water Bureau. With the existing configuration of the PWB water supply system to the
Washington County area and the TWD's existing connection at Bradley's Corner, a supply of 6.0
to 8.0 mgd is currently potentially available to the TWD. With the TWD's connection to the PWB
system at I-5/Haines Road, an additional supply of 1.0 mgd is available and this will be increased
to 3.0 mgd in 1993. Thus without additional improvements to the PWB system, only 9.0 to 11.0 mgd
of the WD 17.3 mgd peak day demand in 2010 could be met by the PWB. To meet the 2010 demand,
at least an zdditional $5.0 million in improvements would be required to the PWB system and up
to $1.0 million in improvements would be required to the TWD system. Part of the $5.0 million in
PWB costs may be shared by other benefiting wholesale customers of the PWB, however.-
It should be noted that other water purveyors (the City of Beaverton and the TVWD) also may claim
a contracted "right" to the existing available PWB water supply capacity at Bradley's Corner.
Thus the 6.0 to 8.0 mgd of available capacity at Bradley's Corner may not be a "given" for the
TWD.
Willamette River. This alternative consists of a new water treatment plant on the Willamette
River near Wilsonville and intake, pumping, transmission and storage facilities. The total cost
is estimated to be $26,950,000 with an additional $2,740,000 required in year 2000. Cost sharing of
the pipeline costs (32 percent of total costs) may be possible with the Cities of Wilsonville, Tualatin
and Sherwood since they could benefit from the project. It is also possible this project. could be
structured .to include water supply to the TVWD as well.
Tualatin River via the Joint Water Commission (JWC). This alternative consists of the TWD
joining the Joint Water Commission (Hillsboro, Forest Grove and Beaverton) and constructing
new treatment (Tualatin River source), pumping, transmission, and storage facilities. The total
initial cost was projected to be $35,760,000 with an additional $2,100,000 required in year 2000.
Some of the costs of pipelines (44 percent of total costs) could possibly be shared with the TVWD and
City of Beaverton since they could obtain water from the system along the pipeline route.
Summary. Based on the 1990 study of the above water supply alternatives for the Tigard Water
District, the estimated capital costs and commodity costs for the 20-year planning period for the
water supply alternatives are provided below. The commodity costs are based on capital cost
amortized over the 20-year planning period plus other annual operating costs "levelized" over the
same 20-year planning period.
a
i
i
i
8
(Per 100 cubic
Alternative Capital Costs fret o£ supply)
Portland Water Bureau $5,667,000 $1.10
City of Lake Oswego $21,432,000 $1.16
Willamette River $29,690,000 $1.68
Joint Water Commission $37,860,000 $1.72
*Includes wholesale water purchase at $0.651100 cubic feet
It must be noted that tide above cvSt& are based on A 00 esw'u12t25 and for year 2010 average and peak
day demands of 6.8 mgd and 15.7 mgd, respectively. As discussed previously, by assuming a
higher population growth rate, year 2010 water demands for the TWD for the purposes of this study
are 7.5 mgd and 17.3 mgd, respectively, for average and peak day demands. Presumably, the
costs of developing water supplies to meet the higher demands will be higher as well.
Another option that may receive more study in the near future is an expanded Willamette River
supply. In previous studies, the Cities of Wilsonville, Sherwood and Tualatin were assumed to be
partial partners of this option with the TWD. Since that time, the strong possibility has arisen that
other water purveyors besides the TWD, Wilsonville, Sherwood and Tualatin would consider
taking part in a Willamette River supply option. The other water purveyors include the TVWD
and the PWB. If this option is implemented, the TWD's costs for its required share of water may
be considerably lower than these presented above because a larger facility, with many
participants, could be less costly.
A number of other issues must be addressed and considered with respect to water supply
alternatives for the TWD. These include:
• Although discussions have been held between the City of Lake Oswego and the
TWD, no formal negotiations have been held relative to:
the TWD's desire to become a part-owner (financing and management
partner) in the Lake Oswego water system rather than simply being a
wholesale customer.
the potential for the City of Lake Oswego to further increase the wholesale
water rate to the TWD.
More detailed discussions and negotiations are currently being held between the
' TWD and Lake Oswego at this time, however.
• Although the City of Lake Oswego has 32.3 mgd of 1967 priority water rights on the
Clackamas River near Gladstone, there appears to be a question as to the
dependability of the entire right during low flow periods.
• The TVWD is also having discussions with the PWB relative to obtaining an
additional 6.0 to 8.0 mgd water supply at Bradley's Corner.
• Willamette River water rights are a particularly critical issue. Other Willamette
River water right permit and application holders may preclude the City or TWD
from gaining instream flow rights to the River. The alternative of purchase of
stored water out of the Willamette Project is likely a very costly alternative to the
development of instream flow rights.
9
Metzger Water District Service Area
The former Metzger Water District receives 100 percent of iea w-- from «~'hc Pnrtlsnd Water
Bureau. It is expected that fLdure supplies will continue to be provided from the existing 48-inch
diameter pipeline via the 60-inch diameter Washington County Supply Pipeline although no
serious water supply studies have been completed for this service area in quite some time. Since
the Metzger Water District is now part of TVWD, it is expected that any future water supply
considerations made by TVWD will be, in part, influenced by its increased service area due to the
merger with the Metzger Water District.
Currently, the PWB is conducting a source of supply study which is projecting future water
demands for all metropolitan service areas. The demand projection for the TVWD is
approximately 70 mgd and 36 mgd for peak and average day usage, respectively, in the year 2010.
This includes approximately 7 mgd and 4 mgd for peak and average day usage, respectively, for
the Metzger portion of the TVWD. The PWB study is also identifying potential sources of water for
future growth. These sources include the Columbia River, the Willamette River and expansions to
the current Bull Run system. The TVWD will play a key role in this regional supply issue. The
Metzger portion of TVWD will continue to receive water that is made available by TVWD from
wherever that water originates.
TIGARD WATER D1STR.ICT FINALC1AL CONDITION
At this time, the financial condition of the Tigard Water District can be considered sound. This is
demonstrated by the following:
• The TWD ended FY 90/91 with a reserve of approximately $2.0 million.
• For FY 90191, operating revenue was approximately $56,000 higher than operating
expenses. This included depreciation expense of $520,000, and non-operating
interest and miscellaneous income of $133,000 and $27,000, respectively.
• The existing water system infrastructure is sound and capital improvement
requirements are minimal except to meet demands of new development.
• The TWD has only $695,000 (principal only) in outstanding general obligation
bonds and these will be retired in 1996.
However, there are a number of future conditions that can or will change the current financial
picture for the ?'WD. These include:
• The City of Lake Oswego will very likely increase the costs of water wholesaled to
the TWD in the very near future. If Lake Oswego proposes to increase the costs of
wholesale water too much, the TWD could purchase more water from the PWB.
However, its costs will also be considerably higher than current Lake Oswego
wholesale water costs ($0.501100 cubic feet).
• To meet increasing water demands in the Bull Mountain area, the TWD must
make a decision in the near future an the development or participation in the
development of a long-term dependable water supply system. Recent (1990) studies
have indicated costs of such water supply alternatives to be in the range of two to
three times higher than the current cost of wholesale Lake Oswego water.
• Costs of "moving" water (i.e., pumping, etc.) are increasing faster than increases
in revenue from water sales.
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• To meet increasing water demands in the Bull Mountain area, the TWD
anticipates constructing a new 2.5 million gallon reservoir in 1995 At *
1I1is project alone would utilize most of the $2.0 million
reserve available at the beginning of FY 91/92. Interest earned on reserves will
then also be reduced.
• The City of Lake Oswego anticipates it must spend up to $2.5 million for
transmission: line improvements in 1992 to be able to continue to meet current TWD
peak day water demands. The TWD will likely be required to participate in some
manner in these improvement costs.
Based on the above, it appears very likely a water rate increase will be required within FY 1991192
or FY 1992/93 to meet operating expenses and to keep reserves at a reasonable level (i.e.,
$1,000,000). The current TWD rates have not been raised since 1983.
System Development Charges
The TWD has recently adopted a system development charge (SDC) plan which meets
requirements of the Oregon Revised Statutes. The SDCs include the following costs components:
• Cost of water meter installation (materials and labor).
• Reimbursement fee which is the cost of new development to "buy into" existing
water system capital improvements.
r` • Improvement fee to pay for costs of capacity increasing capital improvements
required for new development.
The actual SDCs were based on purchase of more water from the Portland Water Bureau. This is a
less capital intensive option than other water supply alternatives. Depending on the water supply
alternative ultimately implemented by the TWD, the capital costs could be higher and, as a result,
the SDCs could likewise be higher.
Water Rates
Although a detailed analysis of the Tigard Water District and Metzger Water District water rate
structure and water rates was not completed, the following general statements can be made:
• Water rates are relatively low.
• Water rate structures and water rates for the two districts are similar which would
simplify the development of a unified rate structure and common water rates.
As discussed above, it appears prudent and necessary that TWD rates be increased in the near
future. This is further demonstrated by the fact that the TWD experienced operating lossei of
approximately $64,000 and $104,000 for FY89/90 and FY 90/91, respectively. Water rates simply do
not generate enough revenue to meet operating expenses. Even though the TWD had an operating
loss the last two fiscal years, it did generate a positive net income for the two years. This was
primarily because of interest income on reserves (approximately $119,000 and $133,000 in FY 89190
and FY 90/91, respectively). As discussed above, reserves and thus interest on reserves are
projected to decline in the coming year.
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- i i vi LxUl m" Wtiir iPURVEYORAL` EUNNFIVES
A number of operational alternatives are available to the City of Tigard should it choose to become
the water purveyor for the Tigard area. These include:
• The City could operate the water system as a regular City department.
• The entire water operation could be operated under contract by either a neighboring
water utility or a private firm.
• The City could contract out those aspects of water system management which it
chooses not to operate itself.
The City could join neighboring water utilities to form a Water Authority which
would operate an independent utility.
t
• The City could offer to sell the system to a private water utility company, to be
operated as an investor-owned utility.
The Oregon Revised Statutes provide for cities to withdraw territory within city limits from a
water district, allocation of responsibility for the indebtedness of the water district, allocation of
property between the city and the remainder of the district, dissolution of the remainder of the
district, and appeals procedures. Should the City of Tigard decide to assume operation of the
Tigard Water District and the portion of the Metzger Water District within City limits, the
followhig would be the most likely and expeditious scenarios with respect to each affected party.
I
C It should be noted that the TWD is currently providing water service to a portion of the Metzger
Water District and this area has never been formally withdrawn from the Metzger Water District.
The area (approximately 0.60 square miles) is generally bounded by the east TWD boundary on
the west and Highway 217 and I-5 on the north and east, respectively.
Tigard Water District
Dissolution of the TWD outside City limits (Cities of Durham and King City and unincorporated
Washington County) with the City continuing to provide water service to that area is the most
practical mechanism to continue water service to the entire TWD service area. The dissolution
would require an election of the voters in the TWD outside City limits. To expedite the
withdrawal, and prior to any action by either party, the City and the TWD should enter into an
intergovernmental agreement spelling out the City's withdrawal intention; the TWD's
dissolution intention; the agreement between the City and the TWD if withdrawal and dissolution
occur; and their agreement if withdrawal occurs but dissolution does not.
Metzger Water District
For withdrawal of the portion of the Metzger Water District within Tigard city limits, the City and
TVWD should also enter into an intergovernmental agreement (prior to withdrawal) defining
allocation of assets and liabilities. From the standpoints of physical water supply and
distribution, the most practical mechanism for water service to the withdrawn area would be for the
City to contract with the TVWD for continued water service. However, there certainly are other
issues to consider vis-a-vis continued water service by the TV%VD to the portion of the Metzger
Water District within City limits. These issues will need to be discussed and solutions negotiated
between the City and the TV%VD. For example, if the portion of the Metzger Water District within
City limits was withdrawn from the TVWD, the TVWD will take the position that the contracted
water supply from the PWB would revert to the TVWD and not pass to the City.
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