City Council Packet - 11/08/2010 Joint with LO ;14 , City of Tigard
TIGARD Tigard Special Meeting - Agenda
JOINT MEETING: TIGARD AND LAKE OSWEGO CITY COUNCILS
MEETING DATE AND TIME: November 8, 201 0 - 7:00 p.m.
MEETING LOCATION: City of Lake Oswego - Willamette Room, West End Building
4101 SW Kruse Way, Lake Oswego
Agenda also published on the internet at: http : / /www.ci.oswego.or.us /calendar /CouncilMtgs /documents /110810packet.p
Contact: Robyn Christie, Lake Oswego City Recorder
Email: rchristiegci.oswego.or.us
Phone: 503 -675 - 3894
The meeting location is accessible to persons with disabilities. To request accommodations, please contact the City
Recorder's Office at 503- 635 -0236, 48 hours before the meeting.
AGENDA
1. CALL TO ORDER
2. ROLL CALL
3. STUDY SESSION
3.1 Mayors' Updates
a. Urban Renewal in each City
b. Transit in each City
c. Tigard Bond Measure
3.2 Water
a. History of the Project
b. New Cost Estimates
c. Comparison of LO & Tigard Water and SDC rates
3.3 Upcoming Legislative Issues
4. ADJOURNMENT
LAKE OSWEGO
AGENDA CITY OF LAKE OSWEGO
Centennial 1910.2010 CITY COUNCIL SPECIAL MEETING 380 AAvenue
(-" ° PO Box 369
Monday, November 8, 2010 Lake Oswego, OR 97034
7:00 p.m. 503- 675 -3984
Willamette Room, West End Building, www.ci.oswego.or.us
4010 Kruse Way
Contact: Robyn Christie, City Recorder Also published on the Internet at:
Email: rchristie @ci.oswego.or.us www.ci.oswego.or.us
Phone: 503 - 675 -3984
The meeting location is accessible to persons with disabilities. To request accommodations, please contact
the City Recorder's Office at 503 - 635 -0236, 48 hours before the meeting.
Pape #
1. CALL TO ORDER
2. ROLL CALL
3. STUDY SESSION
3.1 Mayors' Updates
a. Urban Renewal in each City
b. Transit in each City
c. Tigard Bond Measure
3.2 Water
a. History of the Project
b. New Cost Estimates
c. Comparison of LO & Tigard Water and SDC rates
3.3 Upcoming Legislative Issues
4. ADJOURNMENT
Jack Hoffman, Mayor • Roger Hennagin, Councilor • Donna Jordan, Councilor
Dan Vizzini, Councilor • Sally Moncrieff, Councilor ■ Mary Olson, Councilor • Bill Tierney, Councilor
CITY OF LAKE OSWEGO
LAKE OSWEGO
Centennial 1910 -2010
380 A Avenue
!�� PO Box 369 •
Lake Oswego, OR 97034
E_III COUNCIL REPORT 503- 675 -3984
www.ci.oswego.or.us
TO: Mayors Jack D. Hoffman and Craig Dirksen
Members of the Lake Oswego and Tigard City Councils
City Managers Alex D. McIntyre and Craig Prosser
FROM: Joel B. Komarek, P.E., Project Director
Technical Committee
SUBJECT: Lake Oswego- Tigard Water Supply Partnership: Update
DATE: November 4, 2010
ACTION
This study session provides the Technical Committee (TC) of the partner cities an opportunity to present to
the Joint Councils including Councilors Elect:
1. A brief review of the history of the partnership;
2. The Supply Facilities Capital Improvement Plan (SFCIP) and related costs and allocation of costs to
the partner cities; and
3. Proposed financial plans of the partner cities to fund the SFCIP.
In addition, this study session provides an opportunity for the Oversight Committee (OC) of the partner
cities to engage their fellow Councilors in discussion of the SFCIP and the pending SFCIP adoption process
each city is scheduled to conclude in December 2010.
INTRODUCTION /BACKGROUND
For over three decades, the cities of Lake Oswego and Tigard have shared the use of water from the
Clackamas River with Lake Oswego being the supplier of surplus water to Tigard and Tigard being the
purchaser of that water. It has been a mutually beneficial relationship. Beginning in 2005, the two cities
joined together to fund a comprehensive analysis of the opportunities and costs of jointly planning,
funding, constructing and operating an expanded water supply system for the benefit of their citizens and
wholesale customers. The analysis concluded that significant benefits would accrue to both cities under a
partnership approach relative to an approach that would have each pursue separate paths to achieve their
water supply goals.
On August 6, 2008, the Mayors of Tigard and Lake Oswego executed an Intergovernmental Agreement
(IGA), committing the new partners to undertake, in good faith and with due diligence, upgrades and
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Page 2
expansions of their respective water supply systems and complete the Initial Expansion by 2016.
DISCUSSION
Project Definition and Cost Updates
Since August 2008, Lake Oswego, as Managing Partner, and Tigard have jointly mobilized and expended
significant resources to implement the IGA. Approximately $6M dollars have been expended to date
between the two partners toward implementation of the IGA. Between February and September 2010, a
comprehensive assessment of Lake Oswego's and Tigard's water supply facilities was completed. Through
this effort, project definition of the partners' existing Supply Facilities was greatly improved. Armed with
this new knowledge, the program team developed detailed cost estimates for the upgraded, upsized and
new supply facilities. The updated estimates provided a basis for recalculation of how these costs would be
allocated to the partner cities based on their respective shares of new capacity in each Supply Facility
component. Understanding partner costs allowed each partner city to independently develop and update
financial plans to fund the Initial Expansion. This independent financial analysis also confirmed earlier
conclusions that each city reaps significant capital and long -term operating cost savings through the
partnership relative to all other options the partner cities considered. Further detail on costs, allocations
and rates will be presented by the Program Team on November 8.
Implementation Timing
Article II, Paragraph 2.3 of the IGA establishes a good faith obligation relating to implementation timing of
the Initial Expansion. The Managing Partner and its Program Team have developed detailed schedules for
each project within the larger program to guide all activities of the Program Team. The objective being to
ensure the best possible chance that the Initial Expansion is completed no later than July 1, 2016. Such
schedules anticipate lengthy permit acquisition timelines and the possibility of appeals. Each schedule has
been developed to minimize expenditure of design dollars in advance of permit approval and in no case are
construction dollars for any project at risk prior to permit approval. Schedules for procurement of design
and construction services are developed to maximize competition for such services while acknowledging
the influence economic conditions at any point in time can have on such competition for and pricing of
those services.
The Program Team also acknowledges that the 6 -year construction timeline of the program will span
multiple Councils of the parties and fully accepts its obligation to facilitate and support the transfer of
knowledge of the program and its benefits between Councils in order to maintain program schedule.
Supply Facilities Capital Improvement Plan
The TC has provided the OC a memorandum detailing the findings from the project definition phase
including updated program costs and allocation information. That memorandum also presents the TC's
recommendation of a preferred SFCIP as is required by the IGA.
The IGA defines Initial Expansion as "The design, permitting and construction of new and expanded Supply Facilities...to
provide 32 million gallons per day capacity by 2016 with the capability to further expand up to 38 million gallons per day...when
it appears the water demands of the parties will exceed 32 mgd."
2 See Table ES.3 and ES.4 on pg. ES -6 of "City of Lake Oswego and the Tigard Water Service Area, Joint Water Supply System
Analysis ", draft report July 2007.
3 "Program Team is comprised of TC members, and project staff and consultants of the Managing Partner.
2
Page 3
The OC considered the TC's SFCIP recommendation at their meeting of November 1, 2010. A majority of
the OC voted to accept the recommended SFCIP and directed TC staff to forward the recommendation
memo to the Joint Councils for discussion and consensus.
RECOMMENDATION
It is recommended that each Council direct the TC to finalize and present the recommended SFCIP to each
Council for adoption in December together with corresponding amendments to the IGA exhibits.
ATTACHMENTS
1. 10/29/2010 Memorandum to Oversight Committee from Technical Committee.
2. PowerPoint presentation
3
LAKE OSWEGO
Centennial 1910 -2010
1
- TIGAR1
October 29, 2010
Oversight Committee,
The attached memo from the Lake Oswego Tigard Water Partnership's Technical Committee
provides detailed background information and data supporting our recommendation to the
Oversight Committee of a Supply Facilities Capital Improvement Plan.
The memo outlines needed water system upgrades to meet the supply needs of the Partners.
Recommendations are detailed for improvements to the Clackamas River Intake Pump Station,
Raw Water Pipeline, Water Treatment Plant, Finished Water Pipeline, Waluga Reservoir, and
Bonita Road Pump Station.
The recommended improvements will meet the needs of both communities. Lake Oswego's
key water facilities must be replaced, upgraded and expanded. Tigard must have a secure,
Tong -term water source. Ratepayers in both communities will save millions of dollars through
the Partnership.
Program costs are now estimated at $230 million. Cost allocations between Lake Oswego and
Tigard are 46.5% and 53.5 %, respectively. Financing plans previously developed to pay for the
upgraded system will only need slight adjustment when based on these new costs and
allocations.
We request that Oversight Committee members carefully review the accompanying
information prior to the Oversight Committee's November 1 meeting, and in preparation for
the Joint Councils' consideration at their November 8, 2010, meeting and individual Council
adoptions of the Supply Facilities Capital Improvement Plan in December.
We look forward to discussing our recommendations with you at next Monday's meeting.
Technical Committee
Joel B. Komarek
Dennis Koellermeier
Kari Duncan
Rob Murchison
4
`` c o LAKE O sk,4.
' A M
i II
viIIIIIIIIIIIIII:
TIGARD
OREGON
MEMORANDUM
Lake Oswego /Tigard Water Supply Partnership
TO: Oversight Committee
FROM: Technical Committee
DATE: October 29, 2010
SUBJECT: Supply Facilities Capital Improvement Plan
Purpose
The Technical Committee (TC) submits this memorandum to provide background and support
for its recommendation to the Oversight Committee (OVC) of a Supply Facilities Capital
Improvement Plan (SFCIP). This memorandum articulates the value to each city in partnering
for the expansion of Lake Oswego's water supply system and in sizing certain supply
components to meet the Parties' long -term water supply needs. The Technical Committee
requests that OVC members consider this recommendation memo and prepare to forward this
recommendation memo to the Joint Councils at a meeting scheduled for November 8, 2010, in
preparation for Councils' adoption of the SFCIP in December.
Technical Team Recommendation
Over the last ten months, OVC members have met six times, the Joint Councils have met three
times and individual Councils have convened periodically to receive, discuss and consider new
information as it was developed by the TC and program staff. Treatment technology, facilities
capacity, program cost and cost allocations have been shared and considered.
Based on the information developed to date, the TC recommends the OVC consider and
approve the following components of the Initial Expansion comprising the SFCIP:
• RIPS — Pumping and electrical capacity sized for 32 mgd with additional structure space
and fish screens sized to accommodate expansion to 38 mgd;
5
• RWP — Sized for 38 mgd;
• WTP — Treatment capacity of 32 mgd with structure space and non - modular equipment
and systems sized to accommodate expansion to 38 mgd;
• FWP — Sized for 38 mgd with Reach 11 -12 allocated 100% to Tigard and sized for
capacity up to 20 mgd;
• WR2 — Sized for 3.5 mg (2 mg for Lake Oswego, 1.5 mg for Tigard) with a height of 40
feet and located on Lake Oswego property purchased for this purpose;
• BPS — Sized for maximum anticipated pumping capacity of 14 -16 mgd.
Supply Facilities Capital Improvement Plan (SFCIP) — Approval Process
The Intergovernmental Agreement (IGA) obligates the Councils of each Party to approve the
SFCIP. The OVC should be prepared to consider and discuss the TC's recommendation memo at
their next meeting of November 1, 2010, and approve forwarding the memo to the joint
Councils for consideration at their November 8, 2010, meeting.
If approved by the individual Councils, the SFCIP then becomes Exhibit 5 to the IGA and the
guiding document, unless modified by the Parties, for permitting, design and construction of
the Initial Expansion. Exhibit 7 to the IGA must also be amended to reflect updated program
costs and allocations by component and in total for the program. Staff and the OVC from each
Party will be recommending approval of the SFCIP and amendment of Exhibit 7 at their
respective individual Council meetings in December. The TC looks forward to discussing the
above recommendations with you at next Monday's meeting.
Background
The IGA executed by Lake Oswego and Tigard (Parties) in 2008 establishes that the Initial
Expansion of Lake Oswego's existing water supply system be complete on or before July 1,
2016. The IGA designates Lake Oswego as the Managing Agency responsible for planning,
scheduling and managing the project to ensure the delivery date is met. The IGA commits each
city to exercise good faith and due diligence to complete the Initial Expansion.
Every action of the Managing Agency and the Parties since adoption of the IGA has progressed
toward implementation of the Initial Expansion. In keeping with this commitment, the
Managing Agency and the Parties have taken the following actions:
• Formed a Technical Committee and Oversight Committee
1 The IGA defines Initial Expansion as "The design, permitting and construction of new and expanded Supply Facilities...to
provide 32 million gallons per day capacity by 2016 with the capability to further expand up to 38 million gallons per day...when
it appears the water demands of the parties will exceed 32 mgd."
2 Technical Committee — Comprised of two technical representatives from each city; per the IGA, the TC, among other duties,
"...makes recommendations to the Managing Agency or Oversight Committee as deemed appropriate or where required by this
Agreement."
' Oversight Committee — Comprised of two elected officials from each city, members serve at the pleasure of the appointing
Councils. The IGA says that, among other duties, the OVC "...shall review and the individual members of the committee shall
present to their respective Councils proposed projects...and related matters and budgets or funding requests."
6
• Authorized the appraisal of real property owned by Lake Oswego for purchase of a share
of interest in the property by Tigard;
• Approved annual budgets appropriating funding for the formation of a staff team
dedicated to managing the project through its completion;
• Authorized a contract with Brown and Caldwell to provide Program Management,
permitting and construction management services to support staff of the Managing
Agency and assure the project completion date is met;
• Authorized use of office space in Lake Oswego's West End Building for the staff and
Program Management (PM) teams;
• Developed financing plans to annually fund ongoing costs during the early phases of the
program and to assure sufficient future revenues for debt repayment purposes; and
• Authorized other contracts and expenditures necessary to implement the IGA including:
o Retaining municipal finance experts to develop funding strategies for the Initial
Expansion;
o Retaining outside legal counsel for matters relating to land use and acquisitions
and environmental laws and regulations;
o Retaining outside services to support Lake Oswego's land and right of way
acquisitions efforts;
o Providing professional and administrative services to support the OVC in the
conduct of their duties pursuant to the IGA; and
o Retaining legal services and experts in Oregon water law in support of the City's
municipal water rights extension process.
Project Definition — Scope
At the direction of the TC, Brown and Caldwell ( "BC ") undertook a project definition effort
beginning in February 2010. The scope of this effort included:
• Confirming that assumptions made by Carollo Engineers in the earlier joint system
analysis 4 were still valid, or if not valid, documenting the basis for the change;
• Developing an overarching program schedule including a schedule for each project
component of the overall program;
• Initiating efforts to secure all necessary environmental and land use permits;
• Updating program scope, schedule and cost based on the findings of the project
definition phase; and
• Developing a proposed SFCIP to be approved by the Parties.
4 " City of Lake Oswego and the Tigard Water Service Area, Joint Water Supply System Analysis" draft report, July 2007, Carollo
Engineers.
See attached schedule.
7
Project Definition — Findings
A consultant team of architects, engineers (structural, mechanical, electrical), scientists and
staff of the Managing Agency completed field investigations and a comprehensive assessment
of Lake Oswego's water supply infrastructure. A much abbreviated summary of findings
follows.
River Intake Pump Station (RIPS)
Numerous deficiencies were observed in this 42- year -old facility. The most serious include:
• Electrical service, motor control switchgear and circuit breakers are old, worn,
undersized, unreliable and non - compliant with current electrical codes;
• Structure is seismically vulnerable;
• Concrete foundation is deteriorating and not repairable. Remediation options reduce
pumping capacity or require structure replacement;
• Water pumping equipment and high voltage electrical equipment are located in the
same space and present hazards to maintenance personnel; and
• Structure is not adequately sized to divert and pump water to meet the Tong -term needs
of the Parties.
Raw Water Pipeline (RWP)
This 42- year -old, steel pipeline is about 14,000 feet long and connects the RIPS to the WTP.
Approximately 2,500 feet of the pipeline is buried in the sediment of the Willamette River
between Meldrum Bar Park and Mary S. Young Park. The pipeline is undersized and seismically
vulnerable in the section that crosses the Willamette River. Failure of this pipeline for any
reason would immediately disrupt Lake Oswego's entire supply of water from the Clackamas
River. Repair would be difficult, costly and slow. If the disruption were to occur during a peak
supply period, sources of emergency backup supply would be limited and if available at all,
would not meet Lake Oswego's average winter demand of 4 million gallons per day let alone
average summer demands of 12 mgd or peak day demands of 16 mgd.
Water Treatment Plant (WTP)
This 42- year -old facility was originally sized to treat 10.8 mgd. In 1980, the plant was expanded
to its present day capacity of 16 mgd. In the last decade, peak day demands have approached
or periodically exceeded current plant capacity of 16 mgd. Critical deficiencies identified at this
facility include:
• Electrical service, motor control switchgear and circuit breakers are old, worn,
undersized, unreliable and are non - compliant with current electrical codes;
• The surge control system that prevents over /under pressurizing the FWP was sized for
the original plant capacity of 10.8 mgd. It is undersized at today's flows increasing risk
of pipe damage or contamination if pipe flows are abruptly interrupted for any reason;
• Pump motor sizes are mismatched relative to each other. This creates electrical
inefficiency (or wastes electricity) and excessive equipment wear and tear because
8
pump control valves must be throttled to balance plant influent and effluent flows;
• All four pumps cannot operate simultaneously. Summer demands are most efficiently
met using the three smaller pumps. With one of these pumps out of service, supply is
reduced by 25 %; and
• The finished water clearwell is undersized to allow sufficient contact time with chlorine
to meet regulatory finished water quality standards. Plant operators must therefore
drink bottled water. Seasonal changes in flow rates and water temperature worsen this
condition and require plant staff to modify treatment processes to comply with public
health regulations.
Finished Water Pipeline (FWP)
The finished water pipeline is comprised of steel and ductile iron segments totaling about
35,000 feet in length. A 24 -inch steel pipeline leaves the WTP and transitions to ductile iron at
George Rogers Park. From there, the pipeline travels across Lakewood Bay to North Shore Road
and to Iron Mountain Blvd. at Mulligan Lane. At that point, the 24 -inch pipe splits into 24 -inch
and 18 -inch ductile iron pipes that terminate at Lake Oswego's Waluga Reservoir. These
pipelines were constructed between 1968 and 1985. The ductile iron pipes have been
inspected and found to be in remarkably good condition, free of leaks and significant corrosion.
The 24 -inch steel pipe between the WTP and GR Park has a history of leaks due to corrosion,
failed joints and is undersized to efficiently and reliably convey flows in excess of 10 mgd.
Waluqa Reservoir #2 (WR2)
The existing 4- million gallon (mg) Waluga Reservoir was constructed in 1983 and provides
storage for peak hour demands, fire suppression and emergencies. It is one of three reservoirs
that provide storage to the Waluga /Southside /10 Street service level. This service level is the
largest of all zones within Lake Oswego, serving properties at elevations ranging from 240 -feet
down to the Foothills waterfront Lake Oswego's 2001 Water Master Plan (WMP) identifies a
storage deficiency in this zone of about 1.7 mg currently and 2 mg at buildout. The existing
tank is not tall enough to provide minimum desired water service pressures to customers living
in the immediate vicinity. In 1992, Lake Oswego purchased over 6 acres of property adjacent to
the existing tank for the purpose of providing a site to construct additional storage.
Bonita Pump Station (BPS)
This pump station constructed in the 1970's is a steel "can" buried in the south embankment of
Bonita Road just east of 72 Avenue. Electrical and control systems are obsolete and do not
meet current codes. Access for maintenance is difficult and the pump station is not sized to
meet Tigard's long -term pumping needs.
Water Treatment Process Selection
With direction from the Joint Councils in February 2010, a Business Case Evaluation (BCE) of
water treatment technologies was initiated. For the next three months, a panel of water
treatment and public health experts and citizens from the partner cities conducted a
comprehensive analysis of current treatment technologies that would be appropriate to
6
See attached map of Waluga /Southside /10 Street service level
9
consider based upon the quality of Lake Oswego's source of supply (i.e., Clackamas River) and
current and potential future drinking water treatment regulations. This effort concluded in July
with a consensus recommendation from the experts and citizen panel to incorporate ozone into
any planned expansion and upgrade of Lake Oswego's existing water treatment plant. This
consensus recommendation was arrived at because ozone:
• Preemptively eliminates taste and odor causing compounds that periodically occur in
the source water and cause customer complaints;
• Provides an additional barrier against pathogens, organics (e.g., pesticides, herbicides),
and pharmaceuticals and personal care products (PPCP's);
• Reduces the quantities of chlorine currently used in the WTP while providing a'higher
quality of water leaving the WTP;
• Reduces chlorine use in the WTP while also reducing the potential for disinfection by-
product (DBP) formation; DBP's are currently regulated by EPA due to their carcinogenic
properties; and
• Provides a much higher quality of drinking water at little additional cost.'
Initial Expansion — Facilities Capacity
The IGA contemplates design and construction of water system components that will be sized
to produce not less than 32 million gallons of drinking water per day by 2016. Of this total, Lake
Oswego is allocated 18 mgd and Tigard 14 mgd. During IGA negotiations, the Parties agreed
that the Initial Expansion must also provide the capability for further expansion up to 38 mgd
( "Long term Expansion ").
In particular the Parties agreed that certain system components (i.e., RIPS, RWP, and FWP)
should be designed and constructed to their ultimate capacity for the following reasons:
• Economies of scale — the marginal cost to size these components now for 38 mgd in
comparison to the costs of adding this capacity in the future is minimal. This is
validated by a recent net present value analysis of life cycle costs over 25 years, which
shows this approach saves rate payers anywhere from $77 million to $91 million;
• Minimizing environmental impacts — the construction of the RIPS, RWP, FWP and WR2
requires intrusion into sensitive environmental zones. The impact of these intrusions
can be both temporary, and in the case of the RIPS and WR2, permanent. An objective
of the program is to "avoid, minimize and mitigate" these impacts. While we cannot
economically avoid constructing a new intake in the Clackamas or a new pipeline across
the Willamette, we can avoid multiple impacts to environmentally sensitive areas by
building these components to meet the long -term needs of the Parties;
• Sizing the RIPS, RWP and FWP for 38 mgd recognizes the value inherent in Lake
Oswego's water rights and facilitates further beneficial use of those rights when the
need arises. Beneficial use allows permits to become certified. Certification eliminates
the need to request extensions of time to fully develop permits. The Parties are
' Including ozone in the Initial Expansion is estimated to increase the water bill of the average Lake Oswego and Tigard single
family homeowners by $2.50 per month in 2011 and $4.22 per month, respectively, when construction is complete in 2016.
10
currently involved in a lengthy and expensive process to secure an extension of time to
fully develop its existing permits;
• Sizing these components for 38 mgd minimizes risk that these components could not be
upsized in the future due to changing regulatory conditions; and
• The IGA contemplates that these components would be sized to their ultimate capacity
of 38 mgd to satisfy the "...capability for further expansion to 38 mgd..." test. This
intent is reinforced by Exhibit 7 to the IGA which shows the estimated cost of each
supply component, the applicable allocation ratio and the resulting product of the cost
times the ratio.
Initial Expansion — Cost Update and Allocations
Based on the improved understanding of the condition of Lake Oswego's existing water supply
assets, recommendations of drinking water experts and citizens, and the inclusion of cost
allowances for construction contingency and mitigation, program costs are now estimated at
$230 million. Cost allocations between Lake Oswego and Tigard have also been adjusted,
consistent with the relative capacity approach of the IGA, and are now 46.5% and 53.5 %,
respectively. The adjustment reflects the identified need for several new facilities at the WTP
whose costs (because they are not added to existing facilities), are allocated in proportion to
the capacity each Party acquires with their construction.
8 This total aggregates individual component costs that have been escalated to their respective year of construction and
includes ozone treatment.
11
11/04/2010
Lake Oswego • Tigard
W ater Partnership
sharing water • connecting communities
Joint City Councils
Study Session
November 8, 2010
j'-1.4e .4% s- A. -
l ~ice
Presentation Overview
Partnership review
Project Definition
Findings
Updated cost estimate and allocations
Financing plans
Supply Facilities Capital Improvement Plan (SFCIP)
Council consensus for December approvals of SFCIP
Public information update
0
12 1
11/04/2010
Partnership Review — Supply Facilities
r'.P
I
IONITA PUMP p �A K � '
II STATION p;v+ ��� <! 9'4' .014t'L y .^;
y r . T F ± — LAKE OSWEGO ,e,-
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1 , WATER TREATMENT PLANT '011 11
` , li• th F y " 04147 — � y ' c,' `
Legend : y t'
- Existing and Proposed 4 .
`
Parallel Pipeline %...-: 1
,, CLACKAMAS RIVER INTAKE
k , 4 --,,, .e.Mr` . , , ,A.,,r, ' . 2 *A .6 t. *'1.d?A ' i. .,.: , J 3; - • -A. -.
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Partnership Review — Lake Oswego Goals
Assure water supply future P J
Preserve existing water rights
Address capacity deficiencies .
Replace aging, unreliable facilities
Improve emergency response
B I
through interties
Spread fixed costs of capital /O &M
over larger rate base - -
smilai Air
. ' - ,,•
P —
132
11/04/2010
Partnership Review — Tigard Goals
Ownership position provides:
Certainty of future rates
Certainty of future supply
Additional funding from
SDCs
Secure new supply prior to Bonita Road Pump Station
expiration of Portland
agreement in 2016
vy
Partnership Review — Study Objectives
_.
Evaluate joint water supply system
options kft t o
Long term supply for Lake Oswego & ,��
Tigard �' 411
Identify:'
Preferred supply scenario
Feasibility and costs
Facility improvements
Institutional arrangements
0
143
11/04/2010
Partnership Review - Study Conclusions
(2007)
r-
• Partnership best meets goals of each city: °WAFT REP
New capacity and reliability sudi
Ownership and control
Rate stability
Source reliability and certainty of supply' --
Lowest cost option for both cities "- =
Lake Oswego Supply Options (2006 dollars / 25 years)
"Go it Alone" Partner with Tigard = Savings
$118 million $83 million $35 million
Tigard Supply Options (2008 dollars / 50 years)
Portland Willamette Tualatin Partner
Alone Basin with L . = Savings
$294 million $269 million $250 million $208 million $42 -86 million
0
Partnership Review - IGA
Defines Initial Expansion as:
"The design, permitting and
•
construction of new and
LAKE OSWEGO
expanded Supply Facilities...to C<ntenn,rl 19102010
provide 32 million gallons per day _ .
capacity by 2016 with the
capability to further expand up to T I G A R D
38 million gallons per day...when
it appears the water demands of
the parties will exceed 32 mgd."
0
154
11/04/2010
Partnership Review - IGA
Establishes committees:
Oversight Committee
Technical Committee LAKEOSWEGO
Centenn,. 1 1910 7010 a
LO is Managing Partner
Proportional system ownership • C
upon completion
Council decisions needed for: T I G A K l)
Budget, CIP, property
matters, new partners, initial
& long term expansion,
water sales to others.
o
Project Definition refines scope & cost
• Clackamas River Intake
• Untreated "Raw" Water Pipeline
_ • Water Treatment Plant
u'
• Treated "Finished" Water
� ,. —
4- .., Pipeline
(i • Waluga Reservoir
• Bonita Pump Station
\,.:.......,....
*+' .„. ..... ..
O Lake Oswego • Tigard
Water Partnership
165
11/04/2010
Project Definition — Findings (Water
Treatment Plant) •
Many existing structures and components at WTP cannot
simply be "added on to" for the Initial Expansion:
Pumping and electrical
Work place safety /chemical storage
Lot coverage constraints
Mechanical systems needed to reduce "footprint"
Finished water clearwell
Current treatment process can't reliably meet future
requirements
Constrained site & need to maintain operations during
expansion require use of Mapleton parcels
0
Ozone recommended by expert panel and
Citizen Sounding Board
I I
Provides an additional treatment barrier -
to protect public health
Liquid oxygen is used to
Consistently produces pleasant tasting make ozone
water
Delivers a higher water quality than
required by current regulations -}- I -=
Reduces the amount of chlorine needed I t
for disinfection It
Ozone generator
176
11/04/2010
Ozone recommended by expert panel and
.Citizen Sounding Board
capable of meeting emerging ' S\`
concerns for:
Liquid oxygen is used to
Pathogens make ozone
Algal toxins
Disinfection by- products
Pharmaceuticals and personal care -- ± —
products
Proven technology, increasing
applications
For LO household, the cost of ozone is < Ozone generator
17 cents /day (less for Tigard)
Project Definition — Findings
(Other Facilities)
River Intake too small & seismically vulnerable
Raw Water Pipe undersized & seismically vulnerable
Finished Water Pipe to George Rogers Park undersized
Finished Water Pipelines from lake to Waluga Reservoir are
in good condition; capacity can meet LO demand
New Finished Water Pipe needed to supply Tigard
Waluga Reservoir #2 should address storage and pressure
deficiencies
Bonita Pump Station must be replaced
ice'' rota
187
11/04/2010
Project Definition: higher costs, adjusted
allocations
Total program capital cost
Conceptual budget = $200 M
Updated estimate = $230 M
Allocation of costs
2008 IGA = 42.54% to Lake Oswego, 57.46% to Tigard
Revised WTP allocation shifts cost toward Lake Oswego
2010 allocation = 46.47% to Lake Oswego, 53.53% to Tigard
Lake Oswego share of capital costs increases from prior $85
M to current $106 M (with ozone)
Tigard share of capital costs increases from prior $118M to
current $123M (with ozone)
m
Net Present Value compares Tong -range
expenditures on equal footin.
Net Present Value
An evaluation method used to compare long -term costs between
alternative projects.
Net present value is not a project cost estimate
Capital Costs + Long -Term O &M = Net Present Value
(Current Dollars)
erlajj
198
11/04/2010
Net Present Value over 25 years shows savings to
Lake Oswego from Partnership
®N�rwrrlawri} Lake Oswego Go -It -Alone Scenarios
$250 M
$143 M
5229 M 322$ M
5225 M
ADDED
$200 M -- COST
5 5175M 591 M
S165
$151 M
5150 M - - -
5125M ■ .° -
5100 M :-
575M
550 M M 1
525
SO M
Ozone No Ozone A B C
2015 24 MGD 21 MGD 16 MGD
2015 2025 2035
No Ozone
Lake Oswego Rates: New costs and allocations require
slight upward adjustment from current plan
Lake Oswego Average Residential Monthly BI (1•«n
vase
M 1
Num
_ IMda�
I '
P IFS
sum �.. , yy
7, fww
si
a ,
nawraR I►anuwr naorars namx narwT9 rrwnrou na•raA naRrWR
MAIM NMI R&M Ia■ IIIw NM
wrrww11
P ' e ' a esr u... a+_ WOW ■v
20 9
11/04/2010
Tigard Rates
Estimated Water Rates for Tigard Water Supply Options
$248.000.000
DWI
580.00 132�CERr 1101111„
SOU GO 5244 {.00.000
,6°'" : 1 I 8, J00 000
$50.00 INCMI
640.00
03000
2010 2011 2012 2013 2016 2015 2016 2017 2018 2019 2020 3021 2022 2023 2024 2025 2026 2027 2028 2029 2030 2031 2032
y
Tigard Rates (Lake Oswego Supply Option)
Example Annual Rate Debt Financing
Period Revenue
Monthly Bills* Increases Schedule
Current $27.55
FY2011 $37.05 34.5% $2,097,054
FY2012 $42.24 14.0% $44,147,727
FY2013 $48.16 14.0% $0
FY2014 $54.90 14.0% $40,000,000
FY2015 $57.26 4.3% $0
FY2016 $59.72 4.3% $0
FY2017 $62.29 4.3% $41,341,374
FY2018 $64.97 4.3% $0
FY2019 $64.97 0.0% $0
FY2020 $64.97 0.0% $0
TOTAL $127,586,155
`Residential example monthly bill. Monthly use assumed at 9 CCF.
2110
11/04/2010
Supply Facilities Capital Improvement Plan
• Guides design, funding and construction for Initial Expansion
• Technical Committee recommendation:
- River Intake Pump Station: 32 mgd pumping capacity, expandable to
38 mgd
- Raw Water Pipeline: sized for 38 mgd
- Water Treatment Plant: 32 mgd treatment capacity, expandable to 38
mgd, with ozone
- Finished Water Pipeline: sized for 38 mgd
- Waluga Reservior #2: sized for 3.5 million gallons, site on property
owned by partners
- Bonita Pump Station: sized for 14 mgd, expandable to 20 mgd
• Council consensus for December approvals of SFCIP
Public Information Update KNOW
�h1MM•M¢L�I
Current activities
• CIP decision
• Media — local newspapers and Water Savvy
newsletters _
• Engaging stakeholders
- Robinwood neighbors
- Waluga reservoir neighbors -T
- Ma le rove Plat homeowners
- Gladstone, West Linn
- Lake Oswego, Tigard
2211
1,
T I GARD
City Council
City of Tigard, Oregon
Affidavit of Posting
In the Matter of the Notification of the Joint Meeting of Tigard and Lake Oswego
City Councils on Nov. 8, 2010 at Lake Oswego, Oregon
STATE OF OREGON)
County of Washington) ss.
Ci of Tigard ) )
I, d w y / - 1. /, ,1 , being first duly sworn (or affirmed), by oath (or
affirmation), depose and say:
That I posted in
> Tigard City Hall, 13125 SW Hall Boulevard, Tigard, Oregon
➢ Tigard Public Library, 13500 SW Hall Boulevard, Tigard, Oregon
➢ Tigard Permit Center, 13125 SW Hall Boulevard, Tigard, Oregon
A copy of said Notification of the Joint Meeting of Tigard and Lake Oswego City Councils
A copy of said Notice being hereto attached and by reference made a part hereof, on the / day
of NV de,,.,6.i , 2010.
r
Signature of Person who Performed Notification
Subscribed and sworn (or affirmed) before me this — day of / ;u-0 ,-.,2010.
4611
"' --,
OFFICIAL SEAL Signature of Notary Public for Or = en n
CATHERINE D WHEATLEY
VW NOTARY PUBLIC OREGON
COMMISSION No. 419237
MY COMMISSION EXPIRES AUG. 04, 2011
JOINT MEETING OF THE LAKE OSWEGO
AND TIGARD CITY COUNCILS �
r
NOVEMBER 8, 2010 •
6:00 PM — DINNER
7:00 PM - MEETING (� e �j
WEST END BUILDING T T 1 v 1 l R D
4101 KRUSE WAY
LAKE OSWEGO, OR
NOTICE
THERE WILL BE A JOINT MEETING OF THE TIGARD AND
LAKE OSWEGO CITY COUNCILS ON MONDAY, NOVEMBER 8, 2010
AT 7:00 P.M. THE PRELIMINARY AGENDA IS AS FOLLOWS:
1. Mayors' Updates
2. Water Partnership
3. Upcoming Legislative Issues
Please forward to:
❑ Newsroom, The Times (Fax No. 503 - 546 -0724)
❑ Geoff Pursinger, Tigard Times (gpursinger @commnewspapers.com)
❑ Eric Florip, The Oregonian (ericfloripanews.oregonian.com)
❑ Listings, The Oregonian (Listings(a,news.oregonian.com)
❑ Editor, The Regal Courier (Editor(a,theregalcourier.com)
For further information, please contact Deputy City Recorder Carol Krager by calling 503 - 639 -4171, ext. 2419.
Deputy City Recorder
Date: November 1, 2010
Post: Tigard City Hall
Tigard Permit Center
Tigard Public Library
ti
11
TIGARD
City of Tigard, Oregon
Affidavit of Notification
In the Matter of the Notification of the Joint Meeting of the Tigard and
Lake Oswego City Councils on November 8, 2010
STATE OF OREGON)
County of Washington) ss.
City of Ti and ^
I, (_l O , being first duly sworn (or affirmed), by oath (or
affirmation), depose and say:
That I notified the following organization by fax :
Newsroom, Tigard Times
and the following people /organizations by e -mail:
Eric Florip, The Oregonian (ericflorip @news.oregonian.com) wv
e teg
Gam' Listings, The Oregonian (Listings(a�news.oregonian.com)
Cy-" Editor, The Regal Courier (Editor@theregalcourier.com)
CJ_— Geoff Pursinger, Tigard Times (gpursinger@commnewspapers.com)
A copy of said Notice being hereto attached and by reference made a part hereof, on the 2 ' day
of Arb-vt• 2010.
Signature of Person who Performed N fication
'Th/22
Subscribed and sworn (or affirmed) before me this day ofLI X010.
,! =" �. OFFICIAL SEAL `
Signature of Notary Public for Oregon
i 7,",`/}' CATHERINE D WHEATLEY
` J NOTARY PUBLIC - OREGON
COMMISSION NO. 410237
MY COMMISSION EXPIRES AUG. 04, 2011
Carol Krager
From: Microsoft Exchange
To: ericflorip @news.oregonian.com; Listings @news.oregonian.com
Sent: Monday, November 01, 2010 10:31 AM
Subject: Relayed: Notice of Joint Meeting of Tigard and Lake Oswego City Councils
Delivery to these recipients or distribution lists is complete, but delivery notification was not
sent by the destination:
ericflorip(anews.oregonian.com
Listings@news.oregonian.com
Subject: Notice of Joint Meeting of Tigard and Lake Oswego City Councils
Sent by Microsoft Exchange Server 2007
1
'
Carol Krager
From: Microsoft Exchange
To: Editor @theregalcourier.com
Sent: Monday, November 01, 2010 10:31 AM
Subject: Relayed: Notice of Joint Meeting of Tigard and Lake Oswego City Councils
Delivery to these recipients or distribution lists is complete, but delivery notification was not
sent by the destination:
Editor@theregalcourier.com
Subject: Notice of Joint Meeting of Tigard and Lake Oswego City Councils
Sent by Microsoft Exchange Server 2007
1
Carol Krager
From: Microsoft Exchange
To: gpursinger @commnewspapers.com
Sent: Monday, November 01, 2010 10:31 AM
Subject: Relayed: Notice of Joint Meeting of Tigard and Lake Oswego City Councils
Delivery to these recipients or distribution lists is complete, but delivery notification was not
sent by the destination:
gr ursingerOcommnewspapers.com
Subject: Notice of Joint Meeting of Tigard and Lake Oswego City Councils
Sent by Microsoft Exchange Server 2007
1
** Transmit Confirmation Report **
P.1 Nov 1 2010 10:18am
D.S.S
Name /Fax No. Mode Start Time Page Result Note
5035460724 Normal 01,10:17am 0'29" 1 * 0 K
fC}LNE .METING tit 7 OS
93VD fG- R .Dr Q D[COUN s
•
NOVl7D $ R 8, 0I0 1111111
G 00 P) t+liNR
7:00 PM r Ivf��TCi „
W EST EN B1r ) NG T I G A R D
41Q1 KZr[l
L;A1�E QSO Old
NOTICE
THERE WILL BE A JOINT MEETING OF THE TIGARD AND
LAKE OSWEGO CITY COUNCILS ON MONDAY, NOVEMBER 8, 2010
AT 7:00 F.M. THE PRELIMINARY AGENDA IS AS FOLLOWS:
1. Mayors' Updates
2. Water Partnership
3. Upcoming Legislative Issues
Please forward to:
❑ Newsroom, The Times (Fax No. 503- 546 -0724)
❑ Geoff Pursinger, Tigard Times ( ursinger(rt commzxcwspa cr, coif
❑ Eric Flozxp, The Oregonian ericflori news.ore r< )n .com
❑ Listings, The Oregonian (listings @news.oregoniaat.com)
❑ Editor, The Regal Courier (1 dito�@theregalc er
For further information, please contact Deputy City Recorder Carol Krager by calling 503 - 639 -4] 71, ext. 2419.
7
Deputy City Recorder
Date: November 1, 2010
Post: Tigard City Hall
Tigard Permit Center
Tigard Public Library