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07/13/2005 - Packet Completeness Review a for Boards, Commissions and Committee Records CITY OF TIGARD Intergovernmental Water Board Name of Board, Commission or Committee Z aos Date oP Meeting I To the best of my knowledge this is the complete meeting packet. I was not the meeting organizer nor did I attend the meeting; I am simply the employee preparing the paper record for archiving.This record came from Greer Gaston's office in the Public Works Building. Kristie Peerman Print Name Signature yA Date In te rgovern mental Water Board Meeting Serving Tigard, King City, Durham and Unincorporated Area AGENDA Wednesday, July 13, 2005 5:30 p.m. 1. Call to Order,Roll Call and Introductions Motion to call meeting to order, staff to take roll call. 2. Approval of Minutes—June 8,2005 Motion from Board for minute approval. 3. Discussion of Tualatin Basin Water Supply Project— Third Amendment to Agreement 4. Long Term Water Supply Update—Dennis Koellermeier(20 minutes) S. Informational Items—Dennis Koellermeier Items will be discussed briefly if time allows—otherwise printed info. Will be distributed. 6. Public Comments Call for any comments from public. 7. Non Agenda Items Call for non-agenda items from Board. 8. Next Meeting- Wednesday,August 10,2005, 5:30 p.m.— Water Auditorium 9. Adjournment—Approximate Time 7:00 p.m. Motion for adjournment. A light dinner will be provided. Executive Session: The Intergovernmental Water Board may go into Executive Session under the provisions of ORS 192.660(1)(d), (e), (0 do(h)to discuss labor relations,real property transactions,current and pending litigation issues and to consider records that are exempt by law from public inspection. All discussions within this session are confidential;therefore nothing from this meeting maybe disclosed by those present. Representatives of the news media are allowed to attend this session,but must not disclose any information discussed during this session. Intergovernmental Water Board Meeting Minutes July 13, 2005 Members Present: Patrick Carroll, Dick Winn, Bill Scheiderich, Tom Woodruff, Janet Zeider Staff Present: Dennis Koellermeier and Twila Willson Visitors: Henrietta Cochrun, Norm Penner, Marc Delphine 1. Call to Order, Roll Call and Introductions Commissioner Bill Scheiderich called the meeting to order at 5:39 p.m. Commissioner Scheiderich acknowledged Norm Penner's presence in the audience and thanked him for his past service as a commissioner on the Intergovernmental Water Board (IWB). 2. Approval of Minutes—June 8, 2005 Commissioner Patrick Carroll motioned to approve the minutes, Commissioner Dick Winn seconded the motion, and the board voted unanimously to accept the minutes as presented for the June 8, 2005, meeting. 3. Discussion of Tualatin Basin Water Supply Project— Third Amendment to Agreement Dennis Koellermeier distributed several handouts including the Tualatin Water Supply Project and Feasibility Report and a memo from Tom Vanderplaat, Project Manager. The asset situation with the JWC is a questionable issue. The City of Tigard currently has assets, as do some of the other members. The issues surrounding the terms and conditions of those allocations would be addressed in the 4'h Amendment which is currently being worked on, but will take several months for completion. Phase 3 charges to members to proceed with the next step are substantial. The Tualatin Basin Water Supply Project (TBWSP) includes more than just the dam raise project and was designed in a broader way so as to appeal to the federal government. Some partners have withdrawn from the partnership which reallocates their costs to the remaining members. Costs are high for Tigard at $558,528 for this next phase. Tigard has a19.47% share. Sherwood is leaning away from this project and is looking primarily at the Willamette River and City of Portland for their water supply sources. Intergovernmental Water Board July 13,2005 DRAFT 1 A fatal flaw in the project has now been discovered with the studies. The other members have also taken this to their boards for approval to advance with the next phase of the project. A separate management group manages this project, not just the Joint Water Commission (JWC). The Bureau of Reclamation and Clean Water Services have a hand in this also. Dennis Koellermeier asked that the board make their recommendations about the next phase. The letter from Tom Vanderplaat discusses the 4th Amendment, but the board could wait until that amendment is presented to the board before making a decision. The board discussed the issue and came to a consensus that they would wait until Amendment 4 was presented to them before acting on the issue. Mr. Koellermeier said he would return with clarification to the board's questions and concerns as it became available. 4. Long Term Water Supply Update— Dennis Koellermeier Mr. Koellermeier distributed a reprint of a Portland Tribune article dated 7/12/05 entitled Leonard seeks to calm the waters, that deals with Portland's new city commissioner's. The article contains a lot of misinformation and the wholesale customers have taken objection to Commissioner Leonard's statements in the article. Mr. Koellermeier said that Mr. Leonard attended a regional meeting on Monday and stated the contract negotiations were over as far as Portland was concerned and they would not make other changes. His approach was far different that his predecessor. A draft of a letter that was drawn up by the Water Managers Advisory Board to send to the Editor was also distributed. Mr. Koellermeier asked for recommendations from the board about the letter to the Editor; they indicated the letter looked fine and we should continue to look elsewhere for water. It appeared that nothing was any different than before and the managers were not getting anywhere with the contract negotiations. The City of Portland has made it clear that they do not want partners to acquire ownership in the Bull Run water. Tigard is currently getting water from the City of Lake Oswego and a modified agreement is being prepared with them. Tigard could potentially work with Lake Oswego to pay to make improvements to their system. Lake Oswego has surplus rights to the Clackamas River (junior and senior rights) that they do not think they will ever be about to use all of. South Fork could potentially lease Tigard water rights and we could then work with Lake Oswego to meet both of our needs. Discussion went back to the letter to the Editor and what the other partners' comments might be. Direction from the board was for Tigard not to send the letter in their name. 5. Informational Items—Dennis Koellermeier Intergovernmental Water Board July 13,2005 DRAFT 2 6. Public Comments Marc Delphine, Commissioner on the Tigard Water District Board, asked how to get all the process moving faster and what need to be done to get things rolling toward other water sources. Dennis Koellermeier said that the Sherwood City Council meeting was scheduled for tomorrow night. Sherwood could decide to go with the Wilsonville Treatment Plant and have citizens vote on that possibility in November. The Willamette River Water Coalition members would be able to join that project. Components of the pipeline could be constructed now even if we don't go with them to the Willamette River. Dennis Koellermeier advised bringing the Lake Oswego options further along before taking the Willamette River issue to a citizen vote. Pipe and pump capacity improvements are needed, but Lake Oswego has plenty of water rights. If both agencies worked together to build a treatment plant, an alliance could be made to pay for those improvements and Lake Oswego would buy it back from Tigard or could even split the improvement projects into two projects. Commissioner Tom Woodruff commented that it looked as though the Clackamas River would be the most effective way to go. The Willamette River is still a very volatile issue. A survey was taken of the board, which were favorable toward continuing to pursue the Willamette River as a possibility. 7. Non Agenda Items Mr. Koellermeier reported that the JWC projects were moving along at a good rate. There were some short term improvements on the treatment plant and reservoir on the hill, but Tigard was not involved with those project improvements. Tigard's water use has been low. Two construction projects have taken place, one with the County at Olsen Rd., which involved Tigard being shut off from using Portland water for about a week; a failed pressure reducing valve was also installed last week and that project required another shutdown of several days. There have been no adverse affects from these shutdowns. The board asked for information at future meetings about how the Portland contract worked when Portland shuts off our water. 8. Next Meeting- Wednesday, August 10, 2005, 5:30 p.m. — Water Auditorium 9. Adjournment—Approximate Time 7:00 p.m. The meeting adjourned at 6:33 p.m. Intergovernmental Water Board July 13,2005 DRAFT 3 Intergovernmental Water Board Meeting Minutes June 8, 2005 Members Present: Patrick Carroll, Dick Winn, Bill Scheiderich, Norm Penner Members Absent. Tom Woodruff Staff Present: Dennis Koellermeier and Twila Willson Visitors: Paul Owen, Henrietta Cochrun 1. Call to Order, Roll Call and Introductions The meeting was called to order at 5:31 p.m. 2. Approval of Minutes—May 11, 2005 Commissioner Patrick Carroll made a motion to accept the minutes from May 11, 2005, Commissioner Dick Winn seconded the motion, and the board voted unanimously to accept the minutes. 3. Discussion on Electrical Service Providers • Oregon Electricity Board, Electric Cooperative— Shantu Shah • Portland General Electric Mr. Shah approached staff requesting time to make a presentation to the Intergovernmental Water Board (IWB). Mr. Koellermeier invited Portland General Electric to also be present. No representatives from either group were present (no shows) and the board elected not to have the time rescheduled should the representatives call to do so. 4. Long Term Water Supply Update— Dennis Koellermeier Portland Contract—Two more meetings are scheduled between now and June 26 (which is scheduled to be the last meeting). The model contract will then be made public for all agencies to review. Mr. Koellermeier thought that many would not be satisfied with the results. As of June 30, 2007, Tigard will be without a contract with Portland. Joint Water Commission (JWC)—Threats of drought conditions earlier in the year caused other members of the JWC to hold onto what might have been surplus water. However, Tigard has combined the JWC source with other sources and has committed Intergovernmental Water Board June 8,2005 DRAFT 1 to 114% of the water Tigard will need during the peak water use periods. Surplus water may be released at a later time by the JWC member partners. Lake Oswego - Water is now being received and in the Tigard Water System at 2+ mgd from Lake Oswego. The last major upgrade work project with Lake Oswego was in 1994 and some pump station work in 1997. The water rate is about $.80pcf, but that will soon be lowered slightly to somewhere in the high $.70s. (JWC water is comparable in price, in the high $.70s.) Willamette River—The City of Sherwood is very interested in the Willamette River. They will be conducting tours for their citizens of the treatment plant in Wilsonville. Sherwood is discussing the costs and science behind using the Willamette and is finding that public education is helping. Tigard has the same consulting engineer as Sherwood. The City of Tualatin is also talking about using water from the Willamette River however they appear to be inclined to use the Bull Run water at this time. The coalition charter states that members must follow a formal process and announce their intentions. Tigard may be considering the scenario of whether we will want to lease facilities back if Sherwood does go to the Willamette. The Bull Run water levels have risen. Portland may not need to activate their well fields at all this year by mixing water. In the long term Portland may be driven to use the well fields as fish/water flows increase. Mr. Koellermeier is confident going into the summer months that there will be adequate water available to Tigard. Tigard is leasing 1000 acre feet from the JWC this year. 5. Informational Items— Dennis Koellermeier A handout was distributed of the consortium presentation, which tries to education the public about viable water sources using a marketing approach. A copy of the Governor's proclamation on water conservation was distributed. The governor has not done this in quite some time. Mr. Koellermeier reported that it appeared Tigard lost the argument with Portland on the minimum use violation charges of$304,522, which are due by July '05. The board discussed the situation and concluded that it did not appear there was any other choice but to pay it. The situation occurred when Tigard shifted toward using JWC water. To avoid repeating it again, staff is loading the ASR wells with Portland water and trying not to use other water sources as much until the minimum purchase limits are reached. Portland basically wants Tigard to take the water for use or pay for not using it. 6. Public Comments— None Intergovernmental Water Board June 8,2005 DRAFT 2 7. Non Agenda Items 8. Next Meeting- Wednesday, July 13, 2005, 5:30 p.m. — Water Auditorium Mr. Koellermeier announced that this was Commissioner Penner's last meeting with the IWB. Commissioner Penner will now be serving as president of the Friends of the Tualatin River Wildlife Refuge. 9. Adjournment—Approximate Time 7:00 p.m. The IWB meeting adjourned at 6:02 p.m. Intergovernmental Water Board June 8,2005 DRAFT 3 Sign-in Sheet for Intergovernmental Water Board Meeting July 13, 2005 Name (Please Print) Do you want to , U speak to the Board? ,6'MAUtL P THIRD AMENDMENT TO JOINT FUNDING AGREEMENT FOR IWRM WATER SUPPLY FEASIBILITY STUDY (AKA AS TUALATIN BASIN WATER SUPPLY PROJECT) This Amendment, dated , 2005, is between Clean Water Services ("District"), formerly known as Unified Sewerage Agency, a county service district formed by authority of ORS 451, the Tualatin Valley Water District, a domestic water district formed by authority of ORS 264 and the cities of Hillsboro, Beaverton,Forest Grove, Tigard, Sherwood, and Tualatin, all municipal corporations of the State of Oregon(Partners) and amends the parties' Joint Funding Agreement—IWRM Water Supply Feasibility Study(dated June 20, 2001 ("Joint Funding Agreement"). RECITALS: j 1. The parties previously entered into the Joint Funding Agreement under which the parties agreed to jointly fund a study of the feasibility of alternative approaches to increasing the water supply, as well as the"no action alternative." 2. The parties now wish to amend the Joint Funding Agreement in order to fund additional tasks to complete the Planning Report/Draft Environmental Impact Statement, Final Environmental Impact Statement(EIS) and Permitting. The Water Supply Feasibility Study was completed in March 2004. TERMS AND CONDITIONS 1. From the effective date of the Joint Funding Amendment,Partners shall compensate District for each party's share of the cost of the Study as provided in Section 2 of the Joint Funding Agreement. A revised payment schedule is included as Exhibit B. Total payment to District for compensation for services provided during fiscal years 2005-2006 and 2006-2007 shall not exceed $2.86 million. 2. The First amendment to the Joint Funding Agreement amended Section 4 from$734,000 to $1,237,400. The Second Amendment increased Section 4 to $4,467,000. Section 4 is hereby amended as follows: "$4,467,400" is changed to "$7,353,400". 3. Exhibit A of the Joint Funding Agreement is amended by replacing it with Exhibit A of this Amendment. Page 1 of 5 Third Amendment to Joint Funding Agreement for Water Supply Project 4. This Amendment shall be effective upon signing of all parties. 5. Except as amended herein, the initial Joint Funding Agreement shall remain in full force and effect. The above is hereby agreed to by the parties and executed by the duly authorized representative below: CLEAN WATER SERVICES APPROVED AS TO FORM: By: By: District General Counsel Date: TUALATIN VALLEY WATER DISTRICT APPROVED AS TO FORM: By: By: Attorney Date: CITY OF HILLSBORO APPROVED AS TO FORM: By: By: Attorney Date: CITY OF BEAVERTON APPROVED AS TO FORM: By: By: Attorney Date: CITY OF FOREST GROVE: APPROVED AS TO FORM: By: By: Attorney Date: Page 2 of 5 Third Amendment to Joint Funding Agreement for Water Supply Project CITY OF TIGARD APPROVED AS TO FORM: By: By: Attorney Date: CITY OF SHERWOOD APPROVED AS TO FORM: By: By: Attorney Date: CITY OF TUALATIN APPROVED AS TO FORM: By: By: Attorney Date: Page 3 of 5 Third Amendment to Joint Funding Agreement for Water Supply Project Exhibit A SCOPE OF WORKAND PROJECT ELEMENTS TUALA TIN BASIN WA TER SUPPL Y PROJECT The following is areview of the various phases and project elements: Scope of Work Phase I — Completion of Planning Report and Draft Environmental Impact Statement(PRIDEIS) Phase 2—Final Environmental Impact Statement, Record of Decision, and permit negotiations 1. Final Environmental Impact Statement and Record of Decision(ROD) 2. Permitting Additional Project Elements The following are additional Project elements handled with separate contracts or agreements: 1. Governmental Affairs Consultant—Consultant contracts to continue efforts to secure federal funding assistance and community support at local and national levels. 2. Geotechnical and Site Investigations a. Geotechnical and Site Investigation tasks may include such activities as core drilling and other methods for project elements such as road and facilities relocation,borrow and construction areas. 3. Bureau of Reclamation (BOR)Technical and Engineering Services a. Road Relocation Conceptual Design and Alignment Options—A preliminary survey and conceptual design of Scoggins Valley road relocation areas. b. Lands Review Coordination—To coordinate with Reclamation Lands resources staff on review of lands acquisition needs and requirements. 4. Corps of Engineers Flood Damage Assessment Study—A cooperative Study with the COE and BOR to evaluate the flood control benefits of the Raw Water Pipeline Pump Back and the raise of Scoggins Dam. 5. Hagg Lake Water Quality Modeling Study—A cooperative agreement with USGS to construct a model of Hagg Lake, including flow, temperature and water quality. The model will assist in determining the release changes to Hagg Lake with a raised dam and additional water storage volumes. Several modeling scenarios will be run to address issues of impacts of lake water quality from storage releases,raw water pipeline and pump back system. Page 4 of 5 Third Amendment to Joint Funding Agreement for Water Supply Project 6. Review of Raw Water Pipeline Pump back option. a. Review of hydrology and water quality modeling for pumping winter water from Springhill Pump Plant(intake for Joint Water Commission and Tualatin Valley Irrigation District) via Raw Water Pipeline into Hagg Lake. b. Conceptual Designs for modifications of the Springhill Pump Plant to 7. Lands Easement Services—To research the potential land easements and other properoty related elements for the project areas. These services may include appraisals and environmental assessments of mitigation sites. 8. Biological Studies and Potential Mitigation elements—To conduct site investigations and studies for potential mitigation elements. These studies may include wetlands delineations, wildlife habitat inventories, mitigation designs and other related elements. 9. Clean Water Services Project Management—Continued project management and staff support for the Project. 10. Miscellaneous expenses—The tasks and elements of the project not currently provided for in the above listed items. i Page 5 of 5 Third Amendment to Joint Funding Agreement for Water Supply Project Tualatin Water Supply Project - DEIS/FEIS Phase II (FY-06/07) Environmental Impact Statements, Permitting Phase and Pre-design Costs Project Manager - Tom VanderPlaat - Clean Water Services 2/16/2005 Expenses Review Project Elements FY 05-06 FY 06-07 Percent Total Costs Costs Costs Complete DEIS/FEIS Contract $400,000 $150,000 $250,000 100% Governmental Affairs $180,000 $100,000 $80,000 ** Bureau of Reclamation Contract Preliminary Designs /10 % Level $150,000 $50,000 $100,000 Road Relocation-Options/Costs $250,000 $50,000 $200,000 ** Bioloclical Resources Coordination $50,000 $10,000 $40,000 " Lands Review Coordination $20,000 $10,000 $10,000 ** BOR Sub Total $470,000 $120,000 $350,000 *' C Geotechnical Site Investigations $350,000 $100,000 $250,000 ** RWP Pump Back Review $100,000 $60,000 $40,000 Lake Water Quality - USGS *** $13,000 $12,000 $1,000 100% Lands Easement/Options $350,000 $50,000 $300,000 ** Biological Studies/Mitigation $500,000 $70,000 $430,000 *' A CWS Project Management $270,000 $120,000 $150,000 *' Misc Expenses $135,000 $36,000 $99,000 *' Contingency $100,0001 1 $50,0001 $50,000 Total S2,868,000 $868,000 $2,000,000 B **' - 50% Cost Share not included ** -Task completion percentage cannot be determined A-Assumes Sain Creek Tunnel option is not included and limited need for extensive biological studies B-The$1.13 million from FY 03-04&04-05 will be used in FY 05-06 for a total$2.0 million C-These funding levels assume limited federal funds are available Tualatin Water Supply Project and Feasibility Report Payment Schedule for Environmental Impact Statements and Permitting Phase For FYOS-06 and FY 06-07 Project Manager-Tom VanderPlaat Date 2115/05 EXHIBIT B PAYMENT SCHEDULE (Based on reallocation) Water %Share I Total FY05-06 FY05-06 FY05-06 FY05-06 FY05-06 FY06-07 FY06-07 FY06-07 FY06-07 FY06-07 Allocations Costs Qtr1 Qtr 2 Qtr 3 Qtr 4 Total Qtr1 Qtr 2 Qtr 3 Qtr 4 Total I Jul-Se Oct-Dec Jan-MarApr-Jun Jul-Se Oct-Dec Jan-Mar Apr-Jun Ac-ft 100.0% 0.0% 0.0% 10.3% 20.0% 30.3% 20.0% 20.0% 15.0% 14.7% 69.7% Water Quality Clean Water Services 15,453 29.21% $837,792 $0 $0 $85,999 $167,558 S253,558 $167,558 $167,558 $125.669 $123,449 $584,234 M&I City of Tigard 10,302 19.47% $558,528 $0 $0 $57,333 $111,706 $169,038 $111,706 $111,706 $83,779 $82,299 $389,490 TVWD 10 302 19.47% $558,528 $0 $0 $57,333 $111,706 $169,038 $111,706 $111,706 $83,779 $82,299 $389,490 Citv of Hillsboro 7,726 14.60% $418,869 $0 $0 $42,997 S83,774 $126,771 $83,774 $83,774 $62,830 $61,720 $292,098 City of Beaverton 4,121 7.79% $223,422 $0 $0 S22,934 $44,684 $67,619 $44,684 $44,684 $33,513 $32,921 $155,803 City of Sherwood 1 2,060 3.89% $111,684 $0 $0 $11,464 $22,337 $33,801 $22,337 $22,3371 $16,753 $16,457 $77,8831 City of Tualatin 1,906 3.60%1 $103,335 $0 $0 $10,6071 $20,667 $31,274 $20,667 $20,667 $15,500 $15,226 $72,060 City of Forest Grove 1,030 1.95% $55,842 $0 $0 $5,732 $11,168 $16,901 $11,168 $11,168 $8,376 $8,228 $38,941 Total M&I 37,447 70.79% $2,030,208 SO $0 $208,401 $406,042 $614,442 $406,042 $406,042 $304,531 $299,151 $1,415,766 Sub Total 52,900 100.00% $2,868,000 SO $0 $294,400 $573,600 $868,000 $573.600 $573,600 $430,200 $422,6001 $2,000,000 WQ(exisitin 12,618 M&I(existing) 14,000 Irrigation 27,022 Fish and Wildlife Recreation' 6,900 Hydro power Flood Management Total active storage) 106,540 $2,868,000 Date: June 15, 2005 Memo to: Dennis Koellermeier,City of Tigard Memo From: Tom VanderPlaat, CWS—TBWSP Project Manager Subject: Request for 4`h amendment of IWRM Joint Funding Agreement for asset management and reimbursement—Tualatin Basin Water Supply Project The partners of the Tualatin Basin Water Supply Project have request the development and review for a 4`h amendment of the JFA for terms and conditions of those assets such as land acquisition and capital investments purchased with project funds. The current JFA with its three amendments does not include terms to deal with issue. At this point, no capital assets or land has been purchased with project funds. The amendment will developed during the next four months. If there are any further issues on this issue, please feel free to contact me. Tualatin Water Supply Project and Feasibility Report Payment Schedule for Environmental Impact Statements and Permitting For FY05-06 and FY 06-07 Project Manager - Tom VanderPlaat Date 2/16/04 EXHIBIT B PAYMENT SCHI (Based on realloc� Water % Share Total FY05-06 FY05-06 Allocations Costs Qtr1 Qtr 2 Jul-Sep Oct-Dec Ac - ft 100.0% 0.0% 0.0% Water Quality Clean Water Services 15,453 29.21% $837,792 $0 $0 M&I City of Tigard 10,302 19.47% $558,528 $0 $0 TVWD 10,302 19.47% $558,528 $0 $0 City of Hillsboro 7,726 14.60% $418,869 $0 $0 City of Beaverton 4,121 7.79% $223,422 $0 $0 City of Sherwood 2,060 3.89% $111 ,684 $0 $0 City of Tualatin 1,906 3.60% $103,335 $0 $0 City of Forest Grove 1,030 1.95% $55,842 $0 $0 Total M&I 37,447 70.79% $2,030,208 $0 $0 Sub Total 52,900 100.00% $2,868,000 $0 $0 WQ(exisiting) 12,618 M&I (existing) 14,000 Irrigation 27,022 Fish and Wildlife Recreation* 6,900 Hydro power Flood Management Total (active storage) 106,540 $2,868,000 i Phase EDULE ation) FY05-06 FY05-06 FY05-06 FY06-07 FY06-07 FY06-07 FY06-07 Qtr 3 Qtr 4 Total Qtr1 Qtr 2 Qtr 3 Qtr 4 Jan- Mar Apr-Jun Jul-Sep Oct-Dec Jan- Mar Apr-Jun 10.3% 20.0% 30.3% 20.0% 20.0% 15.0% 14.7% $85,999 $167,558 $253,558 $167,558 $167,558 $125,669 $123,449 $57,333 $111 ,706 $169,038 $111 ,706 $111,706 $83,779 $82,299 $57,333 $111,706 $169,038 $111,706 $111,706 $83,779 $82,299 $42,997 $83,774 $126,771 $83,774 $83,774 $62,830 $61,720 $22,934 $44,684 $67,619 $44,684 $44,684 $33,513 $32,921 $11,464 $22,337 $33,801 $22,337 $22,337 $16,753 $16,457 $10,607 $20,667 $31,274 $20,667 $20,667 $15,500 $15,226 $5,732 $11,168 $16,901 $11 ,168 $11,168 $8,376 $8,228 $208,401 $406,042 $614,442 $406,042 $406,042 $304,531 $299,151 $294,400 $573,600 $868,000 $573,600 $573,600 $430,200 $422,600 FY06-07 Total 69.7% $584,234 $389,490 $389,490 $292,098 1 $155,803 $77,883 $72,060 $38,941 $1,415,766 $2,000,000 PortlandTribune.com I Leonard seeks to calm the waters Page 1 of 3 PordandIT *buiJ uln ��l Home Oreenlight classifieds Fellow pages PDX guide Advertise with us About the Tribune Photo sates S Search ' g Se lch t;y vvard l ►M� t X15: t rs Sea ch.key v.;iter OW ;.Tr1r;Mf irr � Search our Leonard seeks to calm the Volunteers needed waters New water bureau chief sets clear goals, reaches out to critics Quick headlines - By JIM REDDEN Issue date:Tue,Jul 12, 2005 XLR8 Past Tribune itrrtl uutErihsar The Tribune -------- editions Since taking over the Portland Water Bureau less than two weeks XLR8 articles Nets ago,city Commissioner Randy Leonard has signaled a dramatic Around the Bend ort change in the agency's direction. Start EnginesYour The Fuel Factor o siness In conversations with managers and e-mails to employees,Leonard wheel Love, has said he wants the bureau to focus on providing basic services and Life maintaining the existing,aging water distribution system.Leonard said AutomotiveWcakantLife he has little interest in pursuing major,new projects—such as the Employment Insight regional ownership and reservoir burial plans—that have been Real estate for rent lightning rods for public controversy in recent years. Real estate for sale Columnists "I want the bureau to focus on its most basic task,providing reliable Choc-);out Kerryt JavnEs water at the lowest possible cost,"Leonard told the Portland Tribune ��' � � Kerry Fsgers Phil Stanforl. last week. PPete o n ehk�yr9 Leonard also has reached out to bureau critics, including citizen and Jill Spitznass business groups that argue that water rates are rising too fast. Less than l;t+c'rt c'dc�ser trt ltittrte Bar tiara.Ashn�un Loc 24 hours after Mayor Tom Potter appointed him to the bureau July 1, ty ZuTribune ZIP code or street b Sponsorship Leonard sent e-mails directly to those groups apologizing that the information bureau had ignored them in the past and promising to set up a series of meetings with them and bureau managers to discuss their issues. Special Section "When the city ignores citizens,it drives them crazy. I intend to listen Archive to what they have to say,"Leonard said. s Two of the most prominent water bureau critics said they were News surprised and impressed with Leonard's initiative. � "We really appreciate the fact that he is reaching out to the community Click for tree hur4er coupon at partners and promising to do things differently,"said Floy Jones,a founding member of Friends of the Reservoirs,a grass-roots group that opposed KPAM 860 am the plan to bury the city's open water reservoirs. 3 I i __. ---. __._- Kent Craford,a spokesman for the Portland Water Users Coalition, KOIN flews S said he believes Leonard is the right person to steer the bureau away y from expensive new projects that would require large rate increases to Tribune links pay for them. "Leonard is a change agent,and the bureau needs changing,"he said. g Mollie . C7DC2T traffic ca'r's Bureau with a past W O""En*,�.r ian A portifin4 Mom: TriMet The bureau gets most of its water from two dams in the Bull Run Watershed,a federally protected 102-square-mile area in the Mount PDX arrivals and Hood National Forest,east of downtown Portland. In the summer,the departures bureau also can tap supplemental groundwater through a series of wells http://www.portlandtribune.com/archview.cgi?id=30802 7/13/2005 PortlandTribune.com I Leonard seeks to calm the waters Page 2 of 3 along the Columbia River,north of the city. Current weather The bureau serves approximately 180,000 retail customers and 19 wholesale customers,including water districts that in turn serve smaller cities and rural areas in Multnomah,Clackamas and Washington counties. Water consumption ranges from approximately 75 million gallons a day in the winter to 200 million gallons a day in the summer, bringing in more than$70 million a year in sales revenue.The bureau raises a little over$6 million through fees and charges. Tribune Photography Despite the region's growing population,sales have been declining Sales and Galleries over theY ast 10 ears because of conservation efforts and new water P sources—including the Willamette River—being tapped by the I' wholesale customers. The average Portland household pays around$16 a month for 72,000 ., gallons of water every year. Commercial customers can pay hundreds of thousands of dollars a year for water,depending on how much they use. Former Mayor Vera Katz assigned the bureau to two other commissioners—Erik Sten and Dan Saltzman—between 1996 and 2004.Both pursued ambitious new projects that became controversial and ultimately were shelved. Tribune web ads Christian` " .`"Sten proposed turningownershipof the watershed over to a coalition Christian " music of wholesale customers.He hoped the new partners would help finance Bib.es;Christian tmoks, Chnstian tithe cost of maintainingand expanding the system,including vnww.chisi ansupplyTet constructing a third dam in the watershed to increase its capacity.Talks broke down over costs,complicated by the failure of a new computer USQUTDOOR.co'r-Shop for Backpacks onfine with billing system that still may cost the bureau$30 million or more in tree h F'<r g and no s;-FIS replacement fees and lost revenue. tax. Katz transferred the bureau to Saltzman to resolve the problems. But Tei-evision<. )rr�T -rc ais his efforts were overshadowed by public opposition to the council- Portland film productions approved plan to demolish the open reservoirs in Mount Tabor and prod nlep n e T€ �€Eec ,)C'1 f!C li^n, 1,;.Ulti€7(?i^I!Tlil Washington parks and replace them with underground storage tanks. 503-228-08-14 The bureau spent more than$4 million on the project before the council finally pulled the plug on it last year. Searcl,ename rnarke`3ng. Jones and Craford say the wasteful spending and fights with the public wed 'e�Q at portland have left many Portlanders suspicious of the bureau. promolorf y Webfu/," `'The most important thing Leonard can do is restore public confidence 503.381.;'>03 in the bureau,"Craford said. Destination Downtown, EPA may require facility Fandango M,)v e fistinys Leonard agreed but said the issues facing the bureau go well beyond public perception. Although he promises not to initiate any expensive new projects,Leonard said the bureau is facing serious problems thatvz need to be solved. He already has identified the following priority issues: •Holding water rate increases down. Portland residents receive a combined bill every three months that includes charges for their water consumption,sewer use and a storm-water management fee. The average residential bills are approaching$100 a month,which is among the highest combined total in the country. The largest amount—more than$42 a month—is the sewer charge,which has been rising in recent years to help finance the$1.4 billion Big Pipe sewer overflow repair project. But Leonard says keeping future water rate increases down will help everyone. (Commissioner Sam Adams is in charge of the Bureau of Environmental Services,which operates the sewer system and collects the storm-water management charge.) •Aging infrastructure and deferred maintenance. Many components of http://www.portiandtribune.com/archview.cgi?id=30802 7/13/2005 PortlandTribune.com I Leonard seeks to calm the waters Page 3 of 3 the water system are nearly 100 years old,including a number of the distribution pipes that occasionally burst and need to be replaced.An August 2004 audit of the bureau found that maintenance spending has been decreasing in recent years.Leonard said his top priority is determining how much the bureau needs to spend to maintain the current system and to ensure that money is included in future budgets. •Renegotiating the wholesale contracts.The long-term contracts with most of the bureau's wholesale customers are due to expire in 2007. Although Saltzman had been renegotiating them,that responsibility now falls to Leonard.Wholesale customers currently consume about 40 percent of the bureau's water and pay approximately 21 percent of its revenue.The wholesale customers pay so relatively little because they are not charged with building and maintaining the reservoirs,pipes and meters that serve city residents.Leonard said he needs to determine a fair cost for the wholesale customers and make sure they pay it. •Pending U.S.Environmental Protection Agency requirements. The EPA currently is considering a rule that could require the bureau to build a plant to treat cryptosporidium,a potentially deadly microscopic parasite. Although no evidence exists that anyone has ever suffered a cryptosporidium-related illness from drinking city water,such a plant could cost hundreds of millions of dollars,forcing water rates to be raised to pay for it.Leonard is opposed to building such a plant and says he's committed to fighting EPA efforts to impose it on Portland. TOP NEWS BUSINESS PORTLAND LIFE SPORTS INSIGHT CUE GREENLIGHT CLASSIFIEDS PRIVACY POLICY CONTACT US ©2005 THE PORTLAND TRIBUNE Old Town Pizza Visitor's Guides >Sc Ma.ps Portland's Haunted Pizzeria a city landmark Beaches, Parks, Missions&More California, Nevada, Oregon,Arizona Ads by G000000rgle http://www.portiandtribune.com/archview.egi?id=30802 7/13/2005 To the Editor: Those who read the comments regarding the wholesale contract negotiations in the article, Leonard seeks to calm the waters, in the July 12, 2005 Portland Tribune are provided with the impression that Portland residents and businesses are subsidizing wholesale customers. Nothing could be further from the truth. What Portland customers need to be aware of is that wholesale water customers generate over $16 million of revenue for the Portland Water Bureau. This appears to be a more than fair return when you consider that if there were no wholesale water customers, the Bureau would only be able to reduce expenses by less than$1 million. This lost revenue from wholesale customers would cause rates to increase by 20%to Portland residents and businesses. Those of us who comprise the Bull Run Water Managers Advisory Board are so concerned about rising Portland water rates that most of us are exploring other water sources to serve the needs of our customers. We provide water to more than 350,000 people in the areas surrounding Portland, including Gresham, Tualatin, Tigard and much of unincorporated Washington County. Greg DiLoreto Chair, Bull Run Water Managers Advisory Board