10/13/2010 - Packet Completeness Review
for Boards, Commissions
r and Committee Records
CITY of TIGARD
Intergovernmental Water Board
Name of Board, Commission or Committee
aA-Q b e.r 13. 20 I c�
Date of Meeting
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
Y/y li 3
Datc
Intergovernmental Water Board Agenda
SERVING TIGARD, KING CITY, DURHAM AND TIGARD WATER DISTRICT
MEETING DATE: Wednesday, October 13, 2010, 5:30 p.m.
MEETING LOCATION: Tigard Public Works Building
8777 SW Burnham Street
Tigard, OR 97223
1. Call to Order, Roll Call and Introductions
Call the meeting to order, staff to conduct roll call.
2. Approval of Minutes —September 8, 2010
Action: Motion to approve the September 8, 2010 minutes.
3. Public Comments
Call for comments from the public.
4. Water Supply Update -John Goodrich
5. Water Rate Study and Water SDC Update -John Goodrich
6. Informational Items
a. Update from Commissioner Buehner on Lake Oswego/City of Tigard Oversight Committee
activities.
b. Update from Commissioner Winn on West Bull Mountain Technical Advisory Committee
activities.
7. Non-Agenda Items
Call for non-agenda items from the Board.
8. Future Agenda Items
Schedule Date Item
To Be Announced Additional Tenancy in Common Agreements for Properties within the Tigard
Water Service Area.
9. Next Meeting:
■November 10, 2010 at 5:30 p.m.
Public Works Auditorium, 8777 SW Burnham Street,Tigard, Oregon
10. Adjournment
Action: Motion for adjournment.
INTERGOVERNMENTAL WATER BOARD AGENDA— October 13, 2010
City of Tigard 1 13125 SW Hall Blvd.,"Tigard,OR 97223 1 503-718-2591 www.tigard-or.gov I Page 1 oft
Executive Session
The Intergovernmental Water Board may go into Executive Session. If an Executive Session is called to
order, the appropriate ORS citation will be announced identifying the applicable statute. All discussions
are confidential and those present may disclose nothing from the Session. Representatives of the news
media are allowed to attend Executive Sessions, as provided by ORS 192.660(4), but must not disclose
any information discussed. No Executive Session may be held for the purpose of taking any final action or
making any final decision. Executive Sessions are closed to the public.
INTERGOVERNMENTAL WATER BOARD AGENDA— October 13, 2010
Cityof Tigard 1 13125 SW Hall Blvd.,Tigard,OR 97223 1 503-718-2591 1 www.tigud-or.gov I Page 2 of2
Intergovernmental Water Board (IWB)
Meeting Minutes
October 13, 2010
Tigard Public Works Building
8777 SW Burnham Street
Tigard, OR 97223
Members Present:
Gretchen Buehner Representing the City of Tigard
Ken Henschel Alternate Representing the Tigard Water District
Keith Jehnke Representing the City of Durham
Dick Winn Representing the City of King City
Mike Stone Member At-Large
Members Absent: None
Staff Present:
John Goodrich Utility Division Manager
Greer Gaston Executive Assistant
Visitors: None
1. Call to Order, Roll Call and Introductions
Commissioner Winn called the meeting to order at 5:30 p.m.
2. Approval of Minutes — September 8, 2010
Commissioner Buehner motioned to approve the September 8, 2010 minutes.
Commissioner Stone seconded the motion. The minutes were approved by unanimous
vote of the Board, with Commissioners Buehner, Henschel, Jehnke, Stone, and Winn
voting yes.
3. Public Comments: None
4. Water Supply Update
Mr. Goodrich reported:
■ Water consumption was about 4.6 to 5 million gallons per day.
■ One reservoir continues to be offline for construction, which will be completed next
spring.
■ Tigard is operating under its winter contract with the City of Portland.
■ There is about a 24-day supply in aquifer storage and recovery wells. Injection will start
in November.
Commissioner Henschel inquired about summer water usage and revenues. Mr. Goodrich said
he would bring that information to the November meeting.
Intergovernmental Water Board Minutes October 13, 2010
1
Commissioner Henschel asked for an update on the pump station at 125th and Bull Mountain
Road. Mr. Goodrich said the contractor was excavating, framing, and pouring concrete, and the
project was on schedule.
5. Water Rate Study and Water SDC Update
Mr. Goodrich distributed a memo from Redoak Consulting dated September 28, 2010. The
memo is on file in the IWB record. He described the memo which summarizes the water
financial plan, an outcome of Tigard's Water Rate Study and Water System Development
Charge (SDC) Update. He reminded the Board of the previous discussions on this topic.
Mr. Goodrich said a 34.5-percent rate increase is needed now to position the City of Tigard for
future bonding. Bonding requirements and strategy were discussed. Mr. Goodrich gave
examples of how rate increases would affect various residents or businesses. The average
household would see an increase from $27.55 to $37.05, or about $10 per month. The City of
Tigard will likely go to monthly billing in January.
Commissioner Henschel inquired about changes in the City of Tigard's electronic routing
address. This affected water customers' automatic transfers. Mr. Goodrich was not aware of any
change and said he would look into the problem.
Mr. Goodrich reported he had met with the Home Builders Association (HBA) recently. There
were no comments regarding the SDC methodology. However, there were requests that SDCs
be phased-in over time.
Mr. Goodrich asked for the Board's:
• Approval of the water financial plan and summary findings.
■ Support for the City of Tigard to proceed with water revenue increases to offset costs
associated with the Lake Oswego-Tigard joint water supply project.
Commissioner Winn asked for clarification on the bonding strategy. Mr. Goodrich explained that
instead of one large bond, the City of Tigard would probably bond three times for smaller
amounts:
■ In 2012 for about $30 million.
■ In 2014 for between $40 and $44 million.
■ In 2017 for the remaining funding.
Bond anticipation notes may be used for bonding in earlier years. These notes would allow the
City of Tigard to defer the principal and pay only the interest for the first few years of the note.
Once the Lake Oswego-Tigard project is online in 2017, Tigard will not have to purchase water
from the City of Portland. This will result in a $3.5 million cost savings. Of this amount, about $1
million will go toward operating and maintenance costs for the Lake Oswego water supply. The
remaining $2 million will be combined with water rate revenues and will be used to pay the
interest and principal of the bonds.
Mr. Goodrich also noted that revenues from the bonds must be spent within three years, so this
precludes the use of only one bond since Lake Oswego water supply projects span many years.
Commissioner Buehner added Tigard's finance department expects bond rates to remain flat for
the next five years.
Commissioner Winn noted the rate structure was not included with the memorandum.
Intergovernmental Water Board Minutes October 13,2010
2
Mr. Goodrich summarized the recommendations:
■ Move to monthly billing.
■ Establish fixed rate charges that increase with meter size.
■ Generate a larger portion of revenues through fixed rates.
■ Decrease volume rate to offset fixed charges.
■ Move to a tiered rate system.
The monthly rate structure was subsequently distributed to the Board and is on file in the IWB
record. Mr. Goodrich summarized the tables, which extend out to 2015. Commissioner Buehner
suggested extending the rates to 2019 when rate increases end. The Board discussed how to
best present rate increases to the public. Additional suggestions included focusing on the dollar
amount of rate increases, as opposed to the percentage increase, and providing comparisons to
other jurisdictions.
At the request of Commissioner Henschel, a City of Tigard document entitled, "Fact Sheet:
Water Revenue Bonds" was distributed to the Board. This is on file in the IWB record.
Note: Discussion of this agenda item continued under item 7, Non-Agenda Items.
6. Informational Items
a. Update from Commissioner Buehner on Lake Oswego/City of Tigard Oversight
Committee Activities
• Commissioner Buehner reported the cost allocation between Tigard and Lake
Oswego had shifted slightly in Tigard's favor. Initially Tigard's share to develop the
Lake Oswego-Tigard water partnership projects was estimated to be 57.5 percent.
That percentage has decreased to approximately 52 percent, because the
percentage of Lake Oswego's existing infrastructure that can be used in the new
water system has declined. This excludes Tigard's share of the $17.5 million
additional ozone treatment process. Overall Tigard's share of the project is on target.
• The analysis of existing facilities is completed.
• The water intake will be in the same general location along the Clackamas River.
• A preliminary meeting with staff from the City of West Linn went well. Most issues
with neighbors near the treatment plant have been resolved.
• The size of the Waluga Reservoir has been increased. Another Lake Oswego
reservoir on 10'h Street is nearing the end of its useful life. The Waluga Reservoir will
need to absorb the capacity of the 10`h Street reservoir.
• Permitting will be coordinated among federal, state and other agencies. Filing will
occur late summer or early fall of 2011 and is expected to take a year to process. A
preliminary ruling, in favor of Tigard and Lake Oswego, was issued. The appeal
period will start after the final order is issued. An appeal is anticipated.
• Land use permitting is in the preparation stage. Permitting will be required in
Gladstone, West Linn, Lake Oswego, and Tigard. Final design needs to be 20 to 30
percent complete before entering the permitting phase.
• Commissioner Buehner asked Ms. Gaston to furnish the Board with an updated
memo dated October 2, 2010 from Joel Komarek to the Oversight Committee
regarding "Program Costs — Sponsor Allocations."
Intergovernmental Water Board Minutes October 13, 2010
3
b. Update from Commissioner Winn on West Bull Mountain Technical Advisory
Committee Activities
• Commissioner Winn reported the water provider will not be determined until the
financial and community plan is addressed in the next session. The concept plan will
be ready to go to County Commissioners at the end of October.
7. Non-Agenda Items
Commissioner Henschel inquired why the IWB intergovernmental agreement was not on the
agenda as indicated in the September 8, 2010 minutes. Other Commissioners said the item was
moved due to Mr. Koellermeier's absence. This item is expected to be on the agenda at the next
IWB meeting.
Note: Discussion of agenda item 5, Water Rate Study and Water SDC Update, continued under
this agenda item.
Mr. Goodrich asked for the Board to make a recommendation to the Tigard City Council.
Commissioner Winn confirmed that the recommendation was related to the Water Rate Study.
Commissioner Buehner motioned that the Board recommend approval of the Water Rate
Study to the Tigard City Council as presented at this meeting.
Commissioner Henschel asked for Mr. Goodrich to confirm his proposed motion. Mr.
Goodrich said he was seeking the IWB's approval of the water financial plan summary
findings and support for the City of Tigard to move forward to increase water revenues to
offset costs associated with the Lake Oswego-Tigard joint water supply project.
Commissioner Buehner amended her motion accordingly.
Commissioner Stone seconded the motion. The motion passed by unanimous vote of
the Commissioners present, with Commissioners Buehner, Henschel, Jehnke, Stone, and
Winn voting yes.
Commissioner Buehner said she was now meeting on the Lake Oswego partnership on a
monthly rather than quarterly basis. She will be reporting to the Board about partnership
activities more often.
8. Future Agenda Items
• Future agenda items were not discussed.
9. Next Meeting:
• November 10, 2010 at 5:30 p.m.
Public Works Building, 8777 SW Burnham St, Tigard, Oregon
10. Adjournment
At 6:51 p.m., Commissioner Stone motioned to adjourn the meeting; Commissioner
Henschel seconded the motion. The meeting was adjourned by unanimous vote of the
Commissioners present, with Commissioners Buehner, Henschel, Jehnke, Stone, and
Winn voting yes.
Intergovernmental Water Board Minutes October 13,2010
4
Dick Winn, IWB Chair Oreer Gaston, IW Recorder
Date: 6/1, //r
r Date:
Intergovernmental Water Board Minutes October 13,2010
5
Agenda Item No.: a
IWB Meeting Date: UL c)�o
Intergovernmental Water Board (IWB)
Meeting Minutes
September 8, 2010
Tigard Public Works Building
8777 SW Burnham Street
Tigard, OR 97223
Members Present:
Gretchen Buehner Representing the City of Tigard
Ken Henschel Alternate Representing the Tigard Water District
Dick Winn Representing the City of King City
Mike Stone Member At-Large
Members Absent:
Keith Jehnke Representing the City of Durham
Staff Present:
Dennis Koellermeier Public Works Director
John Goodrich Utility Division Manager
Kathy Mollusky Executive Assistant
Visitors:
Joe Healey Red Oak Consulting
Paul Matthews Red Oak Consulting
1. Call to Order, Roll Call and Introductions
Commissioner Winn called the meeting to order at 5:35 p.m.
2. Approval of Minutes —July 14, 2010
Commissioner Buehner motioned to approve the July 14, 2010 minutes. Commissioner Stone
seconded the motion. The minutes were approved by majority vote of the Commissioners
present, with Commissioners Buehner, Henschel, Stone, and Winn voting yes.
3. Public Comments:
None
4. Credit for Leak Adjustment
Mr. Goodrich asked for the IWB's approval for a credit for leak adjustment submitted by Linda
Masters for a leak that occurred at their home.
Commissioner Buehner motioned to approve the Linda Masters credit as recommended
by staff. Commissioner Henschel seconded. The credit for the water leak was approved
by unanimous vote of the Commissioners present, with Commissioners Buehner,
Henschel, Stone, and Winn voting yes.
Intergovernmental Water Board Minutes September S,2010
1
5. Tualatin Valley Water District Boundary Clarification
Mr. Goodrich reported that last year the City went through the property withdrawal procedure for
this area; however, one property was inadvertently omitted. The state requires the process be
completed from the beginning with all of the effected properties included. This is a
housekeeping issue; there are no service boundary changes. Tigard has been serving this area
since the 1970s.
6. Water Supply Update
• Mr. Goodrich reported having an average month of about 10 million gallons per day
(mgd) of water usage. This is 0.67 mgd less than the historical low. Water use has been
less than expected because of a very late, wet spring. It is up 0.3 mgd from last year.
The complete supply from ASR 1 was utilized. There is about a 9-day supply left in ASR
1 and a 70-day supply in ASR 2.
• The 10 million gallon reservoir is offline. Construction is continuing on the pump station.
Excavating and shoring are being completed. JS Fowler is the contractor.
7. Consultant Presentation on Final Recommendations on the Water Rate Study and
Water SDC Findings
Mr. Paul Matthews and Mr. Joe Healy, Red Oak Consulting, gave a PowerPoint presentation,
which is on record in the IWB file.
• Mr. Matthews clarified the Tigard Water Service Area (TWSA) conservation program has
been in existence at least 10 years. Due to the success of this program, there is not a
lot of future conservation figured in.
• Mr. Healy clarified a typical residential has a meter size of 5/8 x 3/4.
• There is only one 12" meter in the TWSA, which may be in use for fire flow. The City
would suggest an adjustment for them.
• If larger meter users do not pay for their use, the charge would shift to other customers.
Some customers would true up meter size and may not need as big a meter as they
have.
• In October 2010, there will be a 7% increase. On January 1, 2011, costs will increase
31%.
• Typical residential user fees per month depend on the time of year. Average winter
consumption is six units, which would be in Tier 1. Low minimum user will have a fixed
rate charge of $31 plus the cost of water at thresholds based on meter size.
• The large meter customers will see a higher percentage increase. They currently are
not paying their fair share. Billing is currently based on how much it costs to bill a
customer. It costs the City the same to bill a small meter as a large meter customer.
That is not the true cost of the water used. A 30% increase equals $8/month or 20
cents/day. The percentage increase seems to be a lot; however the dollar amount is not
that much.
• If the increase was over-estimated or we realize additional savings, these rates can be
adjusted in the future by having either a smaller increase or no increase in the "out
years".
• The booster charge is used to recover the additional cost of pushing water to the higher
elevations. This rate is not increasing.
• For low-income customers, there is a third party, not-for-profit group that will allocate a
check to the customer to help cover the water bill.
• For TWSA purposes, System Development Charges (SDC) for existing sources (ASR,
Wells, etc.) were allocated to existing customers. This shifts a big share of the Lake
Oswego capacity expense to future growth. Tigard's current SDC charge is $2,366.
Wilsonville's is around $7,200. West Linn's is $6,600. Happy Valley's is $6,500.
Intergovernmental Water Board Minutes September 8,2010
2
• If SDC's are reduced to one meter size (i.e., 2" meters), someone still has to pay so it
will be ratepayers.
• Most of our customers have 5/8" by 3/4" meters. If someone needs a 4" connection, it
will be a school, hospital, major hotel, some kind of industry. It will not be a standard
customer like a restaurant.
• An 8" meter ensures customers that water will be available for that development from
here forward; it is a buy-in fee, a onetime fee.
• Commissioner Buehner explained that developers are not paying what it costs,
particularly for transportation. Cities cannot diminish service levels for water like they
have for roads. Ratepayers have to pick up the cost.
Commissioner Henschel made a motion that IWB recommend to Council to not phase in
System Development Charges, but institute immediately. Commissioner Buehner
seconded the motion. The motion was approved by unanimous vote of the
Commissioners present, with Commissioners Buehner, Henschel, Stone, and Winn
voting yes.
8. Informational Items
a. Update from Commissioner Buehner on Lake Oswego/City of Tigard Oversight
Committee Activities
• Commissioner Buehner reported receiving a presentation on the new figures for the
joint project. The figure they were working with was $200 million and now it is $230
million.
• It was determined that almost none of current Lake Oswego plant will be able to be
reused, which will reallocate a percentage of the cost. Lake Oswego's share will
increase and Tigard's share will decrease. This will not raise our costs very much, if
at all. We will stick with $118 million for our purposes here and will adjust rates later
if needed.
b. Update from Commissioner Winn on West Bull Mountain Technical Advisory
Committee Activities
• Commissioner Winn reported this will be talked about next month.
c. Update from Mr. Goodrich regarding Tigard Municipal Code (TMC) 12
• Mr. Goodrich is presenting the updated TMC, practices and procedures to Council
October 19 during the workshop session and will present the following month for
adoption. The updated TMC, practices and procedures should be in place January
1, 2011.
9. Update from Mr. Koellermeier regarding the IWB Intergovernmental Agreement (IGA)
• Mr. Koellermeier reported Tigard sent the marked up IWB IGA to the IWB. This will be
discussed at the October 13 meeting, including the reasons behind the changes.
• Council will discuss at the September 28 workshop.
• Commissioner Winn would like IWB to go through, decide and make recommendations
before Council gets the final draft. The seventh draft is what Tigard City Council will
approve and he doubts much will be changed.
• Commissioner Winn recognizes that "66", giving authority to the IWB to be final and
binding on Tigard, was put in due to the IWB being in a hurry. This was not what the
IWB had agreed to. He believes this agreement is good. He would like the IWB to join
together and think about what is best for all the communities. The betterment of the
Intergovernmental Water Board Minutes September 8,2010
3
cities depends on a financially and operationally sound water department. He would like
the IWB to all show up when it is submitted to Council.
10. Non-Agenda Items
None
11. Future Agenda Items
Future agenda items were not discussed.
12. Next Meeting:
• October 13, 2010 at 5:30 p.m.
Public Works Building, 8777 SW Burnham St, Tigard, Oregon
13. Adjournment
At 8:00 p.m., Commissioner Buehner motioned to adjourn the meeting; Commissioner Henschel
seconded the motion. The meeting was adjourned by unanimous vote of the Commissioners
present, with Commissioners Buehner, Henschel, Stone, and Winn voting yes.
Dick Winn, IWB Chair Kathy Mollusky, IWB Recorder
Date: Date:
Intergovernmental Water Board Minutes September 8,2010
4
Sign-in Sheet
Intergovernmental Water Board Meeting
Date: October 13, 2010
This is a City of Tigard public meeting, subject to the State of Oregon's public meeting and records laws. All
written and oral testimony becomes part of the public record. The names and addresses ofpersons who attend
or participate in City of Tigard public meetings will be included in the meeting minutes, which is a public
record.
Name Do you wish If yes, please give your Phone number / Email
(please print) to speak to address
the Board?
John Q. Public Yes 13125 SW Hall Blvd. (503) 555-5555
Tigard, OR 97233 johngpublic@yahoo.com
Submitted at the IWB Meeting
By: John eiylrt* _h
• •• Date: 16-VA- 10 Agenda Item No.:
: REMA K CONSULT[NG
..,V,•,.• Or -OI.E.L- „.*,r MEMORANDUM
To: John Goodrich, City of Tigard Date: September 28, 2010
From: Joe Healy, Red Oak Consulting
Re: Summary of Recommended Financial Planning Scenario
Introduction
The cost of service for the City includes both near-term and long-term capital
expenditures. Financial planning is an integral part of a comprehensive process of
establishing the cost of service for a utility that incorporates a longer term perspective. A
finance plan looks at a utility's long-term capital needs,typically from a master plan or
similar document, along with other assumptions to calculate an overall level of rate
adjustments and additional debt requirements for a five-to ten-year period.
Broad Overview of Financial Planning
The financial plan is a useful tool. Actually, it may be described as four tools in one.
The four main functions that a financial plan serves are for the following:
1. Planning
2. Communication
3. Information
4. Policy Assessment
As relevant for the purposes of this memo, the policy assessment aspect of financial
planning is described more fully below.
Financial Plan as a Policy Assessment Tool
Policy assessment means a wide-variety of things to different people. A utility's
stakeholders may use financial plan results to assess how its policies and goals for the
utility stand the tests of time. A utility's management may use financial plan information
to assess the cost effectiveness of operations or infrastructure replacement.
First and foremost, a utility may use the plan to assess the long-term implications of
capital decisions. Topics related to capital decisions include:
• Scenario analysis,
• Sensitivity analysis,
• Financing options,
• Operating costs,
• Matching revenues with expenditures, and
• 12670 NW flames Road • Suite 104 • Portland,OR 97229 • T 503-352-0000 • F 503-644-2414 • w,wvr redoakconsulUng.com
Page 2
• Managing rate adjustments over time.
As mentioned above, a financial plan is a tool used for alternatives analysis. Regarding
its financing options, a utility can use the financial plan to assess its plans for the use of
additional long-term debt and capital reserves. Questions surrounding this issue include:
• What is an appropriate level of debt?
• How much can we afford?
• Should we accumulate and use capital reserves to mitigate the need for debt in the
future?
• Will certain capital additions also affect our O&M projections?
• How will we best match our need to recover costs with the available revenue
sources?
• How can we avoid rate shock to our customers or send them price signals to
influence conservation goals?
Along with all of these questions,the financial plan can be used to assess the impacts of
legal, institutional, and regulatory requirements. The lists of questions above reinforce
the idea of a financial plan as a broadly focused planning tool. If it were designed to
meet more narrowly focused needs, such as budgeting or auditing, it would lose its ability
to capture and address these wide-ranging issues. Side effects of a utility's failure to plan
properly may include system deterioration or failure, higher financing costs, rate and
revenue instability, limited choices, rate shock, and unhappy customers.
Summary of Assumptions for Recommended Financial
Planning Scenario
Red Oak analyzed alternative financial planning scenarios. The results were presented to
the City in a previous technical memorandum. Presented below are the assumptions
underlying the financial planning scenario selected by City Staff for recommendation to
the City Council.
Table 1: Recommended Financial Plan Scenario-General Assum tions
Awowtions Description
Financing Schedule 2012 Revenue Bo ':'!'�� -
by fiscal year 2014 Revenue Bonds
2015 Bond Anticipation Notes
2016 Bond Anticipation Notes
2017 Revenue Bonds
Target Ratios " � Total Debt Service Coverage= 1.50x
Min.Required Ratios Additional Bonds Test= 1.25x for 2012 Revenue Bonds
Additional Bonds Test= 1.15x for all other Revenue Bonds
Total Debt Service= 1.lOx
Interest Rates 5.5%for 2012 Revenue Bonds;6.0%for all other financing
Term 25-year teen for all financing
Page 3
Summary of Results
Presented below are the summary results of the recommended financial planning
scenario.
Table 2: Recommended Financial Plan Scenario-Summary Results
Annual Rate
Example Revenue Debt Financing
on -IYiSchedule
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 CCP.
Fiscal Year FY2012 FY2013 FY2014 FY2015
Rate Revenue Increases 14.0% 14.0% 14.0% 4.3%
Recommended Base
Charges
Oct.Meter
I Jan. Jail.
0
211 7-012 201-3
Size 20 2014
� • . ,
$15.78 $23.38 s $23.38 $ ,
�w
1" 3.67 35.40 40.36 46.01 52.45 544,30
. � 3:67 93,4; ! 1(1 ` 121.50 138 Sl 1
�a,...
2" 3.67 151.68 172.92 197.12 224.72 234.38
W RT 3 C 1 3 6 E 388.01 44U&,., 1.35
4" 3.67 56112 646,52 737.03 840 876.34
` 3.57 ?1 $: 7Ai'i f 826.39 . .. 942
8" g 3.67 99.3.12 1,132.16 1,290.66 1,471.35 1,534.62
1-67- 1 ..': 2,09.11 2,381.58 2, ;5.00 2,831.7$'
12" 3.67 2,592.94 2,955.95 3,369.78 3,841.55 4,006.74
Fiscal Year FY2012 FY2013 FY2014 FY2015
Booster Rate Increases 6.0% 6.0% 6.0% 6.0%
Recommended Booster Pump Charges
Oct.Meter :
Size 2010 2011
x,314",
$ 24 $4.5$
1" 3.24 10.87, 11.52 12.21 12.95 13.72
1; 3.24 ! 34.56 36.63 38.83 ! 43 1
2" 3.24 52.93 56.11 I 59.47 63.04 66.82
:��< .. (: ., �2 93.33 98.&�. 1+04.87 I l
4" 3.24 191.41 202.89 215.07 22797 243:65
3.24 203.75 ; 215.98 i 228.93 242.67 257 2
8" 3.24 326.00 345.56 366.29 388.27 411.57
1e ! 3.24 636.93 675.15 715.65 1 758.59 8041`Ir,,
12" 3.24 917.17 972.20 1,030.53 1,092.36 1,157.91
October 2010 - Volume Rates ($/CCF)
Submitted at the IWB Meeting
By: -.Joh (I 01 Yn K 1c,
.1
Date: lb"1-3 1 L) Agenda Item No.:
Residential $2.87
Multi-Family 2.85
Cs� al 3.35
Industrial 2.78
hri ation 1 3.57,,
Projected Volume Rates
($/CCF)
Wer 2 Tier 3 Fiscal Rate Rev
' Rute Rate Year Increase
Residential S298 $3.41
_Commercial 2.32 3:3-8 3.87
�';
Irrigation 4.59 4.59 4.59
VO
J11183y 2012 1rb y FY2012 14.0%
Multi-Family 1.94 2.83 3.24
Omm
Industrial e 3.68 1.68 3.68
!pip
2013 `, FY2013 14.0%
Residential $2.65 $3.87 $4.43
Multi-Family f 211 3.22
Commercial 3.02 4.39 5.03
Industrial 4.20 s ."
Irrigation 5.97 5.97 5.97
!• - 1_
January 2014 FY2014 14.0%
r
Residential $ '.0 (.
Multi-Family 2.52 3.67 4.21
Commereial 3:,44 5.01 5.73
Industrial 4.79 4.79 4:79
.
Irrigation 6.80 6.8k
JaA a y 2015 FY2015 4.3%
Residential $3.15 $4.60 $5.27
ivlulti- iy �. ,. 2.63 3;8 439
Commercial 3.58 5.22 5.98
Inds#ria] � - 4.99 4.99 4:99
Irrigation 7.09 7.09 7.09
Recommended Tier Thresholds
x 3/4" 6 15 Cher i5
l" 16 40 Over 40
1 1/2" 120 ! Over 120
2" 78 195 Over 195
137 344 Over 544'
4" 282 705 Over 705
61
' 300 750 Over 750
8" 480 1,200 Over 1,200
10" 938 2,345 4w,2,,343
12" 1,350 3,376 Over 3,376
Submitted at the IWB Meeting
By: l<�/I He�sc.J��l
City of Tigard
Date: IG -13 - I Agenda Item No.:
FACT SHEET: Water Revenue Bonds
Overview
In _iwust 33,03,the cities of L alwOsweV and TWrd ionn2117 endorsed a partnership-agreement for sharing
chinking w2ler resources and cosh Like Om-ego's existint:{
g u7ar facr�es will EL upgraded Lnd up-sized to
&rve cuswmers. in beth aotn�r:�amries. Borh ci ics want io ktcp Tvauz affordable fox th6r custowwrs an
sham ng the cwt does that. Tigard Wmer Sen-ke Area customers m"ITard,Durlimm, King Citi=,and Tiger
NSR"awr Distalct ber-emt by fnnialls g2it..3ng cswaer hip of a dnnkig rater snx , instead 4,147 connnumg to
purchase,mater from Portland.
Funding sources for the Partnership project include"revenue bonds" issued by Lake Oswego and Tigard to
be repaid over the years by customers'monthly water charges and SDCs(systems development charges) paid
by all new development. Both Lake Oswego and Tigard are increasing water rates and SDCs to pay for the
project to meet bond requirements.
Revenue Bond Primer
Revenue bonds are secured solely by utility system revenues (rather than tax dollars). Operating revenues
must be sufficient to repay the bonds after the system's ongoing operations and maintenance costs are
covered. These are called"net revenues".
Net Revenues Net revenues must be sufficient to pay the debt service (interest and
principal payments)at the time the bonds are issued. They cannot rely on
future actions by the City to raise rates. Also,net revenues must be more
than just enough to pay the debt service.
Coverage To account for contingencies,such as reduced revenues due to the loss of
loge users or mdtrcxd demand through conservation efforts, bond
holders require the City to collect more revenues than needed to pay
ongoing costs plus debt service. This cushion amount is called
"coverage". The lower the amount of excess net revenues there are after
paying debt service,the less credit worthy the credit markets consider the
revenue bonds.
Credit Rating Interest rates on bonds vary according to the"credit rating"of the issuing
agency. If net revenues are just sufficient to pay the debt service, this is
called a 1 times debt service coverage. Debt service coverage ratios are
tied directly to ratings: the higher the coverage ratio,the higher the credit
rating and the lower the interest rate. Tigard revenue bonds are aimed at
earning an "A" rating. Ratings are based on a number of factors, with
coverage a main feature. Tigard's current financial forecast calls for a
m;n;mum coverage of 1.15 times debt service.
Other Utilities Larger water utilities typically have ongoing capital construction
programs. This portion of their budgets is not considered operating
revenue and therefore adds to the coverage. In Tigard's situation, the
projected Partnership project costs dwarf Tigard's other capital spending
so other construction does not contribute a meaningful amount to
coverage. Financing costs must be repaid almost entirely by new
revenues.
Size and Timing The size and timing of bond sales is driven by capital costs and the need
to have money in time to pay for construction. Higher rates need to be
in place at the time the long-term bonds are issued.
Reserve Fund Tigard must also hold in reserve at least one full year's debt service as a
backup security — known as a "debt service reserve fund". The reserve
fund ensures that money is available in case of a debt default. This
reserve can be used to make the final payments on the bonds.
Cost Savings A goal of Tigard's Financial Plan is to recommend the bond issuance
strategy that assures the best long-term savings for customers. This
requires a balance between bond structures, higher credit rating (lower
interest cost),and higher coverage (higher user rates in early years).
Learn More
For more information on the Tigard Water Financial Plan contact John Goodrich, Utility Division Manager
at 503-718-2609 orjohngCO3tigard-or.gox- or visit uww.l gird-or."yhwater
.
21Paue
City of Tigard
13125 SW Hall Blvd.
Tigard, OR 97223 i
Phone: 503-639-4171
i
FAX TRANSMITTAL
Date October 6,2010
Number of pages including cover sheet 3
To-
WThe City of King City (Fax No. 503-639-3771)
The City of Durham (Fax No. 503-598-8595)
From: Kathy Mollusky
Co: City of Tigard
Fax#: 503-684-8840
Ph#: 503-718-2594
SUBJECT: Intergovernmental Water Board Meeting Notice and Agenda
MESSAGE:
Please post the attached notice and agenda for the upcoming meeting of the Intergovernmental Water
Board.
Thank you.
I\ENGTax.00r
t
TRANSMISSION VERIFICATION REPORT
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SER.# 000L9N215453
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TRANSMISSION VERIFICATION REPORT
TIME 10106/2010 13:48
NAME COT-PW
FAX 5036848840
TEL 5036848840
SER. # 000L9N215453
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