11/12/2014 - Packet Completeness Review
for Boards, Commissions
and Committee Records
CITY OF TIGARD
Intergovermental Water Board
Name of Board, Commission or Committee
11/12/2014
Date of Meeting
I have verified these documents are a complete copy of the official record.
Judy Lawhead
Print Name
Si azure
12/23/2015
Date
Intergovernmental Water Board Agenda
SERVING TIGARD,KING CITY,DURHAM AND TIGARD WATER DISTRICT
MEETING DATE: Wednesday, November 12, 2014, 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
2. Approval of Minutes — October 8, 2014
Action: Motion to approve the October 8, 2014, minutes.
3. Public Comments
Call for comments from the public.
4. Water Supply Update—John Goodrich
No action required.
5. Presentation of 2014 Water Study Results—Joe Healy, HDR
Action: Motion to recommend the Tigard City Council regarding water rates.
6. Informational Items
7. Non-Agenda Items
Call for non-agenda items from the board.
8. Next Meeting
December 10, 2014, at 5:30 p.m.
8777 SW Burnham Street,Tigard, Oregon
9. Adjournment
Action: Motion for adjournment.
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—November 125 2014
City of Tigard 1 13125 SW Hall Blvd.,Tigard,OR 97223 1 503-718-2591 1 www.tigard-or.gov I Page 1 of 2
The City of Tigard tries to make all reasonable modifications to ensure that people with disabilities have an equal
opportunity to participate in all city meetings.
Upon request,the city will do its best to arrange for the following services/equipment:
■ Assistive listening devices.
■ Qualified sign language interpreters.
■ Qualified bilingual interpreters.
Because the city may need to hire outside service providers or arrange for specialized equipment,those requesting
services/equipment should do so as far in advance as possible,but no later than 3 city work days prior to the meeting.
To make a request,call 503-718-2591 (voice) or 503-684-2772 (TDD -Telecommunications Devices for the Dea�.
INTERGOVERNMENTAL WATER BOARD AGENDA—November 12, 2014
City of Tigard 1 13125 SW Hall Blvd.,Tigard, OR 97223 ( 503-718-2591 1 www.tigard-or.gov I Page 2 of 2
Intergovernmental Water Board J") Minutes
SERVING TIGARD,KING CITY,DURHAM AND TIGARD WATER DISTRICT
MEETING DATE: Wednesday, November 12, 2014, 5:30 p.m.
MEETING LOCATION: Tigard Public Works Building
8777 SW Burnham Street
Tigard, OR 97223
Members Present:
Ken Henschel Representing the Tigard Water District (TWD)
Keith Jehnke Representing the City of Durham
Jodie Inman Member-At-Large
Note: King City representative David Newham resigned from the board in July 2014. The King City City
Manager will notify Tigard staff when a new representative is appointed.
Members Absent:
Gretchen Buehner Representing the City of Tigard
City of Tigard Staff Present:
John Goodrich Interim Assistant Public Works Director
Toby LaFrance Finance Director
Judy Lawhead IWB Recorder
Visitors:
David Wells, King City City Manager
1. Call to Order, Roll Call and Introductions
Commissioner Henschel called the meeting to order at 5:35 p.m.
2. Approval of Minutes —October 8,2014
Commissioner Inman moved to approve the October 8,2014,minutes.
Commissioner Jehnke seconded the motion. The motion passed by unanimous vote of
the commissioners present,with Commissioners Henschel,Jehnke, and Inman
voting yes.
3. Public Comments
There were no comments from the public.
4. Water Supply Update
Mr. Goodrich reported:
• Average water use for the month of October was 4.6 million gallons per day
(mgd). This was about .14 mgd less than the 10-year average and .43 mgd more
than was used during October 2013.
• Due to current lack of demand, no water is being pumped from aquifer storage
and recovery (ASR) wells. Currently water obtained from Portland Water Bureau
is sufficient to meet daily system demands.
• ASR well no. 1 produced 102 million gallons (mg) of native groundwater this
year. ASR well no. 2 has 66 mg remaining in storage; and 75 mg was recovered
during this water cycle.
• Staff will begin the injection cycle for ASR well no. 2 sometime in December or
January.
5. Presentation of 2014 Water Study Results
Joe Healy, Senior Financial Analyst with HDR,gave a presentation that summarized
future water rate revenue requirements. A copy of the presentation is on file in the IWB
meeting record. The study results offered these two scenarios for consideration:
• A smoothed rate option would minimize short-term rate impacts.
• A one-time rate hike would be a larger rate adjustment in 2015,while holding
future annual rate adjustments to 2 percent or less.
Commissioner Henschel asked for an explanation of franchise fees. Toby LaFrance
gave a basic explanation and said that, due to the complexity of the subject, a more
detailed answer can be given at a future meeting.
After discussion of the two water rate increase options presented,it was determined
that individual jurisdictions will need to present the study results to their constituents
before giving a recommendation.
6. Informational Items
Mr. Goodrich reported:
• The pipe pullback into the tunnel under the Willamette River, using 250 foot
lengths of welded pipe,was completed two weeks ago. What was expected to
take 24 hours actually took approximately 12 hours.
• The Waluga Reservoir walls have been formed up in preparation for the concrete
pour.
• Underground pipe work has begun at the Bonita Pump Station and forms are up
and ready for concrete.
7. Non-Agenda Items
There were no non-agenda items.
8. Next Meeting
December 10, 2014, at 5:30 p.m.
Public Works Auditorium, 8777 SW Burnham Street,Tigard, Oregon
9. Adjournment
At 6:48 p.m. Commissioner Inman moved to adjourn the meeting. Commissioner Jehnke
seconded the motion. The meeting adjourned by unanimous vote of the commissioners
present,with Commissioners Henschel,Jehnke, and Inman voting yes.
r
4G �c'hen Buehner, IWB hair Judy' Law ea , I" Recorder
Date: f./ r Date:
Submitted at the IWB Meeting 11/13/2014
By: _ �)
Date: Agenda Item No.:
KEY OBJECTIVES
• Determine water rate revenue
adjustments necessary to meet future
revenue requirements
• Adequately and properly fund capital
infrastructure projects
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FUTURE REVENUE REQUIREMENTS INCLUDE SIZEABLE
CAPITAL-RELATED EXPENDITURES
Year CIP Costs*
FY2015 $75.6 •. • Water •
FY2016 25.7
FY2017 2.1
FY2018 2.1
FY2019 6.8
ASR '
FY2020 6.6
Pipeline: 1 Zone to 530 Zone
FY2021 6.9Cach Reservoir and -
FY2022 0.9
FY2023 0.9 _
FY2024 1.0
*Note:Projected costs include escalation.
FINANCIAL PLANNING IS A
"CASH-FLOW" APPROACH
• Over time, revenue must be equal to
or greater than the utility's costs
+0&M Expenses +Total Capital Projects
+Transfer Payments —Bond Proceeds (Revenue Bonds)
+ Debt Service (P&I) —Grants
+ Rate-Funded Capital Projects —Customer Contributions (e.g. SDCsJ
=Total Revenue Requirements = Capital Projects Funded from Rates
—Miscellaneous Revenues
= Balance Required from Rates
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11/13/2014
Con � Long-term Cash and
Financing
Option s debt reserves
Lower, Send price Avoid rate
Smoother signals shock
Rate Changes
�Gt•nf lflper �� Ca�ration Xmxia fhana& Rin�B FNm ��� Y1Yrtrri� 01�
We1p�ncW Wn. Malaeer Mertaye� Dnyay Nrvgation Seem R I �r MG ❑�
Rate Adjustments&Typical Bill Impacts ... Reserve Funds Pm)"hon
6% 51U
5% ... _ 56. _
e`4% SSU
.% 50 91 — —
2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2015 2016 2017 2018 2019 2020 2021 2022 2023 2924
true M1 _,Y."a+ clwxe.r ®MF..te——r.a
CIP and Financing Debt Service and Coverage "'in°
$80 — --- 512.. - 20
$20 _ 510.0 1 e
F 16
560
$50 _ 58.0
y— lA
E 1.2
$4U — b' 56.0 — 10
5 530 a 54.0 .. - 06 �'
110 $2.0
510 - — --- o:
0,0
2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024
a�F��eac to®u�F,b.d cm omdi:� �,w.��ue xe�.� aaa�oea sa are �.sc o- r�Fe ce..:�:,
ANALYSIS USING HDR'S FINANCIAL PLANNING MODEL
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PRELIMINARY CONCLUSION
• HDR analyzed the City's data and developed
scenarios with City staff.
• Two scenarios are up for consideration:
o Smoothed Rate Impact
o One-Time Rate Hike in 2015
• Either scenario will meet the City's revenue
requirements, target reserve levels, and
financial benchmarks.
01
REVIEWED TWO RATE FORECAST OPTIONS
1. Smoothed Rate Impact — An analysis to
identify optimal amounts of new debt and
rates to pay for projects while minimizing
short-term rate impacts.
2. np-T mp Rptp Hike in 901 — A financial
forecast given a large rate adjustment in
2015, while holding future annual rate
adjustments to 2% or less.
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SUMMARY OF • SMOOTHED RATES
Rate Adjustments&typical Bill Impacts
Fiscal Year Ending
IDescription
iz% 560
c
n
T
C
0% $0
2015 2016 2017 2018 2019
�Ra�Adf. —•—Typical Bill
Current115 2016 201712019
Rate Adj. 5.30°/ 5.30°/ 5.30°/ 2.00% 2.00%
SUMMARY
Monthly Bill $45.92 $48.35 $50.91 $53.61 $54.68 $55.77
$illlnarease 2.43 2.56 2.70 1.07 1.09
OF •
Rate Adjustments&typical Bill Impacts
Fiscal Year Ending
10% - — • $50
c
N
m
a
296 $la
o% So
2015 2016 2017 2016 2019
�Rate AdJ. —•—Typical BRI
Dewri pti on Current 20151 117 2018 2019
Rate Adj. 10.50% 2.00%
NW. �
.00% 2.3.86 $541.06 1.08
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11/13/2014
PROJECTED
Reserve Funds Projection
$so
N
C
$10 /
2015 2016 2017 2018 2019
i"—d Water Fund ®CIP Fund ®DS Fund �SDC �Min.Reserves �Min.Water Fund
Debt Service and Coverage
$12.0 2.0
$10.0 1.8
c 1.6
................. ......... .......... 1.4 2
E $8.0 1.2 m
C',
c $6.0 1.0 m
0.8
$4.0 - -- - — 0.6
u°
< $2.0 - - 0.2
$0.0 - 0.0
2015 2016 2017 2018 2019
�Deht$ervice DSC ....0...Target Coverage
6
11/13/2014
7