Loading...
06/09/2004 - Packet Intergovernmental Water oar Serving Tigard, King City, Durham and Unincorporated Area MEETING NOTICE Wednesday, June 9, 2004 5:30 p.m. City of Tigard Vater Auditorium 8777 SW Burnham Tigard, Oregon 97223 Intergovernmental Water Board Meeting Serving Tigard, King City, Durham and Unincorporated Area AGENDA Wednesday, June 9, 2004 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—May 12,2004 Motion from Board for minute approval. 3. Filtration of Fluoride Discussion—Dennis Koellermeier(10 minutes) 4. Discussion of Portland Wholesale Contract—Dennis Koellermeier(20 minutes) 5. 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,\Board. 8. Next Meeting-Joint Meeting with City Council- Wednesday,July 20,2004, 6:30 p.m.—Town Hall 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), 69&(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 may be 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 MinutesAVotes May 12, 2004 Members Present: Norm Penner, Brian Moore, Bill Scheiderich, and Dick Winn Members Absent. Patrick Carroll—excused Staff Present: Brian Rager, Richard Sattler, and Twila Willson Visitors: Ken Henschel, Sandy Henschel, Beverly Froude, and Roel Lundquist 1. Call to Order Commissioner Bill Scheiderich called the meeting to order at 5:31 pm. Staff called roll and Commissioner Patrick Carroll was excused. 2; Approval of Minutes—March 10, 2004 Commissioner Brian Moore moved to approve the minutes, Commissioner Dick Winn seconded the motion, and the board voted unanimously to accept the minutes as presented for the March 10, 2004, Intergovernmental Water Board Meeting. 3.. At-Large Member Applications— Twila Willson Copies of the applications from parties interested in the At-Large Appointment were previously distributed to the board for review. Brian Rager stated he had talked with Commissioner Patrick Carroll prior to the meeting and was asked to inform the board that his desire was to retain Bill Scheiderich as the At-Large Member. Following review and discussion, Commissioner Moore moved to accept Bill Scheiderich as.the At-Large Member, Commissioner Winn seconded the motion and the vote was unanimous (Bill Scheiderich abstained from voting). It was also decided that Commissioner Scheiderich would continue to serve as the chairman of the board for the remainder of the year. 4. Budget CIP Presentation—Brian Rager Mr. Rager distributed a CIP spreadsheet information packet for review. (A copy of the packet information is included in the master file.) The board reviewed the information and made a request for staff to provide information at a future meeting about the total cost for the Raw Water Pipeline Pre-design Project with the:Joint Water Commission (JWC). Mr. Rager informed the board that there were several more budget meetings scheduled before a final approval of the CIP budget items. 5. Report on Current Water Situations-Rich Sattler& Brian Rager ■ Daily water demand averages 5.8 mgd Intergovernmental Water Board 1 May 12,2004 DRAFT COPY ■ Injection of the ASR wells continues through the end of May, with 150 mg as the targeted amount ■ Taking more Portland water in order to minimize the penalty fees with them ■ Sam Morrison,Water Operations Supervisor- his tapping team was contest winner and he will be participating in national contest in Orlando, Florida, next month ■ The City received an award from the AWWA for Excellence in Communication for the calendar • JWC—May 17 Beaverton will be turning on fluoride in their system, which will mean a portions of Tigard's water system will be receiving some fluoridated water ■ Tigard will be taking samples throughout the system area to determine the percentages of fluoride within our service system ■ Water testing is performed at various sample stations (80 locations) and processed by a test laboratory to ensure that State requirements are met ■ ASR Well#2 at the 10mg site—drillers will complete reaming tomorrow then begin preparing another site for future drilling 6. Informational Items The informational material was mailed with the meeting packet and there were no additional informational items. 7. Public Comments Sandy Henschel addressed the board and read a letter addressed to Richard Sattler, dated April 16, 2004, regarding health issues with fluoridated water. (A copy of the letter is included in the master file.) She is requesting that the City of Tigard consider paying for a filter that would provide reverse osmosis to remove fluoride from her drinking water. Commissioner Moore instructed staff to investigate the issue, research other districts/agencies about how they have handled similar problems, equipment options, bottled water, and contact the City's attomey. Mr. Ken Henschel reported finding that the reservoir gates at Hi-Tor Reservoir had been pried or left open on several occasions and healso has seen the gate open at the Canterbury site late at night. He called the police on those occasions; however, as a citizen he is concerned about the security of the water sites as well as the public's safety. Richard Sattler said he would get more information from Mr. Henschel to investigate. 8. Non Agenda Items 9. Next meeting date—Wednesday, June 9, 2004, at 5:30 p.m. — Water Auditorium Commissioner Penner will be absent at that meeting, but will arrange for the altemate to attend. 10. Adjournment The meeting concluded at 6:10 p.m. Intergovernmental Water Board 2 May 12,2004 DRAFT COPY MEMORANDUM CITY OF TIGARD, OREGON DATE: June 7, 2004 TO: Intergovernmental Water Board TP FROM: Brian Rager, Public Works Engineering Manager '�`—�' RE: Citizen Request: Filtration of Fluoride At the May 12, 2004 IWB meeting, Mr. and Mrs. Henshel presented a letter proposing that the City should pay for a special filtration system for their home, due to Mrs. Henshel's medical sensitivity to fluoride in drinking water. Staff was asked to do two things: 1) ask our City Attorney about the City's obligations in this area; and 2) ask other water purveyors as to whether or not they have addressed these sorts of requests. I contacted Gary Firestone, from the City Attorney office, and gave him the details of the question. Gary indicated that the City does not have a legal obligation to provide "fluoride-free" water to their customers. He added that if the City were to consider such a request, it would open them up to other special requests from customers regarding other elements in the drinking water. Staff also made contact with Tualatin Valley Water District (TVWD) and the City of Salem, both of which have provided fluoride in their drinking water for many years. Both water purveyors indicated that they treat customers with adverse reactions to fluoride as any other customer who may have the potential of being adversely impacted by drinking water that meets federal and state standards. For instance, there are customers that are "immuno-compromised". The . responsibility of a water purveyor is to provide an adequate supply of water that meets or exceeds drinking water standards. Additional measures are taken to inform those customers who may be sensitive to the drinking water by way of articles in their respective Customer Confidence Reports (CCR's) and other information periodicals. Customers are informed that filters are available on the market which can adequately remove the fluoride. In the end, it is the customer's responsibility to determine if additional filtering measures are needed for their use, and they must pay for those additional measures. Staff Recommendation Based upon the input from the City Attorney and other local water purveyors, Staff recommends that the IWB deny the request from Mr. and Mrs. Henshel. i4angWanApuElk wwkWvvb(000M44wb-f "fitbrtolbmp.doo Intergovernmental Water Board Meeting Informational Items Supplement June 9, 2004 ■ Willamette River Water Quality—Fish Deformities in Newberg Pool— an invitation to attend the public meeting on Wednesday, June 30, 2004, 6:00-8:00 pm at Wilsonville Public Library ■ Email from the City of Wilsonville regarding the Upcoming Public Forum: Fish Deformities in Newberg Pool, dated 5/20/04 ■ Email from Amanda Rich, Westem Advocates Inc., regarding Media coverage on the Wilsonville Plant, dated 5/21/04 ■ Memo dated 5/13/04, from the City of Portland, Bureau of Water Works, 2004 Seasonal Water Supply Augmentation and Contingency Plan . Fishing For Answers On WILLAMETTE RIVER WATERQUALITY .. 1, -2 61,'l",,,",-,.".,��:���",:,,,,.,,���",:"I r 1 The discovery of deformed fish in a stretch of the Columbia Willamette River called the Newberg Pool has River Poi tIand been of concern to local residents since 1992. Tigard0 Come to a public meeting where scientists TUalatln O Wilsonville Oregon City from Oregon State University will present new C, 0 Area of scientific findings to unravel the mystery of concern Newberg Pool and will discuss priorities for Willamette n River Willamette River water quality that affects us all. Fish Deformities .1 ,' 1 1 _ • New findings • 1' tth O /"�,�, s.•®�1'c py B_...i ate. `/ - O.S.P®STAG[V New a itA�.2J'14� a directions 1 ' . 0 .3 7 a a V New information on water pottutants0 R 9 EL p a �s Wednesday June 30, 2004 Marine &Freshwatef Biomedical Sciences Center Oregon State University 6:00 —8:00 p.m. 435 Weniger Hall Corvallis, OR 9733i-6503 Wilsonville Public Library 82oo Southwest Wilsonville'Rd. *beverages and hors d'oeuvres included City of Tigard 13125 SW Hall Blvd. • Tigard, OR 97223 The mission of the Marine and Freshwater Biomedical Sciences Center at Oregon State University is to provide expertise and facilities for research and training in the use of aquatic models to address important issues in.human toxicology and environmental health. Register online at littp://www.science.or,, -.--('c,1:ifbsc 1,0.11 ALI Page 1 of 3 Twila Willson - Upcoming Public Forum: Fish Deformities in Newberg Pool MM From: <bauman@ci.wilsonville.or.us> To: <rpb@tvwd.org>, <druax@pearsonfinancial.com>, <brian_moore@pgn.com>, <rdrake@ci.beaverton.or.us>, <gkerr@crwater.com>, <cafferty@ci.gresham.or.us>, <michael.w:grimm@state.or.us>; <mclains@metro.dst.or.us>, <hostickac@metro.dst.or.us>, <dsalzman@ci.portland.or.us>, <lews@teleport.com>, <deenafgcc@aol.com>, <glad@spiritone.com>, <wwcrandall@aol.com>, <lancasterl@ci.milwaukie.or.us>, <jhuffmanpdx@hotmail.com>, <dallen3622@aol.com>, <benny@beautifulbuildings.com> Date: 5/20/2004 5:11 PM Subject: Upcoming Public Forum: Fish Deformities in Newberg Pool CC: <greg@tvwd.org>, <mmckillip@ci.tualatin.or.us>, <dennis@ci.tigard.or.us>, <dwinship@ci.beaverton.or.us>, <gdrechsler@crwater.com>, <dkessier@water.ci.portland.or.us>, <Istickel@water.ci.portland.or.us>, <davidgilbey@pvrwd.com>, <hbarnes@rwpud.org>, <cochranb@ci.fairview.or.us>, <rfoster@ci.forest-grove.or.us>, <partch@ci.glad stone.or.us>, <jutila@ci.gresham.or.us>, <kevinha@ci.hillsboro.or.us>, <jarnold@wswd.org>, <jkomarek@ci.oswego.or.us>, <deffebach c@ metro.dst.or.us>, <shireyp@ci.milwaukie.or.us>, <danb@gwest.net>, <mwalker@ci.sandy.or.us>, <raleighwater@eschelon.com>, <johnc@sfwb.com>, <jthomas@sunrisewater.com> As you may have heard, researchers at Oregon State University have determined that parasites are the cause of the unexpectedly high incidence of fish deformities in the Willamette River. The OSU researchers will be presenting their findings at a public forum the evening of June 30th. You and/or your colleagues are welcome to attend. Prior to this forum, I will be leading a tour of the Willamette water treatment plant here in Wilsonville. If you would Pike to join me on the tour, please RSVP. Jeff Bauman Public Works Director City of Wilsonville P.S. The following announcement is being released by the OSU team. Heads Up! Please mark your calendars for the upcoming forum in Wilsonville on June 30, 2004..The web site will be up shortly. Please pass this information on to those that may be interested. file://C:\Documents%20aind%20Settings\twila\Local%20Settings\Temp\GW)00002.HTM 5/24/2004 Fishing For Answers On r {`3 WILLAR+tE�TE' RIVERS si ," R" AM NA E l;:1ar=t F,€:Pi,cal!--c the Newberg Pool Iias been os coct(*Nn to ie-a!rsidernts since-99-2 Conqe to s ptibfic meeting where.scientists from Oregon State Ur:iv,Frsity will c+res-ent i,F,Fw 5cita tiji::ftM'r;gs to unravel the m)story of Neecberg Poo'.and v:i[l discuss rdariti=_s For Willamette R;VerWater quality that affects rrs«ii. A Colurrrhia River Purilanr{f r,g=rrtrJ Tu.lat%n O Newbe'S 4{i':<_tmviL.. oregen:.ity rj ! _Area of —' Concern Willamette A River Fish Deformities in Newberg Pool ✓ New findings about fish health ✓ New directions for research ✓ New information on water pollutants fi.. You � rn , � ResisteronIineathttp:,jwwwscierce.oregonstate.edu{ntfbsc Or ca€l 741.737.8105 for more information. ' Page 3 of 3 Naomi Hirsch Community Outreach and Education Program Oregon State University Environmental Health Sciences Center Marine& Freshwater Biomedical Sciences Center 119 Weniger Hall I Corvallis, OR 97331 541-737-8105 1541-737-9023 FAX naomi.hirsch@oregonstate.edu web: http://science.oregonstate.edu/mfbsc file://C:\Documents%20and%20Settings\twila\Local%20Settings\Temp\GW}00002.HTM 5/24/2004 �. Media coverage Page 1 of 3 Twila Willson - FW: Media coverage on the Wilsonville Plant From: "Amanda Rich"<amanda@westernadvocates.com> To: "Todd Heidgerken" <toddh@tvwd.org>, "Burton Weast" <burton@westernadvocates.com>, "Ed Truax" <etruax@pearsonfinancial.com>, "Jay Harris" <jay@h-mc.com>, "Jim Doane" <thedoane@comcast.net>, "Jim Newton" <gnewton@canby.com>, "Keith Mays" <keithmays@comcast.net>, "'Ron Partch"' <rpartch@hotmail.com>, "'Amanda Rich"' <amanda@westemadvocates.com>, "'Brian Moore"' <Brian Moore@pgn.com>, "'Dennis Koellermeier"' <dennis@ci.tigard.or.us>, "'Dirk Borges"' <dborges@canbyutility.org>, "'John Hill II"' <johnmhllii@aol.com>, "'Jonathon Block"' <block@ci.gladstone.or.us>, "'Lee Weislogel"' <l.d.weislogel@comcast.net>, "'Lisa Melyan"' <lisa@tvwd.org>, "'Mike Date: 5/21/2004 8:58 AM Subject: FW:Media coverage on the Wilsonville Plant Please see below. Amanda E. Rich Western Advocates Incorporated 1284 Court Street NE Salem, Oregon 97301 503-378-0595 amanda@westemadvocates.com -----Original Message----- From:Todd Heidgerken [mailto:ToddH@tvwd.org] Sent: Friday, May 21, 2004 8:44 AM To: Burton Weast(E-mail); Amanda Rich (E-mail) Subject: FW: Media coverage FYI. The following is the transcript from a news story on Channel 8. Todd MOBA MEDIA Radio and Television Monitoring Services 1217 SW 19th Ave Portland OR 97205 Tel: 503 223-1677 Fax: 503 224-5580 E: info@mobamedia.com "Testing the Water" KGW-TV Channel 8 Portland 5/12/2004 18:05:11 NEWSCASTER TRACY BARRY: Well, it's an anniversary for people living in Wilsonville. They've been drinking water from the Willamette River for two,years now. This as scientists are about to complete a study on thousands of Willamette River fish that have crooked spines. NewsChannel 8's Bruce Sussman joins us with the in-depth report. Bruce? file://C:\Documents%20and%20Settings\twila\Local%20Settings\Tema\GWI00002.HTM 5/24/2004 Media coverage Page 2 of 3 f REPORTER: Well, Tracy, as you know, most of us in the Portland area drink water from Bull Run, which.is recognized as one of the purest sources of water in the country. Down below Sky 8, though, this treatment plant is said to make Wilsonville's water just as pure, even though it comes from the Willamette, and tests prove that. But critics say many questions about the safety of this water still remain unanswered. For some the Willamette is a place to play, for others it's a sight to see, but for people in Wilsonville, it's what comes out of the faucet thanks to a high-tech water treatment plant. From the river through the treatment plant into your house in a matter of hours. CHARLES SCOTT, PHD TOXICOLOGIST: Clear doesn't mean that its good. REPORTER: Toxicologist Charles Scott fought against Wilsonville's water plant. He continues to argue there are too many hidden dangers in the water coming out of his tap. SCOTT: The City of Wilsonville answered that by saying that this treatment plant is so great it will take out all of the knowns and all of the unknowns. Now, I'm a scientist. How can you take out an unknown if you don't know what the unknown is? JEFF BAUMAN, WILSONVILLE DIRECTOR OF PUBLIC WORKS: We're actually walking on .top of the ozone disinfection tank. REPORTER: But Wilsonville's director of public works says the plant goes beyond using things like carbon, sand, and uses high-tech ozone to scrub the water. BAUMAN: We required that all of those chemical of potential concern be non-detectable, even though drinking Water allows for a trace of this or a trace of that. We require that it be non- detectable all the time. REPORTER: He says that means drinking water from the Willamette is as safe as that from Bull Run. But what about all of those deformed fish in the river? Near Corvallis, 15 percent of fish have deformities, but in the Newberg Pool, closer to Wilsonville, 74 percent of fish are deformed even though water conditions in both places are the same. That sparked a two and a half year study where researchers collected 15,000 fish and thousands of water samples. Dr. Lary Curtis, of Oregon State University led the study, and he says parasites, not chemicals, are responsible. DR. LARRY CURTIS, PHD, OR STATE UNIVERSITY: Of the fish in the Willamette River, about- that we've looked at, we can find direct association of a parasite with about 90 percent of the deformity. REPORTER: And back in Wilsonville, we're told parasites are nothing to worry about. BAUMAN: If for some bizarre reason one of those parasites did come in to the plant, our ozone disinfection process would kill it. REPORTER: But why are there so many parasites in the Newberg Pool upriver from Wilsonville's plant? Researchers have no idea. CURTIS: That's why I'm kind of hedging, because I don't want you to think that we have all answers because we don't.. But we do know a lot more than we knew two and a half years file://C:\Documents%20and%20Settings\twila\Local%20Settings\Temv\GWt00002.HTM 5/24/2004 Media coverage Page 3 of 3 ago. REPORTER: Toxicologist Charles Scott will stick with bottled water because he still has too many questions about drinking from the Willamette. SCOTT: They only look at 83 to 87 chemicals, and there is thousands of them. REPORTER: Dangerous chemicals he fears are hidden in these waters. Now, live from Sky 8, the city maintains the water from this plant is safe for everyone. But researchers are still recommending further study on water quality issues and the Willamette River. Back to you. NEWSCASTER JOE DONLON: Very interesting,.Bruce Sussman, live in Sky 8. Thanks. ************************** Speaker interjections not contributing to context may have been excluded from this transcription. ©Material supplied by Moba Media may be used for internal review, analysis or research only. Any editing, reproduction, publication, rebroadcast, public showing or public display is forbidden and is prohibited by the copyright laws. file://C:\Documents%20and%20Settings\twila\Local%20Settings\Temp\GW}00002.HTM 5/24/2004 Page 2 of 2 May 13,2004 TO: Interested Stakeholder FROM: Mark Knudson and Yone Akagi SUBIECT: DRAFT 2004 Seasonal Water Supply Augmentation and Contingency Plan Enclosed is the Draft 2004 summer supply plan,otherwise known as the Seasonal Water Supply Augmentation and Contingency Plan. This draft plan is being sent to you and to a list of about 120 other stakeholders for review. We welcome your questions and comments on the draft plan. Please return your questions and comments to Yone Akagi(1900 N Interstate Avenue, Portland OR 97227 or yakagi@water.ci.por0and.or.us)by Friday,May 28th. We anticipate revising the plan based on your input and then briefing City Council on the plan in June. Highlights of the Draft 2004 Plan include the following: * The Bull Run reservoirs are nearly full. * * We expect to have adequate baseline supplies to meet water demand, even in a warm-dry summer. * * Baseline primary water supplies include water conservation,Bull Run (stored water and streamflow),and offloads to wholesale customers * * Baseline augmentation resources include groundwater and Bull Run Lake(increment#1). * Water conservation will be a key component of effective water supply management. The Water Bureau will be Implementing a variety of wise water use programs,many of which are in collaboration with the Regional Water Providers Consortium. * * The Bureau is testing two Aquifer Storage and Recovery(ASR)wells and anticipates that the pilot test will include delivering water to the Portland supply system where it will be blended at a low blend ratio(5-8%) with routine Bull Run supply and/or supply from other wells for approximately three to four weeks this summer.For more information on the ASR pilot,please see page 9 of the plan. * Flow releases for fish will continue in 2004. Federal law requires protection of steelhead and chinook. The.amount released from storage for fish will vary depending on the weather. Key factors in decision making include steelhead spawning in the spring,water temperatures during the summer,and chinook spawning in the fall. Thank you for your interest in the City of Portland's Seasonal Water Supply Augmentation and Contingency Plan. NOTE:If you no longer want to receive a draft copy of the summer supply plan in the future,please contact Yone Akagi so your name can be taken off the distribution list. «2004 SSP External Review Draft 5-12-04.doc>> «DD Curve 05-06-04.doc>> file:HC:\Documents%20and%2OSettings\twila\Local%2OSettings\Temp\GW}00002.14TM 5/24/2004 2004 SEASONAL WATER SUPPLY AUGMENTATION AND CONTINGENCY PLAN CITY OF PORTLAND BUREAU OF WATER WORKS EXTERNAL REVIEW.DRAFT MAY 12,2004 1. OVERVIEW The Portland Bureau of Water Works(Bureau)has prepared seasonal water supply augmentation and contingency plans,more commonly known as the summer supply plan,each year following the 1992 summer supply season. The plan provides a comprehensive strategy for augmenting the Bureau's baseline water resources if needed during the peak demand season. An interdisciplinary team of Bureau staff,with input from wholesale customer representatives,has prepared the plan based on up-to-date supply and demand information,analysis of resource options, and policy direction from the Portland City Council. The summer supply strategy is designed to make best use of existing resources to meet multiple objectives. Key objectives include water supply reliability, water quality,water use efficiency,fish recovery,and cost management. During summer 2004,the Water Bureau expects that sufficient water will be available to meet the range of potential supply and demand conditions that could occur in the Portland water system.The Bureau will continue to focus on water conservation and conjunctive use of the Bull Run and Columbia South Shore groundwater supplies to meet peak season water demands. The Bureau will also continue flow releases into the Bull Run River to enhance fish habitat and lower water temperatures. As the summer proceeds,the Bureau will coordinate with key stakeholders and customers to ensure that interested parties can stay apprised of supply and demand conditions as they unfold. The following report outlines the Bureau's plan for managing water supplies during the 2004 peak season. The Bureau will circulate this draft plan to a set of internal and external stakeholders for review and comment. Stakeholders include the Water Managers' Advisory Board,regulatory agencies, large water users,and environmental organizations. 2. ASSESSMENT OF PEAK SEASON DEMAND AND SUPPLY RESOURCES In late winter and early spring of each year,the Bureau evaluates information-available about the upcoming summer peak demand season. The Bureau monitors precipitation, snowpack, and streamflow. The Bureau also assesses current and projected water demands. The population supplied by the City's water system during the 2004 peak season will be approximately 857,600 (including retail and wholesale customers,those who receive only part of their supply from the Bureau,and accounting for wholesale customer off-loads). In an average weather year,the Bureau estimates that peak season(122 days)daily average water demand would be about 138 million gallons per day (MGD). Drawdown Scenario Anal To evaluate the potential supply needs for a specific summer season,the Bureau uses a modeling tool that generates graphs like those depicted in Figure 1. This tool combines a physically-based precipitation-runoff model(that projects reservoir inflows)with an econometric regression model (that estimates system demands).This analysis takes into account weather forecasts(3.0-and 90- day),population estimates, and historical information on supply,climate, and demand. Figure 1 1 incorporates a current 90-day weather forecast,early May through early August 2004,but relies on historic climatological information to predict when reservoir refill might occur. As the 2004 summer season proceeds,actual weather and water supply/demand information will be collected and new weather forecasts will be evaluated. This information will be used to update the drawdown graph depicted in Figure 1 twice a month throughout the peak season.The Bureau uses these updated versions of Figure 1 to make operational decisions(e.g.,when and how to add supply from baseline or contingency resources). The vertical axis in Figure 1 is the volume of supply. The horizontal axis is time(by month over the course of the calendar year). The Bull Run Reservoir Storage Depletion Line shows the point at which usable storage in the two reservoirs equals zero. The distance of a plotted line above the Depletion Line indicates the amount of routine usable storage in the Bull Run reservoirs(9.9 billion gallons when the reservoirs are full).The distance of a plotted line below the-Depletion Line represents the amount of water(or demand reduction including curtailment)that would be needed to augment the Bull Run supply to meet peak season demand. By showing three possible scenarios,Figure 1 illustrates the uncertainty of the various forecasts. The middle line shows the"Median"or most likely situation based on historical data,current year projections of demand and weather forecasts. The Cool-Wet scenario line depicts how much water would be needed if the summer were unusually wet and cool. The Warm-Dry scenario line shows how much water would be needed if the summer is unusually dry and hot. There is about a 90 percent chance that 2004 summer conditions will be within the range defined by the Cool-Wet scenario line and the Warm-Dry scenario line. Early in the year,the beginning of refill maybe six months or more in the future,during which time many possible weather patterns may occur. As a result,early forecasts show the three lines diverging widely to encompass this wide range of possibilities. As time goes on,the three forecast scenarios are constrained more and more by conditions that have actually occurred.Thus,as the interval from the forecast until the expected beginning of refill grows shorter,the three forecast lines converge on the line that shows what actually happens;the lines come closer together as the summer and fall progress. The current Warm-Dry scenario shown in Figure 1 reflects the potential for needing 7.5 (BG)from the augmentation resources in addition to the supply available in the two Bull Run reservoirs. The current Median,or most likely, scenario indicates that no supply augmentation would be needed. Resources available to meet possible needs are described in Section 3. The Bureau's reservoir drawdown forecasts(as shown in Figure 1)include continued test flow releases from the Bull Run reservoirs into the lower Bull Run River. Released water helps reduce water temperatures in the lower river and maintain wetted habitat for spawning and rearing of steelhead and chinook. These fish species are listed as threatened under the federal Endangered Species Act(ESA),and federal rules prohibit harm. The volume of the downstream release during drawdown,shown in Figure 1,ranges from 2.2 BG for the Cool-Wet forecast to 5.0 BG for the Warm-Dry forecast,with 4.7 BG for the most likely(Median)scenario. Flow releases during this summer's drawdown period will range from 25 to 40 cubic feet per second of water,which is equivalent to 15 to 25 million gallons of water per day. Releases will change to respond to dynamic conditions(e.g.,air and water temperature,precipitation,and actual spawning behavior). Water system operation decisions will consider the following key factors: steelhead spawning and reservoir filling in the spring;reservoir drawdown,water temperature(especially as regulated by the federal Clean Water Act),and groundwater operation during the summer months; and chinook spawning and reservoir refill forecasting in the fall. 2 Usable Storage in Bull Run 2004 Drawdown With No Supply Augmentation Reservoirs (BGaQ As of May 6 10 8 Actual Storage (bold) Cool-Wet Scenario 6 Drawdown Starts 12-Jul Ends 19-Sep (+5.5 BG) 4 Median Scenario Drawdown Starts 19-Jun 2 Ends 9-Oct +0.4 BG 0 Bull Run Reservoir Storage Depletion Line -2 Warm-Dry Scenario Drawdown Starts 27-May Ends 9-Nov -4 (-7.5 BG) -6 -8 1-Jan 4-Feb 1-Mar 1-Apr 1 41a 1-Jun 1-Jul 1-Aug 1-Sep 1-Oct 1-Nov 4-Dec 1-Jan Figure 1 . J 3. 2004 BASELINE AND SEASONAL CONTINGENCY RESOURCES The following section of this report outlines the baseline and contingency resources available to help the Bureau meet peak season demand in 2004. Available resources are shown in Table 1. This table reflects conservative assumptions to ensure that the Bureau can manage even extreme supply shortage situations. For example,the estimated duration of the drawdown period shown in Table 1 is 151 days. Based on historic information,this is a conservative estimate because the drawdown period should be shorter than 151 days in about 95 percent of the years. In addition,the hypothetical drawdown date shown in the table is June 1,which is approximately one month earlier than the usual drawdown date. Drawdown has occurred as early as June 1 in only 13 percent of past years. Although last year drawdown began on June 3,the second earliest start of drawdown since both Bull Run Reservoirs have been in operation.For planning purposes,the summer supply plan uses June 1 -Oct 29 (151 days)for the potential duration of drawdown.Actual drawdown and refill vary each year.In 2003,drawdown lasted 130 days. "Baseline Primary Resources"include ongoing water conservation,Bull Run reservoirs and streamflow,and wholesale demand offloads. `Baseline Augmentation Resources"include the Columbia South Shore wells and the first increment of Bull Run Lake. The Bureau manages these resources to meet water demand and to provide the multiple benefits described in Section 4. Based on current demand and supply projections,baseline and augmentation resources available for 2004 should be sufficient to meet peak season demand even in a hot,dry summer.In the case of the Warm-Dry scenario,the augmentation resources could easily make up the volume of water below the Bull Run Reservoir Storage Depletion Line.The resource options are described in this section. Bull Run streamflow and wholesale demand offloads are incorporated into the forecast shown in Figure 1. In a more extreme supply shortfall situation,contingency resources shown in Table 1 provide an added"cushion"of reliability for Portland water customers. 4 Table 1 Portland Water System Baseline,Augmentation, and Seasonal Contingency Resource Availability for Peak Season 2004 Baseline Primary Resources ■ Conservation Incorporated into demand Incorporated into demand Duration forecast forecast ■ Bull Run — Streamflow Incorporated into drawdown Incorporated into drawdown Duration forecast forecast — Res. 1 and 2 Variable 9.9 BG(useable storage) Duration • Wholesale demand offloads Incorporated into demand Incorporated into demand Duration forecast forecast Baseline Augmentation Resources ■ Columbia South Shore Wells* — Group A: 1,2,3,4,7,9, 51.1/45.9/40.8 MGD* 1.5/4.3/6.8 BG Duration 11, 12, 14, 15, 16,35,36,37 (30/90/151 days) (30/90/151 days) — Group B: 5,6, 8, 10, 13, 18, 42.2/38.0/33.8 MGD 1.3/3.5/5.6 BG Duration 19,26,29 (30/90/151 days) (30/90/151 days) ■ Bull Run Lake Increment#1 to 30 MGD 0.3—0.7 BG(depending on 10-23 days(not elevation 3,165 feet starting lake surface permitted to release prior elevation) to July 15) Contingency—Tier 1 ■ Clackamas River Water Intertie 4.5 MGD 0.7 BG Duration ■ Voluntary Curtailment 11 MGD 1.0 BG 8/1-10/29 ■ Bull Run Lake Increment#2 to 30 MGD 1.8 BG 60 days elevation 3,152 feet Contingency—Tier 2 ■ Columbia.South Shore Wells - Group C:Parkrose 2&3 5.2 MGD 0.8 BG Duration ■ Milwaukie Intertie(with portable 2.0 MGD 0.3 BG Duration pump) (less the 20 hottest days) ■ TVWD wells offload 2.0 MGD 0.3 BG Duration • Bull Run Lake Increment#3 to 30 MGD 1.1 BG 37 days elevation 3,143 feet ■ Mandatory Curtailment 36 MGD 2.1 BG 9/1-10/29 ■ Additional draft of Bull Run Unspecified Unspecified Unspecified Reservoirs 1 &2 below 9.9 BG usable storage *The first increment used from the well field will be water from the Aquifer Storage and Recovery pilot project. 5 A. Baseline Primary Resources Water savings from"naturally occurring conservation"and current conservation programs are embedded in the demand forecasts. (Naturally occurring conservation is the reduction in water use resulting from water-efficient plumbing fixture regulations.) Total water demand is about 19 percent lower relative to the current year,than it would have been if earlier demand trends had continued(the decreasing trend began in approximately 1985). The demand model attributes at least 8 percent of the decrease to naturally occurring conservation. The remainder is due to multiple factors including other conservation programs adopted by water providers,water rate changes to encourage conservation,and land use changes. The recent economic recession has caused an additional 9-10 percent decrease in water demand. The Water Bureau sponsors many conservation activities,both as an individual utility and as a member of the Regional Water Providers Consortium(RWPC). Bureau programs include those highlighted in the list below, as well as timed operation of the Benson Bubbler fountains. The Bureau's BIG program(Business,Industry and Government)also continues to work with large non-residential customers to reduce their overall water use. Program emphasis this year will be on testing weather based irrigation technology with several commercial sites around the City as well as continued site visits to customers requesting assistance with.managing their water consumption. Ongoing work with our targeted customer class—restaurants—will continue with another workshop and more outreach. Highlights of Consortium and Portland Water Bureau-sponsored conservation programs for spring and summer 2004 include: Consortium Programs ■ Summer media campaign targeting wise summer water use on TV and radio between June and August. The newlagline this year is`Be Water Smart," ■ Education/outreach(e.g., "As the Faucet Turns"game show for upper elementary, "Where's Rosie?"puppet show for early elementary(K—2)along with distribution of the Where's Rosie student activity books,Clean Water Festival, Salmon Festival,Yard Garden and Patio Show and other events as requested). Bookmarks will also be created and distributed during National Drinking Water Week as well as at other events and locations,e.g.,libraries and bookstores. ■ Continued distribution of a cartoon map of the water system aimed at upper-elementary school students. The map is complete with activities to help students learn about where their water comes from and how they can conserve water. ■ Enhancement of interactive youth education Web Page to Consortium's web site to include more information,games,virtual tours, and a CD Rom for schools. Purpose of the web page is to introduce students(ages 9—13)about water resources—i.e.: "where does my water come from and how does it get to me",through an educational, interactive and engaging web experience. ■ Continued distribution of"Plan a Lawn"brochure about maintaining a healthy lawn without wasting water. Continued distribution of"Creative Landscaping"brochures, the"Low Water—Use Plants"of the Portland metro area,and"Testing Your Soil" pamphlets. Developed a new"Irrigation Bill of Rights designed to offer information to 6 customers who are thinking about hiring an irrigation contractor to install an automatic irrigation system. ■ A series of three Water Conservation brochures was developed: 1)General RWPC Info Brochure and why water conservation is important; 2)Indoor Water Conservation Brochure,and 3)Outdoor Water Conservation Brochure. Brochures will be disseminated to the public via events,web kits,schools, and direct mail. ■ Updated user-friendly web page providing water conservation ideas and resources for consumers (www.conserveh2o.or ■ Continued partnership with the green industry(i.e.,landscape and nursery)to further educate their organizations about water supply issues as well as develop messages for our mutual customers about wise water use landscaping. Continued grant support opportunities to qualified applicants who successfully complete designated irrigation, sprinkler system and/or landscape classes.Participation in OLCA's(Oregon Landscape Contractor's Association)annual exposition with an information booth. Portland Programs Residential • Continued work with targeted low-income customers through the Bureau's demand management workshops. ■ Low-income toilet replacement program as an extension of the Water Bureau's low- income fixture repair program with Multnomah County. • A pilot project testing battery operated manual hose-bib timers will be underway this summer with top residential water users. ■ Partnering with Parks Bureau to establish a water-wise demonstration garden with state of the art irrigation equipment at the Beech Community Gardens. • Partnering with the Regional Water Providers Consortium,Portland Area Radio Council advertisements will run on njany different radio stations in August with a message geared toward efficient water use outdoors. ■ Summer bill staffers(June-August)with wise water use messages that complement the Consortium's messages as well as the radio ad messages. Portland is also participating in a number of community events including a peat pot planting events at the Office of Sustainable Development's Fix It Fairs in May and June,providing major sponsorship of the Children's Clean Water Festival in April,and other events throughout the summer. Business,Industry,and Government Programs Conservation staff are researching new weather-based irrigation systems for potential use in the Portland area in the near future. The Bureau is a partner in a national market transformation effort to educate customers about weather-based irrigation controls and other efficient irrigation technologies. 7 A workshop for restaurants on water efficiencies was held at Emanuel Hospital in February. Those who attended received free pre-rinse sprayers,which can reduce water(and power if hot water is used)use by several gallons an hour. Work will continue with this customer class throughout the year,with another workshop and informational brochure development. Staff continues to assist customers with water use questions,over the phone, analyzing consumption histories, and by conducting site visits and preparing water management plans. Water SuvMly Bull Run Streamflow Projected volumes are based on both weather and duration of the drawdown period. The forecast indicates the following range of streamflow amounts during drawdown: 7.2 BG over 70 days(Cool-Wet scenario), 11.0 BG over 113 days(Median or most likely scenario), and 10.4 BG over 167 days(Warm-Dry scenario). These volumes are accounted for in the curves shown on Figure 1. Bull Run Reservoirs 1 and 2 —9.9 BG usable storage Routine usable storage is defined as the amount available above 970 feet elevation for Reservoir 1 and above 840 feet elevation for Reservoir 2.The analysis supporting these levels is documented in a January 2002 memorandum titled:"Definition of Water Quality Based Threshold Elevations in the Bull Run Reservoirs and Resulting Conclusions about Volume Available for Water Supply." Other Water SMlies/Wholesale Demand Offloads Some of the City's wholesale providers have other resources available and increase use of these resources during the peak season. These"offloads"reduce the demand on Portland's system and are accounted for in the Bureau's demand forecasts. For 2004,the offloads are approximately 5 MGD for Powell Valley Road Water District and up to 19 MGD for Tualatin Valley Water District(an increase from previous years). B. Baseline Augmentation Resources Baseline augmentation resources are sources of supply that are readily available for use,but are not used on a routine,on-going basis.These include the Columbia South Shore Well Field and the first increment of Bull Run Lake. Columbia South Shore Well Field The Bureau is prepared,if needed,to supplement Bull Run surface water by pumping groundwater and blending it with the Bull Run supply. Pumping groundwater contributes to supply reliability,including meeting seasonal peak daily demands and/or making up seasonal supply deficits. If seasonal forecasting indicates a potential supply deficit,pumping groundwater early in the summer helps the Bureau maintain a desirable blend ratio. Maintaining this blend ratio minimizes impacts on water quality sensitive customers, aesthetic effects, and other customer inconveniences associated with water quality fluctuations in the system. 8 The Group A and B wells can provide up to 12.4 BG during the 2004 peak season. Operation of these wells involves balancing a number of factors including water demand, water quality,infrastructure capacity,and electric power cost. Group A wells have a slightly higher use priority because they are either located further from known contaminant sources and/or produce slightly higher quality water than the Group B wells.If groundwater is used for supplemental supply,the Bureau's working target is a blend of 30 percent groundwater to 70 percent Bull Run water. However,the projected or actual supply deficit,water demand, and the timing,magnitude, and duration of groundwater use all can affect the actual blend ratio. The total 151-day yield of the well field has been recalculated this year to better approximate reductions in the production rates of the wells during prolonged well field use,which results from groundwater pumping level declines and well interference effects. This time- dependent reduction in well field capacity was calculated in the following way. • from well field start-up to 30 days of pumping,it is assumed that 100 percent of the initial well capacities are available; • between 30 and 90 days of pumping,it is assumed that 90 percent of the initial well capacities are available;and • between 90 and 151 days of pumping,it is assumed that 80 percent of the initial well capacities are available. The Bureau prepares an annual well field pumping plan that describes current agreements with the Oregon Department of Environmental Quality and provides additional details about well field operation.No significant changes have been made since the 2003 pumping plan. Aquifer Storage and Recovery In 2004,the Bureau is testing two Aquifer Storage and Recovery(ASR)wells under its Limited License pilot testing permit issued by the State Water'Resources Department. The pilot project involves the injection of Bull Run water into the Sand and Gravel Aquifer for later extraction. Recharge of Bull Run water into the Sand and Gravel Aquifer using Wells 36 and 37 began on March 8,2004 and is expected to continue on and off through approximately mid-May. By the time recharge operations are completed, an estimated 200- 250 million gallons will have been injected, and up to 95%of this amount is planned to be withdrawn by operating the ASR wells in Summer 2004 under the terms of the Limited License. Operation of the wells may continue beyond this volume of water and would be considered groundwater withdrawal. Operation of the ASR pilot wells to recover Bull Run Water could occur any time following the start of Bull Run reservoir drawdown and before Fall 2004 refill. If approximately 200-250 million gallons are available,it is expected this volume would be withdrawn by the two ASR wells over an approximate three to four-week period. The combined pumping rate for the two ASR wells is 8-9 million gallons per day.Depending on supply operations,the tentative plan is that the wells would supply water to the system via the groundwater pump station where it will be blended at a low blend ratio (5-8%depending on daily demands)with routine Bull Run supply and/or supply from other wells. 9 • . v Bull Run Lake Increment#1 This increment is defined as the amount available between a lake surface elevation of 3,165 feet to the full pool elevation of 3,174 feet. When the lake refills to full pool in the spring (after snowmelt),the available amount is approximately 0.7 BG. Bull Run Lake was not used in 2003 and is currently just below full pool zone(3 172 feet elevation). The precise amount available for 2004 will depend on spring season snowmelt and precipitation. C. Seasonal Contingency Resources Two categories of contingency resources are presented in Table 1 and described below. Tier 1 contingency resources are simpler and less costly to use than Tier 2 contingency resources, and are thus assigned a higher priority for use. In an actual situation,the Bureau will consider operational issues,constraints,and opportunities existing at the time before selecting the appropriate combination of resources to meet identified needs. We do not expect to need contingency resources to meet water demands during 2004,but these resources will be available if necessary to meet unexpected circumstances. Tier 1 Contingency Resources "Tier 1"resources in past years included using system interconnections with other water utilities to add water to,or"off-load"demand from,the Bull Run system.The Clackamas River Water intertie can be used to serve a portion of Portland's customers up to 4.5 MGD. In a very hot and dry summer,it may be necessary and appropriate to ask customers to voluntarily reduce their water use. Issuing voluntary reduction messages informs customers of a water shortage situation. The Bureau can intensify its"wise water use"message to fit the circumstances. The Bureau estimates that about 1 BG of water savings could be obtained through voluntary reductions,however the amount of savings would vary depending on the timing and intensity of the messages. Because media messages are not limited b3Ntility service area boundaries,it is important to coordinate the delivery of curtailment messages with other Portland area water providers and stakeholders. Another important Tier 1 contingency resource is Bull Run Lake Increment#2. The Bureau can obtain about 1.8 BG by releasing water from the lake down to a surface elevation of 3,152 feet. Limiting the drawdown to 3,152 feet provides 90-95 percent chance that the lake will refill to 3,165 feet the following spring. The lake elevation is a key factor in the ability of cutthroat trout living in the lake to access tributary habitat for spawning. Tier 2-Contingency Resources The"menu"of Tier 2 Contingency Resources also includes a variety of options. Although Tier 2 resources are more complex and costly to use than Tier 1 resources,they provide critical flexibility to respond to an extreme supply shortage or emergency situation. Group C wells(Parkrose wells 2 and 3)could provide up to about 0.8 BG during the peak season. Using these wells poses water quality challenges that complicate system operation (see the 2004 annual pumping plan for more details). The Bureau has,however,successfully pumped these wells when winter season events have temporarily limited the availability of Bull Run water. 10 An intertie has been constructed between the City of Milwaukee's system and Portland's system,but is not currently functional because a pump has not been installed. With a portable pump,this intertie could provide about 2.0 MGD. TVWD has wells that can provide them with 2.0 MGD. Using Bull Run Lake Increment#3 would involve drawing the lake down to an elevation of 3,143 feet to provide about 1.1 BG of additional supply. Use of the lake to this level would trigger federal permit conditions requiring expensive mitigation measures to protect fish and wildlife habitat. The lake,if drawn to this level,would also likely take multiple years to refill;thus limiting its availability as a water supply. (Bull Run reservoirs refill every winter because they are relatively small impoundments in a large basin. By contrast,Bull Run Lake is a large lake in a small basin.) In an extreme water shortage,the City could require water use curtailment under authority of the ordinance adopted by the City Council in 1992 (Ordinance No. 165673). The 1992 ordinance authorizes the Water Bureau Administrator to establish curtailment rules as appropriate to the situation. These rules would likely prohibit or curtail certain water use practices such as lawn watering and car washing. The City imposed*-mandatory restrictions in the summer of 1992 when.the Columbia South Shore Well Field was not available for use. Mandatory curtailment can cause substantial inconvenience for a broad range of customers. For certain business sectors(e.g.,landscape and nursery)mandatory curtailment can also cause significant economic hardship.For these reasons,mandatory curtailment would be implemented only if absolutely necessary. The Water Bureau could also draw the Bull Run Reservoirs down below their water quality target elevations. However,because the Bull Run system is not filtered,extensive reservoir drawdown poses an increased risk of exceeding federal turbidity standards. 4. MEETING MULTIPLE OBJECTIVES The Water Bureau has designed this strategy to meet key objectives including: • Maintaining high water supply reliability and optimizing water quality in the water distribution system • Promoting water use efficiency ■ Contributing to fish recovery and improved water quality in the Bull Run River ■ Managing costs Maintaining High Water Supply Reliability and Optimizing Water Quality in the System The water supplies summarized on Table 1 will be used as needed to ensure reliable supply and to optimize the quality of water delivered to customers. Managing these supplies is a dynamic process that involves a variety of factors (weather,infrastructure limitations,cost, staffing tradeoffs, etc.). Preliminary supply forecasts indicate an adequate supply of water this year to meet projected. demand during the peak season. 11 Promoting Water Use Efficiency Water conservation is a key component of the Bureau's summer supply strategy. Conservation programs are implemented by the Bureau and/or in collaboration with the Regional Water Providers Consortium. Conservation has helped reduce water demand and stretch water supplies to last longer and serve more needs. The Regional Water Providers Consortium is close to completing its update of the Regional Water Supply Plan. The plan includes an evaluation of regional conservation programs and potential costs and savings. New programs have been identified for regional and sub-regional implementation. The schedule for implementation is up to the individual providers upon acknowledgement of the plan. The updated plan is scheduled to be completed by Fall 2004. Contributing to Fish Recovery and Improved Water Quality in the Bull Run River The Bureau continues to work collaboratively with numerous partner organizations to recover ESA- listed fish species in the Sandy River Basin and to reduce summer season water temperatures in the lower Bull Run River. Federal rules require protection of the listed steelhead and chinook. State and federal rules also require meeting temperature objectives designed to protect aquatic habitat. The Bureau will release flows into the lower Bull Run River consistent with interim agreements with the regulatory agencies and partner organizations.The effect of habitat-protection actions on the availability of summer water supply will be a key consideration when making final long-term compliance commitments. Managing Costs As described in Section 3 and summarized in Table 1,the Bureau has assigned priorities(baseline primary,baseline augmentation,Tier 1 and Tier 2)to the seasonal supply-side and demand-side resource options that are available for use during the peak season. These priorities,in part,reflect the objective to manage the potential public and private costs. For example,running the Columbia South Shore wells relies on expensive electrical energy to power large pumps. Using Bull Run Lake Increment#2 would trigger environmental mitigation costs if the Iake does not refill to full pool elevation in the spring of 2004. Curtailment messages,either voluntary or mandatory,can yield significant reductions in water use,but also result in decreased revenues to the Bureau and additional , costs for media advertisements. Curtailment can also impose significant economic hardship on the community. Managing these costs is an important aspect of summer water supply planning. 12 GLOSSARY OF TERMS 1. Aquifer Storage and Recovery—a water supply management strategy that uses wells to recharge treated surface water into an aquifer(groundwater)system for withdrawal later when needed. The aquifer becomes a storage facility for treated drinking water. 2. Baseline Augmentation Resources-sources of supply that are readily available for use but not used on a routine, ongoing basis. These include the Columbia South Shore wells and the first increment of Bull Run Lake. 3. Baseline Primary Resources-the basic supply and demand management resources that are used each year. These include ongoing water conservation,Bull Run reservoirs and streamflow,and wholesale demand offloads. 4. Bull Run Reservoir Depletion Line-the point at which usable storage in the two reservoirs equals zero. The distance of a plotted line above the Depletion Line indicates the amount of routine usable storage in the Bull Run reservoirs(9.9 billion gallons when the reservoirs are full). The distance of a plotted line below the Depletion Line represents the amount of water(or demand reduction)that would be needed to augment the Bull Run supply to meet peak season demand. 5. Contingency Resources-sources of supply and demand management that require some advance planning to implement.Tier 1 contingency resources are simpler and less costly to use than Tier 2 contingency resources, and are thus assigned a higher priority for use. 6. Drawdown—the period of the year when the amount of water stored in the Bull Run Reservoirs is decreasing because outflow from the reservoirs exceeds inflow to the reservoirs. 7. Drawdown Curves—curves depicting the volume of usable storage in the Bull Run Reservoirs over time. Three scenarios(Cool-Wet,Median,and Warm-Dry)are shown on the drawdown curve. 8. Flow releases—flows of water released from the reservoirs into the lower Bull Run River to meet flow and temperature targets developed to protected listed fish. When the Endangered Species Act and Clean Water Act negotiations are complete,the finalized flow release commitments will become legally enforceable. 9. Naturally occurring conservation—the reduction in water use resulting from water-efficient plumbing fixture regulations and plumbing cod changes that went into effect in 1992. 10. Peak Demand Season—the period of highest water use due to warm weather and low incident of rain.It is usually from July to September. 11. Refill—when the streamflow into the reservoirs exceeds demand to town and downstream flows for fish. Refill begins when drawdown ends. 12. Usable Storage-the amount of water available above 970 feet elevation for Reservoir 1 and above 840 feet elevation for Reservoir 2. 13. Wholesaler Offloads—when wholesaler providers go to other sources of water,reducing the demand on Portland's system. 13 Sign4n Sheet for Intergovernmental Water Board Meeting June 9, 2004 PUBLIC COMMENTS ARE LIMITED TO 5 MINUTES PER PERSON Na / se Pring Would you like to speak to the Board? SGhe � Cc Q/ 'r c x , �- / t3 - - -- --- Al-_ --- �� - - Z- IjKle 143.4 9A l� � �s x_1 4 , � r s- 1 ` �. -136- " 1 va em Y Supply Strategies � A Financial Comparison of Contract an, Id Supply Alternafives Prepared for the City of Tigard by Financial Consulting Solutions Group, Inc. Edgard Cebron, Principal ■ (425) 867-1802 June 8, 2004 y a „ i M Focus y ?ey f°iY " t • To provide an economic perspective on the i 's current contract decision with Portlandp - Evaluate the total costs of three sources of supply - Analyze how the costs of those sources change under different strategies related to a contract with Portland - Determine the lowest cost and retail rate, impact option • • • UNDER ATTORNEY - • Group,Financial Consulting Solutions 867-1802 7 Y e . s a Contract s ' W' m low_ _ - 1 . Extend and renegotiate the existing contrai wp m_. . .. ........... Portland 2. Terminate the contract with Portland 3. Negotiate a new long-term contract with Portland ATTORNEYCONFIDENTIAL-PREPARED UNDER DIRECTION Financial Consulting Solutions Group, Inc. m(425)86 - :6 :0 wl Permain"'*- ! n��t a M 'M • Portland • Joint Water Commission, (iW C f • Willamette Treatment Plant, PREPAREDCONFIDENTIAL— 0 - ATTORNEY DIRECTION Financial Consulting Solutions . 867-1802 r aha � Portland Contract f . I Contract Decisions: (DECISION #1) (DECISION #2) (DECISION #3) Extend/Renegotiate Terminate New Contract* Permanent Sources: (A) (B) (C) (B) (C) (A) (B) (C) Portland JWC Willamette JWC Willamette Portland JWC Willamette *At this time, terms for a new contract cannot be estimated, therefore, the analytical results for Decision#1 are assumed to be equal to Decision#3. a CONFIDENTIAL •- DIRECTIONFinancial Consulting Solutions . 867-1802 4 y$ Y 'w .. Aspect�� no' • Decisions #1 and #3 Extend/New Contract):, — Agree to Portland terms, under extended existing contractor V long-term contract — Use Portland as a permanent supply Or... — Move to JWC or Willamette under contract "exit" terms: pay minimum purchase penalties • Decision #2 (Terminate Contract): — Negotiate a "bridge contract with Portland to provide a reliable source until either JWC or Willamette capacity is available Group,CONFIDENTIAL—PREPARED UNDER ATTORNEY DIRECTION Financial Consulting Solutions 867-1802 r; C1*' ---1'-- PSr I d n �-- II a • Net Present Value per CCF1 : - The equivalent value of future payments in present day arnouns - Provides the best economic outcome when comparing scenarios • The lowest dollar amount equals the lowest total, cost option • Average Residential Water 13012: - The forecasted direct impact to Tigard's ratepayers - Illustrates the capital- versus operating cost dynamic [1] 1 CCF = 100 cubic feet= 748 gallons [2] Based on 9 CCF per month. CONFIDENTIAL—PREPARED UNDER ATTORNEY DIRECTION Financial Consulting Solutions Group, Inc, m(425)867-1802 x a^, . k> rR, Net, P Value- Compan"'S"", CONFIDENTIAL PREPARED UNDER .- DIRECTION IM Ong,, h FM Source of Su 9 Wholesale Rate per CCF by 2028 pp y High Estimate Low Estimate PremiumA Portland Contract $2.78 $2.69 None Portland Lease $2.78 $2.69 $0.50 Portland Bridge $2.78 $2.69 $1.00 JWC Partner $0.64 $0.64 None JWC Lease $0.97 $0.97 $0.21 Willamette $0.80 $0.80 None CONFIDENTIAL •- - • Decision NPV of Capital Investment + NPV of Operating Costs* Total NPV Scenario High Estimate Low Estimate High Estimate FLow Estimate High Estimate Low Estimate (1A) Portland $35.5 $24.8 + $66.4 $65.0 = $101.9 $89.8 (1 B) .IWC $79.8 $73.7 + $44.3 $38.4 = $124.1 $11.2.1 (1C)Willamette $52.0 $42.4 + $48.5 $42.5 = $100.5 $84.9 (213) ,IWC $79.8 $73.7 + $41.6 $38.9 = $121.4 $112.6 (2C)Willamette $52.0 $42.4 + $45.8 $43.1 = $97.7 $85.5 * In 1B and 1C, the City would incur minimum purchase penalties from Portland: NPV of$5.6-5.8 million. CONFIDENTIAL •- DIRECTION Group,Financial Consulting Solutions :0 ra . RIAPTI W111-11 c . b Net Pr-esve Portland Contract (DECISIONS #1 AND#2) (DECISION #2) Extend 1 New Terminate (A) (B) (C) (B) (C) Portland JWC Willamette JWC Willamette Levelized NPV per CCF: to to to to to i Comparison of Suppiy Scenario Costs $3.00 Q) Q) LL $2.50 2C Lowest Cost Option V a� � c $2.00 -- — L Q 4 $1.50 $1.00 z a� N $0.50 J $0.00 1A 1B 1C 2B 2C CONFIDENTIAL—PREPARED UNDER ATTORNEY DIRECTION Financial Consulting Solutions Group, Inc. ■ (425)867-1802 13 ■ . Rate Comparisons � CONFIDENTIAL .. . UNDER ATTORNEY , . ■ a Cag a,t e= sw s From the Ratepayer's Perspective: • Capital costs burdens in the City's retail rates can. !W mitigated through SDCs and debt financing Whereas... • ongoing operating costs are ineligible for recovery in SDCs and are "real time they directly impact the City's retail rates CONFIDENTIAL •- - • Financial Consulting Solutions Group,Inc. m(425)867-1802 15 Retail R I Portland Contract (DECISIONS #1 AND Affr&171 (DECISION #2) Extend / New Terminate (A) (13) (C) (13) (C) Portland JWC Willamette JWC Willamette Average Residential Bill by 2024/25: CONFIDENTIAL—PREPARED UNDER ATTORNEY DIRECTION Financial Consulting Solutions Group,Inc. m(425)867-1802 16 a ` SD""C' r • ��a 4 Portland Contract (DECISIONS#1 AND#2) (DECISION #2) Extend I New Terminate (A) (B) (C) (B) (C) Portland JWC Willamette JWC Willamette System Development Charge:* a *Average SDC between 410 Zone and Bull Mountain. CONFIDENTIAL-PREPARED UNDER ATTORNEY DIRECTION Financial Consulting Solutions Group,Inc. m(425)867-1802 Comparative Rate Requirements $700 Portland $600 JWC $500 — JWC , Willamette w $400 Willamette $300 Cn 0 $200 Scenario 1A Portland Scenario 1 B Scenario 1C $100 Scenario 2B Scenario 2C $0 o`' o0 0� o0 00 p ,�►. 0 p N� �h �o ,�� �o �o �o �►. ti� do ti� by pyo pyo �o �o �o �o pyo �o �o �o do �o �o �o �o �o �o �o �o �o �o �o �o ,yo pyo Fiscal Year Ending CONFIDENTIAL—PREPARED UNDER ATTORNEY DIRECTION Financial Consulting Solutions Group,Inc. ■(425)867-1802 �9 6 Policy Decisions CONFIDENTIALUNDER ATTORNEY DIRECTION Pt�tpe4 k • Terminate the Portland contract or negotiate a nevi A f A - Best economic outcome: Terminate - Staff Recommendation: Terminate i • Invest in expanded capacity with JWC or Willamette - Best economic outcome: Willamette - Staff Recommendation: Willamette • Determine viability of pursuing Willamette as a permanent source of supply (technical, financial, political) CONFIDENTIAL •- DIRECTION Group,Financial Consulting Solutions 867-1802