AGENDA BILL

Beaverton City Council Beaverton, Oregon

SUBJECT: Joint Work Session With Tualatin Valley Water District Board Of Directors

FOR AGENDA OF: 12-13-16-AILL NO: 16251

MAYOR'SAPPROVAL: /j~J.fo

PROCEEDING: Work Session

DEPARTMENT OF ORIGIN: Public Works~-/ .(....1._

DATE SUBMITTED: 12/06/2016

CLEARANCES: City Attorney--......

EXHIBITS:

CAO Purchasing Finance Engineering

Power Point

BUDGET IMPACT

EXPENDITURE REQUIRED $0

RECOMMENDED ACTION:

AMOUNT BUDGETED $0

APPROPRIATION REQUIRED $0

City Council to conduct joint work session with Tualatin Valley Water District Board of Directors (TVWD) to share information and begin a conversation with the goal of reaching an Intergovernmental Agreement (IGA) and Urban Service Agreement in 2017.

HISTORICAL PERSPECTIVE: The most recent IGA with TVWD expired in June 2012 when the City decided to not roll it over for another five years which had been the practice dating back to 2002. There is no current Urban Service Agreement.

INFORMATION FOR CONSIDERATION: The City has prepared a brief power point presentation as will TVWD. There will be approximately 20 minutes for discussion following the presentations.

Agenda Bill No: _1_6_25_1_

Joint Work SessionBeaverton-TVWD| December 13, 2016

City of Beaverton-Water Fund

Organizational Chart

Water Fund Programs

• Water System Distribution

• 12.75 FTE’s

• Water System Quality

• 3.5 FTE’s

• Water Replacement Projects (CIPs)

• Utility Billing

• 1.64 FTE’s

• Enterprise Management & Admin.

• 2.80 FTE’s

• Water Services

• Joint Water Commission

Water Fund Financials

2013 Actuals 2014 Actuals 2015 Actuals 2016 Actuals 2017 Adopted

Fund Balance 6,386,257 7,964,383 9,507,194 11,626,817 10,681,569

Capital Outlay 1,421,156 1,966,015 3,271,981 3,290,130 5,382,777

Debt Service 2,854,616 2,875,801 2,776,842 2,121,909 1,563,200

Material Services 3,678,129 3,760,759 4,029,440 4,130,543 5,123,514

Personnel Services 1,368,905 1,382,045 1,355,607 1,390,646 2,159,457

Revenues 10,565,346 11,562,746 12,526,681 13,502,903 13,283,700

-

2,000,000

4,000,000

6,000,000

8,000,000

10,000,000

12,000,000

14,000,000

16,000,000

-

2,000,000

4,000,000

6,000,000

8,000,000

10,000,000

12,000,000

14,000,000

16,000,000

5-YR Fund Balance

Bond Indebtedness

• Beaverton

• 2004 Bond Expires 16/17

• 2006 Bond Balance of $5.6 million

• $680,000 Annual Debt Service

• Expires 2025/2026

• Borrow $33 million without raising rates

• Increasing rates 1 cent equal $33,500

• WWSP

• Beaverton’s 4.3 MGD participation estimated at

$64.5 million

• Debt Service on $64.5 million would require a $1.68

rate increase

Beaverton’s Water Demands

WATER SERVICE PROVIDER

WITHIN BEAVERTON (POPULATION 94,215)

BEAVERTON

POPULATION SERVED

PERCENTAGE OF

BEAVERTON POPULATION SERVED

METERS

WITHIN

BEAVERTON CITY LIMITS

CITY OF BEAVERTON 69,083 73.3% 18,500

TUALATIN VALLEY WATER DISTRICT

22,520 23.9% 5,272

WEST SLOPE WATER DISTRICT 2,233 2.4% 696

RALEIGH WATER DISTRICT 379 0.4% 162

TOTALS 94,215 100% 24,630

• 16 Square Miles

• Approximately 69,000 Customers

• 7 MGD

• 4 Covered Water Reservoirs

• 28 Million Gallons

• 3 Water Districts

• Tualatin Valley Water District (TVWD)

• West Slope Water District (WSWD)

• Raleigh Water District (RWD)

Beaverton - Water Rates

Fiscal Year Rate Per CCF¾” Meter Charge

2007 $ 1.87 $ 7.49

2008 $ 1.92 $ 7.71

2009 $ 1.97 $ 7.71

2010 $ 2.07 $ 8.00

2011 $ 2.22 $ 8.00

2011 $ 2.37 $ 8.00

2012 $ 2.47 $ 9.00

2013 $ 2.67 $ 10.00

2014 $ 2.77 $ 11.00

2015 $ 2.87 $ 12.00

2016 $ 2.97 $ 13.00

2017 $ 2.97 $ 13.00

$0.00

$2.00

$4.00

$6.00

$8.00

$10.00

$12.00

$14.00

$16.00

$18.00

2007 2008 2009 2010 2011 2011 2012 2013 2014 2015 2016 2017

Water Rate History

Rate Per CCF ¾” Meter Charge

Rates – Beaverton and Water Districts

$26.92

$36.76

$44.77

$48.55

0

10

20

30

40

50

60

Residential Water Rates (8CCF)*

RWD Beaverton TVWD WSWD*November 1st Rates

*November 1st Rates

2016 2017 2018 2019 2020 2021 2022 2023 2024 2025

TVWD $3.55 $4.06 $4.61 $5.23 $5.94 $6.74 $7.65 $8.68 $9.85 $11.18

COB 2.97 2.97 3.07 3.17 3.27 3.37 3.47 3.57 3.67 3.77

COB w/WWSP 2.97 2.97 3.07 3.17 3.39 3.87 4.29 4.50 4.93 5.13

$2.00

$3.00

$4.00

$5.00

$6.00

$7.00

$8.00

$9.00

$10.00

$11.00

$12.00

FUTURE RATES TVWD VS CITY OF BEAVERTON

Beaverton’s ASR System

• 6 ASR’s

• 2 Operational (ASR Nos. 2 and 4)

• ASR 1 was taken out of service in 2012

• ASR 5 will replace ASR 1

• Estimated completion September

2017

• 30% of daily water consumed in the summer comes from ASR’s

• Second municipality in Oregon to

develop ASR

1997 - ASR No. 1

1 mgd (out of service) 2001 - ASR No. 2

2 mgd

2007 - ASR No. 4

3 mgd

ASR No. 1

ASR No. 4

ASR No. 2

City of BeavertonTotal City Population: 94,000Total Customer Water Meters: 18,500

Population Served: 70,000

ASR 5• 2.5 – 3 mgd

• 950 ft. deep

• Two Major Water Zones

• Added Storage Capacity

• Resilient Design

PP Preliminary Design – Draft

Phase 1 Total Cost Estimate $3.5 million

South Cooper Mountain

Non-potable (Purple Pipe) Water System

Phase 2363 acres

ASR 3 Well

500 gpm, 53 AF/yearFarm Well No. 1

22 gpm, 5.7 AF/yearFarm Well No. 2

135 gpm, 17.5 AF/year

Phase 1201 acres

ASR No. 3

Drilled in 2000

500 gpm (0.7

mgd)

Water Master Plan

Water Distribution

Renewal & Replacement

Capacity Increasing

ProjectsWater Supply Water Rights

Seismic Risk

Mitigation/Resiliency

Facility Planning

(now and future)

Water Service Area

(now and future)

Water mains, valves and

appurtenancesCOB Distribution System JWC Groundwater Rights JWC Assets Storage/Parking

Current approx.

70,000 pop

Water metersJWC Transmission

> 14 mgdWWSP COB ASR Limited License COB Reservoirs - 28.75 MG

Land for reservoirs, pump

stations, reservoirs,

remote staff operations

South Cooper Mt.

Annexation Area

Meter reading: AMI, AMR

JWC Water Treatment

Plant Expansion > 18.75

mgd

ASR JWC ASR Limited License Emergency Backup Power Staff office space Future Service Area

Pressure Reducing Valve

(PRV) Stations

Barney Reservoir Raw

Water Storage > 4,300

acre-ft

Non-potable

(purple-pipe)

Water System

Surface Water Rights

Tualatin River - 16 mgd

Pump Stations/Fluoride

StationCOB Water Staffing levels

Storage ReservoirsIn-town Reservoirs

> 28.25 MG

Portland Water

Bureau - small

wholesale contract

Willamette River - 21 mgd Water Distribution Mains

Pump Stations/Fluoride

Stations

USBR Scoggins Dam - Seismic

Modification

Revised Water System

Engineering Design

Standards

Revised Water System

Engineering Design

Standards

Revised Water System

Engineering Design

Standards

Sectors of Water System Responsibilities & Water Master Plan Outline (Table 1)

IGA with TVWD

• Key Elements

• Service Boundaries

• Prioritization of Capital Investments

• Coordination of Capital Improvements to

Minimize Duplication

• 2 Key Issues

• Potential Withdrawal of Territory from TVWD

• Timing and Cost

• Intent for future service areas within UGB

Questions?

www.BeavertonOregon.gov