WATER/WASTEWATER TASK FORCE MEETING

FINAL MINUTES

1) CALL TO ORDER

The meeting was called to order by Councilor Paul Wulf.

2) INTRODUCTIONS

Introductions were made. Members, staff, and citizens were in attendance. See attached sign-in sheet for member and citizen sign-in.

Absent members were Councilor Wes Bennett, Polk County Commissioner Mike Propes, Keizer City Councilor Garry Whalen, Tom Zepp. Nicola Cribb represented Marion County Commissioners, and we have no representative from the Planning Commission or from commercial business at this time.

Citizens in attendance included Ed Gerding (Oregon Cherry Growers), Michael Kurtz and Mark Fields (Suburban East Salem Water District), Keeta Lauderdale (Concerned Business), Lynn Halladey (Agri Pac).

Staff present included Frank Mauldin (Public Works Director), Paul Eckley (Chief Utilities Engineer), Pat Dodge (Management Analyst II), Diane Dennis (Acting Assistant Public Works Director), and Jack Merritt (Assistant Finance Director). Also present were Eric Rothstein (CH2M-Hill) and Debbie Galardi (Galardi Consulting).

3) CITIZEN INPUT

None at this time.

4) MINUTES

Minutes from October 22, 1998, Task Force meeting were not reviewed or approved. Hold over until next meeting.

5) WATER/WASTEWATER COST OF SERVICE ANALYSIS (COSA)

Jack Merritt (Assistant Finance Director) introduced Eric Rothstein from CH2M-Hill for presentation of the Preliminary COSA results and shifts in revenue/cost responsibility among water and sewer classes of customer. See handout for details of presentation.
Eric reviewed the COSA process - Water/Wastewater Task Force direction including: customer classification, cost allocation, preliminary rate design. Also presented was information on the Water Utility System COSA, the Sewer Utility System COSA, and Policy Issues including rate design, rate transitioning, and the next steps.

There were varied questions during the presentation including the process used to allocate costs. Eric stated that a very detailed look at the budget and the capital improvement program was done with City staff and CH2M-Hill staff meeting to look at both assets and operating costs. The presentation by Eric Rothstein included detailed information on class revenue responsibilities as shown on the attached document handed out at the meeting.

The next steps include: financial feasibility study, 10-year system average rate projections, develop rate transitioning plans (inter-class and intra-class), rate design, public hearings/City Council, and implementation planning.

6) FUTURE MEETINGS

Staff and the consultant need to come back to the Task Force after the Financial Feasibility Study is completed for the COSA. We need to take a look at the capital improvements scheduled to be built, look at how the funds are allocated, and see what that means, how that fits with the feasibility study. The feasibility study will be done - revenue requirements - then we will go into the rate structure.

The next meeting at which Water and Sewer COSA information (the Financial Feasibility Study) will be presented will be the second Thursday in April (April 8).

7) OTHER

At this point, Councilor Scott made a motion to request that staff review and report back to the Water/Wastewater Task Force within 90 days, on the feasibility of not building a new Stayton-Turner transmission line, and in place thereof, developing the Mission Bottom well field. This is something that has been looked at before and with the recent news about the increased cost - 50 percent over last reported cost of the transmission line - this is something that calls for being looked at again. Report back to the Task Force is to focus on the comparative:

1) Cost
2) Supply reliability
3) Water Quality
4) Any other relevant factor of each option.

Frank Mauldin stated that it would take some time to do that - it is a pretty major assignment. Chairperson Wulf would like to see this as a Task Force policy item like a councilor policy item - to have Councilor Scott give a copy of the motion to staff and staff could present a response saying this is kind of within the scope of how long it would take it to do and what we can and what we can't do. There are a lot of interesting things on this issue. Paul has presented the idea of looking into pulling water out of the Willamette as opposed to the Santiam. He stated that he had just talked with Frank about the article in the news again from LOC regarding a lawsuit that may mean substantial problems for us to deal with for transmission lines from Geren Island down to Salem. This may significantly increase our costs even more so than what we have now. There is also some impact upon the location of the natural treatment system program. This court case could change what we can and can't do all of a sudden with long-range plans, or it might be interesting to hear from staff, maybe some response from legal staff, as to how that lawsuit could potentially affect what we do. Frank stated that they (Public Works staff) are meeting with Legal staff. The preliminary decision by legal staff regarding the transmission line is that this will not affect the transmission line because there is not alternative. That is just a very preliminary legal opinion. Decision is made to have staff report back to the Task Force with regard to the motion made by Don Scott.

Frank stated that the next thing facing the Task Force is the Stormwater Master Plan. Staff has been going through a Citizen Advisory Committee for two and a half years now and we are ready to start talking about the findings and getting close to a draft master plan. What the Task Force needs to see right now is the financial information. Jim Breithaupt is the subconsultant and we would like to bring him and Loren Collins, Chair of the Stormwater Advisory Committee (SWAC), to the Task Force in May. Paul suggested March and it was decided that March 10 would work for everyone if Mr. Breithaupt and Mr. Collins are available.

Next meeting will tentatively be March 10, 1999, when Jim Breithaupt and Loren Collins, the Chair of the CAC will be asked to present the Issue Paper on Stormwater Costs for the Stormwater Master Plan to the Task Force. Staff to determine if Mr. Breithaupt and Mr. Collins are available on that date and the Task Force will be notified of definite date.

9) ADJOURN

Meeting adjourned at 1:20 p.m.

These minutes are transcribed from notes and the tape recording of the Task Force meeting on February 24, 1998, as an overview of the meeting. They are not verbatim. The tape recorded meeting is available for review in the Office of the Public Works Director. The attachments are to the file copy only. Copies distributed at the meeting and by mail to those unable to attend the meeting

Linda Nelson, Staff Assistant II
April 19, 1999

Attachment:: Overhead Materials