BOARD OF COMMISSIONERS 1850 SW 170 TH AVENUE BEAVERTON, OR OCTOBER 7, 2008 WORK SESSION 6:00 PM

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1 BOARD OF COMMISSIONERS 1850 SW 170 TH AVENUE BEAVERTON, OR OCTOBER 7, 2008 WORK SESSION 6:00 PM Present: Management Staff: Staff: Officials: Public: Commissioners: Jim Duggan, Jim Doane, Marie Haynes, Dick Schmidt (President Burke was absent) Greg DiLoreto, Patty Rupp, Todd Heidgerken, Clark Balfour Bob Shields Thane Young - Van Scoyoc Associates, Tom VanderPlaat - CWS (Tualatin Basin Water Supply Project partner s on Federal issues) Nancy Matela, Tracy Rutten, Kathy Newcomb, Delores Hurtado, Jim McNaughton, Peg Willis, Ed Cleary Vice President Duggan called the Work Session to order at 6:04 PM. TUALATIN BASIN WATER SUPPLY PROJECT (TBWSP) - FEDERAL GOVERNMENT ACTIVITIES General Manager DiLoreto introduced Tom VanderPlaat, Project Manager and Mark Jockers, Government and Public Affairs Manager for the TBWSP, who both work for Clean Water Services (CWS), a partner in the project. Mr. Jockers explained the activities of CWS with respect to providing the management roll for the Tualatin Basin Water Supply Project (TBWSP). Mr. Jockers then introduced Thane Young with Van Scoyoc Associates, a lobbying consultant from Washington DC, hired by the partners to oversee federal issues. Mr. Young explained that he appreciated the opportunity to represent the partnership, and that he is particularly aware of the significant roll that the Tualatin Valley Water District plays. Mr. Young indicated that it is the work of the partners that should be commended, in terms of the regional perspective and the development of the partnership. Mr. Young provided a capsule view of the federal activities underway with respect to the project and title transfer. Congress passed a continuing resolution for funding, with direction to federal agencies that they have the discretion to continue funding projects that were funded in fiscal year 2008, given that the appropriations had previously been made for the Water Supply Study and the Facility Assessment Study. Page 1 of 17

2 Mr. Young pointed out that if Congress does finally pass a fiscal year 2009 appropriations bill, in both the House and the Senate version of the Energy and Water Development appropriation, there is $106,000 to complete the Facility Assessment Study. In the Senate version of the bill, there is $400,000 to continue the Water Supply Study. In terms of the Title Transfer Authorization, there is no legislation being considered at this time however, Mr. Young explained that there is great bipartisan support in both the House and the Senate. The authorizing committees are supportive of the concept as well as the Bureau of Reclamation, and most importantly, the Office of Management and Budget. COMMISSIONER TOPIC PRESENTATION - WILLAMETTE RIVER WATER TREATMENT PLANT (WTP) COSTS, SHERWOOD WILLAMETTE RIVER WTP PURCHASE AND TVWD OWNERSHIP (General Manager DiLoreto provided a flipchart with a list of written acronyms for greater understanding). General Manager DiLoreto began by pointing out to the Board that a detailed paper and copy of the PowerPoint slides had been provided to them. This included the Commissioner Topic Presentation and information requested by Commissioner Haynes, with respect to the Willamette River Water Treatment Plant (WTP) costs, Sherwood Willamette River WTP purchase, and TVWD ownership. The Board had agreed to hold a work session to provide answers to the questions posed by Commissioner Haynes and two members of the public (27 questions were received from the two members of the public). General Manager DiLoreto explained the goal of the presentation was to provide clarity and answer questions involving two items; the Willamette River Water Treatment Plant (WRWTP) and the Willamette River Water Coalition (WRWC). General Manager DiLoreto reminded the Board and audience of the Board's decision in December 2007, committing TVWD to move forward with the expansion of the TBWSP as TVWD's future water source for next 50 years. Staff is focusing on the program along with the partners in order to make the project a reality. General Manager DiLoreto continued with the PowerPoint presentation as the Board followed along. He provided an overview of the history of the WRWC. He then read and answered each question provided in the handout from Commissioner Haynes and the public. In closing, General Manager DiLoreto pointed out once again that the TVWD Board is committed to the Tualatin Basin Water Supply Project in order to meet future demands. The intent of the presentation was to provide clarity regarding TVWD's past and current roll with the WRWC and WRWTP. The questions from Commissioner Haynes and the public were not edited. The material was presented as a "question and answer" type format as opposed to providing a presentation. Vice-President Duggan then asked for questions and comments from the Board. Page 2 of 17

3 Commissioner Haynes indicated that she appreciated the efforts by staff in putting together such detailed information. She commented that there is much more information available than she had thought. General Manager DiLoreto asked Commissioner Haynes if the presentation had met her original expectations. She answered that, yes, it had. Commissioner Doane indicated that he appreciated the summary of the last eleven years. Vice-President Duggan provided additional history of the WWSA before the organization had become known as the WRWC. He indicated that during that time there was concern by then newly elected Commissioner's Lisa Melyan and Gordon Martin regarding publications, presentations and the mission of the WRWC. A general discussion took place amongst the Board members and General Manager DiLoreto. PUBLIC COMMENT: Kathy Newcomb, SW Cheyenne Way, Tualatin, Citizens for Safe Water Ms. Newcomb indicated that her interest is with the City of Tualatin and the City's interest in the WRWC. She explained that she had not objected to the membership, in terms of industrial use of the Willamette. Ms. Newcomb indicated that she had spoken to Todd Heidgerken, Manager of the office of Communication and Intergovernmental Relations, earlier in the day and that she had written concerns about the "draft" outline document (the final document handed out at the meeting) that she said she had been fortunate enough to review before this meeting. She explained she would re-write and send her comments to Mr. Heidgerken. Ms. Newcomb spoke of information that she believed should be included in the outline. Ms. Newcomb asked what the deadline would be to provide comments to the Board. Without objection, Vice-President Duggan extended Ms. Newcomb's comment period for an additional 30 seconds. Ms. Newcomb explained that she hoped that her comments and corrections would be included in the outline. She mentioned that she may request public records, such as the WRWC budget and other information. Clark Balfour, Legal Counsel, pointed out that information submitted by the public after the meeting date can only be considered correspondence, rather than part of the minutes. In terms of requests for public records, Patty Rupp would be the contact person at TVWD. Page 3 of 17

4 Delores Hurtado SW Chinook Street, Tualatin Ms. Hurtado thanked the Board and Staff for the preparation and presentation of the material. She indicated that she may provide additional comments at the October 15 TVWD Board meeting. Ms. Hurtado then read from page 4, second bullet, of the Outline handout with regard to the October 2003 meeting of the WWSA and asked the Board if this is truly what happened, or was it the reverse. Commissioner Doane pointed out that he had attended the meeting, and confirmed the statement. Ms. Hurtado then referred to the same page of the Outline, in reference to question No. 10, in comparison with the "draft" Outline in terms of information being left out regarding the health of the Willamette River. General Manager DiLoreto confirmed that the language would remain in the new IGA. Ms. Hurtado explained that she was curious as to whether the WRWC had participated in the legislative session just passed, where a bill was introduced that provided examination of contaminates in the Willamette. General Manager DiLoreto replied that they were not. He mentioned that additional questions relating to legislation should be directed to the WRWC. Ms. Hurtado indicated that there is a great deal of mistrust of the water quality of the Willamette. She suggested that it is important for TVWD and the WRWC to participate in efforts to identify and clean up the sources. General Manager DiLoreto pointed out that Commissioner Burke is the current Board representative to the WRWC, with Commissioner Haynes as the alternate. Ms. Hurtado asked several more questions regarding state law in terms of clean up of the Willamette River. Commissioner Schmidt advised Ms. Hurtado to bring her concerns regarding those issues to the WRWC Board. Ms. Hurtado then read questions #20 regarding the transfer of assets. She questioned how this would happen, and commented that she would go before the WRWC for clarification. Commissioner Schmidt pointed out to Ms. Hurtado that many of her questions could be answered by the WRWC, as there are other agency members other than TVWD. Commissioner Doane stated to Vice-President Duggan that he appreciated the generosity he had provided in terms of the public comment period during the meeting. Most Board work sessions are just that, and public comment is not always offered. Page 4 of 17

5 Vice President Duggan pointed out that the time was well spent in order to clarify the information for Commissioner Haynes and address the publics concerns. ADJOURNMENT It was moved by Commissioner Doane and seconded by Commissioners Haynes to adjourn the meeting at 7:00 P.M. The motion carried. BOARD OF COMMISSIONERS TUALATIN VALLEY WATER DISTRICT BY BY James Duggan, Vice- President Marie Haynes, Secretary Page 5 of 17

6 Commissioner Topic: Costs and Ownership of the Willamette River Water Treatment Plant Work Session Detail Paper October 7, 2008 Requested by Commissioner Haynes Introduction: Goal this evening is provide some clarity and answer questions involving two items: - The Willamette River Water Treatment Plant (WRWTP) and - The Willamette River Water Coalition (WRWC). As a reminder, the TVWD Board chose last December to expand the District s Joint Water Commission supply in order to meet the needs of the District for the next 50 years. Although the District is focused on the development of this Tualatin Basin Water Supply Project (TBWSP), a commissioner topic and questions from members of the public have been received regarding the background and future of the WRWC and WRWTP. We have received a number of questions (7 as a result of Commissioner Haynes memorandum and 27 from two members of the public) that we will provide responses to. Tonight we will look at the following: The WRWTP (project, cost and TVWD ownership) Sherwood s Purchase of a Portion of the WRWTP (what does Sherwood own) WRWC Background and History WRWC Finances and Programs TVWD s Role in the WRWC WRWC s Administration and Future Willamette River Water Treatment Plant: The WRWTP was placed into service in April 2002 and has been used since by the City of Wilsonville. Prior to that (April 2002), Wilsonville was under a water moratorium and a state mandate to develop a solution to their water need crisis. They evaluated a number of options and decided to proceed with the development of the Willamette River source. TVWD had also been evaluating the Willamette River as a water source alternative. This evaluation included the testing of a pilot-scale water treatment facility ( ) and raw (untreated) water quality monitoring. In 1999, Wilsonville decided to move forward with design and construction of the WRWTP, the TVWD Board authorized participation in the project to construct 5 Page 6 of 17

7 mgd of complete treatment capacity and oversize a number of components to allow for future expansion. Following the process laid out in the Willamette Water Supply Agency (WWSA - WRWC precursor) IGA, TVWD proposed the project to the other WWSA member agencies to see if they wanted to participate. It was intended that this would be a project that would result in a partnership between Wilsonville and the WWSA. Wilsonville had made it clear from the beginning that they wanted to work with only one partner as opposed to coordinating with a number of partner agencies. Since TVWD was the only agency interested in participating at that time, the other WWSA members suggested that TVWD partner directly with Wilsonville on the design and construction of the WRWTP. Given the direction from the WWSA members, TVWD entered into an IGA with Wilsonville. The IGA provided details on the design, construction, operation, and property ownership of the WRWTP. The IGA also notes that the agreement can be transferred to the WWSA. Wilsonville is not a member of the WRWC. 1. How much money has TVWD spent on the Willamette River Project? $22,436,750. In addition to the cost of the WRWTP, this amount also reflects engineering studies, water quality analysis, labor and WWSA/WRWC dues. This amount does not reflect the sale to Sherwood. 2. What was (TVWD s) total original cost of the land and water treatment plant? $17,997,774. The original cost of the 49% interest in the land was $1,291,350 plus the final cost of TVWD s portion of the WRWTP $16,706,424 for a total of $17,997, What does TVWD currently own from its original $18 million investment in the WRWTP? TVWD owns approximately $11,320,158 of assets. After the sale of a portion of the WRWTP to Sherwood, TVWD owns $10,028,808 of the WRWTP facilities (June 2005 dollars not inflated), which equals the final project cost minus the assets sold to Sherwood. TVWD also owns 49% interest in the land in the amount of $1,291,350 (1999 dollars). More details regarding capacity of the assets are included in Exhibit Who now pays for the insurance, maintenance and other factors of (WRWTP) administration? The City of Wilsonville. Under the TVWD/Wilsonville IGA, the WRWTP managing agency (Wilsonville) is responsible for insurance, maintenance and other WRWTP administration (not to be confused with WRWC administration). Wilsonville has been paying these costs since they are the only one using the facility. Sherwood s Purchase of Portion of Willamette River Water Treatment Plant: Given the fact that TVWD had capacity in the WRWTP, Sherwood approached TVWD regarding the purchase of 5 mgd. Upon Sherwood s request, TVWD initiated a valuation analysis to determine the fair market value of the 5 mgd portion of the WRWTP. The TVWD Board participated Page 7 of 17

8 in the valuation discussions prior to confirming to Sherwood that TVWD would be willing to sell the 5 mgd. Sherwood had been working through a process to evaluate its future water source options and determined that the development of the Willamette source would be their best option. Prior to being able to use the Willamette source, Sherwood needed to put the issue to a vote of their citizens. The citizens voted yes in allowing the City to proceed with the use of the Willamette source. In November 2006, the Sherwood City Council authorized their City Manager to enter into an IGA with TVWD to purchase 5 mgd from the existing WRWTP. In December 2006, the TVWD Board authorized the General Manager to enter into the IGA with the City of Sherwood. 5. How much money did the District receive from Sherwood for the sale of the 5 mgd of the plant? $6,962,630. This price was based on the June 2005 valuation of $6,677,616 inflated to October 2006 dollars using the Local Government Investment Pool interest rate. 6. How much remaining capacity and investment in the plant exists after the sale to Sherwood? The amount of capacity depends on the component of the WRWTP. Exhibit 1 is a breakdown of the capacity that Wilsonville, Sherwood and TVWD respectively own. The exhibit also includes the total capacity. TVWD owns $10,028,808 of the WRWTP facilities as stated in June 2005 dollars. 7. What did Sherwood receive for its purchase of approximately $7 million? Sherwood received 5 mgd of capacity in all of the WRWTP components. Exhibit 1 includes details regarding the various components of the WRWTP that Sherwood purchased. 8. Has Sherwood received part of or the entire ownership of a portion of the WRWTP? Sherwood owns 5 mgd of capacity in the entire WRWTP. Sherwood purchased an undivided interest as tenant in common in the supply assets of the WRWTP, sufficient to supply 5 mgd from the existing facility. TVWD also granted Sherwood the right to use and occupy the property. 9. Will Sherwood have to pay to have a treatment bank of its own built into the plant to treat the water? No. Sherwood has 5 mgd of capacity in the WRWTP that is already constructed. Sherwood will need to construct portions of the transmission system to get the water from the WRWTP to Sherwood. WRWC (and WWSA) Background and History: The Willamette Water Supply Agency (WWSA) was formed in 1997 through an Intergovernmental Cooperative Agreement (IGA). It was and continues to be an organization formed under ORS et seq. which allows for the formation of such cooperative agencies among public bodies. Original member agencies included Canby Utility, Clackamas River Water, Tualatin Valley Water District, and the cities of Tualatin, Sherwood, Tigard, and Gladstone. Page 8 of 17

9 (Seven members). Today the four current members include Tualatin Valley Water District, and the cities of Sherwood, Tigard and Tualatin. The WWSA Board (now WRWC Board) is made up of one elected representative from each of the member agencies. The WWSA was formed to do the following: - Study the best methods to develop water sources on the Willamette River. - Hold, receive and develop water rights on the Willamette River including taking all action necessary to preserve and protect them. - Engage in public education and public involvement to keep the Willamette River as a viable local and regional water source and educate the public regarding the viability of the Willamette River as a domestic water source. - Serve as the lead agency and contact point on issues concerning municipal use of the Willamette River. Initially, TVWD provided staff support to the WWSA. In July 2001, the WWSA Board hired Western Advocates, Inc. to serve as the administrator for the WWSA. In October 2003, the WWSA member agencies revised the original IGA by making the following changes: - Rename the organization to Willamette River Water Coalition (WRWC). - Delete references to the Regional Water Providers Consortium and Regional Water Supply Plan. - Delete references to public education and public involvement regarding the use of the Willamette River as a municipal water source. - Include a provision to allow the WRWC to support efforts to improve the health of the Willamette watershed. - Change the date when a proposed budget is due to allow members to consider if they will participate in the organization prior to the budget being adopted by the WRWC Board. - Create a new formula for the calculation of dues. Half of the dues will be divided equally among the members. The remaining half of the dues will be divided based on the number of water meters each member serves. - Delete reference to specific diversion points. - Delete reference to an option for the WWSA or members to acquire an interest in a project within 10 years after the member rejected the opportunity to participate in the project. - Delete references to treated water. - Provide a date by which a member has to indicate if they would like to withdraw from the WRWC. Specifies that a withdrawal is effective July 1. The WRWC has been since operating under the 2003 agreement. 10. What is the history of the formation of the WRWC and WWSA? WWSA was formed in 1997 as an intergovernmental cooperative agreement. The purpose of the organization was to: Page 9 of 17

10 Study the best methods to develop water sources on the Willamette River. Hold, receive and develop water rights on the Willamette River, including taking all action necessary to preserve and protect them. Engage in public education and public involvement to keep the Willamette River as a viable local and regional water source and educate the public regarding the viability of the Willamette River as a domestic water source. Serve as the lead agency and contact point on issues concerning municipal appropriations from the Willamette River. 11. Why was the name changed from WWSA to WRWC? To better reflect the new purpose of the organization. The change was based on discussions by the WRWC Board and included input from the TVWD Board. Based on these discussions, the direction from the meetings was that WWSA should: change its name to better reflect its new purpose; change its mission to better reflect the needs of the WWSA members; and change the IGA and bylaws to reflect the revised mission. WRWC Finances and Programs: WRWC staff annually prepares a work plan and budget estimate for the next fiscal year and distributes it to the members by January 1. The WRWC Board is responsible for approving the work plan and budget. Each member agency is responsible for budgeting its portion of the dues that will be needed to support the budget. The WRWC Board sets the dues. The areas of the budget include administrative expense, public information, legal and engineering services, and miscellaneous expenses including overhead and contingency amounts. Prior to 2002, the WRWC also budgeted for water quality monitoring. Specific answers to questions about the WRWC budget can be found in Exhibit What were the individual budget items each year? Exhibit 2 provides details regarding the annual budgets since fiscal year , broken down by categories. 13. How much has been spent by the WRWC to promote the use of the Willamette River as a drinking source i.e. public education. Exhibit 2 provides details regarding expenditures including amounts spent on public information. TVWD s Role in the WRWC: Although the TVWD Board chose last December to expand the District s Joint Water Commission supply in order to meet the needs of the district for the next 50 years, the District s future role in the WRWC continues to be of value. TVWD s (through its predecessor Wolf Creek Highway Water District) interest in the Willamette River as a possible source of drinking water is nothing new and actually goes back over 35 years. Page 10 of 17

11 Wolf Creek Highway Water District applied for and was granted a water right on the Willamette River in Since receiving the water right permit, TVWD (Wolf Creek Highway Water District) worked with other area water providers to partner on proposals regarding the construction of a drinking water treatment plant in Wilsonville. The proposals anticipated water providers working together in the development of a wholesale water supply agency. Back in the late 70 s, water providers noted that participation in a Willamette River project would: - preserve the water rights; - provide a long-term solution to water needs (recognizing that it may be years before the source is actually needed); - provide a secondary feed to the Metzger area; - build redundancy into the system where water providers would not be reliant upon the Bull Run; and - create an opportunity to provide regional leadership by agreeing to transfer water rights to a water supply authority. In the 90 s, a change in the state s interpretation on how municipal water right permits were to be treated resulted in a coordination of efforts by water providers with an interest in using the Willamette River. The change in interpretation of water law impacted how long municipal water right permits were to be extended. The impact of this ruling encouraged many of the same water providers who worked together in the past to look into the creation of a water supply agency that would collectively hold water rights and serve as a lead agency and contact regarding municipal appropriations from the Willamette River. The formation of the WWSA in 1997 was a result and way to coordinate water right activities. TVWD was a primary participant in the formation of the WWSA. This was relevant since TVWD had a 1973 water right permit, the oldest of any participant. More recently, numerous discussions regarding the possible use of the Willamette River by TVWD have been held. The TVWD Board initiated a water supply decision making process as part of its water system master planning process. This process included studies of a variety of source options and culminated in the TVWD Board decision in December of 2007 to pursue the Tualatin Basin Water Supply Project as the District s future water supply source. Leading up to the District s decision, TVWD included water supply information on the Board agenda nine times in 2007; held an open house for the community; and provided presentations to six community and civic organizations. Since the formation of the WWSA and subsequent organization, WRWC, TVWD had received the following benefits from membership: - Partners to share costs for studies and water quality monitoring. - Partners to share costs for the preservation and extension of the Willamette River water right permit. - Partners to share costs to monitor activities associated with the Willamette River. - The ability to demonstrate the demand for the Willamette River water right permit. (WRWC has one of the few water rights permit that has Page 11 of 17

12 been extended (until 2047) under the new water right permit extension process). TVWD s continued involvement in the WRWC provides the following: - TVWD has transferred its water right to the WRWC. This keeps TVWD s ability to access that water right. - Provides a mechanism to share costs associated with preserving the water right and monitoring Willamette River issues (of interest since TVWD still owns a significant share of the WRWTP). - Provides an organizational structure and process that can be followed when other water providers expand the WRWTP, of which TVWD still owns a significant share. Expansion would result in TVWD being compensated for use of components that were oversized as part of the original project. 14. How long has TVWD been a member (of WRWC)? Since its formation in Why has TVWD spent $ 341,000 in (WRWC) dues since FY 2001? To partner with other water providers on the evaluation of the Willamette River source option and to preserve the water right. 16. Why does TVWD belong to the WRWC? - TVWD has assigned its water right to the WRWC. Keeps TVWD s ability to access that water right - provides mechanism to share costs associated with water right and monitoring Willamette watershed issues - provides the Willamette River as a source option for the future - provides an organizational structure and process that can be followed when other water providers expand the Willamette River WTP - Allows for repayment to TVWD for use of its assets by other members 17. What was the original purpose of belonging to the WRWC? The original purpose of the WRWC (formally the WWSA) was to: study the best methods to develop water sources on the Willamette River; hold, receive and develop water rights on the Willamette River, including taking all action necessary to preserve and protect them; engage in public education and public involvement to keep the Willamette River as a viable local and regional water source and educate the public regarding the viability of the Willamette River as a domestic water source; and serve as the lead agency and contact point on issues concerning municipal appropriations from the Willamette River. 18. What is the current purpose of belonging to the WRWC? Page 12 of 17

13 - TVWD has assigned its water right to the WRWC. This keeps TVWD s ability to access that water right. - It provides a mechanism to share costs associated with water right and monitoring Willamette watershed issues. - It provides the Willamette River as a source option for the future. - It provides an organizational structure and process that can be followed when other water providers expand the Willamette River WTP. - Allows for repayment to TVWD for use of its assets by other members. 19. How much money has TVWD contributed each year since joining the WRWC? The annual breakdown of the amount of dues paid by TVWD is included in Exhibit 2. WRWC Administration and Future: The WRWC agreement lays out the framework for member agencies to coordinate activities on the Willamette River. It notes that subsequent agreements or addendums to the WRWC agreement will be needed when funding is needed; studies are performed; facilities are constructed; operation and maintenance functions are undertaken; and the water supply system is modified to meet regulatory requirements. The current agreement requires the WRWC Board to approve a work plan and budget. Proposed water supply projects require approval from the governing body of each member agency that is participating in the project. The current agreement does not provide details on how the WRWC would operate as a holder of the WRWTP assets. A subsequent IGA would be needed. Given the purpose of the WRWC; the fact that multiple WRWC members have ownership interest in the WRWTP; and that the City of Wilsonville will be looking at expanding the facility in the near future, coordination of future activities will need to be addressed. How the WRWC will be involved in this coordination will be resolved in future IGA s that will require approval by the governing bodies of the WRWC member agencies. Subject to TVWD Board approval, these future IGAs would provide details that will clarify the WRWC member s roles and ownership. TVWD will always own its assets unless they are sold to another WRWC member agency. The Joint Water Commission is an example of a water supply agency approach. 20. What would be transferred from TVWD to the WRWC (details of assets and cost)? No assets would be transferred from the TVWD to the WRWC. Instead, the administration of these assets would be coordinated with other water providers by the WRWC. TVWD would continue to own the value of this investment. 21. When would the TVWD Board consider this transfer for approval or disapproval? There is no plan to transfer TVWD s ownership in the WRWTP to WRWC. It has been noted by staff that the issue of how these assets are administered in the future Page 13 of 17

14 will need to be addressed. The Board will provide input and approval of any agreements relating to the administration of the assets. 22. Is there a plan to transfer TVWD s remaining ownership in the WRWTP? There is no plan to transfer TVWD s ownership in the WRWTP to WRWC. It has been noted by staff that the issue of how these assets are administered in the future will need to be addressed. The Board will provide input and approval of any agreements relating to the administration of the assets. 23. What administrative functions are being transferred from TVWD to the WRWC? No administrative functions have been transferred from TVWD to the WRWC since the formation of the WRWC. Functions transferred under WWSA from TVWD included Board meeting arrangements and administering contracts with public information consultants and water rights consultant. 24. How does this (transfer of administrative functions) benefit TVWD? Relieved TVWD staff of the responsibility of arranging for Board meetings and administering consultant contracts. 25. What happens to TVWD s ownership rights under this arrangement? Nothing. 26. Who will decide on disposition of the plant? Any sale of all or part of the plant requires the approval of those that own it in accordance with the IGA. 27. Since the administrative functions of the WRWC are provided by contract, with a private firm (Western Advocates), who at WRWC would actually carry out the proposed transfer of TVWD administrative functions of the plant? The City of Wilsonville is the managing agency of the plant in accordance wih the IGA between Wilsonville and TVWD. 28. What are the provisions for public information, public access, and public accountability to the customers of the TVWD and other WRWC members under the terms of the agreement with the WRWC? The WRWC is required to follow all applicable state laws pertaining to public meetings and records. The WRWC agreement notes that meetings of the WRWC shall be conducted in accordance with the provisions of the Oregon Public Meeting Law, ORS The bylaws note the purpose of the WRWC is to establish an avenue for public participation and education in water supply issues in addition to public participation activities of the individual participants. 29. (The question is preceded by statements about the WRWC Web site offering limited information about the organization and being at least two years out of date. There is nothing about current meeting dates, times, minutes, reports, etc. of the organization.) How can the TVWD ensure that there is public access to these important sources of information? TVWD posts WRWC meeting dates, times and locations on its Web site. WRWC minutes are also included in TVWD Board agenda packets. The WRWC has also noted the need to update the WRWC Web site. Page 14 of 17

15 30. What efforts will be made to ensure that employees of WRWC operate under the same public and political disclosure rules/laws/ordinances as TVWD? This issue would have to be addressed by the WRWC Board subject to legal limitations. Employees are required to operate under applicable state laws. 31. How will it be ensured those WRWC employees or those that WRWC may contract with now or in the future are governed by the same rules as employees of TVWD? This issue would have to be addressed by the WRWC Board subject to legal limitations. 32. What rules can be put in place to require the same level of responsibility of WRWC employees statements as are in place for public employees? This issue would have to be addressed by the WRWC Board subject to legal limitations. 33. What is the purpose of the current effort to revise the IGA and the Bylaws of the WRWC? To reflect the change in membership, water right assignment and Sherwood s project. The purpose of the current effort to restate the WRWC IGA is to update the IGA to reflect the change in membership, recognize the assignment of the Willamette River water right to the WRWC and to recognize the project undertaken by the City of Sherwood. The draft restated agreement also makes some minor edits for consistency. 34. What changes are being proposed and how will these changes affect the relationship of TVWD with the WRWC? The proposed changes update the IGA to reflect the change in membership, recognize the assignment of the Willamette River water right to the WRWC and to recognize the project undertaken by the City of Sherwood. The draft restated agreement also makes some minor housekeeping edits. The changes will not have any effect on the relationship between TVWD and the WRWC. Conclusion: Although the TVWD Board chose last December to expand the District s Joint Water Commission supply in order to meet the needs of the district for the next 50 years. Our intent was to inform and provide clarity as to TVWD s role with the WRWTP and the WRWC. We covered a lot of history and background this evening. Please realize that we are trying to cover over a decade of activities in a work session. We have tried to provide direct responses to the numerous questions that were posed. In those instances that we didn t have an answer, we tried to note where that answer would have to come from. Page 15 of 17

16 Exhibit 1 Breakdown of WRWTP ownership shares by capacity. Willamette River Water Treatment Plant Capacities PROJECT ELEMENT TOTAL Wilsonville CAPACITY in CAPACITY MGD in MGD Sherwood 5 MGD Purchase CAPACITY in MGD TVWD Adjusted MGD CAPACITY in MGD RAW WATER INTAKE AND PUMP STATION Screening Intake Pipe Wetwell Pump Station Building Pumps Electrical - wire & conduit Electrical - equipment Raw Water Pipeline WATER TREATMENT PLANT Clarification-Actiflo Ozone building & piping Ozone Contactor Ozone Generators Ozone destruct units Filters Filter to Waste Chemical building Chemical Feed Systems Backwash System Sludge Handling Clearwell FW Pump Station Building FW Transmission Pumps FW Wire & Conduit Electrical - equipment Administration Bldg-WTP reqts Landscaping & irrigation Landscaping & irrigation- City Water feature Roads and Bridge Storm drainage Overflow and yard piping Electrical Service Backup Power Instrumentation & telemetry Barge removal FINISHED WATER PIPELINE Meter/PRV to Wilsonville WTP to Kinsman Rd Page 16 of 17

17 Exhibit 2 WRWC Budget, Expenditure and Dues History WRWC Budget, Expenditure, and Dues History '98-'99 to '07-'08 Budgeted Amounts 1998/ / / / / / /2005 Payroll / Admin $ 80, $ 73, $ 74, $ 24, $ 23, $ 23, $ 30, Public Information $ 35, $ 20, $ 20, $ 15, $ 10, $ 1, $ 5, Water Quality Testing $ 32, $ 34, $ 25, $ 20, $ - $ - $ - Legal and Engineering $ 12, $ 20, $ 20, $ 15, $ 25, $ 15, $ 25, Overhead Expenses $ 1, $ 13, $ 8, $ 6, $ 7, $ 7, $ 6, Contingency $ - $ - $ 15, $ 5, $ 10, $ 5, $ 6, Totals $ 162, $ 160, $ 163, $ 86, $ 75, $ 51, $ 72, Actual Expenditures 1998/ / / / / / /2005 Payroll / Admin $ 60, $ 42, $ 37, $ 22, $ 21, $ 21, $ 30, Public Information $ 30, $ - $ 2, $ - $ $ - $ 50, Water Quality Testing $ 26, $ 33, $ 37, $ - $ - $ - $ - Legal and Engineering $ - $ 12, $ 27, $ 16, $ 2, $ 20, $ 22, Overhead Expenses $ 29, $ 9, $ 10, $ 5, $ 3, $ 4, $ 13, Contingency $ - $ - $ - $ - $ - $ - $ - Totals $ 146, $ 98, $ 116, $ 45, $ 28, $ 46, $ 117, Dues Collected 1998/ / / / / / /2005 Total Dues Collected $ 162,000 $ 160,000 $ 80,000 $ 86,500 $ 31,303 $ 51,000 $ 65,444 TVWD's Dues Amount $ 91,010 $ 95,676 $ 44,861 $ 48,636 $ 17,203 $ 34,406 $ 27,687 Page 17 of 17 Work Session Minutes (2)/Regular Meeting Minutes/pattyr j/11/20/2008