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Utility Commission Meeting Packet ('J Hillsbo!2 CITY OF HILLSBORO UTILITIES COMMISSION PRELIMINARY AGENDA Tuesday, August 14, 2018 1:30 PM Public Meeting Conference Room 207 150 E. Main Street ******************************************************************************** Assistive Listening Devices (ALD) and sign language interpreters are available, at no cost, and can be scheduled for this meeting. Please provide at least 72 hours notice prior to the meeting. To obtain these services, call (503) 681-6100 or TTY (503) 681-6284. ******************************************************************************** ALL TESTIMONY IS ELECTRONICALLY RECORDED. The Utilities Commission meets and receives a general briefing over the lunch period which begins at 12:45 p.m. in Room 333. Occasionally, a Work Session is held in lieu of the briefing. Call to order is in Conference Room 207 at 1:30 pm. CALL TO ORDER 1. CONSENT AGENDA (The entire Consent Agenda is normally considered in a single motion. Any Commissioner may request that an item be removed for separate consideration.) A. Approve regular meeting minutes from July 10, 2018. 2. COMMUNICATIONS AND NON-AGENDA ITEMS This is an opportunity for members of the public to address the Utilities Commission, and for staff to deliver to the Commission communication from other departments or the public. Public testimony is limited to three minutes per person. A. None scheduled. 3. BUSINESS A. Consider forwarding a recommendation to City Council for approval of Cultural Resources Programmatic Agreement between the Corps of Engineers, State Historical Preservation Office, Tualatin Valley Water District and City of Hillsboro. Staff Report – Niki Iverson B. Consider Approval of the Second Amendment to the Second Developer Agreement between TVWD, City of Hillsboro, and GLC-South Hillsboro, LLC for water system improvements in the southerly extension of Cornelius Pass Road. Staff Report – Kevin Hanway C. Consider approval of Gordon Faber Recreation Complex Hydroelectric Turbine Competitive Bid Exemption. Staff Report – Tyler Wubbena 4. PUBLIC HEARING (These items may result in actions by the Commission.) A. Consider approval of Gordon Faber Recreation Complex Hydroelectric Turbine Competitive Bid Exemption. Staff Report – Tyler Wubbena 5. DISCUSSION ITEMS (These items may result in actions by the Commission.) A. Annual Conservation and Rebate Program Update. Staff Report – Amy Meaut B. Utilities Commission Financial Report. Staff Report – Michelle Molgaard C. Willamette Intake Facilities Board Meeting Report. Commissioner Report – David Judah D. Director’s Report. Staff Report - Kevin Hanway 6. EXECUTIVE SESSION A. Consider convening into Executive Session under: 1. ORS 192.660(2)(e) for deliberation with persons designated by the governing body to negotiate real property transactions. B. Take action(s) related to Executive Session, if needed. 7. ADVICE/INFORMATION ITEMS A. The next Utilities Commission meeting is scheduled for 1:30 pm on September 11, 2018, at the Civic Center, in Room C207. B. A Public Hearing to consider a proposed rate increase is scheduled for 6:30 p.m. on Monday, October 8, 2018, at the Civic Center in Rooms 113B & C. C. The Joint TVWD – Utilities Commission meeting is scheduled for Thursday, October 11, 2018, at Tualatin Valley Water District. The meeting will be held at 6:00 p.m. in the Board Room. D. The next regular JWC and BRJOC meetings are scheduled on Friday, October 12, 2018, at the Civic Center. The BRJOC meeting will be held at 12:30 pm in Room 113B, with the JWC meeting immediately following. E. The next WIF Board meeting is scheduled for October 29, 2018, at Tualatin Valley Water District Board Room at 6:00 pm. CITY OF HILLSBORO UTILITIES COMMISSION MINUTES Civic Center Conference Room 207 July 10, 2018 1:30 p.m. Tuesday 150 E. Main St. Regular Meeting ******************************************************************************** COMMISSIONERS: John Godsey and Deborah Raber STAFF: Kevin Hanway, David Kraska, Nesh Mucibabic, Michelle Molgaard, John Campbell, Enrique Vega, Lindsay Wochnick, Jessica Dorsey, Sophia Hobet, Niki Iverson, Tyler Wubbena, Lee Lindsey, ******************************************************************************** ALL TESTIMONY IS ELECTRONICALLY RECORDED. Call to order at 1:30 pm. REGULAR MEETING 1. CONSENT AGENDA (The entire Consent Agenda is normally considered in a single motion. Any Commissioner may request that an item be removed for separate consideration.) A. Approve regular meeting minutes from June 12, 2018. B. Approve meeting minutes from the June 19, 2018 special meeting. Motion made by Raber, seconded by Godsey, to approve the consent agenda as presented. The motion was passed unanimously with Commissioners Godsey and Raber voting in favor. 2. COMMUNICATIONS AND NON-AGENDA ITEMS This is an opportunity for members of the public to address the Utilities Commission, and for staff to deliver to the Commission other communications that have been received from the public. Public testimony is limited to three minutes per person. A. None scheduled 3. UNFINISHED BUSINESS A. None scheduled. 4. NEW BUSINESS A. Review Developer Agreement between City of Hillsboro, Tualatin Valley Water District, and Polygon Northwest Corporation for casings reimbursement. (No action today.) Staff Report – Dave Kraska, WWSP Director UTILITIES COMMISSION MINUTES – July 10, 2018 1 Kraska recapped the staff report giving history of the project and the work to be completed. Kraska stated there was a minor disagreement over the contract language. The cost estimate Polygon Northwest gave for the work to be performed is $500,000, which is approximately twice as much as the program has estimated for the work. Several reasons could be contributing to this cost difference, including the amount of gravel needed for fill. Once an agreement has been made regarding the cost, there will be a Special Committee meeting called in order to approve the agreement. No action was taken for this agenda item. B. Consider approval of a consultant contract award to CDM, for design of the Willamette Water Supply Program Water Treatment Plant. Staff Report – Dave Kraska, WWSP Director Kraska reviewed the staff report and history of this portion of the project. CDM was selected for the design of the new Willamette Water Supply System (WWSS) Water Treatment Plant out of the four bid proposals in a 3-2 vote. Kraska explained the scope of the agreement. He informed the Commission due to recent labor cost trends, an eight percent contingency has been requested in lieu of the five percent requested on previous Willamette Water Supply Program (WWSP) contracts. Commissioner Raber and Godsey asked several questions regarding items listed in the price agreement, which Kraska addressed. Motion made by Godsey, seconded by Raber to approve the consultant contract with CDM for design of the Willamette Water Supply Program Water Treatment Plant. Motion was passed with Commissioners Godsey and Raber both voting in favor. 5. DISCUSSION ITEMS (These items may result in actions by the Commission.) A. Property Acquisition Resolution of Need. WWSP Report – David Kraska Kraska gave the Commission a handout depicting the permanent easements needed for the pipeline, as well as temporary easements for construction activities. A resolution will be presented to the Tualatin Valley Water District (TVWD) Board next week in order to establish the public need for these lands and authorizes the WWSP to begin the process of negotiations with property owners to obtain these easements. This is an informational item only as TVWD is handling property acquisitions and land use portions of the project. B. Water Master Plan Update. Staff Report – Tyler Wubbena and Nesh Mucibabic Wubbena recapped the staff report explaining the Water Master Plan. He showed the Commission a diagram which showed the planned Future Growth Areas (FGAs) within Hillsboro. He also showed graphs of projected needs for water based on the development of the FGAs. Wubbena discussed the different projection models and how they were calculated. Various options for meeting the projected water needs were discussed including water treatment plant capacity and emergency storage capacity. It was conveyed to the Commission that planning for the future water treatment plant capacity and storage capacity is a fine balance. If a conservative approach is UTILITIES COMMISSION MINUTES – July 10, 2018 2 taken and development does not occur as quickly as anticipated, water rates will be higher. However, if demand is greater than anticipated, it could mean building larger expansions either under high cost and schedule pressure, or without participation by partners to share in the costs. Commissioner Godsey stated he wished to ensure minimal impacts on water rates. Emergency water storage capacities were discussed. Wubbena covered anticipated average daily demands for water and what would be needed for storage capacity in the event that the City of Hillsboro was cut off from either the JWC or the WWSS WTP. Costs of increasing storage capacity as well as treatment plant capacity were discussed. Alternative methods of water storage and associated costs were discussed. Hanway summarized the discussion by confirming that the Commissioners felt 15 MGD capacity share in the Phase 1 of the WWSS WTP was the minimum level that should be included in the Water Master Plan. Both Commissioners Raber and Godsey showed interest in having additional emergency storage capacity if an opportunity presented itself
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