Board of Commissioners Regular Meeting Wednesday, January 27, 2021, 6:00 PM AGENDA Remote Meeting Access Join online: https://meetings.ringcentral.com/join meeting number: 1489201774 --OR-- Join by phone: 1-623-404-9000 Meeting number: 1489201774
CALL REGULAR MEETING TO ORDER Voice Roll Call Approval of Agenda PUBLIC COMMENT 1. CONSENT AGENDA 1.1 Approval of Minutes from December 16, 2020 Regular Meeting 1.2 2021 System Development Charges 1.3 Acceptance of Water Mains and Related Facilities for Miracle Heights 2. DISCUSSION ITEMS 2.1 Acceptance of FY 2019-20 Comprehensive Annual Financial Report and acknowledgment of receipt of the AU-C 260 letter 2.2 Convene Local Contract Review Board for consideration of Contract-specific Special Procurement 3. STAFF REPORTS 3.1 Manager’s Update 3.2 Engineering & Construction Reports 3.3 Operational Reports 3.4 Finance Report 4. BOARD BUSINESS 4.1 Board Calendar 4.2 Liaison Reports 4.3 Information Items 4.4 Future Agenda Items 5. WORK SESSION –Plans for New Administration and Operation Facility 6. ADJOURN
POSTED FRIDAY, JANUARY 22, 2020 PER REQUIREMENTS. The meeting site is accessible to persons with disabilities. Requests for an interpreter for the hearing impaired should be directed to Kim Anderson at 503-761-0220 or [email protected] at least 48-hours in advance.
Agenda Item 1.1
MINUTES A regular meeting of the Sunrise Water Authority Board of Commissioners was held on Wednesday, December 16, 2020 at 6:00 PM. The meeting was held remotely, by teleconference through RingCentral. Board Present: Chris Hawes, Chair; Andy Coate, Vice Chair; Kevin Bailey, Secretary; Gary Barth; Kevin O’Meara Board Absent: None Staff Present: Wade Hathhorn, General Manager; Denise Bergstrom, Finance Director; Tim Jannsen, Engineering Manager; Kim Anderson, Government Relations Manager, and Christin House, Customer Service Manager Visitors Present: Sherry French, CRW; Paul Gornick, OLWSD CALL REGULAR MEETING TO ORDER Hawes called the meeting to order at 6:01 p.m. ROLL CALL Chair Hawes announced that he had received a letter of resignation from Commissioner Barstow. Anderson performed roll call attendance. PUBLIC COMMENT - None APPROVAL OF AGENDA A motion to approve the agenda was made by Bailey and seconded by Barth. Motion carried unanimously. 1. CONSENT AGENDA Coate made a motion to approve the consent agenda, consisting of the items listed below, and Bailey seconded. The motion carried unanimously. 1.1 Approval of Minutes from November 18, 2020 Regular Meeting 2. DISCUSSION ITEMS 2.1 Adopt Resolution 2020-13, Declaration of Surplus Property Anderson noted that the model year of the vehicle being declared surplus was correct on the resolution provided but not on the staff report. A motion to adopt resolution 2020-13, Declaration of Surplus property was made by Bath and seconded by Bailey. Motion carried unanimously. 3. STAFF REPORTS 3.1 Manager’s Update Hathhorn commented that the Reservoir 11 project is about totally wrapped up and stated that it was a good project for us. O’Meara noted that the landscaping looks good. He noted that Amy Victor, the newly hired utility worker is onboard and working. He commented that she has flagging and other pertinent experience that has allowed her to get right to work. Hathhorn informed the Board that Sunrise is in compliance with all of the newly released OSHA Covid related requirements and that the plant operators have adjusted their schedules to create even greater separation of their staff. He also shared that there has been some conversation within the industry on vaccinations and the ability of employers to require it as a condition of employment. Hathhorn lauded the launching of an apprenticeship program for water treatment operators, which the Clackamas providers were instrumental is developing. The participants receive full time pay while engaged in
the program. It will be going before BOLI Board for approval. There was some discussion about the potential for placement of participants after the program. Hathhorn shared that Sunrise is hoping to beta test cloud file storage in the spring. He stated one aim is to eliminate hardware onsite. GIS and SCADA would potentially be migrated in the next few years. He discussed the other major benefit is that large data companies have much better capabilities for cyber security than we can provide at a more local level. 3.2 Engineering & Construction Reports Jannsen noted that he has a meeting next week to discuss an apartment complex meter sale and that a memory care facility is looking at a two-inch connection. He also noted that Parr Lumber has priced their water supply options and the interconnection with Dogwood Lane at High Ridge Court is the least cost option for them and that Eagle Landing Hotel is considering installing some additional improvements. He commented that meter sales have been strong this year. 3.3 Operational Reports Jannsen stated there was nothing of significance to report. 3.4 Finance Report Bergstrom stated that she is working on the audit and hopes to have it concluded in January. 4. BOARD BUSINESS 4.1 Board Calendar 4.2 Liaison Reports Barth noted that Wilsonville is planning to join the Regional Water Providers Consortium and that he would like to schedule a time to share a presentation about the role of the Consortium with the Board. 4.3 Information Items 4.4 Future Agenda Items 5. WORK SESSION –Plans for new Administration and Operation Facility Hathhorn stated that the cost estimate was not ready in time for this meeting and shared that work has been ongoing to reduce the scope. The meeting adjourned at 6:37 PM.
CHRIS HAWES, CHAIR KEVIN BAILEY, SECRETARY
Minutes of December 16, 2020 Page 2 of 2
Agenda Item – 1.2 SUNRISE WATER AUTHORITY
REGULAR BOARD MEETING January 27, 2021
SUBJECT 2021 System Development Charges
BOARD ACTION None required. Formal notice is being given to the Board of REQUESTED Commissioners regarding the 2021 System Development Charges.
EFFECTIVE DATE February 15, 2021
PRINCIPAL STAFF Tim Jannsen, Engineering Manager PERSON
DOCUMENTS Summary of 2021 System Development Charge calculations and associated ATTACHED rate schedules.
Summary
BACKGROUND In 2018, the Board authorized an approved methodology for establishing a system development charge (SDC), along with means for annual indexing. The analysis contained herein provides a summary of the 2021 SDC rate increase and related schedules.
ANALYSIS The SDC is comprised of two components: improvement (added capacity) and reimbursement (shared capacity). The Board has approved a methodology that applies an increase to both components of the SDC equivalent to the Construction Cost Index (CCI) reported by the Engineering News Record (ENR) as of December of each year. This year the ENR CCI went up by 6.02%. Applying the proper formula, last year’s (cash discounted) SDC of $9,436 was raised to $10,003 for 2021 – an increase of $567. The installation charge of $700 remained unchanged for 2021. Hence, the total cash discounted cost for an installed standard 5/8” X 3/4” meter (1.0 ERU) is $10,703, exclusive of any additional special “dig-in” charges.
OPTIONS None
STAFF RECOMMENDATION Review the 2021 SDC rate schedules and associated annual indexing.
January 27, 2021 Agenda Item 1.2 Page 1 of 1
Agenda Item – 1.3 SUNRISE WATER AUTHORITY
REGULAR BOARD MEETING January 27, 2021
SUBJECT Acceptance of Water Mains and Related Facilities for Miracle Heights
BOARD ACTION The Board of Commissioners is requested to accept the water mains and REQUESTED related facilities for Miracle Heights, a commercial development, south of SE Sunnyside Road and fronting on SE 147th Avenue and SE Oregon Trail Drive, all being in Section 1, Township 2 South and Range 2 East, W.M.
EFFECTIVE DATE January 27, 2021
PRINCIPAL STAFF Tim Jannsen, Engineering Manager PERSON
DOCUMENTS Signed Conveyance and Acceptance Document ATTACHED Vicinity Map
Summary
BACKGROUND Transfers of privately built water systems from the developer to the Authority are brought before the Board for Board acceptance.
ANALYSIS The water mains and related facilities for Miracle Heights have been constructed to the Authority’s specifications; the facilities have passed pressure tests and bacteriological tests. The developer, Millard Holdings, LLC, has conveyed the water mains and related facilities to the Authority in previous conveyance documents dated December 21, 2020 as presented in the attachment.
OPTIONS Option 1 – Approve the Board Action Requested Option 2 – Do Not Approve the Board Action Requested
STAFF RECOMMENDATION Staff recommends The Board of Commissioners accept the conveyance of water mains and related facilities for Miracle Heights, a commercial development.
January 27, 2021 Agenda Item 1.3 Page 1 of 1
Project Site
Sources: Esri, USGS, NOAA, Sources: Esri, Garmin, USGS, NPS
0 0.5 1 Overview Miles
Oregon Metro, Bureau of Land Management, State of Oregon GEO, State of Oregon, Esri, HERE, Garmin, INCREMENT P, Intermap, NGA, GeoEye, Maxar, Microsoft USGS, U.S. Forest Service
0 500 1,000 0 150 300 Overview Detail Feet Detail Feet
Date: 1/19/2021
by: jcziesch swa
Spatial Reference Name: NAD 1983 HARN StatePlane Oregon North FIPS 3601 Feet Intl Legend PCS: NAD 1983 HARN StatePlane Oregon North FIPS 3601 Feet Intl GCS: GCS North American 1983 HARN Datum: North American 1983 HARN Projection: Lambert Conformal Conic System Valve Hydrant Main Project Site Central Meridian: -120.5000 Miracle Heights Latitude of Origin: 43.6667 Longitude of Origin: 0.0000 Latitude of Center: 0.0000 Longitude of Center: 0.0000 False Easting: 8,202,099.7375 False Northing: 0.0000 Map Units: Foot AGENDA ITEM - 2.1 SUNRISE WATER AUTHORITY
REGULAR BOARD MEETING January 27, 2021
SUBJECT Acceptance of FY 2019-20 Comprehensive Annual Financial Report and acknowledgment of receipt of the AU-C 260 letter
BOARD ACTION The Board of Commissioners is requested to accept the Comprehensive REQUESTED Annual Financial Report (CAFR), and acknowledge receipt of the required communication letter to the Board (AU-C 260)
EFFECTIVE DATE N/A
PRINCIPAL STAFF Staff PERSON
DOCUMENTS Comprehensive Annual Financial Report (COA) ATTACHED Communication letter from Merina & Co (AU-C 260) Summary
BACKGROUND Sunrise Water is required by law to conduct an annual audit. Sunrise has chosen to engage Merina & Company, LLP to perform this task.
The Comprehensive Annual Financial Report (COA) has been prepared by Staff and audited by Merina & Company, LLP. The COA is a more comprehensive financial report than the standard audit Sunrise is required to complete. Previously, the COA was referred to with the acronym of the CAFR.
GASB committed to establishing a new acronym for the comprehensive annual financial report in December of 2020, when they were alerted that the commonly used acronym CAFR (generally pronounced KAFF-ur) sounds like the word kaffir, which is a profoundly offensive term directed at Black South Africans.
ANALYSIS If there are any questions after review of the audit document, staff will request Merina’s attendance at the February meeting to answer questions. The Board is asked to formally acknowledge receipt of the audit and of the communication letter from the auditors called the AU-C 260, by way of a motion.
STAFF Staff recommends the Board of Commissioners accept the RECOMMENDATION Comprehensive Annual Financial Report and acknowledge receipt of the required communication letter to the Board (AU-C 260).
January 27, 2021 Agenda Item 2.1 Page 1 of 2
Clackamas County, Oregon
COMPREHENSIVE ANNUAL FINANCIAL REPORT
Fiscal years ended June 30, 2020 and 2019
******
SUNRISE WATER AUTHORITY
CLACKAMAS, OREGON
COMPREHENSIVE ANNUAL FINANCIAL REPORT
For the fiscal years ended June 30, 2020 and 2019
Prepared by:
Sunrise Water Authority Finance Department
Wade Hathhorn, General Manager Denise Bergstrom, Finance Director Carol Bryck, Chief Financial Officer
10602 SE 129th Avenue Happy Valley, Oregon 97086
Sunrise Water Authority Clackamas County, Oregon
Table of Contents Page Number INTRODUCTORY SECTION: Letter of Transmittal i Board of Commissioners v Organization Chart vi
FINANCIAL SECTION: Independent Auditors' Report 1 Management’s Discussion and Analysis 4
Basic Financial Statements Statements of Net Position 14 Statements of Revenues, Expenses and Changes in Net Position 15 Statements of Cash Flows 16 Notes to the Basic Financial Statements 18
REQUIRED SUPPLEMENTARY INFORMATION: Schedule of Proportionate Share of the Net Pension Liability 58 Schedule of Contributions - Pension 59 Schedule of Proportionate Share of Other Post-Employment Benefits Liability Retiree Health Insurance Account 60 Schedule of Changes in Total Other Post-Employment Benefits Liability and Related Ratios 61 Schedule of Contributions Other Post-Employment Benefit Liability Retiree Health Insurance Account 62 Schedule of Contributions for Other Post-Employment Benefits Implicit Rate Subsidy 63
SUPPLEMENTARY INFORMATION: Budgetary Fund Descriptions 64 Combining Balance Sheet – All Funds (Budgetary Basis) 65 Combining Schedule of Revenue, Expenditures and Changes in Fund Balance – Actual and Budget 66 Schedule of Revenues and Expenditures and Changes in Fund Balance– Actual and Budget: General Fund 67 Reserve Fund 68 Construction Fund – SDC Fund 69 Revenue Bond Reserve Fund 70
Sunrise Water Authority Clackamas County, Oregon
Table of Contents Page Number
STATISTICAL SECTION: Statistical Descriptions 71 Schedule of Net Position by Component – Last Ten Years 72 Schedule of Changes in Net Position – Last Ten Years 73 Distribution of Water Sales – Last Ten Years 75 Largest Water Consumers – Fiscal Years 2019 and 2010 76 Residential Bi-monthly Rates and Service Charge– Last Ten Years 77 Commercial and Monthly Customers Rates and Services Charges – Last Ten Years 78 System Development Charges and Meter Sales – Last Ten Years 79 Pledged Revenue for Senior Water Revenue Bond Debt – Last Ten Years 80 Pledged Revenue for Subordinate Water Revenue Bond Debt – Last Ten Years 81 Ratio of Bonded Debt to Personal Income – Last Ten Years 82 Water Loss Analysis – Last Ten Years 83 Operational Statistics – Last Ten Years 84 Number of Employees – Last Ten Years 85 Economic and Demographic Statistics – Last Ten Years 86 Major Employers within Clackamas County– Fiscal Years 2019 and 2010 87
AUDIT COMMENTS AND DISCLOSURES: Independent Auditor’s Report on Compliance and on Internal Control Over Financial Reporting on an Audit of Financial Statements Performed in Accordance with Oregon State Regulation 88
INTRODUCTORY SECTION
10602 SE 129th Avenue * Happy Valley, OR 97068 Voice: (503) 761-0220 * Fax (503) 761-7406
December 21, 2020
Board of Commissioners Sunrise Water Authority Happy Valley, Oregon 97086
We are pleased to submit the Comprehensive Annual Financial Report (CAFR) for Sunrise Water Authority (Sunrise) for the fiscal year ended June 30, 2020. Finance and Management prepared this report and are responsible for the accuracy, completeness, and fairness of all data presented and representations made therein. We believe the data presented is accurate in all material aspects and the manner in which it is presented fairly discloses the cash flow for fiscal year 2019-20 and the agency’s financial position at June 30, 2020. All disclosures necessary to enable the reader to gain the maximum understanding of Sunrise’s financial activities have been included.
Merina and Company, LLP, Certified Public Accountants, have issued an unmodified opinion on Sunrise Water Authority’s financial statements for the year ended June 30, 2020. The independent auditor’s report is located at the front of the financial section of this report.
Accounting Principles Generally Accepted in the United States of America (GAAP)
Generally accepted accounting principles (GAAP) requires that management provide a narrative introduction, overview and analysis to accompany the basic financial statements in the form of the Management’s Discussion and Analysis (MD&A). This letter of transmittal is designed to complement the MD&A and should be read in conjunction with it. Sunrise’s MD&A can be found immediately following the independent auditors report on the financial statements.
GAAP also requires that the basic financial statements present Sunrise and all component units, if any, in the reporting. All significant activities and organizations with which Sunrise exercises oversight responsibility have been included. Sunrise has no component units.
State of Oregon Budget Law
An adopted annual budget is required by Oregon Revised Statutes (ORS) Chapter 294. The budget is required to be in place by the end of the preceding fiscal year. The annual budget is intended to serve as a financial plan, operational plan and guide for Sunrise’s activities. Sunrise maintains all accounting records by fund. These funds are described in the Supplementary Information section. A proposed budget is prepared by fund and presented to a Budget Committee, the Board of Commissioners and the
i public for comment. A series of public meetings and hearings are held for the budget to be formally adopted by the Board of Commissioners, as prescribed by law. Once adopted, budget changes must be approved by resolution of the Board of Commissioners.
Reporting Entity
Sunrise was formed on November 9, 2000 under the provisions of Oregon Revised Statutes (ORS) Chapter 450.680 for the purpose of providing potable water to residents. Sunrise Water Authority was created in a merger of the Mt. Scott Water District and Damascus Water District, along with a partnership from the City of Happy Valley. Sunrise is located in the northwestern portion of Clackamas County, with a service area of approximately twenty-one (21) square miles and a population of approximately 50,000 residents. Sunrise is a municipal corporation governed by a seven (7) member, elected board serving staggered, four year terms. The Board of Commissioners set policy and appoint a General Manager who is charged with the management of the agency.
Water System and Supply
Sunrise receives water from several supply sources, including the North Clackamas Water Commission (NCCWC) water treatment plant and the Clackamas River Water District (CRW). The NCCWC is a separate governmental entity formed under Oregon Revised Statues (ORS) Chapter 190 in cooperation with the Oak Lodge Water Services District and the City of Gladstone for the purpose of constructing, operating and maintaining a water treatment plant and associated transmission facilities. Sunrise owns a 48% share in the NCCWC and purchases water from that entity at cost. Sunrise also purchases water from CRW under a supply agreement that extends through 2021. Under that agreement, Sunrise purchases 2.5 million gallons per day (MGD) under a minimum annual volume. In addition, Sunrise owns and maintains a series of local groundwater wells it uses to supplement peak summer-time demand, as well as to operate an aquifer storage and recovery system.
Sunrise serves its customers through a transmission and distribution system comprised of approximately 245 miles of pipe (2 to 24 inches in diameter), 16 pump stations, and 14 reservoirs with a total storage capacity of approximately 21.6 million gallons. All reservoirs are covered and secured. Sunrise also maintains more than 1,500 fire hydrants, 6,700 valves and approximately 16,650 meters.
In November 2013, Sunrise entered into an intergovernmental agreement (under ORS 190) with CRW to form the Clackamas Regional Water Supply Commission (CRWSC). The CRWSC is overseen by a separate Board of Commissioners and was established to allow for the consolidation of operations between the two agencies and make effective use of shared assets and resources. Under the agreement, CRW has set aside 10 MGD of supply capacity from their treatment plant for future water sales within the CRWSC. The existing supply agreement with CRW for 2.5 MGD is included as part of the 10 MGD authorized under the CRWSC.
ii Information on Economic Condition
The majority of Sunrise’s revenue is from water sales to residential and commercial customers within its service territory (i.e. no wholesale customers), along with fees collected for various operational components and new service connections. In addition, Sunrise maintains fire protection throughout its service territory, including a limited number of dedicated fire service connections. Sunrise also receives regular monthly lease payments from tenants using its land and facilities in association with various telecommunication (cell phone and radio) tower operations.
Customers are billed for both a fixed monthly service charge and the variable use of water. The fixed charge is scaled according to the meter size for a particular connection based on its equivalent residential units (ERUs), while the variable rate follows a prescribed inverted pricing structure that is intended to reflect peak capacity use and conservation. Water sales and consumption are reviewed on a monthly basis.
Back in 2003, 2004, and 2005, Sunrise issued a series of municipal bonds to finance the construction of needed transmission, storage and treatment facilities in the service of a growing population within its territory. Those series of municipal bonds were refinanced in July, 2014 under a consolidated single new issuance at more favorable interest rates, saving ratepayers about $1.9 million over the previous repayment schedule. Information about debt service and debt covenants is located in the Management Discussion and Analysis, Note 9 of the Notes to the Basic Financial Statements, and in the Statistical Section.
New service connections numbers for fiscal year 2019 equaled 238 new Equivalent Residential Units (ERUs), raising $2.1 million in SDC funds that were used to pay $1.7 million in annual water revenue bond debt under a budget of 200 new ERUs. As a result of the rate increase and new connections, cash reserves within the General Fund have steadily risen over the past couple of years. The expanded revenue has been used to increase needed operational labor and system maintenance, along with needed capital improvements. A three year rate plan for residential and commercial accounts was approved by the Board of Commissioners June 2015. That plan raised the monthly service fee (per ERU) by $2 in each of three consecutive years to: $14 in FY16, $16 in FY17 and $18. There were no rate increases in FY18 or FY19, but that will be revisited next year as the agency continues to further its renewal and replacement of key assets.
Effective February 1, 2019, the SDC for a standard (ERU) residential meter (5/8 X 3 /4) was increased to $9,958, a $75 increase over the prior year fee of $9,883. Sunrise performed a System Development Charge Update to meet a recently updated to 20-year Capital Plan. Annual adjustments to the SDC fee indexed against the annual change in the (December) Engineering News Record Construction Cost Indexes (CCI) for Seattle, Washington. Additional SDC fee historical data are located in the Statistical Section. Rising construction costs in the area may necessitate periodic updating of the estimated future cost of required capital for future service and the associated SDCs.
iii Internal Controls
Sunrise’s Board of Commissioners, Management Team and staff have a responsibility to protect Sunrise’s assets from fraud or loss. Accordingly, the Board of Commissioners, independent of a separate review by the Management Team, review monthly bank reconciliations, checks issuances, credit card purchases and other financial data. Internal controls are reviewed annually and changes evaluated to assure that the cost of the control does not exceed anticipated benefits. The objective is to provide reasonable, rather than absolute, assurance that the financial statements are free of any material misstatements.
Awards and Acknowledgements The Government Finance Officers Association of the United States and Canada (GFOA) awarded a Certificate of Achievement for Excellence in Financial Reporting to Sunrise Water Authority for its comprehensive annual financial report (CAFR) for the fiscal year ended June 30, 2018. This was the seventh year that Sunrise Submitted a report and subsequently received this prestigious award. We believe that our current comprehensive annual financial report continues to meet the Certificate of Achievement Program’s requirements and we are submitting it to the GFOA to determine its eligibility for another certificate.
The preparation of this report could not have been accomplished without the dedicated services of Sunrise’s staff. We wish to express our appreciation to all employees who continue to maintain the financial systems and participate in the preparation of the audit. Finally, we wish to thank you, the members of the Board of Commissioners, for your interest and support in the planning and conducting the operations of Sunrise in a responsible and progressive manner.
Respectfully Submitted
Wade E. Hathhorn General Manager
iv Sunrise Water Authority Clackamas County, Oregon
As of June 30, 2020
Board of Commissioners Zone Term Expires
Chris Hawes, Chair 7 June 30, 2021
Andy Coate, Vice Chair 4 June 30, 2021
Kevin Bailey, Secretary 1 June 30, 2023
Gary Barth 2 June 30, 2023
Wayne Barstow 3 June 30, 2023
Kevin O’Meara 5 June 30, 2021
Vacant 6
All Commissioners receive mail at the address below
Registered Agent
Wade E. Hathhorn 10602 S.E. 129th Avenue Happy Valley, Oregon 9708
v Board of Commissioners
Records Mgmt General Manager
Admin./HR Gov’t Affairs Finance Customer Service Engineering/Tech Construction Operations Services
Capital Projects Project Mgrs. Superintendent Accounting Billing/Customer Service
Field Service IT/System Services Procurement Operators
Payroll
vi
FINANCIAL SECTION
INDEPENDENT AUDITOR’S REPORT
Board of Commissioners Sunrise Water Authority Happy Valley, Oregon
Report on the Financial Statements
We have audited the accompanying financial statements of Sunrise Water Authority, as of and for the year ended June 30, 2020 and 2019, and the related notes to the financial statements, which collectively comprise Sunrise Water Authority’s basic financial statements as listed in the table of contents.
Management’s Responsibility for the Financial Statements
Sunrise Water Authority’s management is responsible for the preparation and fair presentation of these financial statements in accordance with accounting principles generally accepted in the United States of America; this includes the design, implementation, and maintenance of internal control relevant to the preparation and fair presentation of financial statements that are free from material misstatement, whether due to fraud or error.
Auditor’s Responsibility
Our responsibility is to express opinions on these financial statements based on our audit. We did not audit the financial statements of the North Clackamas County Water Commission, which represent 13%, 15% and 0.30% for June 30, 2020 and 14%, 16% and 1% for June 30, 2019, respectively, of the assets and deferred outflows, net position, and the revenue of the Authority. Those statements were audited by other auditors whose report has been furnished to us, and our opinion, insofar as it relates to the amount included for the North Clackamas County Water Commission, is based solely on the report of the other auditors. We conducted our audit in accordance with auditing standards generally accepted in the United States of America. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free from material misstatement.
An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the financial statements. The procedures selected depend on the auditor’s judgment, including the assessment of the risks of material misstatement of the financial statements, whether due to fraud or error. In making those risk assessments, the auditor considers internal control relevant to the entity’s preparation and fair presentation of the financial statements in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the entity’s internal control. Accordingly, we express no such opinion. An audit also includes evaluating the appropriateness of accounting policies used and the reasonableness of significant accounting estimates made by management, as well as evaluating the overall presentation of the financial statements.
We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinions.
Opinions
In our opinion, based on our audit and the report of other auditors, the financial statements referred to above present fairly, in all material respects, the respective financial position of Sunrise Water Authority, as of June 30, 2020 and 2019, and the respective changes in financial position and, where applicable, cash flows thereof, for the year then
-1- ended in accordance with accounting principles generally accepted in the United States of America.
Change in Accounting Principle
As discussed in Note 21 to the financial statements, the Sunrise Water Authority adopted new accounting guidance, GASB Statement No. 95, Postponement of the Effective Date of Certain Authoritative Guidance. Our opinion is not modified with respect to this matter.
Other Matters Required Supplementary Information
Accounting principles generally accepted in the United States of America require that the required supplementary information, such as management’s discussion and analysis, as listed in the table of contents under required supplementary information, be presented to supplement the basic financial statements. Such information, although not a part of the basic financial statements, is required by the Governmental Accounting Standards Board, who considers it to be an essential part of financial reporting for placing the basic financial statements in an appropriate operational, economic, or historical context. We have applied certain limited procedures to the management’s discussion and analysis, schedule of proportionate share of the net pension liability, schedule of contribution – pension, schedule of proportionate share of other post-employment benefits liability retiree health insurance account, schedule of changes in total other post-employment benefits liability and related ratios, schedule of contributions other post-employment benefit liability retiree health insurance account, schedule of contributions for other post-employment benefits implicit rate subsidy, as listed in the table of contents under required supplementary information in accordance with auditing standards generally accepted in the United States of America, which consisted of inquiries of management about the methods of preparing the information and comparing the information for consistency with management’s responses to our inquiries, the basic financial statements, and other knowledge we obtained during our audit of the basic financial statements. We do not express an opinion or provide any assurance on the information because the limited procedures do not provide us with sufficient evidence to express an opinion or provide any assurance. Supplemental and Other Information
Our audit was conducted for the purpose of forming opinions on the financial statements that collectively comprise Sunrise Water Authority’s basic financial statements. The introductory section, supplementary information, and statistical section are presented for purposes of additional analysis and are not a required part of the basic financial statements.
The supplementary information, as listed in the table of contents, is the responsibility of management and was derived from and relates directly to the underlying accounting and other records used to prepare the basic financial statements. Such information has been subjected to the auditing procedures applied in the audit of the basic financial statements and certain additional procedures, including comparing and reconciling such information directly to the underlying accounting and other records used to prepare the basic financial statements or to the basic financial statements themselves, and other additional procedures in accordance with auditing standards generally accepted in the United States of America by us and other auditors. In our opinion based on our audit, the procedures performed as described above, and the report of the other auditors, the information is fairly stated, in all material respects, in relation to the basic financial statements as a whole.
The introductory and statistical sections have not been subjected to the auditing procedures applied in the audit of the basic financial statements and, accordingly, we do not express an opinion or provide any assurance on them.
Reports on Other Legal and Regulatory Requirements
Other Reporting Required by Oregon Minimum Standards
In accordance with Minimum Standards for Audits of Oregon Municipal Corporations, we have also issued our report dated December 23, 2020, on our consideration of Sunrise Water Authority’s compliance with certain provisions of laws and regulations, including the provisions of Oregon Revised Statutes as specified in Oregon
-2- Administrative Rules. The purpose of that report is to describe the scope of our testing of compliance and the results of that testing, and not to provide an opinion on compliance.
For Merina+Co Tualatin, Oregon December 23, 2020
-3- Sunrise Water Authority Clackamas County, Oregon
Management’s Discussion and Analysis
As management of Sunrise Water Authority (SWA, Sunrise, or Authority), we offer this discussion and analysis of the basic financial statements. This narrative is for fiscal year 2019-2020, ending on June 30, 2020. We encourage readers to consider the information presented in this analysis in conjunction with the actual financial statements and supplementary information contained herein.
Financial Highlights
The agency’s assets exceeded its liabilities by $99,176,646, an increase of $8,866,740 or 9.8% over fiscal year 2018-19.
Total assets and deferred outflows are valued at $109,046,246 with current unrestricted and restricted assets valued at $11,694,184 and $8,830,394, respectively. Other assets of $5,047,883 represent water rights net of amortization, Net OPEB Asset and other long-term receivables. Other noncurrent assets include Investment in NCCWC of $14,544,224 and capital assets of $66,248,658 net of accumulated depreciation and related debt.
Current assets increased $1,294,520 or 7.6%, associated with increased cash inflows related to SDCs from the sales of meters offset by construction spending on reservoir 11 and the 152nd reservoir.
Total liabilities and deferred inflows are valued at $9,869,600 with current and noncurrent liabilities at $2,939,200 and $6,684,490, respectively. Long-term debt is $5,953,372 of the total liabilities, of which $1,635,802 are classified as a current liability due within one year (i.e. the annual installment payment).
The increase in net position and net income for the year was $8,866,740 This figure includes income from operations of $6,159,965, non-operating revenues of $289,652, infrastructure contributions of $2,117,123 and matching revenue for a pension side-account contribution from the state of Oregon of $300,000.
Overview of the Financial Statements
The discussion and analysis are intended to serve as an introduction to Sunrise Water Authority’s basic financial statements. Sunrise is a self-supporting entity and follows enterprise fund reporting. The financial statements are presented using the economic resources measurement focus and the accrual basis of accounting. The annual report consists of the following main components:
Statement of Net Position - presents the current and long-term portions of assets and liabilities separately and may provide a useful indicator of whether the financial position of Sunrise is improving or deteriorating.
Statement of Revenues, Expenses and Changes in Net Position - presents information showing how net position changed as a result of current year operations. Regardless of when cash is affected, all changes in net position are reported when the underlying transactions occur. As a result, there are transactions included that do not affect cash until future fiscal periods, e.g. accrued paid time off.
Statement of Cash Flows - presents information showing how Sunrise’s cash changed as a result of current year operations. The cash flow statement is prepared using the direct method and includes the reconciliation of operating income to net cash provided by operating activities (indirect method) as required by GASB 34.
- 4 - Management’s Discussion and Analysis
Financial Analysis
Supplementary information is essential to a complete understanding of the data provided in the financial statements. Please refer to the notes to the basic financial statements and the budgetary schedules (included later in the financial report) for additional information.
Net Position
As noted earlier, net position may serve as a useful indicator of the Authority’s financial position over time. As shown below in Table 1, the Authority’s assets exceeded liabilities by $99.2 million on June 30, 2020, and reflect an increase of $8.7 million or 9.8% over the Authority’s net position at the close of fiscal year 2019. Net position for the Authority has increased by nearly $17.5 million since fiscal year 2018, a two-year increase of 21.5%.
Table 1 Net Position FY 2019-2020
2019 Difference Percent 2018 2020 Restated 2020-2019 Change Restated
Current Assets $ 18,281,397 $ 16,986,877 $ 1,294,520 7.6%$ 21,295,411 Noncurrent Assets 88,083,946 83,489,448 4,594,498 5.5% 71,865,705 Total Assets 106,365,343 100,476,325 5,889,018 5.9% 93,161,116 Deferred Outflows 2,680,903 1,031,133 1,649,770 160.0% 796,150
Current Liabilities Payable 2,939,200 3,050,727 (111,527) -3.7% 2,867,215 Noncurrent Liabilities 6,684,490 7,818,113 (1,133,623) -14.5% 9,263,997 Total Liabilities 9,623,690 10,868,840 (1,245,150) -11.5% 12,131,212 Deferred Inflows 245,910 328,712 (82,802) -25.2% 193,571
Net Position Net Investment in Capital Assets 65,333,769 59,427,787 5,905,982 9.9% 46,372,166 Restricted 8,863,636 4,117,856 4,745,780 115.2% 2,422,135 Unrestricted 24,979,241 26,764,263 (1,785,022) -6.7% 32,838,182
Total Net Position $ 99,176,646 $ 90,309,906 $ 8,866,740 9.8%$ 81,632,483
At $65.3 million, net investment in capital and other assets is the largest portion, of net position. The current year increase came at the expense of unrestricted net position as part of the planned, “pay as you go” strategy for funding infrastructure expansion. The Authority’s capital assets include land, buildings, equipment, pump stations, reservoirs, wells, pipelines and water rights. The debt spent to acquire these assets and the investment in NCCWC is also included in the Authority’s Net Investment in Capital and Other Assets position, effectively reducing the Authority’s net position from the carrying value of Capital Assets and Other Assets. These assets are used to provide water services to customers and are not available for future spending.
Current and other assets – unrestricted, are composed primarily of cash and investments totaling $16.3 million, accounts receivable, inventory and other assets. These assets have increased $1,294,520 due to an increase in SDC revenues collected. Noncurrent Assets include capital assets, assets held for sale, investment in NCCWC, debt service, system development charges (SDCs), pension, post employment benefits (OPEB) and water rights received in the transfer of plant assets to NCCWC in prior years. The water rights will be used for future water requirements due to expected growth. The Investment in NCCWC is impacted by the results of their operations and member contributions.
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Management’s Discussion and Analysis
Financial Analysis (Continued)
Deferred outflows are for the bond refunding, pension and OPEB. The 160% increase of $1.6 million is mostly due to participation in the pension employer incentive fund.
Long-term liabilities include water revenue bond debt, and net pension liability. See note 9 of the Notes to the Basic Financial Statements for additional information on long-term debt.
Deferred inflows are for leases, pension and OPEB. The 25.2% decrease of $82 thousand is mostly due to changes in lease and pension calculations.
Change in Net Position
As shown in Table 2 on the next page, the Authority’s operating, non-operating and capital activities increased net position by $8.9 million, an increase of 9.8% from fiscal year 2019, and $17.5 million 21.5% from fiscal year 2018.
The Authority’s increase in net position is due to the combined changes of the following major components:
The Authority generated $15.3 million in operating revenues, an increase from fiscal year 2019 of $2.2 million or 16.5% and an increase from fiscal year 2018 of $2.4 million or 18.5%. The System Development Revenues (SDCs) generated 30.2% of this operating revenue in FY20 and 15.9% in FY19. Although the SDCs are operating revenues, they have historically been highly volatile and unreliable. In addition to the unpredictability of SDCs, the use of SDC fees collected are restricted and thus they are not included as a source available in budgeting for operations.
Operating expenses increased 6.9% from $8.6 million in fiscal year 2019 to $9.2 million in fiscal year 2020. Overall, operating expenses have increased 17.6% since fiscal year 2018. In FY20, Materials & Services decreased by $128,000 in meter maintenance, but that was offset by legal fees, increases related to the change to monthly billing, and increased expenses covered by the Reserve fund making the net increase negligible at .1%. The change in water purchases was also negligible with a decrease of .9%. Over half the increase in FY20 operating expense related to the growth in our pension liability calculated by our outside actuary. The growth in FY20 over FY18 was spread evenly among Materials & Services, Water Purchases, Depreciation, and Personnel if the PERS actuarial cost is excluded.
The Authority generated net operating income of $6.2 million in fiscal year 2020, which produced an operating margin of 40.2% as compared to 34.8% in fiscal year 2019 and 39.8% in fiscal year 2018.
Net non-operating revenues (expenses) were $289,652 in fiscal year 2020 compared to $407,793 in fiscal year 2019. This decrease is due to less income on investment in NCCWC, a joint venture, earnings on investments, leases and a reduction in interest expenses. See Note 11 of the Notes to the Basic Financial Statements for additional information on the joint venture.
Infrastructure contributions were $2,117,123 in fiscal year 2020 compared to $3,688,401 in fiscal year 2019. Infrastructure contributions vary year-to-year based upon the level of development activity.
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Management’s Discussion and Analysis
Financial Analysis (Continued)
Table 2 Change in Net Position FY 2019-2020 Other 798,026 813,971 (15,945) -2.0% 710,906 Total Operating Revenues 15,336,001 13,164,508 2,171,493 16.5% 12,947,222
O PERATING EXPENS ES :
Personal Services 3,209,583 2,680,867 528,716 19.7% 2,478,847 Water Purchases 1,795,271 1,810,974 (15,703) -0.9% 1,575,037 Materials and Service 2,372,634 2,370,743 1,891 0.1% 2,165,274 Depreciation and Amoritization 1,798,549 1,720,695 77,854 4.5% 1,580,403 Total Operating Expenses 9,176,037 8,583,279 592,758 6.9% 7,799,561
NET INCOME(LOSS) FROM OPERATIONS 6,159,964 4,581,229 1,578,735 34.5% 5,147,661
NON-OPERATING REVENUES (EXPENS ES ):
Earnings on Investments 336,748 453,023 (116,275) -25.7% 327,946 Gain (Loss) on Sale of Assets 15,640 16,160 (520) -3.2% (80) Gain (Loss) on Investment in NCCWC 47,659 107,804 (60,145) -55.8% (267,842) Interest Expenses (110,394) (169,194) 58,800 -34.8% (225,460) Total Nonoperating Revenues and (Expenses) 289,653 407,793 (118,140) -29.0% (165,436) Net Income (Loss) before Contributions 6,449,617 4,989,022 1,460,595 29.3% 4,982,225
Infrastructure Contributions 2,117,123 3,688,401 (1,571,278) -42.6% 480,490
Special Items 300,000 - 300,000 NA - Change in Net Position 8,866,740 8,677,423 (110,683) 2.2% 5,462,715
NET POSITION, BEGINNING 90,309,906 81,632,483 8,677,423 10.6% 74,852,326 Adjustment to Net Position, Prior period - - NA 1,317,442 Adjusted Net Position, Beginning 90,309,906 81,632,483 8,677,423 10.6% 71,265,143 NET POSITION, ENDING $ 99,176,646 $ 90,309,906 $ 8,566,740 9.8%$ 81,632,483
Fiscal year 2020 operating revenues increased by $1,578,736 or 34.5% compared with fiscal year 2019 operating revenues. Water revenues comprised 64.6% and 77.9% of the Authority’s operating revenues for fiscal year 2020 and fiscal year 2019 respectively, a decrease of $(348,143), or -3.4%, in fiscal year 2020 over fiscal year 2019 and an increase of $26,456 or .%, for fiscal year 2020 over fiscal year 2018. Fiscal year 2018 was the last of a three year series of water rate hikes. FY20 had a 1% decrease in billed revenue during the most variable water usage season of July through October, while FY19 had a 4% increase in billed water usage in July through October than during that same variable period in FY18.
System Development Charges (SDC) are a significant component of operating revenue. SDC revenue increased by $2,535,581 or 121.3% from fiscal year 2019 and increased $2,275,203 or 96.8% from fiscal year 2018.
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Management’s Discussion and Analysis
Financial Analysis (Continued)
SDC revenue is equivalent to the sale of 506, 191 and 221 new service connections during fiscal year 2020, fiscal year 2019, and fiscal year 2018, respectively. The SDC fee is reviewed and adjusted annually based upon a methodology adopted in 2018.
Figure 1 Operating Revenue Comparison FYs 2018 to 2020
$11,000,000
$10,000,000
$9,000,000
$8,000,000
$7,000,000
$6,000,000 2020 $5,000,000 2019
Annual Revenue $4,000,000 2018
$3,000,000
$2,000,000
$1,000,000
$‐ Water Sales System Other Operating Development Revenue Charges Revenue Category
Total operating expenses for fiscal year 2020 increased $592,758 or 6.9% from fiscal year 2019. Since fiscal year 2018, total operating expenses have increased 17.6%.
Personnel services increased by $528,716 or 19.7% from fiscal year 2019. This compares with the $202,020 or 8.1% increase from fiscal year 2018 to 2019. Of the fiscal year 2020 increase, 55.9% is related to the actuarially calculated PERS & OPEB cost. Sunrise contracts with CRW through CRWSC for financial services, procurement and SCADA support, as well as other areas of operations.
Water purchases decreased by $(15,703) or (.9%) in fiscal year 2020 from fiscal year 2019 due to less water usage in the community and is also reflected in the reduced revenue from water billings.
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Management’s Discussion and Analysis
Financial Analysis (Continued)
Materials and services costs were $1,890 or .1% higher in fiscal year 2020 than fiscal year 2019. The Right of Way pass through fees are a component of Materials and Services and increased $36,546 as our Happy Valley customer base has grown, as did our billing costs for new customers and switching all customers over to monthly billing, but the overall materials and service costs were essentially the same due to offsetting savings. We experienced savings mostly in the areas of utility bills and system maintenance costs. We needed less electricity to run our pumping stations due to reduced water usage by our customers, and we reduced our pipe abandonment expense along HWY 212 when we scaled back the project after ODOT requirements increased the project costs.
Figure 2 Operating Expense Comparison FY 2018 - 2020
$3,500,000
$3,000,000
$2,500,000
$2,000,000
2020 $1,500,000 2019 Annual Expenses $1,000,000 2018 $500,000
$‐ Personnel Water Materials Depr and Services Purchases and Amort Services
Expense Category
Total non-operating revenues (expenses) decreased by $(118,141) or -29.0% from fiscal year 2019. The decrease is primarily due to lower interest earned on investments in the local government investment pool of $(116,277) and a reduced gain on our investment in the NCCWC. Total non-operating revenues (expenses) also were impacted by the continuing annual reduction of interest expense related to our long-term debt. Interest expense decreased by $58,800 in fiscal year 2020 from fiscal year 2019.
Infrastructure contributions, while not a part of non-operating revenues and expenses, do have an impact on the capital of the organization. These contributions from developers vary by year depending upon the development activity within the Authority’s boundaries. Figure 3 on the next page shows how the infrastructure contributions dwarf all other non-operating revenue sources.
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Management’s Discussion and Analysis
Financial Analysis (Continued)
Figure 3 Non-operating Revenue (Expense) Comparison FY 2018 – 2020
$3,750,000
$3,500,000
$3,250,000
$3,000,000
$2,750,000
$2,500,000
$2,250,000
) $2,000,000
$1,750,000 Expense $1,500,000
$1,250,000 2020 $1,000,000 2019 Annual Revenue ( $750,000 2018 $500,000
$250,000
$‐
$(250,000)
$(500,000)
$(750,000)
$(1,000,000)
Non‐operating Revenue (Expense)
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Management’s Discussion and Analysis
Financial Analysis (Continued)
Table 3 Total Revenues, Total Expenses, Changes in Net Position 2019 Difference Percent 2018 2020 Restated 2019-2018 Change Restated Operating Revenues $ 15,336,001 $ 13,164,508 2,171,493$ 16.5%$ 12,947,222 Non-operating Revenues 400,047 576,987 (176,940) -30.7% 327,946 Total Revenues 15,736,048 13,741,495 1,994,553 14.5% 13,275,168
Operating Expense 9,176,037 8,583,279 592,758 6.9% 7,799,561 Nonoperating Expenses 110,394 169,194 (58,800) -34.8% 493,382 Total Expenses 9,286,431 8,752,473 533,958 6.1% 8,292,943
Infrastructure Contributions 2,117,123 3,688,401 (1,571,278) -42.6% 480,490
Special Items 300,000 - 300,000 NA 480,490 Total Assets and Deferred Outflows$ 8,866,740 $ 8,677,423 $ 189,317 2.2%$ 5,462,715
Total Revenues and Expenses
Total fiscal year 2020 revenues and expenses are shown in Table 3 above. Total revenues increased by $1,994,553 or 14.5% over the prior year. Total revenues were $15,736,048, $13,741,495, and $13,275,168 for fiscal years ended June 30, 2020, 2019, and 2018, respectively. Total expenses, including both operating expenses and non- operating expenses increased $533,958 or 6.1% from fiscal year 2019. Total expenses were $9,286,431, $8,752,473, and $8,292,943 for fiscal years ended June 30, 2020, 2019, and 2018, respectively.
In fiscal year 2020, the Authority’s financial statements reflect an overall $8.9 million increase in net position. This, combined with the increases in fiscal year 2019 and fiscal year 2018, indicates an ongoing strengthening of the Authority’s overall financial condition.
General Fund Budget Analysis
Total fiscal year 2020 general fund revenues decreased from 2019 revenue by $667,634 or 5.9% but exceed 2018 revenues by $29,192 or .3%. The $10,728,158 of general fund revenue was very close to general fund revenue budget, exceeding budget by only $38,158 or .4%.
Total fiscal year 2020 general fund expenditures decreased from 2019 expenditures by $(9,402,503) or -49.4% mostly because infrastructure capital improvements paid by the SDC construction fund rather than by the general fund. Total expenditures were down $(3,078,650) or -37.7% from budgeted expenditures. Materials and services were below budget by $(820,356) or -19.9% mostly from reductions in water purchases, system maintenance and utility costs. Personnel expenses were below budget $(408,564) or -13.8% and capital expenditures were down $(1,849,730) or -172.8%. The capital expenditures savings from budget are temporary due to construction delays, but the personnel savings are permanent due to unfilled staff positions.
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Management’s Discussion and Analysis
Capital Assets and Debt Administration
Capital Asset Activity
The Authority’s investment in capital assets, net of depreciation, as of June 30, 2020 amounts to $66,248,658: $15.9 million in non-depreciating land, easement rights, property held for sale and construction in progress; $75.0 million in buildings, reservoirs, pipelines, pump stations, and equipment (office, automotive and construction). Capital assets increased $5,907,065 or 6.9% from fiscal year 2019. Figure 4 provides a breakdown of Authority capital assets by type and percentage in fiscal year 2020. Please see footnote 5 for additional information.
Figure 4 Distribution of Capital Assets1 FY 2020
Construction in Progress, 13.6%
Land, 2.8%
Buildings, 1.8%
Equipment, 5.3% Water System, 75.4% Held for Resale, 1.0% Easements, 0.1%
1Chart does not include accumulated depreciation in calculation of percentages
Debt Administration
Sunrise’s debt is categorized as water revenue obligation bonds (backed by the water revenue or other revenues of Sunrise) and contracts payable. For the year ended June 30, 2020, Sunrise had $5,953,372 in long-term water revenue bond obligations. On July 9, 2014, Sunrise issued Water Revenue Refunding Bonds for $14,490,000 to retire all outstanding bonds issued by the Authority. See footnote 9 for additional information on long-term debt.
Significant Future Impacts
Impact of GASB 87
Beginning with fiscal year 2021, the Authority will apply a new accounting standard to the financial statements, GASB statement No. 87, Leases. The primary objective of GASB No. 87 was issued June 2017 to better meet the information needs of financial statement users by improving accounting and financial reporting for leases by governments and increases the usefulness of governments’ financial statements. The impact of this standard has not been determined at this time.
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Management’s Discussion and Analysis
Requests for Information
This financial report is designed to provide the Board of Commissioners, taxpayers, creditors and investors with a general overview of the Sunrise Water Authority’s accountability for the financial resources it manages. Questions concerning any of the information provided in this report or requests for additional financial information should be addressed to the General Manager or the Finance Director, 10602 SE 129th Avenue, Happy Valley, Oregon 97086.
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BASIC FINANCIAL STATEMENTS
Sunrise Water Authority Clackamas County, Oregon Statements of Net Position June 30, 2020 and 2019
Restated ASSETS: 2020 2019 Current assets: Cash and investments $ 16,342,105 $ 14,707,685 Accounts receivable, net 1,569,934 1,881,371 Intergovernmental receivable 23,359 67,172 Prepaid expenses 120,691 94,987 Supply inventory 225,308 235,662
Total current assets 18,281,397 16,986,877 Noncurrent assets: Restricted cash ‐ deposits 2,243,181 1,961,527 Net OPEB Asset 33,242 15,766 Investment in NCCWC 14,544,224 14,496,565 Capital assets available for sale 877,234 115,358 Capital assets not being depreciated 15,054,608 12,925,348 Capital assets, net of accumulated depreciation 50,316,816 48,763,711 Capital assets, net of accumulated amortization 5,014,641 5,211,173
Total noncurrent assets 88,083,946 83,489,448 DEFERRED OUTFLOWS: Deferred charges on refunding 23,842 31,371 Deferred outflows related to pension 1,147,965 986,554 Deferred outflows related to OPEB 10,047 13,208 Deferred outflows related to PERS pension side account 1,499,049 ‐ Total assets and deferred outflows $ 109,046,246 $ 101,507,458 LIABILITIES: Current liabilities: Accounts payable $ 626,179 $ 933,472 Deposits 498,503 254,471 Payroll liabilities 98,848 97,365 Current portion of accrued paid time off 7,068 6,684 Interest payable 72,800 92,933 Current portion of long‐term debt 1,635,802 1,665,802
Total current liabilities 2,939,200 3,050,727 Noncurrent liabilities: Noncurrent portion of accrued paid time off 124,223 97,768 Noncurrent portion of long‐term debt 4,317,570 5,953,372 Net pension liability 2,178,005 1,706,090 Net OPEB liability 64,692 60,883
Total liabilities 9,623,690 10,868,840 DEFERRED INFLOWS: Deferred revenue ‐ leases 87,500 112,500 Deferred outflows related to pension 137,594 206,931 Deferred outflows related to OPEB 20,816 9,281
Total deferred inflows 245,910 328,712
Total liabilities and deferred inflows 9,869,600 11,197,552 NET POSITION: Net investment in capital assets 65,333,769 59,427,787 Restricted for: Debt service 1,591,429 1,591,429 Capital outlay 7,238,965 2,510,661 OPEB Benefits 33,242 15,766 Unrestricted 24,979,241 26,764,263
Total net position 99,176,646 90,309,906 Total liabilities, deferred inflows, and net position $ 109,046,246 $ 101,507,458
See accompanying notes to the basic financial statements. -14- Sunrise Water Authority Clackamas County, Oregon Statements of Revenues, Expenses and Changes in Net Position Fiscal Years Ended June 30, 2020 and 2019
Restated 2020 2019 OPERATING REVENUES: Water sales, net of discounts and allowances$ 9,911,932 $ 10,260,076 System development charges 4,626,043 2,090,462 Service installations 198,705 218,595 System extension 17,863 37,984 Leases and rents 224,546 185,448 Miscellaneous 356,912 371,943
Total operating revenues 15,336,001 13,164,508
OPERATING EXPENSES: Personnel services 3,209,583 2,680,867 Materials and services 4,167,905 4,181,717 Depreciation and amortization 1,798,549 1,720,695
Total operating expenses 9,176,037 8,583,279
Net income, (loss) from operations 6,159,964 4,581,229
NONOPERATING REVENUES (EXPENSES): Earnings on investments 336,748 453,023 Gain (loss) on disposal of capital assets 15,640 16,160 Gain (loss) on investment in NCCWC 47,659 107,804 Interest expense (110,394) (169,194)
Total nonoperating revenues (expenses) 289,653 407,793
Gain before contributions and special items 6,449,617 4,989,022
Infrastructure contributions 2,117,123 3,688,401
SPECIAL ITEMS: PERS pension side account revenue 300,000 ‐
Total special items 300,000 ‐
Change in net position 8,866,740 8,677,423
NET POSITION, BEGINNING 90,309,906 81,656,452
Prior period adjustment ‐ (23,969)
NET POSITION, ENDING $ 99,176,646 $ 90,309,906
See accompanying notes to the basic financial statements. -15- Sunrise Water Authority Clackamas County, Oregon Statements of Cash Flows Fiscal Years Ended June 30, 2020 and 2019
Restated 2020 2019
CASH FLOW FROM OPERATING ACTIVITIES: Cash received from customers$ 15,910,283 $ 13,611,335 Cash payments to employees for services (4,438,114) (2,700,434) Cash paid to suppliers for goods and services (4,490,548) (4,023,579)
Net cash provided (used) by operating activities 6,981,621 6,887,322
CASH FLOWS FROM CAPITAL AND RELATED FINANCING ACTIVITIES: Principal payments on long‐term debt (1,510,000) (1,450,000) Amortization of long‐term debt premium (155,802) (155,802) (Increase) decrease in long‐term receivables ‐ 1,589 Contributed capital 2,117,123 3,688,401 Purchase of capital assets (6,060,953) (13,310,216) PERS side account matching contribution 300,000 ‐ Proceeds from sale of capital assets 30,335 16,160 Loss on the sale of capital assets ‐ 132,173 Interest payments on long‐term debt (122,998) (180,998)
Net cash provided (used) by capital and related financing activities (5,402,295) (11,258,693)
CASH FLOWS FROM INVESTING ACTIVITIES: Earnings on investments 336,748 453,023
Net cash provided by investing activities 336,748 453,023
Net increase (decrease) in cash and cash equivalents 1,916,074 (3,918,348)
CASH AND CASH EQUIVALENTS, BEGINNING 16,669,212 20,587,560
CASH AND CASH EQUIVALENTS, ENDING $ 18,585,286 $ 16,669,212
STATEMENT OF NET POSITION ACCOUNTS Cash and investments $ 16,342,105 $ 14,707,685 Restricted cash ‐ deposits 2,243,181 1,961,527 $ 18,585,286 $ 16,669,212
See accompanying notes to the basic financial statements. -16- Sunrise Water Authority Clackamas County, Oregon Statements of Cash Flows Fiscal Years Ended June 30, 2020 and 2019
RECONCILIATION OF OPERATING INCOME TO NET CASH
2020 2019 Provided by (used by) operating activities Net income from operations $ 6,159,964 $ 4,581,229 Adjustment to reconcile operating income to net cash from operating activities: Depreciation and amortization 1,798,549 1,720,695 Decrease, (increase) in: Accounts receivable 311,437 62,236 Intergovernmental receivable 43,813 265,144 Prepaid expenses (25,704) (9,060) Supply inventory 10,354 21,712 Net OPEB Asset (17,476) (10,026) PERS side account (1,499,049) ‐ Increase, (decrease) in: Accounts payable (307,293) 258,041 Deposits 244,032 6,947 Payroll liabilities 1,483 (8,266) Other liabilities ‐ (112,555) Accrued vacation payable 26,839 16,293 Net pension liability 241,167 (19,434) Net OPEB liability 18,505 1,866 Deferred revenue ‐ leases (25,000) 112,500
Net cash provided by operations $ 6,981,621 $ 6,887,322
NON‐CASH INVESTING ACTIVITIES Change in investment in NCCWC $ 47,659 $ 107,804 Contributed infrastructure 2,117,123 3,688,401 PERS side account revenue 300,000 ‐
$ 2,464,782 $ 3,796,205
See accompanying notes to the basic financial statements. -17- Sunrise Water Authority Clackamas County, Oregon
Notes to Basic Financial Statements
1. Summary of Significant Accounting Policies
The basic financial statements of Sunrise Water Authority (SWA, Authority, Sunrise) have been prepared in conformity with generally accepted accounting principles in the United States of America (GAAP) as applied to governmental units. The Governmental Accounting Standards Board (GASB) is the accepted standard-setting body for establishing governmental accounting and financial reporting principles. The more significant accounting policies are described below.
The Financial Reporting Entity
The Sunrise Water Authority was formed under provisions of Oregon Statutes Chapter 450.680 for the purpose of providing potable water.
Sunrise Water Authority is a municipal corporation governed by an elected seven-member board. Generally accepted accounting principles require that these basic financial statements present Sunrise Water Authority (the primary government) and all component units, if any. Component units, as established by the GASB Statement No. 39, are separate organizations that are included in Sunrise’s reporting entity because of the significance of their operational or financial relationships with Sunrise. All significant activities and organizations with which Sunrise exercises oversight responsibility have been considered for inclusion in the basic financial statements. Sunrise has no component units.
Basis of Accounting
Sunrise’s funds are accounted for on an “economic resources” measurement focus. The basic financial statements present all funds as a unitary enterprise operation. All assets and liabilities, whether current or non- current, associated with this activity are included on the balance sheet. The operating statements present increases (revenues) and decreases (expenses) in net total assets. Sunrise utilizes the accrual basis of accounting. Revenues are recognized when they are earned, and expenses are recorded when the related fund liability is incurred. This basis of accounting is in accordance with generally accepted accounting principles.
Classification of Revenues and Expenses
Proprietary funds distinguish operating revenues and expenses from non-operating items. Operating revenues and expenses generally result from providing services and production and delivery of goods in connection with the proprietary fund’s principal ongoing operations. The principal operating revenues of the enterprise fund are water sales, system development charges and service installation fees. Water sales revenue is recorded when the service is rendered, including an estimated amount for unbilled services. Operating expenses for enterprise funds include Personnel Services, and Materials and Services used to administer and provide the cost of sales and services, along with depreciation on capital assets. All revenues and expenses not meeting this definition are reported as non-operating revenues and expenses.
Supplementary Information
Supplementary information is presented for purposes of additional analysis and is not a required part of the financial statements. Sunrise reports fund financial operations for budgetary and legal purposes in supplementary information. Budgetary funds only record those expenditures that affect current financial resources as opposed to the economic resources measurement focus presented in the basic financial statements. Principal and interest on general long-term debt is recorded as a fund liability only when due, or to the extent that it is expected to be liquidated with expendable financial resources. However, in the unitary enterprise
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Sunrise Water Authority Clackamas County, Oregon
Notes to Basic Financial Statements
1. Summary of Significant Accounting Policies, continued Supplementary Information, continued financial statements with full accrual basis of accounting, all expenditures affecting the economic resource status of the government must be recognized. Thus, the expense and related accrued liability for long-term portions of debt, interest, other postemployment benefits and compensated absences are included.
Since the supplemental information financial statements are presented on a different measurement focus and basis of accounting than the basic financial statements, a reconciliation is necessary to explain the adjustments needed to transform the fund-based financial statements into the unitary enterprise financial statements. This reconciliation can be found on the Combining Balance Sheet – All Funds (Budgetary Basis) as part of the supplementary information.
Interfund activity consists of transfers, services provided and/or used, reimbursements, advances and loans. As a general rule, the effect of interfund activity has been eliminated from the unitary enterprise financial statements.
Budget
A budget is prepared and legally adopted for each fund on the accrual basis of accounting in the main program categories required by the Oregon Local Budget Law. The budgets for all funds are adopted on a basis consistent with generally accepted accounting principles, except depreciation expense which is not recorded in budgetary statements. Sunrise began its budget process early in January of the fiscal year with the establishment of the budget committee. Recommendations are developed through late winter with the budget committee approving the budget in early spring.
Public notices of the budget hearing are generally published in early spring with a Public Hearing being held approximately three weeks later. The Board may amend the budget prior to adoption. However, budgeted expenditures for each fund may not be increased by more than ten percent. The budget is adopted, and appropriations are made no later than June 30th.
Expenditure budgets are appropriated at the following levels for each fund:
Personnel Services Debt Materials and Services Transfers Capital Outlay Operating Contingency
Expenditures cannot legally exceed the above appropriation levels. Appropriations lapse at fiscal year-end. Supplemental appropriations may occur, if the Board approves them, due to a need which was not determined at the time the budget was adopted. A supplemental budget may require hearings before the public, publications in newspapers and approval by the Board. Original and supplemental budgets may be modified by the use of appropriations transfers between the levels of control. Such transfers require approval by the Board. Management may not amend the budget without Board approval.
The budget amounts used in the supplemental data reflect both the original budget and any supplemental appropriation transfers approved by resolution by the Board. During the fiscal year, there was one change to the adopted budget, for a restatement of the interfund transfers.
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Sunrise Water Authority Clackamas County, Oregon
Notes to Basic Financial Statements
1. Summary of Significant Accounting Policies, continued
Expenditures in Excess of Appropriations and Deficit Fund Balance
Oregon state law requires disclosure of fund expenditures in excess of budgeted appropriations. For the year- ended June 30, 2020, the Authority had no expenditures above appropriation levels.
The Construction SDC Fund reported a deficit fund balance on a GAAP basis as of June 30, 2020. This deficit is due to internal loans from the General Fund and that have been spent on construction activities for improvements. The interfund loans or advances will be repaid over time with revenues collected from developers. For additional details on advances and interfund loans see Note 9B.
Cash and Investments
State statutes govern Sunrise’s cash management policies. Statutes authorize Sunrise to invest in banker’s acceptances, time certificates of deposit, repurchase agreements, obligations of the United States and its agencies and instrumentalities, and the Oregon State Treasurer's Local Government Investment Pool.
The cash and cash equivalents are defined as short-term, highly liquid investments that are both:
(1) Readily convertible to known amounts of cash. (2) So near their maturity that they present insignificant risk of changes in value because of changes in interest rates.
Generally, only investments with original maturities of three months or less meet this definition.
Investments are valued at fair value as required by GASB Statement No. 72, Fair Value Measurement and Application. The difference between fair value and cost is not material. Sunrise's investments, authorized under state statutes, are comprised of amounts deposited in the Oregon State Treasurer's Local Government Investment Pool.
Sunrise reports certain cash and investments as restricted because their use is limited by parties external to the Authority. Restrictions may be from bond indenture, imposed by creditors, other governments, laws and/or enabling legislation. Restricted assets will be used for specified purposes such as servicing bonded debt and construction of capital assets. For additional details on restricted cash balances, see the Note 1 on Net Position Restrictions.
Receivables and Payables
Activity between funds that are representative of short-term lending/borrowing arrangements outstanding at the end of the fiscal year are referred to as “Due to/Due from other funds” and are presented in the budgetary fund financial statements. Long-term borrowing or interfund loans in the budgetary fund financial statements are presented as loans receivable and payable. All of these are eliminated in the basic financial statements.
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Sunrise Water Authority Clackamas County, Oregon
Notes to Basic Financial Statements
1. Summary of Significant Accounting Policies, continued Receivables and Payables, continued
Accounts receivable are recorded as revenue when earned, including services earned but not billed. The receivables of the general fund include billing for residential and commercial customers utilizing Sunrise’s water. Water services can be disconnected if receivables remain unpaid. Accordingly, no allowance for doubtful accounts has been deemed necessary in the past. Yet, in the fiscal year ended 2020, inactive accounts and a more lenient leak adjustment policy contributed to an increase in uncollectible accounts and the recording of an allowance for future doubtful accounts was deemed necessary. This allowance is deducted against accounts receivable on the Statement of Net Position. For additional details on the allowance for doubtful accounts, see Note 3.
Accounts payable to vendors and contractors include general accounts payable, retainage payable, deposits payable and other accrued liabilities not included in short-term or long-term liabilities.
Prepaid Expenses and Supply Inventories
Certain payments to vendors reflect costs applicable to future accounting periods and are recorded as prepaid expenses.
Supply Inventory is valued at cost using the FIFO (first-in, first-out) method of accounting.
Property Held for Resale
Property held for resale is recorded as an asset and includes land and inventory stated at the lower of cost or market. At year-end no reductions in value were necessary, therefore recorded amounts were equal to original cost.
Capital Assets
As of July 1, 2017, capital assets are defined by Sunrise as assets with an initial individual cost of $5,000 and an estimated useful life in excess of one year. Such assets, which include land, buildings, equipment and vehicles, and water system (pipelines, reservoirs and pump stations) are stated at cost or estimated historical cost. Contributed infrastructure is stated at acquisition value. Maintenance and repairs are expended as incurred. Replacements that improve or extend the lives of property are capitalized.
Depreciation of capital assets has been recognized and reflected in the basic financial statements. Depreciation is not budgeted under the provisions of local budget law. Depreciation is calculated on the straight-line method based upon the estimated useful lives of the assets. Assets are installed and disposed on June 30, except for meters, hydrants and installs that are installed on December 31st. New assets are not depreciated in the year of installation, and disposed assets receive a full year of depreciation in the year of disposal. In 2020 and 2019, the estimated useful lives of all assets were reviewed and depreciation on the remaining useful lives was calculated prospectively on the lives below:
Water System 15-75 years Buildings & Components 20-50 years Equipment & Vehicles 5-20 years Land Improvements 15 years
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Sunrise Water Authority Clackamas County, Oregon
Notes to Basic Financial Statements
1. Summary of Significant Accounting Policies, continued
Other Assets
Other assets are water rights obtained in the Intergovernmental Agreement with the North Clackamas County Water Commission and are to be used by Sunrise for future water facilities expansion.
Amortization of other assets has been recognized and reflected in the basic financial statements. Amortization is not budgeted under the provisions of local budget law. Amortization is calculated on the straight-line method over forty years.
Contributed Capital
Contributed capital in the form of cash or other assets generally does not have to be returned to the contributor; such contributions, in compliance with GASB Statement No. 33, are recognized as revenue and an addition to capital assets. Capital assets contributed to the Authority are at acquisition value.
Deposits
In general, deposits represent developer funds collected by Sunrise primarily for performing plan review services, issuing rental hydrant meters, or as cash deposits in lieu of a maintenance bond. Deposits are held by Sunrise until the obligations for the projects have been completed or until the deposits are used to offset charges for water use, services, or are forfeited for damages or repairs on conveyed assets. These deposits are part of Sunrise’s restricted net position.
Deferred Outflows/Inflows of Resources
Deferred outflows of resources represent a consumption of net position that applies to a future period(s) and so will not be recognized as an outflow of resources (expense/expenditure) until then. Deferred outflows of resources follow assets on the Statement of Net Position.
Deferred inflows of resources represent an acquisition of net position that applies to a future period(s) and therefore will not be recognized as an inflow of resources (revenue) until that time. In the Statement of Net Position, this includes resources that are received before Sunrise has met eligibility requirements related to time.
For purposes of measuring the net pension (asset) liability, deferred outflows of resources and deferred inflows of resources related to pensions, and pension expense, information about the fiduciary net position of the Oregon Public Employees Retirement System (OPERS) and additions to/deductions from OPERS’s fiduciary net position have been determined on the same basis as they are reported by OPERS. For this purpose, benefit payments (including refunds of employee contributions) are recognized when due and payable in accordance with the benefit terms.
Paid Time Off
Paid time off pay is vested when earned. Employees earn annual paid time off leave based on length of service to Sunrise. Unpaid vested paid time off leave is shown in current liabilities on the balance sheet and recorded as expense when earned.
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Sunrise Water Authority Clackamas County, Oregon
Notes to Basic Financial Statements
1. Summary of Significant Accounting Policies, continued
Retirement Plans
Sunrise employees participate in the Oregon Public Employees Retirement System (OPERS). Contributions to OPERS are made on a current basis as required by the plan and are charged to expenditures as funded.
Postemployment Benefits Other Than Pensions (OPEB)
For purposes of measuring the net OPEB liability, deferred outflows of resources and deferred inflows of resources related to OPEB, and OPEB expense, information about the fiduciary net position of the Authority’s two separate plans the Implicit Rate Subsidy and Oregon Public Employees Retirement Systems (OPERS) and additions to/deductions from Implicit Rate Subsidy and OPERS's fiduciary net position have been determined on the same basis as they are reported by Implicit Rate Subsidy and OPERS. For this purpose, Implicit Rate Subsidy and OPERS recognizes benefit payments when due and payable in accordance with the benefit terms. Investments are reported at fair value, except for money market investments and participating interest-earning investment contracts that have a maturity at the time of purchase of one year or less, which are reported at cost.
Estimates
The preparation of basic financial statements in conformity with generally accepted accounting principles in the United States of America requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the basic financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates.
Unamortized Bond Premiums, Issuance Costs, and Deferred Charges on Refunding
Bond premiums relating to revenue bonds are amortized by the effective interest method over the life of the bond issue using a weighted average of the face amount of the outstanding bonds. Loss on refunding of bonds is amortized over the life of the old or new bonds, whichever is shorter, as a deferred outflow. Issuance costs are expensed as incurred.
Net Position
All balances and transactions are presented based on the existence or absence of restrictions. These restrictions are either externally imposed (i.e., by grantors, creditors, contributors, or laws and regulations imposed by other governments) or imposed by law through constitutional provisions or enabling legislation. Accordingly, the net position of the Authority’s and changes therein, are classified and reported as follows:
Net investment in capital assets – capital assets (net of accumulated depreciation) are reduced by the outstanding balance of the District’s revenue bonds which are attributable to the acquisition, construction and improvement of those assets. It is increased by the investment in NCCWC. This investment was formerly consolidated, but when the SWA ownership interest dropped to 48% with the addition of Gladstone into the ownership of the NCCWC, the investment method of accounting was adopted.
Restricted – this component of net position consists of restricted assets reduced by liabilities related to those assets. A liability relates to restricted assets if the liability will be liquidated with the restricted assets
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Sunrise Water Authority Clackamas County, Oregon
Notes to Basic Financial Statements
1. Summary of Significant Accounting Policies, continued Net Position, continued
reported. Per GASB Statement No 54, Fund Balance Reporting and Governmental Fund Type Definitions, assets can be restricted by third parties or bond resolutions and can include amounts committed by the government’s highest level of decision-making authority which for Sunrise is the Board. As such, Sunrise shows restricted net position composed of SDC fees and the bond sinking fund.
Unrestricted – all other elements of net position that are not included in the categories listed above.
Fund Types Sunrise’s financial operations are accounted for in the following funds: Proprietary funds Proprietary funds are used to account for the acquisition, operation and maintenance of water systems in the boundaries of the special district known as Sunrise Water Authority. The funds collected are predominantly self- supported through user charges to customers. The measurement focus is upon net income determination, rather than upon determination of changes in current financial resources. The following enterprise fund is Sunrise’s major proprietary funds: Enterprise funds Enterprise funds are a type of proprietary fund where the customer is external to the government as opposed to an Internal Service Fund where the customer is other governmental departments, units or agencies that shift goods or services on a cost reimbursement basis. General Fund – This fund is a government’s basic operating fund and accounts for everything not accounted for in another fund. For Sunrise, the General Fund accounts for the enterprise fund of water operations which consists of the following four budgetary funds: General Fund, Reserve Fund, Construction Fund – SDC Fund, and Revenue Bond Reserve Fund.
Interfund Transactions
Transactions that constitute reimbursements to a fund for expenditures initially made from it that are properly applicable to another fund are recorded as expenditures in the reimbursing fund and as reductions of expenditures in the fund that is reimbursed. Operating Interfund transactions are reported as transfers.
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Sunrise Water Authority Clackamas County, Oregon
Notes to Basic Financial Statements
2. Cash and Investments
Cash and Investments at June 30, (recorded at fair value) consisted of:
2020 2019 Deposits With Financial Institutions: Cash on Hand $ 600 600$ Demand Deposits: Checking 3,438,125 2,954,397 Investments 15,146,561 13,714,215 Total 18,585,286$ $ 16,669,212
Reported As: Cash and Investments 16,342,105$ $ 14,707,685 Restricted Cash 2,243,181 1,961,527
$ 18,585,286 $ 16,669,212
Deposits with financial institutions are comprised of bank demand deposits. Oregon Revised Statutes require deposits to be adequately covered by federal depository insurance or deposited at an approved depository as identified by the Treasury.
Amounts in the State Treasurer’s Local Government Investment Pool are not required to be collateralized. There were no known violations of legal or contractual provisions for deposits and investments during the fiscal year.
Interest Rate Risk Sunrise does not have a formal policy that explicitly limits investment maturities as a means of managing its exposure to fair value loss arising from increasing interest rates. Sunrise follows the Oregon Revised Statutes requirement that investments will not exceed a maturity of 18 months.
Concentration of Credit Risk Sunrise is required to provide information about the concentration of credit risk associated with its investments in one issuer that represents 5 percent or more of the total investments, excluding investments in external investment pools or those issued and explicitly guaranteed by the U.S. Government. Sunrise has no such investments.
Custodial Credit Risk In the case of deposits, this is the risk that in the event of a bank failure, Sunrise’s deposits may not be returned. The Federal Depository Insurance Corporation (FDIC) provides insurance for Sunrise’s deposits with financial institutions up to $250,000 for the combined total of all savings deposits and unlimited coverage for non- interest, bearing transaction accounts. Deposits in excess of FDIC coverage with institutions participating in the Oregon
Public Funds Collateralization Program is considered fully collateralized. As of June 30, 2020, $3,433,827 of Sunrise’s bank balance of $3,683,827 was exposed to custodial credit risk because it was uninsured.
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Sunrise Water Authority Clackamas County, Oregon
Notes to Basic Financial Statements
2. Cash and Investments, continued
Investment Risk For an investment, this is the risk that, in the event of failure of the counterparty, Sunrise will not be able to recover the value of its investments or collateral securities that are in the possession of an outside party.
State statues authorize Sunrise to invest primarily in general obligations of the U.S. government and its agencies, certain bonded obligations of Oregon municipalities, bank repurchase agreements, bankers’ acceptances, certain commercial paper and corporate bonds and the State of Oregon Local Government Investment Pool.
Sunrise participates in the Local Government Investment Pool (LGIP), which is part of the Oregon State Treasury Short-Term Investment Fund. State of Oregon investment policies are governed by statue and the Oregon Investment Council. In accordance with Oregon Statues, the investment funds are invested as a prudent investor would do, exercising reasonable care, skill, and caution.
The State Treasurer’s LGIP is not registered with the U.S. Securities and Exchange Commission as an investment company. The State Treasurer is the investment officer for the Council and is responsible for all funds in the State Treasury. Investments in the fund are further governed by portfolio guidelines issued by the Oregon Short-Term Fund Board, which establish diversification percentages and specify the types and maturities of investments. The portfolio guidelines permit securities lending transactions as well as investments in repurchase agreements and reverse repurchase agreements. The fund was in compliance with all portfolio guidelines at June 30, 2020.
The LGIP investment in external investment pools does not meet the requirements for “leveling” disclosures as established in GASB Statement No. 72. Therefore, the fair value of the LGIP is determined by the pool’s underlying portfolio. The value of Sunrise’s investment in the LGIP is the same as the value of the shares in the LGIP. Separate financial statements for the LGIP are available from the Oregon State Treasurer. The credit quality of the LGIP is unrated as to credit risk.
3. Accounts Receivable
Accounts receivable consist of amounts due from Sunrise customers for water service. Accounts receivable are stated at cost and are unsecured. Accounts receivable consist of the following at June 30:
2020 2019 Water sales receivables $ 786,882 912,963$ Unbilled water sales 783,052 968,408 Total accounts receivable$ 1,569,934 1,881,371$
As of June 30, 2020, due to internal policy changes, an allowance for uncollectible accounts was deemed necessary as follows:
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Sunrise Water Authority Clackamas County, Oregon
Notes to Basic Financial Statements
3. Accounts Receivable, continued Allowance for Gross Doubtful Receivable Accounts Receivables, net
Water receivables current $ 728,734 $ (5,000) $ 723,734 Water receivables non-current Adjustments pending 61,591 (6,300) 55,291 Sent to collections 8,710 (5,500) 3,210 Payment plans 4,647 - 4,647 Unbilled water sales 783,052 - 783,052
Total $ 1,586,734 $ (16,800) $ 1,569,934
According to Sunrise Water Authority Late Payment and Turn-Off Policy, active utility accounts are shut-off for non-payment within approximately 60 days. Shut-off accounts must pay full balance to be turned back on, and no allowance for doubtful accounts is calculated.
In April 2020, shut-offs were suspended due to COVID-19. As of June 30, 2020, there were 281 shut-offs suspended for COVID-19 total $39,701.
Closed accounts over $50 go to an external collection agency between 60 and 180 days. Historical collection percent is about 36% on accounts sent to collection. Approximately 20% of the closed account balances end up going to collection while an additional 5% are directly written off. An allowance for doubtful accounts of $4,200 was accrued against $23,097 of closed accounts in the second half of fiscal year 2020.
In the event a property changes hands after shut-off, the new owner must pay the water charges, and the service charge is written off. In the paste, service charges were written off. Accounts with a pending leak adjustment are in exempt or suspended status while their adjustments are pending. The leak adjustment policy collects only 40% of past due amounts which approximates the historical collection percent of closed accounts and shut off accounts. Accordingly, at June 30, 2020, $60,791 was outstanding for long term receivables aged 180 days or more representing shut-off accounts waiting new owners or pending leak adjustments. An allowance for doubtful accounts and discounts of $6,300 was accrued against these accounts. Long term accounts receivable sent to collection of $8,710 had a related allowance of $5,500 and $4,647 of accounts receivable were on payment plans without a related allowance for doubtful accounts.
At June 30, 2020, the portion of late fees receivable that represents delinquent accounts is insignificant and no separate allowance for uncollectible late fee revenue is deemed necessary.
4. Intergovernmental Receivable
Intergovernmental receivables consist of amounts due from the North Clackamas County Water Commission, a related party, or Clackamas River Water for reimbursement of expenses paid by Sunrise. An allowance for uncollectible accounts has not been provided.
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Sunrise Water Authority Clackamas County, Oregon
Notes to Basic Financial Statements
5. Capital Assets
The changes in capital assets for the period ended June 30, 2020, are summarized below:
Balance Balance June 30, 2019 Additions Deletions Transfers June 30, 2020
Capital assets, not being depreciated: Land $ 3,322,310 $ - $ - $ (761,876) $ 2,560,434 Construction-in-progress 9,603,038 3,943,830 - (1,180,107) 12,366,761 Easement rights - 127,413 - - 127,413 Property held for resale 115,358 - - 761,876 877,234
Total capital assets, not being depreciated 13,040,706 4,071,243 - (1,180,107) 15,931,842
Capital assets, being depreciated Buildings 1,923,773 - - (322,767) 1,601,006 Equipment and vehicles 4,751,538 - (144,614) 186,712 4,793,636 Water system 65,313,179 1,989,710 (9,274) 1, 316,162 68,609,777
Total capital assets, being depreciated 71,988,490 1,989,710 (153,888) 1, 180,107 75,004,419
Less accumulated depreciation for: Buildings (674,700) (40, 525) - - (715,225) Equipment and vehicles (2,315,470) (290, 532) 131,112 - (2,474,890) Water system (20,234,609) (1,270, 960) 8,081 - (21,497,488)
Total accumulated depreciation (23,224,779) (1,602, 017) 139,193 - (24,687,603)
Total capital assets being depreciated, net 48,763,711 387,693 (14,695) 1, 180,107 50,316,816
Total capital assets, net $ 61,804,417 $ 4,458,936 $ (14,695) -$ $ 66,248,658
Construction-in-progress relates to pump station updates, reservoir project and water system improvement projects ongoing at year end. Deletions relate to equipment no longer in use by Sunrise.
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Sunrise Water Authority Clackamas County, Oregon
Notes to Basic Financial Statements
5. Capital Assets, continued
The changes in capital assets for the period ended June 30, 2019, are summarized below:
Balance Balance June 30, 2018 Additions Deletions Transfers June 30, 2019
Capital assets, not being depreciated: Land $ 2,418,041 $ - $ - $ 904,269 $ 3,322,310 Construction-in-progress 3,316,415 9,601,371 (107,766) (3,206,982) 9,603,038 Property held for resale - - - 115,358 115,358
Total capital assets, not being depreciated 5,734,456 9,601,371 (107,766) (2,187,355) 13,040,706
Capital assets, being depreciated Buildings 1,686,962 236,811 - - 1,923,773 Equipment and vehicles 4,186,259 - (133,432) 698,711 4,751,538 Water system 60,401,525 3,472,034 (49,024) 1,488,644 65,313,179
Total capital assets, being depreciated 66,274,746 3,708,845 (182,456) 2,187,355 71,988,490
Less accumulated depreciation for: Buildings (630,351) (44,349) - - (674,700) Equipment and vehicles (2,175,109) (265,293) 124,932 - (2,315,470) Water system (19,053,206) (1,214,520) 33,117 - (20,234,609)
Total accumulated depreciation (21,858,666) (1,524,162) 158,049 - (23,224,779)
Total capital assets being depreciated, net 44,416,080 2,184,683 (24,407) 2,187,355 48,763,711
Total capital assets, net $ 50,150,536 $ 11,786,054 $ (132,173) $ - $ 61,804,417
Construction-in-progress relates to a new pump station and several water system improvement projects ongoing at year end. Deletions relate to equipment no longer in use by Sunrise.
6. Other Assets
Other Assets are Water Rights, received on the Clackamas River in the transfer of plant assets to NCCWC of $7,861,287 less amortization of $2,846,646 for a net total of $5,014,641 for the fiscal year ended June 30, 2020 and $2,650,114 for a net total of $5,211,173 for the fiscal year ended June 30, 2019.
7. Pension Plans
Plan Description – Employees of Sunrise are provided with pensions through the Oregon Public Employees Retirement System (OPERS) a cost-sharing multiple-employer defined benefit pension plan. The Oregon Legislature has delegated authority to the Public Employees Retirement Board to administer and manage the system.
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Sunrise Water Authority Clackamas County, Oregon
Notes to Basic Financial Statements
7. Pension Plans, continued Plan Description, continued
All benefits of the System are established by the legislature pursuant to ORS Chapters 238 and 238A. The Tier One/Tier Two Retirement Benefit plan, established by ORS Chapter 238, is closed to new members hired on or after August 29, 2003. The OPSRP Pension Program, established by ORS Chapter 238A, provides benefits to members hired on or after August 29, 2003. OPERS issues a publicly available Comprehensive Annual Financial Report and Actuarial Valuation that can be obtained at: http://www.oregon.gov/pers/Pages/Financials/Actuarial-Financial-Information.aspx.
Benefits provided: A. Tier One/Tier Two Retirement Benefit ORS Chapter 238: Pension Benefits: The PERS retirement allowance is payable monthly for life. It may be selected from 13 retirement benefit options. These options include survivorship benefits and lump-sum refunds. The basic benefit is based on years of service and final average salary. A percentage (1.67 percent for general service employees) is multiplied by the number of years of service and the final average salary. Benefits may also be calculated under either: a formula plus annuity (for members who were contributing before August 21, 1981) or a money match computation if a greater benefit results.
A member is considered vested and will be eligible at minimum retirement age for a service retirement allowance if he or she has had a contribution in each of five calendar years or has reached at least 50 years of age before ceasing employment with a participating employer. General Service employees may retire after reaching age 55. Tier One general service employee benefits are reduced if retirement occurs prior to age 58 with fewer than 30 years of service. Tier Two members are eligible for full benefits at age 60. The ORS Chapter 238 Defined Benefit Pension Plan is closed to new members hired on or after August 29, 2003.
Death Benefits: Upon the death of a non-retired member, the beneficiary receives a lump-sum refund of the member’s account balance (accumulated contributions and interest). In addition, the beneficiary will receive a lump- sum payment from employer funds equal to the account balance, provided one or more of the following conditions are met: the member was employed by a PERS employer at the time of death, the member died within 120 days after termination of PERS-covered employment, the member died as a result of injury sustained while employed in a PERS covered job, or the member was on an official leave of absence from a PERS-covered job at the time of death.
Disability Benefits: A member with 10 or more years of creditable service who becomes disabled from other than duty- connected causes may receive a non-duty disability benefit. A disability resulting from a job-incurred injury or illness qualifies a member (including PERS judge members) for disability benefits regardless of the length of PERS-covered service. Upon qualifying for either a non-duty or duty disability, service time is computed to age 58 when determining the monthly benefit.
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Sunrise Water Authority Clackamas County, Oregon
Notes to Basic Financial Statements
7. Pension Plans, continued Benefits provided, continued A. Tier One/Tier Two Retirement Benefit ORS Chapter 238:, continued
Benefit Changes After Retirement: After retirement members may choose to continue participation in a variable equities investment account and may experience annual benefit fluctuations due to changes in the market value of equity investments. Under ORS 238.360 monthly benefits are adjusted annually through cost-of-living changes. Under current law, the COLA is capped at 2.0 percent.
B. OPSRP Defined Benefit Pension Program (OPSRP DB): Pension Benefits: The OPSRP Pension Program (ORS Chapter 238A) provides benefits to members hired on or after August 29, 2003. This portion of OPSRP provides a life pension funded by employer contributions. Benefits are calculated with the following formula for members who attain normal retirement age: General Service: 1.5 percent is multiplied by the number of years of service and the final average salary. Normal retirement age for general service members is age 65, or age 58 with 30 years of retirement credit.
A member of the OPSRP Pension Program becomes vested on the earliest of the following dates: the date the member completes 600 hours of service in each of five calendar years, the date the member reaches normal retirement age, and, if the pension program is terminated, the date on which termination becomes effective.
Death Benefits: Upon the death of a non-retired member, the spouse or other person who is constitutionally required to be treated in the same manner as the spouse, receives for life 50 percent of the pension that would otherwise have been paid to the deceased member.
Disability Benefits: A member who has accrued 10 or more years of retirement credits before the member becomes disabled, or a member who becomes disabled due to job-related injury, shall receive a disability benefit of 45 percent of the member’s salary determined as of the last full month of employment before the disability occurred.
Benefit Changes After Retirement: Under ORS 238A.210 monthly benefits are adjusted annually through cost-of-living changes. Under current law, the cap on the COLA in fiscal year 2015 and beyond will vary based on 1.25 percent on the first $60,000 of annual benefit and $750 plus 0.15 percent on annual benefits above $60,000.
C. OPSRP Individual Account Program (OPSRP IAP): Pension Benefits: The Individual Account Program (IAP) is a defined benefit contribution pension plan under the PERS tax- qualified governmental plan as defined under ORS 238A.400. An IAP member becomes vested on the date the employee account is established or on the date the rollover account was established. If the employer makes optional employer contributions for a member, the member becomes vested on the earliest of the following dates: the date the member completes 600 hours of service in each of five calendar years, the date the member reaches normal retirement age, the date the IAP is terminated, the date the active member becomes disabled, or the date the active member dies. - 31 -
Sunrise Water Authority Clackamas County, Oregon
Notes to Basic Financial Statements
7. Pension Plans, continued Benefits provided, continued C. OPSRP Individual Account Program (OPSRP IAP):, continued
Upon retirement, a member of the OPSRP Individual Account Program (IAP) may receive the amounts in his or her employee account, rollover account, and vested employer account as a lump-sum payment or in equal installments over a 5-, 10-, 15-, 20-year period or an anticipated life span option. Each distribution option has a $200 minimum distribution limit.
Death Benefits: Upon the death of a non-retired member, the beneficiary receives in a lump sum the member’s account balance, rollover account balance, and vested employer optional contribution account balance. If a retired member dies before the installment payments are completed, the beneficiary may receive the remaining installment payments or choose a lump-sum payment.
Recordkeeping: OPERS contracts with VOYA Financial to maintain IAP participant records.
Contributions:
A. Employer Contributions: PERS funding policy provides for monthly employer contributions at actuarially determined rates. These contributions, expressed as a percentage of covered payroll, are intended to accumulate sufficient assets to pay benefits when due. This funding policy applies to the PERS Defined Benefit Plan and the Other Postemployment Benefit Plans. For fiscal year end 2020, the Rate summary is as follows:
Contribution Rate Summary (1) Defined Benefit Pension Postemployment Healthcare
PERS Defined OPSRP Defined Benefit Plan Benefit Plan Non-Pooled Non-Pooled PERS Defined OPSRP Defined Emplyers Emplyers Benefit Plan Benefit Plan Political (2) (3) Subdivisions General Service RHIA RHIA
Employee IAP 6.00% 6.00%
Employer Normal Cost 10.77% 8.40% 0.06% PERS Unfunded Actuarial Liability 8.06% 8.06% 0.00% 0.00% OPSRP Unfunded Actuarial Liability 1.45% 1.45%
Total Employer Contributions 20.28% 17.91% 0.06% 0.00%
Net Employer Contribution Rate 20.34% 17.91%
(1) Rates shown were effective July 1, 2019 through June 30, 2021. (2) Does not include UAL payment rate offsets. (3) Non-pooled Political Subdivisions are valued separately for the Defined Benefit Plan. (Source: Contribution Rates by Program 2019-2021; Employer Number 2845) - 32 -
Sunrise Water Authority Clackamas County, Oregon
Notes to Basic Financial Statements
7. Pension Plans, continued Contributions, continued A. Employer Contributions:, continued
For fiscal year end 2019, the Rate summary is as follows:
Contribution Rate Summary (1) Defined Benefit Pension Postemployment Healthcare
PERS Defined OPSRP Defined Benefit Plan Benefit Plan Non-Pooled Non-Pooled PERS Defined OPSRP Defined Emplyers Emplyers Benefit Plan Benefit Plan Political (2) (3) Subdivisions General Service RHIA RHIA
Employee IAP 6.00% 6.00%
Employer Normal Cost 10.94% 8.02% 0.07% PERS Unfunded Actuarial Liability 8.22% 8.22% 0.43% 0.43% OPSRP Unfunded Actuarial Liability 1.27% 1.27%
Total Employer Contributions 20.43% 17.51% 0.50% 0.43%
Net Employer Contribution Rate 20.93% 17.94%
(1) Rates shown were effective July 1, 2017 through June 30, 2019. (2) Does not include UAL payment rate offsets. (3) Non-pooled Political Subdivisions are valued separately for the Defined Benefit Plan. (Source: Contribution Rates 2017-2019; Employer Number 2845, Table 1)
Employer contribution rates during the period were based on the December 31, 2015. The rates based on a percentage of payroll, became effective July 1, 2017. See the contribution rate summary provided in Table 1 and 2 above for Pension rates in effect for the fiscal year ended June 30, 2020 for Tier One/Tier Two General Service Members, and for OPSRP Pension Program General Service Members. Employer contributions for the year ended June 30, 2020 and 2019 were $364,000 and $347,459, respectively.
B. Employee Contributions Covered employees are required by state statue to contribute 6 percent of their annual salary to the OPSRP Individual Account Program. The employer is allowed to pay any or all of the employees’ contribution in addition to the employers’ required contribution. ORS 238.205 and Internal Revenue Code Section 414 (h) permit the Authority to “pick up” this amount on behalf of its employees and the Authority has elected to do so for one employee.
Pension Assets, Liabilities, Pension Expense, and Deferred Outflows of Resources and Deferred Inflows of Resources Related to Pensions: At June 30, 2020, the Authority reported a liability of $2,178,005 for its proportionate share of the net pension liability, which was measured as of June 30, 2019. At June 30, 2019, the Authority reported a liability of $1,706,090 for its proportionate share of the net pension liability, which was measured as of June 30, 2018. At June 30, 2020, the Authority’s proportion was 0.01259 percent, which reduced from its proportion measured 0.01126 percent as of June 30, 2019. - 33 -
Sunrise Water Authority Clackamas County, Oregon
Notes to Basic Financial Statements
7. Pension Plans, continued Pension Assets, Liabilities, Pension Expense, and Deferred Outflows of Resources and Deferred Inflows of Resources Related to Pensions:, continued
For the year ended June 30, 2020, the Authority recognized pension income of $241,167. At June 30, 2019, the Authority reported deferred outflows of resources and deferred inflows of resources related to pensions from the following sources:
2020 2020 Deferred Outflows Deferred Inflows of of Resources Resources Differences between expected and actual experience $ 120,111 $ - Changes of assumptions 295,471 - Net difference between projected and actual earnings on investments - 61,744 Changes in proportion 132,948 73,278 Differences between employer contributions and proportionate share of contributions 235,435 2,572 Total (prior to post-MD contributions) 783,965 137,594 Contributions subsequent to the MD 364,000 - Total $ 1,147,965 $ 137,594
(Source: March 4, 2020 GASB-68-Individual-Employer-Schedule-2019; Employer Number 2845)
For the year ended June 30, 2019, the Authority recognized pension expense of $19,434. At June 30, 2018, the Authority reported deferred outflows of resources and deferred inflows of resources related to pensions from the following sources: 2019 2019 Deferred Outflows Deferred Inflows of of Resources Resources Differences between expected and actual experience $ 58,036 $ - Changes of assumptions 396,663 - Net difference between projected and actual earnings on investments - 75,760 Changes in proportion 8,465 121,189 Differences between employer contributions and proportionate share of contributions 175,931 9,982 Total (prior to post-MD contributions) 639,095 206,931 Contributions subsequent to the MD 347,459 -
Total $ 986,554 $ 206,931
(Source: March 4, 2019 GASB-68-Individual-Employer-Schedule-2018; Employer Number 2845)
- 34 -
Sunrise Water Authority Clackamas County, Oregon
Notes to Basic Financial Statements
7. Pension Plans, continued Pension Assets, Liabilities, Pension Expense, and Deferred Outflows of Resources and Deferred Inflows of Resources Related to Pensions:, continued
At June 30, 2020, $364,000 reported as deferred outflows of resources related to pensions resulting from Authority contributions subsequent to the measurement date of the net pension liability/collective net pension liability but before the end of the employer’s or governmental non-employer contributing entity’s reporting period will be recognized as a reduction of the net pension liability/collective net pension liability in the in the June 30, 2021 fiscal period. Other amounts reported as deferred outflows of resources and deferred inflows of resources related to pensions will be recognized in pension expense as follows:
Year ended June 30: 2021 $ 257,725 2022 95,235 2023 150,091 2024 121,195 2025 22,125 Total $ 646,371
At June 30, 2019, $347,459 was reported as deferred outflows of resources related to pensions resulting from Authority contributions subsequent to the measurement date of the net pension liability/collective net pension liability but before the end of the employer’s or governmental non-employer contributing entity’s reporting period to be recognized as a reduction of the net pension liability/collective net pension liability in the June 30, 2020 fiscal period. Other amounts reported as deferred outflows of resources and deferred inflows of resources related to pensions will be recognized in pension expense as follows:
Year ended June 30: 2020 $ 199,566 2021 150,090 2022 6,471 2023 55,981 2024 20,056 Total $ 432,164
Actuarial assumptions: The employer contribution rates effective July 1, 2017, through June 30, 2019 were set using the projected unit credit actuarial cost method. For the Tier One/Tier Two component of the PERS Defined Benefit Plan, this method produced an employer contribution rate consisting of (1) an amount for normal cost (the estimated amount necessary to finance benefits earned by the employees during the current service year), (2) an amount for the amortization of unfunded actuarial accrued liabilities, which are being amortized over a fixed period with new unfunded actuarial accrued liabilities being amortized over 20 years. For the OPSRP Pension Program component of the PERS Defined Benefit Plan, this method produced an employer contribution rate consisting of (a) an amount for normal cost (the estimated amount necessary to finance benefits earned by the employees during the current service year), and (b) an amount for the amortization of unfunded actuarial accrued liabilities, which are being amortized over a fixed period with new unfunded actuarial accrued liabilities being amortized over 16 years.
- 35 -
Sunrise Water Authority Clackamas County, Oregon
Notes to Basic Financial Statements
7. Pension Plans, continued Actuarial assumptions:, continued
The total pension liability in the December 31, 2017 actuarial valuation was determined using the following actuarial assumptions:
Valuation Date December 31, 2017 Measurement Date June 30, 2019 Experience Study Report 2016, published July 26, 2017 Actuarial Cost Method Entry Age Normal Actuarial Assumptions: Inflation Rate 2.50 percent Long-Term Expected Rate of Return 7.20 percent Discount Rate 7.20 percent Projected Salary Increases 3.50 percent overall payroll growth Cost of Living Adjustments (COLA) Blend of 2.00% COLA and grade COLA (1.25%/0.15%) in accordance with Moro decision, blend based on service. Mortality Health retirees and beneficiaries: RP-2014 healthy annuitant, sex-distinct, generational with Unisex, Social Security Data Scale, with collar adjustments and set-backs as described in the valuation.
Active Members: RP-2014 Employees, sex- distinct, generational with Unisex, Social Security Data Scale, with collar adjustments and set-backs as described in the valuation. Disabled retirees: RP-2014 Disabled retirees, sex-distinct, generational with Unisex, Social Security Data Scale.
(Source: June 30, 2019 PERS CAFR; p.71, Table 25)
Actuarial valuations of an ongoing plan involve estimates of the value of projected benefits and assumptions about the probability of events far into the future. Actuarially determined amounts are subject to continual revision as actual results are compared to past expectations and new estimates are made about the future. Experience studies are performed as of December 31 of even numbered years. The methods and assumptions shown above are based on the 2016 Experience Study.
Long-term expected rate of return: To develop an analytical basis for the selection of the long-term expected rate of return assumption, in July 2017 the PERS Board reviewed long-term assumptions developed by both Milliman’s capital market assumptions team and the Oregon Investment Council’s (OIC) investment advisors. The table below shows Milliman’s assumptions for each of the asset classes in which the plan was invested at that time based on the OIC long-term target asset allocation. The OIC’s description of each asset class was used to map the target allocation to the asset classes. Each asset class assumption is based on a consistent set of underlying assumptions and includes adjustment for the inflation assumption. These assumptions are not based on historical returns, but instead are based on a forward-looking capital market economic model.
- 36 -
Sunrise Water Authority Clackamas County, Oregon
Notes to Basic Financial Statements
7. Pension Plans, continued Long-term expected rate of return:, continued
(Source: June 30, 2019 PERS CAFR; p. 74; Table 31)
Depletion Date Projection: GASB 68 generally requires that a blended discount rate be used to measure the Total Pension Liability (the Actuarial Accrued Liability calculated using the Individual Entry Age Normal Cost Method). The long-term expected return on plan investments may be used to discount liabilities to the extent that the plan’s Fiduciary Net Position is projected to cover benefit payments and administrative expenses. A 20-year high quality (AA/Aa or higher) municipal bond rate must be used for periods where the Fiduciary Net Position is not projected to cover benefit payments and administrative expenses. Determining the discount rate under GASB 68 will often require that the actuary perform complex projections of future benefit payments and pension plan investments. GASB 68 (paragraph 67) does allow for alternative evaluations of projected solvency, if such evaluation can reliably be made. GASB does not contemplate a specific method for making an alternative evaluation of sufficiency; it is left to professional judgment.
- 37 -
Sunrise Water Authority Clackamas County, Oregon
Notes to Basic Financial Statements
7. Pension Plans, continued Depletion Date Projection:, continued
The following circumstances justify an alternative evaluation of sufficiency for PERS: • PERS has a formal written policy to calculate an Actuarially Determined Contribution (ADC), which is articulated in the actuarial valuation report. • The ADC is based on a closed, layered amortization period, which means that payment of the full ADC each year will bring the plan to a 100% funded position by the end of the amortization period if future experience follows assumption. • GASB 68 specifies that the projections regarding future solvency assume that plan assets earn the assumed rate return and there are no future changes in the plan provisions or actuarial methods and assumptions, which means that the projections would not reflect any adverse future experience which might impact the plan’s funded position.
Based on these circumstances, it is our independent actuary’s opinion that the detailed depletion date projections outlined in GASB 68 would clearly indicate that the Fiduciary Net Position is always projected to be sufficient to cover benefit payments and administrative expenses.
Discount rate: The discount rate used to measure the total pension liability remained at 7.20 percent for the Defined Benefit Pension Plan. The projection of cash flows used to determine the discount rate assumed that contributions from plan members and those of the contributing employers are made at the contractually required rates, as actuarially determined. Based on those assumptions, the pension plan’s fiduciary net position was projected to be available to make all projected future benefit payments of current plan members. Therefore, the long-term expected rate of return on pension plan investments for the Defined Benefit Pension Plan was applied to all periods of projected benefit payments to determine the total pension liability.
Sensitivity of the Authority’s proportionate share of the net pension liability to changes in the discount rate: The following presents the Authority’s proportionate share of the net pension liability calculated using the discount rate of 7.20 percent, as well as what the Authority’s proportionate share of the net pension liability would be if it were calculated using a discount rate that is 1-percentage-point lower (6.20 percent) or 1- percentage-point higher (8.20 percent) than the current rate for June 30, 2020:
2020 1% Decrease (6.20%)Discount Rate (7.20%)1% Increase (8.20%) Authority's proportionate share of the net pension liability (asset) $ 3,487,883 $ 2,178,005 $ 1,081,819
The following presents the Authority’s proportionate share of the net pension liability calculated using the discount rate of 7.20 percent, as well as what the Authority’s proportionate share of the net pension liability would be if it were calculated using a discount rate that is 1-percentage-point lower (6.20 percent) or 1-percentage-point higher (8.20 percent) than the current rate for June 30, 2019:
- 38 -
Sunrise Water Authority Clackamas County, Oregon
Notes to Basic Financial Statements
7. Pension Plans, continued
OIC Target and Actual Investment Allocation: The OIC Target Allocations are based on OIC asset classes as determined by each manager's primary investment type, not the financial statement classification of individual holdings. The Target Allocation amounts do not include Deferred Compensation Plan investments. The Actual Investment Allocation is based on the financial statement investment classifications, including Deferred Compensation Plan investments.
(Source: June 30, 2019 PERS CAFR; p. 100)
Pension plan fiduciary net position: Detailed information about the pension plan's fiduciary net position is available in the separately issued OPERS financial report.
- 39 -
Sunrise Water Authority Clackamas County, Oregon
Notes to Basic Financial Statements
7. Pension Plans, continued
Changes in Plan Provisions During the Measurement Date: There were no changes during either the June 30, 2018 or June 30, 2019 measurement periods that require disclosure.
Changes in Plan Provisions Subsequent to Measurement Date: A legislative change that occurred after the December 31, 2017 valuation date affected the plan provisions reflected for financial reporting purposes. Senate Bill 1049, signed into law in June 2019, introduced a limit on the amount of annual salary included for the calculation of benefits. Beginning in 2020, annual salary in excess of $195,000 (as indexed in future years) will be excluded when determining member benefits. As a result, future Tier 1/Tier 2 and OPSRP benefits for certain active members are now projected to be lower than prior to the legislation. Senate Bill 1049 was reflected in the June 30, 2019 Total Pension Liability as a reduction in liability.
8. Post-Employment Benefits Other than Pensions
Post Employment Benefit Plans Other than Pensions: The other postemployment benefits (OPEB) for the Authority combine two separate plans. The Authority provides an implicit rate subsidy for retiree health insurance premiums, and a contribution to the State of Oregon’s PERS cost-sharing multiple-employer defined health insurance benefit plan.
Financial Statement Presentation: The Authority’s two OPEB plans are presented in the aggregate on the Statement of Net Position. For fiscal year ended June 30, 2020, the amounts on the financial statements relate to the plans as follows:
Implicit Rate Total OPEB on Subsidy PERS RHIA Plan Financials Net OPEB Asset$ - $ 33,242 $ 33,242
Deferred Outflows of Resources Change in Assumptions 9,637 - 9,637 Change in Proportionate Share - 143 143 Contributions After MD 30 237 267
Total OPEB Liability (64,692) - (64,692)
Deferred Inflows of Resources Difference in Expected and Actual Experience (8,357) (4,384) (12,741) Difference in Earnings - (2,052) (2,052) Change in Assumptions (4,269) (34) (4,303) Change in Proportionate Share - (1,720) (1,720)
OPEB Expense/(Income)* 6,255 (4,949) 1,306
*Included in program expenses on Statement of Activities
- 40 -
Sunrise Water Authority Clackamas County, Oregon
Notes to Basic Financial Statements
8. Post-Employment Benefits Other than Pensions, continued Financial Statement Presentation:, continued
For fiscal year ended June 30, 2019, the amounts on the financial statements relate to the plans as follows:
Implicit Rate PERS RHIA Total OPEB on Subsidy Plan Financials Net OPEB Asset$ - $ 15,766 $ 15,766
Deferred Outflows of Resources Change in Assumptions - - - Change in Proportionate Share - 345 345 Contributions After MD 4,337 8,526 12,863
Total OPEB Liability (60,883) - (60,883)
Deferred Inflows of Resources Difference in Experience - (894) (894) Difference in Earnings - (3,399) (3,399) Change in Assumptions (4,880) (50) (4,930) Change in Proportionate Share - (58) (58)
OPEB Expense/(Income)* 5,946 (1,303) 4,643
*Included in program expenses on Statement of Activities
Implicit Rate Subsidy: Plan Description – The Authority’s single-employer defined benefit postemployment healthcare plan is administered by Special Districts Insurance Services (SDIS). No assets are accumulated in a trust that meets the criteria in paragraph 4 of GASB Statement 75. The Implicit Rate Subsidy benefit (the Plan) is the result of 2017 ORS 243.303, which requires local governments to make health care insurance coverage available to retired officers and employees, spouses and children.
The Authority’s insurance carrier, SDIS, has contracted with Milliman, Inc., an actuarial firm, to provide actuarial valuation services for individual Special District Association of Oregon (SDAO) members. The benefit provided is a subsidy measured as the expected health care cost per retiree and dependent, less the gross premiums charged by the insurance carrier for that coverage. The subsidy reported is only measured for retirees and spouses younger than age 65, at which point such retirees and spouses typically become eligible for Medicare. There are no stand-alone plan financial statements.
Benefits Provided -- The plan provides eligible retirees and their dependents under age 65 the same health care coverage at the same premium rates as offered to active employees. Active employees receive medical, dental, and vision insurance. The retiree is responsible for 100% of the premiums. As of the valuation date of July 1, 2019, the following employees were covered by the benefit terms:
- 41 -
Sunrise Water Authority Clackamas County, Oregon
Notes to Basic Financial Statements
8. Post-Employment Benefits Other than Pensions, continued Implicit Rate Subsidy:, continued
Inactive employees or beneficiaries receiving benefits 0 Active employees 21 21 Total OPEB Liability, OPEB Expense, and Deferred Outflows of Resources and Deferred Inflows of Resources Related to OPEB -- The Authority’s total Implicit Rate Subsidy OPEB liability of $64,692 was measured as of June 30, 2019 and was determined by an actuarial valuation as of July 1, 2018. For the fiscal year ended June 30, 2020, the Authority recognized OPEB expense from this plan of $6,255. The Authority reported deferred outflows of resources and deferred inflows of resources related to this OPEB plan from the following sources:
2020 2020 Deferred Outflows of Deferred Inflows of Resources Resources Differences between expected and actual experience $ - $ 8,357 Changes of assumptions 9,637 4,269 Total (prior to post-MD contributions) 9,637 12,626 Contributions subsequent to the MD 30 -
Total $ 9,667 $ 12,626
(Source: Milliman SDIS OPEB Valuation; October 26, 2020; Exhibit 7)
At June 30, 2019, the Authority’s total Implicit Rate Subsidy OPEB liability of $60,883 was measured as of June 30, 2018 and was determined by an actuarial valuation as of July 1, 2018. For the fiscal year ended June 30, 2018, the Authority recognized OPEB expense from this plan of $5,946. The Authority reported deferred outflows of resources and deferred inflows of resources related to this OPEB plan from the following sources:
2019 2019 De fe rre d Outflows De fe rre d Inflows of of Resources Resources Changes of assumptions $ - $ 4,880 Total (prior to post-MD contributions) - 4,880 Contributions subsequent to the MD 4,337 -
Total $ 4,337 $ 4,880
(Source: Milliman SDIS OPEB Valuation; November 8, 2018; Exhibit 6)
Deferred outflows of resources related to OPEB of $30 for June 30, 2020 and $4,337 for June 30, 2019, resulting from the Authority’s contributions subsequent to the measurement date, will be recognized as a reduction of the total OPEB liability in the year ended June 30, 2021. Other amounts reported as deferred outflows of resources and deferred inflows of resources related to OPEB will be recognized in OPEB expense as follows:
- 42 -
Sunrise Water Authority Clackamas County, Oregon
Notes to Basic Financial Statements
8. Post-Employment Benefits Other than Pensions, continued Implicit Rate Subsidy:, continued
Year ended June 30: 2020 2019 2020 - (611) 2021 (477) (611) 2022 (477) (611) 2023 (477) (611) 2024 (477) (611) 2024 (477) (611) Thereafter (604) (1,214) Total (2,989) (4,880) (Source: Milliman SDIS OPEB Valuation; October 26, 2020; Exhibit 7)
Actuarial Assumptions and Other Inputs — Per GASB 75, the actuarial valuation can be up to 30 months and 1 day before the reporting date. The valuation is “rolled forward” to the measurement date which can be no earlier than 1 year and 1 day prior to the reporting date. The OPEB liability reported July 30, 2020 and July 30, 2019 was determined by an actuarial valuation as of July 1, 2019 and July 1, 2017, respectively, calculated on the discount rate and actuarial assumptions below:
(Source: Milliman SDIS OPEB Valuation; October 26, 2020; Exhibit 4)
The discount rate was based on Bond Buyer 20-Year General Obligation Bond Index.
Changes in the Total OPEB Liability -- Changes in assumptions result from the change in the discount rate from 3.87 to 3.50.
- 43 -
Sunrise Water Authority Clackamas County, Oregon
Notes to Basic Financial Statements
8. Post-Employment Benefits Other than Pensions, continued Implicit Rate Subsidy:, continued
2020 2019 Total OPEB Total OPEB Liability Liability Beginning Balance $ 60,883 $ 60,315
Changes for the year: Service cost 4,293 4,319 Interest on Total OPEB Liability 2,439 2,238 Effect of assumptions changes or inputs 10,651 (1,725) Effect of economic demographic gains or losses (9,237) - Benefit payments (4,337) (4,264)
Ending Balance$ 64,692 $ 60,883
(Source: Milliman SDIS OPEB Valuation; October 26, 2020; Exhibit 5)
Sensitivity of the Total OPEB Liability -- The following presents the Authority’s OPEB liability at June 30, 2020, as well as what the liability would be if it were calculated using a discount rate that is 1-percentage-point lower (2.50 percent) or 1-percentage-point higher (4.50 percent) than the current discount rate. A similar sensitivity analysis is then presented for changes in the healthcare trend assumption.
2020 Discount Rate: Current Discount 1% Decrease (2.50%) Rate (3.50%) 1% Increase (4.50%)
Total OPEB Liability $ 72,590 $ 64,692 $ 57,476
2020 Healthcare Cost Trend: Current Health Care 1% Decrease Trend Rates 1% Increase
Total OPEB Liability $ 54,680 $ 64,692 $ 55,447
(Source: Milliman SDIS OPEB Valuation; October 26, 2020; Exhibit 5)
The following presents the Authority’s OPEB liability at June 30, 2019, as well as what the liability would be if it were calculated using a discount rate that is 1-percentage-point lower (2.87 percent) or 1-percentage-point higher (4.87 percent) than the current discount rate. A similar sensitivity analysis is then presented for changes in the healthcare trend assumption.
- 44 -
Sunrise Water Authority Clackamas County, Oregon
Notes to Basic Financial Statements
8. Post-Employment Benefits Other than Pensions, continued Implicit Rate Subsidy:, continued
2019 Discount Rate: 1% Decrease Current Discount 1% Increase (2.87%) Rate (3.87%) (4.87%)
Total OPEB Liability $ 66,761 $ 60,883 $ 55,558
2019 Healthcare Cost Trend: Current Health 1% Decrease Care Trend Rates 1% Increase
Total OPEB Liability $ 54,014 $ 60,883 $ 69,153
(Source: Milliman SDIS OPEB Valuation; November 8, 2018; Exhibit 4)
PERS Retirement Health Insurance Account (RHIA): Plan Description – The Authority contributes to the PERS Retirement Health Insurance Account (RHIA) for each of its eligible employees. RHIA is a cost-sharing multiple-employer defined benefit other postemployment benefit plan administered by OPERS. RHIA pays a monthly contribution toward the cost of Medicare companion health insurance premiums for eligible retirees. ORS 238.420 established this trust fund. Authority to establish and amend the benefit provisions of RHIA reside with the Oregon Legislature. The plan is closed to new entrants hired after August 29, 2003. OPERS issues publicly available financial statements and required supplementary information. That report may be obtained by writing to Oregon Public Employees Retirement System, PO Box 23700, Tigard, OR 97281-3700, or online at: https://www.oregon.gov/pers/Documents/Financials/CAFR/2019-CAFR.pdf.
Benefits Provided -- Because RHIA was created by enabling legislation (ORS 238.420), contribution requirements of the plan members and the participating employers were established and may be amended only by the Oregon Legislature. ORS require that an amount equal to $60 or the total monthly cost of Medicare companion health insurance premiums coverage, whichever is less, shall be paid from the RHIA established by the employer, and any monthly cost in excess of $60 shall be paid by the eligible retired member in the manner provided in ORS 238.410. To be eligible to receive this monthly payment toward the premium cost, the member must: (1) have eight years or more of qualifying service in PERS at the time of retirement or receive a disability allowance as if the member had eight years or more of creditable service in PERS, (2) receive both Medicare Parts A and B coverage, and (3) enroll in a PERS-sponsored health plan. A surviving spouse or dependent of a deceased PERS retiree who was eligible to receive the subsidy is eligible to receive the subsidy if he or she (1) is receiving a retirement benefit or allowance from PERS or (2) was insured at the time the member died and the member retired before May 1, 1991.
Retirees or beneficiaries receiving benefits 19 Dormant members 4 Active employees 3 26
- 45 -
Sunrise Water Authority Clackamas County, Oregon
Notes to Basic Financial Statements
8. Post-Employment Benefits Other than Pensions, continued PERS Retirement Health Insurance Account (RHIA):, continued
Contributions -- Participating entities are contractually required to contribute to RHIA at a rate assessed each year by the Oregon PERS Board of Trustees. These contributions, expressed as a percentage of covered payroll, are intended to accumulate sufficient assets to pay benefits when due. The Authority’s contributions to RHIA equaled the required contributions each year and for the year ended June 30, 2020 and June 30, 2019 were $237 and $8,526 respectively. Employer contribution rates for the period were based on the December 31, 2017 and a percentage of payroll that first became effective July 1, 2019. Currently, the rate is 0.06% of annual covered payroll for Tier One and Two employees, and 0.00% for OPSRP employees.
Changes in Benefit Terms and Assumptions:
Assumption-- The PERS Board adopted assumption changes that were used to measure the June 30, 2019 total OPEB liability. The changes include the lowering of the long-term expected rate of return was to 7.20 percent. In addition, the healthy healthcare participation and cost trend rates, and healthy mortality assumptions were changed to reflect an updated trends and mortality improvement scale for all groups.
OPEB Assets, OPEB Expense, and Deferred Outflows of Resources and Deferred Inflows of Resources Related to OPEB-- At June 30, 2020 and June 30, 2019 respectively, the Authority reported an asset of $33,242 and $15,766 respectively as its proportionate share of the OPERS net OPEB asset. The net OPEB asset was measured as of June 30, 2019, determined by an actuarial valuation as of July 1, 2017. The Authority’s proportion of the net OPEB asset was based on the Authority’s contributions to the RHIA program during the measurement period relative to contributions from all participating employers. As of the measurement date of June 30, 2019, the Authority’s proportionate share was 0.0172%, an increase from its proportionate share of 0.0141% as of June 30, 2018. At June 30, 2019, the Authority reported deferred outflows of resources and deferred inflows of resources related to this OPEB plan from the following sources:
2020 2020 Deferred Outflows Deferred Inflows of Resources of Resources Differences between expected and actual experience $ - $ 4,384 Changes of assumptions - 34 Net difference between projected and actual earnings on investments - 2,052 Changes in proportionate share 143 1,720 Differences between employer contributions and proportionate share of contributions - - Total (prior to post-MD contributions) 143 8,190 Contributions subsequent to the MD 237 -
Total $ 380 $ 8,190
(Source: March 4, 2020 GASB-75-Individual-Employer-Schedule-2019; Employer Number 2845)
- 46 -
Sunrise Water Authority Clackamas County, Oregon
Notes to Basic Financial Statements
8. Post-Employment Benefits Other than Pensions, continued Changes in Benefit Terms and Assumptions:, continued
Deferred outflows of resources related to OPEB of $237 resulting from the Authority’s contributions subsequent to the measurement date will be recognized as an increase in the net OPEB asset in the year ended June 30, 2021. Other amounts reported as deferred outflows of resources and deferred inflows of resources related to OPEB will be recognized in OPEB expense as follows: Year ended June 30: 2021$ (4,011) 2022 (3,787) 2023 (462) 2024 213 2025 - Total $ (8,047)
At June 30, 2019, the Authority reported deferred outflows of resources and deferred inflows of resources related to this OPEB plan from the following sources:
2019 2019 Deferred Outflows Deferred Inflows of Resources of Resources Differences between expected and actual experience $ - $ 894 Changes of assumptions - 50 Net difference between projected and actual earnings on investments - 3,399 Changes in proportionate share 345 58 Total (prior to post-MD contributions) 345 4,401 Contributions subsequent to the MD 8,526 -
Total $ 8,871 $ 4,401
(Source: March 4, 2019 GASB-75-Individual-Employer-Schedule-2018; Employer Number 2845)
Deferred outflows of resources related to OPEB of $8,526 resulting from the Authority’s contributions subsequent to the measurement date will be recognized as an increase in the net OPEB asset in the year ended June 30, 2020. Other amounts reported as deferred outflows of resources and deferred inflows of resources related to OPEB will be recognized in OPEB expense as follows: Year ended June 30: 2020$ (1,254) 2021 (1,313) 2022 (1,153) 2023 (336) Total$ (4,056)
- 47 -
Sunrise Water Authority Clackamas County, Oregon
Notes to Basic Financial Statements
8. Post-Employment Benefits Other than Pensions, continued Changes in Benefit Terms and Assumptions:, continued
Actuarial Methods and Assumptions - The total OPEB asset in the July 1, 2017 actuarial valuation was determined using the actuarial methods and assumptions are the same as listed above in Note 7 Pension Plans, Pension Plan Actuarial Assumptions with an additional assumption for healthcare cost trend rate ranging from 6.0% in 2020 to 4.25% in 2072.
Long-Term Expected Rate of Return -- Are the same as listed above in Note 7 – Pension Plan Long-term Expected Rate of Return.
Discount Rate -- The discount rate used to measure the total OPEB liability was 7.20% for the RHIA Plan. The projection of cash flows used to determine the discount rate assumed that contributions from plan members and those contributing employers are made at the contractually required rates, as actuarially determined. Based on those assumptions, the RHIA plan’s fiduciary net position was projected to be available to make all projected future benefit payments of current plan members. Therefore, the long-term expected rate of return on pension plan investments for the RHIA Plan was applied to all periods of projected benefit payments to determine the total OPEB liability.
Sensitivity of the Authority’s proportionate share of the net OPEB liability (asset) to changes in the discount rate -- The following presents the Authority’s proportionate share of the net OPEB liability (asset) calculated using the discount rate of 7.20%, as well as what the Authority’s proportionate share of the net OPEB liability (asset) would be if it were calculated using a discount rate that is 1-percentage-point lower (6.20%) or 1- percentage-point higher (8.20%) than the current rate: 2020 Discount Rate: 1% Decrease Curre nt Discount 1% Increase (6.20%) Rate (7.20%) (8.20%)
Total OPEB Liability $ (25,771) $ (33,242) $ (39,608)
(Source: March 4, 2020 GASB-75-Individual-Employer-Schedule-2019; Employer Number 2845)
2019 Discount Rate: 1% Decrease Current Discount 1% Increase (6.20%) Rate (7.20%) (8.20%)
Total OPEB Liability $ (9,180) $ (15,766) $ (21,373)
(Source: Milliman RHIA OPEB Schedule March 20, 2018; Employer Number 2845)
OPEB Plan Fiduciary Net Position:
Detailed information about the pension plan’s fiduciary net position is available in the separately issued OPERS financial report.
Changes in Plan Provisions During the Measurement Period:
There were no changes during either the June 30, 2019 or June 30, 2018 measurement periods that require disclosure. - 48 -
Sunrise Water Authority Clackamas County, Oregon
Notes to Basic Financial Statements
8. Post-Employment Benefits Other than Pensions, continued
Changes in Plan Provisions Subsequent to Measurement Date:
There were no changes subsequent to the June 30, 2019 measurement period that require disclosure.
9. Long-Term Debt
The Authority issued Revenue Refunding Bonds, Series 2014, pursuant to Oregon Revised Statutes (ORS) Sections 287A.360 through 287A.375 to refund prior bond issuances with higher interest rates. Interest of 3.00% to 4.00% is payable semi-annually on September 1 and March 1. The bonds are secured by the Authority’s net operating revenues and securities held in the Bond Reserve Account (see below). The prior bond issuances, Water Revenue Refunding Bonds Series 2003, Water Revenue Bonds Series 2004, Subordinate Lien Water Revenue Bonds Series 2005, and Subordinate Lien Water Revenue Bonds Series 2005B were for refunding prior bonds and capital improvements with the transmission and distribution system.
The Revenue Refunding Bonds, Series 2014, provides two advantages for the Authority. First, the debt service over the life of the bonds is reduced by $2,271,388 and second, the bonds are for ten years. The final payment will be during fiscal year 2024.
The bond resolution contains covenants that rates and fees are adequate to generate net operating revenues (excluding depreciation and amortization) of at least 1.25 times principal and interest and 1.00 times the principal and interest after subtracting system development charges. The Authority has exceeded these requirements for the years ending June 30, 2020 and June 30, 2019.
The long-term bonded debt obligation is payable from the Revenue Bond Reserve Fund. Establishment of the Revenue Bond Reserve Fund was required per the closing of the $14,490,000 Water Revenue Refunding Bonds, Series 2014. The $1,591,429 funded as of July 9th, 2014 is restricted until the remaining bond payments and interest are less than the Revenue Bond Reserve Fund.
The Authority’s long-term debt activity for the period ended June 30, 2020 is as follows:
Beginning Ending Due Within Balance Additions Payments Balance One Year Water Revenue Bonds$ 6,970,000 -$ $ (1,510,000) $ 5,460,000 $ 1,480,000 Unamortized Premium 649,174 - (155,802) 493,372 155,802 $ 7,619,174 -$ $ (1,665,802) $ 5,953,372 $ 1,635,802
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Sunrise Water Authority Clackamas County, Oregon
Notes to Basic Financial Statements
9. Long-Term Debt, continued
The Authority’s long-term debt activity for the period ended June 30, 2019 is as follows:
Beginning Ending Due Within Balance Additions Payments Balance One Year Water Revenue Bonds$ 8,420,000 $ - $ (1,450,000) $ 6,970,000 $ 1,510,000 Unamortized Premium 804,976 - (155,802) 649,174 155,802 $ 9,224,976 $ - $ (1,605,802) $ 7,619,174 $ 1,665,802
Scheduled future principal and interest payments are summarized below for the years ending June 30, 2019:
FISCAL Water Revenue 7/14 YEAR PRINCIPAL INTEREST 2020-21 1,480,000$ $ 218,400 2021-22 1,535,000 159,200 2022-23 1,595,000 97,800 2023-24 850,000 17,000 TOTALS 5,460,000$ $ 492,400
The Authority’s refunding revenue bonds are paid solely from the Authority’s net operating revenue and certain other restricted assets pledged as payment for the bonds. In 2020 and 2019, other restricted assets available for paying the bonds include system development fees. The SDC methodology update on February 1st, 2018 included only the reimbursement portion of future SDC revenue as available for bond payments. $1,591,429 of the debt service reserve fund is restricted. A portion of the payment will be paid in March 2023, while the remaining portion of the payment will be paid in September 2023. The bonds are not funded by tax charges and are not general obligations of the Authority.
Reserve Credit Facility The bond agreement requires the Authority to maintain two reserve accounts. The principal and semi-annual interest payment amount must be deposited in the Bond payment Account in time for the registrar and paying agent (Wells Fargo) to disburse the principal and interest payments when due.
A. Water Revenue Bonds
Water Revenue Bonds payable consists of one outstanding bond series issued during FY 2014-15.
Water Revenue Bonds, Series 2014 On July 9, 2014, Sunrise issued $14,490,000 million in Water Revenue Refunding Bonds with an average interest rate of 3.90% to refund the $15,605,000 outstanding on the four issues which had an average interest rate of 4.70%. The net proceeds of $15,914,289 and the Sunrise’s payment of $440,641 totaling $16,222,804 were used to purchase government securities. Those securities were deposited in an irrevocable trust with an escrow agent to provide for all future debt service payments on the four refunded issues. As a result, the four issues are considered to be refunded or defeased and the liability for those bonds have been removed from the statement of net position. - 50 -
Sunrise Water Authority Clackamas County, Oregon
Notes to Basic Financial Statements
9. Long-Term Debt, continued A. Water Revenue Bonds, continued
Bond principal will be paid annually on March 1, whereas interest will be paid semiannually through September 2023.
Total Water Revenue Bonds Payable $5,460,000
B. Interfund Loans Payable
In fiscal year 2018, Sunrise established a 20-year capital improvement plan to be funded with System Development Charge revenues. The financing tool for this plan is “Pay as you Go” financing instead of additional bond debt. Interfund Loans Payable resulting from this alternative financing product will generate loans for construction advances in fiscal year 2018 and subsequent years. The loan to cover construction for the year ended June 30, 2020 is $3,139,120 at an interest rate of 0.0%. State budget law requires repayment of each annual loan within 10 years.
In fiscal year 2019, Sunrise’s General Fund loaned $8,871,658 to the SDC (Construction) Fund for continued construction of Reservoir 11, the land purchased for Reservoir 12, construction of the 152nd reservoir, and construction on the generator at Pump Station 15. This loan is payable at 0% interest within 10 years.
In fiscal year 2020, Sunrise’s General Fund loaned $4,662,347 to the SDC (Construction) Fund for continued construction of Reservoir 11, construction of the 152nd reservoir, and contract services for the water systems master plan. This loan is payable at 0% interest within 10 years.
June 30, 2019 Additions Payments June 30, 2020 SDC Note: 2018$ 3,139,120 -$ $ - $ 3,139,120 2019 8,871,658 - - 8,871,658 2020 - 4,662,347 - 4,662,347 $ 12,010,778 4,662,347$ -$ $ 16,673,125
Current portion $ - Long-term portion 16,673,125 Interfund loans represent interim financing or “Pay as you Go” financing from the General Fund to the SDC (Construction) Fund for the 20-year capital improvement plan. The net effect of interfund loans is eliminated from the Statement of Net Position. The composition of interfund loans as of June 30, are as follows: Composition of the interfund loan payable:
Receivable Fund Payable Fund Balance 2018 General Fund SDC (Construction) Fund$ 3,139,120 2019 General Fund SDC (Construction) Fund 8,871,658 2020 General Fund SDC (Construction) Fund 4,662,347 $ 16,673,125
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Sunrise Water Authority Clackamas County, Oregon
Notes to Basic Financial Statements
9. Long-Term Debt, continued B. Interfund Loans Payable, continued
Future maturities on the interfund loans are as follows:
Inerfund Loans Elimination Net Balance Year Ending June 30, Principal Interest Principal Interest Principal Interest 2028$ 3,139,120 $ - $ (3,139,120) -$ -$ -$ 2029 8,871,658 - (8,871,658) - - - 2030 4,662,347 - (4,662,347) - - - Total$ 16,673,125 $ - $ (16,673,125) $ - -$ -$
10. Compensated Absences
The Authority accrues the outstanding paid time off (PTO) earned but not paid to employees. The following represents the Authority’s liability for compensated absences at June 30, 2020:
2020 2019 Balance, June 30 104,452$ $ 88,159 Earned 171,867 156,201 Usage (145,028) (139,908) Balance, June 30$ 131,291 104,452$
Noncurrent portion$ 7,068 $ 6,684 Current portion 124,223 97,768
11. Leases
The Authority leases reservoir, pumping and transmission facilities under non-cancellable operating leases from Oak Lodge Water Services District (OLWSD). The lease consists of a return on invested capital and depreciation based on the percentage of use annually. A 6% rate of return and the annual depreciation is paid on the net fixed asset usage percent. These combine into the utility basis capital cost accrued to OLWSD of $16,497 for fiscal year 2019 and $16,404 paid for fiscal year 2018. Because this is a variable minimum lease payment without a term, it does not meet the definition of lease for GASB Statement No. 87.
12. Authority Net Position
Other assets, net of accumulated amortization, were acquired in the transfer of plant assets to the NCCWC. The bond debt held by Sunrise was acquired to obtain the NCCWC assets, thus per GASB Statement No. 63, the debt is an offset to the Net Investment in Capital Assets.
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Sunrise Water Authority Clackamas County, Oregon
Notes to Basic Financial Statements
12. Authority Net Position, continued
2020 2019 Capital assets held for sale $ 877,234 $ 115,358 Capital assets, not being depreciated 15,054,608 12,925,348 Capital assets, net of accumulated depreciation 50,316,816 48,763,711 Capital assets, net of accumulated amortization 5,014,641 5,211,173 Deferred outflows - underwriters discount 23,842 31,371 Less: Current portion of long term debt $ (1,635,802) $ (1,665,802) Long term debt, net of current portion (4,317,570) (5,953,372) Total long term debt (5,953,372) (7,619,174)
Net investment in capital and other assets $ 65,333,769 $ 59,427,787
Restricted Net Position is composed of cash and investments related to deposits by customers, system development charges collected for capital expenditures, and required debt services reserves for Refunding Revenue as follows:
2020 2019 Water revenue bonds $ 1,591,429 1,591,429$ Capital outlay 7,238,965 2,510,661 OPEB Benefits 33,242 15,766
Total restricted cash and investments$ 8,863,636 4,117,856$
13. Joint Ventures and Joint Assets
North Clackamas County Water Commission (NCCWC)
In partnership with Oak Lodge Water District, the North Clackamas County Water Commission (NCCWC) was organized under Oregon Revised Statues Chapter 190. In August 2005, Sunrise Water Authority and Oak Lodge Water District, agreed to allow the Authority of Gladstone to purchase 10% capacity in the North Clackamas
County Water Commission. NCCWC was established to provide ownership and operations for the supply, pumping, treatment, storage, and transmission of municipal, industrial, and agricultural waters. Each partner shall have the right to call upon the System for the treatment of raw water up to that portion of the design capacity of the System as shall equal the requesting partner’s undivided interest in the System. Each partner shall be obligated to pay for the operating and maintenance costs and reserves based on the cost of service model for the water supplied by or purchased, from the System and delivered to the partner. Sunrise had water purchases, from the NCCWC, of $896,677 and $933,943 for the years ended June 30, 2020 and 2019 respectively.
Sunrise’s investment in the Commission is $14,544,224. The partners currently own interest in the Commission, as follows: Sunrise, 48%, Oak Lodge, 42% and Authority of Gladstone, 10%. The partners may terminate the agreement with one-year’s notice. Upon such notice, the property will be purchased by the non-terminating party (if they desire) or sold to some other entity. The current year operation of the Commission resulted in a net gain on investment to Sunrise of $47,659 after depreciation.
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Sunrise Water Authority Clackamas County, Oregon
Notes to Basic Financial Statements
13. Joint Ventures and Joint Assets, continued North Clackamas County Water Commission (NCCWC), continued
Additionally, Sunrise receives reimbursement for providing technical engineering assistance for the plant. The total amount received from NCCWC for monthly services was $45,719 and $47,069 for the years ended June 30, 2020 and 2019, respectively.
Separately issued financial statements are available for NCCWC at 14496 SE River Rd, Milwaukie, Oregon 97267.
Clackamas Regional Water Supply Commission (CRWSC)
In partnership with Clackamas River Water, the Clackamas Regional Water Supply Commission (CRWSC) was organized under Oregon Revised Statues Chapter 190. The purpose of CRWSC is to allow both agencies to efficiently use available assets and resources to the mutual benefit of the agencies and their customers. The Commission has its own Board of Commissioners and budget. Management of the Commission is provided by both agencies.
Sunrise currently purchases an average of 2.5 million gallons of water per day (MGD), but no more than 3 MGD per day under a minimum annual volume subject to peak day flow criteria. CRW has excess capacity in their water treatment plant and SWA has significant growth potential in its service area. Under the agreement, CRW has agreed to set aside 10MGD for participants in the Commission to use in the future. The wholesale water rate to be charged will be based upon a cost of service model to deliver the water.
CRWSC has no assets. All assets of Sunrise Water Authority remain assets of the SWA. All assets of Clackamas River Water remain assets of CRW. SWA has no net investment in CRWSC.
152nd Reservoir
In partnership with Clackamas River Water (CRW), the Authority has entered into a contract to jointly build and own a 6MG reservoir at 152nd street. The Authority will own 2MG of the reservoir’s capacity in addition to portions of transmission and pumping equipment needed to push the water into the SWA system while CRW owns 4MG of the capacity of this reservoir. SWA will pay CRW for the water that is used from this reservoir through wholesale water rates that will not include depreciation, maintenance or repairs of the reservoir or its equipment. Those costs will be shared proportionally by SWA and CRW based upon various and variable cost share percentages. At June 30, 2019, two annual payments have been made totaling $3,000,000 for this project and a final payment was made on June 30, 2020 for the expected remaining cost of the SWA 1/3rd share for $1,909,641.
14. Leasehold Revenues 2020 2019 Tower Revenues Billed$ 192,946 $ 182,706 Other Lease Revenue 6,600 2,742 Total $ 199,546 $ 185,448
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Sunrise Water Authority Clackamas County, Oregon
Notes to Basic Financial Statements
14. Leasehold Revenues, continued
Sunrise has eight leases for tower space or land for towers that brought in $199,546 and $185,448 for fiscal years ended June 30, 2020 and June 30, 2019, respectively. Two of these leases go out to the year 2040 with an option to renew for another 20 years. The other leases expire before then or are on a month to month basis. Most have between a 3% and 5% annual escalator and an option to terminate with written notice of 6 months prior to automatic renewal. Sunrise entered into a contract of sale in 2019 with a private property owner to purchase approximately 5.27 acres of land, some of which has elevation of 610 feet for siting our next reservoir project. The total consideration for the property transaction is $900,000 and the right for the owners to reside on and lease back the property for $600 a month for a period of eighteen (18) months with an option to lease for another six (6) months at a monthly lease rate of $1,000.
Minimum future rentals as of June 30, 2020 are as follows:
Fiscal Year Lease Income 2021 $ 253,230 2022 161,054 2023 168,013 2024 175,288 2025 182,893 2026-2040 2,637,961 Total 3,578,439$
15. Water Revenues
2020 2019 Water Revenues $ 9,986,079 $ 10,384,184 Leak Adjustments (74,147) (124,108)
Total $ 9,911,932 $ 10,260,076
Shown on Statement of Revenues, Expenses and Changes in Net Position as: Water sales, net of discounts and allowances $ 9,911,932
Sunrise is not responsible for the water bill or repair of a customer's leak beyond the meter. All leakage occurring beyond the meter is the responsibility of the customer. Yet as a customer courtesy, under conditions outlined in the leak adjustment policy, Sunrise allows customers to apply for a billing adjustment due to the unintended consumption of water as a result of a plumbing issue.
Customers are eligible for a maximum of two (2) leak adjustments over a five-year period. That time period will be measured from the date the first adjustment is granted. The billing may be adjusted for a maximum of three consecutive billing cycles. For Fiscal Year 2020 and 2019, Sunrise granted $74,147 and $124,108, respectively, in leak adjustments.
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Sunrise Water Authority Clackamas County, Oregon
Notes to Basic Financial Statements
16. Risk Management
Sunrise is exposed to various risks of loss related to torts, theft of, damage to and destruction of assets, errors and omissions, injuries to employees and natural disasters. Sunrise purchases commercial insurance to minimize its exposure to these risks. Settled claims have not exceeded this commercial coverage for any of the past three years.
17. Deferred Compensation Plans
The Authority offers its employees one deferred compensation plan created in accordance with Internal Revenue Code Section 457. Plan contributions and assets are set aside in trust, with the custodial trustee and administrator, for the exclusive benefit of participants and beneficiaries.
The plan permits participating employees to contribute up to 100% of gross pay or the statutorily prescribed annual dollar limit, whichever is smaller. The Authority may, at its discretion, make employer contributions. The Authority plan, as currently adopted, does not provide for employer contributions. Plan contributions and earnings thereon are available to participating employees upon termination of employment, retirement, death, or unforeseen emergency.
18. Commitments and Contingencies
Legal Matters: The Authority is involved in various legal matters; however, management has been advised by the Authority’s legal counsel that the resolution of these matters will not likely have a significant adverse effect on the Authority’s financial position.
Unemployment Insurance: The Authority is self-insured for unemployment compensation. Liabilities are recorded when it is probable that a loss has occurred, and the amount can be reasonably estimated. The Authority paid no claims for the years ended June 30, 2019 and 2018.
Construction Commitments: Construction in progress totaled $12,366,761 and $9,603,038 at June 30, 2020 and June 30, 2019, respectively. Of these projects, the Authority has made construction commitments of approximately $773,064 and $3,427,383 as of June 30, 2020 and June 30, 2019 respectively.
19. Special Items
In December 2019, the Authority made a $1,200,000 deposit to an Oregon Public Employees Retirement System (OPERS) side-account. The side-account will provide ongoing savings by reducing the Authority’s future employer contribution rate. In addition, this deposit received a $300,000 match from the state’s Employer Incentive Fund.
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Sunrise Water Authority Clackamas County, Oregon
Notes to Basic Financial Statements
20. Subsequent Events
During March 2020, a global pandemic was declared by the World Health Organization related to the rapidly growing outbreak of a novel strain of coronavirus (COVID-19). The pandemic has significantly impacted the economic conditions in the U.S., accelerating during the first half of March, as federal, state and local governments react to the public health crisis, creating significant uncertainties in the U.S. economy. This situation is rapidly changing, and additional impacts may arise that we are not aware of currently. While the disruption is currently expected to be temporary, there is uncertainty around the duration. The ultimate impact of the pandemic on the results of operations, financial position, liquidity or capital resources cannot be reasonably estimated at this time.
21. Restatements
In the fiscal year ended June 30, 2019, NCCWC restated capital assets after determining it had incorrectly calculated depreciation expense on three assets from fiscal year 2015 to fiscal year 2019. Consequently, NCCWC is now increasing accumulated depreciation as of the beginning of fiscal year 2019, as well as restating depreciation expense in fiscal year 2019. As a result of the restatement, the Authority’s investment in NCCWC decreased by $36,506 which resulted in an adjustment to Sunrise by $23,969 as of June 30, 2019.
21. Accounting Pronouncements
The Governmental Accounting Standards Board (GASB) has issued Statement No. 95, Postponement of the Effective Date of Certain Authoritative Guidance to provide temporary relief to governments and other stakeholders in light of the COVID-19 pandemic. The effective dates of certain provisions and pronouncements have been postponed for either a twelve or eighteen month period, depending upon the statement or implementation guide.
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REQUIRED SUPPLEMENTARY INFORMATION
Sunrise Water Authority Clackamas County, Oregon SCHEDULE OF THE PROPORTIONATE SHARE OF THE NET PENSION LIABILITY Last Ten Fiscal Years1
(b/c) Authority's (a) (b)proportionate share Plan fiduciary Authority's Authority's (c)of the net pension net position as Measurement proportion of proportionate share Authority'sliability (asset) as a a percentage of Date the net pension of the net pension covered percentage of its the total pension June 30, liability (asset) liability (asset) payroll covered payroll liability
2019 0.01259137% $ 2,178,005 $ 1,726,828 126.13% 80.20% 2018 0.01126230% 1,706,090 1,574,817 108.34% 82.10% 2017 0.01115987% 1,504,355 1,217,393 123.57% 83.10% 2016 0.01225408% 1,839,622 1,227,645 149.85% 80.53% 2015 0.01415039% 812,439 1,192,041 68.16% 91.90% 2014 0.01592767% (361,035) 1,093,155 ‐33.03% 103.60% 2013 0.01592767% 803,427 1,069,052 75.15% 91.97%
The amounts presented for each fiscal year were actuarial determined at December 31 and rolled forward to the measurement date.
1This schedule is presented to illustrate the requirements to show information for 10 years. However, until a full 10‐year trend has been compiled, information is presented only for the years for which the required supplementary information is available.
NOTES TO SCHEDULE
Changes in Benefit Terms:
The 2013 Oregon Legislature made a series of changes to PERS that lowered projected future benefit payments from the System. These changes included reductions to future Cost of Living Adjustments (COLA) made through Senate Bills 822 and 861. Senate Bill 822 also required the contribution rates scheduled to be in effect from July 2013 to June 2015 to be reduced. The Oregon Supreme Court decision in Moro v. State of Oregon, issued on April 30, 2015, reversed a significant portion of the reductions the 2013 Oregon Legislature made to future System Cost of Living Adjustments (COLA) through Senate Bills 822 and 861. This reversal increased the total pension liability as of June 30, 2015 compared to June 30, 2014 total pension liability.
A legislative change that occurred after the December 31, 2017 valuation date affected the plan provisions reflected for financial reporting purposes. Senate Bill 1049, signed into law in June 2019, introduced a limit on the amount of annual salary included for the calculation of benefits. Beginning in 2020, annual salary in excess of $195,000 (as indexed in future years) will be excluded when determining member benefits. As a result, future Tier 1/Tier 2 and OPSRP benefits for certain active members are now projected to be lower than prior to the legislation. Senate Bill 1049 was reflected in the June 30, 2019 Total Pension Liability as a reduction in liability.
Changes of Assumptions: The PERS Board adopted assumption changes that were used to measure the June 30, 2016 total pension liability and June 30, 2018 total pension liability. For June 30, 2016, the changes included the lowering of the long‐term expected rate of return to 7.50 percent and lowering of the assumed inflation to 2.50 percent. For June 30, 2018, the long‐term expected rate of return was lowered to 7.20 percent. In addition, the healthy mortality assumption was changed to reflect an updated mortality improvement scale for all groups, and assumptions were updated for merit increases, unused sick leave, and vacation pay were updated.
-58- Sunrise Water Authority Clackamas County, Oregon SCHEDULE OF CONTRIBUTIONS ‐ PENSION Last Ten Fiscal Years1
(b) (b/c) (a) Contributions in (a‐b) (c) Contributions Year Statutorily relation to the Contribution liability (asset) as a percent Ended required statutorily required deficiency covered of covered June 30, contribution contribution (excess) payroll payroll
2020 $ 364,000 $ 1,564,000 $ (1,200,000) $ 1,892,611 82.64% 2019 347,459 347,459 ‐ 1,726,828 20.12% 2018 279,351 279,351 ‐ 1,574,817 17.74% 2017 204,756 204,756 ‐ 1,217,393 16.82% 2016 160,418 158,945 1,473 1,227,645 12.95% 2015 122,084 122,084 ‐ 1,192,041 10.24% 2014 137,909 137,909 ‐ 1,093,155 12.62%
The amounts presented for each fiscal year were actuarial determined at December 31 and rolled forward to the measurement date.
1This schedule is presented to illustrate the requirements to show information for 10 years. However, until a full 10‐year trend has been compiled, information is presented only for the years for which the required supplementary information is available.
NOTES TO SCHEDULE
Actuarial Assumptions and Methods Used to Set the Actuarially Determined Contributions:
Actuarial valuation: December 31, 2015 December 31, 2013 December 31, 2011 Effective: July 2017 ‐ June 2019 July 2015 ‐ June 2017 July 2013 ‐ June 2015 Actuarial cost method: Entry Age Normal Entry Age Normal Projected Unit Credit Amortization method: Level percentage of payroll Level percentage of payroll Level percentage of payroll Asset valuation method: Market value Market value Market value Remaining amortization periods: 20 years 20 years N/A Actuarial assumptions Inflation rate 2.50 percent 2.75 percent 2.75 percent Projected salary increases 3.50 percent 3.75 percent 3.75 percent Investment rate of return 7.50 percent 7.75 percent 8.00 percent
-59- Sunrise Water Authority Clackamas County, Oregon SCHEDULE OF THE PROPORTIONATE SHARE OF OTHER POST‐EMPLOYMENT BENEFITS LIABILITY RETIREE HEALTH INSURANCE ACCOUNT Last Ten Fiscal Years1
(b/c) Authority's proportionate (a) (b) share of the net Plan fiduciary Authority's Authority's (c) OPEB liability net position as Measurement proportion of proportionate share Authority's (asset) as a a percentage of Date the net OPEB of the net OPEB covered percentage of its the total OPEB June 30, liability (asset) liability (asset) payroll covered payroll liability
2019 0.01720278% $ (33,242) $ 1,726,828 ‐1.93% 144.40% 2018 0.01412413% (15,766) 1,574,817 ‐1.00% 124.00% 2017 0.01375437% (5,740) 1,217,393 ‐0.47% 108.90%
The amounts presented for each fiscal year were actuarial determined at December 31 and rolled forward to the measurement date.
1This schedule is presented to illustrate the requirements to show information for 10 years. However, until a full 10‐year trend has been compiled, information is presented only for the years for which the required supplementary information is available.
NOTES TO SCHEDULE
Changes of Assumptions:
The PERS Board adopted assumption changes that were used to measure the June 30, 2018 total OPEB liability. The changes include lowering of the long‐term expected rate of return to 7.20 percent. In addition, healthy retiree participation and healthy mortality assumptions were changes to reflect an updated trends and mortality improvement scale for all groups.
-60- Sunrise Water Authority Clackamas County, Oregon SCHEDULE OF CHANGES IN TOTAL OTHER POST‐EMPLOYMENT BENEFIT LIABILITY AND RELATED RATIOS Last Ten Fiscal Years1
2020 2019 2018 Total OPEB Liability Service Interest $ 4,293 $ 4,319 $ 4,744 Interest 2,439 2,238 1,844 Changes of benefit terms ‐ ‐ ‐ Differences between expected and actual experience (9,237) ‐ ‐ Changes of assumptions 10,651 (1,725) (4,199) Benefit payment (4,337) (4,264) (4,090) Net change in total OPEB liability 3,809 568 (1,701) Total OPEB liability ‐ beginning 60,883 60,315 62,016 Total OPEB liability ‐ ending (a) $ 64,692 $ 60,883 $ 60,315
Covered‐employee payroll$ 1,726,828 $ 1,574,817 $ 1,217,393
Total OPEB liability as a percentage of covered‐employee payroll 3.75% 3.87% 4.95%
The amounts presented for each fiscal year were actuarial determined at December 31 and rolled forward to the measurement date.
1This schedule is presented to illustrate the requirements to show information for 10 years. However, until a full 10‐year trend has been compiled, information is presented only for the years for which the required supplementary information is available.
-61- Sunrise Water Authority Clackamas County, Oregon SCHEDULE OF CONTRIBUTIONS OTHER POST‐EMPLOYMENT BENEFITS RETIREE HEALTH INSURANCE ACCOUNT Last Ten Fiscal Years1
(b) (b/c) (a) Contributions in (a‐b) (c) Contributions Year Actuarially relation to the Contribution Authority's as a percent Ended determined actuarially required deficiency covered of covered June 30, contribution contribution (excess) payroll payroll
2020 $ 237 $ 237 $ ‐ $ 1,892,611 0.01% 2019 8,526 8,526 ‐ 1,726,828 0.49% 2018 6,838 6,838 ‐ 1,574,817 0.43% 2017 6,889 6,889 ‐ 1,217,393 0.57%
The amounts presented for each fiscal year were actuarial determined at December 31 and rolled forward to the measurement date.
1This schedule is presented to illustrate the requirements to show information for 10 years. However, until a full 10‐year trend has been compiled, information is presented only for the years for which the required supplementary information is available.
NOTES TO SCHEDULE
Actuarial Assumptions and Methods Used to Set the Actuarially Determined Contributions
Actuarial valuation: December 31, 2015 December 31, 2013 December 31, 2011 Effective: July 2017 ‐ June 2019 July 2015 ‐ June 2017 July 2013 ‐ June 2015 Actuarial cost method: Entry Age Normal Entry Age Normal Projected Unit Credit Amortization method: Level percentage of payroll Level percentage of payroll Level percentage of payroll Amortization period: 10 years 10 years 10 years Asset valuation method: Market value Market value Market value Remaining amortization periods: 20 years 20 years N/A Actuarial assumptions Inflation rate 2.50 percent 2.75 percent 2.75 percent Projected salary increases 3.50 percent 3.75 percent 3.75 percent Investment rate of return 7.50 percent 7.75 percent 8.00 percent Healthcare cost trend rates None. Statute stipulates $60 None. Statute stipulates $60 None. Statute stipulates $60 monthly payment for monthly payment for monthly payment for healthcare insurance healthcare insurance healthcare insurance
-62- Sunrise Water Authority Clackamas County, Oregon SCHEDULE OF CONTRIBUTIONS OTHER POST‐EMPLOYMENT BENEFITS IMPLICIT RATE SUBSIDY Last Ten Fiscal Years1
(b) (b/c) (a) Contributions in (a‐b) (c) Contributions Year Actuarially relation to the Contribution Authority's as a percent Ended determined actuarially required deficiency covered of covered June 30, contribution contribution (excess) payroll payroll
2020 $ 30 $ 30 $ ‐ $ 1,892,611 0.00% 2019 4,337 4,337 ‐ 1,726,828 0.25% 2018 4,264 4,264 ‐ 1,574,817 0.27% 2017 4,090 4,090 ‐ 1,217,393 0.34%
The amounts presented for each fiscal year were actuarial determined at July 1 and rolled forward to the measurement date.
1This schedule is presented to illustrate the requirements to show information for 10 years. However, until a full 10‐year trend has been compiled, information is presented only for the years in which the required supplementary information is available.
NOTES TO SCHEDULE
Actuarial Assumptions and Methods Used to Set the Actuarially Determined Contributions
Fiscal Year Ending: June 30, 2019 June 30, 2018 Actuarial valuation: July 1, 2017 July 1, 2017 Measurement date: June 30, 2018 June 30, 2017 Rollforward of Actuarial Valuation: June 30, 2019 June 30, 2018 Actuarial cost method: Entry Age Normal Entry Age Normal Amortization method: Level percentage of payroll, closed Level percentage of payroll, closed Asset valuation method: Market value Market value Actuarial assumptions: Inflation rate 2.50 percent 2.50 percent Projected salary increases 3.50 percent 3.50 percent Discount Rate 3.87 percent 3.58 percent
(Source: November 8, 2018 Milliman valuation; Exhibit 3)
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OTHER SUPPLEMENTARY INFORMATION
Sunrise Water Authority Clackamas County, Oregon
Description of Budgetary Funds
For financial reporting purposes, the basic financial statements are presented as a unitary enterprise operation, and as such, are reported as a single fund in the basic financial statements. However, for budgetary and legal purposes the financial operations of Sunrise are accounted for in the following funds:
General Fund
This fund accounts for all revenues and expenditures of Sunrise except those required to be accounted for in another fund. The principal revenue source is water sales.
Reserve Fund
This fund accounts for all revenues and expenditures related to routine replacement of Sunrise-owned vehicles and equipment. The principal revenue source is lease from cell towers.
Construction Fund – SDC Fund
This fund accounts for all revenues and expenditures related to the construction of additional transmission waterlines, improving pump stations, upsizing waterlines within new developments and upgrading or construction of reservoirs in Sunrise area of service. This fund also pays the debt service of the water revenue bonds. The principal revenue source is system development charges.
Revenue Bond Reserve Fund
This fund accounts for all revenues and expenditures related to repayment of principal and interest on the water revenue bonded debt issued by Sunrise and accounts for the reserve as required in the Water Revenue Bonds agreement issued by Sunrise. The principal revenue source is interest earnings.
-64- Sunrise Water Authority Clackamas County, Oregon Combining Balance Sheet ‐ All Funds (Budgetary Basis) June 30, 2020
CONSTRUCTION REVENUE BOND GENERAL RESERVE SDC RESERVE FUND FUND FUND FUND TOTAL
ASSETS: Cash and investments$ 8,999,886 $ 601,757 $ 7,238,965 $ 1,744,678 $ 18,585,286 Accounts receivable 1,569,934 ‐ ‐ ‐ 1,569,934 Intergovernmental receivable 23,359 ‐ ‐ ‐ 23,359 Prepaid expenses 120,691 ‐ ‐ ‐ 120,691 Supply inventory 225,308 ‐ ‐ ‐ 225,308
Total assets$ 10,939,178 $ 601,757 $ 7,238,965 $ 1,744,678 $ 20,524,578
LIABILITIES AND FUND BALANCE: Liabilities: Accounts payable$ 621,893 $ 4,286 $ ‐ $ ‐ $ 626,179 Payroll liability 230,139 ‐ ‐ ‐ 230,139 Deposits 490,175 8,328 ‐ ‐ 498,503
Total liabilities 1,342,207 12,614 ‐ ‐ 1,354,821
FUND BALANCE: Unreserved 9,596,971 589,143 7,238,965 1,744,678 19,169,757
Total liabilities and fund balance $ 10,939,178 $ 601,757 $ 7,238,965 $ 1,744,678 $ 20,524,578
RECONCILIATION TO GAAP BASIS NET POSITION Fund balance unreserved all funds$ 19,169,757 Investment in NCCWC 14,544,224 Capital assets available for sale 877,234 Capital assets not being depreciated 15,054,608 Capital assets less accumulated depreciation 50,316,816 Other assets less accumulated amortization 5,014,641 OPEB asset 33,242 Deferred revenue (87,500) Deferred outflows related to pension and OPEB 1,158,012 Deferred outflows related to PERS pension side account 1,499,049 Deferred outflows related to advanced refunding 23,842 Other liabilities ‐ interest payable (72,800) Long term debt (5,953,372) Pension liability (2,178,005) OPEB liability (64,692) Deferred inflows related to pension and OPEB (158,410) GAAP basis net position $ 99,176,646
-65- Sunrise Water Authority Clackamas County, Oregon Combining Schedule of Revenues, Expenditures and Changes in Fund Balance ‐ All Funds (Budgetary Basis) For the Year Ended June 30, 2020
CONSTRUCTION REVENUE BOND GENERAL RESERVE FUND RESERVE FUND FUND SDC FUND TOTAL
REVENUES: Interest $ 212,411 $ 7,561 $ 79,154 $ 37,622 $ 336,748 Water sales, net of discounts and allowances 9,911,932 ‐ ‐ ‐ 9,911,932 Service installations 198,705 ‐ 4,626,043 ‐ 4,824,748 System extension 17,863 ‐ ‐ ‐ 17,863 Leases and rents ‐ 199,546 ‐ ‐ 199,546 Collection fees 37,295 ‐ ‐ ‐ 37,295 Personal service contract 51,711 ‐ ‐ ‐ 51,711 Pass through fees 212,386 ‐ ‐ ‐ 212,386 Miscellaneous 55,520 ‐ ‐ ‐ 55,520
Total revenues 10,697,823 207,107 4,705,197 37,622 15,647,749
EXPENDITURES: Personnel services 2,966,436 ‐ ‐ ‐ 2,966,436 Material and services 4,131,644 36,261 ‐ ‐ 4,167,905 Capital outlay 1,070,270 44,086 2,829,474 ‐ 3,943,830 Debt service Principal ‐ ‐ ‐ 1,510,000 1,510,000 Interest ‐ ‐ ‐ 278,800 278,800
Total expenditures 8,168,350 80,347 2,829,474 1,788,800 12,866,971
Excess of revenues over, (under) expenditures 2,529,473 126,760 1,875,723 (1,751,178) 2,780,778
OTHER FINANCING SOURCES (USES): Sale of assets 30,335 ‐ ‐ ‐ 30,335 Transfers in ‐ ‐ 4,618,274 1,788,800 6,407,074 Transfers out (4,618,274) ‐ (1,788,800) ‐ (6,407,074)
(4,587,939) ‐ 2,829,474 1,788,800 30,335
SPECIAL ITEMS: PERS side account payment (1,200,000) ‐ ‐ ‐ (1,200,000)
Excess of revenues and other financing sources over, (under) expenditures and other financing uses (3,258,466) 126,760 4,705,197 37,622 1,611,113
FUND BALANCE, BEGINNING ‐ BUDGETARY BASIS 12,855,437 462,383 2,533,768 1,707,056 17,558,644
FUND BALANCE, ENDING ‐ BUDGETARY BASIS $ 9,596,971 $ 589,143 $ 7,238,965 $ 1,744,678 $ 19,169,757
-66- Sunrise Water Authority Clackamas County, Oregon Schedule of Revenues, Expenditures and Changes in Fund Balance ‐ Actual and Budget For the Year Ended June 30, 2020 (with comparative totals for the year ended June 30, 2019)
General Fund 2020 Variance Final Original Positive 2019 Actual Budget Budget (Negative) Actual REVENUES: Interest $ 212,411 $ 280,000 $ 280,000 $ (67,589) $ 378,534 Water sales 9,911,932 9,900,000 9,900,000 11,932 10,260,076 Service installations 198,705 125,000 125,000 73,705 218,595 System extension 17,863 ‐ ‐ 17,863 37,984 Collection fees 37,295 40,000 40,000 (2,705) 44,234 Service contracts 51,711 20,000 20,000 31,711 53,918 Right of way ‐ pass through fees 212,386 245,000 245,000 (32,614) 217,870 Miscellaneous 55,520 80,000 80,000 (24,480) 168,421 Sales of assets 30,335 ‐ ‐ 30,335 16,160
Total revenues 10,728,158 10,690,000 10,690,000 38,158 11,395,792
EXPENDITURES: Personnel services: Wages and salaries 2,005,244 2,198,000 2,198,000 192,756 1,819,347 Taxes and benefits 961,192 1,177,000 1,177,000 215,808 889,114
Total personnel services 2,966,436 3,375,000 (1) 3,375,000 408,564 2,708,461
Materials and services: Water purchases 1,795,271 2,000,000 2,000,000 204,729 1,810,974 Office expenses and maintenance 18,297 46,000 46,000 27,703 24,475 Insurance (general) 70,297 70,000 70,000 (297) 68,029 Contracted services 212,554 236,000 236,000 23,446 157,292 Professional services 137,891 79,000 79,000 (58,891) 95,144 Postage 61,403 69,000 69,000 7,597 44,993 Utilities 417,842 508,000 508,000 90,158 453,280 Telephone 30,329 37,000 37,000 6,671 34,480 Vehicle and equipment maintenance 74,067 100,000 100,000 25,933 101,349 Building and grounds maintenance 30,517 41,000 41,000 10,483 21,119 Water system maintenance 566,378 874,000 874,000 307,622 693,006 Operating supplies 21,985 62,000 62,000 40,015 62,104 Education, training and dues 27,645 88,000 88,000 60,355 33,831 Commissioner fees and expenses 5,557 16,000 16,000 10,443 6,769 Banking service fees 161,331 166,000 166,000 4,669 126,785 Regional dues and programs 98,494 100,000 100,000 1,506 86,751 Community outreach 13,352 42,000 42,000 28,648 5,851 Right‐of‐way pass through fees 252,945 245,000 245,000 (7,945) 216,401 Miscellaneous 5,724 16,000 16,000 10,276 17,309 Clackamas Regional Water Supply Commission 129,765 157,000 157,000 27,235 111,645
Total materials and services 4,131,644 4,952,000 (1) 4,952,000 820,356 4,171,587
Capital outlay: Meter services 123,364 455,000 455,000 331,636 65,792 System improvements 781,647 1,940,000 1,940,000 1,158,353 8,262,823 Office and IT equipment 788 ‐ ‐ (788) 1,519 Land ‐ ‐ ‐ ‐ 909,235 Buildings 164,471 525,000 525,000 360,529 13,330 Vehicles ‐ ‐ ‐ ‐ 5,199 Tools and equipment ‐ ‐ ‐ ‐ 9,724
Total capital outlay 1,070,270 2,920,000 (1) 2,920,000 1,849,730 9,267,622
Operating contingency ‐ 1,500,000 (1) 1,500,000 1,500,000 ‐
Total expenditures 8,168,350 12,747,000 12,747,000 4,578,650 16,147,670
Excess of revenues over, (under) expenditures 2,559,808 (2,057,000) (2,057,000) 4,616,808 (4,751,878)
OTHER FINANCING SOURCES, (USES): Transfers out (4,618,274) (6,298,800) (6,298,800) 1,680,526 (1,450,000)
Total other financing sources, (uses) (4,618,274) (6,298,800) (6,298,800) 1,680,526 (1,450,000)
SPECIAL ITEM: PERS side account payment (1,200,000) (1,200,000) (1) ‐ ‐ ‐
Net change in fund balance (3,258,466) (9,555,800) (8,355,800) 6,297,334 (6,201,878)
FUND BALANCE, BEGINNING ‐ BUDGETARY BASIS 12,855,437 14,200,000 14,200,000 (1,344,563) 19,057,315
FUND BALANCE, ENDING ‐ BUDGETARY BASIS 9,596,971 $ 4,644,200 $ 5,844,200 $ 4,952,771 $ 12,855,437
Interfund loan receivable 16,673,125
FUND BALANCE, ENDING $ 26,270,096
(1) Appropriation Level
-67- Sunrise Water Authority Clackamas County, Oregon Schedule of Revenues, Expenditures and Changes in Fund Balance ‐ Actual and Budget For the Year Ended June 30, 2020 (with comparative totals for the year ended June 30, 2019)
Reserve Fund 2020 Variance Final Original Positive 2019 Actual Budget Budget (Negative) Actual
REVENUES: Interest $ 7,561 $ 10,000 $ 10,000 $ (2,439) $ 9,462 Lease revenue 199,546 175,000 175,000 24,546 185,448
Total revenues 207,107 185,000 185,000 22,107 194,910
EXPENDITURES: Materials and services: IT and office equipment 22,404 40,000 40,000 17,596 ‐ Tools and equipment 13,857 10,000 10,000 (3,857) ‐
Total materials and services 36,261 50,000 (1) 50,000 (1) 13,739 ‐
Capital outlay: IT and office equipment 6,578 ‐ ‐ (6,578) ‐ Vehicles 37,508 35,000 35,000 (2,508) 344,704
Total capital outlay 44,086 35,000 (1) 35,000 (1) 9,086 344,704
Contingency ‐ 100,000 (1) 100,000 (1) 100,000 ‐
Total expenditures 80,347 185,000 185,000 122,825 344,704
Net change in fund balance 126,760 ‐ ‐ 126,760 (149,794)
FUND BALANCE, BEGINNING ‐ BUDGETARY BASIS 462,383 400,000 400,000 62,383 612,177
FUND BALANCE, ENDING ‐ BUDGETARY BASIS $ 589,143 $ 400,000 $ 400,000 $ 189,143 $ 462,383
(1) Appropriation Level
-68- Sunrise Water Authority Clackamas County, Oregon Schedule of Revenues, Expenditures and Changes in Fund Balance ‐ Actual and Budget For the Year Ended June 30, 2020 (with comparative totals for the year ended June 30, 2019)
Construction Fund ‐ SDC Fund
2020 Original and Variance Final Positive 2019 Actual Budget (Negative) Actual
REVENUES: Interest$ 79,154 $ ‐ $ 79,154 $ 21,821 Systems development reimbursement 1,124,826 435,200 689,626 514,532 System development improvement 3,501,217 1,354,400 2,146,817 1,575,930
Total revenues: 4,705,197 1,789,600 2,915,597 2,112,283
EXPENDITURES: Capital Outlay: Improvement System Construction 2,829,474 4,510,000 1,680,526 ‐
Total Capital Outlay 2,829,474 4,510,000 (1) 1,680,526 ‐
Total Expenditures 2,829,474 4,510,000 1,680,526 ‐
Excess of Revenues Over, (Under) Expenditures 1,875,723 (2,720,400) 4,596,123 2,112,283
OTHER FINANCING SOURCES, (USES): Transfers in 4,618,274 6,298,800 (1,680,526) 1,450,000 Transfers out (1,788,800) (1,788,800) ‐ (1,786,800)
Total other financing sources, (uses) 2,829,474 4,510,000 (1,680,526) (336,800)
Net change in fund balance 4,705,197 1,789,600 2,915,597 1,775,483
FUND BALANCE, BEGINNING ‐ BUDGETARY BASIS 2,533,768 ‐ 2,533,768 758,285
FUND BALANCE, ENDING ‐ BUDGETARY BASIS 7,238,965 $ 1,789,600 $ 5,449,365 $ 2,533,768
Interfund loan payable (16,673,125)
FUND BALANCE, ENDING $ (9,434,160)
(1) Appropriation Level
-69- Sunrise Water Authority Clackamas County, Oregon Schedule of Revenues, Expenditures and Changes in Fund Balance ‐ Actual and Budget For the Year Ended June 30, 2020 (with comparative totals for the year ended June 30, 2019)
Revenue Bond Reserve Fund 2020 Original and Variance Final Positive 2019 Actual Budget (Negative) Actual
REVENUES: Interest $ 37,622 $ 30,000 $ 7,622 $ 43,206
Total revenues 37,622 30,000 7,622 43,206
EXPENDITURES: Debt service: Principal 1,510,000 1,510,000 ‐ 1,450,000 Interest 278,800 278,800 ‐ 336,800
Total debt service 1,788,800 1,788,800 (1) ‐ 1,786,800
Total expenditures 1,788,800 1,788,800 ‐ 1,786,800
Excess of revenues over, (under) expenditures (1,751,178) (1,758,800) 7,622 (1,743,594)
OTHER FINANCING SOURCES, (USES): Transfers in 1,788,800 1,788,800 ‐ 1,786,800
Total other financing sources, (uses) 1,788,800 1,788,800 ‐ 1,786,800
Net Change in Fund Balance 37,622 30,000 7,622 43,206
FUND BALANCE, BEGINNING ‐ BUDGETARY BASIS 1,707,056 1,700,000 7,056 1,663,850
FUND BALANCE, ENDING ‐ BUDGETARY BASIS $ 1,744,678 $ 1,730,000 $ 14,678 $ 1,707,056
(1) Appropriation Level
-70-
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STATISTICAL SECTION
Sunrise Water Authority Clackamas County, Oregon
Description of Statistical Information (Unaudited)
This part of Sunrise Water Authority’s comprehensive annual financial report presents detailed information as a context for understanding the information in the financial statements, note disclosures, required supplementary information, and other supplementary information about the Authority’s overall financial health.
Contents Page
Financial Trends 72 These schedules contain trend information to help the reader to understand how the Authority’s financial performance and well-being have changed over time.
Revenue Capacity 75 These schedules contain information to help the reader assess the Authority’s most significant local revenue source, water revenue.
Debt Capacity 80 These schedules present information to help the reader assess the affordability of the Authority’s current levels of outstanding debt and its ability to issue additional debt in the future.
Operational Information 83 These schedules contain service and infrastructure data to help the reader understand how the Authority’s financial report relates to the services it provides and the activities it performs.
Demographic and Economic Information 85 These schedules offer demographic and economic indicators to help the reader understand the environment within which the Authority’s financial activities take place.
Sources: Unless otherwise noted, the information in these schedules is derived from the Comprehensive Annual Financial Reports for the relevant year.
71
THIS PAGE INTENTIONALLY LEFT BLANK Sunrise Water Authority Clackamas County, Oregon Schedule of Net Position by Component Last Ten Fiscal Years Ending June 30,
Net Investment Fiscal in Total Year Capital Assets Restricted Unrestricted Net Position
2020$ 65,333,769 $ 8,863,636 $ 24,979,241 $ 99,176,646 2019 Restated 59,427,787 4,117,856 26,764,263 90,309,906 2018 46,372,166 2,422,135 32,862,151 81,656,452 2017 41,742,978 (4) 5,252,704 (3) 27,910,709 74,906,391 2016 38,793,207 (4) 6,028,614 (3) 25,125,880 69,947,701 2015 35,741,695 (4) 4,064,556 (3) 24,547,137 64,353,388 2014 34,644,381 1,052,808 24,608,011 60,305,200 2013 32,921,513 1,051,354 22,783,602 56,756,469 2012 31,795,885 1,372,812 20,606,479 53,775,176 2011 30,606,398 (1) 1,483,667 18,858,022 (2) 50,948,087
(1) Net investment in capital assets have been restated for changes in value of contributed infrastructure and changes to accumulated depreciation for changes in estimated lives of assets.
(2) Unrestricted Net Position have been restated for changes in interest payable and interest expense.
(3) Restricted Net Position includes SDC funds which were previously included in Unrestricted Net Position.
(4) Net investment in capital assets includes Investment in NCCWC which previously had been included in Unrestricted Net Position.
Source: Data is from Sunrise Water Authority's financial records.
-72- Sunrise Water Authority Clackamas County, Oregon Schedule of Changes in Net Position Last Ten Fiscal Years Ending June 30,
2020 2019 Restated 2018 2017 2016 Operating Revenues:
Water Sales $ 9,911,932 $ 10,260,076 $ 9,885,476 $ 8,671,709 $ 8,631,693 System Development Charges 4,626,043 2,090,462 2,350,840 2,399,180 4,004,077 Service Installations 198,705 218,595 167,186 168,742 351,409 Other 599,321 595,375 543,720 629,448 194,913
Total Operating Revenues 15,336,001 13,164,508 12,947,222 11,869,079 13,182,092
Operating Expenses:
Salaries and Wages 2,005,244 1,819,347 1,695,597 1,542,774 1,271,049 Medical Benefits 389,956 341,625 294,987 259,108 207,176 Retirement Benefits 629,277 343,780 317,114 347,071 804,228 Payroll Taxes 185,106 176,115 171,148 149,854 115,039 Water Purchases 1,795,271 1,810,974 1,575,037 1,855,082 1,813,942 Electricity 417,842 453,280 443,945 410,544 436,190 System and Equipment Maintenance 670,962 815,474 504,191 370,615 226,959 Professional Services 137,891 95,144 77,849 181,609 168,658 Contract Services 212,554 157,292 222,549 158,115 316,710 Property Insurance 70,297 68,029 65,902 73,000 78,151 Office Expenses 110,029 103,948 107,170 105,060 104,066 Education, Training and Dues 27,645 33,831 30,918 39,148 36,496 Dues and Fees 259,825 213,536 198,076 157,855 140,309 Board of Commissioners 5,557 6,769 18,361 17,042 25,966 Other 460,032 423,440 496,314 420,960 258,725 Depreciation 1,798,549 1,720,695 1,580,403 1,467,110 1,460,996 Total Operating Expenses 9,176,037 8,583,279 7,799,561 7,554,947 7,464,660 Operating Income (Loss): 6,159,964 4,581,229 5,147,661 4,314,132 5,717,432
Nonoperating Revenues and Expenses:
Earnings on Investments 336,748 453,023 327,946 82,035 18,700 Property Taxes ‐ ‐ ‐ ‐ ‐ Gain (Loss) on Investment in NCCWC 47,659 107,804 (243,873) (75,237) (210,136) Gain (Loss) on Sale of Assets 15,640 16,160 (80) (579) (3,430) Interest Expense (110,394) (169,194) (225,460) (289,127) (366,282) Nonoperating Income (Loss) 289,653 407,793 (141,467) (282,908) (561,148) Net Income before Capital Contributions 6,449,617 4,989,022 5,006,194 4,031,224 5,156,284 Capital Contributions 2,117,123 3,688,401 480,490 927,466 909,258 Special Item: PERS pension side account 300,000 ‐ ‐ ‐ ‐ Change in Net Position 8,866,740 8,677,423 5,486,684 4,958,690 6,065,542 Restatement ‐ (23,969) 1,317,442 (5) (54,065) ‐ Net Position, Beginning 90,309,906 81,656,452 76,169,768 69,893,636 63,882,159 Net Position, Ending $ 99,176,646 $ 90,309,906 $ 81,656,452 $ 74,852,326 $ 69,947,701
(1) Restatement was due to changes in estimated lives for depreciation and for changes in contributed infrastructure values. (2) Restatement was due to restatement of interest payable and changes in interest expense. (3) Retirement is negative due to change in accounting principle for pension expense. (4) Restatement was due to change in accounting principle for pension expense. (5) Restatement was due to change in the amortization of water rights.
Source : Sunrise Water Authority Financial Statements -73- Sunrise Water Authority Clackamas County, Oregon Schedule of Changes in Net Position Last Ten Fiscal Years Ending June 30,
2015 2014 2013 2012 2011
$ 7,505,007 $ 6,658,416 $ 6,835,156 $ 6,412,746 $ 5,457,165 2,677,523 3,484,148 2,409,851 1,945,333 965,423 295,991 385,830 290,285 224,784 130,794 354,327 262,897 256,466 247,281 287,609
10,832,848 10,791,291 9,791,758 8,830,144 6,840,991
1,287,864 1,308,379 1,208,914 1,122,300 1,150,346 249,114 334,489 326,673 334,365 313,619 (300,243) (3) 178,734 139,356 138,236 84,721 123,690 129,453 148,642 132,062 132,570 1,477,646 1,779,299 1,370,321 1,262,508 1,226,300 400,202 375,040 374,849 358,543 360,869 232,704 364,154 373,335 200,961 195,384 63,345 64,268 71,933 116,396 59,033 196,906 178,156 167,599 82,568 81,389 69,057 64,007 64,263 57,126 56,369 164,265 143,643 130,987 118,251 117,199 32,498 62,747 37,519 23,508 19,989 202,219 124,377 129,029 119,188 105,369 20,520 21,486 13,669 18,213 21,160 184,517 37,587 52,319 25,812 32,297 1,406,539 1,429,584 1,409,623 1,397,799 1,381,987 5,810,843 6,595,403 6,019,031 5,507,836 5,338,601 5,022,005 4,195,888 3,772,727 3,322,308 1,502,390
15,099 12,064 12,468 9,573 10,333 ‐ ‐ ‐ ‐ 1,074 (447,020) (244,325) (362,004) (344,851) (447,994) (149,244) 3,122 (3,612) (18,326) 2,075 (872,083) (774,718) (829,316) (883,015) (933,450) (2) (1,453,248) (1,003,857) (1,182,464) (1,236,619) (1,367,962) 3,568,757 3,192,031 2,590,263 2,085,689 134,428 684,376 356,700 391,030 741,400 510,530 ‐ ‐ ‐ ‐ ‐ 4,253,133 3,548,731 2,981,293 2,827,089 644,958 (676,174) (4) ‐ ‐ ‐ (15,515) (1) 60,305,200 56,756,469 53,775,176 50,948,087 50,318,644 $ 63,882,159 $ 60,305,200 $ 56,756,469 $ 53,775,176 $ 50,948,087
-74- Sunrise Water Authority Clackamas County, Oregon Distribution of Water Sales Last Ten Fiscal Years Ending June 30,
Residential Customers Fiscal Water % of % of Year Sales Total CCF Total 2020 $ 7,514,236 75.8% $ 1,816,301 75.8% 2019 7,778,164 78.7% 1,953,745 75.8% 2018 7,417,107 75.0% 1,851,950 75.0% 2017 4,731,163 54.9% 1,203,750 54.1% 2016 4,949,887 54.9% 1,339,702 54.5% 2015 4,813,637 66.5% 1,472,011 65.5% 2014 5,087,370 74.2% 1,543,446 72.7% 2013 5,025,501 73.5% 1,564,573 70.9% 2012 4,591,526 71.6% 1,462,349 70.8% 2011 3,825,473 70.1% 1,487,692 72.7%
Non Residential Customers Fiscal Water % of % of Year Sales Total CCF Total
2020 $ 2,397,696 24.2%$ 579,875 24.2% 2019 2,481,912 25.0% 623,755 26.0% 2018 2,471,369 25.0% 617,317 25.0% 2017 3,880,346 45.1% 1,021,297 45.9% 2016 4,059,316 45.1% 1,116,482 45.5% 2015 2,425,352 33.5% 773,724 34.5% 2014 1,773,059 25.8% 578,333 27.3% 2013 1,809,655 26.5% 641,520 29.1% 2012 1,821,220 28.4% 603,609 29.2% 2011 1,631,692 29.9% 559,044 27.3%
Total Fiscal Water Year Sales CCF 2020 $ 9,911,932 $ 2,396,176 2019 9,885,476 2,577,500 2018 9,885,476 2,469,266 2017 8,611,509 2,225,047 2016 9,009,203 2,456,184 2015 7,238,989 2,245,735 2014 6,860,429 2,121,779 2013 6,835,156 2,206,093 2012 6,412,746 2,065,958 2011 5,457,165 2,046,736
Source: Data is from Sunrise Water Authority's utility billing records.
-75- Sunrise Water Authority Clackamas County, Oregon Largest Water Consumers Fiscal Years Ending June 30,
2020 2011 % of % of CCF Total CCF (1) Total
Kaiser Health Foundation $ 62,134 2.59% n/a North Clackamas School District 27,823 1.16% n/a Crown Court Apartments 24,602 1.03% n/a Squires Court Apartments 23,086 0.96% n/a Townhomes with a View 22,942 0.96% n/a Sequoia Equities 20,694 0.86% n/a Siri and Son Farms 19,242 0.80% n/a ROIC Oregon LLC 16,921 0.71% n/a Stoneridge Apartments 16,034 0.67% n/a Twin Creek LLC 14,281 0.60% n/a Rock Creek Apts 13,292 0.55% n/a Sunridge Terrace Apartments 12,481 0.52% n/a Windswept Waters HOA 11,827 0.49% n/a Town Center Heights 9,345 0.39% n/a North Clackamas Parks 8,608 0.36% n/a CSM Corp 9,419 0.39% n/a Mount Scott Commons 9,303 0.39% n/a Village at Sunrise Apts 8,071 0.34% n/a Indian Bluff Mobile Home Park 7,758 0.32% n/a Sunnyside Place Apts 12,234 0.51% n/a Sunnyside 145, LLC 8,947 0.37% n/a Hawks Ridge Apts 12,927 0.54% n/a Sunnyside Inn & Suites 8,229 0.34% n/a Stevens Creek Apartments 8,673 0.36% n/a Caldera at Sunnybrook 7,126 0.30% n/a
Overall Total 2,396,176 16.51% 2,027,921
Note:
(1) 2010 Top consumers data not available
Source: Data is from Sunrise Water Authority's financial records.
-76- Sunrise Water Authority Clackamas County, Oregon Residential Bi‐monthly Rates and Services Charge Last Ten Fiscal Years Ending June 30,
Fiscal First Second Third Fourth Service Year Tier Tier Tier Tier Charge
2020 Rate per CCF 1.75$ 2.50$ 2.80$ 3.20$ 18.00$ CCF per Tier 1‐8 9‐20 21‐32 33+
2019 Rate per CCF 1.75$ 2.50$ 2.80$ 3.20$ 18.00$ CCF per Tier 1‐8 9‐20 21‐32 33+
2018 Rate per CCF 1.75$ 2.50$ 2.80$ 3.20$ 18.00$ CCF per Tier 1‐8 9‐20 21‐32 33+
2017 Rate per CCF 1.75$ 2.50$ 2.80$ 3.20$ 16.00$ CCF per Tier 1‐8 9‐20 21‐32 33+
2016 Rate per CCF 1.75$ 2.50$ 2.80$ 3.20$ 14.00$ CCF per Tier 1‐8 9‐20 21‐32 33+
2015 Rate per CCF 1.75$ 2.70$ 2.95$ 3.20$ 8.75$ CCF per Tier 1‐10 11‐20 21‐35 35+
2014 Rate per CCF 1.75$ 2.70$ 2.95$ 3.20$ 8.75$ CCF per Tier 1‐10 11‐20 21‐35 35+
2013 Rate per CCF 1.75$ 2.70$ 2.95$ 3.20$ 8.75$ CCF per Tier 1‐10 11‐20 21‐35 35+
2012 Rate per CCF 1.75$ 2.70$ 2.95$ 3.20$ 8.75$ CCF per Tier 1‐10 11‐20 21‐35 35+
2011 Rate per CCF 1.67$ 2.53$ 2.96$ 4.75$ CCF per Tier 1‐14 15‐47 48+
Rates are based on a 5/8" X 3/4" meter. Monthly residential rates are the same as bi‐monthly per CCF, while the tier structure is half of the bi‐monthly structure. The service charge is half of the bi‐monthly rate.
Source: Data is from Sunrise Water Authority's financial records.
-77- Sunrise Water Authority Clackamas County, Oregon Commercial and Monthly Customers Rates and Service Charges Last Ten Fiscal Years Ending June 30,
Fiscal Year 2020 2019 2018 2017 2016 2015 2014 2013 2012 2011 Rates
Tier One 0‐15$ 2.35 2.35$ 2.35$ 2.35$ 2.35$ 1.75$ 1.75$ 1.75$ 1.75$ $ 1.93 Tier Two 16‐30 2.60 2.60 2.60 2.60 2.60 2.70 2.70 2.70 2.70 2.58 Tier Three 31‐45 2.85 2.85 2.85 2.85 2.85 2.95 2.95 2.95 2.95 3.33 Tier Four 46+ 3.20 3.20 3.20 3.20 3.20 3.20 3.20 3.20 3.20
Service Charge* Meter Size
5/8" $ 18.00 18.00$ 18.00$ 16.00$ 14.00$ 8.75$ 8.75$ 8.75$ 8.75$ 4.75$ 3/4" 27.00 27.00 27.00 24.00 14.00 8.75 8.75 8.75 8.75 4.75 1" 36.00 36.00 36.00 32.00 35.00 15.90 15.90 15.90 15.90 8.90 1‐1/2" 90.00 90.00 90.00 80.00 70.00 18.75 18.75 18.75 18.75 11.10 2" 144.00 144.00 144.00 128.00 112.00 21.15 21.15 21.15 21.15 13.65 3" 270.00 270.00 270.00 240.00 210.00 54.95 54.95 54.95 54.95 43.95 4" 450.00 450.00 450.00 400.00 350.00 62.15 62.15 62.15 62.15 49.80 6" 900.00 900.00 900.00 800.00 700.00 84.75 84.75 84.75 84.75 71.95 8" 1,440.00 1,440.00 1,440.00 1,280.00 1,120.00 127.20 127.20 127.20 127.20 104.60 10" 2,070.00 2,070.00 2,070.00 1,840.00 1,610.00 157.80 157.80 157.80 157.80 127.55
* The service charge for larger meters is based upon equivalent meter sizes with a 5/8" X 3/4" being the base.
Non‐Residential rates are the same per tier for water usage. However, the CCF per tier and the service charge are based upon the meter size.
Source: Data is from Sunrise Water Authority's financial records.
-78- Sunrise Water Authority Clackamas County, Oregon System Development Charges and Meter Sales Last Ten Fiscal Years Ending June 30,
System Total Equivalent Development System Fiscal Meters Residential Charges Development Year Sold Units (ERU) Per ERU ** Revenues
2020 441 506 $ 9,436 $ 4,626,043 2019 191 238 8,989 2,090,462 2018 206 256 8,915 2,350,840 2017 251 310 8,500 2,398,980 2016 464 516 8,200 4,004,077 2015 328 341 8,076 2,677,523 2014 445 469 7,998 3,484,148 2013 335 350 7,269 2,409,851 2012 238 300 6,913 1,945,333 2011 139 155 6,534 965,423
** Rate is revised on January 1 of each year, based upon a component of the Oregon 20 Year Bond Index and the Construction and Engineering Index as of December.
Source: Data is from Sunrise Water Authority's financial records.
-79- Sunrise Water Authority Clackamas County, Oregon Pledged Revenue for Senior Water Revenue Bond Debt Last Ten Fiscal Years Ending June 30,
Net Revenue Senior Debt Service Fiscal Gross Operating Available for Debt Coverage (2) Year Revenues (1) Expenses Debt Service Principal Interest Total 1.25 1.00
2020$ 15,672,749 $ 7,377,488 $ 8,295,261 $ 1,510,000 $ 278,800 $ 1,788,800 4.64 2.05 2019 13,617,531 6,862,584 6,754,947 1,450,000 336,800 1,605,802 4.21 2.90 2018 13,275,168 6,219,158 7,056,010 1,385,000 392,200 1,777,200 3.97 2.65 2017 11,951,114 6,087,837 5,863,277 1,695,000 460,000 2,155,000 2.72 1.61 2016 13,200,792 6,003,664 7,197,128 1,635,000 525,400 2,160,400 3.33 1.48 2015 10,847,947 4,404,304 6,443,643 1,770,000 390,429 2,160,429 2.98 1.74 2014 10,803,355 5,165,819 5,637,536 865,000 394,855 1,259,855 4.47 1.71 2013 9,804,226 4,609,408 5,194,818 820,000 426,831 1,246,831 4.17 2.23 2012 8,839,717 4,110,037 4,729,680 800,000 456,498 1,256,498 3.76 2.22 2011 6,851,323 3,956,613 2,894,710 775,000 482,692 1,257,692 2.30 1.53
(1) Gross revenues include operating revenue, system development charges and allowable interest income.
(2) Required coverage for senior debt utilizing system development charges is 1.25. Required coverage for senior debt without utilizing system development charges is 1.00. Sunrise has exceeded both ratios every year since 2008.
Source: Data is from Sunrise Water Authority financial records
-80- Sunrise Water Authority Clackamas County, Oregon Pledged Revenue for Subordinate Water Revenue Bond Debt Last Ten Fiscal Years Ending June 30,
Net Revenue Senior Available for Subordinate Debt Service Fiscal Gross Operating Debt Subordinate Debt Year Revenues (1) Expenses Service Debt Service Principal Interest Total Coverage (2)
2020$ 15,672,749 $ 7,377,488 $ 1,788,800 $ 6,506,461 N/A N/A N/A N/A 2019 13,617,531 6,862,584 1,788,800 4,966,147 N/A N/A N/A N/A 2018 13,275,168 6,219,158 1,777,200 5,278,810 N/A N/A N/A N/A 2017 11,951,114 6,087,837 2,155,000 3,708,277 N/A N/A N/A N/A 2016 13,200,792 6,003,664 2,160,400 5,036,728 N/A N/A N/A N/A 2015 10,847,947 4,404,304 2,160,429 4,283,214 N/A N/A N/A N/A (3) 2014 10,803,355 5,165,819 1,259,855 4,377,681 530,000 380,372 910,372 4.81 2013 9,804,226 4,609,408 1,246,831 3,947,987 520,000 399,193 919,193 4.30 2012 8,839,717 4,110,037 1,256,498 3,473,182 300,000 416,656 716,656 4.85 2011 6,851,323 3,956,613 1,257,692 1,637,018 485,000 433,955 918,955 1.78
(1) Gross revenues include operating revenue, system development charges and allowable interest income.
(2) Required coverage for subordinate debt is 1.25 after coverage for the senior debt.
(3) In July 2014, subordinate water revenue bonds were refunded with a new issue of water revenue bonds.
Source: Data is from Sunrise Water Authority's financial records.
-81- Sunrise Water Authority Clackamas County, Oregon Ratio of Bonded Debt to Personal Income Last Ten Fiscal Years Ending June 30,
Authority's Clackamas As a Share County Of Fiscal Year Bond Bond Revenue GO Bonded DebtPer Capita Personal Ended Discount Premium Bonds Bonds (4) per Capita (1)Income (2) Income (3)
2020$ ‐ $ 493,372 $ 5,460,000 $ ‐ $ 132.30 N/A N/A 2019 ‐ 649,174 6,970,000 ‐ 165.85 $ 41,866 0.40% 2018 ‐ 804,976 8,420,000 ‐ 205.00 42,969 0.48% 2017 ‐ 960,778 9,805,000 ‐ 239.24 42,134 0.57% 2016 ‐ 1,116,580 11,500,000 ‐ 280.37 40,813 0.69% 2015 ‐ 1,272,382 13,135,000 ‐ 320.16 38,852 0.82% 2014 (87,478) 1,428,184 16,680,000 ‐ 400.46 36,267 1.10% 2013 (95,430) ‐ 18,075,000 ‐ 399.55 37,197 1.07% 2012 (103,382) ‐ 19,415,000 290,000 435.59 35,543 1.23% 2011 (111,334) ‐ 20,715,000 415,000 467.08 35,553 1.31%
Notes: (1) Estimated District population 45,000 (2) Data is for calendar year (3) Clackamas County personal income data (4) GO Bonded Debt final payment during FY 2011‐12
Source: Sunrise Water Authority Annual Financial Statements and Records US Census Bureau, American Community Survey Department of Human Resources, State of Oregon Employment Division, Clackamas County
-82- Sunrise Water Authority Clackamas County, Oregon Water Loss Analysis Last Ten Fiscal Years Ending June 30,
Water Water Ratio of Fiscal Sold Purchased Water Sold to Year in CCF in CCF Water Purchased
2020 2,396,176 2,427,168 98.7% 2019 2,577,500 2,718,740 94.8% 2018 2,469,266 2,699,099 91.5% 2017 2,225,047 2,464,855 90.3% 2016 2,456,184 2,650,879 92.7% 2015 2,245,735 2,459,263 91.3% 2014 2,141,779 2,226,610 96.2% 2013 2,206,093 2,304,008 95.8% 2012 2,065,958 2,166,136 95.4% 2011 2,046,736 2,135,441 95.8%
Source: Data is from Sunrise Water Authority's financial records.
-83- Sunrise Water Authority Clackamas County, Oregon Operational Statistics Last Ten Fiscal Years Ending June 30,
Water Total Service Average Daily Miles of Storage Number Number of Fiscal Total Area (Sq. Consumption Water Capacity of Pump Year Customers Miles) (MGD) Mains (MG) Reservoirs Stations
2020 16,075 21 5.0 252.3 21.6 14 16 2019 15,634 21 4.6 253.0 21.6 14 16 2018 15,408 21 5.5 245.0 18.8 14 18 2017 15,174 21 5.1 252.5 18.8 14 18 2016 15,509 21 5.4 250.3 18.8 14 17 2015 15,045 21 5.1 247.5 18.8 14 17 2014 14,720 21 4.6 230.3 18.8 14 17 2013 14,275 21 4.8 230.3 18.8 14 17 2012 13,940 21 4.4 230.3 18.8 14 17 2011 13,702 21 5.0 230.0 18.8 14 17
-84- Sunrise Water Authority Clackamas County, Oregon Number of Employees Last Ten Fiscal Years Ending June 30,
Fiscal Year Administrative Operational Total
2020 10 15 25 2019 11 14 25 2018 10 14 24 2017 10 14 24 2016 9 13 22 2015 9 9 18 2014 10 9 19 2013 11 8 19 2012 10 8 18 2011 9 9 18
Source: Sunrise Water Authority's Payroll Records
-85- Sunrise Water Authority Clackamas County, Oregon Economic and Demographic Statistics Fiscal Years Ending June 30,
Portland Personal Metropolitan Income Per Capita Area Fiscal (thousands Personal Unemployment Year Population (1) of dollars) (1) Income (1) Rate (2)
2020 N/A N/A N/A 11.6 2019 418,187$ 17,507,817 $ 41,866 4.0 2018 416,075 17,878,327 42,969 3.7 2017 412,672 17,387,522 42,134 4.1 2016 408,062 16,654,234 40,813 5.1 2015 401,515 15,599,661 38,852 5.5 2014 394,972 14,324,450 36,267 6.1 2013 388,263 14,442,219 37,197 7.4 2012 383,857 13,643,429 35,543 8.5 2011 380,207 13,517,499 35,553 9.9
(1) Data is for calendar years for Clackamas County from Bureau of Economic Analysis.
(2) Data includes Clackamas County, Oregon.
Sources: Center for Population Research and Census, School of Urban and Public Affairs, Portland State University Department of Human Resources, State of Oregon, Employment Division Clackamas County
-86- Sunrise Water Authority Clackamas County, Oregon Major Employers within Clackamas County Fiscal Years Ending June 30,
2020 2011 Estimated Estimated Name Product or Service Employment Employment
Blount, Inc. Outdoor Products 4,000 3,100
Kaiser Permanente Medical Center and Clinics 2,010 2,011
PCC Structural (Precision Castparts Corp.) Industrial Castings 1,700 1,700
J. Frank Schmidt & Son Co. Wholesale Nursery 750 N/A
Fred Meyer, Inc. Distribution Center 500 1,375
Safeway Stores, Inc. Distribution Center and Bakery N/A 930
Warn Industries ‐ Portland 4‐Wheel Drive After Market Equipment 551 250
Supervalu (Unified Grocers, Inc.) Warehouse/Offices/Retail Trade N/A 630
Camp Withycombe Oregon National Guard 210 610
TNT Reddaway/FedX Trucking N/A 0
Sears Department Store N/A 400
Costco Shopping Club 400 350
OECO Corp. Power Supplies and Magnetic Products 300 300
Pacific Seafood, Inc. Distribution Center 200 1,300
Vigor Industrial (Oregon Iron Works) Steel Fabrication N/A 200
Source: ReferenceUSA Lake Oswego Library
-87-
AUDIT COMMENTS AND DISCLOSURES
INDEPENDENT AUDITOR’S REPORT ON COMPLIANCE AND ON INTERNAL CONTROL OVER FINANCIAL REPORTING ON AN AUDIT OF FINANCIAL STATEMENTS PERFORMED IN ACCORDANCE WITH OREGON STATE REGULATION
Board of Commissioners Sunrise Water Authority Happy Valley, Oregon
We have audited the basic financial statements of Sunrise Water Authority, as of and for the year ended June 30, 2020 and have issued our report thereon dated December 23, 2020. We conducted our audit in accordance with auditing standards generally accepted in the United States of America and the provisions of the Minimum Standards of Audits of Oregon Municipal Corporations, prescribed by the Secretary of State. Our report includes a reference to other auditors who audited the financial statements of North Clackamas County Water Commission, a joint venture of the Sunrise Water Authority as described in our report on the Sunrise Water Authority’s financial statements. This report does not include the results of the other auditors’ testing of internal control over financial reporting or compliance and other matters that are reported on separately by those auditors.
Compliance As part of obtaining reasonable assurance about whether Sunrise Water Authority’s financial statements are free of material misstatement, we performed tests of its compliance with certain provisions of laws, regulations, contracts, and grant agreements, including the provisions of Oregon Revised Statutes as specified in the Oregon Administrative Rules 162-10-000 through 162-10-330 of the Minimum Standards for Audits of Oregon Municipal Corporations, as set forth below, noncompliance with which could have a direct and material effect on the financial statements:
• Deposits of public funds with financial institutions (ORS Chapter 295). • Indebtedness limitations, restrictions, and repayments. • Budgets legally required (ORS Chapter 294). • Insurance and fidelity bonds in force or required by law. • Programs funded from outside sources. • Highway revenues used for public highways, roads, and streets. Sunrise Water Authority does not receive highway funds. • Authorized investment of surplus funds. (ORS Chapter 294). • Public contracts and purchasing (ORS Chapters 279A, 279B, and 279C). • Accountability for collecting or receiving money by elected officials. The Authority does not have any elected officials collecting or receiving money.
However, providing an opinion on compliance with those provisions was not an objective of our audit and, accordingly, we do not express such an opinion. The results of our tests and those of the other auditors disclosed no instances of noncompliance or other matters that are required to be reported under Minimum Standards for Audits of Oregon Municipal Corporations.
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OAR 162-10-0230 Internal Control In planning and performing our audit of the financial statements, we considered Sunrise Water Authority’s internal control over financial reporting (internal control) as a basis for designing audit procedures that are appropriate in the circumstances for the purpose of expressing our opinions on the financial statements, but not for the purpose of expressing an opinion on the effectiveness of Sunrise Water Authority’s internal control. Accordingly, we do not express an opinion on the effectiveness of Sunrise Water Authority’s internal control.
A deficiency in internal control exists when the design or operation of a control does not allow management or employees, in the normal course of performing their assigned functions, to prevent, or detect and correct, misstatements on a timely basis. A material weakness is a deficiency, or a combination of deficiencies, in internal control, such that there is a reasonable possibility that a material misstatement of the entity’s financial statements will not be prevented or detected and corrected on a timely basis. A significant deficiency is a deficiency, or a combination of deficiencies, in internal control that is less severe than a material weakness, yet important enough to merit attention by those charged with governance.
Our consideration of internal control was for the limited purpose described in the first paragraph of this section and was not designed to identify all deficiencies in internal control that might be material weaknesses or significant deficiencies. Given these limitations, during our audit we and the other auditors did not identify any deficiencies in internal control that we consider to be material weaknesses. However, material weaknesses may exist that have not been identified.
Purpose of this Report
The purpose of this report is solely to describe the scope of our testing of internal control and compliance and the results of that testing, and not to provide an opinion on the effectiveness of the entity’s internal control or on compliance. This report is an integral part of an audit performed in accordance with Minimum Standards of Audits of Oregon Municipal Corporations, prescribed by the Secretary of State, in considering the entity’s internal control and compliance. Accordingly, this communication is not suitable for any other purpose.
For Merina+Co Tualatin, Oregon December 23, 2020
89 Sunrise Water Authority 10602 SE 129th Avenue Happy Valley, Oregon 97086
December 23, 2020
To the Board of Commissioners Sunrise Water Authority Happy Valley, Oregon
We have audited the financial statements of Sunrise Water Authority, as of and for the year ended June 30, 2020, and have issued our report thereon dated December 23, 2020. Professional standards require that we advise you of the following matters relating to our audit.
Our Responsibility in Relation to the Financial Statement Audit
As communicated in our engagement letter dated May 26, 2020, our responsibility, as described by professional standards, is to form and express an opinions about whether the financial statements that have been prepared by management with your oversight are presented fairly, in all material respects, in accordance with accounting principles generally accepted in the United States of America. Our audit of the financial statements does not relieve you or management of your respective responsibilities.
Our responsibility, as prescribed by professional standards, is to plan and perform our audit to obtain reasonable, rather than absolute, assurance about whether the financial statements are free of material misstatement. An audit of financial statements includes consideration of internal control over financial reporting as a basis for designing audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the entity’s internal control over financial reporting. Accordingly, as part of our audit, we considered the internal control of Sunrise Water Authority solely for the purpose of determining our audit procedures and not to provide any assurance concerning such internal control.
We are also responsible for communicating significant matters related to the audit that are, in our professional judgment, relevant to your responsibilities in overseeing the financial reporting process. However, we are not required to design procedures for the purpose of identifying other matters to communicate to you.
Planned Scope and Timing of the Audit
We conducted our audit consistent with the planned scope and timing we previously communicated to you.
Compliance with All Ethics Requirements Regarding Independence
The engagement team, others in our firm, as appropriate, our firm, and our network firms have complied with all relevant ethical requirements regarding independence.
Qualitative Aspects of the Entity’s Significant Accounting Practices
Significant Accounting Policies
Management has the responsibility to select and use appropriate accounting policies. A summary of the significant accounting policies adopted by Sunrise Water Authority is included in Note 1 to the financial statements. As described in Note 21 to the financial statements, the Sunrise Water Authority implemented one new accounting pronouncement issued by the Governmental Accounting Standards Board (GASB). That pronouncement was:
• GASB Statement No. 95, Postponement of the Effective Date of Certain Authoritative Guidance
Significant Accounting Estimates
Accounting estimates are an integral part of the financial statements prepared by management and are based on management’s current judgments. Those judgments are normally based on knowledge and experience about past and current events and assumptions about future events. Certain accounting estimates are particularly sensitive because of their significance to the financial statements and because of the possibility that future events affecting them may differ markedly from management’s current judgments.
The most sensitive accounting estimates affecting the financial statements are described below.
Management’s estimate of unbilled revenue is calculated based on the number of days of unbilled revenue at year-end in comparison to the next bill.
Management’s estimate of the allowance for doubtful accounts is based on a percentage of total receivables.
Management’s estimate of the accumulated depreciation is based on historical cost or estimated historical cost if purchased or constructed and donated capital assets are recorded at estimated fair market value at the date of donation.
Management’s estimate of the compensated absences payable is based on current wages.
Management’s estimate of the net pension liability and other post-employment benefits (OPEB) liability are calculated based on information provided by the State of Oregon (PERS) that was determined by an actuary.
We evaluated the key factors and assumptions used to develop these estimates and determined that they are reasonable in relation to the basic financial statements taken as a whole and in relation to the applicable opinion units.
2
Financial Statement Disclosures
Certain financial statement disclosures involve significant judgment and are particularly sensitive because of their significance to financial statement users. The most sensitive disclosures affecting Sunrise Water Authority’s financial statements relate to:
The disclosure of Capital Assets in Note 5 to the financial statements summarizes the changes in capital assets for the year ended June 30, 2020 and 2019.
The disclosure of the City’s Pension Plan in Note 7 to the financial statements describes the City’s Pension Plan benefits, contributions, pension assets, liabilities, expense, deferred outflows/inflows of resources, and actuarial assumptions/projections.
The disclosure of the City’s OPEB Plan in Note 8 to the financial statements describes the City’s OPEB Plan benefits, contributions, OPEB assets, liabilities, expense, deferred outflows/inflows of resources, and actuarial assumptions/projections.
The disclosure of Long-Term Debt in Note 9 to the financial statements summarizes the changes in long-term debt for the year ended June 30, 2020 and 2019.
The disclosure of Joint Ventures in Note 13 to the financial statements states the net gain or loss on investment for the year ended June 30, 2020 and 2019 in the North Clackamas Water Commission and Clackamas Regional Water Supply Commission.
Significant Difficulties Encountered during the Audit
We encountered no significant difficulties in dealing with management relating to the performance of the audit.
Uncorrected and Corrected Misstatements
For purposes of this communication, professional standards require us to accumulate all known and likely misstatements identified during the audit, other than those that we believe are trivial, and communicate them to the appropriate level of management. Further, professional standards require us to also communicate the effect of uncorrected misstatements related to prior periods on the relevant classes of transactions, account balances or disclosures, and the financial statements as a whole and each applicable opinion unit. No misstatement were noted during the audit.
Disagreements with Management
For purposes of this letter, professional standards define a disagreement with management as a matter, whether or not resolved to our satisfaction, concerning a financial accounting, reporting, or auditing matter, which could be significant to Sunrise Water Authority’s financial statements or the auditor’s report. No such disagreements arose during the course of the audit.
3
Representations Requested from Management
We have requested certain written representations from management, in a separate letter dated December 23, 2020. Management’s Consultations with Other Accountants
In some cases, management may decide to consult with other accountants about auditing and accounting matters. Management informed us that, and to our knowledge, there were no consultations with other accountants regarding auditing and accounting matters.
Other Significant Matters, Findings, or Issues
In the normal course of our professional association with Sunrise Water Authority, we generally discuss a variety of matters, including the application of accounting principles and auditing standards, operating and regulatory conditions affecting the entity, and operational plans and strategies that may affect the risks of material misstatement. None of the matters discussed resulted in a condition to our retention as Sunrise Water Authority’s auditors.
Other Matters
We applied certain limited procedures to the management’s discussion and analysis, the schedule of proportionate share of the net pension liability, the schedule contribution - pension, the schedule of proportionate share of other post-employment benefits liability – retiree health insurance account, schedule of changes in total other post-employment benefits liability and related ratios, schedule of contributions other post-employment benefit liability – retiree health insurance account, and schedule of contributions for other post-employment benefits – implicit rate study, which are required supplementary information (RSI) that supplements the basic financial statements. Our procedures consisted of inquiries of management regarding the methods of preparing the information and comparing the information for consistency with management’s responses to our inquiries, the basic financial statements, and other knowledge we obtained during our audit of the basic financial statements. We did not audit management’s discussion and analysis, the schedule of proportionate share of the net pension liability, the schedule contribution - pension, the schedule of proportionate share of other post-employment benefits liability – retiree health insurance account, schedule of changes in total other post- employment benefits liability and related ratios, schedule of contributions other post- employment benefit liability – retiree health insurance account, and schedule of contributions for other post-employment benefits – implicit rate study, and do not express an opinion or provide any assurance on this information.
We were engaged to report on the supplementary information, as listed in the table of contents, which accompany the financial statements but is not RSI. With respect to this supplementary information, we made certain inquiries of management and evaluated the form, content, and methods of preparing the information to determine that the information complies with accounting principles generally accepted in the United States of America, the method of preparing it has not changed from the prior period, and the information is appropriate and complete in relation to our audit of the financial statements. We compared and reconciled the supplementary information to the underlying accounting records used to prepare the financial statements or to the financial statements themselves.
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We were not engaged to report on the introductory section or statistical section, which accompany the financial statements but are not RSI. We did not audit or perform other procedures on this other information, and we do not express an opinion or provide any assurance on them.
This report is intended solely for the information and use of the Board of Commissioners and management of Sunrise Water Authority and is not intended to be and should not be used by anyone other than these specified parties
If you should have any questions or comments, we would be pleased to discuss this report with you at your convenience.
Respectfully,
Merina+Co Tualatin, Oregon Focused on Your Wants and Understanding Your Needs
5 Agenda Item – 2.2 SUNRISE WATER AUTHORITY
REGULAR BOARD MEETING January 27, 2021
SUBJECT Authorizing a Contract-Specific Special Procurement
BOARD ACTION Convene as Local Contract Review Board (LCRB) and Adopt Resolution REQUESTED 2021-1, Authorizing a Contract-Specific Special Procurement to Landis & Landis Construction for Site Repairs at Reservoir 11
EFFECTIVE DATE January 27, 2021
PRINCIPAL STAFF Wade Hathhorn, General Manager PERSON
DOCUMENTS Resolution 2021-1 Authorizing a Contract-Specific Special Procurement for ATTACHED Site Repairs at Reservoir 11
Summary BACKGROUND In association with the construction of the Reservoir 11, the City of Happy Valley has directed a “punch list” of repair items that must be completed in order to close the permit. The list of items include the addition of erosion control features, concrete sidewalk, curb and gutter (inlet) repairs, and asphalt crack sealing.
This work, however, is deemed outside the scope of the original construction contract for the reservoir and is expected to have a not-to- exceed a total of $50,000.
ANALYSIS Ward-Henshaw (W-H) Constructors was the general contractor and primary constructor of the reservoir itself, while Landis & Landis Construction served as the primary subcontractor for the earthwork and site restoration. The cited repair work could have been added as a Change Order to the original construction contract with W-H, but would leave open their $7.2M bond (that expires in mid-March, 2021) – this would lead to more than $20,000 of additional administrative (bond) cost to the stated repairs. Note, some of the repair work may have to be done after mid-March, under favorable weather conditions. Alternatively, staff is looking to retain Landis & Landis to complete the noted repairs – since they are familiar with the site and already mobilized to do the work. Under normal situations, this work would be issued to the lowest price, responsive bidder determined from price quotes obtained from at least three (3) separate contractors. Here, however, time is of the essence in getting the additional erosion control elements in place amid the peak rainy season and staff desires to avoid the added cost
January 27, 2021 Agenda Item 2.2 Page 1 of 2 and time involved in obtaining quotes and possibly having to rescheduling mobilization of a new contractor to the site. That said, staff is asking the Board (acting as the LCRB) to approve a one-time contract-specific Special Procurement that retains Landis & Landis to perform the repair work cited herein. Sunrise’s procurement rules, however, are “silent” on this procedure and defer instead to the State’s Public Contracting Code, also commonly referred to as the “Attorney General’s Model Rules.” The rules for this action are prescribed under ORS 279B.085 Special Procurements (in reference to contract-specific special procurements). In so doing, the Board must find the proposed action will: 1. result in cost savings to the Agency or Public; and 2. not diminish competition or encourage favoritism through this procurement These procedures are also consistent with Oregon Administrative Rule(s) 125-247-0286 and 125-247-0287.
OPTIONS Adopt or reject Resolution 2021-1, as presented.
STAFF Adopt Resolution 2021-1 authorizing a Contract-Specific Special RECOMMENDATION Procurement to Landis & Landis Construction for required repairs to the Reservoir 11 site for an amount not to exceed $50,000.
January 27, 2021 Agenda Item 2.2 Page 2 of 2
RESOLUTION 2021-1 A RESOLUTION AUTHORIZING A CONTRACT-SPECIFIC SPECIAL PROCUREMENT FOR REPAIRS AT THE RESERVOIR 11 SITE
WHEREAS, following the construction of Reservoir 11, the City of Happy Valley is requiring additional repairs to the site as part of permit requirements, including special erosion control elements, concrete curb, sidewalk and inlet repairs, and asphalt crack sealing; and
WHEREAS, portions of the work cited must be done immediately in response to the present seasonal (winter) weather conditions; and
WHEREAS, Landis & Landis Construction served as the primary subcontractor performing all earthwork and site restoration for the reservoir construction project; and
WHEREAS, Landis & Landis Construction is familiar with the site and already mobilized to perform the additional work; and
WHEREAS, the Board of Commissioners, acting as the agency’s Local Contract Review Board, is being asked to authorize a contract-specific special procurement (as allowed under ORS 279B.085) to retain Landis & Landis Construction to perform the cited repairs for an amount not to exceed $50,000.
THEREFORE, BE IT RESOLVED The Board of Commissioners of the Sunrise Water Authority, acting as the agency’s Local Contract Review Board, hereby resolves to grant authorization to retain Landis & Landis Construction for the purpose of performing repair work to the site of the recently constructed Reservoir 11, as required by the City of Happy Valley permit, for an amount not to exceed $50,000. In so doing, the Board finds the procurement to be consistent with the State of Oregon Public Contracting Code, as prescribed under ORS 279B.085, namely that the action will: 1. result in cost savings to the Agency and Public; and 2. not diminish competition or encourage favoritism otherwise. So adopted by the Board of Commissioners of the Sunrise Water Authority on this 27th day of January 2021, by the following vote:
Ayes _____ Nays _____
SUNRISE WATER AUTHORITY
Chris Hawes, Chair
Kevin Bailey, Secretary Agenda Item – 3.1 SUNRISE WATER AUTHORITY REGULAR BOARD MEETING January 27, 2020
SUBJECT Manager’s Update
BOARD ACTION For Informational & Discussion Purposes Only REQUESTED
PRINCIPAL STAFF Wade Hathhorn, General Manager
ATTACHMENTS None Summary PRELIMINARY PLAN IN Recall, recent discussion was held regarding options for allowing service to PLACE WITH PARR Parr Lumber’s planned facility near in the intersection of Highway 212 and LUMBER SE Foster Rd. in the Damascus area. Approval of service was conditioned on Parr Lumber deciding how it would meet required fire service at the property. Those options included constructing their own on-site fire system, paying for back-up power generation, or paying to install a short segment of pipeline creating a “loop” that would allow for proper service. Working with staff, Parr has decided to participate in the construction of the short segment of pipe between SE High Ridge Ct. and SE Dogwood Lane. Parr would prefer to be “money partner” and let Sunrise lead the design and construction. Preliminary estimates have Parr Lumber’s cost share around $100,000-125,000. Efforts are on-going to formalize a mutual agreement.
WATER TREATMENT As previously noted several times, staff from the South Fork Water Board OPERATOR and the NCCWC have combined interests in an effort to create a new, APPRENTICESHIP ground-breaking water treatment operator apprenticeship program. The PROGRAM NOW program will combine active training (employment) at each of the plants APPROVED with online classes from Cal State Sacramento’s AWWA approved program to allow participants to work while obtaining state approved certification. The program has been given formal approval from Oregon BOLI and will begin accepting candidate applications later this Spring. The program looks to expand the local labor pool of certified water treatment plant operators.
2021 SDAO ANNUAL A second reminder that registration for the annual SDAO conference is CONFERENCE now open. This year will be a virtual format and is free of charge. (VIRTUAL) Additional details can be found at: https://www.sdao.com/annual- conference . If you have questions or plan to attend, please contact Cindy Wolff: [email protected] .
January 27, 2020 Agenda Item 3.1 Page 1 of 1 Agenda Item – 3.2 SUNRISE WATER AUTHORITY
REGULAR BOARD MEETING January 27, 2021
SUBJECT Engineering & Construction Reports
BOARD ACTION For Informational Purposes Only REQUESTED
PRINCIPAL STAFF Tim Jannsen, Engineering Manager PERSON
DOCUMENTS Subdivisions Under Construction (listed below) ATTACHED Project Management Report Capital Improvement Projects Map (March, June, September & December only)
Summary Proposed Subdivisions - Not Yet Under Construction
Name of Subdivision and Projects Number of Lots ALTAMONT PH. 8 EAST OF JOHNSON CREEK BLVD 32 FOX HAVEN ESTATES RIDGECREST RD EAST OF 132ND AVE 19
FOXWOOD SUNNYSIDE RD EAST OF 162ND AVE 29
PACIFIC CREST 172ND AVE SOUTH OF HEMRICH RD 39
PLEASANT VALLEY VILLAGES PH. 3 162ND AVE NORTH OF 67 SUNNYSIDE RD PLEASANT VALLEY VILLAGES PH. 4 162ND AVE NORTH OF 31 SUNNYSIDE RD PLEASANT VALLEY VILLAGES PH. 5 162ND AVE NORTH OF 38 SUNNYSIDE RD QUAIL HILL 172ND AVE SOUTH OF CREEKSTONE 22 LN SCOUTERS MOUNTAIN PH. 2 EAST OF 145TH AVE & NORTH OF 118 MONNER RD
Total Lots 395
Subdivisions Under Construction - Not Yet Approved For Meter Purchases
Name of Subdivision and Projects Number of Lots AIMEE GARDENS 131ST AVE SOUTH OF SUNNYSIDE RD 7
January 27, 2021 Agenda Item 3.2 Page 1 of 4 HERITAGE CREST MT SCOTT BLVD NORTH OF KING 9 RD HUNTER'S MEADOWS ECKERT LN EAST OF HIGHWAY 8 224 PLEASANT VALLEY VILLAGES PH. 2 (WAS PH. 4) 162ND AVE NORTH OF 201 SUNNYSIDE RD
Total Lots 225
Subdivisions With Buildable Lots - Approved For Meter Purchases Number of Lots Name of Subdivision and Projects Remaining ALDER RIDGE RIDGECREST RD EAST OF 132ND AVE 4
ALTA VILLA 145TH AVE & CLATSOP ST 6
ALTAMONT NORTH OF IDLEMAN RD & EAST OF 92ND AVE 14
APPLEWOOD TERRACE RIDGECREST RD WEST OF 145TH AVE 1
AUTUMN MIST KING RD & REGINA CT 2
BELLA CASA 162ND NORTH OF MISTY DR 3
BRAEMARK ESTATES 118TH AVE & SS RD 5
CALLAHAN VISTA SE RIDGECREST RD 2
CASTLEWOOD PH. 2 & 3 130TH AVE NORTH OF SS RD 1
CAVALIER COURT 131ST AVE & ALMOND CT 4
CEDAR CREEK ESTATES SCOTT CREEK LN 3
CREEKSIDE TERRACE SUNNYSIDE RD EAST OF 162ND 13 AVE CREEKSTONE ESTATES WILLIAM OTTY RD & VALLEY VIEW TERR 1
CROSSROADS 172ND AVE NORTH OF VOGEL RD 23
DEER RIDGE EAST OF 132ND AVE & NORTH OF 5 HUBBARD RD EAGLE LANDING R-7 STEVENS RD & MONTEREY AVE 5
EMERALD VALLEY RIDGECREST RD & 147TH AVE 2
EMMERT HEIGHTS 92ND AVE & HINKLEY AVE 4
EMMERT RIDGEVIEW 122ND AVE & HUBBARD RD 1
ESMERALDA ALDRIDGE RD & 147TH AVE 6
ESTATES AT MEADOWS GATE MOUNTAIN GATE RD 1
GRAND VIEW MEADOWS 172ND AVE NORTH OF HEMRICH RD 4
HAGGART PARTITION RIDGECREST EAST OF MT SCOTT BLVD 1
HIDDEN FALLS PH. 3 EAST OF 152ND DR & SOUTH OF SUNNYSIDE 45 RD HIGHLANDER ESTATES NORTH OF RIDGECREST RD 1
January 27, 2021 Agenda Item 3.2 Page 2 of 4 HIGHLAND MIST NORTH OF RIDGECREST RD 5
JACKSON HILLS PH. 1-3 145TH AVE & RIDGCREST RD 1
JACKSON HILLS PH. 4 & 5 EAST OF 145TH AVE & SOUTH OF 40 CLATSOP ST J B MEADOWS 118TH AVE & SUMMERS LN 5
JOHNATHAN SUMMERS ESTATES 118TH AVE & SUMMERS LN 3
KASAB PARTITION 147TH AVE SOUTH OF MONNER RD 1
LIBERTY VIEW 122ND AVE & MOUNTAIN GATE RD 3
MADELYN HEIGHTS CALLAHAN RD & RIDGECREST RD 3
MADELYN MEADOWS EAST OF 129TH AVE & NORTH OF 2 SUNNYSIDE RD MADRONA ECKERT LN 2
MARTIN'S VIEW ESTATES 232ND AVE SOUTH OF HWY 212 2
MOUNTAIN GATE PH. 2 129TH AVE & MOUNTAIN GATE RD 3
MITCHELL PARK 129TH AVE SOUTH OF KING RD 2
MOLLY MARIE 139TH AVE SOUTH OF SS RD 1
NORMANDY GARDENS 132ND AVE SOUTH OF SS RD 1
NORTHERN HEIGHTS PH. 1 & 2 145TH AVE NORTH OF RIDGECREST 2 RD NORTHPOINT 132ND AVE & CALLAHAN RD 4
NORTHVIEW PH. 1 & 2 147TH AVE & ALTA VISTA DR 3
OVERLOOK 119TH AVE & SUMMERS LN 5
PARKSIDE PH. 2, 3, & 4 SOUTH OF RIDGECREST RD 8
PLEASANT VALLEY VILLAGES PH. 1 (WAS PH. 3) 162ND AVE NORTH OF 184 SUNNYSIDE RD PONTE CINO PH. 2 132ND AVE SOUTH OF SS RD 2
REANNA RIDGE 127TH AVE & MATHER RD 2
RED ROSE VALLEY PH. 1 & 2 MOUNTAIN GATE RD 1
RIM ACRES MATHER RD & CRANBERRY LP 3
SARAH KNOLL MOUNTAIN GATE RD 1
SCOUTERS MOUNTAIN PH. 1 EAST OF 145TH AVE & NORTH OF 61 MONNER RD SHADOW RIDGE 147TH AVE NORTH OF SS RD 4
SIRI HILLS SOUTH OF HWY 212 & EAST OF HWY 224 9
STELLA HEIGHTS 172ND AVE SOUTH OF HEMRICH 7 RD STILLWATER ESTATES SNOW FIRE DR & MOUNTAIN GATE RD 5
STONE BRIDGE SCOTT CREEK LN & COUGAR WY 1
STONE RIDGE SUMMIT MOUNTAIN GATE RD EAST OF SE 3 129TH AVE
January 27, 2021 Agenda Item 3.2 Page 3 of 4 SUNRISE MOUNTAIN VIEW EAST OF 152ND AVE NORTH OF SS RD 2
SUNSHINE RIDGE (SOUTHERN RIDGE PH. 1) NORTH OF SS RD WEST 8 OF 147TH AVE TARALON 157TH AVE TO 162ND AVE SOUTH OF SS RD 4
THE RESERVE PH. 1 & 2 SOUTH OF MOUNTAIN GATE RD 4
TRICKLE CREEK 132ND AVE SOUTH OF SS RD 3
VALEMONT PARTITION EAST OF 132ND AVE & NORTH OF 1 RIDGECREST RD VALLEY PARK ESTATES WILLIAM OTTY RD 1
VINEYARD RIDGE PH. 2 122ND AVE & HUBBARD RD 1
VISTA HEIGHTS 147TH AVE NORTH OF SS RD 3
WILLINGHAM HEIGHTS MATHER RD 1
WOODLAND HEIGHTS 132ND AVE NORTH OF SS RD 1
Total Lots (as of December 31, 2020) 565
Total Lots (as of November 30, 2020) 594
Total Lots (as of October 31, 2020) 640
January 27, 2021 Agenda Item 3.2 Page 4 of 4 SUNRISE PROJECT MANAGEMENT REPORT - FY 2020-21
FY 2020-21 FY 2020-21 Total Water System Improvements (SDC Funds) Budgeted Costs Costs Project Percent FY 2020-21 FY 2021-22 Name & Description Costs To Date To Date Status Phase Complete J A S O N D J F M A M J Q1 Q2 Q3 Q4 Reservoir 11 ($8.2M) $ 1,300,000 976,116.82 8,061,449.75 Active Planning 100% Design and construct 3 MG concrete wire Design 100% wrapped cylindrical tank off SE 147th Bid 100% Construction 99%
CRW 152nd Reservoir ($4.5M) $ - 4,908,489.01 Completed Planning 100% Partner to CRW Design and Construction Design 100% 6 MG Concrete Wire Wrapped Tank Bid 100% Construction 100%
Pump Station 15 Standby Generator Wall $ 50,000 - Incidental Planning 50% Install a sound barrier outside new generator Design 0% Bid 0% Construction 0%
Water System Master Plan $ 50,000 11,738.50 37,586.34 Active Planning 35% Began June 2019 Studies our delivery of water in key areas Design 0% of improvement and is mandated by the Bid 0% department of health Construction 0%
High Ridge Ct Intertie $ 250,000 - Active Planning 0% This project installs an intertie from High Design 0% Ridge Ct to SE Dogwood Ln and replaces an Bid 0% existing 4" CI waterline on Dogwood Ln. Construction 0%
ASR Well $ 200,000 - Incidental Planning 0% Siting and preliminary design for a new Design 0% T BD ASR well Bid 0% Construction 0%
Total eligible for SDC Improvement funds $ 1,850,000 987,855.32 13,007,525.10
FY 2020-21 FY 2020-21 Total Water System Renewal Budgeted Costs Costs Project Percent FY 2020-21 FY 2021-22 Name & Description Costs To Date To Date Status Phase Complete J A S O N D J F M A M J Q1 Q2 Q3 Q4 Electrical Study $ 150,000 11,531.28 37,038.76 Active Planning 100% Began April 2019 An assessment will be made of the adequacy Design NA and condition of the electrical systems at all Bid 100% our pump stations Construction NA
Pump Station Rehabilitation $ 1,000,000 - Active Planning 100% Repairs and upgrades expected for pump Design NA stations as result of Electrical Study Bid 100% Construction NA
Sunridge Pneumatic Pressure Zone Rehab $ 125,000 244.00 244.00 Active Planning 100% Replace pneumatic system and add back-up Design 75% power; equipment purchase by Sunrise Bid 25% Construction 0%
Sunridge 2 Tank Repair $ 35,000 - - Inactive Planning 0% Engineering study to examine possible Design 0% T BD repair of leaking concrete reservoir Bid 0% Construction 0%
Page Park Court ($35,000) $ - 42,613.12 Active Planning 100% Re-route 150 ft of 8" distribution main from Design 100% private property to a public utility easement Bid 100% Construction 100% FY 2020-21 FY 2020-21 Total Water System Renewal Budgeted Costs Costs Project Percent FY 2020-21 FY 2021-22 Name & Description Costs To Date To Date Status Phase Complete J A S O N D J F M A M J Q1 Q2 Q3 Q4 Well 5 Rehab Project ($100,000) $ - 19,049.66 Active Planning 100% Pull and reinstall motor, shaft, pump column Design 100% and bowls, video well, re-develop well, motor Bid 100% repairs, pump repairs Construction 100%
SE 129th 4' Main Replacement $ - 18,265.27 37,314.93 Active Planning 100% The City is repaving this street presenting Design 100% a good opertunity to replace the 4" cast iron Bid 100% with a 6' ducticle, increase fire protection & Construction 100% relocate 2 service closer to the property lines Anna Ct Service Replacement Program $ - 33,856.34 33,856.34 Active Planning 100% Replace service lines Design 100% Bid 0% Construction 80%
Total eligible for SDC Reimbursement funds $ 1,310,000 63,896.89 352,599.87
FY 2020-21 FY 2020-21 Total Abandonment & Admin Building Budgeted Costs Costs Project Percent FY 2020-21 FY 2021-22 Costs* To Date To Date Status Phase Complete J A S O N D J F M A M J Q1 Q2 Q3 Q4 Abandon services on 8" cast iron main and install Active Planning 100% new services on 12" main ($1.8M total) Design 100% Abandon portion of 8" Main on SE HWY 212 $ - - 5,270.36 Bid 100% New Services portion of 12" Main on SE HWY 212 $ - - 531,805.97 Construction 100% Install new 12" Main on SE HWY 212 $ - - -
Rock Creek Crossing Relocation ($20,000) $ - 8,622.39 12,153.26 Incidental Planning 100% The removal of a culvert will require a distributi (Expense Budget) Design 100% main realignment Bid 0% Construction 100%
Armstrong Circle Building $ 1,500,000 210,898.79 462,345.73 Active Planning 80% Design 30% Bid 0% Construction 0%
Mather Pump Roof $ 15,000 8,009.85 8,009.85 Active Planning 100% - Design 100% Bid 100% Construction 100%
Reservoir 3-5 Fence $ - 579.50 579.50 Active Planning 100% - Design 100% Bid 100% Construction 0%
Monthly Tie-Out (Dig-In Reconciling Item) Reserve Fund Capital - Vehicles & Equip - Non Project $ 150,000 118,540.87 VAR RPT $ (586.50) Pre-Reclass Dig-Ins (Input here so difference goes away) Meters/Hydrants & Miscellaneous Capital $ 150,000 12,023.26 $ (102,034.60) 114,057.86 01-06-5320-000 (Dig-In goes to same proj code 2021-31001 as new meters, but are in system construc Admin & Operations building ($3.3M) $ 1,515,000 219,488.14 $ 219,488.14 Gen Fund Capital Outlay - Non Project $ 1,665,000 231,511.40 $ 118,040.04 CAPITAL OUTLAY
Capital Outlay - Projects Improvement $ 1,850,000 987,855.32 $ 413,196.99 574,658 Make sure to get 05-capital and not the txf line with bond interest Capital Outlay - Projects Renewal $ 1,310,000 63,896.89 $ 18,051.86 45,845.03 01-06-5315-002 Add Dig-In to get GL right Outlay - Abandonment M&S $ - 8,622.39 $ 8,622.39 734,561.22 Capital Outlay - Non Project $ 1,815,000 350,052.27 Capital Contingency $ 1,500,000 - $ 775,949.98 Project Management Report FYTD Total $ 6,475,000 1,410,426.87 $ 775,949.98 Budget Variance Report (incl abandonment in Proj Mgt Rpt) Agenda Item – 3.3 SUNRISE WATER AUTHORITY
REGULAR BOARD MEETING January 27, 2021
SUBJECT Operational Reports
BOARD ACTION For Informational Purposes Only REQUESTED
PRINCIPAL STAFF Tim Jannsen, Engineering Manager PERSON
DOCUMENTS Newly Installed Equivalent Residential Units (ERUs) ATTACHED Water Pumped to Sunrise Water SWA Unaccounted for Water Twelve Month Running Average
Summary
BACKGROUND The following graphs are presented to the Board for informational purposes.
OPTIONS None.
STAFF RECOMMENDATION None.
January 27, 2021 Agenda Item 3.3 Page 1 of 1 Newly Installed Equivalent Residential Units (ERUs) 80 600 70 500 60 400 50 40 300
Monthly 30 200 20 Month Total Running
100 - 10 12 0 0
Monthly ERUs 12-Month Running Total ERUs Water Pumped to Sunrise Water 500 3000 450 400 2500 350 2000 300 250 1500 200 150 1000 100 Monthly (1000 ccf) 500 50 0 0 Month RunningTotal (1000 ccf) - 12 Monthly Pumped 12-Month Running Total Pumped SWA Unaccounted For Water Twelve Month Running Average
180 9% 160 8% 140 7% 120 6% 100 5% 80 4% 60 3% 40 2%
20 1% Uncaccounted for Water Uncaccounted for Water (MG) (MG) Water for Uncaccounted 0 0% 12/18 2/19 4/19 6/19 8/19 10/19 12/19 2/20 4/20 6/20 8/20 10/20 12/20
Unaccounted for Water in MG Unaccounted for Water (%) Agenda Item – 3.4 SUNRISE WATER AUTHORITY
REGULAR BOARD MEETING January 27, 2021
SUBJECT Financial Statements – December 2020
BOARD ACTION The financial report is provided for the Board to review REQUESTED
EFFECTIVE DATE January 27, 2021
PRINCIPAL STAFF Denise Bergstrom, Finance Director PERSON
DOCUMENTS Revenue Expense Graphs ATTACHED Cash Graphs Water Sales Graph Meters Sold by Month and Size Meter Sales Cash Balance Report Cash Position and Transfers Board Audit Report Revenue vs Expense by Fund and Acct Type compared to Budget Bank Reconciliation LGIP Reconciliation Letter from Merina & Co to the Board of Commissioners, AU-260 C Comprehensive Annual Financial Report (CAFR) for fiscal year 2020
Summary
BACKGROUND The above listed financial statements are presented to the Board each month for your review.
The Comprehensive Annual Financial Report (CAFR) is provided here along with a letter from our external auditors, Merina & Co.
January 27, 2021 Agenda Item 3.4 Page 1 of 15 Revenue and Expenditure Graphs
Monthly FY21 Revenue Annual Monthly FY21 SDC Revenue Annual $1,800,000 $12,000,000 $800,000 $2,500,000 $1,600,000 $700,000 $10,000,000 $2,000,000 $1,400,000 $600,000 $1,200,000 $8,000,000 $500,000 $1,500,000 $1,000,000 $6,000,000 $400,000 $800,000 $300,000 $1,000,000 $600,000 $4,000,000 $400,000 $200,000 $2,000,000 $500,000 $200,000 $100,000 $0 $0 $0 $0 Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr May Jun
Water Sales Other YTD Budget* SDC Install YTD Budget
Monthly FY21 Expenses Annual FY21 Total Capital Monthly Annual $800,000 $5,000,000 $5,000,000 $700,000 $4,500,000 $4,000,000 $4,000,000 $600,000 $3,500,000 $500,000 $3,000,000 $3,000,000 $400,000 $2,500,000 $300,000 $2,000,000 $2,000,000 $1,500,000 $200,000 $1,000,000 $1,000,000 $100,000 $500,000 $0 $0 $0 Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr May Jun
Personnel Admin System Water/Electric YTD Budget YTD Actual Budget*
Notes . Water revenue that peaked in August and September represents the revenue billed in August and September. That is represents water usage mostly from July and August. . We had another strong month of meter sales with an additional 29 residential meters and a 2" commercial meter sold. . Capital spending plateaued in December.
*The budget timing changes above for revenue are not reflected in the budget to actual report; the Interfund Loan July 2020 payback is not included in the above data.
January 27, 2021 Agenda Item 3.4 Page 2 of 15 Cash Graphs
FY21 General Fund Reserves FY21 SDC Reserves $18,000,000 $4,000,000 $16,000,000 $3,500,000 $14,000,000 $3,000,000 $12,000,000 $2,500,000 $10,000,000 $2,000,000 $8,000,000 $1,500,000 $1,000,000 $6,000,000 $500,000 $4,000,000 $0 $2,000,000 90 Days O&M Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr May Jun $0 Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr May Jun Reimbursement Improvement
FY21 Reserve Fund FY21 Interest $700,000 $18,000 $16,000 $600,000 $14,000 $500,000 $12,000 $10,000 $400,000 $8,000 $300,000 $6,000 $4,000 $200,000 $2,000 $100,000 $0 Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr May Jun $0 Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr May Jun General Fund SDC Fund Reserve Fund Bond Fund
Notes . General fund reserves are similiar to the last several months at $1.3 million less than in July 1, 2018. . The current Interfund Loan Balance from the General Fund to the SDC Fund is $11.6 million. . Interest on the LGIP remained at just .75%, but we moved $800,000 of SDC funds over to the LGIP to earn interest. . There will be a drop next month in the Reserve Fund when we pay for the Dump Truck approved by the board in November.
January 27, 2021 Agenda Item 3.4 Page 3 of 15 Non‐Residential
Water Sales Residential
12‐Month Running AVG Total Sales
$1,800,000 $12,000,000 $1,600,000 $10,000,000 $1,400,000 $1,200,000 $8,000,000 $1,000,000 $6,000,000 $800,000 $600,000 $4,000,000 $400,000 $2,000,000 $200,000 $0 $0 3/18 6/18 9/18 12/18 3/19 6/19 *9/19 12/19 03/20 06/20 09/20 12/20
*9/2019 change to monthly billing for residences on bi‐monthly billing brought revenue forward from 10/2019 and caused a drop in 9/2020 and a jump in 10/2020 of the 12‐Month Running AVG
January 27, 2021 Agenda Item 3.4 Page 4 of 15 Meters Sold By Month & Size Fiscal Year 2020-2021 Last Year Last Year 5/8" Upgrade Upgrade Total Total Total Total Meters Month x 3/4" 3/4" 3/4" 1" 1" 1-1/2" 2" 3" 4" Meters Gen. Fund SDC Total Dollars Meters To Date Diff. July 31 - - - 1 - - - - 32 $ 10,971 $ 305,399 $ 316,370 28 28 4 August 20 ------1 - 21 $ 10,335 $ 328,825 $ 339,160 24 52 (3) September 30 10 - 4 - - - - - 44 $ 24,762 $ 516,718 $ 541,480 51 103 (7) October 39 ------39 $ 13,799 $ 366,405 $ 380,204 43 146 (4) November 42 1 ------43 $ 14,884 $ 408,682 $ 423,566 37 183 6 December 29 - - - - - 1 - - 30 $ 12,317 $ 347,615 $ 359,932 22 205 8 January ------$ - $ - $ - 53 258 February ------$ - $ - $ - 36 294 March ------$ - $ - $ - 22 316 April ------$ - $ - $ - 55 371 May ------$ - $ - $ - 18 389 June ------$ - $ - $ - 52 441 Totals YTD: 191 11 - 4 1 - 1 1 - 209 $ 87,068 $ 2,273,644 $ 2,360,712 441 4
Last Year Last Year Total ERU's 5/8" Upgrade Upgrade Total Total ERU's +/- Mthly vs. per Month ERU's/Month x 3/4" 3/4" 3/4" 1" 1" 1-1/2" 2" 3" 4" ERU's ERU's To Date Diff. ERU Budgeted Budgeted July 31.0 - - - 1.5 - - - - 32.5 28.0 28.0 4.5 15.5 17 August 20.0 ------15.0 - 35.0 48.0 76.0 (13.0) 18.0 17 September 30.0 15.0 - 10.0 - - - - - 55.0 73.0 149.0 (18.0) 39.0 16 October 39.0 ------39.0 43.0 192.0 (4.0) 22.0 17 November 42.0 1.5 ------43.5 40.0 232.0 3.5 27.5 16 December 29.0 - - - - - 8.0 - - 37.0 22.0 254.0 15.0 20.0 17 January ------53.0 307.0 16 February ------36.0 343.0 17 March ------22.0 365.0 16 April ------55.0 420.0 17 May ------18.0 438.0 17 June ------68.0 506.0 17 Totals YTD: 191.0 16.5 - 10.0 1.5 - 8.0 15.0 242.0 506.0 (12.0) 142.0 200
Note: Irrigation-Temp and Fire Meter sales not included in the count Fire: 9 Irrigation-Temp:3 Transfers: 1
January 27, 2021 Agenda Item 3.4 Page 5 of 15 Meter Sales December 2020
Meter # Service Installation SDC SDC Credit/ Company Subdivision & Lot # Size sold Type Charge Reimb Improv Dig-in Other Total Heritage Homes Crossroads #22-25 5/8 x 3/4 4 Domestic $1,200.00 $9,136.00 $28,444.00 $164.00 $38,944.00 Heritage Homes Pleasant Valley Villages #29-32 5/8 x 3/4 4 Domestic $1,200.00 $9,136.00 $28,444.00 $164.00 $38,944.00 Heritage Homes Scouters Mtn #116 & 122 5/8 x 3/4 2 Domestic $600.00 $4,568.00 $14,222.00 $82.00 $19,472.00 Ichijo Pleasant Valley Villages #129-130 5/8 x 3/4 2 Domestic $600.00 $4,568.00 $14,222.00 $82.00 $19,472.00 Lennar NW Scouters Mtn #175 5/8 x 3/4 1 Domestic $300.00 $2,284.00 $7,111.00 $41.00 $9,736.00 Millard Holdings Miracle Heights 2 1 Commercial $1,000.00 $18,272.00 $56,888.00 $328.00 $76,488.00 Parker Dev. Jackson Hills 4 #1 5/8 x 3/4 1 Domestic $300.00 $2,284.00 $7,111.00 $41.00 $9,736.00 Presto Homes Sunshine Ridge #15 5/8 x 3/4 1 Domestic $500.00 $2,284.00 $7,111.00 $41.00 $9,936.00 Richmond American Scouters Mtn #33-34, 39, 64-66 5/8 x 3/4 6 Domestic $1,800.00 $13,704.00 $42,666.00 $246.00 $58,416.00 Stonecreek Dev Deer Ridge #8-9 5/8 x 3/4 2 Domestic $600.00 $4,568.00 $14,222.00 $82.00 $19,472.00 TA Liesy Mountain Gate 2 #29 5/8 x 3/4 1 Domestic $300.00 $2,284.00 $7,111.00 $41.00 $9,736.00 Toll Bros Scouters Mtn #188 5/8 x 3/4 1 Domestic $300.00 $2,284.00 $7,111.00 $41.00 $9,736.00 Toll Bros Scouters Mtn #188 3/4 1 Fire $300.00 $300.00 Toll Bros Scouters Mtn #192 5/8 x 3/4 1 Domestic $300.00 $2,284.00 $7,111.00 $41.00 $9,736.00 Toll Bros Scouters Mtn #202 5/8 x 3/4 1 Domestic $300.00 $2,284.00 $7,111.00 $41.00 $9,736.00 Toll Bros Scouters Mtn #58 5/8 x 3/4 1 Domestic $300.00 $2,284.00 $7,111.00 $41.00 $9,736.00 Toll Bros Scouters Mtn #58 3/4 1 Fire $300.00 $300.00 Toll Bros Scouters Mtn #59 5/8 x 3/4 1 Domestic $300.00 $2,284.00 $7,111.00 $41.00 $9,736.00 Toll Bros Scouters Mtn #59 3/4 1 Fire $300.00 $300.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00
5/8" x 3/4" 29 $10,800.00 $84,508.00 $263,107.00 $0.00 $1,517.00 $359,932.00 3/4" 0 Upgrade 3/4" 0 Net Refunds ($100.00) ($2,284.00) ($7,111.00) ($41.00) 1" 0 Add'l Dig-In/Damage $481.00 $0.00 Upgrade 1" 0 Temp -Irrigation $0.00 1-1/2" 0 $10,700.00 $82,224.00 $255,996.00 $481.00 $1,476.00 $359,932.00 2" 1 3" 0 4" 0 Meters analyzed for ERU count 30 General Fund System Development Revenue $12,657.00 Fire 3 SDC Fund System Development Revenue $338,220.00 Irrigation - Temp 0 $350,877.00 transfers 0
January 27, 2021 Agenda Item 3.4 Page 6 of 15 SUNRISE WATER AUTHORITY CASH BALANCES As of December 31, 2020
GENERAL FUND December November October CASH $ 600.00 $ 600.00 $ 600.00 WELLS FARGO CHECKING 2,176,659.35 2,147,437.81 2,189,691.05 LGIP 13,706,689.75 13,697,988.16 13,689,572.70 TOTALS $ 15,883,949.10 $ 15,846,025.97 $ 15,879,863.75
RESERVE FUND WELLS FARGO CHECKING $ 48,224.98 $ 102,822.40 $ 87,807.23 LGIP 452,427.76 452,140.54 451,862.81 TOTALS$ 500,652.74 $ 554,962.94 $ 539,670.04 CONSTRUCTION FUND (SDC's) WELLS FARGO REIMBURSEMENT $ 70,129.00 $ 195,016.00 $ 95,662.00 WELLS FARGO IMPROVEMENT 260,338.35 597,231.35 287,903.35 LGIP 112,120.33 110,302.47 108,924.92 LGIP REIMBURSEMENT 1,031,643.94 831,643.94 831,643.94 LGIP IMPROVEMENT 1,900,364.79 1,300,364.79 1,300,364.79 TOTALS $ 3,374,596.41 $ 3,034,558.55 $ 2,624,499.00
REVENUE BOND DEBT SERVICE RESERVE FUND WELLS FARGO CHECKING $ ‐ $ ‐ $ ‐ LGIP 1,752,921.22 1,751,808.39 1,750,732.15 TOTALS $ 1,752,921.22 $ 1,751,808.39 $ 1,750,732.15
TOTAL ALL ACCOUNTS$ 21,512,119.47 $ 21,187,355.85 $ 20,794,764.94 CASH RECONCILIATION $ 600.00 $ 600.00 $ 600.00 CHECKING RECONCILIATION$ 2,555,351.68 $ 3,042,507.56 $ 2,661,063.63 LGIP RECONCILIATION$ 18,956,167.79 $ 18,144,248.29 $ 18,133,101.31 DIFFERENCE $ ‐ $ ‐ $ ‐
January 27, 2021 Agenda Item 3.4 Page 7 of 15 SUNRISE WATER AUTHORITY Cash Position and Transfers for December 2020
General Checking & Petty LGIP‐5133 LGIP‐5422 LGIP‐5506 LGIP‐5134 (Rev Cash (General) (Reserve) (SDC) Bond) Total Beginning Balance 3,043,107.56 13,697,988.16 452,140.54 2,242,311.20 1,751,808.39 21,187,355.85 Cash Receipts 1,282,976.41 8,701.59 287.22 1,817.86 1,112.83 1,294,895.91 ADP ACH Withdrawals (262,475.98) (262,475.98) AP Checks & P‐Card M&S (651,362.78) (651,362.78) Checks & Electronic payments (56,293.53) (56,293.53) Transfers between accounts (800,000.00) 800,000.00 ‐ Ending Balance 2,555,951.68 13,706,689.75 452,427.76 3,044,129.06 1,752,921.22 21,512,119.47
Cash Balances December 2019 to December 2020 $25,000
$20,000
$15,000
$10,000
$5,000
$‐ Dec Jan Feb Mar Apr May June July Aug Sept Oct Nov Dec
General Fund Reserve Fund SDC Fund Revenue Bond Fund Total
January 27, 2021 Agenda Item 3.4 Page 8 of 15 Bank Board Audit
User: dbergstrom Printed: 01/19/2021 - 7:02PM Date 12/01/2020 - 12/31/2020 Systems: '(All)'
Check No. Vendor/Employee Transaction Description Date Amount Modified Descriptions are in Italics Fund: 01 GENERAL FUND Department: 00 General Fund-Non-Depart
0 HD Fowler Company Stock 12/03/2020 1,846.40 0 HD Fowler Company 1” x 60’ K copper tubing 12/10/2020 3,018.00 0 HD Fowler Company HA31-323-NL 3/4" METER SWIVEL NUT X FIP ANGLE SINGLE C 12/17/2020 11,696.40 0 Mountain States Pipe & Supply Itron 100W+ ERT Endpoint ERW-1300-402 2 Port - Encoder ERT 12/10/2020 19,800.00 52461 DAVID CARENDER & MARIA CERECER Refund Check 028460-000, 11656 SE VERNS WAY 12/03/2020 39.38 52462 LYNN GRIFFIN Refund Check 010188-000, 13333 SE TUMBLEWEED CT 12/03/2020 46.70 52463 CHRISTIN HOUSE Refund Check 234181-000, 15854 SE SWIFT CT 12/03/2020 450.00 52464 CHRIS HOWELLS Refund Check 018157-000, 9682 SE PARKWOOD WAY 12/03/2020 26.25 52465 LIAY KULGAVYY Refund Check 020358-000, 12986 SE ALMOND CT 12/03/2020 54.00 52466 INNA & ALEX MALOFEYEV Refund Check 028636-000, 14770 SE WIND SONG PL 12/03/2020 85.60 52467 KONSTANTIN PITZUL Refund Check 017072-000, 13803 SE SCOOTER LN 12/03/2020 98.40 52468 HEATHER & CHRISTIAN STERN Refund Check 234281-000, 13208 SE NORMANDY DR 12/03/2020 40.00 52473 FIS Bill Pay Refund pmt sent to SWA in error for Acct#41430-64 12/03/2020 55.00 52474 FIS Bill Pay Refund pmt sent to SWA in error for Acct#30032-84 12/03/2020 290.86 52475 FIS Bill Pay Refund pmt sent to SWA in error for Acct#040176-000 12/03/2020 32.26 52476 FIS Bill Pay Refund pmt sent to SWA in error for Acct#060076-900 12/03/2020 19.37 52477 FIS Bill Pay Refund pmt sent to SWA in error for Acct#060076-850 12/03/2020 11.83 52478 FIS Bill Pay Refund pmt sent to SWA in error for Acct#701498-776 12/03/2020 25.00 52479 FIS Bill Pay Refund pmt sent to SWA in error for Acct#15820-50 12/03/2020 139.00 52480 FIS Bill Pay Refund pmt sent to SWA in error for Acct#50217-24 12/03/2020 534.09 52481 FIS Bill Pay Refund pmt sent to SWA in error for Acct#25653-68 12/03/2020 25.00 52482 FIS Bill Pay Refund pmt sent to SWA in error for Acct#502264-343 12/03/2020 154.18 52483 FIS Bill Pay Refund pmt sent to SWA in error for Acct#41430-64 12/03/2020 540.68 52484 FIS Bill Pay Refund pmt sent to SWA in error for Acct#30032-84 12/03/2020 290.86 52485 FIS Bill Pay Refund pmt sent to SWA in error for Acct#701498-776 12/03/2020 25.00 52504 Coffman Excavation Refund rental hydrant meter# 70340373 12/10/2020 972.60 52506 Emery & Sons Construction Refund rental hydrant meter #18177205 12/10/2020 710.60 52508 G&P Obrist Excavating Inc Refund rental hydrant meter # 70268065 12/10/2020 975.00 52512 Moore Excavation, Inc Refund rental hydrant meter # 18177205 12/10/2020 975.00 52530 PM Backflow 50% scrap sales November 2020 12/17/2020 864.25 52532 American Family Life Assurance Company December 2020 coverage 12/23/2020 983.05 52542 Pleasant Valley Development Refund difference between 1" and 3/4" meter PVV2 lot364E 12/23/2020 141.00 100000854 Wells Fargo Commercial Card (ACH) SCADA Device - Ethernet Gateway @ NCCWC (50% shared) 12/07/2020 98.00
Total for Department: 00 General Fund-Non-Depart 45,063.76 Department: 01 ADMINISTRATION
0 Chaves Consulting Inc December 2020 user fee 12/17/2020 370.20 0 Special Districts Insurance December 2020 coverage 12/03/2020 5,793.57 0 Special Districts Insurance Auto policy changes Cust#01-0054333 12/23/2020 155.00 52469 Cable Huston, LLP September 2020 - general 12/03/2020 8,703.75 52471 CTX Business Solutions CN23905-01 11/30/20-12/30/20 12/03/2020 692.47 52486 FlashAlert Newswire Subscription service for push messages in emergencies 12/03/2020 180.00 52487 Government Ethics Commission FY21 ethics commission dues CRWSC 12/03/2020 548.87 52493 Pamplin Media Group May 2020 notice of budget meeting 12/03/2020 305.88 52494 Providence Health & Services DOT exam 12/03/2020 95.00 52497 Special Districts Assoc of Oregon SDAO membership dues CRWSC 12/03/2020 4,586.50 52498 UniFirst Corporation 11/19/20 services 12/03/2020 152.13 52499 Amy Victor Reimburse purchase of driving record 12/03/2020 3.00 52514 OHA-Oregon Health Authority Cross Connection annual fee id#41-00635 12/10/2020 350.00 52515 Kelli Kristin Sussman Website maint 12/8/20-6/8/21 12/10/2020 900.00 52518 BioMED Testing Services, Inc DOT testing 12/17/2020 330.00 52522 Iron Mountain Inc December 2020 storage 12/17/2020 268.83 52531 Portland Badge Company, LLC ID badge 12/17/2020 16.61 52533 Ty Breshears Reimburse CDL physical 12/23/2020 90.00 52536 CTX Business Solutions CN3908-01 12/25/20 - 1/24/21 12/23/2020 692.47 52540 League of Oregon Cities Job posting 7/20/20-8/21/20 12/23/2020 80.00 52541 Oregonian Media Group Job posting acct#1050122052 12/23/2020 100.00 52545 UniFirst Corporation 12/3/20 services 12/23/2020 293.16 100000842 AT&T Mobility Cell phone services 12/07/2020 1,394.21 100000843 American Water Works Assoc Class registration 12/07/2020 285.00 100000844 Comcast Corporation Backup landline 12/07/2020 269.98
January 27, 2021 Agenda Item 3.4 Page 9 of 15 100000845 Costco Coffee 12/07/2020 164.97 100000846 HR Answers, Inc OSHA Covid webinar with HR Answers 12/07/2020 49.00 100000849 The Oregonian Newspaper subscription 12/07/2020 38.13 100000851 Sunset Garbage Collection Garbage service 12/07/2020 482.20 100000853 Water Environment Services Monthly sewer bill 12/07/2020 61.85 100000854 Wells Fargo Commercial Card (ACH) Covid webinar with Barran Liebman 12/07/2020 1,300.00 100000855 Amazon (CC) Phone chargers and phone holder for field staff phones 12/07/2020 73.96 100000857 RingCentral, Inc VOIP phone services 12/07/2020 1,022.78 100000860 Webex.com Webex subscription 12/07/2020 29.95
Total for Department: 01 ADMINISTRATION 29,879.47 Department: 02 FINANCE & CUSTOM SERV
0 Bend Mailing Services, LLC Monthly billing - merchant fees 12/17/2020 9,263.94 0 City Wide Facility Solutions December 2020 services 12/03/2020 854.00 0 Special Districts Insurance December 2020 coverage 12/03/2020 9,458.43 52492 Merina & Company, LLP Progress billing for FYE 06/30/20 12/03/2020 10,000.00 52496 Smith-Wagar Brucker Consulting LLC Review of Closing Entries for Fiscal Year ended June 30, 2020 12/03/2020 500.00 100000843 American Water Works Assoc AWWA eLearning Program 12/07/2020 285.00 100000863 Datatel Communications IVR monthly subscription 12/07/2020 500.00 100000864 Authorize.net (CC) IVR merchant fees 12/07/2020 72.10
Total for Department: 02 FINANCE & CUSTOM SE 30,933.47 Department: 03 TECHNICAL SERVICES
0 Connie Johnson Basemap updates 12/23/2020 1,403.00 0 Special Districts Insurance December 2020 coverage 12/03/2020 9,330.16 100000848 OHA-Oregon Health Authority Cert renewal 12/07/2020 670.00 100000854 Wells Fargo Commercial Card (ACH) Operator Training for 2 CEUs 12/07/2020 441.00 100000855 Amazon (CC) Storage subscription 12/07/2020 94.20 100000858 Google (CC) Gmail subscription 12/07/2020 378.80 100000859 Adobe Creative Cloud (CC) Software subscription 12/07/2020 79.99 100000861 Backupify (CC) Backup subscription 12/07/2020 39.00
Total for Department: 03 TECHNICAL SERVICES 12,436.15 Department: 04 FIELD OPERATIONS
0 Airgas, Inc. TDC1-4000-1 CUTTER PLASMA TD CUTMASTER 40 27-40AMP S 12/17/2020 1,399.99 0 Carson Oil Company, Inc. Diesel @ $1.99/gal 12/03/2020 782.85 0 Carson Oil Company, Inc. Regular @ $2.26/gal 12/10/2020 689.93 0 Carson Oil Company, Inc. Diesel @ $1.94/gal 12/23/2020 1,614.23 0 Fastenal Shop supplies 12/03/2020 56.15 0 Fastenal 4pc Dual Material Comfort Grip Handle Standard File Set 12/17/2020 3,996.38 0 General Pacific, Inc Badger M35 3/4" X 7 1/2" lay length, Meter, Cast Iron Bottom, Cu 12/03/2020 11,374.00 0 General Pacific, Inc Badger 1 1/2" Turbo, With Integral Strainer 13" Lay Length, 2 Bo 12/10/2020 1,451.00 0 HD Fowler Company 2" x 12" SCH40 Brass nipple 12/10/2020 3,254.92 0 HD Fowler Company 5" X 7" RPM DROP IN READER LID 10K RATED MARKED "WAT 12/17/2020 11,020.33 0 HD Fowler Company 13" X 24" RPM COVER WITH 5" X 7" CAVITY FOR DROP IN LID 12/23/2020 10,137.54 0 Lakeside Industries, Inc Asphalt 12/10/2020 538.90 0 Ritz Safety LLC Disinfecting Wipes 50ct 12/10/2020 272.38 0 Ritz Safety LLC KN95 Particulate Respirator 12/17/2020 463.98 0 S-2 Contractors, Inc Paving for 18 Valves throughout Happy Valley and a 4 x 4 patch o 12/17/2020 5,534.00 0 Special Districts Insurance December 2020 coverage 12/03/2020 14,052.40 0 United Rentals Dump Truck Rental thru end of December 2020 12/10/2020 2,146.74 0 Univar USA Inc. (4) Pails 3" Tab, Calcium Hypochlorite #16142414 - Delivered 12/17/2020 831.60 52472 Ferguson Enterprises, Inc. System maint parts 12/03/2020 1,310.37 52488 Gresham Automotive Inc Vehicle maint 12/03/2020 64.21 52490 H&D Soli, Inc. Valve maint 12/03/2020 149.87 52500 Airgas, Inc. CO2 rental 12/10/2020 78.50 52502 Oregon Irrigation 2020 Testing of SWA Backflow Assemblies 12/10/2020 2,600.00 52503 Clackamas Cty-Dept of Finance November 2020 landscaping 12/10/2020 425.00 52505 Department of Environmental Quality Annual permit fee 03-0043-18-01 12/10/2020 2,488.00 52511 Les Schwab Tire Centers of Portland, Inc. Vehicle maint 12/10/2020 1,217.23 52516 United Site Services 11/19/20-12/16/20 services 12/10/2020 131.61 52517 Aurora Landscape 1 Year Landscape Maintenance Contract for the new Reservoir 11 s 12/17/2020 608.22 52519 Genuine Parts Company Eq maint 12/17/2020 155.48 52520 Gresham Automotive Inc Vehicle maint 12/17/2020 64.21 52521 H&D Soli, Inc. Tools 12/17/2020 394.55 52523 Itron, Inc IMA DRIVEBY SUBSCRIPTION 1/1/21-6/30/21 12/17/2020 529.20 52525 Knife River Corporation Rock 12/17/2020 933.32 52526 Lord & Associates, Inc Flagging relocate fire hydrant @ 11908 SE Koala Dr 12/17/2020 863.50 52537 Genuine Parts Company Vehicle maint 12/23/2020 26.32 52538 H&D Soli, Inc. Equip maint 12/23/2020 421.02 52539 Images Everything LLC PS maint 12/23/2020 90.00 52543 Taylor Made Graphics LLC Safety shirts 12/23/2020 224.75 52544 Top Industrial Supply, Inc Supplies 12/23/2020 6.27 52546 United Site Services 12/17/20-1/13/21 services 12/23/2020 131.61 100000845 Costco Shop towels 12/07/2020 41.98
January 27, 2021 Agenda Item 3.4 Page 10 of 15 100000848 OHA-Oregon Health Authority License renewal $140 12/07/2020 420.00 100000850 Department of Environmental Quality DEQ test 12/07/2020 150.00 100000854 Wells Fargo Commercial Card (ACH) Key lock box for PS 15 12/07/2020 207.18 100000855 Amazon (CC) 2 Replacement Wika A-10 Pressure Transducers PS maint 12/07/2020 414.77 100000856 Home Depot (CC) Parts for ps 10 anaylizer 12/07/2020 104.93
Total for Department: 04 FIELD OPERATIONS 83,869.42 Department: 05 SYSTEM OPERATIONS
0 Edge Analytical Inc Compliance testing - Well 6A 12/23/2020 5,400.00 52470 Clackamas River Water Oct2020 acct016310-05 12/03/2020 72,052.88 52490 H&D Soli, Inc. PS 10analyzer WQ 12/03/2020 145.29 52491 Hach Company WQ testing 12/03/2020 2,056.99 52513 North Clackamas Cty Water Comm Water usage 9/25/20-10/25/20 12/10/2020 62,809.93 52528 North Clackamas Cty Water Comm Water usage 10/25/20-11/25/20 12/17/2020 37,588.83 52534 Clackamas River Water Acct 018930-08 November 2020 12/23/2020 79,551.17 100000847 NW Natural (cc) Monthly gas bill 12/07/2020 798.28
Total for Department: 05 SYSTEM OPERATIONS 260,403.37 Department: 06 CAPITAL RENEWAL
0 Connie Johnson Res 3/5 fence project 12/23/2020 305.00 0 Elcon Associates Inc October 2020 PS electrical study 12/03/2020 7,548.73 0 Elcon Associates Inc Electrical study November 2020 12/23/2020 1,021.93 0 HD Fowler Company FORD FC202-760-IP4 6" X 1" IP SADDLE, EPOXY, SS BAND, OD: 12/10/2020 1,473.57 0 Linescape LLC Boring for 14777 Crosscreek Ct Dig In 12/17/2020 437.50 0 S-2 Contractors, Inc Paving for Anna Ct project 12/17/2020 7,859.00 52472 Ferguson Enterprises, Inc. Res11 parts return - need reclass to dept 07 12/03/2020 -193.82 52490 H&D Soli, Inc. Anna Ct bark 12/03/2020 15.98 52507 FFA Architecture and Interiors Inc Predesign thru 6/30/20 Armstrong Circle 12/10/2020 56,547.62 52510 K&D Services of Oregon Inc Flagging for Anna Ct. in Damascus rehab of 26 plastic water serv 12/10/2020 5,344.00 52524 K&D Services of Oregon Inc Flagging for Anna Ct. in Damascus rehab of 26 plastic water serv 12/17/2020 3,542.25 52529 Owen Equipment Company Vactor machine rental - Anna Ct 12/17/2020 7,015.95 100000852 United Site Services Restroom for Anna Ct 12/07/2020 270.32
Total for Department: 06 CAPITAL RENEWAL 91,188.03 Department: 07 CAPITAL IMPROVEMENT
52489 GSI Water Solutions, Inc. October 2020 services 12/03/2020 2,817.00 52495 RH2 Engineering, Inc. Res11 service thru 11/1/20 12/03/2020 13,472.71 52501 Carlson Testing, Inc Res11 compaction testing 12/10/2020 855.00
Total for Department: 07 CAPITAL IMPROVEMEN 17,144.71
Total for Fund:01 GENERAL FUND 570,918.38 Fund: 03 RESERVE FUND Department: 00 General Fund-Non-Depart
0 CDW LLC Apple 10.2-inch iPad Wi-Fi + Cellular - 7th generation - tablet 12/17/2020 537.87 0 United Rentals Purchase of : (1) Used 2015 International Model 2015 7400SBA6X4 12/03/2020 68,589.00 52509 Images Everything LLC Signs for 10yd dump truck 12/10/2020 135.00 52519 Genuine Parts Company 10yd dump truck 12/17/2020 154.48 52527 Nelson Truck Equipment Inc Safety lights for 10yd dump truck 12/17/2020 1,163.13 52535 Clackamas Steel & Mfg, Inc. Parts for F550 12/23/2020 72.66 52538 H&D Soli, Inc. Supplies 10yd dump truck 12/23/2020 21.78 52544 Top Industrial Supply, Inc Supplies for F550 12/23/2020 32.05 100000854 Wells Fargo Commercial Card (ACH) Flasher for F550 12/07/2020 209.94 100000862 Northside Ford Truck Sales Inc Floor mat for ford 550 12/07/2020 126.50 100000865 Apple.com (cc) Microsoft Office suite used for iPads 12/07/2020 6.99
Total for Department: 00 General Fund-Non-Depart 71,049.40
Total for Fund:03 RESERVE FUND 71,049.40 Fund: 05 SDC CONSTRUCTION FUND Department: 00 General Fund-Non-Depart
52542 Pleasant Valley Development Refund difference between 1" and 3/4" meter PVV2 lot364E 12/23/2020 9,395.00
Total for Department: 00 General Fund-Non-Depart 9,395.00
Total for Fund:05 SDC CONSTRUCTION FUND 9,395.00
Grand Total 651,362.78
BR-Board Audit (01/19/2021 - 7:02 PM) Page 7
January 27, 2021 Agenda Item 3.4 Page 11 of 15 January 27, 2021 Agenda Item 3.4 Page 12 of 15 January 27, 2021 Agenda Item 3.4 Page 13 of 15 SUNRISE WATER AUTHORITY BANK RECONCILIATION As of December 31, 2020
BEGINNING BALANCE CASH RECEIPTS CASH DISB. ENDING BALANCE 12/1/20 12/31/20
BALANCE PER BANK ‐ WELLS 3,052,906.53 1,278,300.71 1,715,980.63 2,615,226.61 BALANCE PER BANK ‐ WELLS PR ‐ 262,475.98 262,475.98 ‐ TOTAL 3,052,906.53 1,540,776.69 1,978,456.61 2,615,226.61
PLUS DEPOSITS IN TRANSIT PM Cash Receipts on book not bank 50,067.27 (50,067.27) ‐ Outstanding Cash Receipts on book not bank 22,612.29 22,612.29 Outstanding Cash Receipt on bank not book ‐ ‐
LESS OUTSTANDING CHECKS ‐ ‐ Prior Months ‐ Outstanding ‐ Refunds (293.04) (293.04) July Outstanding (56,547.62) 56,547.62 (0.00) October Outstanding (273.90) (140.00) (133.90) November Outstanding (1,208.55) (983.05) (225.50) December Outstanding 81,834.78 (81,834.78)
OTHER RECONCILING ITEMS ‐ Net at bank BMS ACH returns ‐ 1,882.69 1,882.69 ‐ Net at bank BMS Transfirst ACH merch fee ‐ 461.75 461.75 ‐ Net correction (2,143.13) (26,761.38) (28,904.51) ‐ LGIP transfers ‐ ‐ ‐ ‐
ADJUSTED BANK BALANCE 3,042,507.56 1,545,452.39 2,032,608.27 2,555,351.68
BALANCE PER GENERAL LEDGER General Fund (01‐00‐1025‐001) 2,147,437.81 918,909.43 889,687.89 2,176,659.35 General Fund (01‐00‐1025‐002) PR ZBA ‐ 262,475.98 262,475.98 ‐ Reserve Fund (03‐00‐1025‐001) 102,822.40 16,451.98 71,049.40 48,224.98 SDC Reimbursement (05‐00‐1025‐001) 195,016.00 84,508.00 209,395.00 70,129.00 SDC Improvement (05‐00‐1025‐002) 597,231.35 263,107.00 600,000.00 260,338.35 Revenue Bond Debt Service (07‐00‐1025‐000) ‐ ‐ ‐ ‐ BALANCE PER GENERAL LEDGER 3,042,507.56 1,545,452.39 2,032,608.27 2,555,351.68
‐ ‐ ‐ ‐
January 27, 2021 Agenda Item 3.4 Page 14 of 15 SUNRISE WATER AUTHORITY LOCAL GOVERNMENT INVESTMENT POOL RECONCILIATION As of December 31, 2020
BEGINNING ENDING BALANCE CASH RECEIPTS CASH DISB. BALANCE Interest Rate
BALANCE PER LGIP ‐ 5133 ‐ General Fund 13,697,988.16 8,701.59 ‐ 13,706,689.75 0.75% BALANCE PER LGIP ‐ 5422 ‐ Reserve Fund 452,140.54 287.22 ‐ 452,427.76 0.75% BALANCE PER LGIP ‐ 5506 ‐ SDC Fund 2,242,311.20 801,817.86 ‐ 3,044,129.06 0.75% BALANCE PER LGIP ‐ 5134 ‐ Rev Bond Fund 1,751,808.39 1,112.83 1,752,921.22 0.75% TOTAL 18,144,248.29 811,919.50 ‐ 18,956,167.79
PLUS DEPOSITS IN TRANSIT ‐ ‐ ‐
ADJUSTED BANK BALANCE 18,144,248.29 811,919.50 ‐ 18,956,167.79
BALANCE PER GENERAL LEDGER General Fund (01‐00‐1030‐000) 13,697,988.16 8,701.59 13,706,689.75 Reserve Fund (03‐00‐1030‐000) 452,140.54 287.22 452,427.76 SDC (05‐00‐1030‐000) 110,302.47 1,817.86 112,120.33 SDC Reimbursement (05‐00‐1030‐001) 831,643.94 200,000.00 1,031,643.94 SDC Improvement (05‐00‐1030‐002) 1,300,364.79 600,000.00 1,900,364.79 Revenue Bond Debt Service (07‐00‐1030‐000) 1,751,808.39 1,112.83 1,752,921.22 BALANCE PER GENERAL LEDGER 18,144,248.29 811,919.50 ‐ 18,956,167.79
‐ ‐ ‐ ‐
January 27, 2021 Agenda Item 3.4 Page 15 of 15 Agenda Item – 4.1 SUNRISE WATER AUTHORITY
REGULAR BOARD MEETING January 27, 2021
SUBJECT Board Calendar
EFFECTIVE DATE February 2020
PRINCIPAL STAFF Kim Anderson, Government Relations Manager PERSON
Summary
January 27, 2021 Agenda Item 4.1 Page 1 of 2
Agency Meeting Date & Time Liaison(s) NCCWC 4th Thursday of Jan, Mar, Bailey, Hawes June, & Sept Alternates: Coate, Barstow 5:30 p.m. CRWSC 2nd Monday quarterly (Mar, Barstow, Hawes, Barth June, Sept, Dec) Alternate: Coate 4:00 p.m. Oak Lodge Water 3rd Tuesday each month Barth Services 6:00 p.m. Alternate: Coate CRW 2nd Thursday each month Hawes 6:00 p.m. Alternate: Barth Boring Water District 2nd Tuesday of each month Barstow 6:00 p.m. Alternate: Hawes City of Happy Valley 1st & 3rd Tuesday each Bailey month Alternate: VACANT Work session: 6:00 p.m. Open session: 7:00 p.m. Regional Water 1st Wednesday of VACANT Providers Consortium February, June & October Alternate: Barth Board 6:30 p.m. Clackamas County 1st Thursday each month Kim Anderson (monitoring Coordinating 6:45-8:30 p.m. agendas) Committee (C4) North Clackamas 1st Monday each month VACANT; Kim Anderson Chamber of Commerce 11:45 AM-1:15 p.m. Sunnyside United/ 1st Monday in February, VACANT W. Mt. Scott CPO June & October 7:00 p.m. South Fork Water 4th Wednesday each (monitoring agendas) Board month 6:00 p.m.
Liaison Assignments & Meetings Schedule
January 27, 2021 Agenda Item 4.1 Page 2 of 2 Regional Water Providers Consortium
Year in Review: Fiscal Year 2019 – 2020 Highlights
REGIONAL WATER PROVIDERS CONSORTIUM Who We Are
Beaverton, City of Clackamas River Water Cornelius, City of Forest Grove, City of Gladstone, City of Gresham, City of Hillsboro, City of Lake Oswego, City of Milwaukie, City of Newberg, City of Oak Lodge Water District Portland, City of Raleigh Water District Rockwood Water PUD Sandy, City of Sherwood, City of South Fork Water Board Sunrise Water Authority Tigard, City of Troutdale, City of Tualatin, City of Tualatin Valley Water District West Slope Water District Wilsonville, City of
REGIONAL WATER PROVIDERS CONSORTIUM About the Consortium
Mission: To provide leadership in the planning, management, stewardship, and resiliency of drinking water in the Portland metropolitan region.
Strategic Focus Areas: • Meeting Water Needs • Emergency Preparedness and Resiliency • Strengthening Regional Partnerships
REGIONAL WATER PROVIDERS CONSORTIUM About the Consortium, Continued
Benefits: • Speak with a unified voice on water issues • Learn from each other through an established network of peers • Represent collective interests of members and their customers • Save money and reduce risk by pooling resources and working together around common goals
Funding: • Membership dues
REGIONAL WATER PROVIDERS CONSORTIUM Focus Area: Meeting Water Needs
Make best use of water resources by implementing:
• Multimedia campaigns focused on conservation, source water protection, and value of water
• School assemblies and co‐sponsorship of the Children’s Clean Water Festival
• Workshops and events
• Meet state requirements for Water Management and Conservation Plans
REGIONAL WATER PROVIDERS CONSORTIUM Focus Area: Meeting Water Needs, Continued
Provide programs and resources to help members:
• Increase accessibility of messaging and resources to diverse audiences • Print and digital resources focused on meeting diverse needs of public • Prepare population estimates and forecasts for supply planning • Learn about climate change and impacts to water systems
REGIONAL WATER PROVIDERS CONSORTIUM Focus Area: Emergency Preparedness and Resiliency
• Coordinate training, exercises, and drills
• Create and support mutual aid and data sharing agreements
• Develop resources, studies, and tools to support water provider preparedness • For example, helped members meet regulatory requirements for risk and resiliency and emergency response planning under America’s Water Infrastructure Act through training and resource sharing
REGIONAL WATER PROVIDERS CONSORTIUM Focus Area: Emergency Preparedness and Resiliency, Continued
• Apply for grants to support our work, buy equipment and conduct studies
• Promote public preparedness with multimedia campaigns and other programming
REGIONAL WATER PROVIDERS CONSORTIUM Helping Others
• All members of the Consortium are members of ORWARN: the Oregon Water/Wastewater Agency Response Network
• Members deployed water distribution equipment to Salem during their water quality event in 2018
REGIONAL WATER PROVIDERS CONSORTIUM Focus Area: Strengthening Regional Partnerships
• Expand awareness of Consortium and its value • Build strong community relationships • Be trusted source for drinking water related information • Facilitate network of peers • Legislative advocacy
REGIONAL WATER PROVIDERS CONSORTIUM Year in Review
Spanish Language Your Water is Safe to 2019 Equipment Drill Outreach Drink Messaging
Updated Website www.Regionalh2o.org/es Working Virtually Emergency Water Equipment Drill September 26, 2019
104 Participants from 25 Agencies Drill Objectives: • Exercise regional water treatment and distribution equipment • Identify gaps, issues, and opportunities to learn from each other • Mentor and train new staff • Practice interoperable communication by using radios to communicate with each other • Use the Incident Command System (ICS) to plan and implement exercise objectives
REGIONAL WATER PROVIDERS CONSORTIUM Makeover of Regionalh2o.org
• Better site navigation
• ADA compliant
• More information in Spanish
• Built in scalability for multiple screen sizes
• More user‐friendly
• Updated member page
REGIONAL WATER PROVIDERS CONSORTIUM Increased Spanish Language Outreach
Conservation and Emergency Preparedness Messaging in Español
• Television ads and interviews • Three e‐newsletters
• Radio ads • Social media ads and web content • Reviewed by staff and community partners for cultural competency
REGIONAL WATER PROVIDERS CONSORTIUM COVID‐19 Response
• “Your Water is Safe to Drink” messaging campaign delivered via web, social media ads, and radio ads in multiple safe harbor languages
• Moved all meetings to virtual format
• Served as forum for regional information and resource sharing
REGIONAL WATER PROVIDERS CONSORTIUM Consortium Staff
(from left to right)
Patty Burk ‐ Management Analyst Bonny Cushman ‐ Outreach Coordinator Rebecca Geisen ‐ Managing Director Riley Berger ‐ Program Specialist
REGIONAL WATER PROVIDERS CONSORTIUM 1120 SW 5th Avenue #405 | Portland, OR 97204
503‐823‐7528 [email protected]
Annual Report For Fiscal Year 2019-20
September 2020 September 2020
Annual Report
For Fiscal Year 2019-20
Background
The Clackamas River Water Providers (CRWP) is a coalition of water providers that get their drinking water from the Clackamas River. The organization is made up of representatives from the City of Estacada, City of Lake Oswego, City of Tigard, Clackamas River Water, the North Clackamas County Water Commission (Oak Lodge Water Services, City of Gladstone), South Fork Water Board (City of Oregon City, City of West Linn), and Sunrise Water Authority (City of Happy Valley, Damascus area). It includes two staff people, a Water Resource Manager and a Public Outreach & Education Coordinator. Combined we serve water to over 300,000 people in Clackamas and Washington Counties.
The CRWP was created by an Intergovernmental Agreement in the Fall of 2007 to coordinate efforts regarding source water protection and public outreach and education around watershed issues, drinking water, and water conservation. Our goal is to preserve the Clackamas River as a high quality drinking water source and minimize future drinking water treatment costs, while being good stewards of the river.
Through these efforts we have been working together for more than ten years to jointly fund projects and studies that would be too expensive to do individually, to foster closer relationships with each other as intra-basin water suppliers, and to speak in one voice when working with other stakeholders in the basin such as PGE. This has allowed us to realize the economies of scale and save money by sharing in the costs of staff people to manage and coordinate programs that benefit all our agencies.
The following is a look at the year in review.
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COVID 19 In March of 2020 COVID 19 changed how we do things and how we are interacting with our members, citizens, and watershed partners. Through this process we are doing most our work online and looking at ways to expand the programs that we implement into the virtual word. Due to the COVID-19 pandemic and the Stay Home, Stay Safe initiative and the following social distancing requirements many of the presentations and events that the CRWP typically participates in were canceled.
CRWP Website The Clackamas River Water Providers website continues to be updated on a regular basis. The site includes information about CRWP members, our source water protection programs, and public outreach and water conservation programs, and is used as a tool for the Conservation Rebate and Landscape Audit Program. The Resources and Documents page contains CRWP outreach material, plans, and reports that can be downloaded. Go to www.clackamasproviders.org to visit the site.
CRWP Website Homepage
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Source Water Protection Programs In 2010 the CRWP completed the development of a Drinking Water Protection Plan for the Clackamas River watershed. This Plan acts as a road map of potential strategies and programs to implement over the next decade and beyond to preserve the Clackamas River as a high-quality drinking water source and to minimize future drinking water treatment costs. The CRWP continues to work on implementing elements of the Plan. The descriptions below describe the CRWP efforts for the 2019-20 fiscal year.
Basin Analysis: Studies, GIS, Modeling and Water Quality Monitoring Monitoring Contract with USGS In August of 2016 the CRWP signed a Joint Funding Agreement with USGS to continue the data-collection program and provide the funding mechanism for the USGS to: (1) operate three continuous water-quality monitors in the Clackamas River (at Oregon City, Estacada, and Carter Bridge), and (2) operate a streamflow gage in the Clackamas River at Oregon City for a five-year period from October 2016 through September 2021.
These stations are strategically placed in the basin to provide a holistic view of water quality as water flows through the watershed. Although each station provides important information on their own, when used in combination the WQ monitors can pinpoint where turbidity sources originate (upper basin, middle basin, lower basin), help pinpoint changes in water quality based on land use in different parts of the basin, and can help identify where to start looking if a spill occurs.
These monitoring stations continuously log pH, specific conductivity, dissolved oxygen, temperature, and turbidity. The Estacada and Oregon City gauges also records chlorophyll and streamflow. In addition to the monitoring contract, the CRWP paid for replacement probes, solutions and cables, as well as the utility fees for the real time data signals associated with the USGS monitoring sites. The water quality data can be accessed via the web at https://or.water.usgs.gov/clackamas/monitors/
Macroinvertebrate Sampling In 2012-13 the CRWP entered into a contract with Cole Ecological, Inc. to develop a long-term macroinvertebrate monitoring plan for the lower Clackamas River and its tributaries. This plan called for sampling from the lower mainstem Clackamas River and its major tributaries on a regular basis in order to produce a robust dataset necessary to identify changes in biological conditions when they occur. In September of 2019 the CRWP conducted another round
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September 2020 of macroinvertebrate sampling at five sites designated in the 2013 plan in the lower Clackamas River between river miles 0.5 and 20. These sites were selected to bracket the four drinking water points of diversion between river miles 0.8 and 3.1, and the Deep Creek sub watershed. A copy of this final report can be found by going to https://www.clackamasproviders.org/wp-content/uploads/2020/04/19- 128_CRWP_Macros_Final_Rpt_4-6-20.pdf
USGS Blue Green Algae Study In July of 2017 the CRWP and the U.S. Geological Survey (USGS) entered into a three-year joint-funding-agreement to assess the effects of harmful algal blooms on drinking water resources in the Clackamas River Basin. The study has 4 objectives:
1. Determine if benthic cyanobacterial populations are producing cyanotoxins. 2. Determine the presence/absence of cyanotoxins in key locations including at selected drinking water intakes using time-integrating Solid-Phase Algal Toxin Trackers (SPATTs). 3. Evaluate the occurrence of cyanotoxins in drifting algae at key locations, including at selected drinking water intakes. 4. Preparation of a peer reviewed interpretive report.
Sampling activities took place during the summers of 2017 and 2018. During 2019 and 2020 USGS will be writing up their findings in an interpretive report that will be shared with the CRWP in the fall of 2020.
Flow Calculator The CRWP worked with the consulting firm Geosyntec to develop a web-based tool that automatically calculates and displays water provider withdrawals and river flows. The purpose of this tool was to provide CRWP members with a flexible platform that displays allowable withdrawals with real time river flows, which is adaptable as calculations, and data input changes while reducing user error. This web-based approach is customizable and will allow for additional features such as text message or email alerts in the future. During 2019-20 the calculator was updated to include Lake Oswego withdrawals into the tool since their withdrawals occur below the Oregon City gauge.
Groundwater Study The CRWP contracted with Geosyntec Consultants to conduct a Groundwater Baseflow Study. The goal of this study was to see if we could identify relationship(s) between
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snowpack, groundwater, and/or streamflow in the Clackamas River. As snowpack changes in the future due to climate change we strive to understand how resilient our watershed is to these changes to help inform drinking water management. The study found that: 1) More than 50% of the variability of the late-summer flow at the Estacada stream gauge is accounted for by the winter snow water equivalent for that same water year. 2) That this relationship does not provide the desired level of predictive power that would be useful for managing downstream flow requirements. 3) Data limitations (lack of groundwater information) and confounding factors in the watershed present obstacles to further statistical analysis.
Education and Research Assistance Portland State University – Summer Watering Campaign Assessment During 2019-20 the CRWP worked with Portland State University graduate students to conduct a focus group and survey of CRWP member citizens around the CRWP’s Fish on the Run. Irrigation Done! campaign. The purpose of this work was to determine how the CRWP should adjust the campaign based on the finding of this work to help create large- scale behavior change. The Assessment recommendations included: 1) continuing to increase awareness and connection to the watershed, 2) increase personal efficacy by removing barriers to conserving water, and 3) ensure that the campaign address different audiences with different values.
Point Source Evaluation and Mitigation Tracking, evaluating, and monitoring point sources (water quality and other permits) The CRWP continues to review water quality permits that come up for renewal to see if there could be an impact on drinking water quality, and if there is an opportunity to provide public comment on these permits. The CRWP comments generally look at ways to enhance permit requirements and ways to better notify CRWP members of spills, overflows, or contamination events. In addition, this is another tool to help educate and remind permitees that the Clackamas River is an important drinking water source.
Portland General Electric (PGE) Blue Green Algae Team/Mitigation Fund Committee The CRWP continues to be an active participant in PGE’s Blue Green Algae Team which oversees PGE’s Blue Green Algae Monitoring Program, and the PGE Mitigation Fund Committee. This year the Blue-Green Algae Team reviewed the 2019 Annual Blue-Green Algae Report, which included results from the yearly monitoring program. Monitoring was
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September 2020 conducted from early May through the end of September 2019. No blooms were observed at either Timothy Lake or North Fork Reservoir during the 2019 monitoring season, and no suggested changes were made for the 2020 monitoring.
In 2019, PGE’s Mitigation Fund Committee receive an update on the projects from the 2015 funding cycle and approved full or partial funding for 6 projects for the $1,841,000 available funds in the 2019 funding cycle. These included the following: • Eagle Creek Large Wood Enhancement – Clackamas River Basin Council (CRBC) Kingfisher Side Channel – CRBC • Shade Our Streams – CRBC • Clackamas River Invasive Species Program – Clackamas Soil & Water Conservation District • Suter Creek Fish Passage – David Bugni • Upper North Fork Reservoir Large Wood Fish Habitat – Oregon Wildlife Foundation
Nonpoint Source Evaluation and Mitigation Eco Biz Certification Support The CRWP continues to look at ways to support the EcoBiz certification program. This certification program recognizes businesses that go beyond compliance with local environmental requirements and implement pollution prevention efforts in their work sites. Businesses are certified through an intensive application and evaluation process http://ecobiz.org/. The CRWP continues to provide funding to purchase EcoBiz Chinook Book Ads. See Appendix A.
Septic System Workshops One septic system workshop was conducted in FY 2019-20 for 13 people at the Boring/Damascus Grange. The CRWP partners with DEQ, Clackamas County and the Clackamas Soil and Water Conservation District to put on these kinds of workshops. The purpose of the workshop is to provide information on how septic systems work, and why they need to be maintained, along with information on the financial assistance the CRWP provides for septic system owners in the Clackamas River watershed. See Appendix B.
Septic System Financial Assistance Program The CRWP continued to offer septic system owners that live within the Clackamas River watershed financial assistance for septic system inspections and repairs. To be eligible for the program septic system owners had to live in the watershed upstream from CRWP drinking water intakes and use a DEQ Oregon Septic Smart certified business/contractor. A total of six cost share reimbursements for septic system repairs were processed for a
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total of over $5,200 in financial assistance.
Down the River Clean Up Sponsorship For the eleventh year in a row the CRWP has provided funding to We Love Clean Rivers, Inc. to support the Annual Clackamas Down the River Clean Up which took place in September of 2019. The 17th Annual Down the River Clean Up included 170 volunteers who cleaned up 1.25 TONS of trash and recyclable materials from the Clackamas River. Since this event began 17 years ago, we've been able to remove over 29 tons of trash from the Clackamas River with the help of almost 3,800 volunteers. As an event sponsor the CRWP’s logo is placed on event marketing and outreach material. See Appendix C.
Hazardous Material Spill Response Program The CRWP contintues to work the Pollution Prevention Resource Center (PPRC), a nonprofit organization that is one of the Northwest’s leading sources of high quality unbiased pollution prevention information, to implement both our technical and financial assistance for spill prevention efforts to businesses located within the Clackamas Industrial area. Due to COVID 19 the Facility Site Checklist which is typically done onsite was put online to so that facilities could fill it out and submit it remotely. Click on the following link to see which business we worked with https://www.clackamasproviders.org/wp- content/uploads/2020/09/CRWP-PPRC-19_20-Final-Report.pdf
Pesticide Reduction Efforts with the Clackamas Soil & Water Conservation District The CRWP continues to support the Conservation District Windsock and Pesticide Sprayer programs. In October of 2019 the CRWP worked with the CSWCD and the Oregon Department of Agriculture (ODA) to coordinate a Free Pesticide Collection Event for agricultural users. This event collected 12,790 lbs pesticides for disposal. In addition, in the spring of 2020 the CRWP and CSWD created a Stop the Drift webpage to provide a place where growers could find more information on how to reduce pesticide drift. See Appendix D.
Pesticide Reduction Efforts with the Clackamas River Basin Council For the 12th year in a row the CRWP has worked with Clackamas River Basin Council to support an outreach program for voluntary pesticide reduction through two mechanisms. One, is through the implementation of a Pesticide Pledge Program. This program is designed to educate property owners about the wise use of pesticides and to empower
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September 2020 them to use alternatives to pesticides. Pledge participants then have the opportunity to display a basin-specific yard sign that acts as a reminder of the steps they are taking to promote and enhance watershed health. 15 households participated in the program during the 2019-20 fiscal year. Second, is the distribution of 9 educational pesticide reduction fact sheets. These fact sheets were distributed by CRBC at landowner site visits, at community tabling events, as well as at Shade Our Streams graduated landowner site visits. The last four of these fact sheets were updated this year. See Appendix E or visit the http://www.clackamasproviders.org/pesticide-reduction-efforts/ to see CRBC report for FY 19-20 or to download the fact sheets.
CRBC Financial Support The CRWP continues to provide funding for operational support for the Clackamas River Basin Council. The Clackamas River Basin Council is working to protect and improve water quality, and fish and wildlife habitat in the Clackamas River basin.
Clackamas Partnership The Clackamas Partnership formally came together in 2015 through an Oregon Watershed Enhancement Board (OWEB) Focus Investment Partnership Capacity and Strategic Planning grant with the goal of increasing the pace, scale, and complexity of restoration project implementation in the Clackamas watershed. In January of 2019 the Partnership was informed that they were awarded a 6-year Implementation Grant totaling $8,744,080
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to support fish habitat restoration in the Clackamas River Basin benefitting Chinook salmon, coho salmon, steelhead, and other native fish species.
The CRWP is recognized as a Supporting Partner who provides technical support, participates in project prioritization and planning through the technical advisory committee (TAC), supports implementation through funding, technical assistance and other means, and participates in the Partnership’s governance and decision‐making. The CRWP is also part of OWEB’s Technical Review Team reviewing all of the individual grant projects for the Clackamas Focused Investment Partnership. In 2019-20 the Technical Review Team reviewed two rounds of project applications.
Disaster Preparedness and Response The Clackamas Spill Committee The CRWP convenes an Annual Clackamas Spill Committee meeting with stakeholders (staff from DEQ, Clackamas County, ODOT, as well as local hazmat and first responders) to talk about hazardous material spills and spill response. Due to COVID 19 the Committee did not convene in 2019-20. The CRWP continues to work with spill response partners to find more effective ways of communicating and responding to hazardous material spills and plans on convening a meeting during the fall of 2020.
Clackamas Basin Emergency Communications Rather than conducting a Table Top Exercise this year the CRWP members chose to hold a communication workshop instead that would focus on inter basin communication around water related events involving one or all CRWP member organizations. Due to COVID 19 a larger scale workshop that would have included CRWP board members and member agency staff was change to a smaller online format. Due to a number of factors this workshop will not take place until October 2020.
In addition, in the spring of 2020 the CRWP entered into a three-year agreement with Regroup Mass Notification. This notification system allows Clackamas water providers to quickly and efficiently communicate if there are water related incidents or events by allowing us to send and receive messages via email, text/SMS, push notifications, desktop alerts, and voice calls. This system also allows us to address a long-term complaint from our first responder stakeholders (CFD#1 and CCOM) that the water providers do not have “one number” for notification in the case of an incident. This platform resolves this issue once our stakeholders were trained on how to use the platform to communicate with the water providers.
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Public Outreach and Information Sharing See the Public Outreach & Education Program section for additional information.
Annual Watershed Tour The Annual CWRP Watershed Tour was held on Saturday, October 5th, 2019. This year’s tour focused on the upper Clackamas watershed and included talks by the USFS, PGE and ODFW. The tour included a stop at the Fish Creek Campground and Cater Falls to talk with the Forest Service about Wild and Scenic River designations, the impacts of dispersed camping on the forest, and development of a new recreation site at Carter Falls. We also stopped in Milo McIver State Park to learn about a PGE side channel restoration project and how they are adding gravel back into the river system, and ODFW gave us a tour of the Clackamas Fish Hatchery and talked about some of upgrades they have been making to the hatchery.
2019 Watershed Tour
Source Water Protection Presentations CRWP staff gave a number of presentations this year regarding how the Clackamas River Water Providers operate and function, and the source water protection and public outreach and education programs that we implement. See Appendix F.
Other Water Resource Activities
Stored Water Agreement with PGE The CRWP continues to implement the Stored Water Agreement with PGE, providing us with the ability to call for water to be release from Timothy Lake at certain times of year for municipal water use.
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Water Resource Related Committees The Water Resource Manager continues to represent the interests of the CRWP on a number of different water resource related committees. These include: the Oregon Water Utilities Council, Clackamas County Local Emergency Planning Committee, the Clackamas Stewardship Partners, the Clackamas Partnership, Clackamas Technical Basin Workgroup, EcoBiz Pollution Prevention Outreach Team, the Drinking Water Source Protection Group, the PNWS-AWWA Water Resource Committee, and the American Water Works Association Source Water Protection Committee.
Public Outreach & Education Program This program provides public outreach and education, as well as conservation services and programs to CRWP members. Some of the activities described below are not provided for the City of Lake Oswego or the City of Tigard. The primary focus of the program is on education and outreach efforts to the public regarding source water protection and watershed issues, drinking water treatment and distribution, indoor and outdoor water use, and water conservation. This allows us to provide a holistic view of how our water resources are connected and why it is important to protect and conserve the water we get from the Clackamas River. There are a number of individual programs or components that provide awareness, information, motivation and action for our customers. The following is a summary of what the public outreach and education program accomplished this past year.
Youth Education, Presentations, and Assembly Programs The CRWP youth education program is an integral part of our outreach and education efforts. The goal of this program is to educate students about the Clackamas River watershed, the process for treating and distributing public drinking water, and water conservation issues so they develop overall awareness and water changing behaviors. The secondary goal is for students to take this information back to their parents.
The CRWP programs are offered at no cost to the schools and range from classroom presentations done by staff, assembly programs performed by contractors, as well as education resources for teachers. A total of 46 classroom presentations, assembly programs, and treatment plant tours were provided to approximately 3,368 students between July 1, 2019 and March of 2020 (these numbers do not include the Children’s Clean Water Festival and the CCWET Celebrating Water Event). Due to COVID 19 and the remainder of the school being canceled, 5 scheduled stage shows were canceled.
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See Appendix G for a list of CRWP schools. See Appendix H for a breakout by CRWP member of where these programs were completed.
Treatment Plant Tours The Public Outreach & Education Program coordinates water treatment plant tours for the general public and CRWP member area schools. This year six tours of the South Fork Water Board drinking water treatment plant were given to 4th and 5th grade students from Bolton Primary located in the city of West Linn.
Mini Water Education Grants for Teachers The youth education program offers Mini Water Education Grants to teachers. These grants of up to $250 are intended to provide supplemental funding for water related projects or field trips to encourage water education in the schools. We processed 9 grants for 33 teachers this past year. See Appendix I for more detailed information.
Water Conservation Calendar The Annual Water Calendar is a collaborative project with CRWP grade schools where local students participate in a coloring contest with a water education theme. The theme for the 2021 Calendar was “Healthy River, Happy Fish, Happy People”. Because of the OCVID- 19 pandemic and students being taught from home submitting pictures for the calendar posed some challenges. This year 19 classes from 10 different schools participated in the contest with approximately 200 entries.
Thirteen pictures were chosen from all the entries submitted and were posted on the CRWP website for one week (May 25th – June 1st,) so students, their teachers, families and friends, and the general public could vote for which one of the 13 pictures would be on the cover of the 2021 calendar. Each school that had at least one class participate in the contest will receive a box (125) of calendars to give out to family and friends or to use as fundraisers. Additional calendars are available to teachers, families, and the general public upon request. See Appendix J for a list of schools that participated in the project this year.
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15th Annual Clackamas County Water Education Team (CCWET) Celebrating Water Festival CRWP staff continues to Chair the CCWET. Made up of organizations working together on environmental, water and watershed related issues in Clackamas County. These community groups and local agencies promote programs and resources that included watersheds, water quality, water conservation, micro-watersheds, drinking water, salmon, enhancement, restoration and stewardship to help take care of our drinking water and our natural heritage of fish and wildlife in Clackamas County that depend on a healthy watershed.
While supporting each other’s public education goals and efforts throughout the year the CCWET organizes an annual Celebrating Water event held at Clackamas Community College which host a day of water and environmental learning to approximately 500 4th and 5th grade students, their teachers, and chaperones from the Clackamas County area. The event includes an exhibit hall with more than 25 hands on exhibits, as well as 2 stage shows highlighting storyteller Will Hornyak, and Recycleman and The Dumpster Divers providing water and environmental education to the event attendees.
Because of the COVID-19 pandemic and the Stay Home, Stay Safe initiative, for the first time in event history the 2020 Celebrating Water Festival was canceled in order to ensure the health and safety of all who are involved in organizing and presenting the festival, the students, their teachers, and chaperones who would have attended the event.
27th Annual Clean Water Festival CRWP staff is an active member of the Children's Clean Water Festival organization committee. The Children’s Clean Water Festival is a free, day-long environmental education event engaging over 1,400 fourth-grade students from throughout the Portland, Oregon metro area. Each year, students come to a college campus for a day of learning and fun that includes more than 40 hands-on, water-focused activities, classroom presentations, and stage shows that reinforce STEM, Common Core, and Next Generation Science concepts. Because of the COVID-19 pandemic and the Stay Home, Stay Safe initiative, for the first time in festival history the 2020 Children’s Clean Water Festival was also canceled in order to ensure the health and safety of all who are involved in organizing and presenting the festival, the students, their teachers, and chaperones who would have attended the one-day event.
Support of Clackamas County Sustainability Outreach to Businesses The CRWP continues to partner with Clackamas County to support the Sustainability and Solid Waste Business Outreach Team by providing the County with bathroom/kitchen faucet aerators, industrial pre-rinse spray nozzles, and a number of water conservation
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September 2020 brochures to help business owners within the CRWP service areas learn how to be more efficient with their water and earn their “Leaders in Sustainability” certification. This year the Sustainability & Solid Waste business outreach team provided assistance to over 1000 businesses throughout the county, 16 businesses became certified or recertified representing over 1,700 staff as a Leader in Sustainability getting recognized for their efforts in waste and toxics reduction, green purchasing, corporate social responsibility, energy and water conservation. Overall, the County’s Sustainability and Solid Waste Business Outreach Team provided businesses in our service areas with 40 - 1.5 GPM kitchen faucet aerators, 25 - 1gpm bathroom faucet aerators, and 10 pre-rinse kitchen spray nozzles.
Clackamas Community College Horticultural Department Water Efficient Demonstration Garden Restoration and Maintenance and IA courses This past year the CRWP continues to work with Clackamas Community College Horticultural Department in supporting the update of the Water Efficient Demonstration Garden located at CCC which was originally installed in 2003. The CRWP financial support this past year paid for new plants and contracted demolition needed for the new gardens to be put in place. All other man power needed for the garden update is being provided by the students. The garden rehabilitation will progress in sections as to be relevant to student learning and time of year.
The CRWP has also collaborated with the Horticultural Department and the City of Lake Oswego to bring 3 of the Irrigation Association's certification classes to the college. The first class, a one-day Irrigation System Install and Maintenance class was held April 13th. Twenty - four landscape professionals attended the 8-hour class. The 2-day Irrigation and Design class held in the fall of 2019 had 14 participants. The second Irrigation System Install and Maintenance class scheduled for the spring of 2020 was canceled due to COVID 19.
Water Efficient Mobile Garden In 2014, the CRWP entered into a MOU with a number of other water resource organizations in Clackamas County for the maintenance and care of the mobile water efficient demonstration garden. The group continues to take the garden to various events throughout the spring and summer to educate the public about native and water efficient gardening. This year the mobile garden visited the Stafford Family Festival in September of 2019. Because of the COVID-19 pandemic and the Stay Home, Stay Safe initiative, the garden did not visit the following annual public events: the Clackamas Lavender Festival, the Clackamas Master Gardner's Spring Plant Sale, the Clackamas County Fair, and various farmers markets within our collective areas.
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Community Events CRWP staff participated in a total of 7 community events within the CRWP service areas providing conservation, source water protection, drinking water information, and promotional items at these events. This gave staff the opportunity to engage in one on one conversation about water conservation and watershed issues with our customers. Because of the COVID-19 pandemic and the Stay Home, Stay Safe initiative the following public events were canceled: The Estacada Earth Day Event, The Home and Garden Event, and the City of Gladstone Public Works Event. See Appendix K for the list of events.
Adult Presentations CRWP staff offer free presentations to adult audiences. These presentations give staff the opportunity to talk to members of our community as well as peers regarding the Clackamas River Water Providers group and how we operate, where our water comes from, how we treat the river water for public use and why watershed protection and water conservation are so important. The goal of this program is to continue outreach to neighborhood associations, CPO’s, local garden groups, or other civic groups interested in learning about our drinking water. This year staff gave 6 adult presentations/interviews. See Appendix L for a detailed list.
Newsletters & Websites CRWP staff continues to send CRWP public education and outreach member agencies articles and information throughout the year for their newsletters and websites. Topics ranged from general water conservation, indoor conservation, to outdoor conservation tips, watershed and water resource issues, emergency preparedness as well as resources that are available through the CRWP such as the rebate and landscape water audit programs. In addition, the CRWP has a quarterly E-newsletter that it distributes to CRWP customers, members and interested parties, as well as being posted on the CRWP website. See Appendix M for an example of our quarterly E newsletter.
Conservation Outreach Materials The CRWP continues to develop outreach materials and use a number of promotional items with the CRWP logo and contact information on them such as shower timers, pencils, paper bags, indoor water audit kits and brochures. These were passed out to citizens at events, member offices and city halls, through the school programs, and mailed to customers upon request. This year the Teacher Flyer, CRWP Activity Book, and Rebate brochures were reprinted. Due to COVID all items materials are available upon request and/or are posted on the CRWP website where they can be downloaded. A more detailed description of new outreach pieces created this year are below.
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Clackamas River Watershed Display Model In late 2018 the CRWP was awarded a $15,000 SRF Drinking Water Source Protection grant to create a 3-D topographical display map of the Clackamas River Watershed and the areas which receive the Clackamas River water as a drinking water source. The purpose of the grant was to create a portable, interactive, and place-based model that the CRWP can use for public outreach and education efforts around where our drinking water comes from, and the importance of protecting our drinking water source. In addition to using the grant funding to design and produce a watershed display model for public outreach, in late 2019 the following CRWP member offices and treatment plants received a framed and mounted copy of the model for display: City of Estacada, City of Gladstone, City of Oregon City, City of Tigard, City of West Linn, Clackamas River Water, Lake Oswego Tigard Partnership, North Clackamas County Water Commission, Oak Lodge Water Services, South Fork Water Board, and Sunrise Water Authority.
Picture of Clackamas River Watershed Display 3-D Model
Fish on the Run, Irrigation Done. Summer Watering Campaign This was the second year of the CRWP summer Fish on the Run. Irrigation Done! watering campaign created to encourage CRWP member customers to reduce outdoor water use starting in mid-August and to discontinue outdoor water use by mid-September so that we can leave more water in the river for the fall Chinook and Coho fish migrations. The campaign included webpages created for the CRWP website specific to this campaign that provide customers with more information, conservation articles, audio PSAs, as well as the ability to take the Fish on the Run pledge online. Seven customers filled out the pledge and received yard signs. Signs were also delivered to CRWP member organization to post in their city parks.
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In an effort to enhance the campaign the CRPW added a new River Level/Conservation Meter component. The new meter is a visual meter either RED, YELLOW, or GREEN is evaluated weekly throughout the late summer and notifies us the severity of the river conditions and how much we should be conserving. Customers are encouraged to visit our website and the Fish on Run webpage for specific conservation information, tips, and actions when the meter is at stage Orange or Red.
In addition to the webpage and outreach materials the CRWP worked with Pamplin Media Group to place a press release, digital ads and print ads in the following CRWP member area newspapers: Clackamas, Estacada, Lake Oswego, Oregon City, Tigard, and West Linn.
The intent is that this campaign will run from August to October each year. See Appendix N for more details.
NEW Flume Smart Water Monitoring Device Pilot Program During the 2019-20 fiscal year the Clackamas River Water Providers began working with FLUME to offer a pilot $100 rebate to eligible CRWP customers if they purchase a new Flume Smart Water Monitor device. Flume is a first-of-its-kind, easily installed household device that puts the power of water monitoring into the hands of homeowners. The Flume device detects small leaks before they cost money and cause damage, allows customers to receive push notifications on suspicious water activities, set water usage goals and water budgets, and gain real-time information on household water consumption. To provide customers with more information on the new Flume pilot rebate program the CRWP developed a brochure and a new webpage. See Appendix O for more details and a copy of the Flume brochure and webpage.
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Technical and Financial Assistance Programs Water Efficient Landscape Audit Program In May of 2017 the CRWP kicked of a Residential Landscape Water Audit program for CRWP members who support the Outreach and Public Education program. The CRWP contracted with a landscape and irrigation professional to perform the audits. The Audits consist of a complete onsite overview of the customer's landscape starting with the location of the customer's meter, checking for leaks, an inspection of the customer's irrigation system, and a full walk through of the customer's yard, garden, and lawn areas.
The customers are invited to use this time with the Auditor to answer any questions and address any landscape and watering concerns they might have. When the onsite audit is complete the customer receives a full written report with water efficient recommendations. The program is marketed through the distribution of a brochure at CRWP member's offices, at summer events, as well as through the CRWP website. Twenty-six customers took advantage of the audits this year. See Appendix P for more details and a copy of the brochure.
Water Conservation Rebate Program The CRWP public outreach and education program completed its tenth year of administering the Water Conservation Rebate Program. This year the program processed more rebates in three months than in a normal year and ran out of money in October of 2019. A total of 218 rebate applications were processed with a total 242 rebates this past year. The Program offers a range of rebates for toilets, clothes washers, smart irrigation controllers, hose bib timers and/or irrigation rain switch, and irrigation spray nozzles. The program is marketed through the distribution of a brochure at CRWP member's offices, and at local Home Depots and Lowes, and to the public at summer events as well as through the CRWP website. See Appendix Q for details.
Other Public Education and Outreach Activities
Conservation Related Committees CRWP staff continues to attend meetings and represent the CRWP interests on a number of different public outreach and conservation related committees. These include the Regional Water Provider’s Consortium Conservation and Communicators Network Committees, the Children’s Clean Water Festival Planning Committee, Chair of the Clackamas County Water Education Team (CCWET), a member of the Clackamas Sustainability Cooperative, and a member of the PNWS-AWWA Conservation Committee, and Chair of the Northwest Oregon subsection Waterworks School organization committee.
18
September 2020
Appendix A - EcoBiz Chinook Book Ads
19
September 2020
Appendix B - Septic System Workshop
20
September 2020
Appendix C – Down the River Clean Up
21
September 2020
Appendix D - Pesticide Reduction with CSWCD
Pesticide Collection Event
22
September 2020
Appendix D -Stop the Drift webpage
23
September 2020
Appendix E - Pesticide Reduction Outreach Program with CRBC
Pesticide flyers updated
24
September 2020
25
September 2020
Appendix F – Source Water Protection Presentations
Date Presentation Organization
August 2019 Spill Response – Protecting our CFD#1 Operations Group Drinking Water
October 2019 Water Providers Working with Oregon Emergency Emergency Management Management Association Agencies to Protect Drinking Annual Conference Water
October 2019 Resilient Water Resource NW Climate Conference Governance in the Pacific NW; Clackamas Watershed Resilience Project
October 2019 Clackamas Watershed Resilience PSU School of Project Environment Speaker Series
November 2019 CRWP overview and update City of Estacada City Council
December 2019 CRWP overview and update Oak Lodge Water Service Board Meeting
April 2020 Pesticides and Drinking Water Pesticide Strategic Planning Advisory Council
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September 2020
Appendix G - CRWP Schools
There are 52 schools from 4 different school districts in the Clackamas River Water Providers combined service area that were offered CRWP youth education programs. Below is a list of these schools.
City of Estacada Schools • John McLoughlin Elementary • Clackamas River Elementary • Gardiner Middle School • River Mill Elementary • Oregon City High School • Estacada Jr. High School • Spring Water Environmental Sciences • Estacada High School School • Alliance Charter Academy City of Gladstone Schools • John Wetten Elementary South Fork - West Linn Schools • Bolton Primary • Kraxberger Middle School • Cedaroak Park Primary • Gladstone High school • Sunset Primary Clackamas River Water Schools • Trillium Creek Primary • Beaver Creek Elementary • Willamette Primary • Bilquist Elementary • Rosemount Ridge Middle School • Redland Elementary • West Linn High School • Lot Whitcomb Elementary • 3 River Charter School • Linwood Elementary Sunrise Water Authority Schools • Sojourner School • Beatrice Morrow Cannady • Cascade Heights Public Charter School • Elementary • Alder Creek Middle School • Deep Creek Damascus K-8 • Ogden Middle School • Happy Valley Elementary • La Salle High School • Mt. Scott Elementary • Sabin - Schellenberg Professional • Oregon Trail Elementary Technical Center • Spring Mountain Elementary • Sunnyside Elementary Oak Lodge Water Services Schools • Verne Duncan Elementary • Candy Lane Elementary • Lewis and Clark Montessori Public • Jennings Lodge Elementary Charter School • Oak Grove Elementary • Scouters Mountain Middle School • Riverside Elementary • Rock Creek Middle School • View Acres Elementary • Happy Valley Middle School • Rex Putnam High School • Damascus Middle School • Clackamas High School South Fork - Oregon City Schools • Gaffney Lane Elementary • Holcomb Elementary
27
Appendix H - Youth Education Program & Presentation
A total of 60 classroom presentations and assembly programs were completed between July of 2019 and March of 2020. Below is a breakdown of where these programs and presentations were completed.
Clackamas River Water Total # presentations = 6
Oak Lodge Water Services Total # presentations = 6
South Fork Water Board Oregon City = 3 West Linn = 26
Sunrise Water Authority Total # presentations = 5
The table below does not reflect the number of total presentations.
Date School Program # Students Service Area
7/11/2019 West Linn So You Want to Be a 38 SF WL Summer Camps Salmon
7/11/2019 West Linn Water Cycle Play 18 SF WL Summer Camps
7/19/2019 Lot Whitcombe Mad Science - Where's the 300 CRW Elem. Water?
8/7/2019 West Linn Mad Science - What do 50 SF WL Summer Camps you know?
8/16/2019 West Linn Mad Science - Where's the 50 SF WL Summer Camps Water?
11/1/2019 Redland Elem Mad Science - What do 200 CRW you know?
11/5/2019 Sojourner Mad Science -Where's the 150 CRW School Water? September 2020
11/13/2019 J Mcloughlin Mad Science - What do 95 SF OC you Know?
11/14/2019 Spring Mt. Elem Incredible Journey 90 Sunrise HV
11/25/2019 Trillium Primary Mad Science - Where's the 60 SF WL (Camp Fire) Water?
11/26/2019 Trillium Primary Mad science - What do 60 SF WL (Camp Fire) you know?
12/3/2019 Bilquist Elem So You Want to Be a 90 CRW Salmon?
12/12/2019 Bolton Primary Mad Science - Where's the 50 SF WL Water?
12/13/2019 Bolton Primary So You Want to Be a 90 SF WL Salmon?
12/23/2019 Bolton Primary Mad Science - Where's the 50 SF WL Water?
1/17/2020 Bolton Primary Mad science - What do 75 SF WL you know?
1/23/2020 Spring Water Will Hornyak 250 SF OC
1/24/2020 Bolton Primary Treatment Plant Tour 32 SF WL
1/27/2020 Oregon Trail Nonpoint Source 15 Sunrise HV after school program
1/28/2020 Oregon Trail Nonpoint Source 15 Sunrise HV after school program
1/28/2020 Oak Grove Elem Source to Tap 26 OLWS
1/29/2020 Oak Grove Elem Will Hornyak 500 OLWS
1/31/2020 Bolton Primary Treatment Plant Tour 32 SF WL
2/7/2020 Bolton Primary Treatment Plant Tour 32 SF WL
43
September 2020
2/10/2020 Bolton Primary Tap Water Tour 75 SF WL
2/11/2020 Bolton Primary Tap Water Tour 75 SF WL
2/12/2020 Bolton Primary Tap Water Tour 75 SF WL
2/13/2020 Bolton Primary Treatment Plant Tour 75 SF WL
2/21/2020 Bolton Primary Will Hornyak 350 SF WL
3/3/2020 View Acres Will Hornyak 350 OLWS
Total 3368
44
September 2020
Appendix I - Mini Water Education Grants
9 grants for 33 teachers were issued to the following schools this past year.
Oak Lodge Water Services Oak Grove Elementary • (2) Kindergarten Teachers • (1) 5th grade Teacher View Acres Elementary • (3) First grade Teachers
South Fork Water Board Springwater Environmental Science School (Oregon City) • (5) 3rd and 5th grade Teachers Bolton Primary (West Linn) • (19) Kindergarten – 5th grade Teachers Willamette Primary (West Linn) • (3) 5th grade Teachers
45
September 2020
Appendix J –2021 CRWP Children's Calendar
10 schools and 19 classes participated in the 2020 CRWP Children's Calendar coloring contest. More than 200 pictures were submitted. The following is a breakdown of which CRWP members schools participated in the calendar project.
City of Estacada Clackamas River Elementary
City of Gladstone John Wetten Elementary
Oak Lodge Water Services Candy Lane Elementary Jennings Lodge Elementary
South Fork Water Board Gaffney Lane Elementary (Oregon City) John Mcloughlin Elementary (Oregon City) Trillium Creek Elementary (West Linn)
Sunrise Water Authority Mount Scott Elementary Oregon Trail Elementary (Happy Valley) Sunnyside Elementary (Happy Valley)
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September 2020
Appendix K– Community Events
CRWP staff participated in 7 Community Events throughout CRWP service areas between July 1, 2019 and March of 2020.
Date Event Water Provider
July 4, 2019 Happy Valley 4th July Event Sunrise Water Authority July 21, 2019 West Linn Old Time Fair South Fork West Linn
August 13-17, Clackamas County Fair CRWP Members 2019
August 24, 2019 Oak Lodge Trolly Trail Oak Lodge Water Event Services
September 14, 2019 Stafford Family Festival South Fork/West Linn
October 5, 2019 CRWP Watershed Tour CRWP Members
February 22, 2020 RWPC Home & Outdoor Regional Water Living Show Providers Consortium
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September 2020
Appendix L – Adult Presentations
This year staff gave 6 adult presentations/interviews between July 1, 2019 and March of 2020.
Date Event Water Provider
July 10, 2019 AM Northwest Live Regional Water Providers Consortium
July 31, 2019 KXL Radio Interview Regional Water Providers Consortium
November 12, Barclay Neighborhood Ass. South Fork Water Board 2019 Oregon City
December 4, 2019 Oregon Landscape Regional Water Providers Contractors Expo Consortium
January 9, 2020 Gaffney Lane South Fork Water Board Neighborhood Ass. Oregon City
February 1, 2020 Beavercreek Lions Club Clackamas River Water
48
September 2020
Appendix M – Quarterly E Newsletter
49
September 2020
Appendix N – Fish on the Run, Irrigation Done Campaign
Campaign Main webpage
50
September 2020
Appendix O - NEW Flume Pilot Program
51
September 2020
Flume Website
52
September 2020
Appendix P - Water Efficient Landscape Audit Program
Since July 2019 a total of 26 CRWP member customers participated in the Water Efficient Landscape Audit Program. Below is a breakdown of where the audits were performed.
Clackamas River Water Number of audits = 17
Oak Lodge Water Services Number of audits = 7
South Fork Water Board Oregon City - Number of audits = 1
Sunrise Water Authority Happy Valley - Number of audits = 1
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September 2020
Audit Brochure
54
September 2020
Appendix Q - Conservation Rebate Program
A total of 218 rebate applications were processed this year with a total of 242 rebates.
City of Gladstone South Fork Water Board Total Rebate Applications = 8 Total Rebate Applications = 78 Total Rebates = 8 Total Rebates = 87 Irrigation Controllers = 3 Oregon City = 28 Clothes Washer = 4 Toilet rebates = 6 Toilets = 1 Irrigation. Controllers = 11 Spray Nozzles = 2 Oak Lodge Water Services Clothes Washer = 9 Total Rebate Applications = 31 West Linn = 59 Total Rebates = 37 Toilet rebates = 10 Clothes Toilets = 13 Washer = 12 Clothes Washers = 13 Irrigation Controllers = 31 Irrigation Controllers = Rain Sensor = 3 7 Hose Timer = 1 Spray Nozzles = 2 Spray Nozzles = 3 Hose Timer = 1
Clackamas River Water Sunrise Water Authority Total Rebate Applications = 44 Total Rebate Applications = 56 Total Rebates = 59 Total Rebates = 47 Damascus = 8 Toilets = 19 Toilet rebates = 2 Clothes Washers = 13 Clothes Washer = 1 Irrigation Irrigation Controllers = 12 Controllers = 4 Spray Nozzles = 2 Hose Timer =1 Hose Timer = 1 Happy Valley = 51
Toilet Rebates = 18 City of Estacada Clothes Washer = 13 Total Rebate Applications = 3 Irrigation Controllers = 20 Total Rebates = 4
Toilets = 1 Clothes Washer = 3
55
September 2020
Rebate Brochure
56
Working together to protect and conserve our drinking water.
FALL 2020 News Riverside Fire & Your Water Providers The Fires in Clackamas County and the Riverside Fire in particular have had a heavy impact on What’s Inside: our residents and our water provider staff. We appreciate the hard work and dedication it has Fire in the Watershed P1 taken for firefighters to get these fires under control and to protect life, safety and property. As the fires burned your water providers worked hard to make sure you continued to have Conservation Calendar P2 high quality drinking water from your tap. Ways to Save Water P3
Most of the Riverside Fire is located on the National Forest and as a result the Clackamas River Partner Spotlight P4 Ranger District has suffered extensive damage to its natural and human resources. In total it burned about 23% of our Clackamas watershed. Now that cooler, wetter weather is here it will Fall Quiz P4 slowly wind down the fire season. That being said, even after the fire has a containment line Watershed Tour P5 fully around its perimeter, the forest service expects to see hot spots, slow-burning stumps, and smoldering embers that will continue to quietly burn and send out intermittent smoke for Water Treatment P6 months into the winter. Flume Rebate P6 The Forest Service currently has a Burned Area Emergency Response (BAER) team of specialists on the ground out assessing the damage to the watershed, habitat, soils, roads, and ‘Faces’ Interview P7 identifying stabilization measures that will be implemented to protect post-wildfire threats to Put Irrigation to Bed P8 human life and safety, property, and critical natural or cultural resources on federal lands. (Continued on page 2)
CHRISTINE HOLLENBECK, Public Education and Conservation Program Coordinator, (503) 723-3511 • [email protected] KIM SWAN, Water Resource Manager, (503) 723-3510 • [email protected]
1 The first step in this process is creating a Soil Burn Severity For more information about the Riverside Fire go to: (SBS) map. The BAER team uses this to make predictions https://inciweb.nwcg.gov/incident/7174/ about how the landscape will respond after a fire. Soil scientists consider where soil productivity will be degraded due to erosion losses and where sediment may move into stream channels. Hydrologists use the SBS to predict watershed response—surface runoff from high SBS areas in rainstorms can produce more “flashy” behavior in stream systems. Geologists use the SBS to inform predictions for debris flow or other mass movement potential based on reduced soil stability in steep drainages. This informs what emergency response actions should be taken to stabilize burned areas that may impact Forest Service critical infrastructure or other values located within or immediately downstream of high soil burn severity areas.
For us water providers downstream, in the near-term (next couple of months) as it starts raining, we expect to see increased levels of turbidity (suspended solids) due to erosion and ash, Total Organic Carbon, Dissolved Organic Carbon, metals and nutrients in our source water. Our water treatment plants are all designed and operated to constantly monitor and remove these constituents in our water. In addition, we are working together along with USGS and other partners to conduct additional water quality monitoring to enhance our water treatment plants ability to adjust water treatment process accordingly if needed.
2021 Water Conservation Calendar
Each year the Clackamas River Water Providers invite 10 different schools participated in the contest. Thirteen teachers and their students to participate in our annual pictures were chosen and posted on the CRWP website for water conservation calendar coloring contest. one week (May 25th – June 1st,) so students, their teachers, families and friends, and the general public could vote for The theme for the 2021 Calendar is “Healthy River, Happy which one of the 13 pictures will be on the cover of the 2021 Fish, Happy People”. Because of the COVID 19 pandemic calendar. The CRWP is working to make sure each school and students that participated in the contest receives a box of calendars being taught (#125) to give away to students and families. from home submitting The 2021 calendars are available to the public upon request pictures for by contacting our office at 503-723-3511 or by emailing the calendar [email protected]. posed some challenges The CRWP annual calendar contest continues to be one of this year. That our most successful projects because of the enthusiastic being said, 19 participation of our teachers, students, and community classes from members. Thank you to everyone for your support.
2 Six Ways to Save Water in the Fall 4. Check for leaks after first thaw. The changes in Water conservation is something we talk about a lot in the temperature between night and day during the winter summertime, but what about the rest of the year? While causes pipes to expand and contract. This added stress we might not be means you’re more likely to develop a leak over the watering our lawns winter. Hire a plumber to check your water lines for leaks or maintaining in the early spring when things begin to thaw. much of a garden, there are still ways 5. Make sure you know where the main water shut-off to cut back on our valve for your house is. Despite our best intentions, water usage during sometimes a pipe will still burst in the winter. The faster the chilly months. you can shut off that water, the less goes to waste. If you A big part of using can’t access your street valve, you’ll need to find the main less water in the fall shut off valve for your house. This is most likely in the and winter is about basement, crawl space, or in the garage. It looks like a anticipating the cold regular spigot, but turning it off shuts off all of the water weather’s effects on to your house. Perfect if you have a gusher and need to your home and on stop the water while you wait for a plumber to arrive. your water pipes. With just a little bit of preparation, you can Make sure everyone in the house knows where the main stop costly and water-wasting issues before they get started. shut off is and post your water provider and plumber’s Fall Water Conservation Tips contact information in plain sight in case you need it fast.
1. Winterize your pipes. Preventing broken pipes and leaks are your best bet when it comes to conserving water in winter. Make sure outdoor water pipes, like the ones running to your backyard spigot, are wrapped. This way, when temperatures drop below freezing, they stay warmer than the air and are less likely to freeze developing leaks or burst.
2. Insulate hot water pipes. Ever notice that it takes your shower longer to get hot when it’s freezing out? That’s M A I N because your pipes are colder. Hire a plumber to wrap your pipes in insulation, or head to your crawl space or basement to do it yourself. Not only does this help the hot water stay hot, but it helps protect these pipes from the cold, preventing freezing. 6. Contact the CRWP for a free Indoor Home Water 3. Use a Shower Bucket. Audit Kit to find more ways you can save water indoors Since it takes longer for this winter. your shower to heat up in winter, catch that cold water People use almost 70 gallons of water per day for and use it to flush toilets or everything from cooking and showering to flushing the water plants. This is a trick toilet, throw in outdoor water use, and you balloon up that you can use year-round, to around 350 gallons per household. The Clackamas but it’s especially helpful in River Water Providers want to make water conservation winter when your shower a part of daily routines year around. Visit our website at runs cold for a bit longer. www.clackamasproviders.org/ for more indoor water conservation tips.
3 Partner Spotlight: CCWET Clackamas County Water Education Team Clackamas County Watersheds: Connecting Water, Land and People
In 2003, Kim Swan, then the Water Conservation Program Coordinator for South Fork Water Board, organized the Clackamas County Water Education Team, or CCWET. This new team was comprised of organizations working on environmental, water, and watershed-related issues in Clackamas County. The aim of these community groups and local agencies was to promote enhancement, restoration, and stewardship of our drinking water and natural heritage of fish CCWET partners and exhibitors, 2018 Celebrating Water Event and wildlife in Clackamas County that depend on a healthy While supporting each other’s public education goals and efforts watershed. Programs and resources focused on watersheds, throughout the year, the CCWET also organizes an annual water quality, water conservation, micro-watersheds, drinking Celebrating Water event held at Clackamas Community College. water, and salmon. The event hosts a day of water and environmental learning to approximately 500 4th and 5th grade students and their teachers Today’s members of CCWET include the Clackamas River from the Clackamas County area. The event includes an exhibit Water Providers, Ecology in Classrooms and Outdoors hall with more than 25 hands-on exhibits, as well as two stage (ECO), the Center for Research in Environmental Sciences shows highlighting storyteller Will Hornyak, and Recycleman and and Technologies (CREST), the City of Oregon City, The Dumpster Divers which provide water and environmental the City of West Linn, Clackamas Community College, education to the event attendees. Unfortunately, in 2020 the 15th Clackamas County Green Schools Program, Clackamas annual Celebrating Water event was canceled due to COVID 19. County Water Environment Services, Clackamas River Basin Council, Clackamas Soil and Water Conservation District, CCWET continues its mission to increase awareness of water and North Clackamas Parks and Recreation, Oak Lodge Water environmental related issues in Clackamas County, to engage Services, and OSU Extension. As it was in 2003, the goals of citizens and promote behavioral changes. By working together CCWET are to deliver a consistent message to their shared our agencies and organizations can offer complementary public and to leverage funding, partnerships, resources, programs while keeping our costs down and making the most of and marketing opportunities. Evaluating the effectiveness our limited staff resources. of outreach and community programs, the coordination of information to avoid duplication and creating accountability, For more information about the Clackamas Partnership will provide more cost-effective programs that complement or to download a copy of the Strategic Plan go to each other and increase visibility. www.clackamaspartnership.org.
Fall Quiz: Answers - Can be found on page 6 1. It takes longer 2. The Riverside Fire will 3. The Flume Smart 4. The Clackamas River for your shower to impact our water source Water Monitor pilot Watershed drains more get hot when it is with increased levels of: rebate program provides than: freezing outside. the following amount: A. Turbidity A. 200,500 acres A. True B. Total Organic Carbon A. $25 B. 475,250 acres B. False C. Metals and nutrients B. $50 C. 600,700 acres D. All of the above C. $100 D. None of the above
4 Annual Watershed Tour In the near term COVID 19 has changed the way we Unlike the Bull Run Watershed, which is federally owned do things. Hopefully at some point things will go back and managed by the City of Portland, 72% of the of the to normal but in the meantime, due to COVID and the Clackamas watershed is publicly owned, 3% is tribally Riverside Fire we have canceled this year’s annual owned, and 25% is privately owned. watershed tour. This has always been one of the highlights The Clackamas River itself begins on the slopes of of the fall for us because it gives us the opportunity to Olallie Butte and flows 82.7 miles from its headwaters talk to CRWP member elected officials and interested (elevation 6,000 ft) to its confluence with the Willamette citizens about the amazing watershed their drinking water River near Gladstone and Oregon City (elevation 12 ft) comes from. and is made up of 16 sub watersheds. Hopefully next year we will be able to resume our annual Want to learn more? Check out our Interactive tours with a tour of the Riverside Fire lead by the Forest Watershed Map www.clackamasproviders.org/ Service to talk about the response to the fire, and their interactive-watershed-map post fire mitigation and rehabilitation efforts.
Until then, here are some interesting watershed facts to ‘tide’ you over. • A watershed is any area of land from which water drains to a common point, be it a river, pond, stream or lake. • Watersheds are separated by topographic features called ridge lines or divides. • Watersheds come in all shapes and sizes and can cross county, state, and national boundaries.
Our Clackamas River watershed drains more than 940 sq miles, or 600,700 acres. More than half of its length it runs through forested areas over rugged terrain. The lower reaches flow through agricultural and densely populated areas. The watershed crosses two counties and includes federal land administered by the US Forest Service and BLM, state land, and private land.
5 These legal limits reflect both the level that protects human health and the level that water systems can achieve How Water Systems Work - using the best available technology. Want to learn more? Call us at (503) 723-3511 to learn more about how your Drinking Water Treatment drinking water is made. The Clackamas River Water Providers have five water More information about how the different CRWP member treatment plants on the Clackamas River where water treatment plants produce clean safe drinking water click is taken out of the river and treated before it is used as on the links below. drinking water. Water treatment is the process of removing undesirable chemicals, biological contaminants, suspended • City of Estacada – Water Treatment Plant solids and gases from the raw river water. The goal is to • Clackamas River Water - Water Treatment Plant produce water that is safe for human consumption, or • The North Clackamas County Water Commission Drinking Water. Water Treatment Plant • South Fork Water Board – Water Treatment Plant Water at these treatment plants is treated to meet legal • Lake Oswego/Tigard – Water Treatment Plant limits set by the Environmental Protection Agency (EPA) on the levels of certain contaminants in drinking water Check out our website later this Fall for video tours of our under the Safe Drinking Water Act (SDWA). Treatment Plants.
The Flume Smart Water Monitor NEW Flume Rebate provides complete coverage The Clackamas River Water Providers is working with FLUME by catching leaks inside of your to pilot a $100 rebate to eligible CRWP customers if they home as well as in your lawn or purchase a new Flume Smart Water Monitor device. garden. If Flume senses a leak or unusually high-water use, Flume, is a first-of-its-kind, easily installed household device you’ll be notified immediately via that puts the power of water use monitoring into the hands of text, email or push notification homeowners. anywhere you are tracking your water use 24/7, alerting you to excessive water use and leaks. • Detect small leaks before they cost money and cause damage Never be surprised by a high-water bill again. Flume lets you set daily, weekly or monthly budgets and notifies you • Gain real-time information on your household as you approach your limit. You can also measure your use water consumption against like homes in the Flume Family. • Set water usage goals and budgets for your household For more information about the Flume smart home water • Smart technology sends notifications straight to your phone monitor and how to apply for our CRWP rebate visit our website under rebates. • Receive push notifications on suspicious water activities while you’re away Conserve water and save money.
Fall Answers Question 1 - Answer is A Question 3 - Answer is C Quiz: Question 2 - Answer is D Question 4 - Answer is C
6 Donn Bunyard Faces of Drinking Water by Christine Hollenbeck Clackamas River Water (CRW) For our Fall 2020 E newsletter we Donn: Getting my Supervisors Certificate interviewed Donn Bunyard. A long- from Clackamas Community College in time fixture in our local drinking water 2000. It set the stage for my move out community. of field operations and into Supervision and Management which allowed me to CRWP: Where do you work/who do you continually grow my career in the work for? Water Industry. Donn: Clackamas River Water (CRW). CRWP: What advice would you give to CRWP: How long have you been working someone starting out in the drinking for Clackamas River Water? water industry? Donn: 37 years in February of 2021. Donn: Take whatever job or task that is assigned to you and do it to the best of PNW, in 2020 we have had our share CRWP: What is your position at CRW? your ability every time. Do it right the first and then some. The best example is Donn: Emergency Manager & time so others don’t have to come back and the recent wildfires that made keeping Safety Coordinator. fix it in the future. Don’t look for others for clean water flowing a challenge for CRWP: How did you acquire your current motivation, find it within yourself. some water suppliers. Being prepared position with CRW? can make the difference between being CRWP: How has the drinking water Donn: It was a mutually agreeable change a victim, or industry changed since you started? of duties in 2014, and it was the best move a survivor. Donn: The industry is much safer that I ever made. I moved from Operations when I started. The crews today are really CRWP: What can the public do to Manager to Emergency Manager & Safety. good at working smarter, not harder. Jobs help make your job easier? CRWP: What is your back ground prior to that we used to do by hand now utilize Donn: Listen to the preparedness working in drinking water? equipment such as Vactor equipment messages we provide and take action. Donn: I spent 10 years in underground and mini-excavators. Changes include Get your emergency kits together utility construction working for a family- everything from “Traffic Control” to how and make sure you stash your 14 run company, and working for a variety of we excavate. A lot of the changes made gallons (or more) of water per person, companies during the winter on projects will help prolong the useful life span of a per day for 14 days. Water is critical such as the I-205 bridge, Port of Portland “Waterworks Mechanic” and that’s good to survival after a disaster. Having a terminal 6, PDX runway expansion, and for everyone. supply of clean water is key to your powerhouse and spillway expansions at ability to recover and it will help buy CRWP: What would you like the public to Bonneville Dam. your water provider the time they know about their drinking water and what need to implement emergency repairs CRWP: What is your favorite/ least your role is in delivering that water? and water supply plans during an Be prepared for emergencies and favorite part of your job? Donn: emergency. Donn: I don’t really have anything about “Don’t Forget the Water”. Our industry my job I don’t like. The favorite part of my keeps the water flowing 24/7 and people CRWP: What’s the most significant job is working with lots of motivated and tend to take it for granted. They turn on project you’ve been involved with in dedicated staff at CRW and within the the water and the wet stuff comes out your career? water industry. of the faucet. My job is really about what Donn: There has been a lot of them to do if the water isn’t there. I promote over the last 36 years, but I think the CRWP: Do you plan on retiring with preparedness with our customers and staff most rewarding was completing the Clackamas River Water? and develop plans for how we can respond requirements of the 2018 American Donn: Yes, the date is still to to pandemics, wildfires, winter storms, Water Infrastructure Act (AWIA) to be determined. earthquakes, and other natural and human end my career at CRW. It required caused hazards which can disrupt the CRWP: What accomplishments are you (Continued on page 8) water flow. Major disasters are rare in the most proud of in your career? on the air
7 Faces - continued a full Risk and Resilience Assessment so the district better CRWP: What do you do for fun when you’re not working? understands what our hazard vulnerabilities are. Mitigation Donn: Watch my grandson play sports (pre-COVID19), strategies are being identified to minimize the impact of those snowmobile, kayak, and do Saturday afternoon walks with hazards, and it includes the development of Hazard Specific friends from church. Emergency response plans to guide the District when those All of the CRWP members and our customers have benefited hazards do strike. When fully implemented, the strategies and greatly from Donn’s emergency preparedness knowledge, plans will make CRW more effective at our response and help his experience, and all over dedication to the drinking water us develop the ability to bounce back after a major event. industry. Thank you, Donn for sharing your story with us. CRWP: What’s the one thing at work you can’t live without? Whoever does take your place when you retire has some very Donn: The people, both our customers and the great folks big shoes to fill. that I work with. Putting Your Irrigation System to Bed Put Your System to Bed for the Winter (PSI). These can be activated by turning off the water Water left in the pipes of your irrigation system can freeze supply and briefly running one of the sprinkler heads over winter, causing damage to the entire system. You owe to relieve the water pressure in the system. You may it to yourself to make an annual habit of winterizing your still need to drain the water between the shut off valve irrigation system when you’re done watering for the year. and the backflow assembly. If the sprinkler heads are That means removing the remaining water from the pipes equipped with check valves, you will need to empty so there’s nothing to expand when temperatures dip down those separately. below freezing. There are three basic methods for draining Irrigation System Blow-Out leftover water from your irrigation system. Which method The final method of winterizing your irrigation system is you should use will depend on the type of irrigation system to force compressed air through the system to discharge you have in place. excess water through the sprinkler heads. This method Manual Valve Systems is potentially hazardous, both to the wrong types Some irrigation systems are equipped with manual drainage of irrigation systems and to anyone who attempts it that allows you to empty excess water from the system by without taking the proper safety precautions. We highly simply opening a valve. If you have such a system, shut off recommend you hire a licensed landscape professional the supply of water to the system, look for the manual valves for assistance. at the ends and low points of the piping. Open all of the Winterizing your irrigation system is a critical part of valves and drain the water from the system, including the annual irrigation maintenance. It can save you from having backflow assembly. to pay for the repair of costly leaks and water line breaks Automatic Valve Systems in the spring. Visit our website for more information about Other irrigation systems are equipped with valves that how to protect your home water systems from freezing will automatically drain water out of the pipes if pressure and more outdoor water conservation information. falls below a certain number of pounds per square inch
8 Working together to protect and conserve our drinking water.
14275 S Clackamas River Drive, Oregon City, OR 97045 • www.clackamasproviders.org
Our Members:
www.cityofestacada.org www.oaklodgewaterservices.org www.crwater.com www.ci.gladstone.or.us www.ci.oswego.or.us
SOUTH FORK WATER BOARD “Pure water since 1915”
www.sfwb.org www.sunrisewater.com www.tigard-or.gov
CHRISTINE HOLLENBECK, Public Education and Conservation Program Coordinator, (503) 723-3511 • [email protected] KIM SWAN, Water Resource Manager, (503) 723-3510 • [email protected]
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