WATER BUREAU

FY 2013-14 REQUESTED BUDGET

FIVE-YEAR PRELIMINARY FINANCIAL PLAN

February 4, 2013

Acknowledgements

Steve Novick Commissioner-in-Charge Office of Public Safety

David G. Shaff Administrator

Employee/Community Budget Advisory Committee

David Argast, Water Bureau, COPPEA Representative Susan Bailey, Water Bureau, Water Administrative Manager Glenn Bridger, Community Member/ SW Portland Edward Campbell, Water Bureau, Resource Protection and Planning Group Manager Roger Cole, Portland Utility Review Board, Community Member, Commercial Industrial OHSU Greg Drechsler, Water Bureau, Principal Engineer Kay Durtschi, Community Member, Past President SWNI, Multnomah NA Michael Ellis, Community Member/SE Portland John Gibbon, Portland Utility Review Board, West Portland Community Member Mark Gipson, Water Bureau, AFSCME Local 189 Representative Lise Glancy, Community Member, Port of Portland Robin Hagedorn, Water Bureau, Support Services Tim Hall, Water Bureau, Public Involvement & Involvement Manager Catherine Howells, Portland Utility Review Board, Water Standing Committee Cecelia Huynh, Water Bureau, Finance and Support Services Group Manager Kathy Koch, Water Bureau, Customer Service Group Director Ty Kovatch, Water Bureau, Maintenance and Construction Group Manager Ryan Kinsella, City Budget Office, Budget Analyst Jeff Leighton, Water Bureau, Asset Management Manager Mary Leung, Water Bureau, Budget Manager Charles A. McGee, II, Community Member/ NE Portland Ashley Schaer, Non Represented Staff Representative Jamie Seaquist, Business Operations David Shaff, Water Bureau, Administrator Mike Stuhr, Water Bureau, Chief Engineer, Engineering Services Group Manager Stan VandeBergh, Water Bureau, Engineer Services Planning Manager Jan Warner, Water Bureau, Finance and Support Chris Wanner, Water Bureau, Water Operations Group Manager Jamie Wilde, COPPEA Representative Jeff Winner, Water Bureau, CIP Planning Supervisor

Intentionally Left Blank Water Budget Advisory Committee Report FY 2013-14 Requested Budget February 4, 2013

Water Budget Advisory Committee Members: David Argast, Water Bureau, COPPEA Representative Glenn Bridger, Community Member/ SW Portland Kay Durtschi, Community Member, Past President SWNI, Multnomah NA Michael Ellis, Community Member/SE Portland Mark Gipson, Water Bureau, AFSCME Local 189 Representative Lise Glancy, Community Member, Port of Portland Charles A. McGee, II, Community Member/ NE Portland Ashley Schaer, Non Represented Staff Representative Jamie Wilde, COPPEA Representative

Portland Utility Review Board (PURB) Water Sub-Committee Members: Roger Cole, OHSU, Commercial/Industrial Member John Gibbon, West Portland Community Member Catherine Howells, At Large Member

The BAC met from October 2012 to January 2013 to review, discuss and provide feedback to the Water Bureau on their operating budget, Five Year Capital Improvement Plan, and retail water rates forecast. The BAC meetings were also attended by the public. Public members were given an opportunity to provide comments and ask questions regarding the Bureau’s budget and rate proposals as well.

The community members and union/staff representatives of the BAC unanimously support the Bureau’s FY 2013-14 Requested Budget including the three “add back” decision packages, Five- Year Capital Improvement Plan and the proposed retail rate increase of 7.8%.

The following are specific comments from some members of the BAC about the Bureau’s budget process. “I believe that the extensive capital improvements honor a commitment to maintain the high quality system we inherited for our own benefit and for the benefit of the citizens of the future.” Mike Ellis

“I have been very impressed with the thoroughness of the information and the depth of discussion.” Catherine Howells

“I hasten to also join Catherine, for the record, to highly commend you and the staff for your due diligence, sensitivity and efficient budgetary allocations that ensure the ongoing delivery of safe, reliable and affordable water supply to about a quarter of all Oregonians.” Charles A. McGee, II,

“Thanks for all the work of you and your team in making our job a relatively easy one. And for all your work in maintaining this important community asset.” Lise B. Glancy

The BAC is including in its report to Council the attached detailed information regarding the Bureau’s proposed reductions through efficiencies, changing service levels, and limiting contingencies while meeting the Mayor’s directive to minimize overhead and administration and preserve core services. Intentionally Left Blank WATER BUREAU FY 2013-14 REQUESTED BUDGET Budget Advisory Committee Report

Bureau Organization

The Administrator’s Office is responsible for policy planning, leadership, direction, and operation of the Bureau. The Administrator’s Office also manages security for the distribution system, property management, organization development, human resources management, public information/involvement, long-range planning, government and community relations, legislative activities, and liaison with the Commissioner-in-Charge and City Council. Property management responsibilities also include grounds maintenance and operation and maintenance of the drinking fountains.

The Finance and Support Services Group provides financial planning, rate setting, budgeting, accounting, payroll, auditing, financial analyses, and fiscal monitoring functions for the Bureau. It also provides clerical support for Bureau staff in the Portland Building. This group manages the interfaces to City financial and personnel systems, and other Bureau- specific software systems.

The Customer Services Group is responsible for managing billing, customer accounts, answering customer inquiries, processing customer payments, reading meters and providing water service inspections. This group is also responsible for the repair, maintenance and replacement of meters. It also includes a quality assurance group.

The Maintenance and Construction Group is responsible for repair, operation, and maintenance of the distribution system. Installation, operation, and maintenance functions related to mains, services, valves, hydrants, and leak detection are performed by this group. This work includes direct services and related support for control valves, carpentry, purchasing and stores operation, and loss control programs. This group manages the Bureau’s two apprentice programs. The emergency crew provides response for outside normal work hour requirements, including main breaks and other emergency responses.

The Engineering Group is responsible for planning, design, and construction of the Water System. In addition, this group serves as customer liaison for new service installation, drafting (including geographic information system), surveying, inspecting, and maintaining records on distribution system improvements. This group manages the Bureau’s emergency management program. This group also has responsibility for developing facility standards, asset management, contract management, and developing and managing the Bureau’s CIP. Administrative oversight of the Hydroelectric Power function is conducted within this group.

The Resource Protection and Planning Group is responsible for coordination with federal, state and local partners to protect the quality of both of Portland’s drinking water sources, invasive species mitigation and environmental compliance. Responsibilities include addressing legislative and regulatory issues and performing research, comprehensive planning on major issues, supply and demand analysis, and coordination of the Regional Water Providers Consortium. This Bureau work group is also responsible for the Bureau’s business, residential and multifamily water efficiency programs, water resource education programs and Bureau sustainability efforts.

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The Operations Group is responsible for the operation and maintenance of water storage and supply, treatment and transmission from the Watershed and the Columbia South Shore and Powell Valley Well Fields. This group operates and maintains the conduits, terminal storage reservoirs, tanks, pump stations, water treatment facilities, pressure regulators, an accredited Laboratory, and the Water Control Center. Work responsibilities include water quality protection, regulatory compliance, laboratory services, system analysis, and addressing water quality customer complaints.

Requested FY 2013-14 Operating Budget by Group

Permanent

10% CAL Reduction Add Backs Reductions Requested Budget Groups Budget FTE Budget FTE Budget FTE Budget FTE Admin (1,572,752) (8.0) 486,545 1.0 (1,086,207) (7.0) 10,896,323 40.1 Finance (227,074) (0.5) 89,553 - (137,521) (0.5) 4,086,605 21.4 Customer Service (742,093) (5.0) 16,135 - (725,958) (5.0) 15,497,136 101.0 Maintenance (1,391,957) (5.0) 107,729 - (1,284,228) (5.0) 12,846,839 95.3 Engineering (921,184) (3.0) 163,505 - (757,679) (3.0) 9,550,038 58.6 Resource Protection (387,904) (1.0) - - (387,904) (1.0) 5,246,090 26.7 Operations (2,355,327) (3.0) 442,614 2.0 (1,912,713) (1.0) 19,740,189 96.0 Total (7,598,291) (25.5) 1,306,081 3.0 (6,292,210) (22.5) 77,863,220 438.9

* This is an organizational look that includes all staff assigned to each Group

Budget Reduction and Add Packages

Following Mayor Hales’ “Utility Guidance and Budget Priorities” directive, this narrative outlines a Water Bureau budget that requests 90% of Current Appropriation Level (CAL) and includes a limited number of add packages.

The narrative is presented in descending Water Program Ranking order, and includes reductions in the majority of the bureau’s programs and sub-programs. The cumulative reductions amount to over $7.6 million in reductions and the elimination of 25.5 budgeted positions. Of the 25.5 positions, 6 are non-represented and 19.5 are represented; 19.5 are vacant now, 3 are filled by upcoming retirees, and 3 are currently filled. Reductions in programs are identified as belonging in one of the following reduction categories:

• Will Improve or Create Efficiencies ($3,014,657, 6 FTE), • Will Reduce or Eliminate Services ($3,612,751, 19.5 FTE), or • Will Reduce Ability to Respond to Contingencies ($970,883) (i.e., will impact the Water Bureau’s ability to respond to unforeseen circumstances)

The Bureau will be requesting $1.3 million as add backs which includes interagencies, the Decorative Fountain subprogram (including 2 FTE) and one Security position. The Water Bureau took a conservative approach on the Interagency “savings” and assumes that all of those interagency reductions will be approved as “add” packages by the City Council in various water programs. Whatever interagency costs do not get added back will result in a commensurate reduction in the Water Bureau’s operating budget and a lower requested rate increase.

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In mid FY 2010-11 and through all of FY 2011-12 and FY 2012-13, managers and supervisors were instructed to reduce spending on a “one-time” basis in order to address shortfalls in revenue and demand projections. The reductions proposed below for FY 2013- 14 are permanent reductions (with the exception of the three bureau “add” packages in Fountains and Security), many of which mirror the reductions in spending that managers and supervisors have made and adjusted to over the past two+ years.

Not all of the $7.6 million in reductions are reflected in the narrative below. While the total reduction amount is reflected in each Water Program heading, not every reduction is itemized and the amounts listed in the narrative may not add up to the total reflected in the headings.

Where possible, bureau managers have identified the specific service level impact associated with the more significant reductions. In many areas, as managers and supervisors have reduced the bureau’s requested budget amounts to more closely reflect current spending levels, the impacts are harder to quantify and articulate. In these cases the impacts will most likely be a reduction in the ability of the bureau to respond to unforeseen circumstances.

Summary of Past & Requested Reductions FY 2008-09 to FY 2013-14

Reductions reductions add back one-time on-going Add Backs total positions positions Adopted FY 2008-09* (2,051,050) - (2,051,050) Adopted FY 2009-10 (1,463,370) (1,463,370) (24.5) Adopted FY 2010-11 - Adopted FY 2011-12 (2,521,812) (2,521,812) (14.0) Adopted FY 2012-13 (618,098) (618,098) (10.0) Requested FY 2013-14 (7,598,291) 1,306,081 (6,292,210) (25.5) 3.0 Grand Total (2,051,050) (12,201,571) 1,306,081 (12,946,540) (74.0) 3.0 * mid year reduction

The cumulative results of these past and proposed reductions include increased efficiencies, changing work practices, and changing service levels. In addition, the bureau will have significantly reduced its flexibility and its financial ability to respond to unforeseen expenses or shortfalls in revenue such as the continued decline in water sales.

Requested FY 2013-14 reductions are primarily in the following budget categories:

$2,370,000 Staffing (full time and related benefits) $346,000 Staffing (part time, overtime, and premiums) $1,037,000 Professional & Miscellaneous Services $1,111,000 Operating Supplies $273,000 Miscellaneous $279,000 Repair & Maintenance Services $921,000 Utilities $144,000 Training/Travel $1,180,000 Interagencies

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Grounds/Parks - Ranking #22 – ($183,510, 3 FTE) • Reduce staff by one Horticulturist and two Utility Worker I (UWI) positions. Utility Worker Is do a variety of tasks within the unit. Some of the work performed will be absorbed by other staff or the use of seasonal and casual help. There will be some impact to the overall facilities and ground maintenance. One UW I position has been vacant since June of 2012, and the group successfully used a Seasonal Maintenance Worker during the past season. The second UWI has stated his intention to retire in August of 2013. Elimination of these positions would have the least impact on service levels. (Reduction Category: Will Reduce or Eliminate Services)

The horticulturist position is tasked with work that is outside of the routine maintenance of the bureau’s properties. Without this position, the group can continue to maintain bureau properties to minimal standards; both staff and public will be able to continue to safely access properties. Eliminating this position will not adversely affect upkeep in such a way as to increase complaints from the public about overgrown or otherwise neglected properties. However, the work that the horticulturist performs is important to the long term health of the vegetation at the properties. Over time there will be some negative impact on the properties.

The Grounds section proposes to mitigate loss of staff members through several measures:

As the workload for the unit is much heavier during the mowing and leaf removal season (April – December), we will offset the work performed by one UWI by hiring a Seasonal Maintenance Worker and some additional overtime for other staff. When the Seasonal Maintenance Worker is not available, some duties will be reassigned.

Hire three Community Service Aids: The three would work a total of 1,872 hours annually cleaning Benson Bubblers and picking up garbage. This will continue the current two week cleaning cycle of the drinking fountains year round. The cost of the work would be a total of $18,720 annually.

Utilize an upgrade for necessary horticulturist work. When work is needed at the horticulturist level, we can upgrade an existing employee who is eligible for upgrade. If the employee is upgraded ½ of the time the cost would be $2,340 annually.

Modify the mowing schedule for some properties. Currently most properties are mowed on a two week cycle. This proposal extends the cycle to three and four weeks for some properties – those that are the least used by the public. To make this more viable, this proposal includes buying a “field mower” that can be attached to an existing tractor. The cost is approximately $5,000.

Fountains #21 – ($626,371, 2 FTE) • Transfer the operation and maintenance of the City’s 19 decorative fountains back to the Parks Bureau. In 1988, City Council transferred responsibility for the operations and maintenance of the City’s decorative fountains from Parks to the Water Bureau. This

4 proposed reduction reflects the Mayor’s directive that utility bureaus should ensure their most mission-critical functions and programs are included in the 90% CAL budget.

Water Bureau Add Back Request • The Water Bureau is requesting that the decorative fountain subprogram of $466,178 (2 FTE) be added back into its operating budget. The add package will restore the program, but will still propose reducing Miscellaneous Services and Operating Supplies by $151,436. These reductions will restrict our ability to complete some repairs in a timely manner. For some severe failure modes, a decorative fountain may be out of service for an extended period. Personnel will not be dispatched on overtime to repair or get the fountains back into service. This reduction also reflects the lower sewer discharge fee of $0.001/ccf for decorative fountain drainage costs.

Security/Emergency Mgmt - Ranking #20 – ($508,801, 4 FTE) • Reduce the Emergency Management program by eliminating an allotment for scheduled overtime for routine program support and to reflect a reduced need for operating supplies by relocating to the new Emergency Coordination Center (ECC). Emergency incidents that require overtime will require budget adjustments/reductions elsewhere in the program during the year. (Reduction Category: Will Reduce Ability to Respond to Contingencies)

• Eliminate two vacant Water Security Ranger positions. (Reduction Category: Will Reduce or Eliminate Services)

The elimination of one vacant position in Security will reduce the bureau’s flexibility during certain shifts to respond to security issues at the open reservoirs at Washington Park or Mt. Tabor. This reduction in Water Bureau Security staff may increase the risk of criminal activity as the physical presence of security is decreased. Specifically, the reduction will increase the times when there is no security on site at the Washington Park open reservoirs on the night shift because the Ranger assigned there may be dispatched to calls for service, alarms and routine patrols of Water Bureau critical sites throughout the city. The impact of the position reduction is mitigated by the fact that public access to the Washington Park reservoirs is currently restricted when the gates are closed and locked at dusk each evening. The Ranger assigned to Mt. Tabor, to a lesser degree will also be called away from the park to take priority calls.

The elimination of the second vacant position will cause additional reduction in flexibility and coverage on both the day and night shifts. Washington Park will be eliminated as a fixed post on the night shift. This will be somewhat mitigated by periodic patrols. Reservoir #3 is currently open to the public from dawn to dusk. Reduced security coverage at the site will result in the need to consider year round fixed hours so that the park will be opened and closed in order to match the presence of security, 7:00 am to 7:00 pm. Rangers currently close and lock all vehicle gates at 10:00 pm throughout Washington Park for the Parks Bureau. This responsibility would be returned to the Parks Bureau. Security policy also will be modified at Mt. Tabor so that the ranger can be called away from the park at certain times on the night shift to respond to alarms and other critical needs as they arise.

5 The existing surveillance cameras at Washington Park and Mt. Tabor are scheduled to be upgraded to a much improved high definition model by the beginning of the next fiscal year when the reduction(s), if approved, will take place. This will greatly enhance the ability for the security dispatcher to detect trespassers on camera who will then be able to call for a police response.

• Eliminate a vacant Engineering Tech 2 position in the Security/Emergency Management administration program, reducing facility and response planning efforts. (Reduction Category: Will Reduce or Eliminate Services)

• Eliminate one vacant Engineer position. The Engineer position will reduce the amount of effort and assistance with non capital improvements like facility maintenance, and security, such as ADA improvements and enhanced security systems. (Reduction Category: Will Reduce or Eliminate Services)

Water Bureau Add Back Request • The Water Bureau is requesting to add back one of the Security Ranger positions in order to provide greater nighttime presence at Washington Park and reduce the number of times security staff would otherwise be pulled away from Mt. Tabor.

Bureau Support - Ranking #19 – ($1,618,086, 2.5 FTE) • Reduce $596,292 in the General Support program including reductions of $138,731 in the Operations Group primarily for Operating Supplies and Miscellaneous. This will better align the budget to actual spending and reflects an effort to maintain on an ongoing basis the previous two years of one-time reductions. (Reduction Category: Will Improve or Reflect Efficiencies)

• Reduce $110,987 in space rental by vacating the small conference rooms on the 3rd floor and the 14th floor space occupied by the Engineering Planning group. Position reductions in previous years have resulted in vacant spaces on the 5th and 6th floors, which can be reorganized to accommodate the staff moving from the 14th floor. (Reduction Category: Will Improve or Reflect Efficiencies)

• Reduce repair and maintenance and use of outside PTE services consistent with actual FY 2011-12 expenditures. Repair or replacement of broken equipment may be deferred. (Reduction Category: Will Improve or Reflect Efficiencies)

• Reduce $69,516 within the BTS Support Services Program in repair and maintenance as well as $40,000 in Professional Services on Enterprise Content Management. (Reduction Category: Will Improve or Reflect Efficiencies)

• Eliminate the vacant Facilities Service Specialist position in Property Management. When the Property Management unit was formed, this position was needed to help organize the property assets and to organize/manage projects involving properties owned by the Bureau. The majority of these projects have since been completed and the work assigned to this position has been reduced substantially. The remaining work can be absorbed into the current work unit. (Reduction Category: Will Improve or Reflect Efficiencies)

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• Reduce $18,200 for utilities for facilities outside the Portland Building or the Interstate facility based on the actual costs for the last two years. (Reduction Category: Will Improve or Reflect Efficiencies)

• Eliminate a vacant Management Assistant position in the Public Involvement program assigned as liaison to Commissioner Leonard’s office. The employee was the Commissioner’s designated point of contact for Water Bureau issues that include billing, water quality, permitting, construction projects, general customer service issues & complaints, etc. When Commissioner Leonard left office, the bureau no longer required a staff liaison. Rather than a single point of contact with the new Commissioner-In-Charge, the duties will be picked up by existing staff in Public Involvement as well as Customer Service, Maintenance & Construction, Engineering, and Operations. (Reduction Category: Will Improve or Reflect Efficiencies)

• Eliminate one ½ time vacant OSS II position from the Office Support staff. A recent retirement left this half time (job share) position vacant. A full time OSS II position will be reassigned from the Accounting Division to Office Support to help fill the reduction of this half time position and continue to do some of the accounting duties currently assigned. The impact from this change will result in shifting review of travel/training reimbursements and support for FMLA processing to other administrative staff as well as increasing workload to other Accounting staff. (Reduction Category: Will Reduce or Eliminate Services)

• Defund a Bureau of Technology Services position and utilize flexible services contracts to do the work. Currently the bureau pays $180,195 to BTS for a fulltime Applications Analyst IV – salary and benefits as well as BTS and OMF overhead. Eliminating one position and securing $125,000 in flexible services contracts results in annual savings of $55,195. The result would have several advantages over the current situation: more & varied expertise, ability to do more than one project at a time, direct relationship with the vendor allowing for better project management and projects done in a more timely fashion, and direct control over the work products. The one advantage that the current model has is immediate availability for small fixes of databases. However, BTS indicates that with a flexible services contract, we can set up task orders that will allow us to have someone available within 1 business day. (Reduction Category: Will Improve or Reflect Efficiencies)

Planning - Ranking #18 – ($246,173, 0 FTE) • Reduce $50,000 in Professional Technical Expert services for asset condition assessment which may result in additional effort by Water Bureau staff and delay of Asset Life Forecasting model. (Reduction Category: Will Reduce or Eliminate Services)

• Reduce $20,000 in Professional Services in Long-Term Supply. This reduction in professional services allocated to Climate Change will reduce the scope and ability of the bureau to conduct research and support its participation in the Water Utility Climate Alliance. $50,000 remains allocated to these activities which is expected to be adequate for FY 2013-14. Reduce an additional $20,000 in part-time funds. This is a 33% reduction in the amount of part time resources allocated to Climate Change work in the

7 bureau and reflects an earlier end date to the services of a current working retiree. The bureau will need to reassign or reduce its efforts on Climate Change research and planning during FY 2013-14. (Reduction Category: Will Reduce or Eliminate Services)

• Reduce $50,000 in Professional Services in Financial Planning. The rate structure study will be completed in this fiscal year. There will be no funding in the budget for rate model alteration if City Council directs the Bureau to change its rate structure. (Reduction Category: Will Improve or Reflect Efficiencies)

• Reduce $49,429 in Engineering Services for funding seasonal part time hiring of engineering students to provide them exposure to utility/municipal engineering. The amount reduced will result in 4 fewer students. Resources remain allocated for 2 student seasonal hires. (Reduction Category: Will Improve or Reflect Efficiencies)

Conservation/Sustainability - Ranking #17 – ($65,000, 0 FTE) • Reduce $20,000 from professional services resources allocated to Home Water Assessments. This represents a 67% reduction in the professional resources available to assist residential customers in identifying and addressing water efficiency opportunities in their homes. (Reduction Category: Will Reduce or Eliminate Services)

• Reduce $20,000 in Miscellaneous Services for the Business Industry and Government Incentive Program. This reflects a 40% reduction in the small grants program and reduces the overall number of commercial customers who will have an opportunity to benefit from making innovative water efficiency investments in their buildings or plants. (Reduction Category: Will Reduce or Eliminate Services)

• Reduce $20,000 in the Sustainability Program Bureau payments to the Bureau of Planning and Sustainability. This reflects the elimination of $15,000 in bureau payments for the Sustainable Development Commission which no longer exists, and a $5,000 (50%) reduction in bureau payments for sustainability event sponsorships. (Reduction Category: Will Improve or Reflect Efficiencies)

• Reduce $3,000 by eliminating the use of Portland State University in conducting recycling waste stream sorts for the bureau’s solid waste stream and a $2,000 reduction in the operating supplies for the sustainability program. A new citywide waste collection contract is anticipated to include periodic waste sort services for the city, so outside services may not be needed in future years. The reduction in sustainability supplies is 40% of this line item and will reduce the bureau’s capacity to support its overall sustainability efforts. (Reduction Category: Will Improve or Reflect Efficiencies)

Employee Investment - Ranking #16 – ($324,231, 1 FTE) • Eliminate a filled Program Specialist. This position performs a variety of tasks in support of the various programs in which the group is engaged: training, organization development, diversity development, FMLA/OFLA request processing, and property management. Over time this support function has been reduced and the work has become less critical. Although the work can be absorbed into the unit and done by the professional staff in charge of the programs; this will have some negative impact on time

8 available for program development. (Reduction Category: Will Reduce or Eliminate Services)

• Eliminate $17,000 for continuing education that is no longer in the COPPEA collective bargaining agreement. Training for staff is included in the regular training budget. If future negotiations reinstate the training fund, mid-year adjustments could be required. (Reduction Category: Will Reduce Ability to Respond to Contingencies)

• Reduce $189,488 in the Apprentice Training, Employee Investment and Safety program in the Maintenance and Construction Support Services Group. This reduction significantly reduces resources for outside trainers for purposes like continuing education requirements for water distribution certifications. Greater emphasis will be placed on training conducted utilizing internal expertise. (Reduction Category: Will Improve or Reflect Efficiencies)

• Reduce $7,900 in training. Reductions in training limit the ability to send Customer Service Representatives to classes that enhance their skills in core functions of their job. Customer Service is a fast paced, stressful job that relies on the ability of staff to communicate effectively and efficiently. Typical classes include: The Foundations of Time Management, Communicating with Different Personalities, High Impact Business Writing, Crucial Conversations and Negotiating for Success. (Reduction Category: Will Improve or Reflect Efficiencies)

Data Management - Ranking #14 – ($192,330, 1 FTE) • Reduce $65,000 in software maintenance for the Computerized Maintenance Management System (Synergen). The Bureau of Technology Services has assumed responsibility for maintenance of the Synergen software, and is no longer a direct cost for Maintenance & Construction. (Reduction Category: Will Improve or Reflect Efficiencies)

• Eliminate a vacant Engineering Tech 2 position (currently being filled by a returning retiree). The impact will be an increase in mapping backlog and records archiving. (Reduction Category: Will Reduce or Eliminate Services)

Meters - Ranking #13 – ($6,250, 0 FTE) • Overtime budget was reduced in the Meter Administration Program. (Reduction Category: Will Reduce Ability to Respond to Contingencies)

Field Support - Ranking #12 – ($925,866, 2 FTE) • Eliminate a vacant Sr. Program Manager position in Maintenance & Construction. This position was responsible for oversight of the division’s vehicle fleet, Computerized Maintenance Management System, and field support. These functions have been distributed to the responsibilities of Maintenance & Construction’s Sr. Water Maintenance Supervisors, resulting in a greater workload for these managers. (Reduction Category: Will Improve or Reflect Efficiencies)

• Eliminate a vacant Public Works Supervisor II (PWS II) position. This position recently became vacant. The elimination of this position requires other Supervisors to take on a

9 greater workload. Maintenance & Construction operates 7 geographic service districts, a mains installation program, and a field support and planning function that PWS II’s oversee. Due to the reduction in supervisors, 9 work units will now be covered by 8 PWS II’s. Specifically, the Supervisor of Northwest District now supervises both Northwest District and the Mains program. In addition, Supervisors are required to be on- call 24 hours a day for a week on an evenly scheduled rotation throughout the year. Previously this responsibility occurred every 9 weeks, and now Supervisors will be required to serve in this capacity every 8 weeks. (Reduction Category: Will Improve or Reflect Efficiencies)

• Reduce $100,000 in Professional Services funding for consultant contracts associated with workforce leadership training. Greater emphasis will be placed on training conducted utilizing internal expertise. (Reduction Category: Will Reduce or Eliminate Services)

• Reduce $105,300 in premium pay and related benefits in Maintenance & Construction to better align with actual expenditures. This allocation is for certain work situations which require a pay premium in the Collective Bargaining Agreement with the DCTU. (Reduction Category: Will Improve or Reflect Efficiencies)

• Reduce $100,000 in contract flagging services. This reduction will require Maintenance & Construction to manage almost all of its own traffic control, regardless of the area where work is performed and the intensity of traffic. This will require larger crews for jobs requiring significant traffic control, and will consume resources that are skilled in working on the water system for controlling traffic, while forgoing resources with greater skills and experience in managing certain types of traffic situations. (Reduction Category: Will Improve or Reflect Efficiencies)

• Reduce $99,750 in Miscellaneous Service for street permits, and CDL medical and drug testing related expenses. (Reduction Category: Will Improve or Reflect Efficiencies)

• Reduce $56,000 in Operating Supplies for acquisition of supplies purchased by Stores. Due to the Interstate facility renovation, inventory reductions are necessary and the impacts of this reduction should be manageable. (Reduction Category: Will Improve or Reflect Efficiencies)

Water Quality & Regulatory Compliance - Ranking #10 – ($601,728, 1 FTE) • Eliminate a vacant Water Quality Manager position. The elimination of this position has the direct result of transferring the following four positions from direct reports to the WQ manager to the Operations Director; WQ Compliance - Supervising Engineer, Laboratory Services - Lab Manager, Water Quality Inspections - WQ Inspection Supervisor, Water Line - Admin Supervisor I.

The rationale for creating the WQ Manager position included the compilation of a cohesive group of personnel with critical elements of water quality as their primary function. The WQ Manager would provide group leadership and comprehensive direction. While these elements did exist during the time this position has been filled, first by an interim manager and then by a nationally recruited and hired individual, the

10 Operations Director has determined that the bureau will continue to have a dedicated group of water quality professionals providing required services without this position. (Reduction Category: Will Improve or Reflect Efficiencies)

• Reduce the LT2 variance monitoring program by $169,800. This reduces funding of the sampling program to the required 2x per week, but eliminates funding for increased sampling in the event of a positive crypto sample. If increased sampling is required, the bureau will use funds from the rate stabilization account or draw down on the minimum funds balance reserve. Use of funds from these reserves will require water rates to be increased the following year to replenish the reserves. (Reduction Category: Will Reduce Ability to Respond to Contingencies)

• Reduce $50,000 in Backflow Monitoring by having Water Quality Inspection staff work more closely with the Meter Inspectors to ensure that priority work is correctly assigned between the two groups. There has been a shift in funding in this area from the Meter shop to the WQ group and it has been determined that this reduction will not detract from appropriate Title 21 plumbing code regulations. (Reduction Category: Will Improve or Reflect Efficiencies)

• Reduce funding in the Endangered Species Act (ESA) Program by reducing $32,000 in part time seasonal staff available to conduct invasive species assessments, monitoring and management in the watershed. The amount reduced is equivalent to two part time seasonal staff (66% reduction). $16,000 remains allocated for one Community Service Aide (CSA) in FY 2013-14. Part time CSA’s work with the Invasive Species Coordinator on direct removal and monitoring of invasive species. Also reduce by $10,000 invasive species professional services funding. This will reduce by 25% the contracted resources available to conduct invasives assessment, monitoring and management for City-owned lands and facilities including those in the Bull Run watershed. (Reduction Category: Will Reduce or Eliminate Services)

• Reduce $40,000 in regulatory compliance studies and utilize in-house Water Quality staff expertise instead of consultants. The result will be that some studies take longer to develop and complete. (Reduction Category: Will Reduce or Eliminate Services)

• Reduce $26,000 in printing and production of water quality brochures; these brochures have been incorporated into the annual Consumer Confidence Report. (Reduction Category: Will Improve or Reflect Efficiencies)

• Reduce $35,000 in temporary part-time employee assistance in the Water Quality Compliance group. Previously, one to two interns are hired per year at different times to provide data analysis functions. This work will be taken on by existing compliance staff with the result that some analysis efforts will be reprioritized and may take longer to complete. (Reduction Category: Will Reduce or Eliminate Services)

• Reduce $84,000 in Operating Supplies and Miscellaneous to better align the budget to actuals and reflects an effort to maintain on an on-going basis the previous two years of one-time reductions. (Reduction Category: Will Improve or Reflect Efficiencies)

11 • Reduce by $15,000 most of the contingency resources in Watershed Administration available to address unforeseen needs within the Resource Protection and Planning Group. The reduction reduces the overall capacity to fund Resource Protection and Planning base programs which vary in overall size from year to year. (Reduction Category: Will Reduce Ability to Respond to Contingencies)

Valves/Gates/Regulators - Ranking #9 – ($87,929, 1 FTE) • Eliminate a filled Water Operations Mechanic position. A Water Operations Mechanic vacancy is expected to occur by the end of the fiscal year. It takes 2-3 years to hire and train a Water Operations Mechanic Apprentice before they can become a journeyman Mechanic, so adding to our mechanic ranks will occur the next time the bureau hires for apprentices. The elimination of this position will reduce the number of mechanics available to lead crews and complete repairs and augmentations to the water system, which reduces the capacity to complete proactive maintenance and respond to main breaks and other reactive issues in the water system. (Reduction Category: Will Reduce or Eliminate Services)

Groundwater - Ranking #8 – ($627,718, 0 FTE) • Reduce the groundwater utility budget from $1.2 million to $700,000. The remaining budget is sufficient for annual maintenance testing and analysis as well as the production of approximately 900 million gallons of groundwater for turbidity events and/or supplemental supply. If additional groundwater is required, the bureau will use funds from the rate stabilization account or draw down on the minimum funds balance reserve. Use of funds from these reserves will require water rates to be increased the following year to replenish the reserves. (Reduction Category: Will Reduce Ability to Respond to Contingencies)

• In the Groundwater Operations and Maintenance program, well abandonments will be considered on an individual basis as opposed to having a continuously budgeted amount. No well abandonments have occurred in several years and there are currently no planned abandonments. (Reduction Category: Will Improve or Reflect Efficiencies)

• Eliminate $50,000 in professional services for research and analysis supporting the bureau’s ground water resources. The bureau’s Groundwater Steering Committee has identified a series of studies to be accomplished over the next five years to improve the bureau’s understanding of the Columbia South Shore Well Field including the long term capacity of specific aquifers. (Reduction Category: Will Reduce or Eliminate Services)

Customer Service - Ranking #7 - ($731,315, 5 FTE) • Eliminate five positions in Customer Services. Eliminating these positions along with reducing overtime and premium pay will have a negative impact on the level of service the bureau strives to provide. (Reduction Category: Will Reduce or Eliminate Services)

Eliminating four Customer Account Specialists will significantly hinder our ability to achieve our service level target of answering 80% of calls in 60 seconds.

12 Eliminating a Water Service Inspector (WSI) will require the lead WSI to cover a district and perform lead duties at the same time. This will minimize their ability to meet customers who have more complicated issues to resolve in the field.

• Reduce $184,000 in Data Processing by reducing the repair and maintenance budget for the large bill printer and a variety of other associated equipment. The bureau will no longer have a contract for 24/7 coverage on the printer. It will be reduced to “business hours” which is sometimes difficult since the vendor is 3 hours ahead on the East Coast. Also reducing the postage budget since postal rates did not increase as much as anticipated and due to plans to promote electronic billing more vigorously. (Reduction Category: Will Reduce or Eliminate Services)

• Reduce $31,000 from the Multnomah County fixture repair program and the income verification service to be in line with current spending. Reduce printing costs for Low Income brochures. These reductions reduce flexibility in the event participation in the Low Income Program grows. (Reduction Category: Will Improve or Reflect Efficiencies)

Pump Stations/Tanks #6 – ($269,019, 0 FTE) • Reduce $55,000 in Pump Stations/Tanks Admin for office support contract workers from Galt & St Vincent dePaul and transfer that work to existing staff. (Reduction Category: Will Improve or Reflect Efficiencies)

• Reduce $80,000 in operating supplies which will restrict our ability to quickly repair a pump station or tank. (Reduction Category: Will Reduce Ability to Respond to Contingencies)

• Reduce $100,000 in pump station electricity to better align with our electricity costs. (Reduction Category: Will Reduce Ability to Respond to Contingencies)

• Reduce $14,000 in Professional Services for technical support of the bureau’s Supervisory Control and Data Acquisition (SCADA) system. (Reduction Category: Will Improve or Reflect Efficiencies)

Distribution Mains - Ranking #5 – ($145,196, 2 FTE) • Eliminate a filled Utility Locator position. A vacancy in the Utility Locator classification is expected to occur by the end of the fiscal year as a result of a retirement. The workload of this locator, who is one of our most experienced, will be distributed among the remaining 5 locators, which will require periodic use of Water Operations Mechanics to assist during peak workload periods, and potentially the use of overtime to meet workload demands. Utility locates are required by law to be completed within 2 business days. (Reduction Category: Will Reduce or Eliminate Services)

• Eliminate a filled Automotive Equipment Operator II position. A vacancy in the AEO II classification, which operates the Water Bureau’s Crane Truck, is expected to occur by the end of the fiscal year as a result of a retirement. The function of this position will be aligned with the crane truck operators in other city agencies, which are classified as Automotive Equipment Operator I. We have an existing vacancy in the AEO I

13 classification which will be filled by the next crane truck operator, who is likely to come from the Utility Worker II classification. (Reduction Category: Will Improve or Reflect Efficiencies)

Conduits/Transmission - Ranking #3 – ($72,203, 0 FTE) • Reduce $72,203 in operating supplies for Watershed and Sandy River Station. The ability to enact large scale repairs such as the Red Barn slide will be more restricted as a result of this budget reduction as stockpiles of materials such as gravel will be reduced. Should emergency needs for materials arise they will be dealt with on an as needed basis. (Reduction Category: Will Reduce Ability to Respond to Contingencies)

Treatment - Ranking #2 – ($180,000, 0 FTE) • Reduce $150,000 in operating supplies of which $85,000 is to true up the cost for chemical purchases. The remaining $65,000 reflects reductions to better align the budget to actuals and reflects an effort to maintain on an on-going basis the previous two years of one-time reductions. (Reduction Category: Will Improve or Reflect Efficiencies)

• Reduce $30,000 in operating supplies for sodium hydroxide and aqueous ammonia chemical purchases to better align with decreased water demands. (Reduction Category: Will Improve or Reflect Efficiencies)

Bull Run Watershed - Ranking #1 – ($186,566, 1 FTE) • Eliminate a vacant bus driver position budgeted in Resource Protection. Elimination of the position will require the continued use of temporary part time staff resources and the intermittent use of Automotive Equipment Operator II’s (AEOII) and other staff from the Maintenance and Construction (M&C) Group to drive the Water Bureau tour bus when it is used for bureau tours and by other city agencies. Use of employees from the M&C Group reduces available staffing for operating equipment and can result in some logistical challenges in the Group. (Reduction Category: Will Reduce or Eliminate Services)

• Eliminate $50,000 in funds earmarked to pay for the update of geo-spatial data sets know as LIDAR (Light Detection and Ranging) which provide extremely detailed information on surface land forms. The bureau acquired an initial LIDAR dataset for the Bull Run watershed in 2007 and wishes to update this data on a recurring 5 to 7 year basis. Data acquisition involves a flyover of the watershed by an aircraft equipped with LIDAR equipment and data management and preparation by the Oregon State Department of Geology and Mineral Industries (DOGAMI). LIDAR is an important tool for monitoring the landslide potential and actual ground movement within the watershed over time, enabling the bureau to identify, keep track of, and mitigate for potential problem areas that might put water quality, water infrastructure or employees at risk. This reduction to the FY 2013-14 budget will result in the need for additional resources or budget reductions in future years to fund this activity. (Reduction Category: Reduce or Eliminate Services)

• Reduce $20,000 in part time funds to hire part time temporary staff to assist with education activities during the school tour and summer season. Part-time staff has been used to assist the Education Program Manager while the permanent environmental

14 program specialist position assigned to the program has been vacant. These part time dollars are not anticipated to be needed in FY 2013-14 since the full-time position is now filled. (Reduction Category: Will Improve or Reflect Efficiencies)

• Reduce $10,000 in Professional Services intended for contract services to assist with the development of interpretive materials for the education program. That work has been accomplished in part with internal and specific project related resources and is not anticipated to be needed in FY 2013-14. (Reduction Category: Will Improve or Reflect Efficiencies)

• Reduce $30,000 in Professional Services earmarked to conduct an analysis of culverts in the watershed to determine the vulnerability of this infrastructure to imminent failure. This work has been re-prioritized and is not anticipated to be necessary in FY 2013-14. This reduction to the FY2013-14 budget will result in the need for additional resources or budget reductions in a future budget year to fund this work when it becomes necessary. (Reduction Category: Will Improve or Reflect Efficiencies)

15 Intentionally Left Blank

16 Portland Water Bureau

Public Utilities Service Area

Steve Novick, Commissioner-in-Charge David Shaff, Administrator

Percent of City Budget

Bureau Programs

Bureau Overview

Revised Requested Change from Percent Expenditures FY 2012-13 FY 2013-14 Prior Year Change Operating 520,964,537 486,187,089 (34,777,448) (6.68) Capital 140,278,212 125,209,600 (15,068,612) (10.74) Total Requirements 661,242,749 611,396,689 (49,846,060) (7.54) Authorized Positions 618.50 594.35 (24.15) (3.90)

17 Portland Water Bureau Public Utilities Service Area Hydroelectric Power Division David Shaff Administrator Portland Water Bureau Water Division Maintenance and Construction Services Resource Protection and Planning Finance and Support Services Operations Customer Services Engineering Administration

18 Portland Water Bureau Public Utilities Service Area Bureau Summary Bureau Mission The mission of the Portland Water Bureau is:

‹ To provide reliable water service to customers in the quantities they desire and at a quality level that meets or exceeds both customer and regulatory standards

‹ To provide the highest value to customers through excellent business, management, and operational practices and appropriate application of innovation and technology

‹ To be responsible stewards of the public's water infrastructure, fiscal, and natural resources

‹ To provide the citizens and the City Council with a water system that supports their community objectives and overall vision for the City of Portland Bureau Overview The Portland Water Bureau (PWB) has two divisions, the Water and Hydroelectric Power Divisions.

Water Division The Water Division is responsible for construction, maintenance, and operation of Portland's municipal water system. The Water Division ensures that the water system can provide a sufficient quantity of high-quality water to satisfy the existing and future needs of the community. Approximately 925,000 people (about one-quarter of the state's population) are served by the Water Division on either a retail or wholesale basis. Retail customers use about 60% of the water sold, while the other 40% is provided on a wholesale contract basis to 20 water purveyors, which include cities, water districts, private water companies, and a people's utility district. Approximately 85% to 90% of water sales revenue comes from retail customers, and 10% to 15% is derived from wholesale contracts.

The Water Division has seven budget programs and 22 subprograms that encompass all of the bureau's work including:

Supply The focus of the Supply program is work associated with providing water to the Portland service area, including retail and wholesale customers. This program includes activities related to the City's primary Bull Run water supply as well as groundwater projects associated with the secondary wellfield system located in the Columbia South Shore area.

Transmission and Terminal Storage The Transmission and Terminal Storage program includes conveying water from the supply facilities in the Bull Run Watershed to the retail distribution system and service delivery points for wholesale customers. The activities included in this program are related to terminal reservoirs as well as conduits and transmission.

3 19 Portland Water Bureau Public Utilities Service Area

Treatment The Treatment program provides for meeting or exceeding the federal and state requirements for a public water system utilizing an unfiltered surface water source as well as a groundwater source. This program currently provides for the application of chlorine, ammonia, and sodium hydroxide, and associated regulatory and process control monitoring.

Distribution The Distribution program is responsible for providing water to customers through distribution mains and related facilities. The activities in the Distribution program include pump stations and tanks; distribution mains; services; meters; hydrants; valves, gates, and regulators; fountains; and field support.

Regulatory Compliance The Regulatory Compliance program is responsible for meeting regulatory standards, state or federal drinking water quality standards, proper disposal of dechlorinated water, and various monitoring requirements.

Customer Service The Customer Service program focuses on customer contact, billing and collection, conservation, security, grounds, and facilities.

Support The Support program includes the bureau-wide work supporting other programs, including planning, financial support, data management, and human resource functions.

Hydroelectric Power The Water Bureau's Hydroelectric Power Division is responsible for all aspects of Division the Portland Hydroelectric Project (PHP) operations. It is responsible for regulatory issues and power sales of three small hydroelectric projects and for dam safety of the Water Division's other two dams and open water reservoirs. These hydroelectric projects provide the region with clean, renewable energy while providing both the General Fund and the Water Fund with additional revenue. The PHP is located 25 miles east of Portland in the Bull Run Watershed and has a combined power generation capacity of 36 megawatts. The PHP project facilities include powerhouses adjoining the bureau's primary water supply dams and approximately ten miles of power transmission and communication lines that connect the PHP powerhouses with Portland General Electric's (PGE) electrical distribution system. The Hydroelectric Power Division, on behalf of the City, maintains a long-term power sales agreement with PGE that addresses PHP operations and maintenance and the sales of power generated. Most of the revenues supporting this division come from the sale of power generated at the PHP, and most of the expenses relate directly to administration and monitoring of that project.

City of Portland, Oregon – FY 2013-14 Requested Budget 20 Portland Water Bureau Public Utilities Service Area

The primary responsibilities of the Hydroelectric Power Division staff include:

‹ coordination with PGE on financial, operations, and repair issues relating to the PHP;

‹ ensuring compliance with all PHP regulatory requirements including surveillance, oversight, and reporting; and

‹ coordination of all PHP project financial matters including the administration of PHP's revenue bonds and related trust indenture requirements. Strategic Direction The strategic direction of the Portland Water Bureau in FY 2013-14 covers the following areas: Mayor's Utility Budget Guidance The Mayor provided budget guidance to the utility bureaus to use a modified zero- based budgeting approach. The Bureau followed the Mayors directive to submit a 90% current appropriation level (CAL) of its operating budget, with the remaining 10% as add packages. The Bureau has ensured that the most mission-critical functions and programs are included in the 90% base. The Bureau has submitted over $7.6 million of reductions to its Operating Budget and has requested $1.3 million in add back decision packages for City Council consideration. The add back decision packages include requests to continue the operation and maintenance of the Citys decorative fountains, retain a security specialist position to maintain flexible security coverage around the reservoirs, and add back OMF interagencies, from internal service bureaus. The Bureaus Requested Budget reflects the Mayor's priorities while minimizing overhead and administrative costs and preserve core services. Over the past several years, bureau managers and supervisors were instructed to reduce spending on a one-time basis in order to address shortfalls in revenue and demand projections. The 10% CAL reductions reflects a sustainable permanent reduction of $6,292,210 and 25.50 FTE in spending that managers and supervisors have made and adjusted to over the past two+ years. The proposed reductions will also have some service impacts and will reduce the Bureau's ability to respond to unforeseen events and expenditures. The specifics of service impacts and cost reductions are included in the budget submission. Forecast Retail Water Demand The Bureau continues to struggle with the financial impacts of declining retail water demand. A typical single family residential customer's current water usage is about 5 ccf per month. Overall water demand has been decreasing since FY 2003- 04 with more reductions in recent years. In addition to ongoing water conservation efforts and installations of new plumbing fixtures and appliances that are more and more water efficient with technological advances, the wetter weather in the springs and early summers of the past several years have further reduced water sales. Long-Term 2 Enhanced Surface Water Treatment Rule The Long Term 2 Enhanced Surface Water Treatment Rule (LT2) was issued by the Environmental Protection Agency (EPA) in January 2006. The purpose of the rule is to reduce illness linked with Cryptosporidiumand other pathogenic microorganisms in drinking water.

City of Portland, Oregon – FY 2013-14 Requested Budget 21 Portland Water Bureau Public Utilities Service Area

Compliance with LT2 impacts two separate parts of Portlands water system. First, the rule requires the City to provide additional treatment to its Bull Run supply to either remove or inactivate Cryptosporidium. In May 2009, City Council directed the Bureau to pursue ultraviolet (UV) treatment to inactivate the Cryptosporidium oocysts from raw Bull Run water if alternate compliance options proved unsuccessful. Second, the rule requires changes regarding how uncovered finished drinking water reservoirs are managed and operated. The rule mandates that water systems with uncovered finished drinking water reservoirs, like those at Mt. Tabor and Washington Parks, either cover the reservoirs or provide treatment at the outlets of the reservoirs to inactivate Cryptosporidium, Giardia and other pathogens. Cryptosporidium can enter surface water via human and animal fecal material. Surface water sources that are exposed to intensive human activities, pollution and animal wastes are likely to contain the parasite. The Portland City Council committed in January 2005 to pursue alternative forms of compliance for the LT2 Rule. Soon after, the City met with EPA officials to encourage the agency to alter the final rule so that it would include alternate approaches that would allow Portland to avoid building additional treatment. When that effort failed, the City filed a legal challenge to the rule in the Washington DC District Court of Appeals in early 2006. In November 2007 the Court issued a decision rejecting the Citys challenge and upholding the rule. In response to the court ruling, the City pursued parallel compliance strategies. Commissioner Randy Leonard directed the Bureau to plan and budget to achieve compliance with the source water sections of the LT2 Rule as written and pursue the variance provisions of the rule with EPA. Treatment In May 2009, the City Council voted to comply with the LT2 Rule with ultraviolet (UV) treatment if a treatment variance request was not approved. The bureau worked to complete an engineering design for a UV facility in 2010 and 2011 while it simultaneously worked to obtain a treatment variance to the rule that would enable it to avoid the expenses associated with constructing a new treatment facility. In December of 2010, the Bureau completed a year long sampling and data collection effort to support its request for a treatment variance. The Bureau submitted its treatment variance request to Oregon Health Authority (OHA) on June 6, 2011. On March 14, 2012, OHA issued a Final Order granting the City a variance to the treatment requirements of the LT2 Rule. The variance went into effect on April 1, 2012, and will be in effect for ten years if the city is able to meet a set of conditions designed to protect the health of Portland drinking water customers. These conditions require the Bureau to continue to monitor Bull Run source water for Cryptosporidium, maintain all legal protections in the Bull Run, and monitor and manage any potential sources for Cryptosporidium contamination in the Watershed. In the event of a first detection of Cryptosporidium, the Bureau is required to increase its monitoring efforts, coordinate with health officials to determine what, if any, impacts the detection may have, and communicate this information to its customers. If one or more detections occur during this one-year period of increased monitoring, it is likely that OHA will revoke the variance. Due to the Water Bureau’s success in achieving the treatment variance, the completed design for the UV facility will not be constructed and the capital requirements for the facility have been removed from the Five-Year Capital Improvement Plan and this Five-Year Preliminary Financial Plan.

City of Portland, Oregon – FY 2013-14 Requested Budget 22 Portland Water Bureau Public Utilities Service Area

Uncovered Finished Drinking Water Reservoirs The Bureau submitted and EPA approved a compliance plan to comply with the uncovered reservoir storage requirements of the LT2 Rule. The plan includes constructing an enclosed 50 million gallon storage reservoir at Powell Butte, increasing the storage capacity at Kelly Butte to 25 million gallons, replacing Washington Park Reservoir #3 with a 15 million gallon buried storage tank and constructing transmission pipes and other system improvements. The deadlines in the plan to disconnect Mt. Tabor and Washington Park open reservoirs from the drinking water system are December 31, 2015 and December 31, 2020, respectively. The City also sought a variance on the covered storage requirement of the rule. In December 2009, the EPA indicated that there were no variance provisions in the Safe Drinking Water Act that applied to uncovered finished drinking water reservoirs. However, in August 2011, in response to United States Senator Charles Schumer's request on behalf of New York City, the EPA agreed to review the regulation requiring covers on reservoirs. Soon after, Portland asked for an indefinite suspension of its compliance schedule to disconnect its uncovered reservoirs pending EPA's review of the LT2 Rule. OHA, after seeking guidance from EPA, responded to the Bureau that EPAs undertaking of a review of the LT2 Rule was not a proper basis for amending an existing approved schedule to comply with the Rule's uncovered reservoir requirements. In February 2012, the City asked for an opportunity to extend the Bureau's compliance schedule to disconnect the City's uncovered reservoirs pending the EPA's review of the LT2 Rule. The compliance schedule extension would have resulted in the Mt. Tabor and Washington Park reservoirs being disconnected from the drinking water system as of June 30, 2023 and June 30, 2025, respectively. On May 17, 2012, OHA denied the Citys request for an extension. The existing regulatory schedule to replace all uncovered storage by December 31, 2020 is therefore in effect and the Bureau is moving forward to complete the necessary projects to comply with this schedule. In early January 2013, Commissioner Novick placed the design contracts for the Washington Park Reservoir #3 improvements on hold pending a response from OHA to a second request by the Portland City Council for an extension of the LT2 reservoir compliance schedule. The request was sent in early February and a response is expected from OHA in sufficient time for the bureau to meet its compliance obligations if the second request is denied. Pending Lawsuit On December 6, 2011, Citizens for Water Accountability, Trust and Reform filed a lawsuit against the City alleging that the City improperly spent millions of dollars of utility ratepayer monies on projects that are unrelated to the utilities core functions. The lawsuit asked for an order that would require the City to reimburse the Water Fund and Sewage Disposal Fund for those expenditures. The Citys preliminary estimate is a combined maximum of about $50 million for both utility funds if all expenditures in question were determined to be inappropriate.

City of Portland, Oregon – FY 2013-14 Requested Budget 23 Portland Water Bureau Public Utilities Service Area

The renovation of the Rose Festival Building and maintenance of the Loos were among those expenditures identified in the lawsuit. In November 2012, the City Council authorized reimbursement of $1.6 million to the Bureau for these expenses. The Bureau has transferred the property and shifted the management of the Rose Festival Building to the General Fund. The ownership and maintenance of the Loos were transferred to Bureau of Environmental Services. The Five-Year Preliminary Financial Plan assumes no other reimbursements from the City to the Water Fund. Fluoride On September 12, 2012, the Portland City Council authorized and directed the Bureau to add fluoride to the City of Portland public water supply. The Bureau immediately began work on the planning, land use review and permitting needed to construct the fluoridation facility. Following Council’s decision, opponents of fluoridation filed a referendum petition to refer the decision to Portland voters. Portland City Code specifies that a referendum measure should be placed on the ballot at the next biennial primary or general election unless Council finds that public interest in a prompt resolution of the question outweighs the costs associated with a special election. In November, election officials determined that a sufficient number of valid signatures were collected within 30 days of the Council’s decision to place the issue on the May 2014 primary election ballot. All fluoride related activities were immediately stopped. In December, City Council passed a resolution to set the referendum on fluoridation on the May 2013 Special Election ballot. The cost to construct the fluoride facility is estimated at $5.0 million with annual operating cost of about $0.5 million. These costs are not currently in the Five-Year Capital Improvement Plan nor are they in the Five-Year Preliminary Financial Plan. Conservation Rate Structure Study As part of the approval from the State of Oregon Water Resources Department on the Citys Water Management and Conservation Plan (WMCP), the Bureau is required to perform a study of its conservation rate structure within 5 years of the approved plan. The City received the approval of its WMCP in May 2010. The Bureau is required to conduct a study that looks at conservation rate structure options and examines whether or not an alternative rate design would produce equal or greater water use efficiencies than currently obtained by the existing uniform rate structure. The Bureau has retained a consultant to perform the study. A Citizen Review Committee and a technical committee were utilized to assist the Bureau with the study. The City Review Committee was made up of citizens representing residential water users, institutional water users, large and small business owners, outdoor water users, and individuals with conservation and environmental interests. The technical committee was made up of staff from Water, Environmental Services, and Office & Management and Finance. A final report on the study is expected in Spring 2013 with a report to City Council. Budget Advisory Committee

City of Portland, Oregon – FY 2013-14 Requested Budget 24 Portland Water Bureau Public Utilities Service Area

The bureau's budget process includes a Budget Advisory Committee (BAC). The BAC met from October 2012 through January 2013 to review and provide input on the requested budget. The BAC unanimously supported the Bureau’s FY 2013-14 Requested Budget including "add back" decision packages, Five-Year Capital Improvement Plan and proposed retail rate increase of 7.8%. For more information refer to the BAC report submitted with the Requested Budget. Little Bear Creek House In the Requested Budget, the bureau has allotted 980 staff hours and $28,000 in miscellaneous services and operating supplies to make repairs to the Little Bear Creek House that is adjacent to the larger Bear Creek House. The Little Bear Creek House is in poor condition due to deferred maintenance. The plan is for a basic restoration to preserve the house and improve its functionality.

Portland Hydroelectric Project Operations Due to the age of the Portland Hydroelectric Project, there are currently a number of identified needs for repair or replacement of various elements of the PHP's equipment and facilities to keep operations safe and reliable. The required funding for this work is included in the Hydroelectric Power Division's FY 2013-14 budget. Summary of Budget Submission

Water Division The Water Division's budget of $203.1 million is composed of the operating budget Budget of $77.9 million and the capital budget of $125.2 million.

Operating Budget The operating budget of $77.9 million represents a decrease of $4.3 million from the FY 2012-13 Revised Budget of $82.2 million.

Capital Budget The capital budget of $125.2 million is a decrease of $12.4 million from the FY 2012- 13 Revised CIP Budget of $137.6 million. For additional information refer to the Capital Budget Section.

Staffing The FY 2013-14 Requested Budget funds 592.1 FTE. This includes three positions to be added back. There are two positions in the Decorative Fountain decision package and one position in the Security add back decision package. The requested 592.1 FTE also includes a permanent sustainable reduction of 22.5 FTE. For additional information on the staffing impact refer to the full BAC report.

Rate Increase The bureau's proposed average effective in-city retail rate increase is 7.8% for FY 2013-14. This increase includes funding the three add back decision packages for decorative fountains, security and OMF interagencies.

City of Portland, Oregon – FY 2013-14 Requested Budget 25 Portland Water Bureau Public Utilities Service Area

Hydroelectric Power The Hydroelectric Power Division's FY 2013-14 operating budget is $729,571. This Division Budget budget supports the Portland Hydroelectric Project's administrative and operational costs with power sales revenue that is specifically dedicated for that purpose.

Staffing The Hydroelectric Power Division's budget maintains 2.25 FTE positions in FY 2013-14. Capital Budget Capital Summary

CIP Highlights The Portland Water Bureau's (PWB) Five-Year Capital Improvement Plan (CIP) includes about $491 million in water system infrastructure needs for the five year period beginning in FY 2013-14 (FY 2013-14 dollars). The budget program framework structure consists of 7 primary budget programs that are the top level organizing elements in the City budget documents, and 22 water programs that further delineate the bureau's work and assets. For framework details and program descriptions, refer to the section titled "Capital Programs and Projects." Much of the CIP is for continuing improvements to the transmission and terminal storage system to comply with the Long Term 2 Enhanced Surface Water Treatment Rule (LT2). No additional surface water treatment improvements are needed as long as Portland is able to continue to meet a list of conditions set forth by Oregon Health Authority (OHA) as part of the Bull Run Treatment Variance. OHA has the authority for enforcing all safe drinking water requirements, including the LT2 rule, in Oregon and is still requiring the covering or replacement of the open reservoirs. The Transmission and Terminal Storage program is now about 39 percent of the CIP and the Distribution program is about 50 percent as it includes the Interstate facility improvement and Willamette River pipe crossing projects. Projects to meet bureau obligations of the Bull Run Habitat Conservation Plan (HCP), in the Regulatory Compliance program, constitutes about 5 percent, while Supply, Customer Service, Treatment and Admin & Support programs make up the remaining 6 percent. Notable projects include continuing modifications to the Bull Run Dam 2 outlet tower, rehabilitation of the Interstate maintenance facility, Willamette River crossing pipe, Fulton pump station improvements and completion of the city Emergency Coordination Center (ECC). CIP projects related to compliance with LT2 includes completing construction of a second 50 million gallon water storage tank at Powell Butte, continuing construction of the Kelly Butte replacement tank, beginning design of the Washington Park area storage and piping adjustments needed to disconnect the Mt Tabor open reservoirs.

City of Portland, Oregon – FY 2013-14 Requested Budget 26 Portland Water Bureau Public Utilities Service Area

Major Issues The FY 2013-18 CIP continues to balance longer term infrastructure replacement and maintenance needs, while addressing short-term water system infrastructure needs to ensure compliance with drinking water regulations. The CIP priorities for the bureau’s budget and capital program include:

‹ Support other governmental agency capital improvement projects (e.g., light rail, Sellwood Bridge, Columbia River crossing) as directed by City Council.

‹ Continue to expand the utilization of an asset management system plan and the computerized maintenance management system to support planning and implementation of system maintenance activities.

‹ Implement the Bull Run HCP, a comprehensive multi-decade Clean Water and Endangered Species Act compliance agreement for the Bull Run Watershed.

‹ Implement improvements necessary to assure compliance with current safe drinking water regulations, including LT2.

Changes from Prior PWB developed the FY 2013-18 CIP using the same budget process it has used for Year the past five years in response to the priorities identified by the City Council and key stakeholders. The CIP is more than $125 million for FY 2013-14 and totals about $491 million (FY 2013-14 dollars) over the entire five years. This CIP includes several new projects in the Distribution and Supply programs. These projects are visibly marked as "New" in the project descriptions. One of these projects is an interagency project with Bureau of Environmental Services (BES) which began in FY 2012-13 as a minor project. The Rose City Sewer project is now over $500,000 because of recent scope changes from BES and PWB has identified that it will be a new major project to finish next year. This CIP also contains three changes in major project total cost estimates. The Bull Run Dam 2 Tower project cost has decreased due to savings during the construction phase. The Washington Park project has increased its cost estimate following the completion of its Basis of Design Report which identified greater design complexity and seismic risks. The third project, Tabor Reservoir Adjustments, has reduced its total cost estimate because part of the original scope has become a separate new major project more consistent within the Distribution program (Division St. Piping).

Council Goals and In April 2012, City Council adopted the Portland Plan which declared that "we Priorities cannot make Portland prosperous, educated, healthy and equitable without providing reliable and quality basic services like public safety, clean water and clean sewer services." City Council has directed all City Bureaus to implement the Portland Plan Five- Year Action Plan and will evaluate the City’s progress using 12 Portland Plan Measures of Success. The three Measures most related to the CIP are listed below.

‹ By 2035, 70% of Portlanders take active transportation, transit or carpool to work or work from home.

‹ By 2035, 80% of Portlanders live in walkable, complete neighborhoods.

‹ By 2035, carbon emission levels are 50% below 1990 level. All PWB projects complete permit and planning processes which are integrated with the city’s vision of strong and vibrant neighborhoods. The bureau has participated in several CIP projects that support the addition and improvement of Portland’s public transit infrastructure the reduction in carbon emissions.

City of Portland, Oregon – FY 2013-14 Requested Budget 27 Portland Water Bureau Public Utilities Service Area

Criteria PWB’s methodology and criteria for the selection and ranking of capital projects depends on the magnitude of the project and duration of the project’s lifecycle. For major projects, an initial concept report is developed evaluating possible project alternatives and recommends those which need further capital undertaking. Senior management approves projects to continue with a larger planning effort to create a Basis of Design Report. To develop this report, PWB Planning section uses industry practices in cost benefit analysis and risk assessment to identify and weigh alternative solutions as well as a comparison with PWB service standards. PWB selects projects based on these quantitative analyses but also considers the logistics of rate increases, shared cost with interagency partners, revenue opportunities as well as regulatory requirements. The criteria used to select projects for inclusion in the budget include fulfilling service levels, such as those for maintaining pressure and limiting customer outages, operating assets at the most efficient and cost-effective levels, contributing to local and regional sustainability and energy-conservation goals, provide appropriate redundancy within the supply system, comply with all state and federal water-quality regulations, ensure access to key water-supply facilities, and coordinate with other agency infrastructure projects. Examples of six major new projects that fulfill these criteria include the following:

‹ The Bertha tank project connects pressure zones to maintain adequate service standards for pressure and to minimize water outages.

‹ The Raymond tank project reduces operating cost by eliminating a pump station, qualifies for Energy Trust incentives and meets city Conservation and Sustainability service standards.

‹ The Division St. Piping project enables the disconnection of the open reservoir required by LT2.

‹ The Carolina pump main project provides supply redundancy and supports customer service standards and allows PWB to coordinate with BES projects.

‹ Two Bull Run watershed road projects ensure that PWB meets service levels for roadway conditions to critical facilities. Capital Planning and Budgeting

Capital Planning PWB engages the public in developing its budget and the CIP.All PWB CIP projects Process that affect neighborhoods or that require city, state, and/or federal permit review processes include public involvement elements. The CIP is an annual planning process which allows a review of capital projects and programs. The Engineering Services Group (ESG) receives requests and ideas for CIP projects from a number of sources. Internal bureau stakeholders groups including Asset Management, Development Services, Design or Construction, Operations, Maintenance and Construction, and Resource Protection all may articulate the need for a capital project; projects generated from ESG CIP Planning Section listed in Master Plans or Public Facility plans; recommendations from the Asset Management group that include business case studies. In addition, PWB receives notifications from other agencies or bureaus planning or producing work that may impact the water system. External requests may also come from citizens, wholesale customers, the City Council, and developer requests for projects administered through ESG’s Development Services Branch.

City of Portland, Oregon – FY 2013-14 Requested Budget 28 Portland Water Bureau Public Utilities Service Area

City Comprehensive The city’s Comprehensive Plan recommends that PWB invests in maintaining and Plan developing water system resources The CIP supports the Comprehensive Public Facilities Plan by maintaining the city’s water infrastructure and developing new infrastructure in a responsive and efficient manner. To support business operations and resident comfort, capital projects provide emergency repairs, new services, replacement of aging assets as well as addition of improved or backup services to ensure long term expansion of neighborhoods and business centers. PWB supports energy efficiency policies through the industrial water conservation program, and through the planning and construction of capital facilities with sustainability as an important criterion. PWB also partners with other bureaus to support projects which develop or use alternative power sources to lower carbon emissions. PWB’s implementation of the Bull Run HCP is a multi-decade commitment to compliance with Clean Water and Endangered Species Act requirements for the Bull Run watershed. In addition, all water projects planned for construction that may impact environmentally sensitive locations inside the urban area include studies of the environmental review, recommendations for mitigation, and any necessary City and federal permit processes that apply, including environmental zone reviews and ESA consultations. Further, PWB’s Grounds and Parks program ensures that the grounds and landscaping around water facilities are neat and attractive. In the same way, the Fountains program provides drinking water and enhances the landscape to improve Portland's neighborhood livability.

Financial Forecast The CIP is an integral element in the development of the PWB's financial plan, Overview because the size of the CIP has a significant effect on water rates. The mix of projects in the CIP is also important. Projects related to supply and transmission enhancements serve both wholesale and retail customers alike, but costs for projects related to the distribution system can only be allocated to retail customers. Finally, the method chosen to finance projects affects rates as well. Specifically, the balance between debt, financed from bonds, and cash, obtained from water sales, affects the amount of money PWB must have on hand to cover the debt service, and the bond terms and structures. PWB staff has calculated the projected water rates for the five year financial forecast based on the CIP and O&M budgets and other factors affecting rates. Those factors include projected demand estimates, inflation factors, and other economic factors such as interest rates.

Retail Rate Impact The revenue forecasts refer to the costs that are expected to be recovered from water sales, regardless from whom they will be collected. The revenue requirements must be allocated between wholesale and retail customers to determine the specific customer class rate revenue impact. Wholesale customer contract provisions specify the method of allocating costs to wholesale customers. Retail rates are set on a residual cash basis to recover whatever portion of the total cash basis revenue requirements that is not allocable to wholesale customers. After deducting all other revenue sources, including wholesale revenues, the PWB's proposed average effective retail rate increase for FY 2013-14 is 7.8 percent.

City of Portland, Oregon – FY 2013-14 Requested Budget 29 Portland Water Bureau Public Utilities Service Area

Water Construction Fund Capital investments in the water system are funded through the Water Construction Fund (WCF). The WCF is financed from three major sources: transfers from the Water Fund (primarily water sales revenues), net proceeds from revenue bond sales, and construction fund revenues (direct capital reimbursements, system development charges, and interest earnings). These monies fund indirect capital costs (overhead and interest) as well as direct project costs. For this CIP, approximately 28 percent of capital requirements are funded with current resources, and the balance will come from bond proceeds. Cash/Water Sales Financing: The PWB has two debt service coverage planning standards for rate setting. The PWB's target minimum debt service coverage ratio is 1.90 on first lien bonds (1.25 per bond covenant) and the debt service coverage ratio on combined first and second lien bonds is 1.75 stabilized net revenue (1.10 per bond covenant). In managing the second lien-stabilized test, the PWB employs a rate stabilization account that also serves the dual purpose of a rainy day fund. Managing these two ratios together reflects the PWB's desire to optimize its capital financing strategies, thus maximizing its existing resources. Debt Financing: Pursuant to the city charter, state statutory authority, and City Council approval, the PWB may issue debt in the form of revenue bonds. By City Charter, the WCF is the recipient of net proceeds from bond sales to fund capital improvements. Bond reserves are deposited in the Water Sinking Fund. Between $170 to $175 million in revenue bonds, including a bond reserve, are scheduled to be sold in Spring, 2013. The PWB plans to issue revenue bonds approximately every two years to provide necessary debt financing for the capital program. WCF Revenues: The PWB's level of WCF revenues is determined mainly by the actions of external parties, with the majority of these revenues (in current dollars) coming from service and main installations ($2.7 million in FY 2013-14) and capital revenue from interagency projects ($1.5 million in FY 2013-14).

Capital Studies Non-Capital Expenses The CIP also includes a small portion of project expenditures that cannot be funded through the WCF. These expenditures generally fall into the grouping of capital studies, preliminary engineering, and other work that does not meet the capital criteria of a betterment, improvement, or addition to the water system as set forth by city policy or industry practice. The CIP includes about $3.2 million in FY 2013- 14 for work not eligible to be capitalized. The five-year total is $18.3 million. As an operating cost, these are 100 percent cash-financed, usually through water sales.

Asset Management The replacement value of PWB's assets are estimated close to $7 billion. Many of the and Replacement assets in the system are of an age that they can no longer be operated economically. Plans The goal of the Asset Management and Replacement Program is to recommend the most cost-effective ways to maintain, repair, or replace the bureau’s assets to meet the specified level of service.

City of Portland, Oregon – FY 2013-14 Requested Budget 30 Portland Water Bureau Public Utilities Service Area

At the heart of asset management is risk assessment. Risk assessment is an analysis of the likelihood and consequences of asset failure. The likelihood of failure analysis involves estimating the actual useful life of the asset using the designed capacities, operating environment, condition assessments, and other factors. The asset failure analyses takes into account the effects on the bureau’s budget, the environment and the community. The asset management plans provide specific strategies for proactively managing asset risk to ensure the longest possible useful life as well as the most practical replacement strategy. Key improvements that maximize pump station operations were a result of analyses conducted by the Asset Management group. For example, the bureau designated the most efficient pumps as lead pumps and made other improvements. In the first year, efficiencies realized at the pump stations reduced electricity consumption by approximately 1,000,000 kilowatt hours, which reduced electricity charges by an estimated $79,000 that year. Replacement of key system assets is one of the most important areas of the CIP budget. The Asset Management approach uses business case analyses to evaluate the benefits and costs of alternatives before the bureau makes an investment. In addition to the CIP, the operating budget includes a preventive maintenance and repair funding to accomplish immediate and routine maintenance. The bureau’s goals are to make criteria- and data-driven decisions to protect the public’s investment in its drinking water system. Capital Programs and Projects

Capital Program The CIP is categorized into seven program areas as described below. The listed Descriptions amounts in parentheses are for the entire five year period.

Customer Service Program Capital projects in the Customer Service program ($3.1M) address the need to improve security at critical PWB facilities and to make improvements to the bureau's grounds and parks. A major project in this program is the City Emergency Coordination Center.

Distribution Program The Distribution program ($244.2M) addresses the reliability and expansion of the piping, pumping and storage network that primarily distributes water from terminal storage reservoirs to retail customers. It addresses the ongoing installation and replacement need for 2,100 miles of distribution mains, including control valves, fire hydrants, and customer service connections, as well as pump stations, storage tanks, large diameter distribution system transmission mains, and pressure regulating stations. The program also provides for relocation and other adjustments to water pipes and facilities to accommodate transportation and other public infrastructure projects. Rehabilitation and improvement of decorative and drinking fountains and the replacement of the Interstate maintenance facility are also included in the program. Vehicle and equipment replacement and improvements to support facilities are also included in the program.

City of Portland, Oregon – FY 2013-14 Requested Budget 31 Portland Water Bureau Public Utilities Service Area

Regulatory Compliance and Water Quality Program The Regulatory Compliance and Water Quality program ($25.5M) includes improvements to the Bull Run water source. The program ensures that water throughout the water system meets federal and State of Oregon drinking water quality standards. This plan continues funding of the federally approved Habitat Conservation Plan (HCP).

Supply Program The Supply program ($14.3M) includes both the watershed areas and groundwater system. Projects in the Bull Run watershed address reliability of the PWB's principal water supply source. The program's objectives include maintaining the reliability of the water supply through effective management of the PWB's watershed assets. The Columbia South Shore Well Field (CSSWF) is Portland's second water source, augmenting Bull Run and serving as the region's backup water supply. The CSSWF enables the bureau to continue to serve customers when there is an interruption of the Bull Run surface supply. The Bull Run supply can be interrupted by major storm events that result in unacceptable levels of turbidity, drought conditions that restrict supply, conduit operation interruption, or other natural or human-caused events. The groundwater supply allows the bureau to continue to operate without constructing and operating a costly surface water filtration plant. The groundwater portion of the program focuses on maintaining the installed capacity and reducing vulnerability of the CSSWF. The work includes maintenance and improvements to wells, pumps, collection mains, and the disinfection treatment of groundwater. This CIP does not include major expansion of the CSSWF beyond the current capacity. This CIP funds projects to reduce the vulnerabilities in the Groundwater Pump Station as well as other projects to repair, replace and upgrade the groundwater supply system.

Support Program The Support program ($10M) addresses non asset specific work such as master planning and other similar support functions. Master planning focuses on identifying the need and timing of infrastructure acquisition or improvements and the most effective asset management strategies to maximize infrastructure investments. PWB has several studies planned in this CIP related to its tanks, pump stations and mains. These studies guide the selection and design of major capital projects for external construction as well as the many smaller mains constructed by PWB crews to reduce leaks.

Transmission and Terminal Storage Program The Transmission and Terminal Storage program ($191.2M) provides for the rehabilitation, replacement, and expansion of the primary transmission pipelines and terminal storage reservoirs that make up the supply backbone of the water system.

City of Portland, Oregon – FY 2013-14 Requested Budget 32 Portland Water Bureau Public Utilities Service Area

In FY 2009-10, work began on storage projects to achieve compliance with the LT2 rule as written. The rule requires that water systems with uncovered finished water reservoirs, like those at Mt. Tabor and Washington Park, either cover the reservoirs or provide treatment at the outlets of the reservoirs to inactivate Cryptosporidium, Giardia and viruses. A plan explaining the schedule and manner for bringing Portland into compliance with the covered storage requirements of the rule was approved by the EPA in March, 2009. The plan describes how the PWB intends to build additional and replacement enclosed drinking water storage and establishes deadlines for the disconnection of the Mt. Tabor (December 31, 2015) and Washington Park (December 31, 2020) uncovered reservoirs. On February 10, 2012 PWB sent a request to OHA for a schedule extension to delay the disconnection dates to 2024 and 2026. On May 17, 2012, OHA denied the PWB’s request for an adjustment. The decision by OHA means that Portland’s existing regulatory schedule to end the use of the uncovered reservoirs by December 31, 2020 remains in effect. In early January 2013, Commissioner Novick placed the design contracts for the Washington Park Reservoir #3 improvements on hold pending a response from OHA to a second request by the Portland City Council for an extension of the LT2 reservoir compliance schedule. The request was sent in early February and a response is expected from OHA in sufficient time for the bureau to meet its compliance obligations if the second request is denied.

Treatment Program Currently, this program funds only the design and construction of flow meters at Headworks to improve PWB's ability to comply with primary drinking water standards.

Funding Sources See the Financial Forecast Overview section above for an explanation of funding sources for the CIP.

Major Projects Customer Service The city Emergency Coordination Center is the sole major project in this program. This is a joint project with the Bureau of Internal Business Services/Facilities. PWB security staff will operate from this center with the Portland Bureau of Emergency Management (PBEM) and in the event of an emergency, all city coordination staff and will operate from this center.

Distribution There are 10 major projects in this program which is about 50 percent of the CIP. Construction will begin on the $12 million Fulton pump station replacement and will be completed on the 1.3 MG Forest Low tank. PWB will continue the pre- design of the Willamette River Pipe crossing. Construction continues on utility relocation in support of the Portland to Milwaukie Light Rail project, and the Interstate facility improvements. Construction will start on the next phase of the Carolina Pump Main Extension, replacement of the Fulton Pump Station, and Division St Piping.

City of Portland, Oregon – FY 2013-14 Requested Budget 33 Portland Water Bureau Public Utilities Service Area

Regulatory Compliance There are two major projects in this program both of which support the Bull Run Watershed HCP. The Dam 2 Tower multilevel intake project is scheduled to be operational in FY 2013-14 and will allow PWB to better control the release of water to enhance downstream conditions for anadromous fish species. Construction is also scheduled to be completed on the HCP Alder Creek project to enhance fish habitat. Other projects include funding for multiple conservation easements and fish habitat improvements.

Supply There are three major projects in this program to improve existing facilities in the Bull Run watershed and groundwater basins. Two are continuing road improvements for access to key water supply facilities. The remaining major project in this program reduces the risk of an extended electrical supply outage to the groundwater pump station

Support No major projects are proposed in this program which funds multi-year general engineering planning studies.

Transmission and Terminal Storage There are four major projects in this program that respond to the LT2 regulations that require the disconnection of unenclosed water storage facilities from the drinking water distribution system. PWB will complete construction of the second 50 million gallon (MG) water storage tank at Powell Butte, continue construction of the 25 MG tank at Kelly Butte, make adjustments at Mt. Tabor Reservoir and begin design of enclosed storage Washington Park.

Treatment Work related to adding fluoride to the city’s water supply has been halted, so the sole project in this program is the Headworks Flow Meters to accurately record treated water flow and regulate chemical additions to the system in compliance with drinking water regulations.

Net Operating and Operating and Maintenance (O&M) costs, when applicable, are estimated as part of Maintenance Costs the project feasibility studies and preliminary evaluations. The costs generally or Savings include labor, electricity or fuel, and chemicals. Changes in the cost of energy and chemical use are normally much easier to identify and estimate than labor or efficiency savings. Much of the CIP is dedicated to the ongoing renewal and replacement of the backbone water system, the pipes, valves, hydrants and other system appurtenances. These long life passive assets, typically buried and not visible, do not require much routine O&M. Following initial installation, only occasional specific maintenance is completed, such as pipeline flushing, verifying water control valve operation and fire hydrant flow testing. Furthermore, with 2,100 miles of pipe, more than 45,000 active valves, 14,000 hydrants and thousands of other appurtenances, it is clear that only a very small fraction of PWB's assets are renewed each year, and therefore there is no apparent change in O&M expense..

City of Portland, Oregon – FY 2013-14 Requested Budget 34 Portland Water Bureau Public Utilities Service Area

For example, the replacement of pipelines with a high frequency of leaks will result in reduced reactive O&M due to fewer leak repairs. However, the remaining distribution system continues to deteriorate such that the O&M budget cannot be appreciably reduced. Other infrastructure, such as a new pump station, would increase O&M costs as a result of energy consumption. Most improvements are to reconstruct existing facilities, so the net change in O&M expense is not significant. An example of a new facility is the ECC where the PWB portion of the annual building expense is estimated to be $300,000 when occupied, starting in FY 2013-14.

City of Portland, Oregon – FY 2013-14 Requested Budget 35 Portland Water Bureau Public Utilities Service Area tSupor&onitartsAnidmi Administration & Support

Description The Administration and Support program works to support the other programs in the bureau. Examples of this support include personnel training, data management, financial planning and accounting, and facilities services. This program is also responsible for meeting many Citywide responsible requirements, such as those related to budgeting, accounting, and human resources.

Goals This program supports the City goal of protecting and enhancing the natural and built environment, particularly with respect to providing safe drinking water. It also supports the City goal of promoting economic vitality and opportunity, especially providing high quality, affordable public utility services.

Performance PWB will provide a level of support that allows the bureau to maximize the efficiency and effectiveness of its direct services.

Changes to Services The Bureau will sustain a permanent reduction of about $1.9 million and 4.5 and Activities positions. This Program includes four Water Programs: Bureau Support, Data Management, Employee Investment and Planning. The majority of the reduction is in the Bureau Support Water Program, the budget has been reduced by $1.1 million and 2.5 positions. The Bureau reduced rental space in the Portland Building to save $103,000 by eliminating conference rooms and better utilization of vacant space from shrinking of the workforce over the past several years. Bureau of Technology Services interagency has been reduced and the bureau will obtain programming application support services by retaining flexible services contract to save about $55,000. About $110,000 has been reduced in repair and maintenance and Professional Services for Enterprise Content Management. Facilities Services Specialist in Property Management will be eliminated. The service impact is minimal since the position had completed organizing bureau property assets and the maintenance portion of the job can be absorbed within the section. A Management Assistant position will be eliminated in Public Involvement. The position served as the liaison to Commissioner Leonards office. Rather than a single point of contact with the New-Commissioner-In-Charge, the duties will be picked up by existing staff in Public Involvement as well as call center within Customer Service, Maintenance & Construction, Engineering, and Operations. A 0.50 FTE Office Support Specialist II position has been eliminated by reorganizing the work within Finance and Support Services. The Employee Investment Program was reduced by $325,000 and one position. A Program Specialist position will be eliminated and will require centralized duties currently performed by the position to be absorbed by the staff in all the Groups. The negative impact is limited time will be available for program development within the bureau. About $189,000 has been reduced in the apprentice training and safety. The reduction will significantly reduce funding for professional trainers to provide continuing education requirements for water distribution certifications; the Bureau will instead put greater emphasis on in-house experts to provide the trainings.

City of Portland, Oregon – FY 2013-14 Requested Budget 36 Portland Water Bureau Public Utilities Service Area

Requested No Actual Actual Revised DP Requested FTE & Financials FY 2010-11 FY 2011-12 FY 2012-13 FY 2013-14 FY 2013-14

FTE 197.70 201.10 179.70 173.60 173.60 Expenditures Bureau Support 13,885,844 13,579,225 18,837,074 19,336,847 19,767,008 Data Management 3,009,911 3,642,250 3,006,033 2,831,666 2,845,259 Employee Investment 2,089,378 2,445,647 4,239,431 3,127,466 3,127,466 Facilities 103,806 28,777 0 0 0 Planning (13,678,634) (13,388,818) 4,935,472 4,782,877 4,793,716 Total Expenditures 5,410,305 6,307,081 31,018,010 30,078,856 30,533,449

Actual Actual Yr End Est. Base Target Performance FY 2010-11 FY 2011-12 FY 2012-13 FY 2013-14 FY 2013-14

Effectiveness Pct of time bureau maintains Aaa rating for revenue bonds 100% 100% 100% 100% 100% Debt Service coverage at 1.90 on First Lien Bonds 2.42 2.39 1.90 1.90 1.90 Debt Service coverage at 1.75 on both First and Second Lien 1.90 2.00 1.75 1.75 1.75 Bonds Percent of budgeted CIP expended 94% 93% 100% 100% 100% Efficiency Percent of projects forecast to be completed within three months 97% 82% 80% 80% 80% of planned date

City of Portland, Oregon – FY 2013-14 Requested Budget 37 Portland Water Bureau Public Utilities Service Area ecivSreomCrteus Customer Service

Description The Customer Service program provides services for customers other than the direct supply of water. It includes customer billing, collection, and call center costs, which are the largest portion of the costs of this program. It also includes work on conservation, security, and grounds maintenance for bureau properties.

Goals This program supports the City goal of protecting and enhancing the natural and built environment, particularly with respect to providing safe drinking water. It also supports the City goal of promoting economic vitality and opportunity with respect to providing high quality, affordable public utility services.

Performance The Bureau's measures of program performance include:

‹ PWB will answer 80% of calls within 60 seconds.

‹ PWB will respond to 95% of customer inquires or requests within 5 days.

‹ PWB will maintain a target of 75% of customers giving high or very high ratings on Auditor's Survey.

‹ Forty percent of customer accounts will be paid electronically.

‹ Reduce the bureau's carbon emissions from 2007 levels.

‹ Increase the percent of energy use from new renewable sources from 2007 levels.

Changes to Services The Bureau will sustain a permanent reduction of $1,275,787 and 11 positions. This and Activities Program includes four Water Programs: Conservation/Sustainability, Customer Service, Grounds/Parks and Security/Emergency Management. The majority of the reduction is in the Customer Service Water Program. The budget has been reduced by about $715,000 and five positions. The elimination of four Customer Account Specialists will significantly hinder the ability to achieve the service level target of answering 80% of calls in 60 seconds and the elimination of a Water Service Inspector will minimize the ability to meet customers who have more complicated issues to resolve in the field. The large bill printer repair and maintenance contract will be reduced by $134,000, which means the bureau will no longer have a contract for 24/7 coverage on the printer. The postage budget has been reduced by $50,000 since postage rates are not increasing as anticipated and the Bureau plans to promote electronic billing more vigorously. The Multnomah County fixture repair program and income verification services have been reduced by $31,000 due to lower than expected participants, but the bureau will lose flexibility in the event participation in the Low Income Program grows. The Security/Emergency Water Program includes a reduction of about $312,000 and three positions. The elimination of a Water Security Ranger position will reduce the bureaus flexibility during certain shifts to respond to security issues at the open reservoirs at Washington Park or Mt. Tabor. The elimination of an Engineer and Engineering Tech II positions will reduce facility and response planning efforts, assistance with non capital improvement like facility maintenance, and security, such as ADA improvement and enhance security systems.

City of Portland, Oregon – FY 2013-14 Requested Budget 38 Portland Water Bureau Public Utilities Service Area

The Grounds/Parks Water Program includes a reduction of about $184,000 and three positions. The work reduction will be mitigated through hiring of seasonal employees and modifying the existing mowing schedule to still meet City nuisance ordinance.

Requested No Actual Actual Revised DP Requested FTE & Financials FY 2010-11 FY 2011-12 FY 2012-13 FY 2013-14 FY 2013-14

FTE 149.30 145.70 140.80 129.50 130.50 Expenditures Conservation/Sustainability 802,193 735,870 1,022,638 1,004,517 1,004,517 Customer Services 13,324,079 13,430,340 14,712,131 13,957,082 14,013,872 Fountains 2,910 0 0 0 0 Grounds/Parks 1,895,915 732,487 1,276,286 952,999 952,999 Security/Emergency Management 2,647,924 2,958,103 9,501,614 5,116,450 5,191,912 Total Expenditures 18,673,021 17,856,800 26,512,669 21,031,048 21,163,300

Actual Actual Yr End Est. Base Target Performance FY 2010-11 FY 2011-12 FY 2012-13 FY 2013-14 FY 2013-14

Effectiveness Percent of customers giving high or very high ratings on Auditor's 77% 75% 75% 75% 75% Survey Capacity of new renewable energy sources, kilowatts 279 290 400 400 400 Efficiency Percent of customer inquiries or requests responded to within five 99% 99% 95% 95% 95% business days Percent of calls answered within 60 seconds 54% 49% 80% 80% 80% Percent of customer accounts paid electronically 39% 45% 39% 39% 39% Bureau's annual carbon emissions, metric tons of CO2e 9,788 11,526 14,008 14,008 14,008

City of Portland, Oregon – FY 2013-14 Requested Budget 39 Portland Water Bureau Public Utilities Service Area onibutirtsDi Distribution

Description The Distribution program is primarily responsible for the conveyance of water from the terminal storage reservoirs through the customer meters. This program includes distribution mains, tanks, meters, services, hydrants, valves, gates, decorative fountains, and drinking fountains. This program is responsible for a wide variety of elements, such as tanks to store water and maintain system pressures, meters to accurately record usage for billing purposes, hydrants for fire protection and for line flushing purposes, and valves to alter or stop water flows under various circumstances such as line breaks or fire needs. A considerable portion of spending in this program is for system maintenance.

Goals This program supports the City goal of protecting and enhancing the natural and built environment, particularly with respect to providing safe drinking water. It also supports the City goal of promoting economic vitality and opportunity with respect to providing high quality public utility services.

Performance The program performance metrics include the following:

‹ No more than 5% of customers will be out of water for more than 8 hours a year.

‹ No customer will be out of water more than 3 times per year.

‹ PWB maintains a minimum service pressure of 20 pounds per square inch (psi) during normal demands 99% of the time.

‹ PWB will meet at least 80% of standards established for inspection, testing, repair and replacement of assets that are identified as medium, high or extreme risk.

‹ PWB will have more than 90% of flow control valves operate when needed.

Changes to Services The Bureau will sustain a permanent reduction of about $1.5 million and five and Activities positions. There are six Water Programs that are affected by these reductions: Distribution Mains, Field Support, Fountains, Meters, Pump Stations/Tanks and Valves/Gate/Regulators. The majority of the reduction is in Field Support, the budget has been reduced by about $926,000 which includes two manager positions to be eliminated. It also includes about $300,000 in professional technical expert services to provide staff training and elimination of the flagging contract. The bureau will put greater emphasis on training staff by utilizing internal expertise and using bureau staff to manage traffic control at job sites. The downside is this will create a larger crew size and cause skilled water system employees to perform traffic control functions. Operating supplies have been reduced by about $60,000 as a result of the Interstate facility renovation, and inventory reductions are necessary because of space reduction. The impact of this reduction is manageable, but once Stores is in the new location, the inventory base will need to be restored to ensure parts are available for work performed by the crews. The second largest Water Program reduction is in Pump Station/Tanks of about $269,000. Professional Technical Expert Services in office support staff of $55,000 has been eliminated. Operating supplies has been reduced by $80,000 which will restrict parts availability to quickly repair a pump station or tank depending. A reduction of $100,000 is proposed in pump station electricity to better align with lower water demand.

City of Portland, Oregon – FY 2013-14 Requested Budget 40 Portland Water Bureau Public Utilities Service Area

Requested No Actual Actual Revised DP Requested FTE & Financials FY 2010-11 FY 2011-12 FY 2012-13 FY 2013-14 FY 2013-14

FTE 226.00 214.00 225.00 217.00 219.00 Expenditures Distribution Mains 22,196,230 20,938,242 16,244,727 19,865,540 19,865,540 Field Support 5,826,910 10,336,664 25,296,276 20,656,621 20,866,216 Fountains 874,943 623,927 818,277 262,282 728,460 Hydrants 2,228,521 1,634,097 1,639,758 1,740,471 1,740,471 Meters 3,181,116 2,604,133 3,328,647 3,527,647 3,527,647 Pump Stations/Tanks 11,422,649 11,752,190 15,176,322 11,145,821 11,173,096 Services 6,953,979 8,803,399 5,692,974 5,681,231 5,681,231 Valves/Gates/Regulators 1,339,835 1,254,249 1,287,860 1,143,902 1,143,902 Total Expenditures 54,024,183 57,946,901 69,484,841 64,023,515 64,726,563

Actual Actual Yr End Est. Base Target Performance FY 2010-11 FY 2011-12 FY 2012-13 FY 2013-14 FY 2013-14

Effectiveness Customers out of water more than three times per year 6 0 0 0 Percent of flow control valves operational when needed 95% 97% 90% 90% 90% Percent of standards met for high risk assets 83% 88% 80% 80% 80%

City of Portland, Oregon – FY 2013-14 Requested Budget 41 Portland Water Bureau Public Utilities Service Area PowrecirtceloeHdry Hydroelectric Power

Description The Hydroelectric Power program provides for the administrative, operational, and regulatory oversight activities as required for the Portland Hydroelectric Project (PHP). Program staff members provide the day-to-day oversight and coordination for the operation of the PHP which includes the control of the levels in the City's Bull Run reservoirs, the withdrawal of water from those reservoirs, and the release of water downstream for compliance with in-stream regulatory flow targets. Additionally, the program coordinates all issues associated with the sales of generated power to PGE, the administration of the PHP's revenue bonds and related trust indenture requirements, and all state and federal regulatory requirements associated with both the PHP and the Mt. Tabor Hydroelectric Project.

Goals This program supports the City goal of delivering efficient, effective, and accountable municipal services. It also supports the City goal of protecting and enhancing the natural and built environment, particularly with respect to its oversight and coordination of dam safety issues and the ongoing operation of the PHP on the Bull Run River.

Performance In FY 2011-12, the amount of power generated by the PHP was 120% of its long- term annual average. For FY 2012-13, that generation is projected at 68% of average due to construction work at the Bull Run Dam No. 2 Intake Towers. During FY 2012-13, this program's staff will have provided all required oversight and support for the three hydroelectric power projects and the seven dams that it now oversees and monitors.

Changes to Services In FY 2012-13, Hydroelectric Power transferred $500,000 in Hydroelectric Power and Activities Operating Fund profits to the City's General Fund and in FY 2013-14 it will transfer $300,000.

Requested No Actual Actual Revised DP Requested FTE & Financials FY 2010-11 FY 2011-12 FY 2012-13 FY 2013-14 FY 2013-14

FTE 2.15 3.00 3.00 2.25 2.25 Expenditures Hydroelectric Power 556,523 518,150 878,328 725,887 729,571 Total Expenditures 556,523 518,150 878,328 725,887 729,571

Actual Actual Yr End Est. Base Target Performance FY 2010-11 FY 2011-12 FY 2012-13 FY 2013-14 FY 2013-14

Effectiveness Power Sold to PGE (mwh) 103,301 103,188 58,500 83,100 83,100 Efficiency Transfer of Hydropower Profits to General Fund $250,000 $300,000 $500,000 $300,000 $300,000

City of Portland, Oregon – FY 2013-14 Requested Budget 42 Portland Water Bureau Public Utilities Service Area encaCiomyplortaRgule Regulatory Compliance

Description The Regulatory Compliance program has the responsibility for meeting or exceeding all federal and state water quality requirements. It is also responsible for meeting other regulatory standards, including compliance with the Endangered Species Act, proper disposal of dechlorinated water, and various monitoring requirements.

Goals This program supports the City goal of protecting and enhancing the natural and built environment, particularly with respect to providing safe drinking water. It also supports the City goal of promoting economic vitality and opportunity with respect to providing high quality public utility services.

Performance PWB will have no violations of state and federal drinking water quality regulations. PWB will have no violations of environmental regulations (including NPDES permit requirements, Clean Water Act requirements, and Endangered Species Act requirements).

Changes to Services The Bureau will sustain a permanent reduction of about $602,000 and one position. and Activities A Water Quality Manager position has been eliminated. A total of $169,800 has been reduced from the LT2 variance sampling program. This reduces funding of the sampling program to the required 2x per week, but eliminates funding for increased sampling in the event of a positive crypto sample. If increased sampling is required, the bureau will use funds from the rate stabilization account or draw down on the minimum fund balance reserve which will have an adverse impact on future water rates to replenish the reserves. In the Backflow Monitoring subprogram, $50,000 has been reduced and staff needed to monitor more closely to ensure the bureau meet the Title 21 plumbing code regulations. Operating Supplies and Miscellaneous budget of about $137,000 has been reduced to better align the budget to actual and reflect an effort to maintain an on-going budget reduction from the previous two years.

Requested No Actual Actual Revised DP Requested FTE & Financials FY 2010-11 FY 2011-12 FY 2012-13 FY 2013-14 FY 2013-14

FTE 42.00 42.00 45.00 44.00 44.00 Expenditures Regulatory Compliance 11,814,873 10,921,427 29,927,491 14,046,178 14,048,750 Total Expenditures 11,814,873 10,921,427 29,927,491 14,046,178 14,048,750

Actual Actual Yr End Est. Base Target Performance FY 2010-11 FY 2011-12 FY 2012-13 FY 2013-14 FY 2013-14

Effectiveness Number of violations of state or federal drinking water quality 0000 standards Violations of environmental regulations 0 0 0 0

City of Portland, Oregon – FY 2013-14 Requested Budget 43 Portland Water Bureau Public Utilities Service Area ySupl Supply

Description The provision of water in the quantities desired by customers is a key portion of the mission of the bureau. The Supply program is responsible for providing the water that all customers use in the Portland service area, including both retail and wholesale customers. The program includes both water from the Bull Run watershed and water from the Columbia South Shore wellfield. In total, these systems supply water to a population of nearly 935,000 people and to businesses in the Portland area.

Goals This program supports the City goal of protecting and enhancing the natural and built environment, particularly with respect to providing safe drinking water. It also supports the City goal of promoting economic vitality and opportunity with respect to providing high quality public utility services.

Performance The Bull Run watershed provides 95% or more of the City's annual water supply under normal operating conditions.

Changes to Services The Bureau will sustain a permanent reduction of about $0.8 million and one and Activities position within the two Water Programs that makes up the Supply Program. In the Bull Run Watershed Water Program, a bus driver position has been eliminated plus a reduction of $90,000 in professional services by delaying and reprioritizing work. In the Groundwater Water Program the groundwater utility budget was decreased by $0.5 million to allow just sufficient funds for annual maintenance testing & analysis, and approximately 900 million gallons of supplemental supply for turbidity events. If additional funds are needed to operate groundwater, the bureau will use funds from the rate stabilization account or draw down on the minimum fund balance reserve which will have an adverse impact on future water rates to replenish the reserves.

Requested No Actual Actual Revised DP Requested FTE & Financials FY 2010-11 FY 2011-12 FY 2012-13 FY 2013-14 FY 2013-14

FTE 24.00 25.00 25.00 25.00 25.00 Expenditures Bull Run Watershed 5,076,534 3,905,152 3,194,527 3,470,072 3,470,072 Groundwater 3,004,980 2,329,932 2,941,575 2,110,080 2,110,080 Total Expenditures 8,081,514 6,235,084 6,136,102 5,580,152 5,580,152

Actual Actual Yr End Est. Base Target Performance FY 2010-11 FY 2011-12 FY 2012-13 FY 2013-14 FY 2013-14

Effectiveness Percent of city's water supply provided by Bull Run Watershed 96% 97% 95% 95% 95% under normal operating conditions

City of Portland, Oregon – FY 2013-14 Requested Budget 44 Portland Water Bureau Public Utilities Service Area geaorSt lnamreiT&onismnsairT Transmission & Terminal Storage

Description The Transmission & Terminal Storage program is for the conveyance of water from the supply sources to the City, including the terminal storage reservoirs at Powell Butte, Mt. Tabor, and Washington Park.

Goals This program supports the City goal of protecting and enhancing the natural and built environment, particularly with respect to providing safe drinking water. It also supports the City goal of promoting economic vitality and opportunity with respect to providing high quality public utility services.

Performance There will be no simultaneous conduit and/or transmission main outages that cause disruption of service to customers except in the case of natural vulnerability events that occur less often than once every hundred years or planned maintenance shutdowns.

Changes to Services The Bureau will sustain a permanent reduction of about $72,200 by reducing and Activities operating supplies within the Watershed and at Sandy River Station. This will reduce the bureau’s ability to enact large scale repairs such as the 2011 Red Barn slide so each emergency repair will be dealt with on an as needed basis.

Requested No Actual Actual Revised DP Requested FTE & Financials FY 2010-11 FY 2011-12 FY 2012-13 FY 2013-14 FY 2013-14

Expenditures Conduits/Transmission 3,795,480 1,566,575 959,306 1,258,453 1,258,453 Terminal Reservoirs 11,373,387 32,305,400 58,931,370 66,907,270 66,907,270 Total Expenditures 15,168,867 33,871,975 59,890,676 68,165,723 68,165,723

City of Portland, Oregon – FY 2013-14 Requested Budget 45 Portland Water Bureau Public Utilities Service Area mntearT Treatment

Description The Treatment program provides for meeting or exceeding the federal and state requirements for a public water system utilizing an unfiltered surface water source as well as a groundwater source. This program currently provides for the application of chlorine, ammonia, and sodium hydroxide, and associated regulatory and process control monitoring.

Goals This program supports the City goal of protecting and enhancing the natural and built environment, particularly with respect to providing safe drinking water. It also supports the City goal of promoting economic vitality and opportunity, especially providing high quality, affordable public utility services.

Performance The bureau's target is to have no violations of state and federal drinking water regulations.

Changes to Services The Bureau will sustain a permanent reduction of $180,000 in operating supplies. and Activities The chemical budget has been reduced to align with the reduced water demand and reflects actual spending based on the on-going effort to reduce costs.

Requested No Actual Actual Revised DP Requested FTE & Financials FY 2010-11 FY 2011-12 FY 2012-13 FY 2013-14 FY 2013-14

Expenditures Water Program Treatment 11,973,337 8,781,135 3,683,294 4,931,267 4,944,883 Total Expenditures 11,973,337 8,781,135 3,683,294 4,931,267 4,944,883

City of Portland, Oregon – FY 2013-14 Requested Budget 46 Portland Water Bureau Public Utilities Service Area Performance Measures

Percent of Calls Answered Within 60 Seconds The goal of the Call Center is to answer 80% of all calls within 60 seconds. Percent

Number of Customer Accounts Paid Electronically The bureau's goal is to receive 40% of all payments electronically. Percent

Number of Violations of State or Federal Drinking Water Quality Standards The bureau's goal is to have zero violations per year. Count

City of Portland, Oregon – FY 2013-14 Requested Budget 47 Portland Water Bureau Summary of Bureau Budget Public Utilities Service Area

Actual Actual Revised Requested No DP Requested FY 2010-11 FY 2011-12 FY 2012-13 FY 2013-14 FY 2013-14 Resources External Revenues Charges for Services 114,682,949 124,604,337 137,347,583 142,715,525 144,021,606 Intergovernmental 1,493,140 2,517,204 1,676,000 666,000 666,000 Bond & Note 86,534,273 282,195 214,518,817 0 0 Miscellaneous 5,014,862 6,179,120 5,334,744 5,338,656 5,338,656 Total External Revenues 207,725,224 133,582,856 358,877,144 148,720,181 150,026,262 Internal Revenues Fund Transfers - Revenue 125,289,058 143,097,681 210,317,304 224,198,819 224,198,819 Interagency Revenue 3,152,783 3,163,219 3,426,583 3,284,923 3,284,923 Total Internal Revenues 128,441,841 146,260,900 213,743,887 227,483,742 227,483,742 Beginning Fund Balance 114,021,135 157,334,929 88,621,718 233,886,685 233,886,685 Total Resources $450,188,200 $437,178,685 $661,242,749 $610,090,608 $611,396,689 Requirements Bureau Expenditures Personnel Services 56,469,860 57,981,091 64,698,075 65,293,778 65,591,733 External Materials and Services 18,169,478 15,847,267 26,495,947 23,991,657 24,227,502 Internal Materials and Services 18,528,964 20,767,886 20,823,625 19,966,338 20,742,303 Capital Outlay 32,534,321 47,842,309 115,513,764 99,330,853 99,330,853 Total Bureau Expenditures 125,702,623 142,438,553 227,531,411 208,582,626 209,892,391 Fund Expenditures Debt Service 33,517,065 36,368,944 43,211,362 52,456,708 52,456,708 Contingency 0 0 81,404,482 83,181,055 83,177,371 Fund Transfers - Expense 133,633,583 152,538,122 214,903,471 229,745,608 229,745,608 Debt Service Reserves 0 0 34,597,390 34,227,490 34,227,490 Total Fund Expenditures 167,150,648 188,907,066 374,116,705 399,610,861 399,607,177 Ending Fund Balance 157,334,929 105,833,066 59,594,633 1,897,121 1,897,121 Total Requirements $450,188,200 $437,178,685 $661,242,749 $610,090,608 $611,396,689 Programs Transmission & Terminal Storage 15,168,867 33,871,975 59,890,676 68,165,723 68,165,723 Administration & Support 5,410,305 6,307,081 31,018,010 30,078,856 30,533,449 Supply 8,081,514 6,235,084 6,136,102 5,580,152 5,580,152 Distribution 54,024,183 57,946,901 69,484,841 64,023,515 64,726,563 Regulatory Compliance 11,814,873 10,921,427 29,927,491 14,046,178 14,048,750 Treatment 11,973,337 8,781,135 3,683,294 4,931,267 4,944,883 Hydroelectric Power 556,523 518,150 878,328 725,887 729,571 Customer Service 18,673,021 17,856,800 26,512,669 21,031,048 21,163,300 Total Programs 125,702,623 $142,438,553 $227,531,411 $208,582,626 $209,892,391

City of Portland, Oregon – FY 2013-14 Requested Budget 48 CIP Summary Portland Water Bureau Public Utilities Service Area

This table summarizes project expenses by capital programs. Bureau Capital Program Revised Requested Capital Plan Project Prior Years FY 2012-13 FY 2013-14 FY 2014-15 FY 2015-16 FY 2016-17 FY 2017-18 5-Year Total

Customer Service Emergency Coordination Center 1,855,692 6,100,000 1,807,000 0 0 0 0 1,807,000 Security and Emergency 1,313,000 0 0 0 250,000 500,000 500,000 1,250,000 Management Total Customer Service 3,168,692 6,100,000 1,807,000 0 250,000 500,000 500,000 3,057,000

Distribution Bertha Service Area Improvements 0 0 430,000 426,000 0 0 0 856,000 Carolina PS Main Extension Phase 0 0 690,000 2,494,000 0 0 0 3,184,000 2 Distribution Mains 39,788,521 6,785,000 11,717,000 13,911,000 15,875,000 16,775,000 17,460,000 75,738,000 Division St Piping 0 0 1,480,000 200,000 0 0 0 1,680,000 Field Support 12,777,143 4,050,000 3,755,600 3,501,500 3,388,900 3,460,138 3,459,338 17,565,476 Forest Park Low Tank 1,197,665 5,570,000 2,210,000 0 0 0 0 2,210,000 Fountains 403,065 180,000 150,000 150,000 150,000 150,000 150,000 750,000 Fulton Pump Station Improvements 1,966,496 1,270,000 2,220,000 6,740,000 100,000 0 0 9,060,000 Hydrants 2,971,880 1,100,000 1,100,000 1,200,000 1,200,000 1,200,000 1,200,000 5,900,000 Interstate Facility Rehabilitation 4,884,083 16,250,000 12,377,000 16,248,390 6,138,422 560,000 0 35,323,812 Meters 5,359,638 1,700,000 1,700,000 1,590,000 1,800,000 1,800,000 1,800,000 8,690,000 Portland to Milwaukie Light Rail 354,080 1,340,000 1,100,000 0 0 0 0 1,100,000 Pump Stations and Tanks 6,347,090 420,000 500,000 510,000 1,480,000 1,098,000 1,415,000 5,003,000 Raymond Tank Supply 0 0 125,000 410,000 0 0 0 535,000 Improvements Rose City Sewer Rehabilitation 0 0 2,000 0 0 0 0 2,000 Services 16,060,341 3,900,000 4,000,000 4,000,000 4,000,000 4,000,000 4,000,000 20,000,000 Willamette River Pipe Crossing 181,988 200,000 460,000 2,600,000 5,000,000 20,000,000 28,540,000 56,600,000 Total Distribution 92,291,990 42,765,000 44,016,600 53,980,890 39,132,322 49,043,138 58,024,338 244,197,288

Regulatory Compliance Bull Run Dam 2 Tower 9,919,660 20,680,000 5,975,000 475,000 0 0 0 6,450,000 HCP Alder Creek Fish Passage 35,530 250,000 458,000 0 0 0 0 458,000 Water Quality and Regulatory 2,346,392 2,270,000 1,304,000 3,642,000 9,300,000 2,350,000 2,000,000 18,596,000 Compliance Total Regulatory Compliance 12,301,582 23,200,000 7,737,000 4,117,000 9,300,000 2,350,000 2,000,000 25,504,000

Supply Bull Run Watershed 23,567,610 250,000 380,000 780,000 2,500,000 2,750,000 2,000,000 8,410,000 Groundwater 2,380,200 740,000 300,000 450,000 450,000 500,000 500,000 2,200,000 Groundwater Electrical Supply 51,927 40,000 79,000 1,992,000 0 0 0 2,071,000 Improvements Road 10 MP 0.6-1.8 0 0 60,000 840,000 0 0 0 900,000 Road 1008 Paving 0 0 60,000 650,000 0 0 0 710,000 Total Supply 25,999,737 1,030,000 879,000 4,712,000 2,950,000 3,250,000 2,500,000 14,291,000

Support

City of Portland, Oregon – FY 2013-14 Requested Budget 49 Portland Water Bureau CIP Summary Public Utilities Service Area

This table summarizes project expenses by capital programs. Bureau Capital Program Revised Requested Capital Plan Project Prior Years FY 2012-13 FY 2013-14 FY 2014-15 FY 2015-16 FY 2016-17 FY 2017-18 5-Year Total Planning 2,333,768 1,500,000 1,500,000 1,500,000 2,000,000 2,500,000 2,500,000 10,000,000 Total Support 2,333,768 1,500,000 1,500,000 1,500,000 2,000,000 2,500,000 2,500,000 10,000,000

Transmission/Terminal Storage Conduits and Transmission Mains 14,887,168 190,000 425,000 8,500,000 12,600,000 5,000,000 7,000,000 33,525,000 Kelly Butte Reservoir 6,275,779 5,050,000 35,000,000 27,000,000 4,970,000 0 0 66,970,000 Powell Butte Reservoir 2 41,667,396 53,000,000 27,520,000 7,700,000 0 0 0 35,220,000 Tabor Reservoir Adjustments 344,838 300,000 225,000 1,140,000 1,990,000 0 0 3,355,000 Washington Park 724,476 150,000 3,600,000 2,300,000 2,900,000 19,300,000 24,000,000 52,100,000 Total Transmission/Terminal 63,899,657 58,690,000 66,770,000 46,640,000 22,460,000 24,300,000 31,000,000 191,170,000 Storage

Treatment Headworks Flow Meters 0 100,000 2,500,000 0 0 0 0 2,500,000 Total Treatment 0 100,000 2,500,000 0 0 0 0 2,500,000 Total Requirements 199,995,426 133,385,000 125,209,600 110,949,890 76,092,322 81,943,138 96,524,338 490,719,288

City of Portland, Oregon – FY 2013-14 Requested Budget 50 FTE Summary Portland Water Bureau Public Utilities Service Area

Revised Requested No DP Requested Salary Range FY 2012-13 FY 2013-14 FY 2013-14 Class Title Minimum Maximum No. Amount No. Amount No. Amount 30000062 Accountant I 39,312 56,514 1.00 56,520 1.00 56,520 1.00 56,520 30000063 Accountant II 51,397 64,688 3.00 176,046 3.00 184,340 3.00 184,340 30000064 Accountant III 56,597 71,178 1.00 71,184 1.00 71,184 1.00 71,184 30000434 Administrative Assistant 45,074 69,451 7.00 468,264 7.00 486,690 7.00 486,690 30000433 Administrative Specialist, Sr 41,974 64,626 3.00 159,648 3.00 166,013 3.00 166,013 30000436 Administrative Supervisor I 54,725 72,925 3.00 201,132 3.00 208,748 3.00 208,748 30000437 Administrative Supervisor II 57,450 76,586 1.00 76,800 1.00 79,116 1.00 79,116 30000203 Applications Analyst II-Generalist 59,342 79,123 1.00 71,412 1.00 73,811 1.00 73,811 30000204 Applications Analyst III-Generalist 65,478 87,422 3.00 241,008 3.00 249,885 3.00 249,885 30000207 Applications Analyst IV-Generalist 68,806 92,040 3.00 230,412 2.25 189,480 2.25 189,480 30000102 Automotive Equip Oper II: Sewer Vacuum 44,782 53,934 1.00 52,212 1.00 53,940 1.00 53,940 30000104 Automotive Equip Oper II: Tractor-Trailr 44,782 53,934 1.00 52,212 0.00 0 0.00 0 30000101 Automotive Equipment Oper I 42,182 51,126 12.00 567,900 12.00 598,480 12.00 598,480 30001583 Bus Driver 44,782 53,934 1.00 43,344 0.00 0 0.00 0 30000441 Business Operations Manager 75,109 100,048 1.00 100,332 1.00 103,344 1.00 103,344 30000442 Business Operations Manager, Sr 93,288 130,291 1.00 130,656 1.00 134,592 1.00 134,592 30000440 Business Operations Supervisor 66,602 89,107 1.00 89,352 1.00 92,052 1.00 92,052 30000449 Business Systems Analyst, Sr 63,378 84,635 3.00 250,056 3.00 260,694 3.00 260,694 30000331 CAD Analyst 63,606 81,245 1.00 78,648 1.00 81,240 1.00 81,240 30000328 CAD Technician I 39,083 52,354 1.00 50,688 1.00 52,356 1.00 52,356 30000329 CAD Technician II 52,354 66,810 5.00 323,340 5.00 334,080 5.00 334,080 30000330 CAD Technician III 63,606 81,245 1.00 71,280 1.00 76,160 1.00 76,160 30000454 Capital Improvmnt Program Planning Supvr 75,109 100,048 1.00 100,332 1.00 103,344 1.00 103,344 30000399 Capital Project Manager I 63,606 81,245 2.00 157,296 2.00 162,480 2.00 162,480 30000686 Capital Project Manager II 66,602 89,107 1.00 89,352 1.00 92,052 1.00 92,052 30000687 Capital Project Manager III 69,826 93,829 2.00 188,184 2.00 193,848 2.00 193,848 30000110 Carpenter 53,144 59,467 2.00 113,580 2.00 118,944 2.00 118,944 30000493 Community Outreach & Informtn Rep, Sr 60,341 80,475 2.00 147,876 2.00 154,638 2.00 154,638 30000107 Concrete Finisher 53,144 59,467 3.00 165,024 3.00 172,092 3.00 172,092 30000507 Conservation Program Coordinator, Sr 63,378 84,635 1.00 72,204 1.00 76,154 1.00 76,154 30000105 Construction Equipment Operator 44,907 57,346 18.00 996,324 18.00 1,032,014 18.00 1,032,014 30000455 Contracts Dev & Review Administrator 66,602 89,107 1.00 89,352 1.00 92,052 1.00 92,052 30000017 Customer Accounts Specialist I 34,923 50,357 44.00 2,047,937 40.00 1,960,350 40.00 1,960,350 30000018 Customer Accounts Specialist II 41,642 55,203 10.00 520,632 10.00 537,110 10.00 537,110 30000445 Customer Service Supervisor 63,378 84,635 7.00 552,636 7.00 575,713 7.00 575,713 30000732 Development Supervisor I 63,378 84,635 1.00 84,876 1.00 87,432 1.00 87,432 30000577 Economist, Principal 75,109 100,048 1.00 100,332 1.00 103,344 1.00 103,344 30000635 Electrical/Instrumentation Supervisor 69,826 93,829 1.00 94,092 1.00 96,924 1.00 96,924 30000116 Electrician 66,498 71,781 4.00 270,300 4.00 285,816 5.00 359,520 30000120 Electrician/Instrument Tech, Apprentice 44,387 71,781 2.00 112,440 1.00 71,784 1.00 71,784 30000121 Electrician/Instrument Technician 68,515 73,965 1.00 66,336 1.00 68,520 1.00 68,520 30000685 Engineer, Chief - Water Bureau 102,648 146,952 1.00 147,360 1.00 151,800 1.00 151,800 30000682 Engineer, Principal 93,787 125,070 7.00 863,340 7.00 890,844 7.00 890,844 30000680 Engineer, Sr 81,182 108,243 16.00 1,695,912 16.00 1,761,774 16.00 1,761,774 30000681 Engineer, Supervising 87,277 116,355 5.00 569,880 5.00 589,372 5.00 589,372 30000364 Engineer-Chemical/Environmental 83,616 101,629 2.00 176,596 2.00 188,028 2.00 188,028 30000365 Engineer-Civil 83,616 101,629 17.00 1,618,131 16.00 1,600,881 16.00 1,600,881 30000366 Engineer-Electrical 83,616 101,629 1.00 98,388 1.00 101,628 1.00 101,628 30000358 Engineering Associate, Sr-Civil 72,301 92,186 15.00 1,285,664 15.00 1,338,330 15.00 1,338,330 30000353 Engineering Associate-Civil 59,426 79,643 5.00 314,512 5.00 334,886 5.00 334,886

City of Portland, Oregon – FY 2013-14 Requested Budget 51 Portland Water Bureau FTE Summary Public Utilities Service Area

Revised Requested No DP Requested Salary Range FY 2012-13 FY 2013-14 FY 2013-14 Class Title Minimum Maximum No. Amount No. Amount No. Amount 30000355 Engineering Associate-Mechanical 59,426 79,643 1.00 77,112 1.00 79,644 1.00 79,644 30000696 Engineering Survey Manager 69,826 93,829 1.00 94,092 1.00 96,924 1.00 96,924 30000325 Engineering Technician II 52,354 66,810 10.00 626,508 8.00 532,926 8.00 532,926 30000326 Engineering Technician III 63,606 81,245 2.00 157,296 2.00 162,480 2.00 162,480 30000662 Environmental Program Coordinator 62,338 83,138 1.00 80,472 1.00 83,136 1.00 83,136 30000663 Environmental Program Manager 66,602 89,107 1.00 81,516 1.00 87,121 1.00 87,121 30000664 Environmental Program Manager, Sr 75,109 100,048 1.00 100,332 1.00 103,344 1.00 103,344 30000661 Environmental Program Specialist 54,725 72,925 2.00 126,612 2.00 133,104 2.00 133,104 30001908 Environmental Spec-Wildlife Biologist 63,606 81,245 1.00 61,572 1.00 63,612 1.00 63,612 30000339 Environmental Specialist-Generalist 63,606 81,245 5.00 355,142 5.00 374,042 5.00 374,042 30000338 Environmental Technician II 52,354 66,810 2.00 101,376 2.00 104,712 2.00 104,712 30000712 Facilities Services Specialist 54,725 72,925 1.00 54,876 0.00 0 0.00 0 30000567 Financial Analyst 57,450 76,586 2.00 126,600 2.00 134,820 2.00 134,820 30000566 Financial Analyst, Assistant 45,074 69,451 1.00 69,648 1.00 71,748 1.00 71,748 30000569 Financial Analyst, Principal 75,109 100,048 4.00 376,320 4.00 387,624 4.00 387,624 30000568 Financial Analyst, Sr 63,378 84,635 1.00 77,508 1.00 80,392 1.00 80,392 30000127 General Mechanic 48,235 60,091 2.00 117,776 2.00 120,192 2.00 120,192 30000341 GIS Technician I 39,083 52,354 1.00 50,688 1.00 52,356 1.00 52,356 30000342 GIS Technician II 52,354 66,810 6.00 375,372 6.00 392,514 6.00 392,514 30000343 GIS Technician III 63,606 81,245 2.00 149,928 2.00 157,400 2.00 157,400 30000373 Graphics Designer III 63,606 81,245 1.00 78,648 1.00 81,240 1.00 81,240 30000252 Horticulturist 45,406 54,850 1.00 53,100 0.00 0 0.00 0 30000657 Hydroelectric Power Project Manager 75,109 100,048 1.00 100,332 1.00 103,344 1.00 103,344 30000658 Hydroelectric Power Project Mgr, Asst 66,602 89,107 1.00 81,636 1.00 86,679 1.00 86,679 30000340 Hydrogeologist 72,134 91,998 1.00 86,614 1.00 92,004 1.00 92,004 30000114 Industrial Painter 53,144 59,467 3.00 173,350 3.00 178,416 3.00 178,416 30000115 Industrial Painter, Lead 55,765 62,421 1.00 59,304 1.00 62,424 1.00 62,424 30000603 Inf Syst Analyst IV(Supvr)-Gen 66,602 89,107 1.00 89,352 1.00 92,052 1.00 92,052 30000218 Inf Syst Analyst, Principal-Gen 77,584 103,355 1.00 93,276 1.00 99,703 1.00 99,703 30000239 Instrument Technician 66,498 71,781 7.00 476,220 6.00 430,264 7.00 503,968 30001408 Instrumentation & Security Systems Supvr 63,378 84,635 1.00 84,876 1.00 87,432 1.00 87,432 30001283 Laboratory Analyst II 47,278 62,379 4.00 238,680 4.00 249,258 4.00 249,258 30001284 Laboratory Analytical Specialist 53,893 71,552 2.00 110,269 2.00 116,742 2.00 116,742 30001285 Laboratory Coordinator 55,931 78,915 1.00 54,144 1.00 55,932 1.00 55,932 30000670 Laboratory Manager 75,109 100,048 1.00 83,100 1.00 88,233 1.00 88,233 30000644 Maintenance Planner/Scheduler 54,725 72,925 4.00 268,212 4.00 276,772 4.00 276,772 30000073 Maintenance Worker 24,482 29,016 2.00 56,160 2.00 58,032 2.00 58,032 30000451 Management Analyst 57,450 76,586 2.00 127,176 2.00 133,360 2.00 133,360 30000453 Management Analyst, Principal 75,109 100,048 2.00 200,664 2.00 206,688 2.00 206,688 30000452 Management Analyst, Sr 63,378 84,635 3.00 246,528 3.00 258,786 3.00 258,786 30000450 Management Assistant 45,074 69,451 6.00 336,612 5.00 286,222 5.00 286,222 30000693 Mapping & GIS Supervisor 69,826 93,829 1.00 89,652 1.00 94,242 1.00 94,242 30000978 Mapping Data Technician II 63,606 81,245 1.00 78,648 1.00 81,240 1.00 81,240 30000653 Mechanical Systems Supervisor-Water,Sr 69,826 93,829 1.00 94,092 1.00 96,924 1.00 96,924 30000012 Office Support Specialist II 32,552 46,758 6.00 275,892 5.50 257,028 5.50 257,028 30000013 Office Support Specialist III 41,642 55,203 3.00 151,587 3.00 157,569 3.00 157,569 30000152 Operating Engineer I 48,318 50,606 4.00 193,728 4.00 201,846 4.00 201,846 30000154 Operating Engineer III 51,210 66,186 13.00 832,884 13.00 860,496 13.00 860,496 30000759 Parks Maintenance Supervisor 57,450 76,586 1.00 67,644 1.00 70,160 1.00 70,160 30000081 Parks Technician 43,971 49,982 5.00 241,920 5.00 249,900 5.00 249,900

City of Portland, Oregon – FY 2013-14 Requested Budget 52 FTE Summary Portland Water Bureau Public Utilities Service Area

Revised Requested No DP Requested Salary Range FY 2012-13 FY 2013-14 FY 2013-14 Class Title Minimum Maximum No. Amount No. Amount No. Amount 30000398 Planner, Sr City-Water Resources 63,606 81,245 1.00 78,648 1.00 81,240 1.00 81,240 30000464 Program Coordinator 60,341 80,475 5.00 356,940 5.00 378,386 5.00 378,386 30000465 Program Manager 63,378 84,635 2.00 169,752 2.00 174,864 2.00 174,864 30000466 Program Manager, Sr 75,109 100,048 5.00 461,520 4.00 413,376 4.00 413,376 30000463 Program Specialist 54,725 72,925 2.00 128,004 1.00 58,076 1.00 58,076 30000462 Program Specialist, Assistant 45,074 69,451 3.00 186,912 3.00 195,771 3.00 195,771 30000698 Property Acquisition & Services Manager 63,378 84,635 1.00 84,876 1.00 87,432 1.00 87,432 30000497 Public Information Manager 69,826 93,829 1.00 87,828 1.00 90,789 1.00 90,789 30000495 Public Information Officer 63,378 84,635 1.00 64,800 1.00 68,580 1.00 68,580 30000691 Public Works Inspection Manager 66,602 89,107 1.00 89,352 1.00 92,052 1.00 92,052 30000228 Public Works Inspector 58,760 67,142 6.00 390,024 6.00 402,840 6.00 402,840 30000229 Public Works Inspector, Sr 63,731 75,088 3.00 218,088 3.00 225,252 3.00 225,252 30000630 Public Works Supervisor II 57,450 76,586 9.00 658,428 8.00 616,306 8.00 616,306 30000403 Remittance Technician 34,923 48,880 1.00 47,316 1.00 48,876 1.00 48,876 30000350 Right of Way Agent III 63,606 81,245 1.00 78,648 1.00 81,240 1.00 81,240 30000481 Risk Specialist 54,725 72,925 1.00 71,436 1.00 74,756 1.00 74,756 30000486 Safety & Risk Officer II 69,826 93,829 1.00 91,524 1.00 95,384 1.00 95,384 30000488 Security Program Manager 66,602 89,107 1.00 89,352 1.00 92,052 1.00 92,052 30000645 Security Supervisor 57,450 76,586 2.00 146,304 2.00 151,724 2.00 151,724 30000029 Service Dispatcher 34,923 50,357 2.00 100,704 2.00 100,704 2.00 100,704 30000054 Storekeeper/Acquisition Specialist II 44,554 54,475 3.00 158,184 3.00 163,440 3.00 163,440 30000056 Storekeeper/Acquisition Specialist III 50,315 62,566 1.00 60,576 1.00 62,568 1.00 62,568 30000468 Stores System Supervisor II 57,450 76,586 1.00 76,800 1.00 79,116 1.00 79,116 30000224 Surveying Aide II 47,694 55,515 2.00 102,048 2.00 110,364 2.00 110,364 30000695 Surveying Supvr/Water Rights Examiner 66,602 89,107 1.00 88,068 1.00 91,386 1.00 91,386 30000225 Surveyor I 54,475 67,704 2.00 119,184 2.00 135,408 2.00 135,408 30000226 Surveyor II 68,640 79,914 1.00 69,168 1.00 79,920 1.00 79,920 30001558 Timekeeping Specialist 34,986 50,274 2.00 80,400 2.00 87,976 2.00 87,976 30000531 Training & Development Analyst 57,450 76,586 1.00 57,612 1.00 59,340 1.00 59,340 30000532 Training & Development Officer 63,378 84,635 1.00 84,876 1.00 87,432 1.00 87,432 30001037 Utility Locator 48,672 52,354 6.00 300,552 5.00 261,780 5.00 261,780 30000076 Utility Worker I 41,621 45,282 7.00 303,240 5.00 226,440 5.00 226,440 30000077 Utility Worker II 45,282 48,672 35.00 1,642,344 35.00 1,696,752 35.00 1,696,752 30000075 Utility Worker II, Apprentice 34,070 45,032 12.00 409,041 12.00 485,577 12.00 485,577 30000438 Water Administrative Manager 69,826 93,829 1.00 94,092 1.00 96,924 1.00 96,924 30001534 Water Bureau Emergency Management Mgr 66,602 89,107 1.00 83,556 1.00 86,664 1.00 86,664 30000512 Water Conservation Program Coordinator 60,341 80,475 2.00 142,320 2.00 147,918 2.00 147,918 30000514 Water Conservation Program Manager 66,602 89,107 1.00 89,352 1.00 92,052 1.00 92,052 30000646 Water Consortium Conservation Pg Mgr 63,378 84,635 1.00 84,876 1.00 87,432 1.00 87,432 30000655 Water Group Manager 93,288 130,291 4.00 522,624 4.00 538,368 4.00 538,368 30000652 Water Maintenance Supervisor, Sr 69,826 93,829 3.00 279,276 3.00 290,514 3.00 290,514 30000133 Water Meter Reader I 37,357 47,445 12.00 520,040 12.00 564,316 12.00 564,316 30000134 Water Meter Reader II 45,781 53,706 1.00 48,414 1.00 51,117 1.00 51,117 30000142 Water Meter Technician I 43,722 52,894 4.00 204,864 4.00 211,584 4.00 211,584 30000143 Water Meter Technician II 55,765 60,611 6.00 352,080 6.00 363,672 6.00 363,672 30000654 Water Operations & Support Manager 86,840 117,686 1.00 110,964 1.00 117,042 1.00 117,042 30000145 Water Operations Mechanic 53,768 60,382 28.00 1,633,200 27.00 1,628,198 27.00 1,628,198 30000144 Water Operations Mechanic, Apprentice 41,642 56,514 7.00 355,904 7.00 389,440 7.00 389,440 30000651 Water Quality Inspection Supervisor 60,341 80,475 1.00 80,700 1.00 83,136 1.00 83,136 30000139 Water Quality Inspector I 48,734 63,003 1.00 51,814 1.00 56,560 1.00 56,560

City of Portland, Oregon – FY 2013-14 Requested Budget 53 Portland Water Bureau FTE Summary Public Utilities Service Area

Revised Requested No DP Requested Salary Range FY 2012-13 FY 2013-14 FY 2013-14 Class Title Minimum Maximum No. Amount No. Amount No. Amount 30000140 Water Quality Inspector II 51,210 66,186 5.00 320,340 5.00 330,960 5.00 330,960 30000141 Water Quality Inspector III 53,768 69,451 1.00 67,224 1.00 69,456 1.00 69,456 30001034 Water Quality Manager 86,840 117,686 1.00 107,316 0.00 0 0.00 0 30000647 Water Resource & Urban Affairs Coord 63,378 84,635 1.00 84,876 1.00 87,432 1.00 87,432 30000656 Water Resources Program Manager 66,602 89,107 1.00 78,072 1.00 82,899 1.00 82,899 30001860 Water Resources Program Mgr, Senior 75,109 100,048 1.00 98,508 1.00 103,034 1.00 103,034 30000138 Water Security Specialist 45,282 48,672 19.00 881,976 17.00 825,156 18.00 870,660 30000135 Water Service Inspector I 45,781 53,706 8.00 403,893 7.00 371,049 7.00 371,049 30000136 Water Service Inspector II 49,483 57,990 1.00 53,088 1.00 56,058 1.00 56,058 30000650 Water Treatment Operations Supervisor 69,826 93,829 1.00 94,092 1.00 96,924 1.00 96,924 30000147 Water Treatment Operator II 51,210 66,186 10.00 623,191 10.00 653,217 10.00 653,217 30000424 Water Utility Director 129,834 186,056 1.00 186,576 1.00 192,192 1.00 192,192 30000078 Water Utility Worker, Sr 45,989 51,126 1.00 49,488 1.00 51,132 1.00 51,132 30001081 Watershed & Conduit Supvr 69,826 93,829 1.00 91,272 1.00 96,924 1.00 96,924 30000149 Watershed Specialist I 39,707 48,672 4.00 179,772 4.00 194,688 4.00 194,688 30000151 Watershed Specialist II 45,989 51,126 2.00 98,976 2.00 102,264 2.00 102,264 30001308 Watershed Specialist III 54,829 61,464 2.00 119,016 2.00 122,928 2.00 122,928 TOTAL FULL-TIME POSITIONS 614.00 40,030,681 587.75 40,224,407 590.75 40,417,319 30000433 Administrative Specialist, Sr 41,974 64,626 0.90 26,964 0.85 56,372 0.85 56,372 30000017 Customer Accounts Specialist I 34,923 50,357 1.80 86,088 1.50 75,528 1.50 75,528 30000365 Engineer-Civil 83,616 101,629 0.90 88,548 0.50 50,820 0.50 50,820 30000451 Management Analyst 57,450 76,586 0.90 48,384 0.75 54,618 0.75 54,618 TOTAL PART-TIME POSITIONS 4.50 249,984 3.60 237,338 3.60 237,338 TOTAL LIMITED TERM POSITIONS 0.00 0 0.00 0 0.00 0 GRAND TOTAL 618.50 40,280,665 591.35 40,461,745 594.35 40,654,657

54 Fund Summary Water Construction Fund Public Utilities Service Area

Public Utilities Service Area Water Construction Fund Requested Actual Actual Revised No DP Requested Proposed FY 2010-11 FY 2011-12 FY 2012-13 FY 2013-14 FY 2013-14 FY 2013-14 Resources Charges for Services 1,321,238 1,505,931 1,250,000 1,500,000 1,500,000 Bond & Note 80,874,885 0 198,211,000 0 0 Miscellaneous 347,358 381,542 182,518 284,676 284,676 Total External Revenues 82,543,481 1,887,473 199,643,518 1,784,676 1,784,676 Fund Transfers - Revenue 26,955,364 19,648,305 22,686,865 37,240,995 37,240,995 Total Internal Revenues 26,955,364 19,648,305 22,686,865 37,240,995 37,240,995 Beginning Fund Balance 40,592,066 79,825,629 9,178,331 119,662,271 119,662,271 Total Resources 150,090,911 101,361,407 231,508,714 158,687,942 158,687,942 Requirements Total Bureau Expenditures 00000 Contingency 0 0 23,065,950 18,620,921 18,620,921 Fund Transfers - Expense 70,265,282 91,996,927 150,559,296 140,067,021 140,067,021 Total Fund Expenditures 70,265,282 91,996,927 173,625,246 158,687,942 158,687,942 Ending Fund Balance 79,825,629 9,364,480 57,883,468 0 0 Total Requirements 150,090,911 101,361,407 231,508,714 158,687,942 158,687,942 Fund Overview The Water Construction Fund is the capital fund of the Water Bureau. This fund pays for equipment and capital expenditures for the water system, including ongoing capital repair and replacement, enhancements, and large and nonrecurring additions to the system.

Managing Agency Portland Water Bureau Significant Changes From Prior Year

Bond Sales The Water Bureau plans on a $173.0 million bond sale in Spring 2013. The majority of those funds will be carried over in the beginning fund balance ($119 million) and will continue to fund capital expenditures for FY 2013-14. The operating fund will transfer $32.8 million for capital projects. The Construction Fund will reimburse the Operating Fund for direct capital costs ($122.1 million), capitalized overhead ($16.9 million) and capitalized interest ($814,000). The Construction Fund will also transfer $285,000 to the Sinking Fund for interest earned.

City of Portland, Oregon – FY 2013-14 Requested Budget 55 Fund Summary Water Fund Public Utilities Service Area

Public Utilities Service Area Water Fund Requested Actual Actual Revised No DP Requested Proposed FY 2010-11 FY 2011-12 FY 2012-13 FY 2013-14 FY 2013-14 FY 2013-14 Resources Charges for Services 113,361,711 123,098,406 136,097,583 141,215,525 142,521,606 Intergovernmental 555,794 1,106,998 476,000 566,000 566,000 Bond & Note 0 282,195 433,817 0 0 Miscellaneous 978,230 1,630,357 1,078,863 1,124,497 1,124,497 Total External Revenues 114,895,735 126,117,956 138,086,263 142,906,022 144,212,103 Fund Transfers - Revenue 70,005,926 91,921,338 150,525,420 139,802,345 139,802,345 Interagency Revenue 3,098,768 3,101,363 3,358,083 3,216,423 3,216,423 Total Internal Revenues 73,104,694 95,022,701 153,883,503 143,018,768 143,018,768 Beginning Fund Balance 49,769,357 48,311,400 49,003,411 67,884,490 67,884,490 Total Resources 237,769,786 269,452,057 340,973,177 353,809,280 355,115,361 Requirements Personnel Services 56,121,938 57,370,003 63,427,868 64,995,884 65,293,839 External Materials and Services 17,888,504 15,021,907 25,908,499 23,784,157 24,020,002 Internal Materials and Services 18,311,283 20,523,180 20,602,952 19,745,845 20,518,126 Capital Outlay 31,758,208 47,784,984 115,505,552 99,230,853 99,230,853 Total Bureau Expenditures 124,079,933 140,700,074 225,444,871 207,756,739 209,062,820 Debt Service 2,479,779 2,065,543 3,458,037 2,589,497 2,589,497 Contingency 0 0 48,385,812 54,243,809 54,243,809 Fund Transfers - Expense 62,898,674 60,100,967 63,684,457 89,219,235 89,219,235 Total Fund Expenditures 65,378,453 62,166,510 115,528,306 146,052,541 146,052,541 Ending Fund Balance 48,311,400 66,585,473 0 0 0 Total Requirements 237,769,786 269,452,057 340,973,177 353,809,280 355,115,361 Fund Overview The Water Fund is the operating fund of the Portland Water Bureau. With the exception of debt service, all expenditures are made from this fund for operation, maintenance, and capital assets. Receipts from the sale of water are the primary revenue source for the Water Fund.

Managing Agency Portland Water Bureau Significant Changes From Prior Year FY 2013-14 Water Fund resources increased by approximately $14.1 million from the FY 2012-13 Revised Budget. The changes in resources include increases in water sales and other water fees and charges of $6.4 million and beginning fund balance of $18.9 million. Decreases from prior year include $10.7 million for cash transfers and $153,000 in interagency revenues. The cash transfer decrease from the Water Construction Fund is a result of lower capital expenditures. Water sales receipts are the primary revenue source for the Water Fund. Increases in personnel services are lower this year due to budget reductions. These reduction mean that capital outlay, external and internal materials and services are lower than the FY 2012-13 Revised Budget. Cash transfers increased $14.1 million for cash financed capital and transfer for debt service payment increased $10.1 million with the planned sale in Spring 2013.

City of Portland, Oregon – FY 2013-14 Requested Budget 56 Fund Summary Water Construction Fund Public Utilities Service Area

Public Utilities Service Area Water Construction Fund Requested Actual Actual Revised No DP Requested Proposed FY 2010-11 FY 2011-12 FY 2012-13 FY 2013-14 FY 2013-14 FY 2013-14 Resources Charges for Services 1,321,238 1,505,931 1,250,000 1,500,000 1,500,000 Bond & Note 80,874,885 0 198,211,000 0 0 Miscellaneous 347,358 381,542 182,518 284,676 284,676 Total External Revenues 82,543,481 1,887,473 199,643,518 1,784,676 1,784,676 Fund Transfers - Revenue 26,955,364 19,648,305 22,686,865 37,240,995 37,240,995 Total Internal Revenues 26,955,364 19,648,305 22,686,865 37,240,995 37,240,995 Beginning Fund Balance 40,592,066 79,825,629 9,178,331 119,662,271 119,662,271 Total Resources 150,090,911 101,361,407 231,508,714 158,687,942 158,687,942 Requirements Total Bureau Expenditures 00000 Contingency 0 0 23,065,950 18,620,921 18,620,921 Fund Transfers - Expense 70,265,282 91,996,927 150,559,296 140,067,021 140,067,021 Total Fund Expenditures 70,265,282 91,996,927 173,625,246 158,687,942 158,687,942 Ending Fund Balance 79,825,629 9,364,480 57,883,468 0 0 Total Requirements 150,090,911 101,361,407 231,508,714 158,687,942 158,687,942 Fund Overview The Water Construction Fund is the capital fund of the Water Bureau. This fund pays for equipment and capital expenditures for the water system, including ongoing capital repair and replacement, enhancements, and large and nonrecurring additions to the system.

Managing Agency Portland Water Bureau Significant Changes From Prior Year

Bond Sales The Water Bureau plans on a $173.0 million bond sale in Spring 2013. The majority of those funds will be carried over in the beginning fund balance ($119 million) and will continue to fund capital expenditures for FY 2013-14. The operating fund will transfer $32.8 million for capital projects. The Construction Fund will reimburse the Operating Fund for direct capital costs ($122.1 million), capitalized overhead ($16.9 million) and capitalized interest ($814,000). The Construction Fund will also transfer $285,000 to the Sinking Fund for interest earned.

City of Portland, Oregon – FY 2013-14 Requested Budget 57 Fund Summary Water Bond Sinking Fund Public Utilities Service Area

Public Utilities Service Area Water Bond Sinking Fund Requested Actual Actual Revised No DP Requested Proposed FY 2010-11 FY 2011-12 FY 2012-13 FY 2013-14 FY 2013-14 FY 2013-14 Resources Bond & Note 5,659,388 0 15,874,000 0 0 Miscellaneous 82,643 102,489 60,374 118,483 118,483 Total External Revenues 5,742,031 102,489 15,934,374 118,483 118,483 Fund Transfers - Revenue 28,204,443 31,477,992 36,979,708 47,030,479 47,030,479 Total Internal Revenues 28,204,443 31,477,992 36,979,708 47,030,479 47,030,479 Beginning Fund Balance 10,321,463 15,961,566 15,961,566 31,552,598 31,552,598 Total Resources 44,267,937 47,542,047 68,875,648 78,701,560 78,701,560 Requirements Total Bureau Expenditures 00000 Debt Service 28,306,371 31,576,394 37,040,082 47,148,963 47,148,963 Debt Service Reserves 0 0 31,835,566 31,471,038 31,471,038 Total Fund Expenditures 28,306,371 31,576,394 68,875,648 78,620,001 78,620,001 Ending Fund Balance 15,961,566 15,965,653 0 81,559 81,559 Total Requirements 44,267,937 47,542,047 68,875,648 78,701,560 78,701,560 Fund Overview The Water Bond Sinking Fund pays for principal and interest on revenue bonds issued to finance water system improvements. The bond reserve accounts are maintained in the Water Bond Sinking Fund.

Managing Agency Portland Water Bureau Significant Changes From Prior Year The primary fund resource in FY 2013-14 is a transfer from the Water Fund of $46.8 million. The Water Construction Fund will provide a $265,000 transfer of interest earnings on bond proceeds. Additionally, interest in the Sinking Fund will total $118,000.

City of Portland, Oregon – FY 2013-14 Requested Budget 58 Portland Water Bureau

Capital Program Revised Requested Capital Plan Project Prior Years FY 2012-13 FY 2013-14 FY 2014-15 FY 2015-16 FY 2016-17 FY 2017-18 5-Year Total Customer Service

Emergency Coordination Center Total Project Cost: 9,763,000 Area: Southeast Dollars for Art: 0 Original Cost: 9,763,000 Objective: Replacement Project Description A two-year City/County planning effort determined that all emergency management programs should be at one location. This new center will be the hub for emergency services for PBEM and PWB. PWB's Security and Emergency Management staff will occupy the facility full time. During emergency activation, the City will coordinate response from this new center to manage the event. Construction began in FY2012-13 and will complete in FY2013-14. PWB is contributing about $10M towards the total project cost of $20M. The project funding is from a combination of net proceeds from revenue bond sales, water sales revenue and other construction fund revenues such as system development charges and interest earnings.

Total Expenditures 1,855,692 6,100,000 1,807,000 00001,807,000 Net Operations and Maintenance Costs 0 300,000 300,000 300,000 300,000

Security and Emergency Management Total Project Cost: Ongoing Area: Undetermined Maintenance Dollars for Art: 0 Original Cost: Ongoing Objective: & Repair Project Description The bureau is committed to increasing flexibility and preparedness to meet future security challenges, to enhance security throughout the water system and to modernize security practices and infrastructure. Projects funded by this budget will include physical security improvements to major and smaller facilities as well as improved security in the overall water distribution system and control/communications system. The project funding is from a combination of net proceeds from revenue bond sales, water sales revenue and other construction fund revenues such as system development charges and interest earnings.

Total Expenditures 1,313,000 0 0 0 250,000 500,000 500,000 1,250,000 Net Operations and Maintenance Costs 0 0 0 0 0

Distribution

NEW - Bertha Service Area Improvements Total Project Cost: 1,050,000 Area: Southwest Dollars for Art: Original Cost: Objective: Efficiency Project Description This project connects the Bertha 962 pressure zone with the 937 pressure zone with a new 8-inch and 4-inch main (~2,600 feet and 400 feet, respectively) and a new regulator. This work will allow for the abandonment of the existing main that passes through steep, unimproved right-of-way while maintaining an adequate level of service to the Bertha Service Area. The CLEM rating for this project is high. The project will allow PWB to meet service levels for service pressure and limit water outages. In FY 2013-14, the project will complete design and select a contractor. The project funding is from a combination of net proceeds from revenue bond sales, water sales revenue and other construction fund revenues such as system development charges and interest earnings.

Total Expenditures 0 0 430,000 426,000 0 0 0 856,000 Net Operations and Maintenance Costs

City of Portland, Oregon – FY 2013-14 Requested Budget 59 Portland Water Bureau Project Detail

Capital Program Revised Requested Capital Plan Project Prior Years FY 2012-13 FY 2013-14 FY 2014-15 FY 2015-16 FY 2016-17 FY 2017-18 5-Year Total

NEW - Carolina PS Main Extension Phase 2 Total Project Cost: 3,204,000 Area: Southwest Dollars for Art: Original Cost: Objective: Expansion Project Description This project will complete the design and construction of a 24" pump main from SW Chestnut St and SW Burlingame Ave to tie into the existing Carolina Pump main at SW Capitol Hwy and SW Terwilliger Boulevard. The project will provide supply redundancy for the entire Burlingame service area. The project schedule has been revised to enable coordination with projects proposed by BES and PBOT. In FY 2013-14, the project will begin construction. The project funding is from a combination of net proceeds from revenue bond sales, water sales revenue and other construction fund revenues such as system development charges and interest earnings.

Total Expenditures 0 0 690,000 2,494,000 0 0 0 3,184,000 Net Operations and Maintenance Costs

Distribution Mains Total Project Cost: Ongoing Area: Citywide Dollars for Art: 0 Original Cost: Ongoing Objective: Replacement Project Description The bureau is committed to improving maintenance of the water system infrastructure, including repairs, replacements and upgrades. This program supports rehabilitation and replacement of substandard mains; expansion due to private lands development; increasing supply for fire protection; improving water quality; and water system upgrades due to local improvement districts and street improvements. PWB uses a risk based, reliability centered approach to identify, catalog and prioritize projects to ensure minimal disruption to customers. Distribution main replacements also include appurtenances such as fire hydrants, valves, pressure regulators, service branches, and others facilities. Small projects, under $125,000, are normally completed by bureau personnel. Projects estimated to cost more than $125,000 are typically put out for bid. Many projects in this program provide for the relocation and adjustment of water facilities to accommodate storm drainage and sewer pipelines constructed by the BES, roadway configuration changes, pavement overlays, and bridge improvements for Portland Bureau of Transportation (PBOT) and the Oregon Department of Transportation (ODOT). Other bureaus reimburse a portion of the costs based on the age of the existing water facility. In FY 2013-14, PWB expects to work on about 50 distribution mains projects. These include the water facilities for SW Naito Parkway (construction), SW Grover St - Moody to Macadam (construction), Ostercraft Meadows Subdivision (construction), NE Grand Avenue Seismic Restraints (construction), and I-205 and NE Airport Way Interchange (design).The project funding is from a combination of net proceeds from revenue bond sales, water sales revenue and other construction fund revenues such as system development charges and interest earnings.

Total Expenditures 39,788,521 6,785,000 11,717,000 13,911,000 15,875,000 16,775,000 17,460,000 75,738,000 Net Operations and Maintenance Costs 0 0 0 0 0

NEW - Division St Piping Total Project Cost: 2,000,000 Area: Southeast Dollars for Art: Original Cost: Objective: Efficiency Project Description This project is needed to increase system reliability and supply between the Tabor 411 and Tabor 302 pressure zones and is one of the LT2 compliance projects to enable the disconnection of the uncovered reservoirs at Mt. Tabor. In FY 2013-14, the project will start construction. The project funding is from a combination of net proceeds from revenue bond sales, water sales revenue and other construction fund revenues such as system development charges and interest earnings.

Total Expenditures 0 0 1,480,000 200,000 0 0 0 1,680,000 Net Operations and Maintenance Costs

City of Portland, Oregon – FY 2013-14 Requested Budget 60 Project Detail Portland Water Bureau

Capital Program Revised Requested Capital Plan Project Prior Years FY 2012-13 FY 2013-14 FY 2014-15 FY 2015-16 FY 2016-17 FY 2017-18 5-Year Total

Field Support Total Project Cost: Ongoing Area: Citywide Maintenance Dollars for Art: 0 Original Cost: Ongoing Objective: & Repair Project Description This program funds the supplies, equipment and facilities that the bureau field crews use to maintain and operate the water system. The bureau’s fleet of construction equipment and vehicles are managed through this program. The project funding is from a combination of net proceeds from revenue bond sales, water sales revenue and other construction fund revenues such as system development charges and interest earnings.

Total Expenditures 12,777,143 4,050,000 3,755,600 3,501,500 3,388,900 3,460,138 3,459,338 17,565,476 Net Operations and Maintenance Costs 0 0 0 0 0

Forest Park Low Tank Total Project Cost: 7,451,000 Area: Southwest Dollars for Art: 0 Original Cost: 7,451,000 Objective: Expansion Project Description This project will plan, design and construct a single 1.3M gallon AWWA D110 type 1 tank. Tank replacement has been recommended by several studies because additional storage is needed in NW Portland. Space is also available for a future 1.3M gallon and a booster pump station if needed. In FY 2013-14, PWB will continue construction of the first tank. The project funding is from a combination of net proceeds from revenue bond sales, water sales revenue and other construction fund revenues such as system development charges and interest earnings.

Total Expenditures 1,197,665 5,570,000 2,210,000 00002,210,000 Net Operations and Maintenance Costs 0 0 0 0 0

Fountains Total Project Cost: Ongoing Area: Central City Maintenance Dollars for Art: 0 Original Cost: Ongoing Objective: & Repair Project Description Portland’s decorative fountains are among PWB's oldest signature assets. The bureau has been entrusted with the City’s decorative fountain infrastructure, including repairs, replacements and upgrades. This budget includes provision for repair of drain lines and valves, replacement of liners, repair and replacement of electrical equipment and lighting systems, repair and replacement of pumps, addition of telemetry, and various improvements to exterior surfaces. The project funding is from a combination of net proceeds from revenue bond sales, water sales revenue and other construction fund revenues such as system development charges and interest earnings.

Total Expenditures 403,065 180,000 150,000 150,000 150,000 150,000 150,000 750,000 Net Operations and Maintenance Costs 0 0 0 0 0

City of Portland, Oregon – FY 2013-14 Requested Budget 61 Portland Water Bureau Project Detail

Capital Program Revised Requested Capital Plan Project Prior Years FY 2012-13 FY 2013-14 FY 2014-15 FY 2015-16 FY 2016-17 FY 2017-18 5-Year Total

Fulton Pump Station Improvements Total Project Cost: 11,647,000 Area: Southwest Dollars for Art: 0 Original Cost: 11,647,000 Objective: Replacement Project Description This project will replace the Fulton Pump Station with a new pump station located in Willamette Park. The existing pump station is at high risk of failure. This project’s improvements are part of a system to serve approximately 15,000 Portland retail customers plus the City of Tigard and Lake Grove water district who are wholesale customers. The Land Use decision has been finalized so PWB will finish design and begin construction in FY 2013-14. The project funding is from a combination of net proceeds from revenue bond sales, water sales revenue and other construction fund revenues such as system development charges and interest earnings.

Total Expenditures 1,966,496 1,270,000 2,220,000 6,740,000 100,000 0 0 9,060,000 Net Operations and Maintenance Costs 0 0 0 0 0

Hydrants Total Project Cost: Ongoing Area: Citywide Dollars for Art: 0 Original Cost: Ongoing Objective: Replacement Project Description There are approximately 16,000 fire hydrants connected to the Portland water system. These hydrants allow Portland the flexibility and preparedness to meet the challenge of a fire emergency through coordination with the Fire Bureau. This subprogram replaces fire hydrants that are nonstandard or no longer repairable to increase efficiency. The project funding is from a combination of net proceeds from revenue bond sales, water sales revenue and other construction fund revenues such as system development charges and interest earnings.

Total Expenditures 2,971,880 1,100,000 1,100,000 1,200,000 1,200,000 1,200,000 1,200,000 5,900,000 Net Operations and Maintenance Costs 0 0 0 0 0

Interstate Facility Rehabilitation Total Project Cost: 49,383,000 Area: Central City Dollars for Art: 0 Original Cost: 49,383,000 Objective: Replacement Project Description The project rebuilds PWB’s main maintenance facility. Two new buildings will replace the eighty-five year old Maintenance Building that currently serves as the main office and warehouse. Site improvements to the 11 acre campus will improve vehicle and employee circulation. This project brings the property up to current code requirements for storm water management and landscaping. Deferrals to code-required site improvements had been granted over the last 15 years as small improvements were permitted. Time extensions have been exhausted and PWB is at risk of being cited for violations. About half of PWB's employees work at this facility and it is the center for bureau operations throughout the city. In FY 2013-14, PWB will finish construction of the first building and begin construction of the second facility. The project funding is from a combination of net proceeds from revenue bond sales, water sales revenue and other construction fund revenues such as system development charges and interest earnings.

Total Expenditures 4,884,083 16,250,000 12,377,000 16,248,390 6,138,422 560,000 0 35,323,812 Net Operations and Maintenance Costs 0 0 0 0 0

City of Portland, Oregon – FY 2013-14 Requested Budget 62 Project Detail Portland Water Bureau

Capital Program Revised Requested Capital Plan Project Prior Years FY 2012-13 FY 2013-14 FY 2014-15 FY 2015-16 FY 2016-17 FY 2017-18 5-Year Total

Meters Total Project Cost: Ongoing Area: Citywide Dollars for Art: 0 Original Cost: Ongoing Objective: Replacement Project Description The bureau has thousands of meters that monitor the quantity of water flowing through the system. PWB purchases about 8,500 meters annually, some when customers request a new water service. These meters are tools to effectively and efficiently manage the allocation of costs of service to public agencies, commercial enterprises and other non-residential customers. The bureau is also installing automated meter reading devices and non-skid access lids where applicable. The bureau objective is to maintain metering devices to read within 3% of actual values. The project funding is from a combination of net proceeds from revenue bond sales, water sales revenue and other construction fund revenues such as system development charges and interest earnings.

Total Expenditures 5,359,638 1,700,000 1,700,000 1,590,000 1,800,000 1,800,000 1,800,000 8,690,000 Net Operations and Maintenance Costs 0 0 0 0 0

Portland to Milwaukie Light Rail Total Project Cost: 3,184,000 Area: Southeast Dollars for Art: 0 Original Cost: 3,184,000 Objective: Mandated Project Description As part of PWB's partnerships with agencies in the region, PWB is contributing to the planning, design and relocation of over 5,000 feet of main and appurtenances for the Portland-Milwaukie Light Rail Transit. The project will create a light rail alignment that travels 7.3 miles, connecting Portland State University in downtown Portland, inner Southeast Portland, Milwaukie, and north Clackamas County. PWB will also assist in the production of the design for the SE Corridor Light Rail project. In FY 2013-14, PWB will continue to contribute construction staff and materials to the project to complete the project. It is scheduled to be operational in 2015. Water improvements in the project cost an estimated $7.1M, with the PWB betterment portion at $3.2M and TriMet is paying for remaining relocation expenses. The project funding is from a combination of grant funds, water sales revenue and other construction fund revenues such as system development charges and interest earnings.

Total Expenditures 354,080 1,340,000 1,100,000 00001,100,000 Net Operations and Maintenance Costs 0 0 0 0 0

Pump Stations and Tanks Total Project Cost: Ongoing Area: Citywide Dollars for Art: 0 Original Cost: Ongoing Objective: Replacement Project Description This program maintains a large variety of infrastructure consisting of water storage tanks, pumps, and pump and control facilities. The bureau uses a reliability centered maintenance (RCM) analysis to prioritize projects in these areas. The focus for this program continues to be the replacement of the remote telemetry units at over 140 remote sites. The existing units are over 15 years old, and are becoming obsolete. The project funding is from a combination of net proceeds from revenue bond sales, water sales revenue and other construction fund revenues such as system development charges and interest earnings.

Total Expenditures 6,347,090 420,000 500,000 510,000 1,480,000 1,098,000 1,415,000 5,003,000 Net Operations and Maintenance Costs 0 0 0 0 0

City of Portland, Oregon – FY 2013-14 Requested Budget 63 Portland Water Bureau Project Detail

Capital Program Revised Requested Capital Plan Project Prior Years FY 2012-13 FY 2013-14 FY 2014-15 FY 2015-16 FY 2016-17 FY 2017-18 5-Year Total

NEW - Raymond Tank Supply Improvements Total Project Cost: 610,000 Area: Southeast Dollars for Art: Original Cost: Objective: Efficiency Project Description This project will design and construct improvements at Raymond Tank Site and at the intersection of SE Holgate Boulevard and SE 136th Avenue. Project will reduce the pumping costs and O&M for the 138th center pump station as well as reducing PWB energy demands by a small amount. In FY 2013-14, the project will complete design and select the contractor. The project funding is from a combination of net proceeds from revenue bond sales, water sales revenue and other construction fund revenues such as system development charges and interest earnings.

Total Expenditures 0 0 125,000 410,000 0 0 0 535,000 Net Operations and Maintenance Costs

NEW - Rose City Sewer Rehabilitation Total Project Cost: 508,000 Area: Northeast Dollars for Art: Original Cost: Objective: Mandated Project Description The project will install 1,207 feet of 8 inch ductile iron main, 2 new hydrants and 39 new water services 2 inches or smaller. BES will be constructing a new sanitary sewer line in NE 57th Ave in the same location as the existing 8-inch cast iron water main, and they will be constructing a 60-inch manhole adjacent to the 8-inch cast iron water main in NE 60th Ave, both of which will require relocating the existing water mains. The original project estimate was under $300,000. BES has since changed scope and schedule requirements and the project total has increased. PWB will adjust the project amount during the Spring Budget Monitoring Process to add this as a new major project in FY 2012-13. PWB will complete the project in FY 2013-14. The project funding is from water sales revenue.

Total Expenditures 0 0 2,000 00002,000 Net Operations and Maintenance Costs

Services Total Project Cost: Ongoing Area: Citywide Maintenance Dollars for Art: 0 Original Cost: Ongoing Objective: & Repair Project Description A service is the connection between the water main and any given customer’s service meter. Service connections are always performed by bureau crews. This program funds installation and upgrade of about 1,000 water service connections annually. The funds facilitate construction of replacement water services requested by customers for new development as well as redevelopment. A fee is collected for new service requests to partially reimburse the bureau’s costs. The project funding is from a combination of net proceeds from revenue bond sales, water sales revenue and other construction fund revenues such as system development charges and interest earnings.

Total Expenditures 16,060,341 3,900,000 4,000,000 4,000,000 4,000,000 4,000,000 4,000,000 20,000,000 Net Operations and Maintenance Costs 0 0 0 0 0

City of Portland, Oregon – FY 2013-14 Requested Budget 64 Project Detail Portland Water Bureau

Capital Program Revised Requested Capital Plan Project Prior Years FY 2012-13 FY 2013-14 FY 2014-15 FY 2015-16 FY 2016-17 FY 2017-18 5-Year Total

Willamette River Pipe Crossing Total Project Cost: 57,000,000 Area: Central City Dollars for Art: 0 Original Cost: 57,000,000 Objective: Replacement Project Description The project provides for the replacement of major pipelines to strengthen the transmission link between Powell Butte and the service areas west of the Willamette River, including downtown and the storage reservoirs at Washington Park. The project will include construction of a new seismically strengthened river crossing to replace one or two of the existing Willamette River crossings, and new transmission piping on both sides of the Willamette River. Replacement of these major pipelines will help the bureau meet the effectiveness measure of providing adequate flow and reducing vulnerabilities. In FY 2013-14, PWB will continue with the design of the project. The project funding is from a combination of net proceeds from revenue bond sales, water sales revenue and other construction fund revenues such as system development charges and interest earnings.

Total Expenditures 181,988 200,000 460,000 2,600,000 5,000,000 20,000,000 28,540,000 56,600,000 Net Operations and Maintenance Costs 0 0 0 0 0

Regulatory Compliance

Bull Run Dam 2 Tower Total Project Cost: 36,316,000 Area: Citywide Dollars for Art: 0 Original Cost: 40,055,000 Objective: Efficiency Project Description This project will install steel multi-level intake structures on to one of the existing Dam 2 Towers located in the Bull Run watershed. The modifications to the Dam 2 Tower are required per the approved Bull Run Water Supply Habitat Conservation Plan (HCP), the City's 50-year regulatory compliance agreement for Clean Water Act and Endangered Species Act requirements. Dam 2 impounds the reservoir that contains nearly half of the total storage capacity of the Bull Run System. The project is particularly complex due to the remote location of the tower, the installation of the intake structure under 100 feet of water, and the requirement to maintain water quality both for fish and people during the entire project. The project total cost estimate has decreased due to expected contract savings. This project includes fish flow piping which was originally part of the UV treatment facility but has now been incorporated into this project. Construction of the project will complete in FY 2013-14. The project funding is from a combination of net proceeds from revenue bond sales, water sales revenue and other construction fund revenues such as system development charges and interest earnings.

Total Expenditures 9,919,660 20,680,000 5,975,000 475,000 0 0 0 6,450,000 Net Operations and Maintenance Costs 0 0 0 0 0

HCP Alder Creek Fish Passage Total Project Cost: 710,000 Area: Citywide Dollars for Art: 0 Original Cost: 710,000 Objective: Mandated Project Description This project will design and install two fish passage improvement as outlined in the Habitat Conservation Plan (HCP). Compliance with the federal Endangered Species Act (ESA) requires fish passage improvements throughout the Sandy River basin to mitigate PWB’s impacts to the Bull Run River (a tributary of the Sandy River). The project is in Alder Creek which is also a tributary to the Sandy River. The project will complete construction in FY 2013-14. The project funding is from a combination of net proceeds from revenue bond sales, water sales revenue and other construction fund revenues such as system development charges and interest earnings.

Total Expenditures 35,530 250,000 458,000 0000458,000 Net Operations and Maintenance Costs 0 0 0 0 0

City of Portland, Oregon – FY 2013-14 Requested Budget 65 Portland Water Bureau Project Detail

Capital Program Revised Requested Capital Plan Project Prior Years FY 2012-13 FY 2013-14 FY 2014-15 FY 2015-16 FY 2016-17 FY 2017-18 5-Year Total

Water Quality and Regulatory Compliance Total Project Cost: Ongoing Area: Undetermined Dollars for Art: 0 Original Cost: Ongoing Objective: Mandated Project Description The bureau recognizes the Bull Run watershed as a diverse ecosystem. The bureau is committed to preserving this habitat and complying with federal regulations using practical, locally driven solutions. Many of the projects in this subprogram respond to the Endangered Species Act (ESA), including the implementation of the Bull Run Habitat Conservation Plan (HCP) as adopted by City Council and approved by the National Marine Fisheries Service. Consistent with HCP commitments, this program funds easements, purchases land, and also supports projects jointly conducted with other watershed partners. The project funding is from a combination of net proceeds from revenue bond sales, water sales revenue and other construction fund revenues such as system development charges and interest earnings.

Total Expenditures 2,346,392 2,270,000 1,304,000 3,642,000 9,300,000 2,350,000 2,000,000 18,596,000 Net Operations and Maintenance Costs 0 0 0 0 0

Supply

Bull Run Watershed Total Project Cost: Ongoing Area: Undetermined Maintenance Dollars for Art: 0 Original Cost: Ongoing Objective: & Repair Project Description The Bull Run watershed is one of the most pristine drinking water sources in the United States. The bureau is committed to updating the Bull Run watershed protection and maintenance procedures and agreements based on the 2007 Bull Run agreement with the Mt Hood National Forest. Funds in this program maintain, improve, and protect the Bull Run watershed roads and facilities. Many of these facilities are between 50-70 years old.

In FY 2013-14, PWB will continue the formal federal process to enact a land exchange with the US Forest Service. The process is scheduled to be completed by the 3rd quarter of FY 2014-15. The proposed land exchange would convey approximately 2,800 acres of National Forest System land to the City of Portland in exchange for approximately 2,500 acres of City-owned lands within the BRWMU. The purpose of the proposed land exchange is to create a better alignment of land ownership responsibilities with the respective missions of the agencies. The proposed exchange would consolidate City holdings to lands surrounding the two water supply reservoirs and associated infrastructure. The USDA Forest Service would acquire forested uplands that are valuable for natural resource protection and ecosystem management. The project funding is from a combination of net proceeds from revenue bond sales, water sales revenue and other construction fund revenues such as system development charges and interest earnings.

Total Expenditures 23,567,610 250,000 380,000 780,000 2,500,000 2,750,000 2,000,000 8,410,000 Net Operations and Maintenance Costs 0 0 0 0 0

Groundwater Total Project Cost: Ongoing Area: Northeast Dollars for Art: 0 Original Cost: Ongoing Objective: Efficiency Project Description The Columbia South Shore Wellfield (CSSW) is Portland’s alternative supply of water should the Bull Run watershed supply be interrupted for any reason. Projects funded in this program improve the maintenance of this aging infrastructure, including repairs, selective replacements and upgrades. The project funding is from a combination of net proceeds from revenue bond sales, water sales revenue and other construction fund revenues such as system development charges and interest earnings.

Total Expenditures 2,380,200 740,000 300,000 450,000 450,000 500,000 500,000 2,200,000 Net Operations and Maintenance Costs 0 0 0 0 0

City of Portland, Oregon – FY 2013-14 Requested Budget 66 Project Detail Portland Water Bureau

Capital Program Revised Requested Capital Plan Project Prior Years FY 2012-13 FY 2013-14 FY 2014-15 FY 2015-16 FY 2016-17 FY 2017-18 5-Year Total

Groundwater Electrical Supply Improvements Total Project Cost: 2,200,000 Area: Northeast Maintenance Dollars for Art: 0 Original Cost: 2,200,000 Objective: & Repair Project Description Portland’s groundwater system is PWB's secondary system in case the Bull Run Watershed flows cannot meet flow demands or water standards. The 2000 PWB System Vulnerability Analysis and later reports identified a need to reduce vulnerability of electrical failures. This project designs and constructs a new 115kV/4160V transformer and other components to complete a double-ended electrical substation at the Groundwater Pump Station. It will also design and construct a 5kV main breaker replacement and purchase selected spare components. This project provides an installed spare transformer. Both transformers will carry about half the loads of the pump station. A manual switch will permit rapid transfer of loads from a failed transformer to the other. PWB will complete the design of the new transformer and other components in FY 2013-14. The project funding is from a combination of net proceeds from revenue bond sales, water sales revenue and other construction fund revenues such as system development charges and interest earnings.

Total Expenditures 51,927 40,000 79,000 1,992,000 0 0 0 2,071,000 Net Operations and Maintenance Costs 0 0 0 0 0

NEW - Road 10 MP 0.6-1.8 Total Project Cost: 930,000 Area: Undetermined Dollars for Art: Original Cost: Objective: Replacement Project Description This project consists of the design and construction of walls, widening, culverts and the repaving of a portion of the Bull Run 10 road. The remaining length of this road segment is in poor condition and currently is assigned an extreme business risk. This segment of Road 10 is listed as a Class A arterial that is the primary access to Headworks and Dam 2. This project is integral to meeting the programmatic service level to maintain roadway condition to standard. There was a 2011 project which improved a portion of this road segment, leaving the remaining 1.2 miles in poor condition. In FY 2013-14, this project will complete design. The project funding is from a combination of net proceeds from revenue bond sales, water sales revenue and other construction fund revenues such as system development charges and interest earnings.

Total Expenditures 0 0 60,000 840,000 0 0 0 900,000 Net Operations and Maintenance Costs

NEW - Road 1008 Paving Total Project Cost: 720,000 Area: Undetermined Dollars for Art: Original Cost: Objective: Replacement Project Description The project consists of the design and construct of an overlay for the Bull Run 1008 road. The 1008 road was reconstructed in 1998/99. The segment to be improved serves as PWB's primary backup for access to Headworks and other critical facilities. This road is plowed through the winter to maintain continued access. Addressing this segment before others avoids interference with ongoing construction activities scheduled through early 2014. This roadway section is currently rated as a high business risk. The surface condition has been raised as a concern by the Bull Run Safety committee. In FY 2013-14, the project will complete design. The project funding is from a combination of net proceeds from revenue bond sales, water sales revenue and other construction fund revenues such as system development charges and interest earnings.

Total Expenditures 0 0 60,000 650,000 0 0 0 710,000 Net Operations and Maintenance Costs

City of Portland, Oregon – FY 2013-14 Requested Budget 67 Portland Water Bureau Project Detail

Capital Program Revised Requested Capital Plan Project Prior Years FY 2012-13 FY 2013-14 FY 2014-15 FY 2015-16 FY 2016-17 FY 2017-18 5-Year Total Support

Planning Total Project Cost: Ongoing Area: Undetermined Dollars for Art: 0 Original Cost: Ongoing Objective: Efficiency Project Description This program consists of general planning studies for projects needed to improve the operation of the water system. These include pressure zone adjustments, facility modifications, and system element studies. In FY 2013-14, PWB will continue working on studies for assets such as the Mayfair tank, Rivergate pump station and tank, groundwater well sites, Council Crest tank, Portland Heights tanks and reviews of smaller mains to reduce leaks. PWB will also continue studies on topics such as water quality key stations, seismic improvements and water quality corrosion. The project funding is from water sales revenue.

Total Expenditures 2,333,768 1,500,000 1,500,000 1,500,000 2,000,000 2,500,000 2,500,000 10,000,000 Net Operations and Maintenance Costs 0 0 0 0 0

Transmission/Terminal Storage

Conduits and Transmission Mains Total Project Cost: Ongoing Area: Undetermined Maintenance Dollars for Art: 0 Original Cost: Ongoing Objective: & Repair Project Description The conduits that bring water to Portland from the Bull Run watershed are pipes 56 to 72 inches in diameter. This program funds repairs, replacements and upgrades to improve availability and accuracy of data from wholesale meters. Service to the City's wholesale customers is a key reason for the bureau's commitment to improve maintenance of this aging infrastructure. In future years, PWB plans to line 4-5 miles of conduits each year at an estimated cost of $4- $5 million dollars per mile. The project funding is from a combination of net proceeds from revenue bond sales, water sales revenue and other construction fund revenues such as system development charges and interest earnings.

Total Expenditures 14,887,168 190,000 425,000 8,500,000 12,600,000 5,000,000 7,000,000 33,525,000 Net Operations and Maintenance Costs 0 0 0 0 0

Kelly Butte Reservoir Total Project Cost: 78,245,060 Area: Southeast Dollars for Art: 0 Original Cost: 78,245,060 Objective: Mandated Project Description The purpose of this project is to increase storage capacity from 10MG to 25MG by replacing the existing tank with a buried reservoir. This includes site access, construction access and easements, staging areas, and on-site storage areas. This project establishes Kelly Butte as the water body that will be used for system pressure equalization and in-town terminal storage once the Mt Tabor open reservoirs are disconnected from the water system. Kelly Butte is part of the set of projects to comply with LT2 regulations concerning open reservoirs. In FY 2013-14, PWB will continue construction. The project funding is from a combination of net proceeds from revenue bond sales, water sales revenue and other construction fund revenues such as system development charges and interest earnings.

Total Expenditures 6,275,779 5,050,000 35,000,000 27,000,000 4,970,000 0 0 66,970,000 Net Operations and Maintenance Costs 0 0 0 0 0

City of Portland, Oregon – FY 2013-14 Requested Budget 68 Project Detail Portland Water Bureau

Capital Program Revised Requested Capital Plan Project Prior Years FY 2012-13 FY 2013-14 FY 2014-15 FY 2015-16 FY 2016-17 FY 2017-18 5-Year Total

Powell Butte Reservoir 2 Total Project Cost: 129,885,000 Area: East Dollars for Art: 0 Original Cost: 129,885,000 Objective: Mandated Project Description This project has been organized as two phases and Phase 1 (site preparation) has been completed. The project is currently in its second phase to construct a 50 million gallon buried reservoir at Powell Butte. The project consists of construction of the new reservoir, construction of a maintenance and storage facility, replacing the caretaker’s house, construction of an interpretive center and restrooms, reservoir overflow, park improvements and mitigation requirements as part of the City's conditions for approval for the project. In FY 2013-14, construction of the improvements will near completion and close work will begin. The project funding is from a combination of net proceeds from revenue bond sales, water sales revenue and other construction fund revenues such as system development charges and interest earnings.

Total Expenditures 41,667,396 53,000,000 27,520,000 7,700,000 0 0 0 35,220,000 Net Operations and Maintenance Costs 0 0 0 0 0

Tabor Reservoir Adjustments Total Project Cost: 3,600,000 Area: Southeast Dollars for Art: 0 Original Cost: 6,406,994 Objective: Mandated Project Description This project includes adjustments to piping, structures and other features at Mt. Tabor in order to move storage elsewhere and physically disconnect the open reservoirs from the public water system for compliance with LT2. This project does not include disposition of the reservoirs after they have been disconnected from the public water system. Disposition will be determined through a public process. This project's total cost has decreased mainly because the project has been divided into two. The other scope is more consistent with the Distribution program and so PWB has created the new Division St Piping major project (W01632). In FY 2013-14, PWB will continue design of the adjustments. The project funding is from a combination of net proceeds from revenue bond sales, water sales revenue and other construction fund revenues such as system development charges and interest earnings.

Total Expenditures 344,838 300,000 225,000 1,140,000 1,990,000 0 0 3,355,000 Net Operations and Maintenance Costs 0 0 0 0 0

Washington Park Total Project Cost: 67,125,000 Area: West Dollars for Art: 0 Original Cost: 61,132,686 Objective: Mandated Project Description This project will plan, design and construct a new buried reservoir to replace open Reservoir No. 3. This project is one solution toward compliance with LT2 replacement of the open reservoirs. It is assumed that Reservoir No. 4 will be used as the overflow detention structure. It is envisioned that the buried reservoir would be topped with a reflecting pond and historical features would be protected to retain its visual appeal. In FY 2012-13, PWB completed planning and revised the total project cost. In FY 2013-14, PWB will be working on the initial design of the reservoir. Construction is planned to be complete in 2019. The project funding is from a combination of net proceeds from revenue bond sales, water sales revenue and other construction fund revenues such as system development charges and interest earnings.

Total Expenditures 724,476 150,000 3,600,000 2,300,000 2,900,000 19,300,000 24,000,000 52,100,000 Net Operations and Maintenance Costs 0 0 0 0 0

City of Portland, Oregon – FY 2013-14 Requested Budget 69 Portland Water Bureau Project Detail

Capital Program Revised Requested Capital Plan Project Prior Years FY 2012-13 FY 2013-14 FY 2014-15 FY 2015-16 FY 2016-17 FY 2017-18 5-Year Total Treatment

Headworks Flow Meters Total Project Cost: 2,600,000 Area: Undetermined Dollars for Art: 0 Original Cost: 2,600,000 Objective: Replacement Project Description This project will install new flow meters on the Primary Intake conduits; install new flow meters and flow control valves on the Screenhouse #3 conduits; and also address the sump pump drainage system in the Bailey PRV vault. These improvements will ensure PWB is in compliance with drinking water rules and allow automated chemical addition. The project will also result in savings and potentially reduce disinfection byproduct formation. Present meters have an error rate up to 30%. Flow meters on both the Primary Intake and Screenhouse #3 will reduce instances of excessive or inadequate chlorine doses which are potential regulatory violations. In FY 2013-14, PWB will finish construction. The project funding is from a combination of net proceeds from revenue bond sales, water sales revenue and other construction fund revenues such as system development charges and interest earnings.

Total Expenditures 0 100,000 2,500,000 00002,500,000 Net Operations and Maintenance Costs 0 0 0 0 0

City of Portland, Oregon – FY 2013-14 Requested Budget 70

INTEROFFICE MEMORANDUM

DATE: February 1, 2013

TO: Ryan Kinsella - Financial Analyst

FROM: Jeff Winner – CIP Planning Supervisor

RE: Percent for Art

We have completed review of the Portland Water Bureau’s CIP program and the requirements of City Code Section 5.74.

Funding for PWB projects, and any PWB portion of shared projects, is derived from the water fund and water construction fund. The funds are exempt by ordinance in participation in Public Art.

Therefore the Water Bureau’s CIP is exempt from the percent for art program.

Page 1 of 1 The City of Portland will make reasonable accommodation for people with disabilities. Please notify us no later than five (5) business days prior to the event by phone 503-823-7404, by the City’s TTY at 503-823-6868, or by the Oregon Relay Service at 1-800-735-2900.

71 Intentionally Left Blank

72 Decision Package Summary

Bureau: Portland Water Bureau Priority: Type:

Decision Package: WA_01 - Decorative Fountains Program:Distribution

FY 2013-14 FY 2013-14 FY 2013-14 FY 2014-15 FY 2015-16 FY 2016-17 FY 2017-18 Requested Requested Requested Estimated Estimated Estimated Estimated 1 Time DP Ongoing DP Total DP Budget Budget Budget Budget

EXPENDITURES Personnel Services 0 227,599 227,599 0 0 0 0 0 External Materials and Services 0 235,845 235,845 0 0 0 0 0 Internal Materials and Services 0 2,734 2,734 0 0 0 0 0 Contingency 0 0 0 0 0 0 0 0 TOTAL EXPENDITURES 0 466,178 466,178 0 0 0 0 0 REVENUES Charges for Services 0 466,178 466,178 0 0 0 0 0 TOTAL REVENUES 0 466,178 466,178 0 0 0 0 0

FTE Full-Time Positions 0.00 2.00 2.00 0.00 0.00 0.00 0.00 0.00 TOTAL FTE 0.00 2.00 2.00 0.00 0.00 0.00 0.00 0.00

Description: This decision package proposes that the Water Bureau continues the operation and maintenance of the City’s 19 decorative fountains rather than transfer them back to the Parks Bureau. In 1988, City Council transferred the responsibility to operate and maintain the City’s decorative fountains from Parks to the Water Bureau. This proposed reduction reflects the Mayor’s directive that utility bureaus should ensure their most mission-critical functions and programs are included in the 90% base of the Operating Budget.

The revised decorative fountain subprogram is $466,178 with 2 FTEs. The add package will restore the program, but will still propose reducing Miscellaneous Services and Operating Supplies by $151,436. These reductions will restrict our ability to complete some repairs in a timely manner. For some severe failure modes, a decorative fountain may be out of service for an extended period. Personnel would not be dispatched on overtime to repair or get the fountains back into service. The revised fountain budget also reflects the lower sewer discharge fee of $0.001/ccf for decorative fountain drainage costs.

Portland Plan Linkage:

Objective #2 – Resident Satisfaction Objective: By 2035, 80 percent of Portlanders live in a complete neighborhood.

Objective #9 – Complete Neighborhood Objective: By 2035, 95 percent of Portlanders are satisfied with living in the city and in their neighborhood.

Expected Results: If this package is not approved then the bureau will eliminate servicing the decorative fountains. I

73 Decision Package Summary

Bureau: Portland Water Bureau Priority: Type:

Decision Package: WA_02 - Security Program:Customer Service

FY 2013-14 FY 2013-14 FY 2013-14 FY 2014-15 FY 2015-16 FY 2016-17 FY 2017-18 Requested Requested Requested Estimated Estimated Estimated Estimated 1 Time DP Ongoing DP Total DP Budget Budget Budget Budget

EXPENDITURES Personnel Services 0 70,356 70,356 0 0 0 0 0 Contingency 0 0 0 0 0 0 0 0 TOTAL EXPENDITURES 0 70,356 70,356 0 0 0 0 0 REVENUES Charges for Services 0 70,356 70,356 0 0 0 0 0 TOTAL REVENUES 0 70,356 70,356 0 0 0 0 0

FTE Full-Time Positions 0.00 1.00 1.00 0.00 0.00 0.00 0.00 0.00 TOTAL FTE 0.00 1.00 1.00 0.00 0.00 0.00 0.00 0.00

Description: This decision package proposes to restore one of the two Water Security Rangers that are proposed to be eliminated in the 90% CAL budget. This request will restore one position to provide greater nighttime presence at the Washington Park Reservoir and reduce the number of times security staff would otherwise be pulled away from the Mt. Tabor Reservoir.

Portland Plan Linkage:

Objective #2 – Resident Satisfaction Objective: By 2035, 80 percent of Portlanders live in a complete neighborhood.

Objective #9 – Complete Neighborhood Objective: By 2035, 95 percent of Portlanders are satisfied with living in the city and in their neighborhood.

Expected Results: The elimination of the second security position will cause additional reduction in flexibility and coverage on both the day and night shifts. Washington Park Reservoir #3 will be eliminated as T a fixed post on the night shift. This will be somewhat mitigated by periodic patrols. Reservoir #3 is currently open to the public from dawn to dusk. Reduced security coverage at the site will result in the need to consider year round fixed hours so that the park will be opened and closed in order to match the presence of security, 7:00 am to 7:00 pm. Rangers currently close and lock all vehicle gates at 10:00 pm throughout Washington Park for the Parks Bureau. This responsibility would be returned to the Parks Bureau. Security policy also will be modified at Mt. Tabor so that the ranger can be called away from the park at certain times on the night shift to respond to alarms and other critical needs as they arise.

74 Decision Package Summary

Bureau: Portland Water Bureau Priority: Type:

Decision Package: WA_03 - OMF Interagency Add Backs Program:various

FY 2013-14 FY 2013-14 FY 2013-14 FY 2014-15 FY 2015-16 FY 2016-17 FY 2017-18 Requested Requested Requested Estimated Estimated Estimated Estimated 1 Time DP Ongoing DP Total DP Budget Budget Budget Budget

EXPENDITURES Internal Materials and Services 0 769,547 769,547 0 0 0 0 0 Contingency 0 (769,547) (769,547) 0 0 0 0 0 TOTAL EXPENDITURES 0 0 0 0 0 0 0 0 Description: This request restores all the OMF interagency bureaus. The Water Bureau took a conservative approach on the Interagency “savings” and assumes that all of those interagency reductions will be approved as “add” packages by the City Council in various water programs.

Expected Results: Whatever interagency costs do not get added back will result in a commensurate reduction in the Water Bureau’s operating budget and a lower requested rate increase. W

75 Intentionally Left Blank

76 Water Bureau

Management Data Workforce Data Commissioner in Charge: Steve Novick Minorities: 18.20% Bureau Director: David Shaff Female: 31.6% Website: http://www.portlandonline.com/water/ Non-Represented: 27.4% Administration: 5.6% Span of Control: 6.6 positions per supervisor M/W/ESB Contract $: 25.7% Prime & 40.4% Sub Management Layers: 1 to 6

Resource and FTE Summary FY 2012-13 FY 2013-14 FY 2013-14 FY 2013-14 FY 2013-14 Adopted Base Reductions Add Packages Requested Beg Fund Bal $88,621,718 $233,886,685 $0 $0 $233,886,685 Charges for Svc 137,347,583 142,715,525 0 1,306,081 144,021,606 Intergovernmental 476,000 666,000 0 0 666,000 Interagency Rev 3,376,583 3,284,923 0 0 3,284,923 Fund Transfer 209,811,953 224,198,819 0 0 224,198,819 Bong/Note Proce 214,085,000 0 0 0 0 Misc Revenue 5,326,532 5,338,656 0 0 5,338,656 Total Revenues $659,045,369 $610,090,608 $0 $1,306,081 $611,396,689 FTE 619.5 591.350.00 3.00 594.35

Bureau Overview and Significant Issues The Mayor provided budget guidance to the utility bureaus to use a modified zero-based budgeting approach. The Bureau followed the Mayor’s directive to submit a 90% current appropriation level (CAL) of its operating budget, with the remaining 10% as add packages. The Bureau has ensured that the most mission-critical functions and programs are included in the 90% base. The Bureau has submitted over $7.6 million of reduction to its Operating Budget and has requested $1.3 million in “add back” decision packages for City Council consideration. The “add back” decision packages include a request to continue the operation and maintenance of the City’s decorative fountains, retain a security specialist position to maintain flexible security coverage around the reservoirs, and add back OMF interagency from internal service bureaus. The Bureau’s Requested Budget reflects the Mayor’s priorities to preserve core services while minimizing overhead and administration.

The 10% CAL reductions reflect a sustainable permanent reduction in spending that managers and supervisors have made and adjusted to over the past two+ years to address shortfall in revenue and demand projections. However, the proposed reductions will also have some service impacts and will reduce the Bureau’s ability to respond to unforeseen events and expenditures. The specifics of service impacts and cost reductions are included in the budget submission.

10% CAL Permanent Reductions Add Backs Reductions Requested Budget Programs Budget FTE Budget FTE Budget FTE Budget FTE Supply (814,284) (1.0) (814,284) (1.0) 4,701,152 21.2 Transmission & Terminal Storage (72,203) - (72,203) - 1,395,723 7.0 Treatment (180,000) - (180,000) - 2,444,883 10.9 Distribution (2,060,631) (7.2) 573,907 2.0 (1,486,724) (5.2) 20,609,963 132.0 Regulatory Compliance (601,728) (0.8) (601,728) (0.8) 6,311,750 33.3 Customer Service (1,488,626) (11.8) 212,839 1.0 (1,275,787) (10.8) 19,356,300 122.9 Support (2,380,820) (4.8) 519,335 (1,861,485) (4.8) 23,043,449 111.6 Bureau Total (7,598,291) (25.5) 1,306,081 3.0 (6,292,210) (22.5) 77,863,220 438.9

77

31 30 29

28

27

26 Million CCF 25 24 23 FY 2003-04 FY 2004-05 FY 2005-06* FY 2006-07 FY 2007-08 FY 2008-09 FY 2009-10 FY 2010-11 FY 2011-12 FY 2012-13 FY 2013-14 FY 2014-15 FY 2015-16 FY 2016-17

Forecast Actual

*Pow ell Va lle y Roa d W a te r Distrct

The typical single family residential customer water usage per month has been steadily declining since FY 2013-04, in part because residential customers are routinely practicing active and passive water conservation. As customers purchase less water, there is a corresponding rate increase due to proportionally fewer units sold. The Bureau has instituted under-spending of the Operating Budget by 5% due to the expected revenue shortfall.

Operating and Capital Requirements FY 2011-12 FY 2012-13 FY 2013-14 FY 2013-14 FY 2014-15 Actuals Adopted Base Request Estimate Operating - Base $71,845,870 $87,013,199 $83,373,026 $84,682,791 $88,511,712 Operating - One-Time Initiatives 00000 Capital - New Construction 29,802,364 59,100,000 68,193,000 68,193,000 41,528,000 Capital - Major Maintenance 40,790,319 76,770,000 57,016,600 57,016,600 69,421,890 Debt Service 36,368,944 42,777,545 52,456,708 52,456,708 0 Fund Transfers – Expenses 152,538,122 214,915,487 229,745,608 229,745,608 244,675,608 Contingency 0 84,277,115 83,181,055 83,177,371 84,000,000 Unappropriated Ending Balance 105,833,066 94,192,023 36,124,611 36,124,611 39,337,982 Total $445,944,522 $659,045,369 $610,090,608 $611,396,689 $628,150,900

Overview of Major Projects and Initiatives Powell Butte Reservoir 2: This project was organized into two phases. Phase 1 (site preparation) has been completed. Phase Two is the construction of the 50 million gallon buried reservoir at Powell Butte and will be completed this year.

Bull Run Dam 2 Tower: This project will install multi-level intake structures onto the existing Dam 2 Tower located in the Bull Run watershed. The modifications to the Dam 2 Tower are required per the approved Bull Run Water Supply Habitat Conservation Plan (HCP). The structure is scheduled to be operational in FY 2013-14.

Interstate Facility Rehabilitation: Two new buildings will replace the 85 year old Maintenance Building that serves as the main office and warehouse where about one-half of PWB employees work.

Kelly Butte Reservoir: The purpose of this project is to increase storage capacity from 10MG to 25MG by replacing the existing tank with a buried reservoir. The existing tank has been demolished and excavation for the replacement is underway. Major Assets Managed 5 Years Ago Current 5 Years From Now Percent in Good Condition 52.0% 52.0% 55.0% Percent in Fair Condition 36.0% 33.0% 38.0% Percent in Poor Condition 13.0% 16.0% 7.0% Major Maintenance Backlog $12.5 M/yr $17.2 $17.2 Replacement Value Total Estimate $3.6B $6.9 $7.3

78 Water Bureau Program Summary Template

8. Program 3. Staff (FTE) 4. Requirements 6. Resources 1. Program Title Rankings 5. Percent Manager 2. Program Description Federal, 7. Output, Outcome, or Efficiency Measure(s) Limited Admin General Rates, Fees & Phone # Regular Operating Capital State & Other Core Community Term Fund IAs Local Bull Run Watershed Provide primary potable water source for the Portland utility water Measure Title: Percent of the City's annual water Steve Schenk system and its customers. supply provided by Bull Run Watershed under 503-823-9919 16.74 - 2,970,072 500,000 2,970,072 500,000 normal operating conditions. 11 FY 2011-12 Actual: 97.0% FY 2013-14 Target: > 95% Treatment The Treatment Program provides for meeting or exceeding the Measure Title: Number of violations of state or Steve Schenk federal and state requirements for a public water system utilizing an federal drinking water regulations. 503-823-9919 unfiltered surface water source as well as a groundwater source. FY 2011-12 Actual: 0 12.00 - 2,444,883 2,500,000 2,444,883 2,500,000 22 This program currently provides for the application of chlorine, FY 2013-14 Target: 0 ammonia, and sodium hydroxide, and associated regulatory and process control monitoring. Conduits/Transmission To transport water from the watershed and well field to reservoirs, Measure Title: Number of simultaneous conduit Steve Schenk Washington County supply line and tanks throughout the city. and/or transmission main outages that cause 503-823-9919 6.17 - 833,453 425,000 833,453 425,000 disruption of services. 33 FY 2011-12 Actual: 100% FY 2013-14 Target: 95% Terminal Reservoirs Provide for the primary storage points of water in town for the Measure Title: Violations of state and federal Danny Allison distribution system and wholesale customers. These include the large drinking water quality regulations. 503-823-1567 storage reservoirs at Powell Butte, Mt Tabor, Kelly Butte and FY 2011-12 Actual Actual: 0 Washington Park, as well as terminal storage tanks located at FY 2013-14 Target: 0 Mayfair and Sam Jackson tank sites. 34.12 - 562,270 66,345,000 562,270 66,345,000 44 Measure Title: Maintain minimum service pressure of 20 pounds per square inch (psi) during normal demands. FY 2011-12 Actual Actual: 100% FY 2013-14 Target: 100% Distribution Mains Transport water to customers from terminal reservoirs through mains Measure Title: Customers out of water more Ty Kovatch to local storage, and then through mains to customer services and than three times per year. 503-823-1508 hydrants. FY 2011-12 Actual: 0 FY 2013-14 Target: 0 70.29 - 3,761,540 16,004,000 3,761,540 16,004,000 55 Measure Title: Time from main break notification to shutdown is less than 2 hours for any significant leak. FY 2011-12 Actual: not available FY 2013-14 Target: 100% Pump Stations/Tanks Ensure adequate and available water supply and storage within all Measure Title: Percent of time minimum service Danny Allison parts of the water distribution system. Ensure sufficient in-town pressure of 20 psi maintained during normal 503-823-1567 storage throughout the system. 33.41 - 6,243,096 4,930,000 6,243,096 4,930,000 demands. 66 FY 2011-12 Actual: 99.997% FY 2013-14 Target: 99% Customer Service Through Water Customer Services, accurately maintain, process, and Measure Title: Percent of customer inquiries or Dave Mozuch care for customer utility accounts. Provide targeted low income relief request respond to within 5 days. 503-823-4168 to eligible retail customers. Respond timely to all customer inquiries FY 2011-12 Actual: 99% and complaints. Manage water permit processing. FY 2013-14 Target: 95% 85.75 - 14,013,872 - 14,013,872 77 Measure Title: Percent of calls answered within 60 seconds FY 2011-12 Actual: 49% FY 2013-14 Target: 80% Groundwater Provide emergency back up and supplemental peak season water Measure Title: Be able to provide backup supply Danny Allison source for the Portland utility water system and its customers. of 80 mgd for 60 days and 90 mgd for 14 days 503-823-1567 6.34 - 1,731,080 379,000 1,731,080 379,000 (PSL). 88 FY 2011-12 Actual: 100% FY 2013-14 Target: 100%

79 Water Bureau Program Summary Template

8. Program 3. Staff (FTE) 4. Requirements 6. Resources 1. Program Title Rankings 5. Percent Manager 2. Program Description Federal, 7. Output, Outcome, or Efficiency Measure(s) Limited Admin General Rates, Fees & Phone # Regular Operating Capital State & Other Core Community Term Fund IAs Local Valves/Gates/Regulators Through the use of valves/gates, isolate segments of the distribution Measure Title: Percent of flow control valves Ty Kovatch system for maintenance and/or adjustments. Through regulator that will operatation when needed. 503-823-1508 stations, reduce main water pressure to ensure adequate and FY 2011-12 Actual: >95% appropriate pressure at the customer’s meter. FY 2013-14 Target: 90% 6.90 - 1,143,902 - 1,143,902 99 Measure Title: Percent of flow control valves are in the proper operating position. FY 2011-12 Actual: >95% FY 2013-14 Target: 99% Regulatory Compliance Meet or exceed state and federal regulatory requirements for water Measure Title: Number of violations of Chris Wanner quality mainly through treatment and monitoring. Meet other environmental regulations (including NPDES 503-823-4050 regulatory compliance mainly involving the Bull Run Watershed, permit requirements, Clean Water Act system protection, and the disposal of chlorinated water. 43.05 - 6,311,750 7,737,000 6,311,750 7,737,000 requirements, and Endangered Species Act 10 10 requirements). FY 2011-12 Actual: 0 FY 2013-14 Target: 0 Services Transport water from the distribution main to the customer’s meter Measure Title: Percent of service installs Ty Kovatch or private fire line connection. completed within 15 days 35.89 - 1,681,231 4,000,000 1,681,231 4,000,000 11 12 503-823-1508 FY 2011-12 Actual: 61% FY 2013-14 Target: 90% Field Support Field support includes the Bureau’s Fleet Management and Stores Measure Title: Provide support to field crews for Ty Kovatch inventory and operations, as well as Maintenance & Construction’s work with no delays. 503-823-1508 contracts for locating other utilities, the Bureau’s Computerized FY 2011-12 Actual: 100% Maintenance Management System (Synergen), PBOT Materials FY 2013-14 Target: 90% Billing, Engineering Maintenance Group, Geotechnical Support, and 51.56 - 4,733,616 16,132,600 4,733,616 16,132,600 12 11 contamination monitoring for the Westinghouse facility. Field Support also includes the Group Director, Senior Water Maintenance Specialists, and Admin Support.

Meters Accurately measure water and sewer customer's water use for equity Measure Title: Small meters read within 3% of Ty Kovatch and accurate billing purposes. Measure private fire line water use for actual value at all times (20 year replacement 503-823-1508 adherence to usage rules. cycle based on consumption). FY 2011-12 Actual: Data Not Available at this time. FY 2013-14 Target: 97% 18.64 - 1,827,647 1,700,000 1,827,647 1,700,000 13 13 Measure Title: Large meters read within 3% of actual value at all times (annual test program). FY 2011-12 Actual: Data Not Available at this time. FY 2013-14 Target: 97%

Data Management Key systems tools in this program include Records Management, GIS Measure Title: Percent of service installs Mary Ellen Collentine Mapping, CADD, and computerized maintenance management completed within 15 days 503-823-7474 system. Activities include maintaining and developing data FY 2011-12 Actual: 61% management systems that directly support effective and efficient daily FY 2013-14 Target: 90% field operations. Data/Information from these systems is also used to 18.25 - 2,845,259 - 2,845,259 14 14 evaluate and monitor the condition and performance of assets, help make decisions regarding investment strategies, improve business processes and customer services.

80 Water Bureau Program Summary Template

8. Program 3. Staff (FTE) 4. Requirements 6. Resources 1. Program Title Rankings 5. Percent Manager 2. Program Description Federal, 7. Output, Outcome, or Efficiency Measure(s) Limited Admin General Rates, Fees & Phone # Regular Operating Capital State & Other Core Community Term Fund IAs Local Hydrants Provides fire suppression, alternative customer water source, and Measure Title: Percent maintained to have at Ty Kovatch flushing point for the distribution system. least one working hydrant within 500 feet of 503-823-1508 service connection. FY 2011-12 Actual: 100% FY 2013-14 Actual: 100%

11.53 - 640,471 1,100,000 640,471 1,100,000 Measure Title: Percent maintained for hydrants 15 16 that are out-of-service, an adjacent hydrant within 500 feet is working, or the hydrant will be brought back-in-service within 5 business days. FY 2011-12 Actual: 100% FY 2013-14 Target: 100%

Employee Investment This captures the hours allocated to all employees for: training and Measure Title: Percent of staff requiring Susan Bailey certifications required to operate the water system or maintain certification who are certified. 503-823-1956 licenses and certificates; City mandated training; apprentice & safety FY 2011-12 Actual: 100% programs; affirmative action & EEO programs, including equity in 25.55 - 3,127,466 - 26.1% 3,127,466 FY 2013-14 Target: 100% 16 15 hiring and other HR practices; and organizational development efforts designed to maximize employee efficiency and effectiveness. Conservation/Sustainability Conservation: Effectively manage water as a finite resource to help Measure Title: Residential water use in retail Judi Ranton ensure adequate and cost effective water supply for Portland drinking service area, per capita gallons per day 503-823-7513 water customers by offering high-quality technical resources and FY 2011-12 Actual: 57 information about efficient water use to all customers. Sustainability: FY 2013-14 Target: 64 Research, communicate and help implement cost effective bureau policies and operating practices to support human health and the 5.90 - 1,004,517 - 1,004,517 Measure Title: Bureau’s annual carbon 17 17 natural environment by improving the long-term efficiency of the emissions, metric tons of CO2e. bureau’s use of energy, water, fossil fuels, materials and chemicals in FY 2011-12 Actual: 11,526 the daily business of providing drinking water service. FY 2013-14 Target: 14,008

Planning Includes long range and short-term utility strategic planning and Measure Title: Percent of standards met for Stan VandeBergh direction; regional water providers coordination on water supply medium, high or extreme risk assets 503-823-7476 planning, conservation and emergency response; financial planning; FY 2011-12 Actual: 84% CIP development; infrastructure planning including asset FY 2013-14 Target: 80% management; summer supply planning; and wholesale customer coordination. 26.31 - 4,793,716 - 29.9% 4,793,716 Measure Title: Meet or exceed planned debt 18 18 service coverage of 1.90 on First Lien Bonds and 1.75 on both First and Second Lien Bonds. FY 2011-12 Actual: 2.45 for First Lien Bonds, 1.91 for First and Second Lien Bonds. FY 2013-14 Target: 1.90 and 1.75

Bureau Support Includes functions such as contract administration, budget, Measure Title: Number of public records requests Susan Bailey accounting, property management, right-of-way and survey, public responded to per year. 503-823-1956 involvement, and information technology; manager/supervisor time FY 2011-12 Actual: 400 related to performance management and program planning; IAs for 48.50 - 13,777,008 - 70.0% 13,777,008 FY 2013-14 Target: 300 19 19 Technology Services, City Attorney, OMF, Facilities, and Risks.; and administrative expenses such as electricity, water/sewer, postage, operating supplies, garbage, etc. Security/Emergency Mgmt. Respond effectively to system wide emergencies. (Isolated Measure Title: Incidents of intrusive damage or Bill Sinnott/Randy Kane emergencies such as localized main breaks are within their respective deterrence of water quality or water delivery. 503-823-2793 & 503-823-7074 asset program.) Provide leadership before, during and after a system FY 2011-12 Actual: 0 wide emergency occurrence and give clear direction for 25.36 - 3,384,912 1,807,000 3,384,912 1,807,000 FY 2013-14 Target: 0 20 20 preparedness, response, mitigation, and recovery. • Protect and safeguard the water system, serving as first responder in security and/or water emergencies

81 Water Bureau Program Summary Template

8. Program 3. Staff (FTE) 4. Requirements 6. Resources 1. Program Title Rankings 5. Percent Manager 2. Program Description Federal, 7. Output, Outcome, or Efficiency Measure(s) Limited Admin General Rates, Fees & Phone # Regular Operating Capital State & Other Core Community Term Fund IAs Local Fountains Provide public drinking water. Enhance the landscape and livability Measure Title: Percent of decorative and Danny Allison of the community. Provide recreational opportunities. interactive fountains are operating properly. 503-823-1567 FY 2011-12 Actual: Tracking on the operations of the fountains is not yet occurring FY 2013-14 Target: 90%

3.59 - 578,460 150,000 578,460 150,000 Measure Title: Percent of licensed interactive 21 21 fountains meeting regulatory requirements for treatment FY 2011-12 Actual: 100% FY 2013-14 Target: 100%

Grounds/Parks Keep grounds and landscaping in and around water facilities neat and Measure Title: Percent of Bureau maintenance Tom Klutz attractive, in keeping with the desired livability of the neighborhood. plan met. 6.25 - 952,999 - 952,999 22 22 503-823-7503 For other sites such as Dodge Park, develop and enhance FY 2011-12 Actual: 100% opportunities for public use. FY 2013-14 Target: 100% Fund Level Expenses This line contains the total fund level expenses, which includes all debt service, cash transfers, contingency, and unappropriated fund - 152,042,541 152,042,541 balance. Total 592.10 - 231,405,761 123,709,600 5.6% - 231,405,761 - 123,709,600

82 Customer Service Improvement Status Report 2012

Bureau: Portland Water Bureau Staff Contact: LeAnne Tumbaga, Customer Service Supervisor (503-865-2550) Kathy Koch, Customer Service Group Director (503-823-3494) Date: January 22, 2013

The Water Bureau continues to participate in The Customer Service Advisory Committee in helping to implement the Bureau Innovation Project #7 recommendations to improve the City of Portland’s customer service. Attached is a report that discuss accomplishes associated to customer improvement. For additional information on the committee refer to their website of www.portlandonline.com/index.cfm?c=44196. The chair person is John Dutt in Office of Neighborhood Involvement and can be reached by email [email protected] or 503-825-2625. The staff contact at the Water Bureau is LeAnne Tumbaga at [email protected] or 503-865-2550.

BUREAU MISSION AND GOALS:

Water Bureau Statement of Vision, Mission and Values Customer Focused, Motivated, Innovative, Professional, Stewardship

Vision

The Portland Water Bureau provides the highest quality water, customer service and stewardship of the critical infrastructure, fiscal, and natural resources entrusted to our care. We enhance public health and safety and contribute to the economic viability and livability of the Portland metropolitan region. We are a recognized leader among water service agencies across the country. Mission

• To provide reliable water service to customers in the quantities they desire and at a quality level that meets or exceeds both customer and regulatory standards. • To provide the highest value to customers through excellent business, management, and operational practices and appropriate application of innovation and technology. • To be responsible stewards of the public’s water infrastructure, fiscal and natural resources. • To provide the citizens and the City Council with a water system that supports their community objectives and overall vision for the City of Portland.

Values

Customers Keep the needs and desires of our customers in the forefront of our thoughts and actions. Service Contribute responsively to the welfare of the community. Financial Health Maintain fiscal integrity, undertake sound financing practices and ensure auditable results. Employees Recruit, maintain, motivate and retain a highly qualified, diverse and committed workforce; and provide a safe work environment.

83 Partnership Partner with our community, our customers and regional water interests. Leadership Focus on goals, results and accountability while promoting human health and development. Responsiveness React positively, cooperatively, and efficiently. Effectiveness Make the most appropriate use of resources and infrastructure. Communication Share information and knowledge openly. Flexibility Adapt to new, different and changing requirements. Equity Ensure fair treatment and service to all. Stewardship Protect the natural environment so its benefits are available to meet today’s needs as well as those of future generations.

The Water Bureau’s Vision, Mission and Value Statements are incorporated into its 2008-2011 Strategic Plan (Attachment A) http://www.portlandonline.com/water/index.cfm?c=29964&a=328185. The Plan specifically addresses customer service with the following service level indicators:

Customer • 75% give High or Very High rating on Auditor’s SEA survey Service • Respond to customer inquiry or request within 5 business days • Answer 80% of calls within 60 seconds • Fewer than 7 water quality complaints per 1000 customers per year • No more than 5% of customers out of water for more than 8 hours a year • No customer is out of water more than 3 times per year • Complete 90% of service installs within 15 days • At least one working hydrant within 500 feet of service connection • Maintain minimum pressure of 20 pounds per square inch (psi) during normal demands • Complete mandatory projects on schedule

The Strategic Plan also identifies ways in which the Bureau intends to improve its responsiveness to its account holders and to promote community engagement:

Strategic objective: Improve responsiveness to customer needs and promote engagement of the community

Tactic: Implement monthly billing to increase convenience for customers and respond to expectations for more manageable total costs (water, sewer and storrmwater) per bill. Tactic: Use a variety of means to collect customer feedback and assess current customer needs. Design and implement customer service improvements to respond to those needs. Tactic: Promote community engagement by developing and implementing a bureau-wide public involvement plan, particularly for capital projects. Tactic: Increase number of maintenance districts from 2 districts to 4 districts to provide better customer service and improved accountability.

Since the adoption of the Bureau’s Strategic Plan, the Bureau has tracked progress in meeting the service levels in the plan. Status information was compiled in mid- 2009 and the results are summarized in the table below. These service levels include the bullet list above as well as a variety of other categories that address effectiveness, efficiency and quality of bureau operations and services. See sections B and C for indicators more specific to Customer Service. Transparency about measures with an “unclear” or “not met” status will help the Bureau guide future effort to improve service and/or collect better information about service.

84

FY 11-12 Progress Toward Meeting Key Service Levels Portland Water Bureau – Strategic Plan Implementation (July 1, 2011 to June 30, 2012)

OVERALL STATUS Number of Number of Number of Total Number of Tactic 5.A. Create a key Service Levels Met Service Levels Not Met Service Levels Service Levels service level indicators with Unclear Status “dashboard” for use by the FY 08-09 16 4 5 25 Mgmt Team. Assign staff to FY 09-10 17 6 2 25 collect data. Evaluate trends. FY 10-11 22 5 0 27 FY 11-12 19 6 2 27

MT Key Service Level Indicator Assigned Staff Owner FY 11-12 Status Chris A.1. 100% compliance with state and Yone Akagi Current Status: Service Level Met Wanner federal drinking water quality regulations Teresa Elliot/Dave The bureau was in compliance with all federal and state drinking water quality Peters regulations throughout FY 11-12. No regulatory violations occurred.

In March 2012, the Oregon Health Authority issued a Final Order granting a variance to the Cryptosporidium treatment requirements. PWB has been in compliance with the variance since April 1, 2012. Design of a UV treatment plant was completed in December 2011 in case compliance with the variance requirements cannot be sustained.

In May 2012, OHA declined to approve a schedule delay for LT2 requirements for PWB’s open reservoirs. Construction of a second buried reservoir at Powell Butte is currently underway. Planning for Washington Park reservoir replacement is also currently underway.

For further details on water quality results/compliance, see: http://www.portlandonline.com/water/index.cfm?c=29551

85

MT Key Service Level Indicator Assigned Staff Owner FY 11-12 Status

A.2.. Maintain minimum service Rod Allen Current Status: Unclear pressure of 20 pounds per square inch (service area not yet fully monitored) (psi) during normal demands 99% of the time 27 “below minimum pressure” incidents were detected by the SCADA system. 266 individual services dropped below 20 psi for at least five minutes one or more times. 0.003% of service-minutes were below 20 psi.

Currently 57% of the system is monitored for water pressure using a portion of the existing SCADA sensors. Based on the sites monitored thus far, the service level is being met. Our goal is to monitor 93% of the system (the maximum possible using all existing SCADA sensors). Until we reach that coverage goal, the overall result for water pressure is not clear.

NOTE: To determine whether or not the service level is being met, this information also needs to be evaluated along with data gathered using the Water Outage Tracking Application (WOTA). See related service levels, especially C.2.

A.3. Fewer than 7 complaints per 1000 Victoria Mercer Current Status: Service Level Met customers per year 5 water quality/water pressure complaints per 1000 connections (based on 895 Definition currently limited to water complaints received via the Water Line) quality/pressure complaints received via Water Line A.4. Chlorine residual between 0.5 and Chad Talbot Current Status: Service Level Met 4.0 mg/L total chlorine at 95% of key sample sites (NEW) Kimberly Gupta Chlorine residual was between 0.5 mg/L and 4.0 mg/L in 99.3% (3513 out of 3537) of the samples taken for purposes of the Total Coliform Rule.

Kathy B.1. 75% of residential customers give Tim Hall Current Status: Service Level Not Met Koch High or Very High rating on Auditor’s citywide survey . 72% of residents ranked quality of water services as high or very high (down slightly from 77% in 2010). (Dec 2011 survey)

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MT Key Service Level Indicator Assigned Staff Owner FY 11-12 Status 84% rated tap water quality as good or very good. (Dec 2011 survey)

B.2. Respond to 95% of customer Carrie Popenuk Current Status: Service Level Met inquiries or requests within 5 business days Most customers reach the Bureau through phone calls, e-mails and regular mail. Approximately 98% are addressed at the time of initial contact. Fewer than 2% of the customer contacts require a service order. Over 80% of the service orders are addressed within 5 days.

B.3. Answer 80% of calls within 60 Carrie Popenuk Current Status: Service Level Not Met seconds • 49% of calls were answered within 60 seconds • 63% within 120 seconds • 82% within 240 seconds

The average hold time was 2 minutes, 3 seconds. This is a longer hold time than FY 10-11, and about the same as FY 09-10.

B.4. Provide a range of payment Carrie Popenuk Current Status: Service Level Met options that gives greater convenience for customers and encourages lower Preferred payment options include: AR upload, IVR (not yet installed), Web-

costs to the bureau Customer and Auto-Pay. 45% of payment transactions were by these methods (up from 39% in 2010).

Ty C.1. No more than 5% of customers out Jamie Seaquist Current Status: Service Level Met Kovatch of water for more than 8 hours a year Alonzo Jamison WOTA data indicated less than 1% customers had interrupted service for more than 8 hours, well under the 5% target. WOTA data is derived from Rod Allen distribution system shutdowns initiated by maintenance and construction crews. One customer had interrupted service for more than 8 hours due to pump station/tank outages. Sixteen customers had interrupted service for 8 hours due to water quality trouble shooting. This total is substantially less than 5% of all customers.

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MT Key Service Level Indicator Assigned Staff Owner FY 11-12 Status C.2. No customer out of water more Jamie Seaquist Current Status: Unclear than 3 times per year Alonzo Jamison WOTA data did not indicate that any customers had interrupted service more than 3 times in the last 12 months. WOTA data is derived from distribution Rod Allen system shutdowns initiated by maintenance and construction crews.

We are currently working on improving our ability to combine data from the SCADA system with data from WOTA to calculate a total number of services that might be experiencing a service interruption at the tap. Currently, 57% of the system is monitored for water pressure using a portion of the existing SCADA sensors. Work continues to add smaller zones with the goal of monitoring 93% of the system (the maximum possible using all of the existing SCADA sensors). See also Service Level A.2.

C.3. Complete 90% of service installs Kevin Suell Current Status: Service Level Not Met within 15 days (measured on date of actual install) 61% were completed within 15 days (down from 76% in 10-11).

C.4. At least one working hydrant Kevin Current Status: Service Level Met within 500 feet of service connection Suell There are no locations where a hydrant on the out-of-service list causes this If working hydrant is not available service level to not be met. within 500 feet, out-of-service hydrant must be brought on-line within 5 business days.

C.5. More than 90% of flow control Russ Halverson Current Status: Service Level Met valves will operate when needed 97% of small diameter distribution main valves tested were accessible and operated when tested (3,961 small valves operated; 21 were inoperable; 84 were paved over or buried)

99% of large diameter distribution main valves tested were accessible and operated when tested (1,314 large valves operated; 2 were inoperable; 8 were paved over or buried).

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MT Key Service Level Indicator Assigned Staff Owner FY 11-12 Status Cecelia D.1. Maintain Aaa bond rating for Cecelia Huynh Current Status: Service Level Met Huynh revenue bonds Current rating is Aaa (highest possible).

D.2. Meet or exceed planned debt Cecelia Huynh Current Status: Service Level Met service coverage of 1.90 on First Lien Bonds and 1.75 on both First and 2.31 on First Lien Bonds (preliminary) Second Lien Bonds 1.93 on First and Second Lien Stabilized Revenue (preliminary)

Mike E.1. Complete CIP projects on schedule Van Le Current Status: Service Level Not Met Stuhr Less than 10 projects in last 12 months Of 67 CIP projects completed during FY 11-12, 15 (22%) were completed completed later than planned later than planned (90 days after the planned completion date).

At least 80 percent of projects are forecast Note: none of the 15 projects completed later than planned were major projects to be completed within three months of their (i.e., over $500,000). planned date

Of 100 current capital projects, 82 (82%) are forecast to be complete within 3 months of planned completion date. E.2. Achieve continuous improvement Chad Talbot Current Status: Service Level Met in maintenance best practice, measured as average improvement in 10 best Implementation of best practices improved to 60% from 55% in FY 10-11. practice indicators as compared to the previous fiscal year E.3. Meet at least 80% of standards Jeff Leighton Current Status: Service Level Met established for inspection, testing, repair and replacement of assets that are 100% of known extreme risk assets are meeting standards identified as high or extreme risk. Risk scenarios rated extreme require 84% of known high risk assets are meeting standards immediate action. E.4. New CIP projects require one of Mike Saling Current Status: Service Level Not Met the following analyses in the basis of design report: total life cycle cost, cost Two Basis of Design Reports (BDRs) were completed in FY 2011-12. One of benefit ratio, or cost-risk reduction ratio the two included a cost-benefit ratio, cost-risk reduction, or total life cycle cost analysis. The other did not.

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MT Key Service Level Indicator Assigned Staff Owner FY 11-12 Status Susan F.1. 50% of employees report they are Susan Bailey Current Status: Service Level Met Bailey fully engaged in and enthusiastic about their work Nancy Myers • 56% favorable • 24% neutral • 20% unfavorable

based on July 2010 survey F.2. Maintain OSHA SHARP Eric Current Status: Service Level Met certification Fullan The State of Oregon renewed the bureau’s certification in the spring of 2011.

(Note: Fifth and final year of SHARP certification was awarded in July 2012.)

F.3. At least 60% and no more than Nancy Myers Current Status: Service Level Met 80% of promotional vacancies are filled with internal candidates • 71% of promotions were internal candidates (25/35) • 29% were external (10/35)

F.4. Workforce diversity mirrors Susan Bailey Current Status: Service Level Not Met diversity in the Portland community As of the end of the second quarter of FY 2011-12 (the last period for which there is data), the bureau did not mirror the overall diversity of the community based on the census results for 2010 for Multnomah County.

However, PWB has reduced the number of placement goals* from 21 to 16. In several categories where there are placement goals, we have reduced the number of individuals necessary to close the gap. We have done this while reducing the overall number of employees from 600 to 583.

*A placement goal exists when the population in a given EEO group available to work in a particular job category is different (to a statistically significant degree) from the number of staff in the group employed in that job category.

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MT Key Service Level Indicator Assigned Staff Owner FY 11-12 Status Eddie G.1. Per capita residential water use in Sarah Santner Current Status: Service Level Met Campbell retail service area remains steady or declines 10-11: 57 gallons per day 09-10: 61 gallons per day 08-09: 62 gallons per day 07-08: 63 gallons per day 06-07: 66 gallons per day Note: residential per capita use can vary due to weather conditions. G.2. Technical assistance results in an Jeff Sandberg Current Status: Service Level Met average 25% water savings by participating industrial and commercial ƒ 56 full on-site surveys during FY 2011-12. Total saved for the year was customers about 2 million gallons. ƒ 33% average savings per participating customer for FY 11-12 G.3. Bureau’s carbon emissions are Janet Senior Current Status: Service Level Met reduced from 2007 levels Carbon Emissions (metric tons of CO2e) 2011: 11,526 (excluding 370 metric tons of CO2 related to biofuel use) 2010: 9,788 2009: 12,216 2008: 11,416 2007: 14,008

Note: Electricity use is the bureau’s largest contributor to carbon emissions. Electricity use increases in years when we pump groundwater to supplement gravity- fed supply from Bull Run. G.4. Percent of energy use from Janet Senior Current Status: Service Level Met renewable sources increases from 2007 levels 290 kW of generating capacity have been installed since 2007. Feed-in tariff solar project at GW pump station came on-line in May; generating capacity is 9.8 kW. Vernon microhydro project was completed in August 2012 (capacity not included in total above). Installed solar facilities generate power equivalent to approx. 1% of the bureau’s total electricity consumption. Note: The hydropower plants at the two Bull Run dams generated 95,078,000 kWh during calendar year 2011, or approximately 4 times the total electricity used by the Water Bureau during the same time period.

91 Payment Method Trend Continuous Improvement in Maintenance 100.0%

60 90.0%

80.0% 50

70.0%

60.0% Auto-Pay Implement RCM Web - Customer 40 Develop RCM AR Upload 50.0% Remittance Meet or Exceed Targets Web-CSR On Schedule? 40.0% Cashier 30 Track Work in CMMS

30.0% Schedule in CMMS Set Targets 20 20.0% Refine Workflow Process

Asset Register 10.0% Best Practice/Cost Effective Strategies Percent of BestPractice Complete 10 0.0% 2006 2006 2007 2007 2008 2008 2009 2009 2010 2010 Labor Preferred Labor Preferred Labor Preferred Labor Preferred Labor Preferred Intensive Methods Intensive Methods Intensive Methods Intensive Methods Intensive Methods Methods Methods Methods Methods Methods 0 % Complete End of FY09 % Complete End of FY10 % Complete End of FY11

Risk Service Level Trend (1)

180

160

140

120

100 Risks Identified Risks Addressed 80

60

40

20

0 2009 2010 2011

92 The Portland Water Bureau places a great deal of emphasis on public information, public outreach and public involvement to its customers and to the community. Although outreach efforts may not address the needs of individual ratepayers or the concerns of individual customers, the Bureau understands that its transparency increases with every individual contact. Transparency and customer service cannot be addressed separately; therefore the Bureau continues to examine its outreach efforts and determine how to make them stronger. The following steps were taken in 2012 to meet customer needs and service to the public at large:

Public Outreach Activities:

1. Web Development “Refresh”

• Completed refinement of standards and guidelines for all staff to follow to ensure consistency across the Bureau’s website. • Continued work with BTS about latest developments and information in regards to the City web portal and its utilization by Portland Water Bureau (PWB) to present easy access to and by the public. • In summer 2012, Bureau introduced a new website format to be more user friendly, and increase ease of information searches coordinated by Outreach staff.

2. Social Media Development

• Maintained the Bureau presence on Twitter and Facebook social media sites and shared project photographs on Flickr. • Responded to customer questions posted on Twitter and Facebook.

3. Water Blog • Expanded the use of Water Blog to target broader audiences by improving content related to general water-related information, in addition to PWB activities and sharing news release, and connecting with the citywide electronic public for mandatory or emergency communications situations. • Posted approximately 3 to 6 blogs per week providing insight into PWB operations, water system events, Bureau activities in addition to regionally and nationally-related topics. • The Water Blog continued to receive a large number of monthly “hits” from the public and provided another medium in which the public could connect with the Bureau. The Bureau surpassed more than 2 million total hits on the blog in 2012.

4. Special Events • Provided written, online and verbal information about the Bureau’s Water Events Station (WES). A portable drinking water fountain service that could be checked out for public events by community members/groups. • Public Outreach staff provided bureau information to thousands of people at community fairs like the East Portland Expo, Salmon Festival, World Water Day, Better Living Show, Fix-it-Fairs.

5. New brochure development/existing brochure updates • Began developing a new “signature” brochure that would explain all of the diverse services the bureau offers to its customers. • Coordinated PWB bill inserts providing news and information on water system activity and tips to save water.

93 6. Emergency Response • Provided emergency response public information services to inform the local community on water-related emergency events. • Public Outreach staff served in coordination the communication response to a Boil Water Notice incident in July 2012. • Public Outreach staff promoted and participated in the Regional Water Providers Consortium emergency water supply drill.

7. Media Relations • Managed media relations through prompt response to inquiries for information and requests for interviews. • Made contacts with community newspaper editors to promote news coverage of bureau CIP projects, such as Powell Butte Reservoir 2 and Westside Header – Phase 2, among others. • Production of more than 30 PWB news releases on water-related events and water infrastructure topics.

8. Communications Management • Coordinated the Bureau’s fulfillment of more than 50 Public Records Requests. • Responded to TrackIt’s (on-line information request and comments system) phone calls, e-mails, blog comments, social media requests for information. • Maintained employee communication features through “Water Vision” a video program (slides) at PWB’s Interstate Facility to provide a new way of communicating with field staff who do not get email messages. • Coordinated the preparation of an internal move of Interstate-based employees for pending facility construction. • Converted printed version of employee newsletter ("Dispatch") to e-newsletter format to meet with bureau's sustainability goals, which significantly reduced bureau printing costs.

9. Lead Hazard Reduction Program • Through the Lead Hazard Reduction Program, the Portland Water Bureau provides outreach, education and testing for nearly all lead hazards to the entire Bull-Run service area. • The Bureau continues to offer free lead-in-water testing to all customers who request them. Customers are provided information and tips to reduce lead in water with their test results. • A targeted mailing offering free lead-in-water testing was sent to Portland Water Bureau customers thought to be at a higher risk for lead poisoning, specifically those homes built between 1970 and 1985 and with a child 10 years of age or younger. • The Portland Water Bureau in the annual water quality report included additional water quality information to provide customers with important information about their drinking water. Information on reducing exposure to lead in water is included in the report as part of the additional water quality information. • From March through May, the brochure “Lead in Drinking Water and Household Plumbing, How to Reduce Exposure to Lead” was included in all water and sewer utility bills. The brochure was updated for 2012 to include the revised regulatory language and updated tips to reduce exposure to lead.

10. Financial Assistance Program • The Portland Water Bureau continues to search for innovative outreach activities to promote overall participation in its financial assistance program and to target high priority groups. These high priority groups include the lowest income households, households with elderly members ages 60 or older and households with disabled individuals. • Outreach was targeted to community centers, senior centers, churches, neighborhood associations and businesses and organizations serving non-English speaking clientele. In 2012, program participation decreased by 372 customers, giving us a total of 9091 active customers.

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Community Involvement and Information staff conducted a variety of outreach activities in conjunction with a number of projects and programs implemented by the Portland Water Bureau in 2012:

1. Emergency Communications Center Project • Public Outreach staff worked with nearby residents to address concerns about reduced street parking and access to the adjacent public park once construction of the facility got underway in early fall 2012. • PWB Outreach staff turned the project over to public information staff with the Portland Bureau of Emergency Management but offer their assistance as needed.

2. Public notification of short-term water construction projects • Public Outreach staff visited with residents directly affected and distributed printed notifications and bulletins about pending and future construction work. • Staff helped to resolve public complaints and concerns. • Conducted outreach on CIP pipe and tank projects that included: Greenleaf Pump Station, SW Carolina Mains, Macleary Park Mains, Council Crest Mains, Forest Park Low Mains, and Forest Park Low Tanks, Linnton Tank demolition. Staff also notified affected residents on main projects that are performed by internal PWB construction crews. Outreach staff also notified property owners of hydrant installations in the public right of way on their properties.

3. Fulton Pump Station Replacement Project • Public Outreach staff met with area neighborhood associations as well as business and interest groups to provide updates on the status of design. • Public Outreach staff completed a public involvement process to get the community involved in facility design by establishing a Public Advisory Committee. The PAC helped recommend the exterior look of the pump station that will include a public restroom. Additional public outreach activities will continue through project completion in 2015. • Public Outreach staff joined with project engineers to address concerns and suggestions from the Oregon Public Broadcasting, which will be significantly affected by the construction in 2014.

4. Powell Butte Reservoir 2 Project • Public Outreach staff continued their ongoing public information campaign in 2012 which encompassed the construction of the new reservoir and the publicly mandated park improvements, including an Interpretive Center, permanent Caretaker House, Maintenance Facility and improvements to the park’s trail system. • Public Outreach staff continued to work with park users and the advocacy group "Friends of Powell Butte Nature Park" and the Powell Height Homeowners Association to update the project activity occurring at the Powell Butte site. Staff also conducted guided tours of the site. • Public Outreach staff met routinely with area neighborhood associations and business groups to keep them informed of the progress of the project. • Worked with residents and park users who expressed concerns or complaints related to the construction.

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5. Kelly Butte Reservoir Project • Public Outreach staff engaged nearby residents and the Lents and Powellhurst-Gilbert neighborhoods on the start of construction of the new reservoir. • Staff served as liaison to affected businesses and TriMet.

6. Westside Header Project – Phase 2 • Public Outreach staff notified residents and businesses directly affected by the construction of a replacement water supply pipeline leading into downtown Portland. Major construction was completed in December 2012. • Staff placed advertisements in community newspapers to ensure the community was aware of the impacts to traffic. • Staff conducted media tours of the abandoned Harbor Drive tunnel that was unearthed and then closed as part of the project.

7. Portland Height Mains Project • Public Outreach staff worked to notify residents affected by the construction to replace an aging water distribution main and sewer pipes in a hillside southwest Portland neighborhood. Staff mailed updates to notify residents of what areas were immediately affected. • Staff placed advertisements in community newspapers to ensure the community was aware of the impacts to traffic. • Staff produced signs to address hazard concerns, such as speeding vehicles.

8. The HydroPark Program Seven HydroParks are spread throughout Portland, and are located in park-deficient neighborhoods. • All sites have been opened to public access and enhanced with basic amenities, such as paths, benches and picnic tables. • Pittman Addition HydroPark has an active community group, Friends of Pittman Addition, that is working to fund site improvements and bring temporary art to the park. Friends of Pittman Addition is fiscally sponsored by North Portland Neighborhood Services and was awarded a grant to build five sculpture pads and restore the park with native plants. The group has partnered with the Columbia Slough Watershed Council to plant native plants along the sloped landscape along the adjacent sound wall. The group also received a grant from the Union Pacific Foundation to provide stipends for each sculptor. Following a call-to-artists, the group is going through the permitting process prior to installation. • The HydroParks program has become an established community outreach model that involves neighbors collaborating with Portland Water Bureau staff on the design of these public open spaces. The partnership creates an ongoing community presence and citizen-level security at these sites; Sabin HydroPark includes a volunteer anti-graffiti team with ONI training. • The HydroPark Program also works with other city bureaus to partner on specific collaborations. Portland Parks and Recreation’s Community Garden Program for gardens located at Hazelwood HydroPark and Sabin HydroPark. The HydroParks program has also partnered with the Bureau of Environmental Services to demonstrate onsite bioswales, which help serve wider City stormwater management goals.

9. Water House • The Water House project was made possible by the generous contributions of over 30 local green companies. Contributions of products and labor total over $150,000. • Water House hosted 28 events, including 10 Public Open Houses in 2012. • Water House participated in the Build it Green Tour and the Oregon Tradeswomen Tour as well as hosted Metro, East Portland Neighborhood, Columbia Slough Watershed and Evergreen State College meetings. • An estimated 550 community members have toured the Water House during 2012.

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10. Summer Concerts Program sponsorship • The Portland Water Bureau sponsored four community events through the Portland Parks and Recreation’s summer concerts program. The first concert was held at McCoy Park, which is part of the New Columbia development built by the Housing Authority of Portland. Two concerts were held at Portland Park (a substitute for Powell Butte Nature Park where reservoir construction in underway), and one in Willamette Park, as part of the outreach campaign for the pending new pump station inside that park. These sponsorships allowed for community outreach about water conservation practices, infrastructure improvement projects, and Bureau’s general mission of providing clean, cold, cheap and constant water to community residents of Portland and the surrounding metropolitan area. Outreach was not limited to urban Portland neighborhoods. Community Involvement and Information staff also conducted a variety of outreach activities in the Sandy River basin in conjunction with several Water Bureau projects and programs being implemented in 2012:

Bull Run Watershed Public Outreach Activities

• Public Outreach staff served as the liaison between the Bureau and community groups, non-profit organizations, local, state and federal agencies operating within the Sandy River basin and in communities along the transmission conduit. • Provided information on capital projects, surveys and other activities on federal and private land; coordinating with local and federal government agencies to obtain permits to authorize Water Bureau projects; • Worked with federal and local agencies to prepare for emergency communications response. • Worked across bureau sections to secure information on Water Bureau projects inside the Bull Run watershed and created quarterly reports that are publically available as proscribed by City Code; • Contributed to reports, memos, assessments, ordinances and other documents to meet regulatory reporting requirements.

Bull Run Water Supply Habitat Conservation Plan (HCP) • Represented the Bureau at bi-monthly meetings of the Sandy River Basin Watershed Council and served as Treasurer on the council. • Conducted outreach with numerous private landowners to secure agreements to conduct HCP measures on or adjacent to their land. • Made presentations to local and regional agencies about the mandates and activities associated with the HCP. • Co-sponsored, organized and participated in basin-wide community event. • Pitched stories, provided information, and organized interviews to media representatives on stories regarding the HCP.

Dam 2 Tower Improvement Project/Hudson Intertie/Lusted Hill Facility Improvements

• Participated on project team to define and perform communications activities; documented project activities. • Informed public, local governments and news media on project activities that impacted public and local communities. • Liaises with the public and county planning departments on land use permit applications.

97 • Dodge Park: • During 2012, the Bureau operated Dodge Park for camping and day use from May through September. • Twenty campsites were available as well as the Community Hall. Gross proceeds for the season were $17,150.

Customer Service Assessment: Please attach a copy of your most recent customer service survey and survey results. Please indicate how your bureau assesses timeliness, accuracy, helpfulness, expertise, and available information. If you do not currently survey bureau customers, please explain any future plans.

Getting feedback from our customers: Surveys

• The Bureau invites questions and comments from the public via a feedback template on its PortlandOnline website: (Attachment B) http://www.portlandonline.com/water/index.cfm?c=38757.

• The Water Bureau recently purchased an automated after call survey system. This system will provide an in depth analysis of customer satisfaction. Automated surveys are scheduled to go live the summer of 2013. In past years the Customer Service Group’s Call Center sent Satisfaction surveys which targeted a weekly sampling of customers. This was a manual process which has been discontinued in anticipation of the upcoming automated survey.

• In August 2008, the Water Line (see below) implemented a customer feedback form. (Attachment D) All customers who call the Water Line receive a return postage paid questionnaire as to their experience with the services of the Water Line. Customers may request a call back when they return the questionnaire. Results are scanned into the imaging system and tallied. Approximately 50% of questionnaires sent out are returned and the responses have been overwhelmingly positive.

• After three large valves were replaced in the Hawthorne District during Fall 2007, the Maintenance & Construction Group sent a letter to survey businesses. The survey asked them to evaluate the impact of the work from a customer service perspective. Based on the success of that survey, the Group intends to incorporate a similar survey into future projects.

Providing customers with timely, accurate information: The Water Line • The Water Line is a single point of contact for customers who are experiencing water quality or water pressure issues. By providing a single point of contact for these specialized inquiries we enhance customer service through timely and accurate responses. In addition, call volume is reduced to the Call Center, which helps alleviate hold times for customers calling about billing issues. The goal of the Water Line is to respond to all calls on the same business day.

o In 2011-2012, 1682 calls were logged to the Water Line. All were responded to on the same day. o 92% (1851) of these calls were resolved over the phone on first contact. This is not only beneficial to the customer but saves considerable Bureau resources by eliminating the need to dispatch a truck and crew. o Water Line staff work to educate customers on common water quality and pressure problems and how to resolve them. Simple suggestions, such as rinsing off an aerator to alleviate restricted flow or flushing pipes to improve water quality, often go a long way to resolving customer problems. o 8% (161) of calls made to Water Line required a field visit. (See Chart below)

98 o Staff are a vital partner in the Lead Hazard Reduction program. They answer customer requests for lead test kits and, when they are returned, process them for analysis by the Lab. For this period staff sent out 2452 kits to Portland Water Bureau Customers in response to requests from customers. 518 test kits were sent to the Wholesale Water District Partners. o Staff handles Data Entry on returned test kits, interprets results for customers and offers tips on how to reduce exposure to lead via drinking water. o 776 kits were retuned and processed for Portland customers. 186 kits were returned and processed from Wholesale customers. Of these tests Portland had 16 tests over the action level (MCL) and required additional education and were offered the opportunity of additional testing to determine the best way to lower the lead levels in their tap water. o Staff coordinates with Water Bureau wholesale partners who participate in the Lead in Water Education Program (LWET) to alert the purveyors when one of their customers has a high lead result from the test. During this period there were 10 tests over the action level.

Water Line Calls Number and Nature of complaints for FY 2011-2012

Area N NE NW SE SW S E W Total Informational 54 156 41 188 125 2 1 567 Water Quality Color 34 106 26 193 68 1 428 Odor 7 19 3 16 14 59 Taste 3 13 1 6 5 28 Dirty Water 12 43 7 56 67 1 186 Pressure High 4 3 3 14 8 32 Low 7 14 8 32 13 1 75 Fluctuating 1 6 1 9 4 21 Total Water Quality 67 198 46 303 177 2 793 Pressure 17 39 20 78 39 1 194

Resolution Rate: By phone 1,851 92% In the field 161 8% Total 2,012

99 Water Line calls are compiled and distributed weekly to various Operations groups to inform operational decision making. The nature of complaints are analyzed to identify any cluster of calls (i.e. color, dirty water) in any one area that may be due to operational problems in the distribution system thereby allowing the bureau to rectify them at the earliest possible opportunity.

• Survey Cards (see Attachment D) Survey cards have been updated to include a box which asks “Want A Call Back?” with space for respondents name and phone number. This is allows staff to follow up with callers who were not satisfied with the response they received. It allows staff to do further research to assist the customer.

Workforce Development: Please describe any efforts you have made to develop customer service competency within your workforce in the areas of recruitment, training, and evaluation. Please share any details you can provide regarding progress in these areas over the past year (training program information, key bureau contacts, recruitment/evaluation material examples, etc.)

Developing Customer Service Competency via Recruiting:

• Job Fairs & Community Partnerships In order to ensure that we create a diverse workforce of the highest quality that reflects our community, the Water Bureau will continue its efforts to promote the hiring of diverse staff for the Bureau by attending Job Fairs locally and out of state. We will continue to work with Community Based Organizations as a source for applicants for Water Bureau jobs. o During 2012 Portland Water Bureau staff participated in five career fairs at diverse University and State college campuses locally and out of state. o In addition the Bureau participated in a PSU fair for Native American students as well as an Employment and BIZ fair hosted by the Hispanic Chamber of Commerce. o In 2012 the Bureau staffed the Women in Trades annual Career Fair, and hosted a tour for students in the program. o Staff met with everyone attending the college career fairs and explained the City's recruitment process and what applicants need to do in order to apply for a job. o Staff collected 100’s of resumes from students interested in doing engineering internships with the Portland Water Bureau. o The Bureau continues to work directly with community based organizations with pre-apprenticeship programs, notifying them when we have recruitments, making presentations as asked, etc. • Written information regarding working at Portland Water, as well as our Work at Water web section was updated to reflect our diversity, opportunities and customer service focus. • Staff responds personally to every job or internship inquiry, providing information about up-coming openings, recruitment practices, and requests for job shadows and informational interviews. • During 2012 we hosted four student interns from the Clackamas Community College Water and Environment Technology Program. The Bureau also hosted a tour for students in the program.

100 Developing Customer Service Competency via Youth Outreach:

o In 2012, the Bureau participated in the Youth Career Expo to familiarize Portland area high school students with career opportunities. o PWB staff participated in a career fair at Benson High School and mock interviews at David Douglas and Reynolds High Schools.

• Summer Employment Program: o The Portland Water Bureau worked with Straightway Services to bring 10 youth teams to work in the Grounds group during the summer of 2012. o Through the Mayor’s Youth program, the Portland Water Bureau employed 15 youth.. o The Portland Water Bureau has developed 10 internship opportunities for students attending Portland Community College receiving scholarships through the Future Connect Program, and hired 5 interns during the summer of 2012.

Developing Customer Service Competency via Cultural Outreach:

• Women in History Month o The Portland Water Bureau partnered with other Bureaus to sponsor events. • Black History Month o The Portland Water Bureau was an official sponsor of the 2012celebration, observed annually in February. • Employee Staff Meetings o Facilitated sessions were held at a number of staff meetings to enhance cultural awareness. • Employee Workshops o The Bureau sponsored a number of workshops for both line staff and manager/supervisors to increase awareness of implicit biases. o A majority of managers/supervisors have completed the City training series: Cultural Competency Certification for Managers and Supervisors.

Developing Customer Service Competency via Training and Evaluation:

Customer Service employees created a Customer Bill of Rights to ensure each customer receives the highest level of service. Those values are now displayed though out our departments. (See Attachment C)

• Customer Service

o The primary focus is on redesigning the new hire training, as well as creating continuing education courses for veteran staff. o All newly developed customer service training programs are based on a foundation of measurable, behavioral objectives that tie directly to job performance. o Training is now standardized and documented, resulting in consistent delivery for future classes. o New training programs include written and performance based tests that enable the measurement of learning gains. o All training programs are designed using adult learning principles to make the information timely, job relevant, understandable and real, thereby increasing the transfer of learning.

101 o The Training and Quality Assurance staff listen to customer calls and to develop training based on areas of opportunity identified during call review. Additionally Customer Service Representatives (reps) are coached regarding their calls, given tools for success and positive reinforcement on areas where they exceed expectations. o Combined, the training and QA positions have helped to create a focused, proactive and skilled customer service team that has showed marked improvement in customer interaction. The continual feedback allows reps to have a clear understanding of any areas they need additional support in, and gives training a clear idea of where to focus their efforts. o Desk top Coaching is being developed to support reps success. A Lead Representative will spend one on one time with each Rep, listening to calls, focusing on areas the rep feels they need support in, and identifying best practices for call handling. o Customer Service employees as well as City employees who use the Cayenta billing system which contains confidential information, such as customer names, addresses, and social security numbers receive annual training on the Red Flag Rule. This training is mandated by the Federal Trade Commission as well as state law and City ordinance. This continued training enables staff to minimize the incidence of identity theft by recognizing possible security risks and taking measures to protect the integrity of customer data. o Provided initial job training for newly hired Customer Account Specialists.. o Customer Service staff completed course 1 and 2 of the AWWA Customer Service skill training program. o Documented business processes for the Customer Services group, blending the technical procedures with City policies and business rules in order to provide employees a single, complete source of documentation. Developed a process for delivering this content electronically through PortlandOregon.gov.

• Maintenance and Construction

o Coordinated training tracking database with the Customer Service Group. Ongoing coordination with all work groups using the vendor based Succeed data base. o Ongoing needs assessment within the Maintenance and Construction Services and Engineering Groups. o Offering monthly training sessions with a goal of .1 DHA Drinking Water CEU per month. Ended 2010 with a total of 4.0 new CEU approved subjects as well as 4.2 more of repeated CEU approved subjects offered in 2010 for a total of 8.2 CEU approved subjects offered. These do not include AWWA Short School or Winter Safety School. o Basic training being directed through supervisors and delivered during monthly and weekly Safety Talks and monthly SOP reviews. o Developing in-house trainers as subjected matter experts. Accomplished this with First Aid trainers. Currently working towards this with CEO and AEO training with 6 current operators. This will be incorporated in the upcoming new WOMA 150- day curriculum. o Skill based / hands on training. The goal is for most, if not all, subjects to include a written exam as well as hands-on demonstration skill checks where appropriate. o Distribute Monthly and Quarterly class schedule. Developing a 2011 schedule for the major and most frequent topics/subjects.

• Business Operations o New staff members participate in new employee orientation, to raise their knowledge of the Bureau, the water system and the Bureau’s commitment to diversity and customer service. o The Bureau completed its multi-year program for managers and supervisors to increase understanding of implicit biases and micro-inequities, with a majority of both managers/supervisors and line staff attending workshops.

102 o Work continued within each work group based on the Engagement Survey of 2010 results to enhance efficiency and effectiveness, better meeting our customers needs. The Engineering Services Group was resurveyed. Training sessions were held for supervisors to understand survey results and to develop action plans based on the results. o Several work groups have completed Emotional Intelligence training. This will continue during 2013. o Several training sessions were held for supervisors to enhance skills. o Business Operations has taken over much of the ongoing responsibility for the Cooperative Leadership Institute to which the Bureau sends 4-6 participants each year.

Informal evaluation by peers is also considered important by the Bureau. BRIDGE was formed by a group of volunteer employees who adopted the name BRIDGE, an acronym for: Building, Respect, Involvement, Diversity, Goodwill and Excellence. With a focus on cross-cultural awareness and cooperation, BRIDGE is the Bureau’s diversity and inclusiveness development group. BRIDGE supports several programs within the Bureau: recognition, PEER, and a variety of activities to enhance the workplace climate.

We continue to improve the Bureau’s internal communications.

Goals for internal communications include helping the Bureau become more of a learning organization with information flowing freely and making sure that it is available in a variety of ways and media. In June 2011 a formal pilot, involving approximately 75 staff in Operations and Engineering was launched using a collaboration tool: the pilot is continuing and has expanded. The tool allows for:

o Yellow pages of employees to allow employees to find experts within the Bureau for solving problems. o A forum for posting questions and tapping into the knowledge of staff. o Wikis for documenting knowledge and information, and making it readily available. o Team sites for project teams.

103

Attachment A

Strategic Plan

104 105 1 portland water bureau strategic plan | 2008-2011 Water Bureau Statement of Vision, Mission and Values Customer Focused, Motivated, Innovative, Professional, Stewardship

Vision The Portland Water Bureau provides the highest quality water, customer service and stewardship of the critical infrastructure, fiscal, and natural resources entrusted to our care. We enhance public health and safety and contribute to the economic viability and livability of the Portland metropolitan region. We are a recognized leader among water service agencies across the country.

Mission • To provide reliable water service to customers in the quantities they desire and at a quality level that meets or exceeds both customer and regulatory standards

• To provide the highest value to customers through excellent business, management, and operational practices, and appropriate application of innovation and technology

• To be responsible stewards of the public’s water infrastructure, fiscal and natural resources

• To provide the citizens and the City Council with a water system that supports their community objectives and overall vision for the City of Portland

Values Customers Keep the needs and desires of our customers in the forefront of our thoughts and actions Service Contribute responsively to the welfare of the community Financial Health Maintain fiscal integrity, undertake sound financing practices and ensure auditable results Recruit, maintain, motivate and retain a highly qualified, diverse and committed workforce; Employees and provide a safe work environment Partnership Partner with our community, our customers and regional water interests Leadership Focus on goals, results and accountability while promoting human health and development Responsiveness React positively, cooperatively, and efficiently Effectiveness Make the most appropriate use of resources and infrastructure Communication Share information and knowledge openly Flexibility Adapt to new, different and changing requirements Equity Ensure fair treatment and service to all Protect the natural environment so its benefits are available to meet today’s needs as Stewardship well as those of future generations

106 2 portland portland water water bureau bureau strategic strategic plan plan | | 2008-2011 2008-2011 The daily mission of the Water Bureau Statement of Vision, Mission and Values Portland Water Bureau is to deliver Customer Focused, Motivated, Innovative, Professional, Stewardship “the best drinking water in the world” to the Portland metropolitan area.

The Water Bureau’s Management Team has prepared this strategic plan to accomplish three key goals: n to more clearly link the Bureau’s mission, vision and values to the work we do every day n to guide the choices we make and the results we deliver n to pledge to our customers an excellent product and excellent service The plan defines practical achievable steps to act on these goals over the next three years. The strategies are consistent with direction provided by Randy Leonard, our Commissioner-in-Charge, and are responsive to the extensive input we have received from the Portland community since 2005. This strategic plan adopts for the first time a set of “key service level indicators.” These service levels respond to a global trend for water utilities to provide greater transparency and accountability with a focus on results for customers. The Water Bureau will collect data to measure results, report those results at least annually, and use what we learn to guide management decisions and resource allocations. The plan also recognizes a number of other trends and issues in the water utility business and in the Portland community. Prudent care of our aging infrastructure will require paying greater attention to repair and replacement, and to making risk-based investments in maintenance. Addressing our infrastructure needs will take place in a financial environment challenged by inflation of basic costs and increasing customer sensitivity to rising rates. We’ve also heard two messages loud and clear from the Portland community that we have always known to be true: our customers value local control and self-determination, and they take great pride in unfiltered Bull Run water. These values have been front and center in the recent controversies over federal requirements affecting our open reservoirs and treatment of our water supply. I am confident in the Water Bureau’s ability to continue to deliver the “best water in the world” and to meet the challenges before us. We will do so guided by the strategies in this plan.

David G. Shaff Administrator, Portland Water Bureau

107 2 portland water bureau strategic plan | 2008-2011 portland water bureau strategic plan | 2008-2011 History and Context for this Plan

This strategic plan reflects direction that began to be put in place in 2005. In January of that year, the bureau published the current Vision-Mission-Values statement. In September, the bureau held a Budget summit attended by about 140 employees and citizens. Needs identified at the summit included: n Replace obsolete infrastructure n Increase maintenance of existing infrastructure n Improve infrastructure by upgrading facilities, technologies or systems n Improve training, succession planning and other workforce development activities n Improve other support systems or resources n Improve data management systems to better support operations, construction and system planning and development n Improve or enhance existing approaches, capacity and/or performance to better serve customers n Expand the use of technology to improve efficiency and effectiveness n Change current practice to reduce costs without significantly affecting service levels The bureau also established a citizen/employee budget committee and, beginning in October 2005, prepared the FY 06-07 and FY 07-08 budgets using the committee process. During this period, the bureau’s budget was organized into 22 programs to better align with an asset management approach. Since then, the bureau has published program summaries and asset condition reports to increase transparency and accountability about needs, results and expenditures.

Since 2005, a series of plans, agreements and assessments have been completed that help set the stage for this strategic plan: n 2006 QualServ self assessment and peer review n 2006 contracts signed with 19 wholesale water customers (5- to 20-year durations) n 2007 Distribution System Master Plan n Asset Status and Condition reports, and Asset Management Plans n 2008 Habitat Conservation Plan for the Bull Run Water Supply n 2008 Water Management and Conservation Plan (per OWRD Div 86 requirements)

In addition to the vital work we do every day, the bureau has also accomplished a number of water system and service improvements since 2005. These include installing new mains downtown as part of the transit mall project, replacing aging trestles for our water supply conduits, instituting online and credit card options for paying bills, and opening five hydroparks. The results of all of these efforts created a foundation from which the Water Bureau Management Team developed a series of strategic objectives with associated implementation tactics, as well as a set of key service level indicators. This strategic plan is intended to help guide the bureau during the 2008-2011 time period, and will be updated thereafter.

108 4 portland portland water water bureau bureau strategic strategic plan plan | | 2008-2011 2008-2011 Strategic Objectives and Related Tactics for the Next Three Years (2008-2011)

Strategic objective: Provide excellent quality water for our customers Tactic: Reorganize and update water quality functions and staffing, including appointment of a Water Quality Manager Tactic: Improve distribution system water quality using proactive monitoring and unidirectional flushing Tactic: Update Bull Run watershed protection and maintenance procedures and agreements based on the 2007 Bull Run Agreement with the Mt. Hood National Forest

Strategic objective: Improve responsiveness to customer needs and promote engagement of the community Tactic: Implement monthly billing to increase convenience for customers and respond to expectations for more manageable total costs (water, sewer and stormwater) per bill Tactic: Use a variety of means to collect customer feedback and assess current customer needs. Design and implement customer service improvements to respond to those needs. Tactic: Promote community engagement by developing and implementing a bureau-wide public involvement plan, particularly for capital projects Tactic: Increase number of maintenance districts to provide better customer service and improved accountability

Strategic objective: Improve maintenance of aging water system infrastructure, including repairs, replacements and upgrades Tactic: Continue to implement a risk-based asset management approach to assist in managing operations, construction and capital planning (including business cases and reliability- centered maintenance, RCM) and to thereby improve service effectiveness with the available resources Tactic: “Right-size” the construction crews to better match size and skill composition of the crew to the project need Tactic: Improve availability and accuracy of key system data, including deployment of the first phase of mobile technology and completion of GIS mapping

109 4 portland water bureau strategic plan | 2008-2011 portland water bureau strategic plan | 2008-2011 Strategic objective: Comply with federal regulations using practical, locally-driven solutions Tactic: Pursue an administrative variance and/or legislative alternatives to LT2 requirements for Bull Run treatment and open finished water reservoirs. Complete designs for treatment facilities and obtain state approval of plans for retirement of open reservoirs – to implement if administrative and legislative efforts are not successful. Tactic: Implement Bull Run Habitat Conservation Plan as adopted by City Council and approved by the National Marine Fisheries Service

Strategic objective: Employ efficient and effective management practices Tactic: Create a key service level indicators “dashboard” for use by the bureau’s Management Team. Assign staff to collect trend data for each indicator. Evaluate trends quarterly and make necessary adjustment decisions. Tactic: Implement financial policies to manage water rate volatility and control mid-year cost increases Tactic: Complete exchange of 2,500 acres with USFS in Bull Run watershed to better align the bureau’s land ownership in the Bull Run Watershed Management Unit with our water supply mission Tactic: Maintain and improve partnerships with key City bureaus (Parks, PDOT and BES) to encourage upfront collaboration, especially on infrastructure planning Tactic: Modernize and improve tools for exchanging information among employees (e.g., intranet, Filenet, Synergen)

Strategic objective: Continue to invest in recruiting, retaining and developing a knowledgeable, multi-skilled and culturally-competent workforce Tactic: Provide targeted training, mentoring and coaching on leadership, supervision and management, communication, and customer service skills and expectations Tactic: Develop and implement knowledge transfer strategies for key system areas and functions Tactic: Identify critical positions likely to become vacant through retirements and other turnover, and develop effective recruitment and succession strategies Tactic: Implement Diversity Development Action Plan to increase employee engagement and workplace excellence Tactic: Implement Affirmative Action Plan to increase diversity of the bureau’s workforce and contracting pool, including active outreach and programs to overcome barriers

110 6 portland portland water water bureau bureau strategic strategic plan plan | | 2008-2011 2008-2011 Strategic objective: Continue to incorporate sustainability into the bureau’s everyday work Tactic: Implement new rate structure to respond to community values supporting water conservation Tactic: Implement Sustainability Action Plan and update annually Tactic: Develop and implement a carbon emissions mitigation strategy. Continue to make improvements in energy-efficient operation and design. Increase both use and generation of renewable energy.

Strategic objective: Increase flexibility and preparedness to meet future challenges Tactic: Complete updated long-term water supply planning. Evaluate future supply as compared to anticipated demands, impacts of global climate change, and state and federal regulations. Define the roles that Bull Run, groundwater and water conservation will play in our supply future. Tactic: Establish principles to guide future decisions about wholesale contracts for both existing and potential new customers Tactic: Estimate costs and define priorities for future infrastructure investments (based on analysis of asset status and condition, and definition of desired service levels) Tactic: Enhance security throughout the water system. Modernize security practices and infrastructure. Tactic: Continue to improve emergency preparedness, including participation in regional and state cooperative programs Tactic: Continue to participate in national/regional partnerships on Climate Change to share information and create better decision support tools

111 6 portland water bureau strategic plan | 2008-2011 portland water bureau strategic plan | 2008-2011 Key Service Level Indicators

These indicators were selected with four purposes in mind. The first is to pledge a level of service to our customers, for whom we will track progress and report results. The second is to help maintain focus on delivering results on the strategic objectives and tactics described in the plan. The third is as a management tool to help allocate resources and to enable course corrections, both mid-year and over the three-year term of the plan. The fourth purpose is to measure our service in comparison to other similar utilities recognized for achieving “best practice.”

Category Service Level Indicator

Water • 100% compliance with state and federal water quality regulations Quality

Customer • 75% give High or Very High rating on Auditor’s SEA survey Service • Respond to customer inquiry or request within 5 business days • Answer 80% of calls within 60 seconds • Fewer than 7 complaints per 1000 customers per year • No more than 5% of customers out of water for more than 8 hours a year • No customer out of water more than 3 times per year • Complete 90% of service installs within 15 days • At least one working hydrant within 500 feet of service connection • Maintain minimum pressure of 20 pounds per square inch (psi) during normal demands • Complete mandatory projects on schedule

Financial Health • Maintain AA1 bond rating for revenue bonds • Meet or exceed planned debt service coverage of 1.90 on First Lien Bonds and 1.75 on both First and Second Lien Bonds

112 8 portland portland water water bureau bureau strategic strategic plan plan | |2008-2011 2008-2011 Category Service Level Indicator

Infrastructure • Achieve continuous improvement in maintaining assets by completing Management two steps per year in the progression of maintenance “best practice” • Meet at least 80% of standards established for inspection, testing, repair and replacement of assets that are identified as medium, high or extreme risk • 80% of infrastructure projects meet at least one of a defined set of investment criteria (e.g., total life cycle cost, cost-benefit ratio, cost-risk reduction ratio)

Workforce and • 50% of employees report they are fully engaged in and enthusiastic Workplace about their work Excellence • Maintain OSHA SHARP certification • 60% of promotional vacancies are filled with internal candidates • Workforce diversity mirrors diversity in the Portland community

Conservation and • Per capita residential water use in retail service area remains Sustainability steady or declines • Technical assistance results in a median 25% water savings by participating industrial and commercial customers • Bureau’s carbon emissions are reduced from 2007 levels • Percentage of energy generated from renewable sources increases from 2007 levels

113 8 portland water bureau strategic plan | 2008-2011 portland water bureau strategic plan | 2008-2011 Portland Water Bureau 1120 SW 5th Avenue, Room 600 Portland, OR 97204-1926 Phone: 503-823-7404 The City of Portland will make reasonable accommodation for people with disabilities. Please notify us no less than five (5) business days prior to the Customer Service: 503-823-7770 event by phone at 503-823-7404, by the city’s TTY at 503-823-6868, or by the Web site: portlandonline.com/water Oregon Relay Service at 1-800-735-2900. Randy Leonard, Commissioner 09/2008 David G. Shaff, Administrator

114 Attachment B

Comments to the Portland Water Bureau On-line survey

115 116

Attachment C

Customer Bill of Rights

117 118

Attachment D

Water Line Customer Comment Card

119 You recently had contact with the Portland Water Bureau Water Line for information or help with a water related question.

We would like to know how you felt about the assistance and information you received. Please take a moment to complete the attached survey (please see the reverse side) and drop it in the mail.

Thank you for your time. We will use this information to help us provide better customer service.

Victoria Mercer Administrative Supervisor The Water Line (503) 823-6996

How did you contact The Water Line? o Phone call o Email to Portland Water Bureau web page

What sort of issue was this? o Water quality problem o Water pressure problem o Request for information o Other

How would you rate your contact with The Water Line? o Excellent o Satisfactory o Neither good nor bad o Poor, unable to help

Comments ______120

Hydroelectric Power Division FY 2013-14 Requested Budget

February 4, 2013

HYDROELECTRIC POWER DIVISION

TABLE OF CONTENTS

Hydroelectric Power Division 1

Hydroelectric Power Operating Fund (601) 2

Hydroelectric Power Bond Redemption Fund (611) 4

Hydroelectric Power Renewal and Replacement Fund (618) 5

Decision Package (OMF IA Add Backs) 6

Others Program Summary 7

INTENTIONALLY LEFT BLANK

Portland Water Bureau Public Utilities Service Area PowrecirtceloeHdry Hydroelectric Power

Description The Hydroelectric Power program provides for the administrative, operational, and regulatory oversight activities as required for the Portland Hydroelectric Project (PHP). Program staff members provide the day-to-day oversight and coordination for the operation of the PHP which includes the control of the levels in the City's Bull Run reservoirs, the withdrawal of water from those reservoirs, and the release of water downstream for compliance with in-stream regulatory flow targets. Additionally, the program coordinates all issues associated with the sales of generated power to PGE, the administration of the PHP's revenue bonds and related trust indenture requirements, and all state and federal regulatory requirements associated with both the PHP and the Mt. Tabor Hydroelectric Project.

Goals This program supports the City goal of delivering efficient, effective, and accountable municipal services. It also supports the City goal of protecting and enhancing the natural and built environment, particularly with respect to its oversight and coordination of dam safety issues and the ongoing operation of the PHP on the Bull Run River.

Performance In FY 2011-12, the amount of power generated by the PHP was 120% of its long- term annual average. For FY 2012-13, that generation is projected at 68% of average due to construction work at the Bull Run Dam No. 2 Intake Towers. During FY 2012-13, this program's staff will have provided all required oversight and support for the three hydroelectric power projects and the seven dams that it now oversees and monitors.

Changes to Services In FY 2012-13, Hydroelectric Power transferred $500,000 in Hydroelectric Power and Activities Operating Fund profits to the City's General Fund and in FY 2013-14 it will transfer $300,000.

Requested No Actual Actual Revised DP Requested FTE & Financials FY 2010-11 FY 2011-12 FY 2012-13 FY 2013-14 FY 2013-14

FTE 2.15 3.00 3.00 2.25 2.25 Expenditures Hydroelectric Power 556,523 518,150 878,328 725,887 729,571 Total Expenditures 556,523 518,150 878,328 725,887 729,571

Actual Actual Yr End Est. Base Target Performance FY 2010-11 FY 2011-12 FY 2012-13 FY 2013-14 FY 2013-14

Effectiveness Power Sold to PGE (mwh) 103,301 103,188 58,500 83,100 83,100 Efficiency Transfer of Hydropower Profits to General Fund $250,000 $300,000 $500,000 $300,000 $300,000

City of Portland, Oregon – FY 2013-14 Requested Budget 1 Fund Summary Hydroelectric Power Operating Fund Public Utilities Service Area

Public Utilities Service Area Hydroelectric Power Operating Fund Requested Actual Actual Revised No DP Requested Proposed FY 2010-11 FY 2011-12 FY 2012-13 FY 2013-14 FY 2013-14 FY 2013-14 Resources Miscellaneous 668,352 927,133 921,100 850,100 850,100 Total External Revenues 668,352 927,133 921,100 850,100 850,100 Fund Transfers - Revenue 123,325 50,046 125,311 125,000 125,000 Interagency Revenue 54,015 61,856 68,500 68,500 68,500 Total Internal Revenues 177,340 111,902 193,811 193,500 193,500 Beginning Fund Balance 338,629 266,369 359,200 249,944 249,944 Total Resources 1,184,321 1,305,404 1,474,111 1,293,544 1,293,544 Requirements Personnel Services 234,999 251,162 279,255 297,894 297,894 External Materials and Services 146,834 91,163 378,400 207,500 207,500 Internal Materials and Services 174,690 175,136 220,673 220,493 224,177 Total Bureau Expenditures 556,523 517,461 878,328 725,887 729,571 Debt Service 14,105 15,243 17,185 19,110 19,110 Contingency 0 0 43,880 214,195 210,511 Fund Transfers - Expense 347,324 390,794 534,718 334,352 334,352 Total Fund Expenditures 361,429 406,037 595,783 567,657 563,973 Ending Fund Balance 266,369 381,906 0 0 0 Total Requirements 1,184,321 1,305,404 1,474,111 1,293,544 1,293,544 Fund Overview The Hydroelectric Power Operating Fund supports the administration and monitoring of the Portland Hydroelectric Project (PHP) through the Portland Water Bureau's Hydroelectric Power Division. Except for debt service on PHP revenue bonds, all expenditures needed to meet the City's responsibilities for the PHP are paid by this fund.

Resources The primary revenue source for this fund is power sales payments made to the City by Portland General Electric (PGE) for the purchase of electricity that is generated at the PHP. The power sales revenue received by this fund consists of two PGE payments:

‹ PGE pays this fund in an annually adjusted amount to reimburse the City's expenses associated with administration, regulatory compliance, and water quality monitoring related to PHP operations.

‹ PGE pays this fund a second amount that serves as a profit payment tied to the actual amount of power generated annually by the PHP. In an average year, this amount is about $230,000.

Managing Agency Portland Water Bureau

City of Portland, Oregon – FY 2013-14 Requested Budget 2 Hydroelectric Power Operating Fund Fund Summary Public Utilities Service Area

Significant Changes From Prior Year

Payments from PGE In FY 2013-14, the amount of reimbursement from PGE to the City that is dedicated for administration, regulatory compliance, commercial insurance, and water quality monitoring expenses related to the PHP is projected to be $693,400. PGE pays the City annually for profit on power generated by the PHP which, for FY 2013-14, will provide a profit payment to the City of approximately $151,500. This payment for FY 2013-14 will be lower than normal because one of the two PHP powerhouses will have been kept off-line for 14 months while the Portland Water Bureau modifies the North Intake Tower at Bull Run Dam No. 2.

Maintenance to the In FY 2013-14, the Hydroelectric Power Operating Fund has budgeted $125,000 for PHP cash transfers from the Hydroelectric Power Renewal and Replacement Fund to this fund as well as an equal amount of expenditures to reimburse PGE for their costs for ongoing repair and replacements to the PHP facilities. These cash transfers and reimbursements are only made in response to work actually done by PGE for the PHP.

City of Portland, Oregon – FY 2013-14 Requested Budget 3 Fund Summary Hydroelectric Power Bond Redemption Fund Public Utilities Service Area

Public Utilities Service Area Hydroelectric Power Bond Redemption Fund Requested Actual Actual Revised No DP Requested Proposed FY 2010-11 FY 2011-12 FY 2012-13 FY 2013-14 FY 2013-14 FY 2013-14 Resources Miscellaneous 2,714,339 2,748,375 2,736,337 2,753,300 2,753,300 Total External Revenues 2,714,339 2,748,375 2,736,337 2,753,300 2,753,300 Total Internal Revenues 00000 Beginning Fund Balance 4,420,808 4,418,337 4,432,710 4,517,852 4,517,852 Total Resources 7,135,147 7,166,712 7,169,047 7,271,152 7,271,152 Requirements Total Bureau Expenditures 00000 Debt Service 2,716,810 2,711,764 2,696,058 2,699,138 2,699,138 Debt Service Reserves 0 0 2,761,824 2,756,452 2,756,452 Total Fund Expenditures 2,716,810 2,711,764 5,457,882 5,455,590 5,455,590 Ending Fund Balance 4,418,337 4,454,948 1,711,165 1,815,562 1,815,562 Total Requirements 7,135,147 7,166,712 7,169,047 7,271,152 7,271,152 Fund Overview The Hydroelectric Power Bond Redemption Fund pays the debt service due on revenue bonds that were issued to finance construction of the Portland Hydroelectric Project (PHP). This fund is required by the PHP power sales agreement between the City and Portland General Electric (PGE). The trustee for the City's Hydroelectric Power Revenue Refunding Bonds holds the assets in this fund and serves as paying agent for the bonds. As partial payment for the sale of electricity that is generated at the PHP, this fund receives monthly payments from PGE for the annual net debt service due on the City's Hydroelectric Power Revenue Refunding Bonds. Requirements include debt service to be paid on the outstanding Hydroelectric Power Revenue Refunding Bonds and a debt service reserve held in ending fund balance.

Managing Agency Portland Water Bureau

City of Portland, Oregon – FY 2013-14 Requested Budget 4 Fund Summary Hydroelectric Power Renewal Replacement Fund Public Utilities Service Area

Public Utilities Service Area Hydroelectric Power Renewal Replacement Fund Requested Actual Actual Revised No DP Requested Proposed FY 2010-11 FY 2011-12 FY 2012-13 FY 2013-14 FY 2013-14 FY 2013-14 Resources Miscellaneous 223,940 389,224 347,340 207,600 207,600 Total External Revenues 223,940 389,224 347,340 207,600 207,600 Total Internal Revenues 00000 Beginning Fund Balance 9,303,360 9,404,997 9,686,500 10,019,530 10,019,530 Total Resources 9,527,300 9,794,221 10,033,840 10,227,130 10,227,130 Requirements Total Bureau Expenditures 00000 Contingency 0 0 9,908,840 10,102,130 10,102,130 Fund Transfers - Expense 122,303 49,434 125,000 125,000 125,000 Total Fund Expenditures 122,303 49,434 10,033,840 10,227,130 10,227,130 Ending Fund Balance 9,404,997 9,744,787 0 0 0 Total Requirements 9,527,300 9,794,221 10,033,840 10,227,130 10,227,130 Fund Overview The Hydroelectric Power Renewal and Replacement Fund is a sinking fund for the Portland Hydroelectric Project (PHP). It provides resources for the repair and replacement of major equipment and facilities that become damaged or worn out. The existence of this fund is required by the PHP power sales agreement between the City and Portland General Electric (PGE), and its assets are held by the trustee for the City's Hydroelectric Power Revenue Refunding Bonds.

Managing Agency Portland Water Bureau Significant Changes From Prior Year In FY 2013-14, this fund has budgeted $125,000 for cash transfers to the Hydroelectric Power Operating Fund to pay for ongoing repair and replacements of the PHP facilities.

City of Portland, Oregon – FY 2013-14 Requested Budget 5 Decision Package Summary

Bureau: Portland Water Bureau Priority: Type:

Decision Package: WA_04 - OMF IA Add Backs - Hydropower Program:Hydroelectric Power

FY 2013-14 FY 2013-14 FY 2013-14 FY 2014-15 FY 2015-16 FY 2016-17 FY 2017-18 Requested Requested Requested Estimated Estimated Estimated Estimated 1 Time DP Ongoing DP Total DP Budget Budget Budget Budget

EXPENDITURES Internal Materials and Services 3,684 0 3,684 0 0 0 0 0 Contingency (3,684) 0 (3,684) 0 0 0 0 0 TOTAL EXPENDITURES 0 0 0 0 0 0 0 0 Description: This decision package provides for the proposed group of add back requests from the internal services bureaus that will provide services to Hydropower in FY 2013-14.

Expected Results:

6 City Bureau: Portland Water Bureau - Hydroelectric Power Division Program Summary Template

1. Program Title 3. Staff (FTE) 4. Requirements 6. Resources 8. Program Rankings 5. Percent Manager 2. Program Description 7. Output or Efficiency Measure(s) Limited Admin Rates, Fees & Federal, State Phone # Regular Operating Capital General Fund Other Bureau BAC Term IAs & Local Hydroelectric Power Provides for all administrative, operational and 2.25 729,571 25 729,571 1) Additional annual revenue provided to 11 Frank Galida regulatory oversight activities as required for the General Fund 503-823-7517 Portland Hydroelectric Project (PHP) and the Mt. FY 2011-12 Actuals: $300,000 Tabor Hydroelectric Project. FY 2013-14 Target: $300,000

2) PHP power generation sold to PGE FY 2011-12 Actuals: 103,188,000 kwh FY 2013-14 Target: 58,500,000 kwh Fund Level Expenses This line contains the total fund level expenses, NA NA 563,973 NA 563,973 NA NA NA which includes all debt service, cash transfers, contingency, and unappropriated fund balance.

Total 2.25 - 1,293,544.00 - - - - 1,293,544

7