BOARD OF COMMISSIONERS 1850 SW 170 TH AVENUE DECEMBER 16, 2009 REGULAR MEETING MINUTES

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1 BOARD OF COMMISSIONERS 1850 SW 170 TH AVENUE DECEMBER 16, 2009 REGULAR MEETING MINUTES Present: Management Staff: Staff: Public: Note: Commissioners: Richard Burke, Jim Doane, Jim Duggan, Marilyn McWilliams, Dick Schmidt Greg DiLoreto, Patty Rupp, Clark Balfour Todd Heidgerken, Mark Knudson, Brenda Lennox, Bernice Bagnall, Dale Fishback, Bob Shields, Accounting Supervisor Gary Wallis, Finance Director - City of Wilsonville, Julie Desimone and Scott Johnson, Moss - Adams LLP Unless otherwise indicated, the words Motion carried mean the action of the Board of Commissioners was unanimous. President Burke called the Regular meeting to order at 7:03 P.M. REPORTS BY GENERAL MANAGER AND MANAGEMENT STAFF General Manager DiLoreto explained that the Finance Department had recently received notification from the Government Finance Officers Association announcing that the District would receive the Distinguished Budget Presentation Award for the Budget. He indicated that this is a prestigious award and recognizes the clarity with which the public can understand the presented budget information. General Manager DiLoreto indicated that he would be out of the office beginning December 23, returning January 4. Manager of the Office of Communication and Public Relations, Todd Heidgerken would act as AIC December 23 and 24. Chief Engineer, Mark Knudson would act as AIC December There will not be a Work Session on January Update City of Portland Boil Water Event General Manager DiLoreto delivered a report to the Board regarding the District s recent opportunity to test its emergency management procedures over the Thanksgiving Holiday. He explained the circumstances of the event and pointed out that it was not by design. On November 26, a routine total coliform compliance sample collected from by the Portland Water Bureau (PWB) at the outlet to Washington Park, reservoir 3, tested positive for E. coli. A resample was collected on November 27, which again tested positive. Page 1 of 5

2 The analysis of the resample, completed on November 28 was again positive for E. coli, the upstream and downstream samples were both negative for coliforms. This constituted a Tier 1 violation of the total coliform rule and required the PWB to issue a boil water notice for those affected customers. This was where TVWD came in. General Manager DiLoreto explained that TVWD customers were never affected. All of TVWD s water from the PWB is delivered via the Washington County Supply Line, and not from any of the PWB s uncovered reservoirs. Unfortunately, in the early stages of this event, it was confusing to our customers and naturally, they called their water provider for information. Equally unfortunate, we did not have any information and were left in the dark. General Manager DiLoreto pointed out that this was a good news/ bad news event. The bad news was that the event happened in the first place. The good news was that it allowed the District, in a real life situation, to test emergency communications and customer service. District staff learned a lot. General Manager DiLoreto explained that at last week s Portland Bull Run Water Managers meeting, he had presented the PWB with ideas on how improvements could be made The approach taken was that this was a learning experience for both the PWB and TVWD. Dwelling on the problems of the event were only important as aids in helping to understand how TVWD could improve. General Manager DiLoreto read the ideas he had suggested to the PWB: Avoid testing before a holiday. Currently the PWB tests four days a week, and avoids Friday. The same should occur before a holiday. If the PWB wants to test before a holiday, they should notify the wholesalers so that preparations can be made. When testing, if the first test is positive let the wholesalers know so that they can prepare, should the second test also come up positive. Recognize that the PWB and wholesalers are all in the same media market. We requested that TVWD be allowed to look at their media message before it goes out. It is not the Districts intent to write it, although we are available to help, but rather to review the potential impact it may have and make them aware of that fact. When telling the public what areas are affected also include what areas are not affected. Work with the wholesale engineering staff so that as a utility, decisions could be made of how the event may impact the District. In this event, PWB staff made decisions for TVWD, and while this was done with the best intentions, it may have not been the decision TVWD would have made. Improve communications. PWB was using an outdated call our list from 2007 even though there is a 2009 list. Wholesalers need to go through the call out list and make sure the right people are listed, and prioritize the phone numbers listed for each person. In the Incident Command Center, there is a liaison officer. This was missing in this event and so there was not a number to call or a person to contact. Limited contact was made only because the District s staff happened to know people that we were able to connect at the PWB. Both the PWB and the wholesalers need to establish a liaison officer, preferably someone that knows TVWD. Page 2 of 5

3 General Manager DiLoreto pointed out that District staff also found a number of gaps in its own communications. It was the Thanksgiving holiday and none of the managers were carrying a company cell phone. As a result, TVWD will make the following changes: Establish a clear Direct Responsible Charge (DRC). Four employees have been identified for this position, Mark Knudson, Dale Fishback, Troy VanRoekel, and Dean Fritzke. The four hold a class IV Water Distribution Certificate and have management skills. They will rotate being on call, one week per month. They will not be replacing the duty person, but will be available should the duty person need a manager. Begin regular emergency management meetings, similar to our safety meetings. Personal cell phone number will be shared with managers and the DRC. Centralize and share the location of information critical to providing messaging to the public, including passwords, applications names, instructions, message templates. This would allow more than one person to be able to update our web page. Work with TVWD s after-hours answering service to review protocols, particularly related to messaging. Provide messaging and talking points in written form as soon as possible. President Burke indicated that he was pleased with District staff in terms of the manner in which they responded to the event. President Burke and Commissioner s Duggan and McWilliams spoke of their communication with concerned customers, and welcomed the procedures indentified by General Manager DiLoreto, should such an event occur in the future. Awards Banquet: General Manager DiLoreto asked the Board to add January 30, 2010 to their calendars, for the Annual Awards Banquet. COMMISSIONERS REPORTS OF MEETINGS ATTENDED AND COMMISSIONER TOPICS A report was given by each Commissioner of the meetings they attended during the month. There were no topics raised by the Board members. PUBLIC COMMENT ON ITEMS NOT ON THE AGENDA None. CONSENT AGENDA Commissioner McWilliams moved approval of the Regular Meeting Minutes of November 18, Commissioner Schmidt seconded the motion. The motion carried 4-0. Due to his absence from the November 18 meeting, President Burke abstained. COMPREHENSIVE ANNUAL FINANCIAL REPORT (CAFR) FOR THE YEAR ENDED JUNE 30, 2009, AND GOVERNMENT FINANCE OFFICERS ASSOCIATION AWARD OF EXCELLENCE IN FINANCIAL REPORTING FOR THE PREVIOUS YEAR S CAFR Presentation of 2008 CAFR Award Chief Financial Officer, Bernice Bagnall, introduced Gary Wallis, Finance Director with the City of Wilsonville, and a board member of the Oregon Municipal Finance Officers Association (OMFOA). Page 3 of 5

4 On behalf of the Government Finance Offers Association (GFOA), and the OMFOA, Mr. Wallis presented the Board with the Award of Excellence in Financial Reporting for the 2008 Comprehensive Annual Financial Report (CAFR). This is the 19 th consecutive award. He explained that the award represents the highest standards of reporting of financial information and disclosure, as well as consistency between governmental agencies nation wide. The document is available on the TVWD website. At the request of President Burke, Mr. Wallis presented the award to Ms. Bagnall on behalf of the Board. Ms. Bagnall thanked the TVWD Board for their continued support CAFR and Audit Report (Moss-Adams presentation material attached) Ms. Bagnall introduced Julie Desimone, CPA and Partner, and Scott Johnson, CPA, representing the auditing firm of Moss-Adams LLP to present the financial audit. Ms. Desimone began by describing the documents provided to the Board. She explained that the CAFR document is presently in draft form however, the final version would be available by the end of the year. Ms. Desimone provided an overview of Moss-Adams as an auditing firm, with a dedicated group specializing in utility audits. Mr. Johnson is a part of that group. Ms. Desimone referred to the draft Independent Auditor s Report on pages of the CAFR. She described the District s audit as clean or unqualified opinion, meeting Oregon Minimum Standards, with no exceptions or noncompliance found. She explained that this piece is important in that other agencies have the opportunity to review the financial health of the District for various reasons. Ms. Desimone referred to and clarified the draft report in the back of the CAFR document, which describes the District s favorable compliance and consistency in accordance with Oregon Minimum Standards. Mr. Johnson concluded the presentation. He indicated that there were no disagreements with the District s management staff and no consultations with other accountants for second opinions. There were no material weaknesses, or difficulties reported. Mr. Johnson noted two changes to the Government Accounting Standards Board (GASB) that would affect the District s next annual audit. These are GASB 51, relating to intangible assets such as water rights, and GASB 53, relating to derivative instruments, which may not apply to the District. Additional training for accounting staff would be available. Mr. Johnson pointed out that once the District s new financial reporting system is in place, inventory reporting and closing of reports would run more smoothly. Seeing no discussion of the Board, President Burke called for a motion to approve the Comprehensive Annual Financial Report for the Year Ended June 30, 2009, and accept the GFOA Award of Excellence in Financial Reporting for the previous year s CAFR. It was moved by Commissioner Doane and seconded by Commissioner Schmidt to approve the CAFR and accept the award, as described by President Burke. The motion carried. Page 4 of 5

5 UPDATE OF TVWD S WATER DEMAND PROJECTIONS (PowerPoint presentation attached) General Manager DiLoreto reported that the Tualatin Basin Water Supply Project (TBWSP) is moving along more slowly than expected. With notable changes in the economy and population, water projections have changed since the 2007 Water Master Plan Update, which included water demand projections through the year Chief Engineer, Mark Knudson, provided a PowerPoint presentation as an informational item and update to the Board as described by General Manager DiLoreto. Mr. Knudson covered the following forecasts and scenarios: 2007 Master Plan Forecasts 2007 Supply Plan Key Assumptions Scenario Development Forecast Assumptions Updated Forecasts Mr. Knudson pointed out that with the delay scenario of the TBWSP estimated completion date of 2016, the District would be in a favorable situation. In terms of the 2021 scenario, in order to meet population and demand projections, options and or a combination of options and strategies are being explored in order to fill the gap. Commissioner Schmidt pointed out that time will tell. For Commissioner McWilliams, Mr. Knudson clarified slide two of page two of the presentation material relating to population projections. In terms of the TBWSP Commissioner McWilliams asked if the District had looked at using additional water allocated of the Tualatin Valley Irrigation District. Mr. Knudson mentioned that this may be a scenario among many. President Burke thanked Mr. Knudson for his presentation. ADJOURNMENT There being no further business, it was moved by Commissioner Duggan and seconded by Commissioner McWilliams to adjourn the Regular Meeting at 8:12 p.m. The motion carried. BOARD OF COMMISSIONERS TUALATIN VALLEY WATER DISTRICT BY Richard Burke, President BY Marilyn McWilliams, Secretary Date Approved: January 20, 2010 Page 5 of 5