WATER/WASTEWATER TASK FORCE MEETING

May 13, 1999

Salem Public Library - Anderson Auditorium

1) CALL TO ORDER

The meeting was called to order by Councilor Paul Wulf.

2) INTRODUCTIONS

Introductions were made. Members, staff, and citizens were in attendance. See attached sign-in sheet for member, staff, and citizen sign-in. Member Bob House was also present.

Absent members were Polk County Commissioner Mike Propes, Tom Zepp, Patty Milne, and Steven Anderson. We have no representative from commercial business at this time.

Citizens in attendance included Ed Gerding (Oregon Cherry Growers), Mark Fields (Suburban East Salem Water District), Charley Waters (Highland Neighborhood Association), Carolyn West, Mike Kerr (Capitol Farms), Joyce Erovick (Northeast Neighbors - citizen).

Staff present included Frank Mauldin (Public Works Director), Diane Taniguchi- Dennis (Wastewater Services Manager), Pat Dodge (Management Analyst II), Karl Goertzen (City Engineer), Steve Downs (Utilities Planning Engineer), Rolland Baxter (Operations Services Manager), Randy Pecor (Wastewater Collection Superintendent), Ken Roley (Facilities Engineer).

Also attending were Tom Davis, Consultant, Jim Breithaupt (Moore, Breithaupt & Associates), and Loren Collins (Chair, Stormwater Advisory Committee).

3) CITIZEN INPUT

None at this time.

4) MINUTES

Minutes from April 8, 1999, meeting were approved unanimously with one correction to page 2, paragraph 6 _ Mike Kerr's statement should read “ . . . It is currently a legislative priority for Oregon Farm Bureaus to oppose all urban utility siting.”
5) STORMWATER FINANCING OPTIONS

Loren Collins, Chair of the Stormwater Advisory Committee, was introduced to update the Stormwater Financing options. He gave a brief overview of the work of the Stormwater Advisory Committee which started in September 1996. He introduced Jim Breithaupt who presented information contained in Issue Paper #6, regarding Stormwater Financing (the information presented by overhead presentation is attached). The information reviewed included the following recommendations: 1) that there be a separate stormwater charge (as recommended by the Cost of Service Analysis Issue Paper #3) and that this system be allocated to users based upon their proportionate usage of the system; 2) operations and maintenance should be fully funded; 3) there should be a stormwater systems development charge based upon the current dollar of the system; 4) that the dollars from the stormwater system development charge be used first to reduce any bond size and then remaining dollars go to debt service requirements. (as part of the SDC, where onsite detention is found to be a better approach for certain properties in town, there should be a credit applied for those developers or that a perpetual life capital replacement program should be implemented), and 5) that the SDCs and separate stormwater charge be re- evaluated at least every two years in order to meet current requirements.

Jim Breithaupt presented more detailed information including an introduction to the problem, revenue sources, financing methods, and recommendations.

Discussion of the problem included inadequate funding for Stormwater Management, the current shortfall in stormwater system maintenance, and capital costs which are currently at $750K and increasing. Revenue sources recommended include stormwater fees and stormwater system development charges. Methods of financing discussed are pay-as-you-go financing, perpetual life funding, and debt financing - revenue bonds.

Recommendations included: 1. Implement a stormwater charge, 2. Use rate making principles in developing fees and charges, 3. Fund stormwater operations and maintenance fully, 4. Develop stormwater SDCs to recover full costs, 5. SDCs should be calculated on current cost basis, 6. Stormwater fees and charges should be adjusted regularly, 7. SDC revenues used first for pay- as-you-go, then debt service, 8. Fair and equitable developer credits should be implemented, 9. Develop and fund a Perpetual Life capital replacement program, 10. Stormwater charges should be imposed on all users, 11. Extension of facilities/service should support City Growth Policies.

Steve Downs stated that the Stormwater Advisory Committee is looking at wrapping up and the big picture on the CIP will be seen by the end of June.


6) SEWER LATERAL FINANCING OPTIONS

Diane Taniguchi-Dennis, City of Salem Wastewater Services Manager, was introduced to present updated information on sewer lateral financing options. Ms. Dennis gave a detailed presentation from overhead material, copies of which were distributed at the meeting. The discussion topics included: background information, sanitary sewer system and wastewater treatment wet weather issues, sanitary sewer system general facts and detailed facts, sewer lateral detailed facts, sewer lateral program needs in the next 10-20 years, alternatives for residential sewer lateral replacement responsibility, and policy recommendations for Task Force consideration.

Residential sewer lateral replacement policy alternatives included: 1) the existing policy, 2) full City responsibility, 3) joint responsibility, and 4) enhanced existing.

The recommendations presented for Task Force consideration were:

1) Task Force confirmation that it is a priority objective for the City of Salem to reduce sanitary sewer overflows to meet State Water Quality standards for bacteria by providing adequate hydraulic capacity in the Sanitary Sewer System and Wastewater Treatment to effectively transport and treat peak wet weather flows, and providing effective infiltration and inflow reduction programs.

2) The Task Force confirm that an effective infiltration and inflow reduction program requires program elements which address sewer main rehabilitation/replacement, sewer lateral replacement, and removal of extraneous flow.

3) The Task Force confirm that the removal of extraneous water and replacement of residential sewer laterals is a critical component of an effective infiltration and inflow reduction program.

4) The Task Force approve the responsibility for sewer lateral replacement is as outline in Alternative 4: Enhanced Existing Program.

It is the property owner's responsibility to replace the sewer laterals from the clean out to the sewer main unless, the sewer lateral replacement qualifies for one of the Infiltration and Inflow Reduction Programs:

Existing:

* Positive Protection Program w/ lateral replacement
* Sewer Main Rehab/Replacement projects w/ lateral replacement

New:

* CIP Sewer Lateral Replacement Program
This alternative allows maximum project design and construction flexibility with the least administrative burden and conflict with property owners. Creates a more aggressive I/I reduction program.

During her presentation, Ms. Dennis also discussed the Orangeberg pipe that was used during the 1940s thru 1950s. This pipe was acceptable for sanitary sewer service lateral until 1994 under the Uniform Plumbing Code, but was generally not used in Oregon after about 1960. (more details are found in the overhead material used for presentation, copy attached).

7) FUTURE MEETINGS

Next meeting will be June 10, Anderson Auditorium, 11:30 to 1:30. The subject for discussion will again include Sewer Lateral Policy and possibly more COSA work, more stormwater work.

Chairperson Wulf instructed the Task Force to, amongst themselves, think of possible different alternatives and go to staff (Frank Mauldin) to get this in writing for discussion at the next meeting. The next necessary item of discussion regarding COSA is the Feasibility Study.

8) OTHER

Resignation of Tom Zepp was announced. No other items for discussion.

9) ADJOURN

Meeting adjourned at 1:20 p.m.

These minutes are transcribed from notes and the tape recording of the Task Force meeting on May 13, 1999, as an overview of the meeting. They are not verbatim. The tape recorded meeting is available for review in the Office of the Public Works Director. The attachments are to the file copy only. Copies of the attachments were distributed at the meeting and by mail to those unable to attend the meeting

Linda Nelson, Staff Assistant II
May 19, 1999

Attachments:
Attendance Sheet
Overhead Materials (file copy only)
Tom Zepp Resignation Letter (file copy only)