Joint Water Supply System Analysis

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Joint Water Supply System Analysis

Policymakers Workshop 1 Project Background
Joel Komarek Dennis Koellermeier November 14, 20
06
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Project Objectives

• Develop and evaluate options for possible
  formation of a joint water supply system
  
• Long-term supply for Lake Oswego Tigard
• Identify
• Preferred supply scenario
• Feasibility and costs of such a system
• Facility improvements
• Institutional arrangements

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Water Supply System Overview Lake Oswego

• Raw water intake on Clackamas River in Gladstone
• Up to 38 mgd of existing water rights
• Raw water pipeline under Willamette River
• 16 mgd water treatment plant in West Linn
• Finished water transmission line supplies city
  residents and wholesale customers
  

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Project Drivers Lake Oswego

• Input into decisions on future supply
  improvements
  
• Upgrades and expansion required within 5 years
• Existing intake, treatment plant and pipelines at
  capacity
  
• Existing infrastructure is over 40 years old
• Vulnerability of existing single source supply
  system
  
• Opportunity to spread fixed costs (capital and
  OM) over larger customer base
  
• Vulnerability of existing water rights

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Project Drivers Regional Benefits

• Redundancy of sources of supply
• Supply reliability
• Consistency with Regional Water Supply Plan
• Opportunity to optimize supply options
• Costs, wholesale water sales of surplus capacity
• Balancing environmental tradeoffs
• Momentum for increased regional cooperation
• Greater voice in regional water issues

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Water Supply System Overview Tigard

• Supply for Tigard Intergovernmental Water
  Board
  
• Water purchase agreements no ownership
• 10-year water supply agreement with Portland
• Leased capacity from Joint Water Commission
• Wholesale water purchase from Lake Oswego
• Existing Aquifer Storage Recovery wells
• Lake Oswego supply via Bonita Rd. Pump Station
• Willamette River water rights

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Project Drivers Tigard

• Input into decision on future water supply
• Ownership position provides key benefits
• Improved certainty of future rates
• Improved certainty of future supply
• Funding with system development charges
• Renewal of existing Portland agreement in 2016
  requires decision by June 2011
  
• Timing of needed supply improvements

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Current Status Where We Are

• Completed population demand forecasts
• Evaluated condition needs assessment
• Identified facility alternatives
• Identified permitting regulatory requirements
• Developed draft communication plan
• Reviewed governance options

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Current Status Where Were Going

• Finalize costs of improvement options
• Complete financial analysis rate impacts
• Refine supply scenarios, costs rates
• Present findings in report
• Obtain direction from policymakers

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Project Schedule

• Develop Costs Nov 20
• Financial Analysis Nov 27
• Refine Scenarios Dec 11
• Submit Draft Report Jan 8
• Policymakers Workshop 2 Jan / Feb

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Policymaker Involvement

• Joint Council Workshop 1 Supply Scenarios
• Project Overview
• Input on Options, Values Principles,
  Communication Plan, and Preliminary Findings
  
• Identify Opportunities, Concerns, and Needs
• Joint Council Workshop 2 Preferred Direction
• Review Updated Findings Costs
• Review Financial Analysis Rate Impacts
• Provide Direction

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Joint Water Supply System Analysis
Policymakers Workshop 1 Water Supply Needs

Mark Knudson November 14, 2006
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Water Supply Needs - Options

• Lake Oswego Go It Alone (Tigard Go It Alone)
• Lake Oswego Tigard Joint Supply

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Water Supply Needs

• Population Projections and Demand Forecasts

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Water Supply Scenarios

• Lake Oswego Only
• Scenario 1 Do Nothing 16 mgd not viable
• Scenario 2 LO Ultimate Demand XX mgd
• Lake Oswego Tigard Joint Supply
• Scenario 3 Senior Water Rights Only 32 mgd
• Scenario 4 Senior Junior Water Rights 38 mgd

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Joint Water Supply System Analysis
Policymakers Workshop 1 Preliminary Findings

Mark Knudson November 14, 2006
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Preliminary Findings - Intake
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Preliminary Findings - Summary
Required System Improvements
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Preliminary Findings Next Steps

• Develop costs for system improvements
• Conduct financial analysis - identify potential
  cost shares and resulting rates
  
• Prepare draft report
• Review results with staff and policymakers