Implementation of the Joint Operations

PlanRegionalization of the Water Resource

Carol BryckCapstone Project

Executive Masters of Public AdministrationPortland State UniversityAdvisor: Dr. Craig Shinn

Joint Operations Plan (JOP)The JOP is an agreement between:

Clackamas River Water (CRW) North Clackamas County Water Commission (NCCWC) South Fork Water Board (SFWB)

Purpose: Effective and efficient use of the water resource for the

benefit of all customers

Timeline: Signed July 2001 Not implemented

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Provisions of the JOPOptimizing the use of all three plants and major

pump stations

Optimizing power consumption

Facilitating expanded use of gravity flows and reservoir use

Increasing coordination among the plants

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Clackamas River Basin974 square miles of

watershed:Water flowTimothy Lake – up river

storageDams/water

flow/hydroelectric

Demands:Water demands within

the JOP participantsResidential/domesticIndustrialAgricultural

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See if Mike can make an electronic map showing four WTPs and city and district boundaries.

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Why is this important?Public Benefit

Availability of Water - a limited resourceCost effective provision of necessary resourcePotential increased equitable rate structures

Water Provider BenefitsCost savings on operationsDelay of high capital cost of infrastructureEfficient and effective operation

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Water Flows - with Trend Line

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Water Demands

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Capital Cost of ExpansionCapital cost for plant capacity expansion

estimated from $2 to $5 per gallon

5 million gallons per day would cost $10 million to $25 million

Estimated annual debt payment for $25 million bond20 year debt - $1.8 million per yearEvenly distributed to affected wholesale and retail

customers $2 to $3/month for the next 20 years

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Current Rates with Additional Cost of Capital

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Effect on PublicRate comparison doesn't include potential cost

increases for costs above debt coverage such as:Other capital projects for replacement of aging

infrastructure;Utilities, chemicals, other materialsPersonnel costs

medical insurance coverage, PERS rates, COLA increases per contracts,

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JOP INTERESTS

CRW – optimal plant operation, protection of territory boundaries and meeting water needs of customers – retail and wholesale

NCCWC – optimal plant operation and delivery of water to SWA, Oak Lodge and Gladstone

SFWB – optimal plant operation and delivery of water to Oregon City (current and future) and West Linn (current and future)

All – sufficient revenue to cover all fixed and variable costs

All – alternative source(s) of water if Clackamas River is compromised

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ImplementationMeeting those interests – cooperation and a

regional/rational approach to water production and delivery

Governance Sharing resources to the benefit of all participantsSharing technical expertise across regionManagement of each entity as a partner with the

other two

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Leadership Eliminate US versus THEM attitude

Partner on acquisition of alternative water connections/sources

Evaluate available expertise and partner for specialized servicesHydraulic Modeling Information TechnologyLab servicesGIS

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Joint OperationsOverall benefits of big picture thinking include:

Stewardship of the watershed and all users including:Lake Oswego-TigardEstacadaCity of Milwaukie and Rockwood PUD (on wells)

Reduced rate increases for customers – greater customer satisfaction

Delayed capital construction costs – particularly at the water treatment plants

Utilization of expertise without having to hire out – use the expertise available at any of the entities

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Joint Operations

Questions?

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Acknowledgements

My Family – no housework since September 2011

My cohort – the most amazing and brilliant group I have ever been associated with

All of the Professors

My advisor – Thank you Dr. Shinn

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