1. Implementation of the Joint Operations Plan Regionalization of the Water Resource Carol Bryck Capstone Project Executive Masters of Public Administration Portland State University Advisor: Dr. Craig Shinn

2. 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 2

3. Provisions of the JOP Optimizing 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 3

4. Clackamas River Basin 974 square miles of watershed: Water flow Timothy Lake – up river storage Dams/water flow/hydroelectric Demands: Water demands within the JOP participants Residential/domestic Industrial Agricultural 4

5. See if Mike can make an electronic map showing four WTPs and city and district boundaries. 5

7. Why is this important? Public Benefit Availability of Water - a limited resource Cost effective provision of necessary resource Potential increased equitable rate structures Water Provider Benefits Cost savings on operations Delay of high capital cost of infrastructure Efficient and effective operation 7

8. Water Flows - with Trend Line 8

9. Water Demands 9

10. Capital Cost of Expansion Capital 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 bond 20 year debt - $1.8 million per year Evenly distributed to affected wholesale and retail customers $2 to $3/month for the next 20 years 10

11. Current Rates with Additional Cost of Capital 11 NCCWC SFWB

12. Effect on Public Rate 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 materials Personnel costs medical insurance coverage, PERS rates, COLA increases per contracts, 12

13. 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 13

14. Implementation Meeting those interests – cooperation and a regional/rational approach to water production and delivery Governance Sharing resources to the benefit of all participants Sharing technical expertise across region Management of each entity as a partner with the other two 14

15. Leadership Eliminate US versus THEM attitude Partner on acquisition of alternative water connections/sources Evaluate available expertise and partner for specialized services Hydraulic Modeling Information Technology Lab services GIS 15

16. Joint Operations Overall benefits of big picture thinking include: Stewardship of the watershed and all users including: Lake Oswego-Tigard Estacada City 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 16

17. Joint Operations Questions? 17

18. 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 18