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Lake Oswego - Intergovernmental Water Board MEMORANDUM OF UNDERSTANDING BETWEEN THE CITY OF LAKE OSWEGO, THE CITY OF TIGARD, AND THE INTERGOVERNMENTAL WATER BOARD PREAMBLE This Memorandum of Understanding (MOU) is entered into by and between the City of Lake Oswego, the City of Tigard, and the Intergovernmental Water Board (IWB), ("the Parties"), with the IWB representing the cities of Durham, King City, Tigard, and the Tigard Water District. The City of Lake Oswego, the City of Tigard, and the Intergovernmental Water Board will act, by and through their respective Councils or Board. PURPOSE The purpose of this MOU is to memorialize certain values and principles held by the Parties in the context of a possible water supply partnership and to establish a framework and schedule within which the Parties will endeavor to reach certain understandings in principle regarding the elements of a water supply partnership agreement. It is understood this MOU does not obligate the Parties to create a water supply partnership, but instead obligates the Parties to exercise diligence and good faith on behalf of their respective citizens toward reaching an agreement that achieves the objectives embodied in the values and principles recited below. RECITALS WHEREAS, the Parties desire to secure their respective water supply futures in a manner that meets their long term needs for economic development, public health and safety and sustainability; and WHEREAS, the Parties see a water supply partnership as a means to provide high quality water to their respective citizens in a cost efficient manner when compared to other water supply options; and WHEREAS, the City of Lake Oswego has acquired permits and rights to appropriate water from the Clackamas and Willamette Rivers for municipal use and desires to retain and protect its rights to beneficially uses these waters by sharing this water with others; and MOU—LO-COT Page 1 of 4 Last edited 12/12/2007 WHEREAS, the City of Tigard desires to secure access to a long term source of water and an equity interest in the infrastructure that would be used to divert, treat and transmit water to its citizens and customers; and WHEREAS, the Parties desire to promote the equitable distribution of water throughout the region and in doing so develop access to redundant sources of supply for emergency planning purposes; and WHEREAS, the Parties desire to achieve a water supply partnership that will be seen as balanced, fair and equitable by their respective citizens and the region at large; and WHEREAS, the Parties desire to nurture cooperation among each other and surrounding communities that is beneficial to protecting our precious water resources and using them in a sustainable way. NOW, THEREFORE the Parties in order to establish basic principles for communicating, coordinating and conducting activities relating to a possible water supply partnership between each other do enter into this Memorandum of Understanding and agree to the following: I. STAFF MEETINGS; SCHEDULE AND FREQUENCY A. The Parties agree to direct their staff to meet twice monthly to endeavor to develop proposed terms for a water supply partnership meeting the objectives stated in the recitals to this agreement, including proposed resolution of the issues identified in Article V of this MOU. Unless otherwise agreed by the participants, those meetings will take place on the l't Tuesday of each month in Tigard, and the 3rd Wednesday of each month in Lake Oswego. All meetings will be at 1:00 pm at a location announced by the home city. Staff shall endeavor to develop and present recommendations for the consideration of their respective Councils and the Intergovernmental Water Board no later than June, 2008. Members of each City Council and the Board may participate in the staff meetings from time to time to provide input from the standpoint of policy-makers. However the meetings shall not constitute meetings of subcommittees of either City Council or the Board, and any resulting recommendations shall be those of each Party's staff, not those of a subcommittee. II. FUNDING OF OUTSIDE SERVICES A. In furtherance of addressing issues identified in Articles IV and V herein, the Parties agree to contract with outside services as they may mutually agree are necessary. The selection and management of outside services will be conducted pursuant to public contracting rules of the State and payment will be shared equally between the City of Tigard and the City of Lake Oswego. MOU—LO-COT Page 2 of 4 Last edited 12/12/2007 III. COMMUNICATIONS A. Communications between the Parties: At all times through the duration of this MOU, the Parties agree to communicate with each other proactively in furtherance of the goals and objectives of this MOU. All communications will be directed to the following individuals: For: City of Tigard/Intergovernmental Water Board: Dennis Koellermeier, Public Works Director For: City of Lake Oswego: Joel B. Komarek, City Engineer B. Communications with the public and media: The Parties agree to give each other advance notice of any media contacts or public information. This notice will preferably be by e-mail to the individuals named in III.A, above. If there is insufficient time for e-mail notice as described, telephone notice to the Interim City Manager of Lake Oswego and the City Manager of Tigard will suffice. IV. CURRENT ISSUES: A. Water rights: The City of Lake Oswego holds permits and certificates to divert waters of the state for beneficial use as a municipal drinking water supply within the cities of Lake Oswego, Tigard and Tualatin. The Parties recognize the value inherent in these permits and certificates to each member in any future water supply partnership agreement. Therefore the Parties agree: a. To support the City of Lake Oswego's efforts to secure extensions of time to beneficially use all water so authorized under its permits; and b. To share equitably in the costs incurred by Lake Oswego for this purpose; and C. That title to permits and certificates will remain in Lake Oswego's name. MOU—LO-COT Page 3 of 4 Last edited 12/12/2007 V. ISSUES TO RESOLVE IN ANY FINAL AGREEMENT 1. Scope and objectives of the partnership 2. Nature of agreement 3. Type of partnership 4. Governance structure 5. Formation of new agency 6. Fiscal authority 7. System ownership 8. Operational standards and authorities 9. Fiscal standards and authorities 10. Future considerations IN WITNESS WHEREOF, the Parties have executed this Memorandum of Understanding as of the last date written below. CITY OF LAKE OSWEGO By: Y i..�lL'� �77'�iY�s' APP OVE A TO FORM Date: February 14, 2008 City of Lake Oswego Resolution 07-70 David Powell, City Attorney CITY OF TIGARD approved Dec 18, 2007 By: /_ �r,�.r� rc.uti� APPROVED AS TO FORM Date: V Ramis, ounsel for Tigard INTERGOVERNMENTAL WATER BOARD By: Date: t t 2 Zed �— MOU-LO-COT Page 4 of 4 Last edited 12/12/2007 RESOLUTION 07-70 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF LAKE OSWEGO AUTHORIZING THE MAYOR TO SIGN A MEMORANDUM OF UNDERSTANDING BETWEEN THE CITY OF LAKE OSWEGO AND THE CITY OF TIGARD AND THE INTERGOVERNMENTAL WATER BOARD REGARDING A POSSIBLE FUTURE WATER SUPPLY PARTNERSHIP WHEREAS,the City of Lake Oswego and the City of Tigard("the Parties") entered into an intergovernmental cooperative agreement in 1983 to provide for Lake Oswego supplying surplus water to the City of Tigard; and WHEREAS, since 1983 the Parties have mutually benefited from this relationship between water purveyor and purchaser; and WHEREAS,the Intergovemmental Water Board is the purveyor of water to its member agencies including the cities of Durham,King City,Tigard and the Tigard Water District; and WHEREAS, on March 3,2006 the Parties executed an Intergovernmental Agreement to jointly fund an engineering study of the opportunities, costs and constraints of forming a future municipal water supply partnership for the benefit of their respective citizens; and WHEREAS,the final draft study was completed and presented to the Parties at a joint meeting of the Parties' elected officials on July 17th,2007; and WHEREAS,that study concluded that it was feasible for Lake Oswego to supply water to Tigard on a long term basis and that partnering with the City of Tigard to develop Lake Oswego's undeveloped water rights could achieve many benefits including more efficient use of water resources, improved economy of water supply,protection of existing permitted water rights,improved water supply reliability and a more effective joint response to regulatory challenges; and WHEREAS,the Parties have identified the need to continue discussions of the mutual interests and issues concerning a possible future municipal water supply partnership and have created a Memorandum of Understanding(MOU)that will guide these discussions over the next several months toward development of a possible draft water supply agreement. NOW, THEREFORE,BE IT RESOLVED that the City Council of the City of Lake Oswego authorizes the Mayor to sign the Memorandum of Understanding with the City of Tigard and the Intergovernmental Water Board in the form attached hereto as Exhibit`A'. Considered and enacted by the City Council of the City of Lake Oswego at a regular meeting held on the 18"day of December,2007. H:UOEL MTIGARD\Co=cil\RES 07-07.LO-COT.MOU.12.18.07.doc AYES: Mayor Hammerstad, McPeak, Turchi , Groznik, Hennagin, Jordan, Johnson NOES: none ABSTAIN: none EXCUSED: none / �d Ju 'e Hammerstad,Mayor ATTEST: , Ct�'J aw�-Z-) Robyn Christie, City Recorder APPROVED AS TO FORM: David Powell,City Attorney/ Attachment: Exhibit`A' -Memorandum of Understanding H:UOEL MIGARMCounciARES 07-0710-COT.MOU.12.18.07.doc