04/10/1984 - Packet TIGARD WATER DISTRICT 8841 S. W. COMMERCIAL ST.
TIGARD.OREGON 97223-6290
PHONE (503) 639-1554
April 10, 1984
From: Administrator
To: Budget Committee
Subj : Future of Tigard Water District:
(1) Change in political structure
(2) Purchase of land for office/shop complex
Although the water district has been organized since 1938
there are ominous signs that the political structure of the
district must change, in the near future, or some other entity
(a city) will assume control of the water system. This fact
was brought out, loud and clear, as the city council of Tigard,
in 1982, made gestures toward such action.
The statutes are clear that a city council can resolve to
withdraw its territory from a water district and, if no petition
is received within 30 days from its citizens to refer the matter
to referendum, the city simply takes over the assets of that por-
tion of the water district.
The existing facilities of the water system are in out-
standing condition as described in the budget message . In my
professional opinion as a registered engineer, TWD excels in all
categories. It is at the top in excellence. No one has ever
suggested that the water system should be dissected or split into
several smaller water systems. On the contrary, everyone, in
any position of authority, has advised, very strongly, that the
water system not be divided. It was constructed as an integral
unit and cannot, easily, be divided into separate, independent
parts.
One should be aware of ongoing events and recent changes in
the political structure in the Portland metropolitan area. Since
1970, and inception of the Boundary Commission, there has been
strong pressure to dissolve, consolidate and merge special service
districts in favor of cities. This is not to argue the point
whether this is good or bad, but the fact remains that, eventually,
one will witness "wall-to-wall" cities within the established
Urban Growth Boundary. The commission' s master plan provides
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that cities will be the logical provider of urban services,
along with "one-stop" locations (city hall) to acquire those
services.
Examples of this trend in Washington County are the
following:
a. Merger of Garden Home and Progress Water Dis-
tricts into Metzger Water District.
b. Merger of Aloha-Huber, and Cooper Mountain Water
Districts into Wolf Creek Highway Water District.
Recently, the city of Portland and Multnomah County
arrived at a momentous agreement for furnishing urban services
in east Multnomah County. Portland will soon annex most of
the area with Gresham annexing the remainder. This will be
accomplished with the blessing of the Boundary Commission.
Washington and Clackamas Counties will soon join the band-
wagon and agree to discontinue providing urban services to un-
incorporated areas. Enclosed are recent newspaper articles
regarding this matter.
What does all this mean to water districts in this area?
The following is predicted to occur prior to year 2000 (within
16 years) :
a. The unincorporated area of Metzger will be
divided and annexed to the cities of Portland, Beaverton, and
Tigard. Metzger Water District' s 5, 000 meter connections will
be served by some combination of Portland, Beaverton, and Tigard
Water District.
b. The unincorporated area of Lake Grove (in Clackamas
County) will be absorbed by the city of Lake Oswego. The city of
Durham will have to look elsewhere for its water supply.
If one believes these predictions, then now is the time to
prepare for those eventualities.
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Tigard Water District is in a unique position because it
serves two incorporated cities without water systems, namely:
Tigard and King City. However, present political structure
does not lend itself for those cities (councils) to become
intimately involved in the decisions of the water district.
That, and the fact that a city can withdraw its area from the
district (with a whim) , makes it mandatory that the water dis-
trict restructure its Board of Commissioners .
An appropriate structure might allow that commissioners
be appointed by city council (s) , but also make provisions for
inclusion of representation from unincorporated areas, such as
Bull Mountain. If desired, city council persons could serve
in a dual role. Such reorganization might appear as follows :
Members
City of Tigard 2
City of King City 1
Unincorporated area 2
Total: 5
Other examples of similar types of governing bodies are
Eugene Water and Electric Board, McMinnville Water and Light
Department, and there are others located along the coast cities
in Oregon. It is noted that even the Portland Bureau of Water
Works is independent, but a component part, of the city of
Portland.
Such a governing body would allow the cities to "get in-
volved" with the decision-making process. At the same time, the
water district would remain in tact and continue to operate under
Chapter 264, ORS.
To reinforce the role of cities, it would be preferable to
include the city of Durham. One of the two positions noted for
the unincorporated area could be assumed by a representative from
Durham. With representatives of cities in charge, it strengthens
the political position of the entity, as a whole. (Note: one
does not witness any cities being disenfranchised) .
Last year a brief study of the water situation in Durham was
prepared and is attached to this report. In the past, Durham has
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been reluctant to even discuss becoming a part of Tigard Water
District. It is believed that if they really made a detailed
investigation of the facts, they would change their mind (s) .
The district would be offering them part-ownership in an exist-
ing water system in which water rates to their constituents
would be almost halved, immediately.
In any event, an election would be required to change the
structure of the governing body. This could be accomplished
at the general election on November 6 , 1984 , with an effective
date of July 1, 1985. The regular terms of two present commis-
sioners expire on that latter date. A name change would also be
in order, possibly:
Bull Durham Tigard K.C. Water Commission
or something else for someone with imagination.
Recommendation: Approve concept and request opinion from legal
counsel.
One must accept the fact that the water system (district)
will continue to exist in the future, hopefully, in its entirety.
The district now has over 7 , 000 meter connections. With the
addition of a portion of Metzger Water District and, possibly,
the city of Durham, the district would have about 10, 000 meter
connections.
Now to the bottom line. The district will require more office
and shop space to accomodate this influx of new customers, to-
gether with normal growth within the district. By year 2000,
the district could double in size.
Certainly, the present administrative offices are inadequate
for such growth. The present shop is located on Little Bull
Mountain in a residential zone (pre-existing, non-conforming use) .
Therefore, it is concluded that a new office/shop complex will be
needed between 1990 and 2000.
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At this time, it is suggested that a down-payment be made
on a parcel of land which would be ideal for the district ' s
needs as well as being situated in close proximity to the pro-
posed Tigard City Hall, as approved by the electorate on March
27th. It is the Air-King property, located across Burnham
Street, near Hall Boulevard, where the new city hall, library,
and police station will be built. It would give the patrons
the "one-stop" shopping center desired for urban services. It
would be a real beginning for a truly "downtown" Tigard.
Richard Nokes, retired editor of THE OREGONIAN and member
of the budget committee, recently wrote to the editor of THE
TIGARD TIMES that the Tigard City Hall should have been located
where the old Fowler Junior High School was situated (at the
north end of Main Street) . Everyone agrees. But no one on the
city council or administration was successful in placing an
option on the land. (No doubt lack of funds was a problem, too) .
Instead, Payless Drug and Albertson' s are located on the site.
This confirms what a developer once said: "God isn't making any
more land so if one wants a particular parcel, one had better
put in his bid early. "
Enclosed is a plot plan of the parcel of land desired. It
contains 5. 16 acres, easily accessible from Hall Boulevard, and
situated on a railroad siding where future pipe deliveries could
be made. Mr. Van Camp owns the property and has listed the
selling price at $700, 000.
Realtor Sam Gotter (who has the listing) has suggested that
the district make an offer of $550, 000, made up as follows:
Exchange 3 parcels of surplus land owned
by the district, noted as follows:
(1) 3 . 18 acres at S. W. 125th and Bull
Mt. Road, appraised at $57 , 000 but
listed on the market at $70, 000 $70, 000
(2) 0. 48 acres at S. W. 135th and Fern
St. , appraised & listed at $17 , 00017 , 000
(3) 0. 48 acres at S. W. 135th and Fern
St. , appraised & listed at $14 , 50014 , 500
$101,500
Down-payment upon purchase, FY 1984-85 48 ,500
Annual payment of $100, 000 for 4 years @ 6% int. 400, 000
Total: $550, 000
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It is not known if the owner would accept this offer.
However, the offer would be in the "ball-park" . There is an
additional incentive to the owner in that the interest earned
on the loan would be tax-exempt.
A comparison of property values nearby would suggest that
the listed price for this 5 .16 acres is not unreasonable. For
example, the city of Tigard has agreed to pay no more than
$600, 000, nor less than $550, 000, for the Sturgis property (3 . 8
acres) which will be the site for the new city hall, library,
and police station.
It appears that the district can afford, without difficulty,
the initial down-payment, but can the district afford annual pay-
ments of $100, 000 for the next four years? In my opinion, the
answer is an unqualified "yes" .
Why? One has to look at what has been accomplished in past
years and what lies ahead to respond to that question.
In the past, enormous sums were invested in improvement of
the water system, both from the General Fund and borrowed funds.
Fourteen (14) years ago the district was in dire straits, with
a poor, inadequate water system and no money to make necessary
capital improvements. Those days are gone and the district now
excels in all categories, along with being in excellent financial
condition. Needed assets have been acquired, and when the major
pipeline extensions programmed for this year are completed, the
building of the water system will be, essentially, finished.
There will be other necessary purchases and capital improvements
to be made, but nothing compared to past expenditures .
Secondly, the district is rapidly approaching the Urban
Growth Boundary which defines the district' s boundaries until
year 2000 . Only a few transmission mains will be required to
reach those limits, and most costs will be borne by developers or
property owners.
Lastly, within a few years, with construction of the water
system almost complete, there will be no need for a registered,
professional engineer on board. Through normal retirement, dead-
wood at the top can be eliminated.
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In the final analysis, in my judgment, the district cannot
lose on this transaction. If the land is needed, then the dis-
trict will have it for future expansion; if the land is not
needed, it can be sold (probably at a profit) . In addition,
this proposal would allow the district to dispose of two parcels
of surplus land at S. W. 135th and Fern Street which have been
ruled "unbuildable" (due to inadequate sewer facilities) and,
thus, unsalable.
Recommendation: Approve $50, 000 expenditure in the budget
as down-payment on land so that the Board
of Commissioners can begin serious negotia-
tions with the owner.
Robert E. Santee
Administrator
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•
The sketch below is made solely for the purpose of assisting in locating said premises and the Company assumes
no liability for variations, if any, in dimensions and location ascertained by actual survey.
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