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Qxnntsszuars. rnments
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TIGARD WATER DISTRICT
BOARD OF COMMISSIONERS
MEETING MINUTES
November 2, 1993
Board of Commissioners Present: John Haunsperger, Chair; George Morgan; Lou Ane
Mortensen;Beverly Froude and Art Pedersen.
Staff: George Mardikes,Attorney and Leslee Gemmill, Office Assistant.
Visitors: Gene Seibel;Hill Hampton; Clark Balfour and Jesse Lowman
1. Call to Order
Meeting was called to order at 6:37 p.m.
2. Visitors
Visitor introductions.
3. Minutes of November 2, 1993 meeting.
George Morgan motioned to approve the meeting minutes as written and Lou Ane Mortensen
seconded the motion. A voice vote was taken and the motion was approved unanimously.
4. Other Business
There was informal discussion with representatives from Tualatin Valley Water District
regarding the various avenues available to the Tigard Water District to provide water to the
unincorporated area within the District. The Tualatin Valley Water District representatives
indicated their Board's willingness to work with the Tigard Water District should the TWD
Board decide to explore any of the available opportunities in detail.
5. City of Tigard's Proposed Agreement
After a lengthy discussion regarding options available to the Tigard Water District a motion
was made by Beverly Froude. The motion directs legal counsel to draft a letter addressed to
the three cities and Joint Water Agency regarding a short extension of time of the 190
agreement to March 31, 1994 so that the allocation of assets, boundary change and maps can
be completed. The cost of the study will be borne by the agency in accordance with the
contract and that the District anticipates input of the various parties of the Joint Water Agency.
Art Pedersen seconded the motion. Hearing no discussion, a voice vote was taken and it was
passed unanimously.
6. Schedule Next Meeting Date
The next meeting of the Board of Commissioners has been scheduled for Tuesday, December
7, 1993 at 7 p.m.
7. The meeting adjourned at 10:18 p.m.
Meeting Minutes Approved:
November 1 41'93
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Josh T. perge IC f
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November 15, 1993 CITY OF TIGARD
OREGON
Mr. George E. Morgan
Treasurer - Tigard Water District Board
14130 S.W. 144th Avenue
Tigard, OR 97224
Dear George:
Thank you for meeting with me last Friday. Per your request, I
have compiled this summary of the City's efforts with regard to the
many questions revolving around the water issue.
As you know, the Council targeted January 1 as the date on which
the City of Tigard assumes responsibility for water. I recognize
that the District is not yet persuaded to endorse such a date, but
my staff and I are preparing a transition plan with the January 1
date as a goal.
I do not mean to sound presumptuous but believe an orderly,
thoughtful approach to the transition is necessary. The management
of the water operation requires consideration if only because there
is no water administrator as of January 1. In addition, the
employees have been left in limbo long enough and it is essential
that we provide stability and clarity of direction as soon as
possible.
I have formed an internal transition team which has compiled a list
of requirements. Doubtless, as we proceed the list will change,
probably lengthening. I also asked the water staff to form a team
and compile a similar list. John Buol has been involved with this,
in his capacity as interim administrator.
The two transition teams have met to exchange information and to
strengthen the lines of communication. We intend to meet
periodically to check progress. We are contemplating the formation
of various employee task forces, comprised of members of both
organizations, on an as-needed basis.
I have attached for your information a summary list of the
requirements identified as of this date.
Obviously, a concern you and I share is the absence of a permanent
administrator for the water operation. Fortunately we have a solid
technical staff in place. I am in final stages of negotiating an
employment agreement with a candidate for the position of Director
of Maintenance Services. This position entails the supervision of
streets, parks, fleet, sanitary sewer and storm water. The
13125 SW Hall Blvd., Tigard, OR 97223 (503) 639-4171 TDD (503) 684-2772
Mr. George E. Morgan
November 15, 1993
Page 2
candidate is aware of the pending water transition. In fact the
candidate has water experience, having been responsible for a
similar jurisdiction's system, which included a treatment plant.
I have several options available to me should negotiations with
this particular candidate fail. The first is to hire an interim
manager. The second is to appoint someone from my staff to serve
in the position. The third is to assume responsibilities for the
water operation myself. I am not certain which option I would
select should this decision become necessary.
Regardless of the particular person involved, there is lengthy list
of cost saving opportunities resulting from integrating the water
operation into city. These opportunities result from having
redundant operations, not "mismanagement" of any kind. These
savings will help us keep the water rate increases to a minimum,
without having any adverse impact on service delivery.
It is said that these savings can be realized even with separate
and distinct organizations. Based upon my experience, it is
difficult enough to consolidate within a single organization.
Consolidation of functions involving two organizations becomes very
difficult, often resulting in frustration and termination of
efforts. In these days of "taxpayer revolt" we should be doing
whatever is necessary to drive costs down, especially when savings
can be realized without jeopardizing the quality of service or
product.
The Tigard City Council has been concerned about the lack of a long
term water supply for a long time. The Council supports a
"regional approach" to the long term water supply issue while
strongly favoring local retention of service delivery.
In pursuit of long term water supply considerations, I have been
with John Buol during the meetings with Tualatin Valley Water
District and Lake Oswego. In addition, I remain in contact with
our neighboring entities about long term water options. John
Acker, a city staff member, began attending the regional water
provider meetings before the Tigard Water District consistently
sent a representative. Clearly, the long term water supply issue
is a high priority for us. Unfortunately, the endless negotiations
associated with our local situation have limited the time available
for involvement in long term water issues.
I am certainly willing to meet with you and other members of the
Tigard Water District Board of Commissioners at any time to discuss
these matters further. I understand the frustrations of all
involved in these negotiations and hope that differences will be
resolved. I trust you interpret our transition efforts in the
manner in which they are intended.
Mr. George E. Morgan
November 15, 1993
Page 3
As we discussed, the City of Tigard seeks to keep the service area
of the original Tigard Water District intact. The agreement has
been prepared to assure residents of the unincorporated area that
they will have the same water rates and water service as residents
of the city. Please be assured of our commitment to keep all
jurisdictions involved with long term water supply discussions.
Finally, if I may offer a sugestion to the Board, it would be
useful to all concerned for the Board to designate a
representative(s) with whom I shall maintain liaison regarding
water matters, including supply and transition issues.
Sincerely,
411111K-
Pa ick J. Reilly
C. y Administrator
c: Tigard Water District Board
Tigard City Council
King City Council
Durham City Council
TRANSITION REQUIREMENTS
(November 15, 1993)
• Finalize general insurance and workers' compensation insurance
coverage.
• Extend City salary and benefit structure to water employees,
including resolution of union representation.
• Participate in setting forth the principles and process of
dividing assets.
• Prepare City Finance Department for assumption of
responsibilities associated with a group of "new employees. "
• Establish an adequate cost accounting system, to reflect
utilization of water related assets and a system to track
impacts of future consolidation efforts.
• Arrange for an "audit/procedures" report, to be conducted by
a qualified firm at end of operation of the Joint Water
Agency.
• Adopt the water budget, plus rules and regulations, rate
schedule, fees and charges.
• Adopt an acceptable approach to the tax levy.
• Complete agreements necessary to keep service area intact.
• Establish a welcoming program for water employees to city
employee status.
• Continue negotiations with various entities regarding short
and long range water needs, with particular emphasis on short-
term.
• Community education effort about what's going on.
ffo
-^/u '91�u1 \
CITY OF TIGARD 1
OREGON
November 12, 1993
Tigard Water District Board
8777 S.W. Burnham Street
Tigard, OR 97223
Dear Board Members:
Your correspondence of November 9, requesting an extension of the
Joint Water Agency agreement until March 31, 1994 is hereby
acknowledged.
The Tigard Council reviewed your correspondence during its
November 9 meeting and authorized me to respond. First, the
Council does not agree with the need to extend the agreement. The
City of Tigard is in process of filing the required legal
descriptions of the boundary changes and related maps. Material is
already prepared and is ready for filing.
Further, based upon our conversation with a qualified engineering
firm, it seems to us that the division of assets can be
accomplished within a 30-day timeframe. Even if not completed by
January 1, we are confident that an agreement on the principles of
a division are possible as long as all parties are striving to keep
the current service area intact. These principles could include,
but are not limited to the basis of division and the conditions
upon which the City of Tigard is able to use such assets.
Please be assured that we understand your concerns about the need
for an orderly transition. A team of City staff has been
established to develop an action plan in order to ensure an orderly
transition. Please feel free to contact me for any information
about our efforts.
Second, given the general consensual need to proceed with the
division of assets, the Tigard City Council encourages the Tigard
Water District to proceed with the division of assets as quickly as
possible. It is our hope that such a division can proceed within
the context of keeping the current service area intact.
13125 SW Hall Blvd„ Tigard, OR 97223 (503) 639-4171 TDD (503) 684-2772
Tigard Water District Board
November 12, 1993
Page 2
Third, the Council has asked me to invite you to meet with them in
an executive session on November 16, at 7:00 p.m. (if there is a
preferred alternative time, please advise) . The purpose of such a
meeting is to provide for direct communication between the two
bodies, allowing us the opportunity to focus on the concerns of the
Tigard Water District with respect to our proposal.
Hopefully, this direct communication will allow us to resolve our
difficulties and proceed with managing the important water delivery
issues before us. I apologize for the abbreviated timeframe. I
await your response to the invitation to the November 16 meeting.
Sincerely-,
Pat ck J. Reilly
Ci Administrator
c: Mayor and Council, City of Durham
Mayor and Council, City of King City
City Administrator, City of Durham
City Manager, City of King City
Mr. Clarence Nicoli
Mr, Ken Martin, Boundary Commission
Mr. Tim Ramis
Mr. George Mardikes
coft&twd
T'
INTERGOVERNMENTAL AGREEMENT
BETWEEN THE CITY OF TIGARD AND THE
TIGARD WATER DISTRICT FOR
DELIVERY OF WATER SERVICE TO TERRITORY
WITHIN THE DISTRICT BOUNDARIES
This r.. �,�„:.:,, ��...:,.
eement� frigt is made and entered into by the
city of Tigard, an Oregon municipal corporation, (hereinafter
"Tigard") and the Tigard Water District, a domestic water supply
district existing under ORS Ch. 264, (hereinafter "District") .
Tigard and District are jointly referred to herein as "the
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RECITALS: . ..:.....v n..rv..:....
RECITALS:
1. The cities of Tigard, King City and Durham withdrew from
the Origilial District effective July 1, 1993 .
2. Pursuant to ORS 222.540, the District is obligated to
turn over to the Cities of Tigard, King City and Durham its water
mains, service installations, structures, facilities, improvements
and other property in the area withdrawn from the <distri c. a
1l that are not necessary for the operation of the remainder
of`�the..`water supply system of the District.
3. The area withdrawn by Tigard was a major portion of the
00041�:: :
District. Because of this, Tigard is entitled to a major
portion of the .:r District's infrastructure pursuant to ORS
222.540. King City and Durham are entitled to smaller portions of
the b District infrastructure. Furthermore pursuant to ORS
222.550, should the District dissolve, Tigard will be in a position
to obtain all of the District's remaining assets which have not
been distributed under ORS 222.540.
4. With the assets and infrastructure obtained by its
withdrawal from the 4.1a4idal District, Tigard is creating a city
water department.
5. The Cities of Tigard, King City and Durham and District
agree that it is in the best interests of the cities if King City,
Durham and the unincorporated territory of District were to receive
water service from Tigard's city water department.
6. The Cities and District agree that it is in the best
interests of the Parties that they together share authority for
decision-making regarding the long-term water supply and 1 capital
improvement program to serve the water customers of the area.
7. The City and District acknowledge that they have
authority to enter into this Intergovernmental Agreement pursuant
INTERGOVERNMENTAL AGREEMENT
TIGARD/WATER DISTRICT - 1 (11/10/93)
•
to ORS 190.010.
NOW, THEREFORE, the premises being in general as stated in the
foregoing recital, it is agreed by and between the tied
G* hereto as follows:
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2. Term.
This <agrecme'-ta Ar , will be in full force and effect
until December 31, 2018, unless sooner terminated by one or both of
the parties. Either party may terminate this
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•II3 . Advisory Board.
Tigard will by ordinance establish an Advisory Board.
A. The Advisory Board will consist of five members. Members
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of the Board will be appointed ",-.'too:::::>'rgg} eu ���. .:v ; .r ,
as follows:
Tigard - One Member
King City - One Member
Durham - One Member
District/Unincorporated Area - One Member
At Lar e - One Member *Selected by Votc> t?:<;}�.:.ae ?>.�Y:. is!;:ii:;:}:;:i
a rIty>vat of the
Other Members
B. <Bach> VatliTWEIRON Board tmem cr> shall be
INTERGOVERNMENTAL AGREEMENT
TIGARD/WATER DISTRICT - 2 (11/10/93 )
.:r.wo.
appointed for .aterm ..
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pit9OVAMAkn44 Members maybe re- ppoli?te. to succee in• terms.
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C. Tigard may appoint city officials as ex officio members
of the Advisory Board to assist the Board in its duties. They
shall serve at the pleasure of the Tigard City Council and shall
have no voting privileges.
D. A quorum of the Board shall be three (3) members. All
actions of the Board shall require three (3) votes.
E. The Advisory Board will make recommendations to the
Tigard City Council on the following water service issues:
<(1) to study and prepare preposed rule3 and regul-atisne ts Tavern
the operation of the Tigard water c-yotem.
-( 2) to make a eantinuing re,....iew cf any and all rules and
regulat1an3 regarding-the water-system which may be adapted by the
Oeune1I-and-periadieally te mak x-cemmendatIano to the Council for
additions or amendments of aueh rulec and regulations.>
<(3)>(1) to make a continuing study of the rate structure of
the water system.
<(4)> to consider and prepare plans for and make
recommendations to the Council for a long-range
operation and management program.
j.,,
<(5)>1. to investigate and study means of effecting
economies in operation and management.
>V44
<(G) to review and make recommendations to the Budget
- . Committee and Council on all budget requests for
operation and maintenance.
<(7)> 51 to study and consider ways and means of improving
the water system and services which it provides.
<(8)>'k0 to make recommendations to the Council relative to
all of the above-mentioned matters and as to any
other matters which the Advisory Board may feel to
be for the good of the water system, the overall
public interest and for the benefit of the consumer.
INTERGOVERNMENTAL AGREEMENT
TIGARD/WATER DISTRICT - 3 (11/10/93 )
F. Power to Grant Variances
(1) Except when prohibited by subsection 2 of this section,
upon application, the Advisory Board may grant variances
from the water system rules and regulations enacted by
the City of Tigard when it finds that: a) strict
application of the rules and regulations create undue
economic hardship for the applicant with no significant
benefit to the water system; b) the variance requested
has no adverse effect upon the water system and it is
consistent with established policies of the Tigard City
Council.
(2) The Advisory Board may not grant variances relating to
annexation of property, fire protection requirements,
cross-connection requirements, fees, rates and charges.
4. Asset Ownership/Water Rates/Revenues.
A. Assets (both real and personal property) retained by
District as a result of withdrawal from the p4.qinAl District by
Tigard, King City and Durham may be utilized by Tigard in order to
provide water services to residences and businesses in the
District. Ownership of these assets shall be retained by District.
B. The rates charged by Tigard for providing water services
to residences and businesses in District shall be the same as those
charged within Tigard. Notwithstanding the foregoing, Tigard may
impose higher rates for providing water service to residences and
businesses when the cost of providing such service is greater due
to unusual circumstances, including, but not limited to additional
cost to pump water up hill to reach customers. Any higher rates
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Isoxy` d shall be limited to coveringthe actual
add .tona1. costs of providing such service.
C. Revenues for system-capital improvement shall be held in
an account dedicated solely for this purpose.
D. Capital projects shall be implemented in accord with a
long-range capital improvement program supported by sound
engineering analysis with the best interests of water customers
within the area served, ignoring city boundaries. The capital
improvement program must be approved by three of the four
jurisdictions holding •�a�rr. tial ownership of the water system. t
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E. Long-term water supply contracts shall be entered into in
INTERGOVERNMENTAL AGREEMENT
TIGARD/WATER DISTRICT - 4 (11/10/93)
•
accord with the best interests of water customers within the area
served, ignoring city boundaries. Long-term water supply contracts
must be approved by three of the four jurisdictions holding partial
ownership of the water system.
F. The Tigard Water District shall receive an annual rebate
equal to 1% of the previous years water sale revenue within the -
water district for water related expenses.
G. Ownership c; . :{.Y<.p € .A.i ::w >>.4 r of any capital
improvements shall remain' with the: r .jur sd ct on in which the
improvement is located.
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5. Indebtedness.
A. Each of the Parties shall be liable for their respective
shareofthe debt, if any, acquired+:or retained as a result of the
cities' withdrawal from the ti nab District.
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6. Services Provided By Tigard.
INTERGOVERNMENTAL AGREEMENT
TIGARD/WATER DISTRICT - 5 (11/10/93)
<(a)> 0 Tigard will provide water to customers in all
jurisdictions equally. If circumstances require water
restrictions, each jurisdiction shall share equally.
<(b)> gg The City of Tigard will provide all services
required for delivery of domestic water to customers within the
cities of King City and Durham as well as the territory of the -
Tigard Water District, including but not limited to system repair
and maintenance, water distribution, new installations, system
upgrades, and billing functions.
7. Rules and Regulations:
<The rules a0 . :g water service by the
Tigard ei is water-depert :ent a3 are :els i: e€€ee t ar as they
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mg shall be deemed a part.t:of:::::tl is::Agreement ;
...........................
agreec to comply with cue: rules and reg•41at o::s end water service
to District shall be governed t ereby> .
�i:7cd in this Agreement zh- ` •:
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not be responsible for any expenses associated with efforts of the
City of Tigard to withdraw from the Tualatin Valley Water District
to reach the goal of having a single water purveyor for the Cityl
9. Employee Benefits/Personnel.
All employees of the Southeast Washington County Joint Water
Agency shall become employees of the City. The City shall accept
such employees with all existing benefits and salary, including,
but not limited to, health, retirement, disability insurance,
wages, vacation and compensatory time. Nothing in this subsection
is intended to limit the City's authority to alter benefits or
salary except as such authority is otherwise limited by this
Agreement or by the provisions of ORS 236.605 to 236.650.
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<10> n. Attorneys Fees.
In the event any suit, action or other proceeding is brought
with regard to this Agreement, or to enforce any of the provisions
hereof, the prevailing party in any such suit, action or other
proceeding, or any appeal therefrom, shall be entitled to
reasonable attorneys fees.
<11> 3. Ratification of this Aareement.
Prior to the effective date of this Agreement, each of the
parties shall enact an ordinance ratifying the Agreement.
<12> xo. Effective Date.
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CITY OF TIGARD, OREGON
ti-::?{i}:•}v.: :::flit
Attest: B
Y
:ti:'% m
4
INTERGOVERNMENTAL AGREEMENT
TIGARD/WATER DISTRICT - 7 (11/10/93)
TIGARD WATER DISTRICT, OREGON
Attest: By:
4v.%a41g. tiPrd‘44ea194.7-
INTERGOVERNMENTAL AGREEMENT
TIGARD/WATER DISTRICT — 8 (11/10/93)
COMPARISON OF FOOTERS
-FOOTER 1-
INTERGOVERNMENTAL AGREEMENT
-r1G A RD FIC RDW TI ._ DISTRICT-#own
INTERGOVERNMENTAL AGREEMENT
TIGARD/WATER DISTRICT - 9 (11/10/93)
SENT 6Y: ;11-10-93 ;10:53AM ;DAVIS WRIGHT TREMAIN45323*790026*2*915036;# 2
•
DAVIS WRIGHT TREMAINE
LAW Ods
2300 Pcssr bI sesrATT Tows •'1300 SW FIFTH AVenJg •PORTLAND,OR 97201-5682
(503) 241.2300
FAx (503) 778-5299 •Tem 185224
GEOROIM.MARDIKES
November 9, 1993
Mr. Patrick Reilly Mr. Roger Gano
City Administrator City Administrator/Recorder
13125 S.W. Hall Blvd. P.O. Box 23483
Tigard, OR 97223 Durham, OR 97224
mr. John Buol Ms. Lynda Jenkins
City Manager Chair
15300 S.W. 116th Avenue Southeast Washington County
King City, OR 97224 Joint Water Agency
8777 S.W. Burnham Road .
Tigard, oR 97223
Re: Short Extension of Joint water Agency
Our File No. 790026\2
Ladies and Gentlemen:
At the November 2, 1993, meeting of the Board of
Commissioners of Tigard Water District, it was determined that
certain housekeeping requirements that are the result of the
withdrawal of each city's patrons from the District°S that occurred.
on July 1, 1993, need to be completed. Itis the Commissioners'
opinion that these items need to be completed prior to a final
agreement on the long term supply of water service to the
District's water users, however, the Commissioners believe that the
completion 'of these items can run parallel with discussions and
negotiations on an agreement for long term water service. In the
interim, the Commissioners voted for a short term extension of the
joint agreements concerning the Southeast Washington County Water
Agency until March 31, 1993. 1gq
The items that statutorily need completion are as
follows:
ATCioMu8,ALASKA •BELLEVl s,WAs uNOTON •BMW.,sum •HONOLULU, HAWAII •Los ANOBUS,CAUIVRNIA
IDOHLANO,WASKINOrro 4 -SAN F1RAN ,CALWOINIA-SaATILE,WAstsmioN •WA5 MOT 4 D.C.
SENT BY: ;11-10-93 ;10:54AM ;DAVIS WRIGHT TREMAIN-�5323*790026*2*915036;# 3
Mr. Patrick Reilly
Mr. John Bucl
Mr. Roger Cane
Mo. Lynda Jenkins
November 9, 1993 .
Page 2
1. Pursuant to oR8 308.225, the cities of Tigard, King
City and Durham each need to prepare legal descriptions of . the
boundary changes and maps of such boundary changes. These need to
be completed as soon as. possible. At a minimum they need to be
completed and filed by March 31, 13, with the county assessor and -
the Department of Revenue. This completes the apportionment of the
outstanding indebtedness of the Dist'rict. . Please note our letter
of July 20, 1993, to Mr. Reilly, Mr. Buell and Mr. Gano on this
subject. The maps and boundary changes era also necessary for the
completion of the division, at least on paper, of the
installations as required by ORS 222.540. The sooner these
boundary changes and maps can be completed, the sooner the division
can occur.
2. ORS 222.540 provides that there "shall" be a
division of the "water mains, service installations, structures,
facilities, improvements and other property" in the withdrawn area.
The agreement to provide water recently proposed by the City of
Tigard contemplates that the assets that the cities -of Durham and
King City and the Tigard Water District possess upon completion of
such a division shall be "pledged" to the City of Tigard for use
during the term of each individual entity's contract with the City
of Tigard. Prior to entering into .such an agreement, the District .
is of the opinion that the property so "pledged" needs to .be
clearly identified and its legal obligation to divide completed.
The completed boundary changes' and maps will be necessary • to
complete this task. The District proposes that the cities of
Tigard, King City and Durham be included in the discussions on the
methodology for the division to avoid costly disputes and delays. .
As provided in Section 10 of the Interim Intergovernmental
Agreement, the cost of the division will be paid for by the Joint .
Water Agency. The District is in the process of selecting an
engineering firm to assist in this process.
The District has chosen March 31, i3, as the date for
extension of the joint agreements. It coincides with the filing
date of the boundary changes and maps. It seems a realistic date
for completion of the items 'listed above and .completion of
negotiations by the various parties on the long term water
contracts. The District will be meeting on December 7, 1993. It
anticipates at that meeting a detailed review of the proposed water
contract by the City of Tigard and passage of resolutions extending
the joint agreements until March 31, 1993..
SENT 8Y: ;11-10-83 ;10:54AM ;DAVIS WRIGHT TREMAIN-'5323#980026#2*915036;# 4
Mr. Patrick Reilly
Mr. John Buol
Mr. Roger Gano
Ms. Lynda Jenkins
November 9, 1993
Page 3
If you have any questions or comments, please do not
hesitate to call.
Very truly yours,
DAVIS WRIGHT TREMAINS
,h41(4W(
George M. Mardikes
GMM:raf •
cc: Tim Ramis
Board of Commissioners
Leslee Gemmill
fst74\T90026\2\oiti•s2.ltr
1
o
— — - _
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