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Call to Order The meeting was called to order at 7:02 p.m. 2. Minutes of December 7, 1993 Meeting Commissioner Morgan motioned to approve the minutes as submitted and Beverly Froude seconded the motion. A voice vote was called for and the motion was approved unanimously. 3. Continue Review of City of Tigard's Proposed Agreement regarding Formation of a City Water Department and its impact on the Water District. Attorney Mardikes and Chair Haunsperger outlined for the commissioners the amendments to the proposed draft intergovernmental agreement between the City of Tigard and the Tigard Water District for delivery of water service to territory within the district boundaries as a result of the December 9 meeting between city and district representatives and attorneys. The areas of particular interest discussed in detail are as follows: a. Capital Improvement Plan George Mardikes addressed the revised wording in the Agreement on page 7 paragraph B which envisions 3 out of the 4 jurisdictions approving the capital improvement plan with mediation available if necessary under ORS Chapter 36. There was discussion regarding whether or not the mediation should be binding and Attorney Mardikes agreed to look into the interpretation of the ORS. On page 8, paragraph C an updated capital improvement plan to be done by June 30, 1994 was pointed out. b. Termination of Agreement The Board recommends that the Agreement be amended to read "either party may terminate the Agreement by providing written notice to the other party a minimum of ten years prior to the effective date of termination" on page 2, item#3. Tigard Water District December 14, 1993 c. 1% Rebate The Tigard Water District Board was asked by the participants in the proposed intergovernmental agreement to prepare a budget based on anticipated costs for the next 18 months. The determined dollar amount would then be set aside in a fund dedicated for the operation of the TWD and the fund be replenished with the 1% rebate. City of Tigard offered financial assistance to TWD at the December 9 meeting to help prepare a budget along with a verbal agreement that the City would pay for the engineering, staff and legal assistance for the allocation of assets. d. Division of Assets There was lengthy discussion regarding various methodologys that can be used for the division of assets. At 8:36 p.m., the Tigard Board of Commissioners went into Executive Session under the provisions of ORS 192.660(1) (e) (h) and (j) to discuss real property transactions, public investments and possible litigation. The special meeting of the Board of Commissioners reconvened at 9:39 p.m. Commissioner Morgan outlined for the Board, appropriate and necessary steps to seek proposals for the allocation of assets. After the discussion, Commissioner Morgan motioned that the Board proceed to seek proposals for the allocation of assets and rely on legal counsel to prepare a rough specification, time schedule and if necessary seek outside assistance in preparing the documents needed to initiate the process and the time schedule be presented at the next board meeting for future planning. Commissioner Mortensen seconded the motion. Hearing no further discussion, a voice vote was called for and the motion passed unanimously. Other Business Commissioner Morgan asked about the status of the conflict of interest letter previously submitted for review. Attorney Mardikes informed the Board that a revised version of the letter was signed by the City of Tigard and Chair Haunsperger signed the final document. There was discussion regarding the term expiration dates of the Board of Commissioners. Attorney Mardikes agreed to look into the ORS outlining expiration dates for terms of filler vacancies for each of the five appointed commissioners on Board at this time. Attorney Mardikes informed the Board of a request by Mayor Jenkins to assist King City in the review of the proposed Agreement between Cities of Tigard and King City regarding the delivery of water service to King City. George Mardikes indicated hesitation regarding potential conflicts with the Tigard Water District and would outline these different interests as a matter of record in writing to Mayor Jenkins and the Tigard Water District Board. The next meeting of the Tigard Water District Board of Commissioners has been scheduled for Tuesday, December 21, 1993 at 7 pm. The meeting adjourned at 10:11 p.m. TIGARD WATER DISTRICT Resolution 93-17 A RESOLUTION APPROVING AN AGREEMENT WITH THE CITY OF TIGARD TO PROVIDE DOMESTIC WATER SERVICE TO THE DISTRICT. WHEREAS, the District is a domestic water supply district existing under ORS 264 providing domestic water service to residences and business' located in certain unincorporated areas of Washington County; and WHEREAS, until June 30, 1993, the District also provided domestic water service to all areas presently served by King City, the City of Durham and the City of Tigard (the "Cities"); and WHEREAS, the Cities enacted ordinances pursuant to ORS 222, effective July 1, 1993, withdrawing their respective territories from the former boundaries of the District; and WHEREAS, a Joint Water Agency (the "Agency") was formed, effective July 1, 1993, to provide domestic water supply service to businesses and residences located within the boundaries of the original boundaries of the District until December 31, 1993; and WHEREAS, the City of Tigard informed the District that it intended to establish its own water department for the purposes of providing water to the businesses and residences located within the boundaries of the City of Tigard, effective January 1, 1994; and WHEREAS, the City of Tigard has offered to contract with the District, the City of Durham and City of King City to provide domestic water service to businesses and residences in those areas; and WHEREAS, the District has negotiated a long-term water contract, in the form attached hereto as Exhibit A (the "Agreement"), with the City of Tigard for the City of Tigard to provide domestic water service to businesses and residences in the District.' Resolution 93-17 Tigard Water District NOW THEREFORE, THE TIGARD WATER DISTRICT RESOLVES AS FOLLOWS: Section 1. Approval of Agreement. The Agreement is hereby approved in substantially the form submitted to and reviewed by the Board, and as attached hereto, with such changes therein shall be approved by the representative of the District executing said document, said representative's execution thereof to be conclusive evidence of said representative's approval. The Chairman (the "Executing Official") of the District is hereby authorized and directed to execute and deliver the Agreement on behalf of and as the act and deed of the District. Section 2. Further Authority. The District shall, and the officers and agents of the District are hereby authorized and directed to, take such action and execute such other documents, certificates and instruments as may be necessary or desirable to carry out and comply with the intent of this Resolution and to carry out, comply with and perform the duties of the District with respect to the Agreement approved by this Resolution. Section 3. Appointments to Intergovernmental Water Board. George Morgan is designated as the District's member on the Intergovernmental Water Board created under Section 3 of the Agreement. John Haunsperger is designated as the District's alternate member on the Intergovernmental Water Board. Section 4. Effective Date. This Resolution shall take effect and be in full force and effect from and after its passage and approval. PASSED by vote of 4 members of the Board of Commissioners of the District, with a quorum present, this 27th day of December 1993. Name Title: Chairman Secretary INTERGOVERNMENTAL AGREEMENT BETWEEN THE CITY OF' TIGARD AND THE TIGARD WATER DISTRICT FOR DELIVERY OF WATER SERVICE TO TERRITORY WITHIN THE DISTRICT BOUNDARIES This Agreement 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 Parties. " Unless identified as "original, " District refers to the remnant district. RECITALS: 1. The cities of Tigard, King City and Durham (collectively the "Cities") withdrew from the original District effective July 1, 1993 . 2 . Pursuant to ORS 222 .540, the District is obligated to turn over to the Cities its water mains, service installations, structures, facilities, improvements and other property in the area withdrawn from the District as it existed on June 30, 1993 , (original District) 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 original District. Because of this, Tigard is entitled to a major portion of the original District's infrastructure pursuant to ORS 222 .540. King City and Durham are entitled to smaller portions of the original District's 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 original District, Tigard is creating a city water department. 5. The Cities and District agree that it is in their best interest if King City, Durham and the District were to be an integrated part of a water supply network receiving water service from Tigard's city water department. Tigard will receive revenue from water users in Tigard, King City, Durham, and the District, and with that revenue Tigard will provide the funds to pay for expenses incurred in providing water service. 6. The Cities and District agree that it is in their best interest to share authority for decision-making regarding the long- term water supply and capital improvement planning to serve present and future water customers of the original District. INTERGOVERNMENTAL AGREEMENT TIGARD/WATER DISTRICT - 1 (12/23/93 - FINAL) 7. The Parties shall continue to prepare independent tax coordination plans. 8. Tigard and the District acknowledge that they have authority to enter into this Intergovernmental Agreement pursuant to the powers contained in Tigard's Charter, ORS 264 .210 and ORS 190.010. NOW, THEREFORE, the premises being in general as stated in the foregoing recitals, it is agreed by and between the Parties hereto as follows: 1. Mission Statement. The Cities withdrew from the original District with intent to take a more active role in planning and operating a domestic water supply system for the Southeast Washington County area in order to provide the residents of that area with the highest quality water service at the lowest possible cost. In keeping with that intention, the Parties to this Intergovernmental Agreement commit to working together to provide all of the residents and undeveloped property in the original District with a clean, economical water supply. The Parties further commit to working together and with other agencies and jurisdictions in a cooperative effort to plan for the future long term water supply needs of the area. 2 . Term. This Agreement 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 Agreement by providing written notice to the other party a minimum of ten years prior to the effective date of termination. Tigard recognizes that by this Agreement, it is assuming the responsibility to provide water to the inhabitants of the District for the duration of this Agreement unless a reasonable alternative domestic water supply is available to the District and the Agreement is terminated. 3 . Intergovernmental Water Board. A. Tigard will establish an Intergovernmental Water Board (IWB) . The Intergovernmental Water Board will consist of five members. Members of the Board will be appointed by the respective governing bodies as follows: INTERGOVERNMENTAL AGREEMENT TIGARD/WATER DISTRICT - 2 (12/23/93 - FINAL) Tigard - One Member King City - One Member Durham - One Member District/Unincorporated Area - One Member At Large - One Member selected by a majority vote of the Other Members B. Intergovernmental Water Board Terms. (1) Initially, three Board members shall be appointed for a term of three years (from January 1, 1994 to December 31, 1996) and two Board members shall be appointed for a term of two years (from January 1, 1994 to December 31, 1995) . There shall be a drawing of lots to determine which Board members will serve two years and which will serve three years. Thereafter, Board members shall have two year terms. (2) Board members shall be appointed in December for the following two year term. Each term will begin on January 1. Each term will end on December 31 and each Board member shall serve until a successor has been appointed. Members may be re-appointed to succeeding terms. Vacancies may be filled in the same manner as a regular appointment. (3) Board members shall be an elected official serving on the respective governing body except for that member selected by a majority vote of the other members. Each respective governing body may appoint an alternate to attend meetings in the place of a regularly appointed Board member. The alternate shall be appointed in the same manner and must meet the same qualifications as the regularly appointed Board member. C. Tigard may appoint city officials as ex officio members of the Intergovernmental Water 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 at least three (3) votes, excluding abstentions. E. The Intergovernmental Water Board will make recommendations to the Tigard City Council on water service issues and will have the following responsibilities: (1) to make a continuing study of the rate structure of the water system. INTERGOVERNMENTAL AGREEMENT TIGARD/WATER DISTRICT - 3 (12/23/93 - FINAL) (2) to consider and prepare plans for and make recommendations to the Council for a long-range operation and management program. (3) to investigate and study means of effecting economies in operation and management. (4) to review and make recommendations to the Budget Committee and Council on all budget requests for operation and maintenance. (5) to study and consider ways and means of improving the water system and services which it provides. (6) to study and make recommendations on Tigard's program for providing insurance for system assets and operations. (7) to make a continuing review of any and all rules and regulations regarding the water system which may be adopted by the Council and periodically to make recommendations to the Council for additions or amendments of such rules and regulations. (8) to work with other agencies and jurisdictions in a cooperative effort to plan for the future water supply needs of the area. (9) to make recommendations to the Council relative to all of the above-mentioned matters and as to any other matters which the Intergovernmental Water Board may feel to be for the good of the water system, the overall public interest and for the benefit of the consumer. F. Power to Grant Variances (1) Except when prohibited by subsection 2 of this section, upon application, the Intergovernmental Water 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 material adverse effect upon the water system and it is consistent with established policies of the Tigard City Council. (2) The Intergovernmental Water Board may not grant variances relating to annexation of property, fire protection requirements, cross-connection requirements, fees, rates and charges. INTERGOVERNMENTAL AGREEMENT TIGARD/WATER DISTRICT - 4 (12/23/93 - FINAL) 4. Division of Oriainal District Assets. A. Pursuant to ORS 222 . 540 (4) , the District agrees that the division of assets after withdrawal from the original District by the Cities shall be consistent with the following concepts: (1) Assets include real, personal and intangible property. "Intangible property" includes but is not limited to: moneys, checks, drafts, deposits, interest, dividends and income. (2) Assets will be divided into two groups: a. System Assets: Assets necessary for the operation of Tigard's water supply system throughout the original District, not including those "other assets" of Tigard. Personal and intangible property are system assets. Water mains, service installations, structures, facilities, improvements or other property necessary for operation of the City of Tigard's water supply system throughout the original District are system assets. b. Other Assets: Assets not necessary for the operation of the City of Tigard's water supply system throughout the original District. Other assets shall become the property of the jurisdiction in which the asset is located. Water mains, service installations, structures, facilities, improvements or other property not necessary for the operation of the City of Tigard's water supply system throughout the original District are other assets. B. All system assets and other assets shall be pledged by the Cities and the District to Tigard. All system assets and other assets shall be managed by Tigard and shall be utilized by Tigard in order to provide water services to properties, residences and businesses in the original District. C. Should one of the Cities or the District terminate its water service agreement with Tigard, the Cities' and the District's proportionate interest in a system asset shall be determined based upon the following formula: Jurisdiction' s Proportionate Interest = (A + B + C) /3 A = Jurisdiction's Percentage of Current Consumption in original District B = Jurisdiction's Percentage of Current Real Market Value in original District INTERGOVERNMENTAL AGREEMENT TIGARD/WATER DISTRICT - 5 (12/23/93 - FINAL) C = Jurisdiction's Percentage of Current Meters in original District The Cities ' and the District's proportionate interest in a system asset capital improvement shall be based upon the capital improvement's depreciated value. The depreciated value shall be based upon the useful life of the capital improvement under generally accepted accounting principles using a straight line method of depreciation. D. Upon termination of this Agreement, other assets shall become the property of the jurisdiction in which the asset is located. 5. Asset Ownership/Water Rates/Revenues. A. Tigard's Utilization of Assets. (1) The Parties agree that all system assets in which the Parties have an undetermined proportionate interest and all other assets received as a result of the division of assets after withdrawal from the original District by the Cities shall be utilized by Tigard in order to provide water services to properties, residences and businesses in the original District. The District' s ownership interest in the assets shall remain though the assets are being utilized by Tigard, unless and until transferred to Tigard by agreement or operation of law. Tigard will maintain and insure the real and personal property assets it utilizes. The Parties agree to execute all documents necessary to allow utilization of the assets by Tigard. (2) Tigard agrees that it will maintain, preserve and keep the assets it utilizes in good repair and working order. Tigard may appropriate from the water fund all moneys necessary to meet this obligation. (3) Tigard shall keep the assets free of all levies, liens and encumbrances except those created by this Agreement or consented to by the governing body of the District in writing. The Parties to this Agreement contemplate that the assets will be used for a governmental or proprietary purpose by Tigard and, therefore, that the assets will be exempt from all property taxes. Nevertheless, if the use, possession or acquisition of the assets are determined to be subject to taxation, Tigard shall pay when due all taxes and governmental charges lawfully assessed or levied against or with respect to the assets. Tigard shall pay all gas, water, steam, electricity, heat, power, telephone, utility and other charges incurred in the operation, maintenance, use, occupancy and upkeep of the assets. Where there is shared use of the INTERGOVERNMENTAL AGREEMENT TIGARD/WATER DISTRICT - 6 (12/23/93 - FINAL) assets, these costs will be shared in an equitable manner. (4) Tigard shall maintain (i) casualty insurance insuring the assets against loss or damage by fire and all other risks covered by the standard extended coverage endorsement then in use in the State of Oregon and any other risks reasonably required by District in an amount equal to at least the replacement value of the assets and, (ii) liability insurance that protects District, including its officers and commissioners, from liability arising from Tigard's operation of the water supply system in an amount satisfactory to District and (iii) worker's compensation insurance covering all employees working on, in, near or about the assets as required under the laws of the State of Oregon. Tigard shall furnish to District, certificates evidencing such coverage. All such insurance shall be with insurers that are authorized to issue such insurance in the State of Oregon, shall name District as additional insured and shall contain a provision to the effect that such insurance shall not be canceled or modified materially and adversely to the interest of District without first giving written notice thereof to District at least ten (10) days in advance of such cancellation or modification. All such casualty insurance shall contain a provision making any losses payable to Tigard and District as their respective interests may appear. Tigard may meet any of these requirements through a self-insurance program. Such insurance requirements may be waived in writing by the governing body of the District. (5) To the extent permitted by law, Tigard shall indemnify, protect, hold harmless, save and keep harmless District from and against any and all liability, obligation, loss, claim and damage whatsoever, regardless of cause thereof, and all expenses in connection therewith, including, without limitation, counsel fees and expenses, penalties and interest arising out of or as the result of the entering into of this Agreement, the ownership of any asset or any accident in connection with the operation, use, condition, possession, storage or return of any asset resulting in damage to property or injury to or death to any person; provided, however, that Tigard shall not be deemed to be indemnifying District for claims arising from its own conduct. The indemnification arising under this paragraph shall continue in full force and effect notwithstanding the termination of this Agreement for any reason. B. The fees, rates and charges charged by Tigard for providing water services to properties, residences and businesses in District shall be the same as those charged within Tigard. Notwithstanding the foregoing, Tigard may impose higher fees, rates and charges for providing water service to properties, residences INTERGOVERNMENTAL AGREEMENT TIGARD/WATER DISTRICT - 7 (12/23/93 - FINAL) 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 fees, rates and charges imposed for providing water service shall be reviewed by the Intergovernmental Water Board prior to taking effect and shall be limited to covering the actual additional costs of providing such service. When higher fees, rates and charges are imposed, they shall be consistently applied in both Tigard and the remainder of the original District, except that at the request of the District, Tigard will collect on behalf of the District additional charges imposed by the District on District customers. C. Moneys/Revenues. (1) Moneys and revenues for system capital improvement shall be held by Tigard in a fund dedicated solely for this purpose. (2) Moneys transferred to Tigard as a result of the division of assets after withdrawal from the original District by Tigard which were previously dedicated by the District to system capital improvement shall be used solely for system capital improvement by Tigard in accordance with subsection 5.D. (3) Moneys deposited in a reserve fund for revenue bonds of the water system are not a system asset and are not subject to the system asset distribution formula in Section 4 of this Agreement. (4) The Parties agree to develop a methodology for system development charges and to impose and collect such charges in their respective jurisdictions. If any of the Cities or District fail to impose system development charges as contemplated herein, then the other parties may elect to terminate collecting system development charges within their jurisdictions. The Parties agree that Tigard should collect the system development charges imposed by the District until such time as Tigard imposes its own charge. D. Capital Improvements. (1) (a) Capital projects shall be implemented in accord with a long-range capital improvement program supported by sound engineering analysis, in the best interests of water customers within the original District, ignoring city boundaries. INTERGOVERNMENTAL AGREEMENT TIGARD/WATER DISTRICT - 8 (12/23/93 - FINAL) (b) The capital improvement program must be approved by the governing bodies of one less than the number of jurisdictions holding an ownership interest in the water system. A governing body may not unreasonably withhold consent if the program is supported by sound engineering analysis, is in the best interests of water customers within the original District and consistent with the goal of working together to provide all of the residents and property in the original District with a clean, economical water supply. If a proposed capital improvement program is not approved as provided for in this subsection, then the governing bodies of any two jurisdictions may request mediation under the provisions of ORS Chapter 36 to determine if approval of the program has been unreasonably withheld. (c) Tigard shall prepare and deliver to the District a proposed Capital Improvement Plan no later than June 30, 1994 for consideration by the Cities and the District. The District' s Capital Improvement Plan dated June, 1993 , will guide Tigard' s spending on capital projects until a capital improvement program is adopted pursuant to subsection (b) . (2) The capital improvement program shall establish the location of a capital improvement whether within Tigard, King City, Durham or the District and shall distinguish whether a capital improvement qualifies as a system asset or other asset. (3) Capital improvements made subsequent to entering into this Agreement that are determined to be other assets shall become the property of the jurisdiction in which the improvement is located. For capital improvements made subsequent to entering into this Agreement that are determined to be system assets, the Cities and the District each shall have a proportionate interest in such "system asset" capital improvement's depreciated value. The depreciated value shall be based upon the useful life of the capital improvement under generally accepted accounting principles using a straight line method of depreciation. The Cities' and the District's proportionate interest in such "system asset" capital improvement' s depreciated value shall be determined based upon the formula in Section 4 .D. of this Agreement. (4) Should one of the Cities or the District terminate its water service agreement with Tigard, such jurisdiction shall have rights to the use of all system assets equal to its Jurisdiction's Proportionate Interest as INTERGOVERNMENTAL AGREEMENT TIGARD/WATER DISTRICT - 9 (12/23/93 - FINAL) determined above. Tigard shall be provided reasonable compensation for any use of its water system necessary for the continued reasonable use of a system asset by a jurisdiction. If the asset is not essential to the operation of such jurisdiction's water system, Tigard may terminate such jurisdiction's rights in the system asset capital improvement by payment of a sum equal to the Jurisdiction's Proportionate Interest in the depreciated value of such system asset. (5) The Parties acknowledge that the water system currently serving the original District is an integrated system. To the extent that either Party should terminate this Agreement, the Parties agree to cooperate with each other and to enter into such agreements necessary for the continued reasonable operation of the resulting water systems. E. Long-term water supply contracts shall be entered into in accord with the best interests of water customers within the original District, ignoring city boundaries. Long-term water supply contracts must be approved by the governing bodies of one less than the number of jurisdictions holding an ownership interest in the water system. A governing body may not unreasonably withhold consent to a contract if the contract is supported by sound engineering analysis, is in the best interests of water customers within the original District and consistent with the goal of working together to provide all of the residents and property in the original District with a clean, economical water supply. If a proposed long-term water supply contract is not approved as provided for in this subsection, then the governing bodies of any two jurisdictions may request mediation under the provisions of ORS Chapter 36 to determine if approval of the contract has been unreasonably withheld. F. The District shall receive an annual rebate equal to 1% of the previous year' s water sale revenue within the District for District expenses. In addition, Tigard, at the District's request, will appropriate and deliver an amount not to exceed $40, 000 from Tigard's initial (1/94 to 6/94) water fund budget for District operating expenses for the period from January 1, 1994 through June 30, 1995. Tigard will reimburse the District from water system revenues the cost of the District' s Division of Assets study undertaken to fulfill the District's obligations pursuant to ORS 222. 540. G. Accounting (1) Water activities will be accounted for in the same manner as other enterprise activities currently under the jurisdiction of Tigard. Expenditures directly linked to INTERGOVERNMENTAL AGREEMENT TIGARD/WATER DISTRICT - 10 (12/23/93 - FINAL) water activities will be recorded in the water fund. Applicable indirect charges will be apportioned to the water fund in the same manner as such charges are apportioned to other enterprise funds to properly reflect the costs associated with each activity. Tigard shall use generally accepted accounting principles applicable to utility enterprises for the recording and identifying of all revenues and expenditures made for the water system. The Intergovernmental Water Board shall review such allocation and methodology. (2) The accounting method used by Tigard shall, to the extent possible, document the use of assets by Tigard for non- water system activities. Use of assets by Tigard for non-water activities shall be funded from resources other than the water fund. H. The Parties to this Agreement shall not have the right to transfer ownership of or remove system assets or any interest therein received or kept as a result of the Cities' withdrawal from the original District or any interest in system assets acquired during the term of this Agreement without written consent of the other Party. Neither the benefits received by the District nor the obligations incurred under the terms of this Agreement are assignable or in any manner transferrable by the District without the written consent of the City. I. No part of this Agreement shall be interpreted as a waiver of either Party' s statutory rights upon annexation of territory. 6. Indebtedness. A. Each of the Parties shall be liable for their respective share of the debt, if any, acquired or retained as a result of the Cities' withdrawal from the original District. B. Tigard may incur, without the consent of the District, debt relating to the water supply system, provided payment of the debt is fee, rate or charge based. If the debt is to be paid for by means other than fees, rates or charges, Tigard must have approval and consent of the governing body of the District in writing prior to incurring such debt. The District shall be liable for its proportionate share of any debt for which it has given its written approval and consent. C. Tigard is authorized to perform the function and activity of incurring water revenue bond indebtedness for the water system by authorizing the issuance of water revenue bonds pursuant to ORS 288.805 to 288.945, as amended, for the financing of water system capital improvements. Such debt may be secured by a pledge of INTERGOVERNMENTAL AGREEMENT TIGARD/WATER DISTRICT - 11 (12/23/93 - FINAL) water system revenues, appropriate rate covenants, and mortgaging of water system assets. Tigard may not mortgage water system assets without first receiving the written consent of the Cities' and District's governing bodies. D. If this Agreement is terminated by either Party and indebtedness remains under Section 6.A. or has been incurred and approved by the District in manner described in Section 6.B. , District shall either: 1. Pay in full, within 60 days of the effective date of termination, its proportionate share of the indebtedness; or 2 . Pay annually its proportionate share of the indebtedness as payment is due. 7. Services Provided By Tigard. A. Tigard will provide water to properties and customers in all jurisdictions equally. If circumstances require water restrictions, each jurisdiction shall share equally. The District may not sell water provided through this Agreement to a third party without the prior written consent of Tigard. B. Tigard will provide equally and in a manner consistent with the terms of this Agreement all services required for delivery of potable domestic water to properties and customers within the cities of King City and Durham as well as the territory of the District, including but not limited to system repair and maintenance, water distribution, new installations, system upgrades, and billing functions. Tigard is under no obligation to provide such water services to areas annexed to the District subsequent to this Agreement. C. District agrees that Tigard is empowered to use any right of condemnation possessed by the District that is necessary to provide water services consistent with the terms of this Agreement, and will take any action necessary for Tigard to exercise that right on the request of Tigard. D. To the extent that such agreements or contracts are transferrable, the District agrees to take the necessary action to transfer its water supply agreements or contracts with the City of Portland and the City of Lake Oswego to Tigard in order to facilitate the provision of water services consistent with the terms of this Agreement. INTERGOVERNMENTAL AGREEMENT TIGARD/WATER DISTRICT - 12 (12/23/93 - FINAL) E. The District may use the former Tigard Water District office building for meetings of the District Board and for receipt of the Board's correspondence. To the extent that Tigard charges other governmental entities for use of the building, the District agrees to compensate Tigard a reasonable amount for use of the building. F. Tigard agrees to assist the District in preparation of budgets, organization and noticing of meetings and other administrative duties at the request of the District. The District agrees to compensate Tigard a reasonable amount for such assistance. 8. Rules and Regulations. A. The Rules, Rates and Regulations for Water Service Handbook, (November, 1992) , adopted by the Board of Commissioners Tigard Water District is attached hereto as Exhibit "A" and shall be deemed a part of this Agreement. B. The Tigard City Council may modify, alter or repeal the rules, rates and regulations in Exhibit "A. " Rules and regulations will be modified, altered or repealed only after the Intergovernmental Water Board has had the opportunity to study the proposed rules and regulations. The Intergovernmental Water Board is empowered to make a continuing review of any and all rules and regulations regarding the water system which may be adopted by the Council and periodically to make recommendations to the Council for additions or amendments of such rules and regulations. The Parties agree to comply with the rules and regulations currently in effect and as hereafter adopted by the Tigard City Council, and water service to the District shall be governed thereby. 9. Extension of Service. A. Extension or modification of District's water distribution system shall be done only with prior written approval of District. Furthermore, Tigard will not make any extensions or service connections within King City' s or Durham's Urban Growth Boundary without permission from the King City or Durham City Council. B. For the unincorporated area within the District, it is the governing body of the District which, subject to the rules and regulations specified in Section 8, has the authority to allow connections to the water supply system. C. Residents located within the District shall 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 City. INTERGOVERNMENTAL AGREEMENT TIGARD/WATER DISTRICT - 13 (12/23/93 - FINAL) 10. 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. 11. Annual Meeting. The governing bodies of the Parties to this Agreement shall meet annually with the Intergovernmental Water Board to discuss and consider issues related to this Agreement. The Intergovernmental Water Board and the Tigard Water Department shall issue an annual report on its activities to the Parties at this meeting. 12 . 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. Attorney fees which are awarded pursuant to this Section may not be paid from the fees, rates and charges collected by Tigard for water services. 13 . Applicable Law. This Agreement shall be governed by and construed in accordance with the laws of the State of Oregon. 14 . Ratification of this Aareement. Prior to the effective date of this Agreement, each Party shall enact a resolution ratifying the Agreement. This Agreement may be simultaneously executed in several counterparts, each of which shall be an original and all of which shall constitute but one and the same instrument. 15. Amendments. Any amendment to this Agreement must be approved by the governing bodies of the District and Tigard. INTERGOVERNMENTAL AGREEMENT TIGARD/WATER DISTRICT - 14 (12/23/93 - FINAL) 16. Effective Date. This Agreement shall be effective January 1, 1994. CITY OF TIGARD, OREGON Attest: By: TIGARD WATER DISTRICT, OREGON Attest: By: tigard\tigardWD.iga(12/23/93 -final) INTERGOVERNMENTAL AGREEMENT TIGARD/WATER DISTRICT - 15 (12/23/93 - FINAL) EXHIBIT "A" r:.'2 RULES, RATES, . AND t : REGULATIONS For Water Service November, 1992 Adopted by the BOARD OF COMMISSIONERS TIGARD WATER DISTRICT 4 . • , 1 Phone 503/639-1554 TIGARD WATER DISTRICT 8777 SW Burnham PO BOX 230000 NOVEMBER 1992 Tigard, OR 97223 Tigard,OR 97281-1999 r . • TIGARD TO THE PATRONS OF WATER DISTRICT TIGARD WATER DISTRICT : = BOARD OF COMMISSIONERS This Water District is a municipal corporation, incorporated under the laws of the State of - Position Term Oregon, and its operations are governed by law. It - No. Expires is governed by a Board of Commissioners, duly • - June 30 elected by the qualified voters of the District. - • Robert Wyffels; Chair - 3 1993 ' Audrey Castile, Secretary 5 1995 The water supply and distribution system is the Clarence Nicoli, Treasurer 4 1995 property of the people of the District. Jon Kvistad { 1 1993 . John T. Haunsperger 2 1993 The Commissioners ask the cooperation of all patrons to insure observance of rules, protection • of the system, and prompt payment of water bills. Administrative Director Notify the District immediately of any condition Jeri L. Chenelle needing correction. Superintendent The Board of Commissioners meets regularly on Randy J. Volk the second Tuesday of each month at 7:30 p.m. at the District office. q 2 3 . RULES, RATES, AND REGULATIONS charges for these are shown in Appendix 1. The : • ': of the - size of meter shall be determined by management. TIGARD WATER DISTRICT District shall prescribe the number of buildings to be served from one meter and such determination • shall be final. No user shall furnish water to any The Board of Commissioners has adopted the family, business, institution, or premises other than • following rules, rates, and regulations for service those occupied by that user; provided, however, -• in the Tigard Water District. that the Board may permit a user to supply others through user's service connection, in which event • Section 1. Application for Service. No service such user will be charged an additional monthly will be supplied or water furnished to any premises minimum for each additional user so supplied. except upon the written application of the legal Such permit may be revoked and separate service owner of the premises, or his duly authorized . connections required at any time. agent, upon the printed forms of the District. Such , owner shall be responsible for all charges for Section 5. Furnishing Water. The District shall service to said premises, whether supplied to not be obligated to furnish and install, at its himself or to a renter or occupant thereof, and for expense, system facilities for all property within the the compliance of any occupant with all rules of District. The District shall, so far as reasonable the District. and practicable and within its financial means, however, provide adequate source of supply, Section 2. Use of Water. Water will be furnished necessary primary feeder mains, storage facilities • for ordinary domestic, business and community and other improvements necessary to make water s purposes, and fire protection, only. No water will service generally available to all areas within the be furnished for the direct operation of steam District. Extensions to furnish water to areas not -=: , boilers, machinery or golf courses, except on an now served by the District will be made at the interruptible basis, and the District will assume no expense of those persons requesting service. responsibility therein. Such extensions will be made by the District or by .- _1- those expressly authorized by the District. All - Section 3. Service Size. A standard service applications for line extensions to provide new connection, with 5/8" x 3/4" meter, will be service are subject to review by the Board of :-•- ; installed from the main to the street curb or Commissioners. Consideration will be given to the • property line. (See charges in Appendix I.) The - District's ability to serve and to eligibility for amount of the meter installation charge shall annexation to the District of the property to be accompany all applications. Larger meters may served. be required for some services. The additional ii 4 5 i ' Section 6. Private Service Pipes. All pipes from Plumbing should be of high test and first class,- • ;( the meter to the premises must be installed in and where pressures may become high, on 5/8" x accordance with good engineering practice, and 3/4" and 1" meters, a pressure regulator may be maintained in good order by the user. Pipes must installed at the meter by the District to control i be laid 24 inches deep and provided with a stop varying pressures. (On meters 1 1/2" and larger, and waste valve for drainage, and all standpipes user is responsible for installing a pressure or fittings of any kind must be so located, regulator.) The District will not be responsible for - - anchored and installed as not to interfere with or damage from varying pressures. The Administrator - _ endanger the meter. All pipes must be well or authorized person may inspect pipes and - - protected from freezing. plumbing at proper times. ' . ' Section 7. Credit for Water Leaks. When a water Section 10. Physical Connections with other i leak occurs on the customers side of the water = Water Supplies or Systems. Neither cross I meter resulting in an unusually high water bill, connections nor physical connections of any kind customers can apply for a credit to their water bill shall be made to any other water supply, whether equal to 1/2 the cost of the leak (above the private or public, without the written consent and normal bill), up to a maximum of$150. Customers approval of the Board of Commissioners, and the must apply for credit in writing, to the Water written approval of the Oregon State Board of District, and forward proof of the leak being fixed Health. (Included in this category are all pipe lines, in a timely manner. appurtenances and facilities of the District system and all pipes, appurtenances, pumps, tanks, Section 8. Jurisdiction. All service connections, storage reservoirs, facilities, equipment, appli- meters, mains and parts of the system through ances, etc., of other systems whether located - which water is served, except the pipes beyond within or on public or private property, or the _ the meter, are the property of the District, and premises of a water user.) under its exclusive control. No person other than .. the Administrator or authorized person shall install The District's Administrator or other authorized any service, make any extension, turn the water representative shall have the right without being on or off, or otherwise tamper or interfere with the deemed guilty of trespass or unlawful act to check water or the system. the premises of users for physical connections with other water supplies. Any such connection Section 9. Waste—Plumbing—Inspection. shall be removed by the customer within ten days Water will not be furnished to premises where itis after written notice to remove is given by the allowed to run or waste to prevent freezing, or District. If not removed within the time specified, • through defective plumbing, or otherwise. the District may remove or discontinue any _ i.'� 6 7 connection which it may have for servicing the tion or pollution due to cross connections.• '! property. Water service to any premises shall be contingent upon the customer providing cross connection i1 Section 11. Cross Connection Control control in a manner approved by Tigard Water Program. Be it resolved that the Board of District. Backflow devices required to be installed Commissioners, Tigard Water District, hereby shall be a model approved by the Oregon State adopts a cross connection control program as Health Division. . described below, effective May 13,1986: Authorized employees of Tigard Water District with • The purpose of this resolution is to protect the proper identification shall have free access at - water supply of Tigard Water District from reasonable hours of the day to those parts of a ' contamination or pollution from potential cross premise or within buildings to which water is connections; and to assure that approved supplied. Water service may be refused or backflow devices are tested annually. . terminated to any premise for failure to allow necessary inspections. The installation or maintenance of any cross connection which would endanger the water ADOPTED by the Board of Commissioners, Tigard supply of Tigard Water District is prohibited. Any Water District, on May 13,1986. ii such cross connection now existing or hereafter installed is hereby declared unlawful and shall be These requirements must be strictly observed as a rectified as directed by the Board of Commission- matter of public health and to prevent any possible ers or its authorized representative(s). contamination of the water system. - . a, The control or elimination of cross connections Section 12. Reading—Billing. Meters will be read shall be in accordance with the regulations of on or about the 20th day of each month for the Oregon State Health Division. The policies, precedingtwo months. Fifteen days or less will be :- :. � l; 9 Y procedures, and criteria for determining appropri- billed as a half-month. Over 45 days will be billed = ate levels of protection shall be in accordance with as two full months. . the Accepted Procedure and Practice in Cross Connection Control Manual, Amer. Water Works Section 13. Payment—Delinquency. All bills are Association, Pacific Northwest Section, current due on the 12th day of the calendar month edition (OR Admin. Rules, Ch. 333-61.070). following billing. The amount due must be paid to ; . an authorized agent of the District. Unpaid bills 1 It shall be the objective of Tigard Water District to become delinquent after the 12th of the month. ii protect the potable water system from contamina- When a delinquent bill is not paid, or a rule is . y 1 . . . . . { TIGARDWATER .. . . . DISTRICT . 11 1 . 89 ,I violated, the water will be shut off and service Section 18. Main Extensions, designed and „' disconnected until payment is received in full, and installed by the District. All extensions of mains 1 compliance with all rules is made. and laterals of the District, and installed by the i District, shall be paid for by the person or their • Section 14. Water Rates. See Appendix II. assigns who desire such extensions, at cost plus r Charge for turning off and on when water service 10% for overhead and supervision, and 8% for • r is discontinued for non-payment of bill: $5.00 for 4 engineering. The estimated cost thereof, together = the first two times; $10.00_ thereafter. with such 18%, shall be deposited with the District when application for such main extensions is Section 15. Discontinuance of Service for 30 made. • . days or more will be made upon written applica - tion, without charge, provided all bills are paid. Designed by others, installed by the District. 1When design or supervision of installation of 1 Section 16. Interrupted Service—Changes in , improvements is performed by licensed engineers, Pressure. The water may be shut off at any time subject to approval by the Water District,and for repairs or other necessary work with or without installed by the District, a fee shall be paid of 10% notice. Conditions may cause a variation of the for administration, inspections, water loss, pressure. The District will not be responsible for sampling, etc., and 2% for engineering review. any damage caused by interruption of service or The estimated cost therof, together with such varying pressure. When service is interrupted, hot 12%, shall be deposited with the District when water faucets should be kept closed to prevent application for such main extentions is made. back flow of hot water or steam. Designed and installed by others.When design, Section 17. Service Connection Maintenance. or supervision of installation of improvements is • The Water District will maintain all standard performed by licensed engineers, and installation +- service connections in good repair withoutis performed and paid for by others, subject to expense to the users. Each user is required to use approval by the District, a fee of 12% of construe- . reasonable care and diligence to protect the water tion costs shall be imposed for development I meter and meter box from loss or damage by charges. freezing, hot water, traffic hazards, and other '; causes, in default of which, such user shall pay to Size of such extensions, type of pipe, location, _ the Water District the full amount of the resulting gate valves, fixtures, fire hydrants and other damage. fittings shall be under District specifications and . subject to District approval, and such mains shall be laid from the end of the existing main to the far . . 1 - I �I iil. fpi0 • 11 ,, end of the property to be served. No lines or and approved by District personnel to ensure • laterals shall be laid until the estimated cost compliance with plans and specifications. i, thereof, as hereinabove set forth, shall have been Back-filling of trenches prior to District approval is I deposited with the District. All such extensions of 1 unauthorized. mains and laterals, and installation of fire hydrants 1. shall be the sole property of the District, without 1 If water main extension is necessary to serve an . right of immediate refund on the part of the person existing single family dwelling and the main size or persons paying for such extension or on the required by the Tigard Water District is larger than `'E, part of any person or persons whomsoever. No a 6" line, then that single family dwelling will pay -1 extension of main will be permitted, accepted or the cost of a 6" installation across the front of their . served by the District unless such line be at least a property, plus the cost of the meter. 6-inch diameter pipe. Short extensions, such as cul-de-sacs, can be of smaller diameter upon Applicant(s) will agree to be bound by and comply approval of the District. with the District's main extension policy and rules and regulations and any subsequent revisions or When a person is required to pay the cost of amendments to same which may be made from extending a water main adjacent to property other time to time. than that person's own so that water service for ti domestic use is provided for such other property Section 19. Limitation on the use of water as to without further extension of the water main, the hours, purpose, or manner, may be prescribed District shall require the owner of the other from time to time by the Board. property, prior to providing water service to that property, to refund to the person required to pay Section 20. Temporary or Transient Service. the cost of extending the water main, a pro rata Temporary or transient service for construction portion of the cost of extension. The right to work will be rendered upon deposit in advance of require such refund shall not continue for more I connection charge and one month's estimated than 10 years after the date of installation of the water bill, and payment on the first of each month extension of the water main. The amount to be of all accrued charges. Upon discontinuance of refunded shall be determined by the District and : service, refund will be made for all connection such determination shall be final. materials usable by the District at their depreciated value, less the cost of removal and all charges , • Each construction contractor shall be approved by due. No temporary service shall be installed for competent District authority prior to installing pipe any residence or building where a permanent lines, pumps, etc. Those installations made by service connection may later be installed. .. private contractors will be thoroughly inspected li _` 12 13 Section 21. Construction Water. Water used via Section 26..Amendments—Special Rules—.. - a permanent meter installation for construction I Contracts. The Board may at any time amend, I; purposes will be billed at the one month's rate change or modify any rule, rate or charge, or make (See Appendix II) at completion of construction, any special rule, rate or contract, and all water • but not to exceed a period of 6 months, unless service is subject to such power. authorized by the District. Section 27. Grievances. Any unresolved , grievances as to service or complaint shall be . Section 22. Meter Out-of-Order—Test. If a meter reported and will be considered by the Board at shall fail to measure accurately, the bill shall be the next regular monthly meeting. the average for the same periods in prior years. - . Tests will be made periodically without charge to Section 28. The Administrator and Employees . the user. A user may demand a test upon payment are not authorized to make any changes in these of a $5.00 charge for such test. If the meter reads rules, rates, or regulations. 5% or more over, such charge shall be rebated to 1 . the user. Section 23. Fire Hydrants. Fire hydrants will be Approved November 28,1972 installed by the Water District upon receipt of i Revised November, 1992 payment in advance of the estimated cost of the ! BOARD OF COMMISSIONERS hydrant, fittings, and installation, plus 10% for overhead. Section 24. Fire Hydrant—Temporary Use. Any . person who desires to use a fire hydrant for temporary water supply must obtain permission of t -the District. The user will be charged $25.00 for hook-up service plus the effective user rate as • shown in Appendix II plus $25.00/month for - continued use. User is responsible for repair and/ 1 or replacement of damaged meter. ( Section 25. Illegal Use of Fire Hydrant or Meter. ` The penalty for connection to a fire hydrant or meter without proper authority is a $100 fine. 1 sem�;?�: 15 14 ; _ . APPENDIX !—Meter Installation Charges APPENDIX II—Water Rates ,, Copper Service, including P-R Valve Monthly Minimum* Out of District if required, Connection Fee Meter Size (400 cubic feet) (Additional) . Size of Meter Charge Schedule5/8"x3/4" $ 6.50 $ 2.50 .. 1" 10.50 4.00 . _ System 1 1/2" 16.50 6.00 Development Installation Total Meter Size Charge Fees Charges 2" 33.50 10.00 . 3" 61.50 15.00 . 5/8"x3/4" $ 845 + $250 = $ 1095 4"` 103.50 19.00 1" 1690 + 350 = 2040 . 6" 144.50 28.00 1 1/2" 4225 + 715 = 4940 8" 201.00 38.00 2" 6760 + 945 = 7705 , Rate over 400 cubic feet: $1.20 per 100 cubic feet. 3" 13,520 + cost plus 10% 4" 21,125 + cost plus 10% Fire Rates (Sprinklers) will be based on the size of 6" 42,250 + cost plus 10% the service going into the building or vault: 8" 67,600 + cost plus 10% 6" $15 a mo.— & smaller 10" 97,175 + cost plus 10% $20 a mo.—8" & larger Bull Mountain Meter Rates Booster Pumps: For areas served by District 4 owned and operated booster pumps, either to . 5/8"x3/4" $1000 + $250 = $1250 1" 2000 + 350 = 2350 storage or direct to the system, an additional 1 1/2" 5000 + 715 = 5715 minimum of $1.50 per month per meter (regard- 2" 8000 + 945 = 8945 less of meter size) shall be made. This charge is 3" 16,000 + cost plus 10% not applicable to the booster pumps located at SW 4" 25,000 + cost plus 10% 72nd and Hunziker Road and SW Bonita Road 6" 50,000 + cost plus 10% near 1-5. • 8" 80,000 + cost plus 10% 1 10" 115,000 + cost plus 10% Fire Service Connection: i • Note: Billing is bi-monthly so amounts above Fee $1,250 per Fire Service Tap + 12% Fee I should be multiplied by 2 to compute bill for each based on Construction Costs. period. I • . • ATTENTION - - .- Corrections to Rules, Rates and Regulations,January 1993. • These changes to the Rules, Rates and Regulations for Water Service occurred after printing. Please insert the following in the appropriate places.Wording changes within paragraphs are underlined. We apologize for any problems this may have caused. Section 4. Separate Connection. (Add the entire section.) A separate service connection will be required for each dwelling, apartment or motel, place of business,and institution. All outlying buildings and premises used as a part of such dwelling place or business or institution may be served from such connection, as well as all buildings on such premises operated under the one . . management. District shall prescribe the number of buildings to be served from one meter and such determination shall be final.No . ' user shall furnish water to any family, business, institution or premises other than those occupied by that user; provided, however, that the Board may permit a user to supply others through users'service connection in which event such user will be charged an additional monthly minimum for each additional user so supplied. Such permit may be revoked and separate service connections • • • required at any time. Section 9: (Change second sentence to read) ". . . Plumbing should be of high test and first class and in conformance with the - . appropriate codes of the iurisdiction issuing the buildina permit,and where pressures may become high,on 5/8"x3/4"and 1"meters, a pressure regulator may installed at the meter by the District to control varying pressures. . . . • Section 12: Reading--Billing. (Eliminate the entire section.) Section 18: (Add sentence at the beginning of the last paragraph in Section 18.) The developer or owner reauestino the construction oroiect shall be liable for any added cost due to desian difficulties. Section 22: (Delete$5.00.) (Add) ". . ..A user may demand a test upon payment of a$25.00 charge for such test. . . " VISITORS PLEASE REGISTER Date: - a7 - t1 3 Meeting: TIN 0 SOec0-1 3Carc -1-(e46 Name (please prints Do you wish to speak? (yes or no) 1. 2. 3. 4. 5. J\��6. r�y 7. 8. 9. 10. 11. 12. 13. 14. 15.