Lake Oswego - Joint Water Supply Plan l .-7c) I
FIFTH AMENDMENT TO INTERGOVERNMENTAL AGREEMENT
REGARDING WATER SUPPLY FACILITIES, DESIGN, CONSTRUCTION, AND
OPERATION
THIS FIFTH AMENDMENT to Intergovernmental Agreement Regarding Water Supply Facilities,
Design, Construction and Operation (Fifth Amendment) is effective this -° �-+`'day of����
2018, by and between the City of Lake Oswego (Lake Oswego) an Oregon municipal corporation, and
the City of Tigard (Tigard), an Oregon municipal corporation. Lake Oswego and Tigard may also be
referred to individually herein as a "Party" and collectively as "Parties."
Recitals
WHEREAS, on August 6, 2008 the Parties executed an Intergovernmental Agreement
Regarding Water Supply Facilities, Design, Construction and Operation, and which was subsequently
amended by the First Amendment, Second Amendment, Third Amendment and Fourth Amendment,
(the agreement with all amendments is referred to herein as the "Agreement." ); and
WHEREAS, the Agreement requires that within a time certain after the Initial Expansion is
constructed, property interests held in the name of Lake Oswego are to be conveyed to Tigard in
proportion to its allocation of water supply capacity; and
WHEREAS, the Agreement provides that from time to time exhibits may be revised or new
exhibits added based upon further evaluation and studies; and
WHEREAS, further evaluation and studies have occurred and the Parties agree that certain text
amendments and a new Exhibit 8 should be added to clarify proportionate ownership and to reflect
the final reconciliation of costs owed by Tigard to acquire its proportionate interest in real property
held in the name of Lake Oswego; and
NOW, THEREFORE, THE PARTIES AGREE TO THIS FIFTH AMENDMENT TO THE AGREEMENT AS
FOLLOWS:
Section 1. Addition of Exhibit. Exhibit 8 (Tigard Buy-In Final Reconciliation) is added to the Agreement
in the form attached to this Fifth Amendment as Attachment 1.
Section 2. Payment of Costs Due. Within thirty days after the effective date of this Fifth Amendment,
Tigard will pay the City of Lake Oswego $311,312 representing full and final reimbursement of costs
for real property interests acquired by Tigard.
Section 3. Section 4.2 of the Agreement is amended as follows (deleted text str+Eken, new text bolded
and double-underlined):
4.2 Anticipated Ownership
FIFTH AMENDMENT TO INTERGOVERNMENTAL AGREEMENT REGARDING WATER SUPPLY FACILITIES, DESIGN,
CONSTRUCTION AND OPERATION
1 �
At the completion of the Initial Expansion, the Parties' percentage ownership
shall be allocated as set forth in €xhi Exhibits 6 and 8 attached hereto and
incorporated by reference. Where assets are listed on both Exhibits 6 and 8 the
allocations in Exhibit 8 shall control.
Section 4. Section 5.1 of the Agreement is amended as follows (deleted text StFieken, new text bolded
and double-underlined):
5.1 Creation of Common Ownership
Title to or easements rights to all properties over, under or upon which Supply
Facilities are or shall be located (Property) shall remain in the name of Lake
Oswego until the conclusion of the Initial Expansion. Tigard shall have an
equitable interest as if it were a vendee under a land sale contract. Within 90 30
days following substantial completion of the Initial E the effective date
of the fifth amendment to this Agreement, Lake Oswego will, by Warranty Deed
for fee interests) and assignment (for easement rights), convey to Tigard an
undivided proportionate interest as tenant in common in the Property as set
forth on €+fait Exhibits 6 and 8, attached hereto and incorporated by reference.
Where assets are listed on both Exhibits 6 and 8, the allocations in Exhibit 8
shall control. The Parties agree the Property owned by Lake Oswego as of the
date of this Agreement shall be valued in 2008 dollars. Property acquired after
the date of this Agreement shall be acquired proportional to ownership
according to the purchase price paid. Closing costs for the Lake Oswego transfer
to Tigard shall be shared equally.
Section 5. Section 5.2.2.2 of the Agreement is amended as follows (deleted text StFieken, new text
bolded and double-underlined):
Following transfer, Lake Oswego and Tigard shall be responsible for all costs
related to the Property in proportion to their respective interests as set forth on
€xhib*t :7 Exhibits 6 and 8. Where assets are listed on both Exhibits 6 and 8, the
allocations in Exhibit 8 shall control. Such costs shall be included in the monthly
invoices under Section 7.1.4.
Section 6. Entire Agreement. Except a specifically amended by this Fifth Amendment, the Agreement
remains in full force and effect.
SIGNATURE LINES TO FOLLOW
FIFTH AMENDMENT TO INTERGOVERNMENTAL AGREEMENT REGARDING WATER SUPPLY FACILITIES, DESIGN,
CONSTRUCTION AND OPERATION
2 1 P � g °.-
IN WITNESS WHEREOF the Parties have dated and signed this Agreement
City of Lake Oswego City of Tigard
Mayor Dated Mayor Dated
ATTEST: ATTEST:
7-2lwvl
City Recorder Dated City Recorder Dated
APPROVED AS TO FORM: APPROVED AS TO FORM:
City Attorney Dated City Attorney Dated
FIFTH AMENDMENT TO INTERGOVERNMENTAL AGREEMENT REGARDING WATER SUPPLY FACILITIES, DESIGN,
CONSTRUCTION AND OPERATION
31
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FOURTH AMENDMENT TO INTERGOVERNMENTAL AGREEMENT
REGARDING WATER SUPPLY FACILITIES, DESIGN, CONSTRUCTION, AND
OPERATION
THIS FOURTH AMENDMENT to Intergovernmental Agreement Regarding Water Supply
Facilities, Design, Construction and Operation (Fourth Amendment) is effective this 251h day of
October, 2016, by and between the City of Lake Oswego (Lake Oswego) an Oregon municipal
corporation, and the City of Tigard (Tigard), an Oregon municipal corporation. Lake Oswego and
Tigard may also be referred to individually herein as a "Party" and collectively as "Parties."
Recitals
WHEREAS, on August 6, 2008 the Parties executed an Intergovernmental Agreement
Regarding Water Supply Facilities, Design, Construction and Operation (Agreement); and
WHEREAS, since the execution of the original Agreement, the Parties have identified the need
for an additional capital project to replace a roof on an existing water storage reservoir ("WR1"); and
WHEREAS, the Parties have concluded that it is in the best interests of both to share in the cost
to replace the roof and to jointly fund the ongoing operating and maintenance cost of WR1; and
WHEREAS, Exhibit 7 to the Agreement setting forth an allocation of system improvement costs
to the parties requires adjustment reflecting the changes described in these recitals;
NOW, THEREFORE, THE PARTIES AGREE TO THIS FOURTH AMENDMENT AS FOLLOWS:
Section 1. Revision of Exhibits. Exhibit 7 (Allocation of System Improvement Costs to the Parties) is
revised to read as set forth in attached Exhibit 7.
Section 2. Entire Agreement. Except a specifically amended by this Fourth Amendment, the
Agreement dated August 6, 2008 as subsequently amended by the First Amendment, Second
Amendment, and Third Amendment remains in full force and effect.
SIGNATURE LINES TO FOLLOW
Fourth Amendment to IGA— Lake Oswego-Tigard Water Partnership
11 Page
IN WITNESS WHEREOF the Parties have dated and signed this Agreement
City of Lake Oswego City of Tigard
10(Z'o o (6
Mayor Dated ayor Dated
ATTEST: ATTEST:
City Recorder Dated City Recorder Dated
APPROVED AS TO FORM: APPROVED AS TO FORM:
as 1
City Attorney Dated Ci Attorney Dated
Fourth Amendment to IGA—Lake Oswego-Tigard Water Partnership
21 Page
EXHIBIT 7
ALLOCATION OF SYSTEM IMPROVEMENT COSTS TO THE PARTIES
Lake Oswego Tigard
Cost of
Improvements Allocation(%) Share($) Allocation(%) Share($)
Project Costs*
Water Treatment Plant
-38 mgd Expansion $74,966,399 37.16% $27,857,514 62.84% $47,108,885
River Intake Pump Station $12,932,668 20/38 $6,806,667 18/38 $6,126,001
Raw Water Pipeline $24,540,330 20/38 $12,915,963 18/38 $11,624,367
Finished Water Pipeline $52,856,778
-WTP to South Side of Oswego Lake $25,583,609 20/38 $13,465,057 18/38 $12,118,552
-South Side of Oswego Lake to North Side of Oswego Lake $9,732,139 12/30 $3,892,856 18/30 $5,839,283
-North Side of Oswego Lake to Waluga Reservoir** $13,466,442 0% $500,000 100% $12,966,442
-Waluga Reservoir to Bonita Pumping Station $4,074,588 0% - 100% $4,074,588
Waluga Reservoir#2 $8,329,497 1.7/3.5 $4,045,756 1.8/3.5 $4,283,741
Bonita Pumping Station $8,273,901 0% 100% $8,273,901
Waluga Reservoir#1-Roof Replacement $2,903,000 50% $1,451,500 50% $1,451,500
Sub-Totals $184,802,573 38.20% $70,935,313 61.80% $113,867,260
Program Costs
Program Management,Permitting,Construction Management $34,696,785 38.20% $13,254,172 61.80% $21,442,613
Sponsor/Staff Cost(wages,transfers,materials&services,testing) $13,257,000 38.20% $5,064,174 61.80% $8,192,826
SCADA System Services $1,861,684 38.20% $711,163 61.80% $1,150,521
Legal,Land Use/ROW and Other Professional Services $9,644,000 38.20% $3,684,008 61.80% $5,959,992
Construction Contingency $8,437,000 38.20% $3,222,934 61.80% $5,214,066
Sub-Totals $67,896,469 38.20% $25,936,451 61.80% $41,960,018
Total Costs $252,699,0421 38.20% $96,871,764 61.80% $155,827,278
* Project costs include design,construction,and mitigation contingency and are presented in 2014 dollars(assumed mid-point of construction).
** -Lake Oswego's half of cost to upsize this reach of FWP to 36-inch so that existing 18-inch can be retired;otherwise, LO pays 0%of new pipe in this reach.
Amendment 4 to Intergovernmental Agreement
THIRD AMENDMENT TO INTERGOVERNMENTAL AGREEMENT
REGARDING WATER SUPPLY FACILITIES, DESIGN, CONSTRUCTION, AND
OPERATION
THIS THIRD AMENDMENT to Intergovernmental Agreement Regarding Water Supply Facilities,
Design, Construction and Operation (Third Amendment) is effective this 19th day of
December 2013, by and between the City of Lake Oswego (Lake Oswego) an Oregon municipal
corporation, and the City of Tigard (Tigard), an Oregon municipal corporation. Lake Oswego and
Tigard may also be referred to individually herein as a "Party" and collectively as "Parties."
Recitals
WHEREAS, on August 6, 2008 the Parties executed an Intergovernmental Agreement
Regarding Water Supply Facilities, Design, Construction and Operation (Agreement); and
WHERAS, since the execution of the original Agreement, the scope of the Project under the
Agreement has changed from beginning with an "Initial Expansion" of Supply Facilities to provide
Capacity of 32 million gallons of water per day (mgd), to instead encompass the full contemplated
"Long Term Expansion," with a Capacity of 38 mgd; and
WHEREAS, the Parties have concluded that it is in the best interest of both to adjust the
allocation of Capacity from the expanded water supply facilities to transfer 4 mgd of Capacity from
Lake Oswego to Tigard, resulting in 20 mgd being allocated to Lake Oswego and 18 mgd being
allocated to Tigard; and
WHEREAS, the shift in allocation, plus the addition of Mapleton Drive properties as assets
under the Agreement and correction of original "buy-in" calculations, necessitates a payment from
the City of Tigard to the City of Lake Oswego based on new costs share applied to costs paid by Lake
Oswego on the 4mgd to date and the additional "buy-in" amount for the Mapleton Drive properties;
and
WHEREAS, Exhibit 6 to the Agreement outlining Tigard's buy-in costs, and Exhibit 7 to the
Agreement setting forth an allocation of system improvement costs to the parties, require
adjustments reflecting the changes described in these recitals; and
WHEREAS, the Parties desire to expedite the timeframe for reviewing the Agreement to
consider whether changes are necessary or desirable to reflect the transition from an agreement
regarding construction to an agreement regarding long term operations;
NOW, THEREFORE, THE PARTIES AGREE TO THIS THIRD AMENDMENT AS FOLLOWS:
Section 1. Updating References and Eliminating Inconsistencies. The Agreement is amended to refer
to a single Expansion having 38 mgd Capacity, in place of all references to an Initial Expansion or a
Long Term Expansion.
Section 2. Allocation of Capacity. The Agreement is amended to adjust any statements of allocations
of Capacity to state an allocation of 20 mgd to Lake Oswego and 18 mgd to Tigard. Specifically, and
without limiting the foregoing, Section 4.3 of the Agreement is amended to read as follows:
4.3 Allocation of Capacity
At the completion of the Expansion, Tigard's allocation of Capacity shall be 18 million gallons
of water per day, and Lake Oswego's allocation shall be 20 million gallons per day.
Section 3. Payment. Within 60 days following the execution of this Third Amendment, Tigard shall
pay Lake Oswego the sum of Five Million One Hundred Thirty One Thousand Three Hundred Ninety
Dollars ($5,131,390), consisting of$1,272,846 as an additional "buy-in" amount that results from
adding the Mapleton Properties to the Agreement assets and correcting original buy-in calculations,
plus $3,858,544 to reimburse Lake Oswego for costs paid to date by reason of the 4 mgd of Capacity
that is transferred to Tigard pursuant to Section 2 of this Third Amendment.
Section 4. Sales to Others. Article XI of the Agreement is amended to read as follows:
Article XI Sales to Others
In addition to the Existing Wholesale Customers, Retail Customers of any Party, existing mutual
aid agreements, or extension of service to service areas identified in the Carollo Report, either
Party may contract for the sale or use of water within that Party's allocation of Capacity to any
other person, provided that the contract is on a surplus basis. Any additional sale of water
contracts that are not on a surplus basis, or any other contracts for sale or use of the Supply
Facilities, shall require the approval of the other Party and compliance with the terms of this
Agreement. Any revenues derived from the sale of water to another entity shall be paid to the
Managing Agency. Net proceeds from such sales shall be credited back to the Parties based on
a method as mutually agreed. Net proceeds shall be those proceeds remaining after expenses,
renewals and replacements and contingencies are paid.
Section 5. Modifications to Governance and Management Structure. Section 15.1 of the Agreement is
amended to read as follows:
15.1 Modification to Agreement
Within one year after approval of this amendment, the Oversight Committee shall undertake a
review of all agreements to date to consider any modifications to the terms and conditions of this
Agreement that may be necessary or desirable, including any modifications needed to transition from
an agreement regarding construction to an agreement regarding long term operations. Matters that
may be considered include, but are not limited to, changes in ownership, water rights limitations,
conditions of approval and legal settlements, governance and management structure. At the
recommendation of the Oversight Committee, the Councils for the parties may consider:
15.1.1 Modification of the existing Agreement(s);
15.1.2 Replacement of existing Agreement(s) with a new Agreement:
15.1.3 Creation of a Supply Agency under ORS Chapter 190.
Section 6. Revision of Exhibits. Exhibit 6 (Determination of Tigard Buy-In)and Exhibit 7 (Allocation of
System Improvement Costs to the Parties) are revised to read as set forth in attached Exhibits 6 and 7.
Section 7. Entire Agreement. Except a specifically amended by this Third Amendment, the Agreement
dated August 6, 2008 as subsequently amended by the first Amendment and the Second Amendment
remains in full force and effect.
IN WITNESS WHEREOF the Parties have dated and signed this Agreement
City of Lake Oswego City of Tigard
-x'/.1 /, ,91,3
I /
Mayor Dated Mayor Dated
ATTEST: ATTEST:
City Reco r DateT City Recordef Dated
APPROVED AS TO F APPROVED TO
F M:
V
City Attorney Dated (( City Attorney Dated
EXHIBIT_6_
AMENDED AND CORRECTED TIGARD BUY-IN
Net
Original Cost Reproduction Tigard Tigard Share
Asset Tax Map Tax Lot Clackamas Co.Deed Cost Allocation
Clackamas River Intake&Pump Station $ 1.911,733 $ 1,832.454 0.00% $ -
Clackamas River Intake Land" 2 2E 20CA 15001 Bk 173,Pg 900-902 $ 10,450 $ 260,000 14/38 $ 95,789
Computer System/Software $ 214,222 $ 72,311 14/38 $ 26,641
Finished Water Transmission $ 2,111,711 $ 5,440,227 0.00% $ -
General Plant $ 61,500 $ 15,561 14/38 $ 5,733
Raw Water Transmission $ 612,137 $ 2,460,521 14/38 $ 906,508
Waluga Reservoir $ 1,281,427 $ 1,960,196 0.00% $
Subtotal $ 1,034,671
Waluga Reservoir:Land
Reservoir Property 2 IE 07 AD 03100 Doc 72-06414 n/a $354,508 14/38 $ 130,60R
Waluga Res 41* 2 1E 07AD 00700 Doc 76-36977 n/a $1,407,287 14/38 $ 518,474
4800 Carmen Dr" 2 lE 07AD 00900 Doc 92-063461 $ 323,300 $945,353 14/38 $ 348,288
Vacant Parcel* 2 1 E 07AD 01000 Doc 92-063461 $ 323,300 $945,353 14/38 $ 348,288
Water Treatment Plant $ 9.731,005 $ 11.704,894 0.00% $ -
Water Treatment Plant Land
4260 Kenthorpe Way-parcel 1" 2 1 24BD 00300 Bk 688,Pg 581 n/a $2,425,478 14/38 $ 893,597
4260 Kenthor Way-parcel 2" 1 2 1 E 24BD 1 00401 1 Doc 79-35248 1 n/a $271,975 14/38 $ 100,201
Subtotal $2.339.456
I 4245 Mapleton Dr.*(RMV) 2 IE 24BD 01200 Doc 89-10200 S 85,000 $ 509,554 18/38 $241,368
4305 Mapleton Dr.*(RMV) 2 1E 24BD 01300 Doc 95-33429 $ 190,000 $ 504,459 18/38 $238,954
4315 Mapleton Dr.`(RMV) 2 1E 24BD 01400 Doc 89-13210 $ 116,000 $ 504,459 18/38 $238,954
xxxx Mapleton Dr.` RM 2 1E 24BD 01500 Doc 89-13210 $ -
Totals *less 2006-108190 $ 16,971,785 $ 31,614,589 Subtotal $719,276
'Net reproduction cost for these properties are based on an appraisal conducted by Integra Realty Resources(July 2008).
Total S 4,093,404
Corrected Tigard
Buy-in
Mapleton Property Total= $719,276
Other WTP property total= $2.339,456
All non-property totals= $1.034,671
Total Tigard Allocation= $4,093,404
Prior Paid by Tigard= (52,820,558)
Balance Due= S1,272,846
EXHIBIT 7
ALLOCATION OF SYSTEM IMPROVEMENT COSTS TO THE PARTIES
Cost of Lake Oswego Tigard
Improvements Allocation(%) Share($J Allocation(%) Share($)
Project Costs*
Water Treatment Plant
-38 mgd Expansion $ 74,966,399 37.16% $ 27,857,514 62.84% $ 47,108,885
River Intake Pumping Station $ 12,932,668 20/38 $ 6,806,667 18/38 $ 6,126,001
Raw Water Pipeline $ 24,540,330 20/38 $ 12,915,963 18/38 $ 11,624,367
Finished Water Pipeline $ 52,856,778
WTP to South Side of Oswego Lake $ 25,583,609 20/38 $ 13,465,057 18/38 $ 12,118,552
South Side of Oswego Lake to North Side of Oswego Lake $ 9,732,139 12/30 $ 3,892,856 18/30 $ 5,839,283
North Side of Oswego Lake to Waluga Reservoir $ 13,466,442 0%
$ 500,000** 100% $ 12,966,442
Waluga Reservoir to Bonita Pumping Station $ 4,074,588 0% $ - 100%
$ 4,074,588
Waluga Reservoir $ 8,329,497 1.7/3.5 $ 4,045,756 1.8/3.5 $ 4,283,741
Bonita Pumping Station $ 8,273,901 0% $ - 100% $ 8,273,901
Sub-Totals $ 181,900,000 38.20% $ 69,483,813 61.80% $ 112,415,760
Program Costs
Program Management,Permitting,Construction Management $ 34,696,785 38.20% $ 13,254,172 61.80% $ 21,442,613
Sponsor/Staff Cost(wages,transfers,materials&services,testing) $ 13,257,000 38.20% $ 5,064,174 61.80% $ 8,192,826
SCADA System Services $ 1,861,684 38.20% $ 711,163 61.80% $ 1,150,521
Legal,Land Use/ROW and Other Professional Services $ 9,644,000 38.20% $ 3,684,008 61.80% $ 5,959,992
Construction Contingency $ 8,437,000 38.20% $ 3,222,934 61.80% $ 5,214,066
Sub-Totals $ 67,896,000 38.20% $ 25,936,000 61.80% $ 41,960,000
Total Costs $ 249,796,000 38.20% $ 95,419,800 61.80%
$ 154,375,800
-Project costs include design,construction,and mitigation contingency and are presented in 2014 dollars(assumed mid-point of construction).
-Lake Oswego's half of cost to upsize this reach of FWP to 36-inch so that existing 18-inch can be retired;otherwise,LO pays 0%of new pipe in this reach.
FIRST AMENDMENT TO INTERGOVERNMENTAL
AGREEMENT REGARDING WATER SUPPLY FACILITIES,
DESIGN, CONSTRUCTION, AND OPERATION
THIS FIRST AMENDMENT to Intergovernmental Agreement Regarding Water
Supply Facilities, Design, Construction, and Operation (First Amendment) is effective
this q 9 day of Ote- , 2008, by and between the City of Lake Oswego (Lake
Oswego), an Oregon municipal corporation, and the City of Tigard (Tigard), an Oregon
municipal corporation
Recitals
WHEREAS, on August 6, 2008, the Parties executed the Intergovernmental
Agreement Regarding Water Supply Facilities, Design, Construction, and Operation
(Agreement), and
WHEREAS, the Agreement contained various exhibits setting forth current assets
and values thereof, as well as identification of assets to be constructed and construction
cost estimates, and
WHEREAS, the Agreement provides that from time to time the exhibits would be
revised based upon further evaluation and studies and specifically that the valuation of
existing assets would be conducted, and
WHEREAS, the valuation of certain assets has occurred and the Parties agree that
certain exhibits should be amended to reflect this updated valuation and also that some
existing assets should be deleted from the exhibits, and
WHEREAS, based upon the revised exhibits,the Parties further agree to amend
the amount of the initial payment to be made by Tigard to Lake Oswego to acquire
ownership in the existing supply facilities reflecting the updated valuation information,
and being fully advised,
NOW, THEREFORE, THE PARTIES AGREE TO EXECUTE THIS FIRST
AMENDMENT AS FOLLOWS
Section 1 Amendment of Exhibits 1, 6, and 7 The Parties agree to adopt
Exhibits 1, 6, and 7, attached hereto and incorporated by reference The assets set forth
in these Exhibits are the assets subject to the Agreement The Parties agree that the
Mapleton Drive properties (21E24BD Tax Lots 01200, 01300, 01400, and 01500)
(Mapleton Properties) are not included as assets subject to this Agreement, but shall be
added in the future if any permitting authority requires improvements or dedications of
any kind on the Mapleton Properties as a condition of approval of Project improvements
to the Water Treatment Plant Facilities or if the Mapleton Properties should otherwise
become necessary to be utilized as part of the Project If the Mapleton Properties are
added, appraisals will be performed and the exhibits shall be modified as necessary to
include the Mapleton Properties at the appraised value Upon the addition of the
Page- I FIRST AMENDMENT TO INTERGOVERNMENTAL AGREEMENT REGARDING WATER
SUPPLY FACILITIES,DESIGN, CONSTRUCTION AND OPERATION
Mapleton Properties, Tigard shall pay Lake Oswego a sum equaling the percentage of the
appraised value of those properties that equals Tigard's percentage of ownership of those
properties as stated in the original Exhibit 7 to this Agreement Addition of other assets
and valuation thereof may be made by subsequent agreement of the Parties and
amendment of applicable exhibits
Section 2 Section 4.1, System Ownership The Parties agree that Section 4 1,
System Ownership, shall be amended to read as follows
"4.1 System Ownership
On or before June 30, 2009, Tigard shall pay to Lake Oswego the
principal amount of Two Million Eight Hundred Twenty Thousand, Five
Hundred Fifty-Seven Dollars ($2,820,557 00), together with interest on
the principal amount at the rate Lake Oswego would have received if said
principal was invested in the Local Government Investment Pool from the
date of this First Amendment to the date of payment Lake Oswego agrees
to dedicate the amount paid as working capital to the Project Upon
payment, Tigard shall be granted by this Agreement an equitable interest
in the Supply Facilities as if it were a vendee under a land sale contract.
Title shall transfer upon completion of the Initial Expansion of the existing
Supply Facilities The Parties shall each then own undivided interests in
the Supply Facilities and Property Such ownership shall be a percentage
ownership in the Supply Facilities component as set forth in the exhibits in
this Agreement The existing assets shall be valued as shown on Exhibit 1
and the contributing partner shall receive a credit for the asset value If
the Initial Expansion is not constructed, Lake Oswego shall refund the
amount of Tigard's payment to Lake Oswego plus interest at the LGIP rate
within 30 days of the decision to abandon the Project and Tigard shall
have no further ownership or equitable interest in the Lake Oswego
Supply Facilities and Property Tigard will execute any document
required by Lake Oswego to convey any interest Tigard may have in Lake
Oswego Supply Facilities and Property
Tigard's purchase of its percentage share of the Supply Facility assets
shall be by capital contribution, mutually approved in kind contributions
or payment of design, permitting and construction costs for the system
expansion so that upon completion of the Initial Expansion, Tigard's
contribution shall equal its percentage ownership as shown in Exhibit 7.
Lake Oswego's percentage as shown in Exhibit 7 is based on its
contributed assets, financial contribution to the Initial Expansion mutually
approved in kind contributions and other mutually agreed factors."
Section 3 Section 5.1, Creation of Common Ownership The Parties agree that
Section 5.1, Creation of Common Ownership, should be amended as follows:
Page-2 FIRST AMENDMENT TO INTERGOVERNMENTAL AGREEMENT REGARDING WATER
SUPPLY FACILITIES,DESIGN,CONSTRUCTION AND OPERATION
5.1 Creation of Common Ownership
Title to or easements rights to all properties over, under or upon which
Supply Facilities are or shall be located(Property) shall remain in the
name of Lake Oswego until the conclusion of the Initial Expansion.
Tigard shall have an equitable interest as if it were a vendee under a land
sale contract. Within 90 days following substantial completion of the
Initial Expansion, Lake Oswego will, by Warranty Deed, convey to Tigard
an undivided proportionate interest as tenant in common in the Property as
set forth on Exhibit 6, attached hereto and incorporated by reference The
Parties agree the Property owned by Lake Oswego as of the date of this
Agreement shall be valued in 2008 dollars Property acquired after the
date of this Agreement shall be acquired proportional to ownership
according to the purchase price paid Closing costs for the Lake Oswego
transfer to Tigard shall be shared equally "
Section 4 Entire Agreement In all other respects, the Agreement dated
August 6, 2008, is in full force and effect except as may be specifically amended by this
First Amendment.
IN WITNESS WHEREOF the Parties have dated and signed this Agreement.
CITY OF LAKE OSWEGO CITY OF TIGA
6t�ljxzllr!
- , 44� 1
Mayor Mayor
12-a6- OK fi-"5-,e 9' X
Dated Dated //��
Attest Attest ���&e-4z�
City R corder City Recorder IV
&,e--. - Dox,
Date§ Dated
City Attorney City Attorney
Page-3 FIRST AMENDMENT TO INTERGOVERNMENTAL AGREEMENT REGARDING WATER
SUPPLY FACILITIES,DESIGN,CONSTRUCTION AND OPERATION
I Inteilm supply to Lake 0-9. (not allocated)
2 Raw Watez Intake (not allocated)
3 Raw Wa er Tran,ml
4 Water Treatment Plant Land
5 Watei Treatment Plant Structure, 6 Equipment (not allocated)
6 Fana,hed Tzanamin elon Mal: (not alloca C ed)
7 Walu9a Reeervoli Land it see rvolr Property)
8 Wa1u9a Renervoar St...turee s Equipment (not allocated)
9 Sonata Pump Station (not allocated)
10 Comp.[ r SY,[em/So E[ware
11 General Plant
Exhibit 1
Existing Real Property Supply Facility Components and Valuation
Currant Year 2008 Assumed Escalation 585
Ma 2008 ENR CCI 8190 Au ust 2008 ENR CCI
8,32
July
Acquisition Acquisition Original 2008 Today Acquisition Useful Ufe Depreciation
Allocation Asset Descrt tion Date Amount ENR CCI CCI Amount in ears Amount Value Today
Water Treatment Plant Land 1 165 8 362
4 Plant Site 6/3011968 $ 83 797 $ 606 676 Land $ $ 606 676
Sub Total $ 83 797 $ 606 676 $ $ 606 676
Raw Water Transmission 1 269 8362
3 Raw Water Transmission 6/30/1969 $ 590137 $ 3 B88 673 100 $ 1 516 582 $ 2 372 090
3 Piplelme Easements 6/30/1969 $ 22 000 $ 144 968 100 $ 56 537 $ 88 430
Sub Total $ 612137 $ 4033640 $ 1 573120 $ 2 460 521
Distribution Storage
7 Reservoir Property 629/1980 $ 3 237 8 362 $ Land $ $
Waluga Reservoir 3/30/1983 $ 1 281 427 4 066 8362 $ 2 635 340 100 $ 658 835 S 1 976 505
Sub Total $ 1 281 427 $ 2636340 $ 658 835 $ 1 976 505
CgrilDUier$VSiem6/$Olhyafe
10 SCADA System Upgrade 6/30/1991 $ 180 722 4 835 8 362 $ 312 554 20 $ 265 671 $ 46 883
10 Scads Software Upgrade SM/1999 $ 33 500 6 059 8 362 $ 46 233 20 $ 20 805 $ 25 428
Sub Total $ 214 222 S 158 787 $ 286 476 $ 72 311
General Plant
11 Other 6/8/1982 $ 17 000 3 825 8 362 $ 37 164 20 $ 37 164 $
11 Vehidas 618/1986 $ 24 000 4 295 8 362 $ 46 726 20 $ 46 726 $
11 Vehicles 6/30/1999 $ 20 500 6 059 83 62 $ 28 292 20 $ 12 731 $ 15 561
Sub Total $ 61 500 $ 112 182 $ 96 622 $ 15 561
Land Additions July 2008 OLV(land Only with upward adjustment per parcel by amendment)
7 Waluga Res 01 TL 700 1876 $ $ 1359685 Lend $ $ 1359585
7 4800 German or TL 900&1 DOG 1992 $ 323,000 $ 1 826 618 Lend $ $ 1 826 618
7 Vacant Parcel 0 66 ac cf TL3100 2008 $ $ 342 491 Lend $ $ 342 491
4 4260Kerithorpe Way-TL 300 1966 $ $ 2 343 796 Land $ $ 2 343 796
4 WTP PropertyTL 401 1979 $ $ 262 815 Land $ $ 262 815
4 4989 $ 88,000 ($3821661 Land $ ($382166)
4 4895 $ 190,000 ($378$44) Land $ ($378344)
4 4889 $ 116000 ($378344) Lentl $ ($378344)
4 x889 $ 116000 ($149o45) Lard $ ($149045)
Clackamas River Intake 8 Pump Station
Clackamas"tar Iraake Land 71811967 $ 10450 1 074 $ 260 000 Land S $ 260 000
Structure &30/1969 $ 121 980 1 269 8 362 $ 803 780 6o $ 522 457 5 281 323
Pumps&equipment &3011969 $ 50 826 1 269 0362 $ 334 908 40 $ 326 536 $ 8 373
Piping and Valves 613011969 $ 20 330 1 269 8362 $ 133 963 60 $ 87076 $ 46 887
Electrical i&C HVAC 613011969 $ 10 166 1 269 8362 $ 66 982 40 $ 65 307 $ 1 675
Seismic Upgrades 1980 $ 131 000 6 538 8362 $ 167 547 60 $ 78 189 $ 89 358
Pumps 1980 $ 40000 3 237 8362 $ 103 330 40 $ 72 331 $ 30 999
Pumps No 4 2002 $ 153 833 6 538 8 362 $ 196 750 40 $ 29 513 $ 167 238
Intake Fish Screen. 2002 $ 1 352 600 6538
B 362 $ 1 729 954 20 $ 518 986 $ 12109 8
Piping and Valves 1980 $ 10 000 3 237 8 362 $ 25 833 60 $ 12 055 $ 13 777
Electrical and HVAC 1980 $ 21 000 3 237 8 362 $ 54 248 40 $ 37 974 $ 16 275
Water Treatment Plant
Site Work &3011969 $ 155 915 1 269 8 362 $ 1 027 393 60 $ 667 805 $ 359 587
Concrete and Buildings 613011969 $ 479 739 1 269 8 362 $ 3 161 212 60 $ 2 054 788 $ 1 106 424
Pumps 6/30/1969 $ 4 197 1 269 8 362 $ 27 656 40 $ 26 964 $ 691
Mechanical Equipment 6/30/1969 $ 125 931 1 269 B 362 $ 829 815 40 $ 809 069 $ 20 745
Piping and Valves 6/30/1969 $ 191 695 1 269 8362 $ 1 264 481 60 $ 821 912 $ 442 568
Electrical I&C HVAC 6/30/1969 $ 191 895 1 269 8 362 $ 1 264 481 40 $ 1 232 869 $ 31 612
"It.Media and Undenlrams &3011969 126S
8 362 $ 40 $ $
Chemical Addit.I &3011969 1 269 8 362 $ 40 $ $
Clear Well &3011969 1269 8362 $ 60 $ $
Solids Dewatering Faait— 6/30/1969 1 269 8 362 $ 60 $ $
Mlacdlaneoua 613&1969 $ 11 993 1 269 8 362 $ 79 027 20 $ 79 027 $
Engmeermg &30/1969 1 269 8 362 $ 60 $ $
Expansion 1980 $ $0,221 3 237 8 362 $ 207 231 60 $ 96 708 $ 110 523
Site Work 1998 $ 510 000 5 920 8 362 S 720 375 60 $ 120 063 $ 600 313
Expansion 1980 $ 333,224 3 237 8 362 $ 860 803 60 $ 401 708 $ 459 095
Sel.mic/ADNCode 2000 $ 498,498 6 221 8 362 $ 670 060 60 $ 89 341 $ 580 718
Expansion 1980 $ 86 391 3 237 B 362 $ 223 170 60 $ 104 146 $ 119 024
Pumps
antl Equipment 1999 $ 507 925 6 059 8 362 $ 700 985 40 $ 157 722 $ 543 263
Expansion 1980 $ 67 879 3 237 0362 $ 175 349 60 $ 81 829 $ 93 519
Mechanics) 2001 $ 641 126 6 343 8 362 $ 845 199 40 $ 147 910 $ 697 289
Expansion 1980 $ 357 906 3 237 8 362 $ 924 563 60 $ 431 463 $ 4931 0
Expansion 1980 S 178 954 3,237 8 362 $ 462 284 60 $ 215 733 $ 246 551
Eta mcal 1999 $ 66 247 6 059 0362 $ 91 427 40 $ 20 571 $ 70 856
Electrical&Instrumentation 2001 $ 568 564 6 343 8 362 $ 749 540 40 $ 131 169 $ 618 370
Expansion 1960 $ 63,923 3 237 8362 $ 216 795 60 $ 101 171 $ 115 624
I'll.&Structural Work 2001 $ 416 886 6 343 8 362 $ 549 582 40 $ 96 177 $ 453 405
Sodium Hypochlorde System 1998 $ 282,793 5920
8 362 $ 399 445 40 $ 99 861 $ 299 584
Lune Satragaipaed System 1998 $ 1000,150 5 920 8 362 $ 1 412 723 40 $ 353 181 $ 1 059 542
CO2 St-
age/Feed System 1998 $ 238 357 5 920 8 362 $ 336 679 40 $ 84 170 $ 252 509
Alum Sotm9e/Feed System ISO$ $ 522 800 5,920 8 362 $ 738 455 40 $ 184 614 $ 553 841
Clear Well Elam' 1996 $ 107 293 5 622 8 362 $ 159 585 40 $ 47 875 $ 111 709
Solids Dewatering Lagoons 1999 S 1 084 518 6 059 8 362 $ 1 496 739 40 $ 336 766 $ 1 159 972
Expenalon 1980 $ 45,664 3 237 8 362 $ 117 962 60 $ 55 049 $ 62 913
Engineering 1998 $ 311,460 5 920 B 362 $ 439 937 60 $ 73 323 $ 366 614
Engmeenng 1999 $
120 000 6 059 8 362 $ 165 611 60 $ 24 842 $ 140 770
Engmeermg 2000 $ 126,653 6 221 8362 $ 170 242 6o $ 22 699 $ 147 543
Engmeermg 2001 $ 332,000 6,343 8 362 $ 437 677 60 $ 51 062 $ 386 615
$ 9 731 005 $ 11 704 894
Finished Water Transmission
24 Inch Finished Water Main 8/30/1969 $ 473 456 1 269 8 362 $ 3 119 810 100 $ 1 216 726 $ 1 903 084
WTP Transmission Main 6130/1969 $ 42 618 1 269 8 362 $ 280 829 100 $ 109 523 $ 171 306
North Shore Iron Mtn Pipelines 6/30/1970 $ 534 142 1 381 8 362 $ 3 234 247 100 $ 1 229 014 $ 2 005 233
Upper Dr Iron Mm 24 Inch Pipekn 6/3071986 $ 575 398 419S 8 362 $ 1 146 955 100 $ 263 800 $ 883 156
Cathodic Protection System 4112000 $ 466 097 6,221 8 362 $ 653 391 40 $ 130 678 $ 522 713
Sub Total $ 24 325 904 $ 38 086 415 $ 13 921 751 $ 35 869 557
Calculated Total Current
Acouisibon Value 2008 Value Depreciation Value
TOTAL ASSETS $ 26 678 987 $ 45 833 040 $ 16 536 804 $ 41 001 130
EXHIBIT_6_
DETERMINATION OF TIGARD BUY-IN
Net 1 igard
Oripmal Cost Reproduction Wocation I igard Share
ILS%ct Fax Map Tax 1 of Clackamas Co Deed Cost %
(la(kamas Rti er Intake t Pump Station $ 1 911 73' S 1 832 454 000% $ -
( tacl.amas Rtvc r Intake I anti* 2 2f 20CA I ii)()1 131. 173 Pg 900-902 S 10 450 $ 260 000 14/38 S 95,789
C-csmput'i S 21422' b 72311 14,38 S 26611
I tiiishGd it atci h an"Imssion J 2'1 11 711 S 5440,227 000% $ -
Cencial'1'lant S 61'500 $ 15 561 14!38 $1 5,733
Raii \lfYau Transunbsion $ 612 137 $ 2 460 521 14/38 $ 906 508
�k aluga Reservoir S 1 281 427 $ 1 960 196 000% $ -
%V aluga Reservoir-Land
Rescr%olr Properiy 2 1107 AD 03100 Doc 72-06414 1L'a $ 342491 14/38 $ 126 181
Waluga Re,it I* 2 11'07AD 00700 Doc 76-36977 n/a $ 13i9 585 11/38 -S 500 900
4800 Gmmcn DI# 2 1L-07AD 00900 Doc 92-063461 S 323 300 S 913 309 14,38 $ 336 482
Vacant Parcel* 2 11-07AD 01000 Doe 92-063461 S 323 300 $ 913 309 14/38 $ 336,482
Water I reatmcnt Plant S 9 731 005 $ 11 704 89.1 000% S -
Water Treatment Plant Land
4260 Kuithotlx.Wax -patfel 1" 2 11 24131) 00300 131.688,Pe 581 11"d S 2 343 796 1-1,'38 $ 863,504
4260 Kenthorlx Wav-parcel 2* 2 1 F 24131) 00401 Doi 79-35248 n/a S 262 815 14/38 $� 96 827
424q424qllopletoo-_nr* 2-43-2$111) 04gOO Po-f-99402-00 $ 13-,,,'100 `$--3$2,,!1.16 L'm'=��nn'-r••r799)
430-5 Mapleton D-r-* t���.i.7AR�ll1 oq,-95 334 9 $ i(�11111111 T
01�(i0 _, $ 3�IIr344" {$1-39;3AU3
4.345-M.*eton-D9 2 ire„zAD 04400 t?ocu9 13230 $ 1-16000 y 378;304- 438 ($449,390)
_cam=Mapleton-Qr! 2�I 9-1500 Doc 8'9 13'2! a $449'015 4”
1 of its *IcSS 2006-108190 $ 17 087 785 'S 31,169 368 S 2,820,158
'\,I seL (or tbs. condu,ted br Intei,ra Rwm Re---,0,1,20-81,Order%bqurdatmn Val—F-parccis nor+sr ri Lev Hereadlusi�d.p,—d bN.r F+ dmsntl
,11-1 nn°c bayed on Id mud M 3a rxd. pxns 11ted to T,gard
•'et Rrpn ducnan Cost uatudes escalauov b,LVk less depr aoo.
EXHIBIT
ALLOCATION OF SYSTEM IMPROVEMENT COSTS TO THE PARTIES
Cost of Lake Oswego Tigard
Improvement Allocation Allocation
(in 2006$) * (%) Share ($) (%) Share($)
Water Treatment Plant
- Existing Plant n/a 10000% n/a 000% $ -
- 32 mgd Expansion $ 39,430,000 2/16 $ 4,928,750 14/16 $ 34,501,250
- 3 8 mgd Expansion n/a 100% ** n/a 000% $ -
Raw Water Intake and
Pump Station $ 4,440,000 24/38 $ 2,804,210 14/38 $ 1,635,789
Raw Water
Transmission Main $ 23,920,000 24/38 $ 15,107,368 14/38 $ 8,812,633
Finished Water
Transmission Main
-Reaches 7-10 $ 38,220,000 24/38 $ 24,138,947 14/38 $ 14,081,053
-Reaches 11-12 $ 17,020,000 8/22 $ 6,189,091 14/22 $ 10,830,909
Storage(MG) $ 4,010,000 1 0/25 $ 1,604,000 1 5/25 $ 2,406,000
Bonita Road Pumping
Station $ 1,700,000 000% $ - 10000% $ 1,700,000
Total Costs $ 128,740,000 1 4254% $ 54,772,366 5746% $ 73,967,634
*-Project costs are presented in 2006 dollars Actual cost will depend on protect start and completion dates
**
-Second(6 mgd)expansion is currently assigned to Lake Oswego Contract provides for potential reallocation by agreement
INTERGOVERNMENTAL AGREEMENT REGARDING WATER SUPPLY
FACILITIES, DESIGN, CONSTRUCTION,AND OPERATION
DATED.. 14U.Sk b , 2008
BETWEEN
THE CITY OF LAKE OSWEGO
AND
THE CITY OF TIGARD
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I
TABLE OF CONTENTS
Page
RECITALS ............................................................................................................... 1
ARTICLEI Definitions.............................................................................................3
ARTICLE 11 Warranties and representations of the Parties..................................... 1 l
ARTICLE III Management........................................................................................ 12
ARTICLE IV System Ownership...:........................................................................... 19
ARTICLE V Property; Creation of Tenancy in Common.........................................21
ARTICLE VI Design and Construction of Supply Facilities.....................................24
ARTICLE VII Operation and Management................................................................28
ARTICLE VIII Supply Facilities.............................. ..32
ARTICLE IX Expansion .Rights and Requirements...................................................36
ARTICLEX Leasing................................................................................................40
ARTICLE XI Sales to Others............................................................:........................43
ARTICLE XII Operations Manual ..............................................................................44
ARTICLE XIII Withdrawal, Termination of Membership, Sale of Assets and
Dissolution ..........................................................................................46
ARTICLE XIV Dispute Resolution..............................................................................51
ARTICLE XV Completion of Initial Expansion of the Supply Facilities................... 53
ARTICLE XVI Notices.................................................................................................54
ARTICLE XVII General Provisions..............................................................................55
i
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LIST OF EXHIBITS
Exhibit 1 Existing Real Property, Supply Facility Components and Valuation -
Exhibit 2 Service Areas
Exhibit 3 Map of Supply Facilities
Exhibit 4 Surface Water Rights
Exhibit 5 Supply Facilities Capital Improvement Program (to be adapted by
Councils)
Exhibit 6 Determination of Tigard Buy-In
Exhibit 7 Allocation-of System Improvement Costs to the Patties
ii
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This Intergovernmental Agreement Regarding"" Water Supply Facilities, Design,
Construction, And Operation is dated hm LLS t LG' , 2008 (the "Agreement"), by
and between the City of Lake Oswego ("Lake Oswego"), an Oregon municipal
corporation and the City of Tigard ("Tigard"), an Oregon municipal corporation. Lake
Oswego and Tigard may also be referred to individually herein as a "Party" and
collectively as the "Parties."
RECITALS
WHEREAS, the City of Tigard operates a municipal water supply utility under
ORS 225, with transmission, storage and distribution facilities to deliver potable water to
Customers within the area of the Cities of Tigard, King City, Durham, and the remainder
of the Tigard Water District;
WHEREAS, the City of Lake Oswego operates a municipal water supply utility
under ORS 225, which treats and distributes potable water to Retail Customers and sells
water at wholesale to the Lake Grove Water District, the River Grove Water District,
Skylands Water Company, Glenmorrie Cooperative Association and Alto Park Water
District (the "Existing Wholesale Customers");
WHEREAS, Lake Oswego has existing water intake and water treatment
facilities, transmission, storage facilities (hereinafter "Supply Facilities") together with
distribution facilities and water rights;
WHEREAS, the Supply Facilities require capital improvements to repair and
replace existing assets and to construct new improvements, all at a significant cost;
WHEREAS, Tigard desires to acquire an ownership interest in the Supply
Facilities to obtain a permanent source of raw water and treatment facilities for potable
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water and also needs to make capital improvements for storage and transmission
facilities; and
WHEREAS, the Parties jointly funded a study by Carollo Engineers known as the
Lake Oswego and Tigard Joint Water Supply System Analysis dated July, 2007 ("Carollo
Report"); and
WHEREAS, the Parties agree that, based upon the Carollo Report, there are
significant benefits by jointly taking action to perfect existing water rights, construct,
repair, replace, expand and otherwise improve the Supply Facilities infrastructure
necessary to supply that water to the Parties and to realize or mitigate potential
environmental impacts and benefits; and
WHEREAS, prior to the execution of this Agreement, the Parties worked in a
collaborative, open, and participative manner to select an operating framework that best
serves the needs of the Parties, and this Agreement incorporates those precepts;
WHEREAS, the Parties agree that creation of this Intergovernmental Agreement
and investment by the Parties shall provide the Parties with stability and local control
over the source of supply, build ownership equity in the Clackamas River System,
provide for flexibility in the use and allocation of water, provide for flexibility for
management of water resources for enhanced costs and operation efficiency, create
opportunities to share and trade staff resources, expertise and technological capabilities,
and being fully advised,
NOW, THEREFORE, in consideration of the mutual covenants and agreements
contained herein, the Parties agree as follows:
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ARTICLE I
DEFINITIONS
1.1 Definitions
As used in this Agreement; the following terms when capitalized shall have the
following meanings:
1.1.1 Agreement—this Agreement
1.1.2 Book Depreciation Life — the years used to depreciate an asset in
accordance with Generally Accepted Accounting Principles.
1.1.3 Capacity capability from the various ,components of the Supply
Facilities to produce or deliver water; measured in cubic feet per second
(cfs), gallons, gallons per day (gpd), gallons per minute (gpm), million
gallons per day (mgd), or other comparable measurement and available
based on current operating conditions consistent with generally accepted
engineering and operating practices.
1.1.4 City of Lake Oswego — an Oregon Municipal Corporation in Clackamas,
Multnomah, and Washington Counties, Oregon.
1.1.5 City of Tigard— an Oregon municipal corporation in Washington County,
Oregon.
1.1.6 Clackamas River Intake Pump Station—an existing structure comprised of
a reinforced concrete building and all equipment and materials contained
therein or any future expansion, modification or replacement thereof that
allows water to be withdrawn from the. Clackamas River and pumped
through the raw water transmission line to the Water Treatment Plant
Facilities. The Clackamas River Intake Pump Station ownership and its
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agreed value. are more fully described in Exhibit 1 which, exhibit may be
updated and revised by resolution of the Parties.
1.1.7 Curtailment Plan — A written plan developed for curtailment of water
service in accordance with OAR Chapter 690 Division 86 rules.
1.1.8 Demand— the amount of water used or projected to be used by a Party and
imposed on the Supply Facilities to serve a.Party's Retail Customers its
Existing Wholesale Customers and ultimate service area measured in cfs,
gallons, gpd, gpm, mgd, or other appropriate measurement. The basis for
determining Demand may be waived ror modified by the Parties due to
unusual circumstances such as a fire, emergency, etc.
1.1.9 Depreciated Replacement Cost Value —the value calculated in the current
year by multiplying the original cost of the asset times the index in the
Engineering News Record Construction Cost Index 20-City Average,
1913=100 as published in the Engineering News Record for the year of
evaluation. The products shall be divided by Engineering News Record
Construction Cost Index 20-City Average, 191.3=100 as published in the
Engineering News Record for the year placed in service. The result shall
then be depreciated from the year placed in service to the year of
evaluation using the Book Depreciation Life. The formula* is expressed
as follows:
DRC —(CC*ENR' /ENR') *(1-(Ye-Y')/BDL))
Where:
DRC =Depreciated Replacement Cost Value.
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b .
CC = Construction cost.
ENR'= Engineering News Record Construction Cost Index for the
year of evaluation.
ENR'- Engineering News Record Construction Cost Index for the
year placed in service.
Ye -Year of evaluation.
Y°=Year placed in service.
BDL = Book Depreciation Life.
1.1.10 Existing Wholesale Customers — the Lake Grove Water District, River
Grove Water District, Skylands Water Company, Glenmorrie Cooperative
Association, and.Alto Park Water District who are served at wholesale by
Lake Oswego as if they were a Retail Customer of LO under the terms and
conditions of this Agreement. The Cities of King City and Durham and
the Tigard Water District are contractually served by Tigard and for
purposes of this Agreement shall be defined as existing wholesale
customers. The parties recognize that the status of these entities are
contractual and may change over time as determined by the affected Party
to this agreement and the existing wholesale customer.
1.1.11 Fiscal Year—the time period as defined under ORS 294.31 1(17).
1.1.12 Local Government Investment Pool (LGIP) — The Oregon State
Treasurer's Local Govemment Investment Pool, subject to regulatory
oversight by the Oregon Secretary of State and administered by the
Oregon State Treasury.
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1.1.13 Municipal Bond Index — The rate as published by the State of Oregon
Treasury Department entitled "Oregon Bond Index — Oregon A Rated 20
Year" for the first date after the beginning of the fiscal year. Should said
rate cease to be published, then the Parties shall determine another
comparable index. The date used for determination of the rate may be
modified by the Parties in the event of unusual market circumstances
(such as declaration of war by the United States).
L 1.14 Planning Forecast-the document submitted by the Parties in accordance
with Article 8.2 which shows the Demands of each Party to be imposed on
the Supply Facilities and the Capacity owned or leased by each Party in
such facilities.
1.1.15 Project — The design, permitting and construction of new and expanded
Supply Facilities, as generally described in the City of Lake Oswego and
Tigard Water Service Area Joint Water Supply System Analysis dated
July, 2,007 by Carollo Engineers ("Carollo Report") to provide 32 million
gallons per.. day capacity by 2016 (the Initial Expansion) with the
capability to 'further expand up to 38 million gallons (Longterm
Expansion) per day when it appears.the water demands of the Parties will
exceed 32 mgd. At the completion of Initial Expansion, the Lake Oswego
allocation shall be 18 million gallons per day and the Tigard allocation
shall be 14 million gallons per day.
1.1.16 Property—Property shall be parcels of real property owned in fee simple,
by easement or other interest over;, under or upon which the supply
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Facilities are or will be located as part of the Initial Expansion or Long
Term Expansion. Property currently held by Lake Oswego will remain in
the name of Lake Oswego until completion of the Initial Expansion. Until
completion of the Initial Expansion, Tigard shall have an equitable interest
as if it were a vendee under a land sale contract. Additional properties
acquired as part of the Initial Expansion or the Long Term Expansion shall
be acquired as tenants in common in proportion to the Parties' allocation
of capacity.
1.1.17 Retail Customers — A user within the Party's service area boundary to
which users.may be added from time to time by annexation, extra-
territorial extension of service, merger and/or consolidation or by
intergovernmental agreement among the Parties pursuant to ORS 190. A
municipal corporation or other entity, which purchases water for resale,
shall not be considered a Retail Customer.
1.1.18 Service Area — The existing and future service area for each Party as
identified in the Carollo Report, as set forth on Exhibit 2, and as may be
modified by the Parties or pursuant to Section 17.8.3 of this Agreement.
1.1.1.9 Summer Period—June 1 through October 31.
1..1..20 Supply Facilities — the facilities utilized by the Parties identified in the.
Carollo Report consisting of Water Treatment Plant Facilities,
Transmission Facilities, Water Storage Facilities, and other facilities
necessary for treatment and conveyance of potable water to the Parties. A
map of the Supply Facility components is provided in Exhibit 3, which
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exhibit may be updated and revised by resolution of`the_Parties. The map
is for illustrative purposes only and shall not be considered a legal
description of the Supply Facilities
1.1.21 Surface Water Rights—those water rights held by Lake Oswego registered
with the State of Oregon Water Resources Department, which allow for
diversion of water for use at the Water Treatment Plant Facilities. The
Surface Water Rights are more fully described in Exhibit 4, which exhibit
may be updated and revised by resolution of the Parties.
1.1_.22 Transmission Facilities — the raw water transmission line connecting the
Clackamas River Intake Pump Station to the Water Treatment Plant
Facilities and the finished water transmission line connecting the Water
Treatment Plant Facilities to Lake Oswego's Waluga Reservoir as
identified in the CarolIo Report. The Transmission Facilities, ownership
and their agreed value are more fully described in Exhibit-I which, exhibit
shall be updated and revised by resolution of the Parties.
1,.1.2.3Water Treatment Plant Facilities — the pumping stations and treatment
plant, which treat raw water and produce potable water for conveyance by
the Transmission Facilities. The Water Treatment Plant Facilities,
ownership, and their agreed value are more fully described in Exhibit 1,
which exhibit shall be updated and revised by resolution of the Parties
.within 30 days after the execution of this Agreement, following
completion of an updated appraisal.
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1.1.24 Water Storage Facilities — the existing Waluga Reservoir which receives
potable water from the Water Treatment Plant Facilities as conveyed
through the Finished Water Transmission Facilities and any future
expansion, modification or replacement thereof. The Water Storage
Facilities, ownership, and their agreed value are more fully described in
Exhibit 1; which exhibit shall be updated and revised by resolution of the
Parties.
1.1.25 Winter Period—November 1 through May 31.
1.2 Interpretation
In this Agreement, unless a clear contrary intention appears: (a) reference to any
person includes such person's successors and assigns but, if applicable, only if
such successors and assigns are permitted by this Agreement, and reference to a
person in a particular capacity excludes such person in any other capacity; (b)
reference to any gender includes each other gender; (c) reference to any
agreement (including this, Agreement), document or instrument means such
agreement, document or instrument as.amended or modified and in effect from
time to time in accordance with the terms thereof and, if applicable, the terms
hereof; (d) reference to any Article, Section, Schedule or Exhibit means such
Article, Section, Schedule or Exhibit to this Agreement, and references in any
Article, Section, Schedule, Exhibit or definition to any clause means such clause
of such Article, Section, Schedule, Exhibit or definition; (e) "hereunder,"
"hereof," "hereto," "herein," and words of similar import are references to this
Agreement as a whole and not to any particular Section or other provision hereof,
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(f) relative to the determination of any period of time, "from" means "from and
including," "to" means "to but excluding" and "through" means "through and
.including"; (g)"including" (and with correlative meaning "include") means
including without limiting the generality of any description preceding such term;
(h) reference to any law (including statutes and ordinances) means such law as
amended, modified, codified or reenacted, in whole or in part, and in effect from
time to time, including rules and regulations promulgated hereunder; and (i)
"will" and "shall" are mandatory terms.
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ARTICLE II :
WARRANTTES AND REPRESENTATIONS OF THE PARTIES
2.1 Warranties of the Parties
The Parties hereto warrant and represent that they have the legal authority to enter
into this Agreement.
.2.2 Approval of the Governing Bodies
The Parties to this Agreement hereby certify that they have undertaken the
necessary public procedures to approve and authorize the signatories to this
Agreement to act on behalf of the Party executing this Agreement.
23 Obligation of Good Faith and Fair Dealing
The Parties each covenant to deal fairly and in good faith with the other to fulfill
the covenants and requirements of this Agreement. Tigard has an existing water
supply contract with'the City of Portland that expires on July 1, 2016 unless
extended. Costs of water will increase after July 1, 201.6, because Portland is
expected to embark on a large-scale capital improvement program and the rate to
wholesale customers will increase to account for this capital construction. Also,
the timing and method of withdrawal after July 1, 2016 will leave Tigard with less
flexibility in extricating itself from the Portland contract. For these reasons,
having the initial expansion project complete by July 1, 2016 is of paramount
importance to Tigard. Lake Oswego recognizes Tigard's circumstances and
agrees it will undertake its best efforts in good faith to meet this schedule for the
initial expansion project.
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ARTICLE III
MANAGEMENT
3.1 Managing Agency
Lake Oswego shall be the Managing Agency to manage the operation,
maintenance, repair and replacement of the existing Supply Facilities and to
manage the planning, design and construction of the Initial Expansion of the
Project. Lake Oswego shall be the contracting agency with consultants and
contractors, and the named party on permits required from local, state, and federal
regulatory agencies: Lake Oswego shall have the power to a) approve contracts
and change orders subject to its purchasing rules, b) take such actions reasonably
necessary during.an emergency and c) other such powers as may be granted by
the Parties from time to time. Lake Oswego shall be responsible for conducting
the day=to-day business affairs including: payment of invoices, accounting,
budgeting, operation and- maintenance of the Supply Facilities, planning, project
management, maintaining records, and other such duties as required. Tigard shall
pay its share of costs in accord with the terms and conditions of this Agreement.
3.2 Technical Committee
Each Party shall appoint two technical representatives to meet at intervals deemed
appropriate for communication and coordination, and to keep the Project on
schedule. The Technical Committee shall review all methods of contracting,
requests for proposals, contracts, value engineering, designs, permit applications
and costs. The Technical Committee will endeavor in good faith to make
recommendations to the Managing Agency or Oversight Committee as the
Technical Committee deems appropriate or where required by this Agreement. If
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the Technical Committee cannot agree on a recommendation and is at impasse,
the matter will be referred to the Oversight Committee. The Technical
Committee must review and recommend to the Oversight Committee any
proposal by Lake Oswego to retain an outside project manager.
IS Oversight Committee,
Lake Oswego and Tigard shall each appoint two persons to the Oversight
Committee. The members shall serve at the pleasure of the appointing Council.
The Committee shall meet as deemed necessary by the Managing Agency or
Technical Committee to keep the Project on schedule, but in no event less often
than quarterly. The Oversight Committee shall review and the individual
members of the committee shall present to their respective Councils proposed
projects as identified in the Carollo Report or other proposed projects and related
matters and budgets or funding requests. The Oversight Committee will endeavor
in good faith to make recommendations to the Managing Agency or to the City
Councils as the Oversight Committee deems appropriate or where required by this
Agreement. If the Oversight. Committee cannot agree by majority, then the tie
vote shall be deemed a no vote so that no recommendation is made. The
respective City Councils will then consider and vote on the matter. The Oversight
Committee must review and approve any proposal to retain an outside project
manager. Nothing herein shall be deemed a waiver of a Party's right to submit
these matters to Dispute Resolution under Article XIV. The Managing Agency
shall be responsible to staff and assist the Oversight Committee to comply with
public meetings law and notice requirements as necessary.
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3A Budgeting and Accounting
The Managing Agency shall prepare a budget specific to the capital and operating
deeds of the Supply Facilities for each Fiscal Year. The budget shall include an
estimate of direct and indirect costs of personnel from either Party who are
anticipated to provide services as part of the ultimately approved budget. A draft
budget shall be prepared and distributed to the Technical Committee by March I"
for comment. A draft budget shall be prepared and distributed by the Managing
Agency to the Oversight Committee by April 30th. The final-budget must receive
approval by each.Party by June,30th. If any Party-uses a biennial budget cycle, the
dates above shall remain the same for the applicable budget preparation year and
that Party shall update the budget amounts anticipated for the off year for the
benefit of the other Party's budget process.
EachParty's proportionate share of the expenses of operation and maintenance of
the Supply Facilities; including reserves for repair and replacements, permitting,
design and construction and other expenses as may be incurred, shall be
estimated, and set forth in the annual budget, and the amount estimated shall be
recommended to be included as operating expenses, in each Party's individual
adopted budget. If the budget includes accumulation of funds designated for a
particular purpose or future use, such amounts shall be accumulated in a restricted
or earmarked fund. The Managing Agency shall maintain an independent budget
control procedure and provide budget reports at least quarterly to each of the
Parties not later than 30 days after the end of each quarter. This report shall show
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expenditures and receipts by budget item for each 'transaction through the last
working day of the preceding quarter.
3.5 Asset Managemeiit,Program
Within one year following substantial completion of the Initial Expansion, the
Managing Agency shall create a thorough inventory all of thee assets associated
with the Supply Facilities, including physical facilities and real estate holdings.
The inventory shall describe the current conditions of these Supply Facilities,
their current value (replacement cost less depreciation), and repairs and
replacements that may be necessary. The inventory shall include a schedule for
repairs and replacement. The Technical Committee may propose policies to the
Oversight Committee that guide, schedule and fund the repair and replacement of
the assets and suggest amendments to the Supply Facilities Capital Improvement
Program. The Oversight Committee shall then forward the draft inventory, any
_proposed policies and amendments to the Supply Facilities Capital Improvement
Program to the Council of each Party for its approval. The program and policies
shall be based on prudent utility practices and industry standards. Annually, the
inventory shall be reviewed for additions and deletions.
3.6 Council Decisions
Approval by the Councils of each Party is required for:
3.6..1 Any sale, transfer, lease, exchange, or other disposition of any Property
over, under, or upon Supply Facilities are located;
3.6.2 Entry to any mortgage, pledge, encumbrance or refinance of the Property
or Supply Facilities;
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3.6.3 Approval of any budget;
3.6.4 Approval of any nonemergency expenditure by the Managing Agency that
has not previously been approved and budgeted and that exceeds the
Managing Agency's authority under its purchasing rules to make the
expenditure without the approval of its Council, or a capital improvement
project not listed on the Supply Facilities Capital hnprovement Program.
If a capital improvement project has been budgeted and is part of the
supply Facilities Capital Improvement Program, the Managing Agency
shall be authorized to contract for all work necessarily related to deliver a
complete and functioning project;
3.6.5 Approval of any decision to burden the Property or Supply Facilities with
additional easements, licenses, or other encumbrances or to use the
property for non-water related purposes.
3.6.6 Approval of'any decision to change the usel or the operation of the
Property or Supply Facilities beyond adopted operational protocols;
3.6.7 Approval of the Initial Expansion or Long Term Expansion;
3.6.8 Approval of amendment of the Agreement to allow a new Party to join;
3.6.9 Approval of modification, alteration or dissolution of this Agreement;
3.6.10 Approval of a Supply Facilities Capital Improvement Program and
amendments. When adopted, it will become Exhibit 5 and made part of
this Agreement.
3.7 Use of Employees
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To the extent that any Party uses its own employees in the performance of its
duties under this Agreement, that entity shall be responsible for complying with
all applicable state and federal laws and for all employment related benefits and
deductions, workers' compensation premiums and pension contributions.
Decisions regarding employees shall be the sole responsibility of the Party who
employs him or her.
3.8 Audit, Record Keeping; Access to Records
The Managing Agency shall cause an annual audit to be conducted pursuant to the
requirements of ORS 207.425, 297.455, 297.465 and 297.466. The Managing
Agency shall maintain its books and records in such manner that the Supply
Facilities and expenditures related thereto are separately stated and capable of
review without being combined or mixed with the nonsupply facility assets.
The Managing Agency shall maintain all fiscal records relating to the Supply
Facilities and Project in accordance with generally accepted accounting
principles. In addition, the Managing Agency shall maintain any other records
pertinent to the Supply Facilities and Project in such a manner as to clearly
document the Managing Agency's performance hereunder. All such fiscal
records, books, documents, papers, plans, and writings shall be retained by the
Managing Agency and kept accessible as required by law.
The Managing Agency agrees that the other Party and its authorized
representatives shall have access to all books, documents, papers and records of
the Managing Agency which are directly related to the Supply Facilities and
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Project for the purpose of making any audit, examination, copies, excerpts and
transcripts.
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ARTICLE IV
SYSTEM OWNERSHIP; ALLOCATION OF CAPACITY
4.1 System Ownership
Upon execution of this Agreement, Tigard shall pay Two Million twenty five
Thousand, Three Hundred Sixty-One Dollars ($2,025,361.00) or such amount
based on the valuation analysis set forth in Exhibits 1 and 6 to Lake Oswego,
which Lake Oswego agrees to dedicate as working capital to the Project. Upon
payment, Tigard shall be granted by this Agreement an equitable interest in the
Supply Facilities as if it were a vendee under a land sale contract. Title shall
transfer upon completion of the Initial Expansion of the existing Supply Facilities.
The Parties shall each then own undivided interests in the Supply Facilities and
Property. Such ownership shall be a percentage ownership in the Supply
Facilities component as set forth in the exhibits in this Agreement. At the time of
execution of this Agreement, the existing assets shall be valued as shown on
Exhibit 1 and the contributing partner shall receive a credit for the asset value. If
the current appraisals of the assets are not available at the time of execution of
this Agreement, the Councils shall approve amendments to the exhibits to reflect
updated valuation information when received and Tigard shall pay the difference
to Lake Oswego as provided above. If the Initial Expansion is not constructed,
Lake Oswego shall refitted the amount of Tigard's payment to Lake Oswego plus
interest at the LGIP rate within 30 days of the decision to abandon the Project and
Tigard shall have no further ownership or equitable interest in the Lake Oswego
Supply Facilities and Property. Tigard will execute any document required by
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Lake Oswego to convey any interest Tigard may have in Lake Oswego Supply
Facilities and Property.
Tigard's purchase of its percentage share of the Supply Facility assets shall be by
capital contribution, mutually approved in kind contributions or payment of
design, permitting and construction costs for the system expansion so that upon
completion of the Initial Expansion, Tigard's contribution shall equal its
percentage ownership as shown in Exhibit 7. Lake Oswego's percentage as
shown in Exhibit 7 is based on its contributed assets, financial contribution to the
Initial Expansion, mutually approved in kind contributions and other mutually
agreed factors.
4.2 Anticipated Ownership
At the completion of the Initial Expansion, the Parties' percentage ownership
shall be allocated as set forth on Exhibit7, attached hereto and incorporated by
reference.
4.3 Allocation of Capacity
At the completion of the Initial Expansion, Tigard's allocation of Capacity shall
be 14 million gallons of water per day, and Lake Oswego's allocation of Capacity
shall be 18 million gallons per day.
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ARTICLE V
PROPERTY; CREATION OF TENANCY IN COMMON
5.1 Creation of Common Ownership
Title to or easement rights to all properties over; under or upon which Supply
Facilities are or shall be located (Property) shall remain in the name of Lake
Oswego until the completion of the Initial Expansion. Tigard shall have an
equitable interest as if it were a vendee under a land sale contract. Within 90 days
following completion of the Initial Expansion, Lake Oswego will, by Warranty
Deed, convey to Tigard,an undivided proportionate interest as tenant in common
in the Property as set forth on Exhibit 7, attached hereto and incorporated by
reference. The Parties agree the Property owned by Lake Oswego as of the date
of this Agreement shall be valued in 2008 dollars. Property acquired after the
date of this Agreement shall be acquired proportional to the Parties' respective
allocations of Capacity; according to the purchase price paid. Closing costs for
the Lake Oswego transfer to Tigard shall be shared equally.
5.2 Ownership Interest/Use
5.2.1 Title to the Property held in the name of Lake Oswego until transfer shall
be held in part for the use and benefit of Tigard to the extent of Tigard's
interest as set forth in this Agreement. Lake Oswego water rights shall not
be transferred under any of the real property transfers. Upon transfer, title
to the Property shall be held in the name of each of the Patties in their
respective undivided interest. The Parties agree that except as provided
herein, the Property is dedicated for water supply purposes. The Parties
intend that their relationship, with respect to the Property, be a tenancy in
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common: A Tenancy in Common Agreement shall be executed and
recorded at the time of transfer.
5.2.2 The Parties' responsibility for all maintenance, insurance and other land
costs, shall be:
5.2.2.1 Until completion of the Initial Expansion and transfer of an undivided
interest to Tigard, the existing Supply Facilities shall be used by Lake
Oswego at its sole risk and cost to accommodate water supply uses.
5.2.2:2 Following transfer, Lake Oswego and Tigard shall be responsible for all
costs related to the Property in proportion to their respective interests as
set forth on Exhibit 7. Such costs shall be included in the monthly
invoices under Section 7.1.4.
5.3 Covenant
The Parties declare that the Property is and shall be held, conveyed, hypothecated,
encumbered, leased, rented, occupied and improved subject to the limitations,
restrictions, covenants and conditions set forth in this Agreement, all of which are
declared to be in furtherance of a plan established for the purpose of constructing
and operating the Supply Facilities. All such limitations, restrictions, covenants
and conditions are intended to run with the Property, and to inure to the benefit of
sand be binding upon all parties having or acquiring any right, title, interest or
estate therein. Other incidental uses shall be limited or restricted to the extent
they conflict with water supply purposes.
54 Partition
Following transfer and so long as this Agreement is in effect, no Party shall seek
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or obtain through any legal proceedings a judicial partition'of the Property or sale
of"the Property in lieu of partition, without the prior written consent of the other
Party.
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ARTICLE VI
DESIGN AND CONSTRUCTION OF SUPPLY FACILITIES
6:1` Preliminary Planning; and Desi
Tigard and Lake Oswego, by this Agreement,.commit to design and construct the
Initial Expansion, which shall include initially Water. Treatment Plait, Clackamas
River Intake Pump Station and Transmission Facilities with a design capacity of
32 mgd as generally described in the plan prepared by Carollo Engineers
("Carollo") dated July, 2007, and to achieve completion by July 1, 2016,
immediately commence:
6.1:1 Participation in necessary joint planning sessions for the Supply Facilities;
6.1.2 Contribution of their proportionate share of costs of preliminary design,
preliminary engineering, permitting, and other fees as necessary and as set
forth on Exhibit 7, attached hereto and incorporated by reference. The
Supply Facilities shall accommodate subsequent expansion up to 38 mgd
(Long Term Expansion). The general configuration map of the Property
attached to the Agreement as Exhibit 3 shall allow the Parties to expand
the treatment plant in the future. Lake Oswego shall retain a project team
for permitting, design, and construction management of the Initial
Expansion of the Supply Facilities.
61" Permit Applications
Lake Oswego, as the Managing Agency, shall be the lead agency in negotiating
required permits for construction of the Supply Facilities.
6:2:_11 Lake Oswego shall be responsible to obtain all other permits such as:
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6.2.1.1 Section 404 Permits under the Clean Water Act through the Division of
State Lands and the Corps of Engineers;
6.2.1.2-Any permit necessary from the Oregon Division of State Lands for use of
submerged or submersible lands for intake and transmission, if that is in
addition to the 404 Permit;
6.2.1.3 Any permit with the Water Resources Department regarding permit
extension, amendment of a Water Management and Conservation Plan, or
application of water to beneficial use in the Service Areas identified in the
Carollo Report;
6.2.1.4 Any permit necessary from the Oregon Department of Fish & Wildlife, the
United States Department of Fish & Wildlife or the National Marine
Fisheries Service through consultation; and
6.2.1.5 Any other permit required for the project.
6.2.2 Lake Oswego shall be responsible for obtaining necessary land
development permits. The Parties agree that improvements imposed by
the land use permitting body shall be a Project cost. Additional amenities
not required by the land use permitting body shallbe paidfor at the sole
expense of the party requesting them. Lake Oswego, in its proprietary
capacity, further agrees to, in good faith, assist and support Tigard in its
efforts to secure.the issuance of all permits for pumping and transmission
facilities from locations within the Lake Oswego City limits and to enable.
Tigard to provide water from the Supply Facilities to Tigard users. The
Parties acknowledge, however, that this Agreement cannot bind Lake
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Oswego; with relation to acts or decisions occurring in its regulatory
authority, including, without limitation, .the exercise of its regulatory
authority to issue permits.
6.3Construction
6.3.1 Project Management. During construction, Lake Oswego will, as
Managing Agency, convene the Technical Committee at least bi-weekly to
review project schedules and performance, progress payment requests,
change orders and punch list items. Tigard may attend all contractor and
consultant meetings.
6.3.2 Progress Payinents. Progress payments, during design and construction,
shall be billed monthly by Lake Oswego according to the proportionate
allocation of system improvement costs for individual components of the
Supply Facilities as set forth on Exhibit 7. For a construction contract or
contract that materially includes construction within its scope that is
included in the Supply Facilities Capital Improvement Program and
approved budget, the Managing Agency may award such agreements after
giving prior notice to each Council of the Project Engineer's estimate.
Contracts not within the foregoing description or where the bid or
proposed price exceeds the Engineer's estimate by 10% may not proceed
unless each Council has approved. Within 30 days of invoice from Lake
Oswego, Tigard shall remit the amount due, unless disputed. Any
disputed amount shall be resolved in accordance with the Dispute
Resolution Procedures of Article 14 betow.. However, notwithstanding the.
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foregoing, during construction no dispute between the Parties shall cause
cessation or delay of work by the contractor. If the contractor threatens to'
suspend' or terminate work because of a dispute over nonpayment, the
Parties hereto agree to make such payments to Lake Oswego to resolve
contractor issues and shall expressly reserve all rights regarding the
ultimate allocation of costs or obligations paid to the contractor which
shall be resolved by dispute resolution.
6.3.3 Post Construction. Following construction, the Technical Committee
shall meet as needed to review and recommend to the governing bodies on
matters related to warranty or other contract performance issues.
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ARTICLE VII
OPERATION AND MANAGEMENT
7.1 Supply Facilities
7.1.1 Management. Lake Oswego shall have responsibility as Managing
Agency to manage, operate, repair and replace the Supply Facilities until
such time as the Parties agree otherwise. The Managing Agency may
perform work with its own forces and charge the other Party therefore or
by contract with another party. Additional work or charges outside the
approved budget shall require unanimous consent of the Parties.
7.1.2 Operation and Maintenance Costs. The costs of operation and
maintenance shall be allocated between the Parties according to water
delivered from the water treatment plant to each Party's connection point
to their distribution systems measured.in hundred cubic feet (ccf) imposed
on the Supply Facilities multiplied by the operations and maintenance
expense rate in $/ccf. The method for calculating the rate and water use
determination of payment shall be agreed to by the Councils based on the
budget and' anticipated water use considering the previous 12 months'
water use.
For the first year when Tigard draws water, the Parties will not have prior
usage data from Tigard's use of the Supply Facilities. Therefore, the
Parties agree that an estimated cost per cef shall be determined based upon
the budget and applied to all Tigard volumes with invoice on a monthly
basis. At the end of the first year, actual unit costs will be calculated and
reconciled as set forth in 7.1.4.
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7.1.3 Renewal, Repair and Replacement Costs. The Parties shall budget for
renewal, repair and replacement costs as provided in Section 3.4. The
Parties shall make those payments as required for renewals, repair and
replacement proportional to that Party's ownership interest in the Supply
Facility component.
7.1.4 Billing and Payment. Each Party shall receive an invoice monthly from
the Managing.Agency representing one-twelfth of the allocated operations
and maintenance budget amount for that Patty. The invoice.may also
include required payments for renewal, repair, and replacement under
Section 7.1.3 or the Managing Agency may send a separate invoice.
Payment is due to the Managing Agency within 30 days of receipt of the
invoice. On March 1St of each year, the Managing Agency will send an
invoice calculating actual water usage as compared to estimated
annualized expenditures in the budget and reconcile them. The respective
Parties will pay (or receive credit 'for overpayment toward the next
invoice) based upon this reconciliation. As soon as reasonably possible
after June 30th of each year, the Managing Agency will conduct a similar
reconciliation and the Parties will pay or receive credit for overpayment as
appropriate on the next invoice in the new fiscal year.
7.2 Property Management.
The 'Parties agree that the property over, under, or upon which the Supply
Facilities are constructed shall be operated and managed as follows:
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7.2.1 Duties, of the Managing Agency. The Managing. Agency shall have the
responsibility and authority to.perform the following functions and may
make decisions with respect to such matters as to the Property unless
otherwise provided in this Agreement,
7:2..1.1 Operation, Maintenance, Repair, and Replacement. To contract for
maintenance; repair and cleaning of the Property pursuant to an
approved budget, contract, or other approval of the Parties as may be
required by the terms of the Agreement.
7.2.1.2 Insurance. To obtain or renew a policy of property insurance insuring
the Property against loss or damage by fire and other hazards covered by
a standard policy of fire insurance with extended coverage endorsements
written for the full replacement value of the Property. The Parties shall
also obtain or renew a policy or policies of public liability and property
damage insurance with a single limit of not less than $2,000,000. The
policies shall name the Parties as co-insureds.
7.2.1.3 Assessments. 'To collect and deposit the assessments and other charges
due from the Parties into an account established for the Property; to mail
written notice to any Party who is more than 30 days delinquent in
payment of any assessments or charges; and to mail written notice to the
Parties for additional assessments whenever it appears that the funds on
hand shall be insufficient to cover future expenses.
7.2.1.4 Payment of Expenses. To pay when due the expenses of the Property,
and all other expenses or payments duly authorized by the Parties.
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7.2.1..5 Records. To maintain complete and accurate records of all receipts and
expenditures for the Parties.
7.2.1.6 Reimbursement of Expenses. Unless approved in writing by the
Oversight Committee, no Party shall be compensated for services related
to nonbudgeted matters where contingency or other funds in the
approved budget are available. Otherwise, approval by each Council is
required. However, a Party shall be reimbursed for out-of-pocket
expenses.
7.2.1.7 Payment of Costs. Amounts owed by each Party for expenses related to
the Property shall be invoiced as provided in Section 7.1.4.
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ARTICLE VIII
SUPPLY FACILITIES
8.1 Use-of Supply Facilities
The Parties shall each use the Supply Facilities in a mariner consistent with
prudent water utility practices and to minimize interference with each other's use
of its respective share of Capacity to meet its demands. Prudent practices shall
include a mutual commitment to conservation and use of water without waste
implemented in each Party's Water Management and Conservation Plan. When
the Initial Expansion is completed and the Parties are using the Supply Facilities,
the Parties anticipate that instances of overuse of Capacity by a Party will be rare
and the Parties shall resolve such instances on a case-by-case basis. If a new
member is added or if a third party is supplied by the Supply Facilities so that
additional demands or capacity are placed thereon, then, unless caused by system
operation conditions not caused by the overusing party, any use of 10% or greater
by either Party (or third party user) than its share of Capacity for two consecutive
years or three out of five years shall be overuse. The overusing Party (or third
party user) shall .compensate the other party at a lease rate as may be fairly and
equitably agreed upon by the parties. In lieu of the above lease rate or in
'combination with it, the Parties may agree to construct the Long Term Expansion
of the Project or reduce demand so that overuse shall cease to occur.
8.2 Mutual.Forecast Submittal
In order to make timely, reasonable and prudent judgments concerning meeting
respective demands for capacity, the need to lease capacity, the ability to lease
capacity, and the terrns and conditions of any-such Lease, the Parties shall each
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submit to the other commencing February 1, 2016 and February 1 of each fifth
year thereafter, a 10-year planning forecast. The planning forecast shall set forth
the respective projected water demands, capacity to serve that demand, and
identify any deficiencies in capacity by year for the 10-year period. Demand shall
include any sale of water from capacity agreed to or reasonably anticipated within
the ten-year time frame. The capacity requirement for the Supply Facilities shall
consist of the average of five consecutive days containing the highest average
peak day demands (mgd) imposed by the Parties, for the summer period of May
15 to October 31. The Parties shall agree on an appropriate course of action as
they deem reasonably available and prudent, under the forecasted circumstances,
including, but not limited to, leasing capacity from one to the other, both within
and without the timeframe of such planning forecasts.
8.3 Surface Water Rights
Surface Water Rights shall remain in the name of Lake Oswego. By execution of
this Agreement, Lake Oswego agrees to hold these permits or certificates for the
benefit of Tigard and Lake Oswego to the extent of the rights of each under this
Agreement. Development and beneficial use by the Parties of water authorized in
the Surface Water Rights of Lake Oswego, but undeveloped as of the date of this
Agreement, shall accrue to the benefit of all Parties, to the extent of their rights
under this Agreement, without regard to ownership.
8.4 Water Treatment Plant Facilities
Except during a curtailment event for any reason, each Party shall have or obtain
Capacity in the Water Treatment Plant Facilities, to serve the Demand of the Party
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during the Summer Period and the Winter Period up to the respective allocations.
The.Capacity requirement for Water Treatment Plant Facilities shall consist of the
-average of the five (5) consecutive days containing the peak day demand (mgd)
imposed on the Supply Facilities by the Party for each Summer Period and Winter
Period. Capacity in the Water Treatment, Plant Facilities may be obtained by
purchase of excess existing Capacity, capacity expansion of the Water Treatment
Plant Facilities and/or leasing of Capacity from another Party.
8.5 Transmission System
The Parties agree to maximize the use of the existing Transmission System for
the benefit of the Parties before construction of new transmission facilities.
The Parties have agreed on connection points for delivery of water from the
Transmission System as set forth in Exhibit 3, which exhibit may be updated and
revised by resolution of each Party's Council. To the extent that a Party needs
additional Capacity.in the Transmission System, the Parties agree to sell or lease
available Capacity in the Transmission System prior to construction of new
transmission facilities. When expansion of the Transmission System is required,
the Parties shall follow the procedures as set forth in Article 9.
8.6 Finished Water Storaize
The Parties agree to construct shared storage facilities where efficient and
economic for both Parties. Notwithstanding this provision, each Party shall
construct and operate separate adequate finished water storage within its
distribution system to meet their respective operating and emergency conditions
as set forth in the Operations Manual as required under Article 1.2. To the extent
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that a Party cannot, do so, it may make a request to the other Party ,for
supplemental storage. If the Party providing supplemental storage agrees to
provide such storage, then the Party receiving such supplemental storage shall
`compensate the other Party as mutually agreed.
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ARTICLE IX
EXPANSION RIGHTS AND REQUIREMENTS
9.1 Expansion Requirements
The Parties agree that use of the Supply Facilities by the Parties should be
accomplished first by utilizing the Capacity in the Supply Facilities to serve the
needs of the Parties. The Supply Facilities should be expanded only after the
Parties are projected to be using all Capacity, within a reasonable planning
horizon or at such other times as the Parties deem appropriate. In determining the
appropriate time to begin expansion of the Supply Facilities, the Parties shall
consider the time required to provide for environmental reviews, design, permits
and construction. Therefore, the Parties agree to lease Capacity to another Party
as provided for in Article 10 to reasonably and prudently defer capital
Improvements and costs thereof.
9.2 New'Surface Water Rights and Expansion
The Parties agree that finding opportunities to acquire new water rights (surface
or ground) may be of great significance to their long range needs. This may
include the purchase of existing Surface or Ground Water Rights or application
for permits for surface, ground or stored water rights. The Parties agree that new
sources shall be acquired jointly in proportion to the Party's ownership interest in
the Supply Facilities. If a Party elects not to participate in the acquisition of
additional water, the other Party may proceed individually.
9.3 Expansion Rights in the Supply Facilities
The Parties shall use reasonable and prudent utility standards in determining as to
when and to what size the Supply Facilities should be expanded. Such
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determination shall take into consideration the Demand requested by the Parties,
the Capacity of Water Supply Facilities, prudent utility planning standards and
the available Surface Water Rights, and Transmission System owned or capable
of being ]eased or expanded by the Parties. Based on the Planning Forecast of
Section 8.2, a Party shall provide written notice to the other Party of its desire to
expand the Supply Facilities. The Parties shall place the proposed project on the
Capital Improvement.Program. The intent of the.Parties is to place the proposed
project on the CIP for a period of five years. In the third year of the CIP, the
Parties shall each decide whether to accept 'or reject participation in the
expansion. Notice by a Party to participate in an expansion shall be in writing and
specify the percent participation in the expansion. Each Party shall have the right
to participate in the expansion in at least the same percentage level as the Party's
percent ownership in the Supply Facilities at the time of the proposed expansion.
A party may proceed individually if the other elects not to participate so long as
the non-participating,Party is held harmless from financial obligation.
9.3.1 Long Term Expansion of Water Treatment Plant. Notwithstanding Section
9.3 on expansion of the Supply Facilities, the Parties recognize that Lake
Oswego has or will contribute to design and construction of Supply Facility
components to achieve capacity of up to 38 mgd. If either Party proposes
such Long Term Expansion of the Treatment Plant, Lake Oswego will
deterinine if it wishes to participate and the amount of Capacity it desires,
which may be the entire expansion amount. Lake Oswego will notify Tigard
of its decision, which shall be conclusive. Depending upon. Lake Oswego's
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decision, the Parties will then negotiate a 'Proj'ect Agreement for the Long
Term Expansion, which shall specify, among other things,
a. whether all or any portion of the expanded capacity is sold to
Tigard; or
b. whether Lake Oswego builds the expanded capacity with its funds
and leases the capacity to Tigard upon such terms and conditions as the
Parties agree;-or
C. whether Tigard builds the expanded capacity with its funds subject
to Lake Oswego's option to buy back all or part of the expanded capacity
upon three years' written notice at the depreciated replacement cost of the
expansion plus interest at the Municipal Bond Index fiom the date of
substantial completion; and
d. Such other mutually agreeable terms including adjustment of
ownership interests in other Supply Facility components to match
treatment plant capacity allocations of the Parties.
9.4 Other Assets
There may arise other improvements which do not directly in and of themselves,
provide for expansion of the Supply Facilities. In such circumstances, the Parties
shall mutually determine the appropriate financial participation by each of the
-Parties. They shall.consider the purpose for the construction of the asset and the
benefits to be received by each of the Parties from the asset in determining the
financial participation requirement of each. A party may proceed individually if
the other elects not to participate so long as the non-participating Party is held
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harmless from financial.obligation.
9,,5 Bonita Road Pump Station
Tigard's Bonita Road Pump Station is or will be capable of providing water from
r Tigard to Lake Oswego if necessary. The Parties acknowledge this is beneficial
to Lake Oswego .in those circumstances, but the frequency is difficult to predict.
If this Pump Station is used for the benefit of Lake Oswego as the Parties agree,
Lake Oswego shall pay Tigard's costs to supply water, including Tigard's costs to
purchase water from other entities, as if it were a short-term lease. Tigard will
invoice Lake Oswego on a monthly basis in such circumstances.
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ARTICLE X
LEASING
10.1 Leasing
As provided for in Article 8, the Parties shall lease to the other Capacity in the
Surface Water Rights and Supply Facilities to the extent available according to
the planning forecast.
1.Q.2 Purpose
The purpose of this Article is to acknowledge the rights of the Parties to lease
from each other the unused portion of their respective 14 mgd and 18 mgd
allocations of the total 32 mgd Capacity of Initial Expansion to be constructed, to
establish the conditions under which such leasing may occur and to acknowledge
the right to lease future capacity from each other based on future expansion of the
Supply Facilities depending upon conditions and circumstances then and there
existing and when future shares of capacities are known. This section is not
intended to limit the Parties from otherwise agreeing on leasing of supply capacity
to each other. If the Supply Facilities are expanded to 38 mgd, these lease
provisions shall apply to"the second increment of capital improvement.
1.0.3 Right to Lease
Lake Oswego shall have the right to lease to Tigard and Tigard to lease from Lake
Oswego such unused capacity of its 18 mgd as may be determined by Lake
Oswego to be reasonably available and prudent to be leased to Tigard pursuant to .
section 8.2 or as they may otherwise agree. Tigard shall have the right to lease to
Lake Oswego and Lake Oswego to lease from Tigard the unused capacity portion
of its 14 mgd capacity as may be determined by Tigard to be reasonably available
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and,prudent to be leased to Lake Oswego pursuant to section 8.2 or as they may
otherwise-agree.
10.4 Term
The term of any lease for Supply Facilities shall be for a minimum of one (1) year
and a maximum of ten (10) years and upon such conditions for renewal as the
Parties determine. A.lease shall be a short-term measure that allows the Parties to
defer expansion or 'new construction of Supply Facility components and to
provide Parties with a near-term stable planning. horizon. The Parties do not
intend to have perpetual renewal terms.
10.5 Lease Payments
The lease payment for Supply Facilities shall be determined by utilizing the
Depreciated Replacement Cost Value of the asset amortized over the remaining
Book Depreciation Life of the asset at an interest Tate equal to the Municipal
Bond Index rate plus 200 Basis Points at the year of the lease payment or a
comparable index. The lease payment shall be fixed for lease terms of five (5)
years or less. For lease terms of greater than five (5) years, the lease payment
shall be recalculated every five (5) years in accordance with this Section 10.4.
10.6 Effective Date of Leases
The effective date for leases set forth in this Article 10 shall be on April 1,
following the adoption of this Agreement and every April 1, thereafter.
10.7 Curtailment of Leasing Capacity
The'Parties agree that a condition of any lease shall be that the lessee Party shall
be provided Capacity to the same extent that Capacity is available to serve the
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lessor -Party's Demand. Curtailment of Capacity resulting from reduced
availability of water for all new water supplies developed after the effective date
of thi's Agreement shall be shared equally among the parties.
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ARTICLE XI
SALES TO OTHERS
Except for the Existing Wholesale Customers, existing mutual aid agreement, or
extension of service to .service areas identified in the Carollo Report, neither Party may
contract for the sale or use of the Supply Facilities to any other entity or person who is
not a Retail Customer of any Party without the approval of the other Party and
compliance with the terms of this Agreement. Any revenues derived from the sale of
water to another entity shall be paid to the Managing Agency. Net proceeds from such
sales shall be credited back to the Parties based on a method as mutually agreed. Net
proceeds ,shall be those proceeds remaining after expenses, renewals and replacements
{ and contingencies are paid.
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ARTICLE XII
OPERATIONS MANUAL
12.1 Operations Manual
Not ,later that! 180 days from the date of Substantial Completion of the Initial
Expansion, the Parties shall adopt an Operations Manual for the Supply Facilities,
which shall include, but not be limited to, agreed protocols and methodology to
provide for water quality, treatment standards and protocols, and for the equitable,
effective and efficient operation of the Supply Facilities in accordance with
generally accepted utility practices regarding the operation, management, capital
improvements, and expansion of all aspects of. the Supply Facilities. The
Operations Manual may be updated as required. The Operations Manual shall
also provide for an Operations Committee ("Operations Committee"), which shall
consist,of one designee of each of the Parties, as set forth in Section 12.2 below.
Not more than 30 days after substantial completion of the Initial Expansion each
Party shall appoint one person to develop the Operations Manual.
12.2 Operations Committee
Each Party shall appoint at least one person technically knowledgeable in utility
system operations or engineering to the Operations Committee. A Party may
allow other attendees, but in no event shall a Party have more than one vote in
making a recommendation to the Oversight Committee created under Section 3.3.
The Operations Committee shall report to the Oversight Committee not less often
than, quarterly. The Parties may choose to designate the Technical Committee as
the.Operations Committee.
1.2.3 Curtailment
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The Operations Manual shall reference each Party's Water. Management and
Conservation Plan: The Parties agree that if an emergency or water shortage
requires restriction on the deliverable supply of new Capacity developed after the
effective date of this Agreement , the reduction in available water shall be shared
equally among the Parties.
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ARTICLE XIII
'WITH°DRAWAL, TERMINATION OF MEMBERSHIP, SALE OF
ASSETS AND DISSOLUTION
13.7 Complete or Partial Termination of Interest
Any Party may elect to terminate all or part of its participation in this Agreement
and withdraw from the Supply Facilities as designated (full or partial) by giving
written notice of its desire to terminate to the remaining Party(ies), and stating a
date for termination which shall be not less than two (2) years from the date of
notice. The remaining Party receiving notice of termination shall have the first
option to purchase the terminating interest. If Tigard terminates in whole or in
part, the purchase price shall not include any value for water as those water rights
remain with Lake Oswego. If Tigard completely terminates from this Agreement,
it shall not receive water unless Lake Oswego agrees in writing. If Tigard
partially terminates, its 14 mgd capacity shall be adjusted,to reflect its retained,
proportionate interest. The Parties shall meet for the purpose of establishing the
price for the terminated interest. The meeting shall be held within 90 days
following receipt of notice of termination.
Notice to the selling Party of the other Party's intent to buy all or a portion of the
terminating interest shall be given no later than three (3) months after receipt of
the written notice of the Party's desire to terminate. If the remaining Party
purchases less than the full portion of the terminating interest, the Parties also
agree that any unpurchased interest may be sold to another local government party
so long as that other local government party becomes subject to all terms and
conditions of this Agreement. The terminating Party shall use best efforts to find
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another local government partner to buy the remaining unpurchased interest or to
assign or.lease capacity so as not to unduly burden the remaining party. Consent
by the remaining Party for another local government party to purchase, take
assignment or lease the Supply Facilities to this Agreement shall not be
unreasonably withheld. Any assignment or lease of an unpurchased interest to
another local government shall not relieve the Party from its obligations under this
Agreement. Negotiations of the terms of sale, assignment or lease to another
local government Party shall include the non-terminating Party as to those terms
which directly impact its operational and financial interest.
13.2 Sale of Assets
A Party may offer to sell to the other Party its ownership interest in an identified
portion of the Supply Facilities (e.g., a percent of the Transmission System).
Notice of the proposed sale shall be given to the other Party by the Party wishing
to sell. Such notice shall specify the material terms.and conditions of the sale.
The terms and conditions of Section 13.1 shall apply. The Party may also assign
or lease the unpurchased interest to another local government Party. Consent to .
such assignment or lease shall not be unreasonably withheld or relieve the Party
from its obligations under this Agreement.
13.3 Valuation of Interest
The Parties shall meet to agree upon a price within 90 days of the receipt of notice.
under Sections 13.1 or 13.2. The price shall be fixed by determining the
terminating/selling Party's interest in the subject assets using the Depreciated
Replacement Cost Value. Nothing herein shall prevent the Parties from agreeing
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upon a price through negotiation and unanimous consent. Sales, assignments or
Teases to third.parties are not subject to the valuation formula of this Section.
155 Payment
The payment price for the subject interest shall be paid in full on the date of
termination set forth'in the notice of intent to terminate/sell or award of arbitration
or court. Interest shall commence to accrue from the date of agreement arbitration
or judgment at the Local Government Investment Pool rate. If a Party fails to pay
the purchase price in full at the date of termination, then the terminating/selling
Party shall have the right to sell or transfer or assign the subject interest to any
other government entity as provided in Section 13.1 or 13.2.
13.5 Default and For Cause Termination
The failure of a Party to perform any duty imposed upon it by this Agreement
shall constitute a default. The non-defaulting Party shall have the right to give the
defaulting Party a written notice of default, which shall describe the default in
reasonable detail and state the date by which the default must be cured, which
date shall be at least 60 days after receipt of the notice of default, except in the
casel of a failure to advance funds, in which case the date shall be 30 days after
receipt of the notice of default.
13.5.1 Opportunity to Cure. if within the applicable period described in Section 13.5
the defaulting Party cures the default, or if the failure is one (other than the
failure to make payments) that cannot in good faith be corrected within such
.period and the defaulting Party begins to correct the default within the
applicableperiod and continues corrective efforts with reasonable diligence
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until a cure is effected, the notice of default shall be inoperative, and the
defaulting Party shall lose no rights under this Agreement. If, within the
specified period, the defaulting Party does not cure the default or begin to cure
the default as provided above, the non-defaulting Parties at the expiration of
the applicable period shall have the rights specified in Section 1.3.5.2.
13.5:2 Rights Upon Default. If the defaulting Party has not cured the default as
provided in Section 13.5.1, it shall have no voting rights under this
Agreement until the default has been cured. In addition, the non-
defaulting Party may pursue any other remedy available at law or in equity
against the defaulting Party, including but not limited to, an action for
damages;costs of obtaining substitute water or other performance.
F16 Dissolution of the Agreement
This Agreement may be dissolved by mutual agreement. Upon dissolution, the
.Parties shall agree on a Dissolution Plan and schedule to wind down and dissolve
the business affairs. Unless modified by the Dissolution Plan, the dissolution
'shall be effective only after all debts and obligations are paid or provision for
payment is made. Each Party shall assume a share of the debts and obligations in
proportion to their ownership in the Supply Facilities unless the instrument or
transaction that created the debt or obligation specified otherwise. The Parties
shall execute those documents necessary to vest proportionate ownership of the
Supply Facilities and Property in each Party and execute a post dissolution water
supply agreement and a management agreement for the Supply Facilities and
Property. Nothing herein shall prevent a Party from accepting cash or other
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consideration in_lieu of continued proportionate ownership in the Supply Facilities
and Property. The cost of dissolution shall be treated as an operation and
1
maintenance expense.
13':7 Post Initial Expansion Water for Tigard.
After substantial completion of the Initial Expansion, if Lake Oswego elects to
terminate this Agreement, or if the Parties mutually agree to dissolve this
Agreement, Lake Oswego agrees to provide Tigard with treated water sufficient
to' supply 14 million gallons per day so that Tigard is always assured of having
sufficient source to supply its capacity share and usage of the Supply Facilities. If
Tigard is allocated additional capacity in the*Supply Facilities by the Long Term
Expansion, the provisions of this section shall apply to that increment of water.
Negotiation of a mutually agreeable water supply agreement shall be a condition
precedent to any termination of this Agreement by Lake Oswego or Dissolution
Plan.
13.8 Unreasonable Withholdiniz of Consent.
Unreasonable withholding of consent shall be those reasons other than financial
considerations, availability of alternate water sources, water usage characteristics,
water service territory, water demand forecasts, technical or operational expertise,
history as a recognizedlocal government water service provider, ownership,
conttol or operation by or for a private entity or person,,and other relevant matters
considered in reasonable and prudent utility management.
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ARTICLE XIV
DISPUTE RESOLUTION
14..1 Dispute Resolution
The Parties hereby.agree that resolution of any disputes shall follow the steps as
set forth in Section 14.2. However, nothing shall prevent the disputing parties
;(Disputing Parties) from waiving any of the steps by mutual consent.
14:2' Dispute Resolution Steps
Step One: (Negotiation)
The City Manager or other persons designated by each of the Disputing Parties
shall negotiate on behalf of the Party they represent and attempt to resolve the
issue. If the dispute is resolved at this step, there shall be a written determination
of such resolution, signed by each City Manager or other designated persons and
ratified by the governing bodies, which shall be binding upon the Disputing
Parties.
Step Two: (Mediation)
If the dispute cannot be resolved within thirty (30) days at Step One, the
Disputing Parties shall submit the matter to non-binding mediation. The
Disputing Parties shall attempt to agree on a mediator. If they cannot agree, the
Disputing Parties shall request a list of five (5) mediators from an entity or firm
providing mediation services. . The Disputing Parties shall mutually agree on a
mediator from the list provided. Any common costs of mediation shall be borne
equally by the Disputing Parties. If the issue is resolved at this step, a written
determination of such resolution shall be signed by each City Manager or other
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designated persons, and ratified by the governing bodies, which shall be binding
on the'Disputing Parties.
Step Three.(Arbitration)
After exhaustion of the preceding processes, all disputes or claims arising out of
'this Agreement shall be submitted to binding arbitration under the rules and
processes of U. S. Arbitration and Mediation of Portland, Oregon or similar
mutually agreed process. Each Disputing Party shall select an arbitrator and the
two shall appoint a third arbitrator. All costs of arbitration shall be borne equally.
The Oregon Rules of Civil Procedure relating to discovery and the Oregon
Evidence code shall apply. The decision of the panel shall be binding. Nothing
herein shall prevent the Disputing Parties from selecting a single arbitrator by
agreement.
14.3 Legal Fees
Each'Disputing Party shall bear its own legal and expert witness fees at all stages
of proceedings, including any appeals.
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ARTICLE XV
COMPLETION OF INITIAL EXPANSION OF THE SUPPLY
FACILITIES
15.1 Modification to Agreement
Within three years after completion of the Initial Expansion, the Oversight
Committee shall undertake a review of all agreements and operations and to
consider the need for any modification to the terms and conditions of this
Agreement. At the recommendation of the Oversight Committee, the Councils
for the Parties may consider:
15.1.1 Modification to the existing Agreement(s);
15.1.2 Replacement of existing Agreement(s) with a new Agreement;
l 5.1.3 Creation of a Supply Agency under ORS Chapter 190.
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ARTICLE XVI
NOTICES
.Any notice herein. re=quired or permitted to be given shall be given in writing and
effective When'actually received by hand delivery or by the United States mail, first class
postage.prepaid, addressed to the Parties as set forth below. The Parties shall notify the
Managing Agency of any change of address or title for receipt of notices under this
Agreement.
LAKE OSWEGO: The City of Lake Oswego
Attention: City Manager
380 A Avenue
P.O. Box 369
Lake Oswego, OR 97034
TIGARD City of Tigard
Attention: City Manager
13125 SW Hall Blvd.
Tigard, OR 97223
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i
ARTICLE XVII
GENERAL PROVISIONS
I1;1 Instruments of Further Assurance
From,time to time, at the request of a Party, each Party shall, without further
,consideration, execute and deliver such further instruments, and shall take such
further action as may be reasonably required to fully effectuate the purposes of
this Agreement.
17.2 Entire Agreement
This Agreement embodies the entire agreement and understanding between the
Parties hereto with respect to_the Supply Facilities and supersedes all previous
agreements and understandings relating to the Supply Facilities except as
provided herein. The Parties agree that the existing Agreement for Water Service
effective July 1, 1983, shall terminate as of :the date Initial Expansion is
substantially complete.
17:3 Assignment, Sale or Transfer
No Party shall have the right to sell, transfer or assign its interest in this
Agreement (or any portion thereof) or asset(s), without the prior written consent
of the other in accordance with requirements of this Agreement. No Party may
sell, transfer, assign its interest or sell water to an existing wholesale customer in
the: other Party's service area as set forth on.Exhibit 2 without the prior written
consent of the other Party in accordance with the requirements of this Agreement.
:1.7.4 Severability
In case any one or more of the provisions contained in this Agreement. shall be
invalid, illegal, or unenforceable in any respect, the validity, legality and
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enforceability of the remaining provisions contained herein shall not in any way
be affected pr'impaired thereby.
17:5 Counterparts
This Agreement may be executed in any number of counterparts and by the
Parties or separate counterparts, any one of which shall constitute an Agreement
between and among the Parties.
Headings
-The,Article, section and subsection headings contained in this Agreement are for
reference purposes only and shall not in any way affect the meaning or
interpretation of this Agreement.
17.7 Force Majeure
No Party shall be considered in default in the performance of its obligations under
this Agreement to the extent that the performance of any such obligation is
prevented or delayed by any cause, existing or in the future, which is beyond the
reasonable control .of the affected Party, including,, but not limited to, Acts of
God, earthquake, 'labor disputes, civil commotion, war events beyond the
reasonable control of the Parties, such as regulatory restrictions or requirements,
permit issuance, and the like. In the event a Party claims that performance of its
obligations was prevented of delayed by any such cause, that Party shall promptly
notify the other.Parties of that fact and of the circumstance preventing or delaying
performance. Such Party so claiming a cause of delayed performance shall
endeavor to the extent reasonable to remove the obstacles which preclude
performance.
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1.7.8 Consolidation, Mercer, Annexation
17:8.1 Change of organization is defined as the consolidation or merger of a
Party with another city under ORS 222.610 et seq.
17:8.2 Any new entity created by change of organization involving a Party to this
Agreement shall require prior consent of the other Party as to the
successor or surviving entity's entitlement to be an owner of the Supply
Facilities, based on the entity's legal, financial and technical ability to
assume the original Party's obligations under this Agreement. Such
consent shall not be unreasonably withheld. If the surviving or successor
entity is approved, the original Party/Parties' obligations and rights
hereunder shall be binding upon and inure to the benefit of the surviving
or successor entity, and that entity shall be subject to all obligations of this
Agreement.
17.8.3 Annexation of or provision of service to an area beyond that area
identified for each party in the Carollo Report, and any transfer of a
Party's territory to a Water Authority formed by one or more cities, water
districts, or both, shall require the prior consent of the other Party, which
shall not be unreasonably withheld considering capacity and demands and
other system factors. Annexations or service to identified areas shall not
require consent.
17.9 Survival of Covenants
Any provision of this Agreement which., by its terms has or may have application
after the expiration or earlier termination of this Agreement, including all
Page 57—Lake Oswego-Tigard Water Supply Agreement
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covenants, agreements, and warranties, shall be deemed to the extent of such
application to survive the expiration or termination of this agreement.
17.10 Indemnity
To the extent permitted by the Constitution and laws of Oregon, each Party agrees
to defend, indemnify and hold harmless the other from and against any and all
actual or alleged claims, damages, expenses, costs, fees, including but not limited
to attorney, account, paralegal, expert and escrow fees, fines, environmental costs
and/or penalty (collectively "costs"), which may be imposed upon, claimed
against, or incurred or suffered by the Party, unless and to the extent it was
resulting from an individual Party's negligence or willful misconduct.
17.11 No Third Party Beneficiaries
The Parties hereto are the only Parties to this Agreement and the only persons or
entities entitled to enforce its terms.
IN WITNESS WHEREOF the Parties have dated and signed this Agreement.
CITY OF LAKE OSWEGO CITY OF TIGARD
r
4May'0/r Mayor
ku usl U .2ZIM Aiaust
Dated i Dated
aw'�L Attest Cq#lpw r"U 14
Citf Recorder City Recorder
U 9- 08
Dated Dated
t
City Attorney City ttorney
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1 laterim supply to:eke 9awgo Ino,al—ca-ed)
2 paw�+ater Intake [not allceatad)
3 paw;xeter 4ranssisaioa
4 N.acer Trencnent Plant:fend
5 Hater rreaceeat Plant:S"wtsrn t E> ipser-t (not e11—tedl
6 Finished Trensaisaimt Nein (roc allocac ed)
7 aalupa pecervoir: :And(lesersair property)
8 ealuaa R:rvoir: StruCtaree i Ppuipeerd loot allocated)
9 Bonita Pep S:at3en Ino,.Mooted)
10 con,uce,systwIsottware
i1 General Plant
Exhibit 1
Existirg Real Property,Supply Facility Components and Valuation
Currant Yaar 200e Aswmed Escalation 5,6
Ma 2008 ENR CCI 8140 Prc'clad Jul 2008 ENR CGI 8,206
Acquisition Acquisition Original Juty Today Acquisillon Useful Us Oepradation
Allocation Asaet0esc tion Data Amount ENRCCI 200BCCI Amount In ars Amount Value Today
Water Treatment Plant L and 1,155 8,208
4 Fknl S!a lix3N195p $ 81.797 S 595,491 -arid 5 - S 595.491
Sub Total £ 83,797 5 595,491 5 - 5 595,491
Ra1v Water Transmission 1,269 6.2DB
7 Raw•vlear Tra:smasrr, &30!1960 $ 590.137 5 3,816,979 100 S 1,488,622 5 2328.357
3 Pirk'me Fasame,ts 600/1969 S 22.000 S 142,295 100 S 55,495 5 86.83
Sub Total 5 611137 S 3,959.274 S 1,644,117 S 2,415,167
Distribulirm Steens
2 Rasarvcir Propenv 6.2911980 S 8,416 3,237 6208 5 21.340 Land S - 21.340
W..ga Resevov 30011983 $
1281,427 4086 6208 S 2,586.753 100 5 64E.688 S 1,9.70.065
Sub Total $ 1,259,843 S 2,608,093 S 646,688 $ 1,961,405
CIL Svs1em550Nware
10 SCAOA Sysem U grsde 6MI991 S 180,722 4,835 E.208 3 30f,.791 20 5 260.773 5 4E.019
10 Scads Iolh—Upgrade 6131Y1999 S 33.530 6,059 E.206 S 45.381 20 S 20.421 S 24,959
Sub Total $ 214,222 S 352.172 5 281,194 5 70,978
General Pi-I
11 Other &B/19B2 5 17,030 3,825 E,208 S 36.479 20 5 36.471) S
11 Vah,Ues &811956 S 24,030 4295 8,208 S 45,864 20 S 45,964 5 -
11 veRtks 6.7947999 S 20,530 6,059 8,208 $ 27,770 20 5 12,497 S 15,274
Sub Tote1 5 81.500 5 110,114 S 94,940 S 154274
Land Addlbol5 2006 RMV nand Onlyj
7 LValup Res.: 1976 S 719,841 Land s - $ 328,841
7 =800 Carmen Cr 1992 5 237,345 Land S - S 237.346 -
Vacenl Parcel 1992 S 253,486 Lard $ - S 253,485
4260 K-&mipe 1'!ay 196E S 880,014 Land S - 5 6801014
4 WTP Property 1979 S 132,652 Land S - S '32652
4 4245 MapeY V 1989 $ 258,916 Land 5 - 5 258,916
4 43D5 Mapimo Cr 1995 S 258.P16 Land S - 5 258.916
443'5 Maplelcr Cr 1989 S 258,916 Land 5 - S 258,916
d So"r d P1a1I S4e 1989 5 47,430 Lard 5 - S 47,433
Clarkamas River Intake 8 Pump Stali0n
Stkart EW1969 5 121.960 1.269 8.209 5 :88.9131 63 S 512,825 5 276,136
Rimm d e7u4m,"A 6W1S69 5 50.825 1.289 8.209 S 326.734 4D S 320.515 $ 8,216
Ppra and`:eMes 6137x1969 S 20,330 1.269 8,208 S 131.494 60 S 55.47• $ 46.023
Elacinca!,I&C.HVAC8130x1969 5 78155 1,269 8,208 S 66.747 40 S 64,103 5 1,644
Senamlc lJporades 1980 S 131,000 6.538 8.208 S 164,455 60 5 76.747 5 07,71•
Pump; 1980 5 40,000 3.237 8.208 S 101.425 40 S 70.998 1 30,428
Pumps No.e 2002 S 153633 6.538 8.204 1 193,123 40 S 26.969 S 164,154
Inak2 Fis'1-1-1 2002 S 1,352.600 6.538 8,208 1 1,6ill 20 1 539,418 1 1.188,642
P"aad"'.k— 1980 S 10.000 3.237 B.20B S 25,356 60 1 11,833 1 13.523
Elect i and HVAC 1980 S 21.GC0 3.237 8,208 S 53,249 40 1 37,274 £ 15,974
make L-J
Waley Tragi Jnenl Pia,;
Site Wcrk 63041969 5 155.915 1.23 8206 S 1,38,45/ 69 5 655.493 S 352,958
Concrete and BJI6ngs 6/00/1969 5 479.739 1269 8.208 S 3.102,930 60 S 2.016,904 S 1,086,025
Pump,. 613011969 S 4.197 1169 5.208 S 27,146 40 S 2BA67 S 679
MCCwuc I rg.pmarn 6`5D"9695 125.931 1.269 8,208 S 814,516 40 S 794.153 S 2D,363
Piping and V.1— U, 969 S 191,995 1.259 8,208 5 1,241.168 60 S 606.759 S 434,409
Elactr:cal,160.HVAC EI30/1969 S 791695 1.294 8208 S 1,241,168 ;0 S 1210,139 5 31,029
F�ter Media.and Uroerdrans 60/119697269 4208 S - 40 S - S -
Q1any,alAddnbn 600/1969 7289 8208 S - 40 S - S -
C7earWeB 6:'"1959 1.23 8.208 S 60 S 5 -
Salicit O le-kg Fadfi.es FJ30.^.9691.269 5,208 S - EO S - S
Mesceipneous 66/30/1969 5 11,993 1,269 8208 S 77,570 20 5 77,670 S -
ErgneeMp 600!1989 1,289 8208 $ - EO S - S -
Expansimn !994 S 80.221 3,237 8,208 S 203,411 EO 5 94.925 S 109.486
Site won, 199E S 510.000 5.920 8,206 S 707,094 ED 5 117.849 5 E89245
Eapanslan 1980 S 333224 3,237 9,208 S 6",933 ED S 594.3D2 5 450.631
Seismic/AOAJUG 2000 S 499.416 6.221 IL206 S 657,706 60 5 97,694 S 57DR12
E,Panlion '98C $ 86,39 1
3,237 &208 S 219,056 60 S 102.226 S 116.830
Pumps and EWipmani 1999 $ 507.925 6,859 8,208 S 688,061 40 5 154,814 5 533.246
Fspaseicn 1980 5 67,879 3,237 &208 S 172,116 60 S 60.321 5 91.796
L4charicsl 2001 S 641,126 6,343 8,208 5 829,616 40 S 145,183 S 684,433
Exp—sion 1960 S 357.93 3,237 8,206 S 907,517 60 S 423,608 5 484,009
Erpeulor Ige: S 178,954 3.237 8,208 5 453,76160 S 211,766 S 242.00E
SJ
EJriral 1999 S 66,247 6,39 8,206 S 69,142 40 S 20.192 5 69,560
Electrical&Inst oration 2001 S 668.564 6,343 8.208 5 735,721 40 S 128,751 S eC8,970
5tpeldor 1980 S 03,923 3.237 8,208 5 212,796 60 5 99.306 S 113,492
2.,.&St,ucl.at Won 2001 S 416,888 6.343 8.208 5 539,450 40 5 94.404 S 44564E
Sodium Hyp-113me System 19W $ 262,793 5.920 8,208 5 392.081 40 5 98.020 S 294,061
Lime Sc-9e•Feed Systam 199E S1.03,168 5,920 8,208 5 1,385,677 40 5 246,669 S 1.040,00E
CO2 Shrage/Fee l System 1998 S 238,357 5,920 8,208 5 330.472 40 5 BZ618 S 247,564
.4,,m Solr'eiFaed System1Si m 5 522.63 5.920 8208 5 724.840 40 5 181210 S 543.BX
Clear!Vet Bar'le 1991. S 107.293 5.622 8.208 5 156,642 40 S 46,993 5 IC9,BSC
Snitds Devralen.3 Lagoons 1999 S 1,084,518 6,059 8,208 5 1,469.144 40 5 330,557 S 1,130.587
".•7ansion 1980 5 45,664 3,237 8,208 S 115.787 60 5 54,34 5 61.7E
Engineering 1998 S 311,460 5,920 8,208 5 431,626 6D 5 71,971 5 359,85E
Engineering 1999 S 1'40,30 6.059 6,208 5 162,556 60 S 24,384 S 136,174
Engineering 230 S 128.653 6,221 8.2[18 S 167,103 60 5 22760 S 1144,6T4
Engk—n,g 231 S 732,30 6.343 8,208 5 429,3E 60 S 513,121 S 379,487
Fin[shed Weber Transmission
24-ind6 FlniShed Water Man 8/3071969 S 473,456 1,269 8,208 S 3,062,282 100 S 1,194,294 5 1,867.988
WTPTracs—s,on Msln 87.6011969 $ 42.618 1.269 6,208 5 275,651 100 5 107.604 S 168.147
Noah Stnre-t—Win,o.fines &3D:197C S 534,:42 1,381 8,208 S 3,174,619 100• 5 1206,35E 5 1,968264
tipper Or.-1•on Min.24 Inch Pipeene &Wll985 S 575,398 4,195 8,208 5 1,125,810 100 S 258,93E S 866.873
Ca(ho rr-Pr3leclicn System 41200C 5 4E6.097 6,221 8208 5 641,344 40 S 128265 S 513.07E
S 2,111,711 S 5,304,36e
Sub Total S 18,665,160 5 34,825,504 $ 13,E65,082 S 26,647,780
Calculated Total Cu—m
Acnukmon Value 290B Value Oap..Wlon Value
TOTAL ASSETS 5 18.127,659 5 4;453,645 5 16,231.922 5 31,806,085
Exhibit 2
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No.4? Figure 1.2
TIGARD WATER SERVICE AREA
L 17� 0 F.. JOINT WATER SUPPLY SYSTEM ANALYSIS
Lo50711.2-7525.al CITY OF LAKE OSWEGO AND TIGARD WATER SERVICE AREA
EXHIBIT 3 - Map of Supply Facilities
Waluga Reservoir
Bonita Pump
Station
•
Lake Oswego
'� �x:r+-� WaterTreatment Plant
:t.
lyf - •S � � - J� r 1 �'�
$
C•,+��••' - Ili l► -,1'� #' ' -
,° Via' 'j"�'si - - ``.. ` r^"�«•y w:..ni rr 3 '... •a
1 YI e
y1y t
or. —
;'s R Clackamas River Intake
Legend
Existing and Proposed
Parallel Pipeline _ Z.-
0 1 2
Miles _
Exhibit 4
City of Lake Oswego Water Rights Summary
Permitee Application/Permit# Authorized Authorized Amount Amount Priority Source
amount place of developed/certificate# undeveloped Date water
(efs/m d) use (efs/m d) efs/m d)
City of S43365/S32410 50/32.32 City of Lake 25/16.16/C78332 25/16.16 3/14/1967 Clackamas
Lake Oswego and River
Oswego City of
Tigard'
City of S50819/S37839 9/5.81 City of 0 9/5.81 7/5/1973 Clackamas
Lake Tualatin and River
Oswego Tigard
Water
District
Notes: 1.The City of Lake Oswego is currently seeking extensions of time to fully use all water authorized under permit Nos. S32410,
S37839 and S43246. Proposed Final Orders(PFO)approving the City's request are pending at Water Resources Department
(WRD) in Salem. It is expected protests will be filed on the PFO's once they are issued for public comment.
2.The City has submitted its water management and conservation plan to WRD and no public comments on the plan were filed
during the 30-day public comment period. An approved WMCP is required before the City can access any portion of
undeveloped water noted above.
' Permit Amendment T-8358 amended Permits S32410 and S37839 to include the City of Tigard as authorized places of use.
2 Permit 537839 was granted to the City of Lake Oswego for the benefit of the Cities of Tualatin and the Tigard Water District.
Exhibit S
Supply Facilities Capital Improvement Program
(To be added following adoption by each Council)
EXHIBIT
DETERMINATION OF TIGARD BUY-IN
Net Tigard
Original Cost Reproduction Allocation Tigard Share
Asset Tax Map Tax Lot Clackamas Co.Deed Cost a/.
Clackamas River Intake& Pump Station S 1,911,733 S 1,832,454 0.00% S -
Clackamas River Intake Land* 2 2E 20CA 15001 Bk 173,Pg 900-902 S S 14/38 S
Computer System/Software S 214,222 S 70,978 14/38 S 26,150
Finished Water Transmission S 2,1 l 1,71 1 S 5,384,358 0.00% S -
General Plant S 61,500 S 15,274 14/38 S 5,627
Raw Nater Transmission S 612,137 S 2,415,157 14138 S 889,795
Waluga Reservoir S 1,281,427 S 1,940,065 0.00% 5 -
Waluga Reservoir:Land
Reservoir Property 2 IE 07 AD 03100 Doc 72-06414 S 8,416 S 21,340 14/38 S 7,862
Waluga Res#1* 2 lE 07AD 00700 Doc 76-36977 n/a S 329,841 14/38 S 121,520
4800 Carmen Dr* 2 I E 07AD 00900 Doc 92-063461 n/a S 237,346 14/38 S 87,443
Vacant Parcel* 2 1 E 07AD 01000 Doc 92-063461* n/a S 253,485 14/38 S 93,389
Water Treatment Plant S 9,731,005 S 11,489,095 0.00% S -
Water Treatment Plant Land
4260 Kenthorpe Way-parcel 1* 2 1 E 24BD 00300 Bk 688,Pg 581 S 83,797 S 595,491 14/38 S 219,391
4260 Kenthorpe Way-parcel 2* 2 1 E 24BD 00401 Doc 79-35248 n/a S 601,670 14/38 S 221,668
xxxx Mapleton Dr* 2 IE 24BD 01200 Doc 89-10200 n/a S 132,652 14/38 S 48,872
4245 Mapleton Dr* 2 1 E 24BD 01400 Doc 89-13210 n/a S 258,916 14/38 S 95,390
4305 Mapleton Dr* 2 1 E 24BD 01300 Doc 95-33429 n/a S 306,346 14138 S 112,964
4315 Mapleton Dr* 1 2 IE 24BD 01500 Doc 89-13210 n/a S 258,916 14/38 S 95,390
Totals i *less 2006-108190 i S 16,015,948 S 26,143,384 5 2,025,361
•Nct reproduction cost for these properues are based an an asscssofs 2006 reel mat Let value IRIAVI Thac costs art•not included in the total original cast_
Tipnl and LO will need m comptcte an uldmed appraisal of land values.and resolve which parcels ars ntatetial to this agreement before determining the final buy-in cost.
All—tion!l.bsed nn la med.m ntgd capacity allaated to Tigard,
Nn Reproduction Cost includes mcalalion by ENR[as depreciation
EXHIBIT
ALLOCATION OF SYSTEM IMPROVEMENT COSTS TO THE PARTIES
Cost of Lake Oswego Tigard
Improvement Allocation Allocation
(in 2006 $}* (%) Share($) (%) Share($)
Water Treatment Plant
-Existing Plant n/a 100.00% n/a 0.00% $ -
-32 mgd Expansion $ 39,430,000 2/16 $ 4,928,750 14/16 $ 34,501,250
-38 mgd Expansion n/a 100% ** n/a 0.00% $ -
Raw Water Intake and
Pump Station $ 4,440,000 24/38 $ 2,804,210 14/38 $ 1,635,789
Raw Water $ 23,920,000 24/38 $ 15,107,368 14/38 $ 8,812,633
Transmission Main
Finished Water
Transmission Main
-Reaches 7-10 $ 38,220,000 24/38 $ 24,138,947 14/38 $ 14,081,053
-Reaches 11-12 $ 17,020,000 8/22 $ 6,189,091 14/22 $ 10,830,909
Storage(MG) $ 4,010,000 1.0/2.5 $ 1,604,000 1.5/2.5 $ 2;406,000
Bonita Road Pumping
Station $ 1,700,000 0.00% $ - 100.00% $ 1,700,000
Total Costs $ 128,740,000 1 42.54% $ 54,772,366 57.46% $ 73,967,634
Project costs are presented in 2006 dollars.Actual cost will depend an project start and completion dates.
'"-Second(6 mgd)expansion is currently assigned to Lake Oswego. Contract provides For potential reallocation by agreement.
i
CITY OF SING CITY, OREGON
CITY COUNCIL
RESOLUTION NO. R-08-12—
RESOLUTION RECOMMENDING THE CITY OF TIGARD APPROVE THE WATER
PARTNERSHIP INTERGOVERNMENTAL AGREEMENT REGARDING WATER SUPPLY
FACILITIES,DESIGN,CONTSTRUCTION,AND OPERATION,BETWEEN THE CITY OF
TIGARD AND THE CITY OF LAKE OSWEGO
WHEREAS, the City of King City("City")and the City of Tigard("Tigard")are voting members
of the Intergovernmental Water Board created by way of an intergovernmental agreement dated
December, 1993;and
WHEREAS,Tigard and the City of Lake Oswego desire to enter into an intergovernmental
agreement("Proposed IGA')regarding water supply for the purpose ofjointly obtaining a
permanent non-contract source of raw water;and
WHEREAS,the City and Tigard have agreed that it is in the public's best interest for the City to
review the Proposed IGA;and
WHEREAS,the Proposed IGA is supported by sound engineering analysis,is in the best interest
of water customers within the original water district and is consistent with the goal of working
together to provide all of the residents and'property with a clean,economical water supply;and
WHEREAS,in July 2007 an engineering study known as the Lake Oswego and Tigard Joint
Water Supply System Analysis was performed by Carollo Engineers and was funded by the
ratepayers of the Tigard Water Service Area and the City of Lake Oswego.
NOW,THEREFORE,BE IT RESOLVED by the City Council of the City of King City that:
SECTION 1: The City of King City hereby recommends to Tigard that the Intergovernmental
Agreement Regarding Waxer Supply Facilities,Design and Construction and
Operation Between the City of Lake Oswego and the City of Tigard be approved
by the City of Tigard;and
SECTION 2: This resolution is effective immediately upon passage.
PASSED: This 16th day of July,2008.
7Mayor,City of King City
A �
City Recorder, City o :.King City
Page 1 - RESOLUTION NOR-08-12
CITY OF DURHAM, OREGON
RESOLUTION NO. 503-08
RESOLUTION RECOMMENDING THE CITY OF TIGARD APPROVE THE WATER PARTNERSHIP
INTERGOVERNMENTAL AGREEMENT REGARDING WATER SUPPLY FACILITIES,DESIGN,
CONSTRUCTION,AND OPERATION,BETWEEN THE CITY OF TIGARD AND THE CITY OF
LAKE OSWEGO
WHEREAS, the Tigard Water District("District")/City of King City("City")/City of Durham("Durham")
and the City of Tigard("Tigard")are voting members of the Intergovernmental Water Board created by
way of an intergovernmental agreement dated December, 1993;and
WHEREAS, Tigard and the City of Lake Oswego desire to enter into an intergovernmental agreement
("Proposed IGA')regarding water supply for the purpose of jointly obtaining a permanent non-contract
source of raw water;and
WHEREAS,the District/City/Durham and Tigard have agreed that it is in the public's best interest for
Durham to review the Proposed IGA;and
WHEREAS,the Proposed IGA is supported by sound engineering analysis, is in the best interest of water
customers within the original water district and is consistent with the goal of working together to provide
all of the residents and property with a clean,economical water supply;and
WHEREAS, in July 2007 an engineering study known as the Lake Oswego and Tigard Joint Water Supply
System Analysis was performed by Carollo Engineers and was funded by the ratepayers of the Tigard
Water Service Area and the City of Lake Oswego.
NOW,THEREFORE,BE IT RESOLVED by the City Council of the City of Durham that:
SECTION i: The City of Durham hereby recommends to Tigard that the Intergovernmental Agreement
Regarding Water Supply Facilities,Design and Construction and Operation Between the
City of Lake Oswego and the City of Tigard be approved by the City of Tigard;and
SECTION 2: This resolution is effective immediately upon passage.
PASSED: This 26 day of July, 2008.
f
ry Schiriddo,Mayor
ATTEST:
Roland Signett, City Rei der
Tigard Water District
Serving the Unincorporated Area
RESOLUTION NO. 08-03
RESOLUTION RECOMMENDING THE CITY OF TIGARD APPROVE THE WATER
PARTNERSHIP INTERGOVERNMENTAL. AGREEMENT REGARDING WATER SUPPLY
FACILITIES,DESIGN,CONTSTRUCTION,AND OPERATION,BETWEEN THE CITY OF TIGARD
AND THE CITY OF LAKE OSWEGO
WHEREAS, the Tigard Water District("District")and the City of Tigard("Tigard")are voting members
of the Intergovernmental Water Board created by way of an intergovernmental agreement dated
December, 1993;and
WHEREAS, Tigard and the City of Lake Oswego desire to enter into an intergovernmental agreement
("Proposed IGA")regarding water supply for the purpose of jointly obtaining a permanent non-contract
source of raw water;and
WHEREAS,the District and Tigard have agreed that it is in the public's best interest for the District to
review the Proposed IGA;and
WHEREAS,the Proposed IGA is supported by sound engineering analysis,is in the best interest of water
customers within the original water district and is consistent with the goal of working together to provide
all of the residents and property with a clean,economical water supply;and
WHEREAS,in July 2007 an engineering study known as the Lake Oswego and Tigard Joint Water
Supply System Analysis was performed by Carollo Engineers and was funded by the ratepayers of the
Tigard Water Service Area and the City of Lake Oswego.
NOW,THEREFORE,BE IT RESOLVED by the Tigard Water District Board of Commissioners that:
SECTION 1: The Tigard Water District hereby recommends to the City of Tigard that the
Intergovernmental Agreement Regarding Water Supply Facilities,Design and
Construction and Operation Between the City of Lake Oswego and the City of Tigard be
approved by the City of Tigard;and
SECTION 2: This resolution is effective immediately upon passage.
PASSED: This 28th day of July,2008. j
Chair, Tigard Water District
ATTEST:
Tigard Water Di 1ct Acting Recorder
EXHIBIT `A'
Water Supply Plan Joint Funding Agreement
Amendment No. 1
WHEREAS, on March 6, 2006 the City of Lake Oswego, a municipal corporation of the State of Oregon
and the City of Tigard, a municipal corporation of the State of Oregon, hereinafter collectively referred to
as"the parties"by and through their respective charters entered into an intergovernmental agreement(the
Agreement)to jointly fund a water supply system plan, and
WHEREAS, pursuant to a competitive selection process,Lake Oswego retained Carollo Engineers, P C
(the Consultant)to perform an engineering study for anoint water supply system plan according to a
Scope of Work mutually agreed to by the parties, and
WHEREAS, the parties mutually agreed to share equally the costs of the Consultant for the approved
Scope of Work, and
WHEREAS,the Agreement provides that modifications to the approved Scope of Work may be made at
any time with the mutual consent of the parties, and
WHEREAS,pursuant to Section 2,paragraph 2 of the Agreement Lake Oswego and Tigard mutually
agree to modify the Consultants Scope of Work to include additional services, and
WHEREAS,pursuant to Section 2,paragraph 3 of the Agreement Lake Oswego and Tigard mutually
agree to share the costs for these additional services
NOW,THEREFORE, the City of Lake Oswego and the City of Tigard agree that the Intergovernmental
Agreement for Joint Funding of a Water Supply System Plan for the City of Lake Oswego and the City of
Tigard, approved by Tigard on February 28, 2006, and approved by lake Oswego on March 6,2006, is
hereby amended as follows
1 The"Amendment 1 Scope of Work"in the form attached as Exhibit 1 is added to the Scope of
Work
2 The parties shall share the costs of the"Amendment 1 Scope of Work"in the following
proportions Lake Oswego$63,531 and Tigard$62,619
3 Except as specifically amended herein,the provisions of the original Intergovernmental
Agreement for Joint Funding of a Water Supply System Plan for-the City of Lake Oswego and the City of
Tigard shall remain in full force and effect
For City of Lake Oswego For City of Tigard
C
C
4adi€-IammerstadyMayor Craig 'rksen;Mayor
Ellie McPeak, Council President Craig Dirksen
Lake Oswego has acted in this matter pursuant to Resolution No. 07-/0 adopted by the City
Council on the day of FtbruAl , 2007
Tigard has acted in this matter pursuant to a Motion adopted by its City Council on the day of
21A- 1-, 2007
ATTEST ATTEST
By: By: ('
Robyn firistie, City Recorder Cathy Wheatley, City Recorder
APPROVED AS TO FORM APPROVED AS TO FORM
David Powell,City Attorney Tim Ramis,C y Attorney
City of Lake Oswego and the City of Tigard E X H I B I T
Joint Water Supply System Analysis
Amendment 1 Scope of Work 1
January 3, 2007 ---------
Page 1 fir
BACKGROUND
The Cities of Lake Oswego and Tigard (the Cities) have initiated a comprehensive study
to develop and evaluate options for the possible formation of a joint water supply system
to serve both cities. In May 2006, Lake Oswego entered into a consulting services
agreement with Carollo Engineers, P.C. (Carollo) to complete this project.
Since that time, many of the initial project goals have been accomplished including
identifying projected water supply demands, development of conceptual alternatives for
water supply improvements, identification of regulatory constraints, development of a
strategic communications plan, and evaluation of governance options. Based on the
work completed to date, the Cities have identified additional services and modifications
to the original scope of work to better respond to the issues, concerns and opportunities
that have been identified.
Details of the proposed amended scope of each task are presented in the following
section. The budget and schedule for these activities are attached.
TASK 1 — EVALUATE WATER SUPPLY SYSTEMS
The following additional work has been requested as part of this task:
A1.1.1. Modifications to Lake Oswego Population and Demand Forecasts
Lake Oswego has requested additional modifications to the population and demand
forecasts developed by Carollo to achieve improved consistency between the Joint
Water Supply System Analysis and Lake Oswego's draft Water Management and
Conservation Plan (WMCP). This task includes additional revisions to initial population
and demand forecasts, development of a summary of proposed forecasting
methodologies, coordination with the draft WMCP, meeting with the City and the City's
WMCP consultant, and revisions to Technical Memorandum 1 based on additional
revisions to the updated methodology.
H:\JOEL—K\TIGARD\PSC amendment 1\LO Amendment 1 -Scope-Final.doc
City of Lake Oswego and the City of Tigard
Joint Water Supply System Analysis
Amendment 1 Scope of Work
January 3, 2007
Page 2
A1.1.2. Significance of Conservation on Supply Improvements
The City's elected officials have expressed interest in making water conservation a key
element of future supply planning and to build upon the conservation programs each city
has developed This task includes preparing a technical memorandum (TM) describing
the relative significance of the three potential conservation strategies on the capacity,
cost and implementation schedule of supply requirements, supply scenarios, and the
associated capital improvements for the proposed water supply scenarios A draft TM
will be prepared for review by the Cities and will be finalized based on the Cities' review
comments Findings of the final TM will be incorporated into the project report
It is assumed the Cities will Identify potential conservation measures and assumed
conservation targets for each conservation strategy
TASK 2 — EVALUATE WATER SUPPLY FACILITY ALTERNATIVES
The following additional work has been requested as part of this task
A1.2.1. Evaluation of Alternative Intake via South Fork Water Board
Prepare a brief(one-page) memorandum describing the feasibility and costs of
upgrading the existing South Fork Water Board (SFWB) intake and constructing a new
transmission line to convey the water to the existing Lake Oswego intake These
Improvements would be sized to supplement the capacity of the existing Lake Oswego
intake, to provide a total combined intake capacity equal to Lake Oswego's existing
senior and junior water rights on the Clackamas River It Is assumed that based on this
limited analysis, this alternative will not be considered further in the remaining supply
planning work
A1.2.2. Evaluation of Interim Supplies to Lake Oswego
This task consists of evaluating two alternatives for interim supply to Lake Oswego to
allow deferring of near-term supply Improvements that would otherwise be necessary to
serve the Lake Oswego The first alternative consists of supply from Tigard using a
connection to the existing Washington County Supply Line (WCSL)from Portland The
H\JOEI-_K\TIGARD\PSC amendment 1\1_0 Amendment 1 -Scope-Final doe
City of Lake Oswego and the City of Tigard
Joint Water Supply System Analysis
Amendment 1 Scope of Work
January 3, 2007
Page 3
second alternative consists of supply from the South Fork Water Board (SFWB)via an
intertie with the City of West Linn The evaluation of these two alternatives will include
analysis of this alternative supply concept, identification of capital cost and capacity for
two options (Option 1 use of existing pipeline capacity, and Option 2 development of a
new transmission capacity) Capital and O&M costs for associated upgrades will be
identified, and Implications for timing of future supply improvements to implement the 24,
32 and 38 mgd water supply scenarios will be evaluated A matrix will be prepared
presenting a comparison of the alternatives based on various evaluation criteria (such as
capacity, reliability, resource impacts, governance requirements, capital cost, operating
cost, and consistency with long-term supply requirements), The evaluation will be
summarized in a draft and final technical memorandum, with resulting finding
Incorporated Into the project report
It is assumed the City of Tigard will provide a recently-completed capacity analysis of the
WCSL It is further assumed that the City of West Linn and SFWB will assist in
identifying the capacity of the existing intertie between West Linn and Lake Oswego,
system Improvements that may be required to increase intertie capacity, and aid In
identifying costs for water purchases
TASK 3— EVALUATE REGULATORY, PERMITTING, AND WATER RIGHTS
The following additional work has been requested as part of this task
A1.3.1. Water Rights Overview and Recap
Prepare additional information summarizing existing water rights on the Clackamas
River This will include 1) a summary of existing Oregon water law, Including a synopsis
of the processes and criteria for establishing and enforcing water right priorities, 2) a
summary of the location, quantity and priority of existing water rights on the Clackamas
River, 3)the existing and projected future water demands of water right holders on the
Clackamas River, 4) maps identifying the location, capacity, current and future demands,
and priorities of existing water rights on the Clackamas River, and 5) a review and
summary of the conclusions of the existing Portland State University (PSU) hydraulic
H\JOEL K\TIGARD\PSC amendment 110 Amendment 1 -Scope-Final doc
City of Lake Oswego and the City of Tigard
Joint Water Supply System Analysis
Amendment 1 Scope of Work
January 3, 2007
Page 4
model of the Clackamas River This information will be provided as a presentation to be
made as part of Joint City Council Workshop 2, which is scheduled to be conducted as
part of the original scope of Task 5 Graphics associated with this task will be Included in
a revised draft of Tech Memo 3, and will be Incorporated into the project report
TASK 4—CONDUCT STRATEGIC OUTREACH & COMMUNICATIONS
The following additional work has been requested as part of this task
A1.4.1 - Implementation of Public Outreach Plan
This supplemental scope of services supports implementation of the Strategic Outreach
and Communications Pian for the Joint Water Supply System Analysis. Initiation of this
work requires separate authorization to proceed, which is anticipated to be Issued
following completion of the individual City Council meetings outlined in Task Al 5 1
This work Includes the following sub-tasks
Al 4 1 1 - Information Materials & Tools
Materials and tools will be created that enable the Cities to identify and reach Interested
citizens, answer their questions, and invite their involvement These tools may include
• Fact sheet/ updates (assumes one fact sheet/ one update)
• Synopsis of technical issues/analysis
• Targeted communications for interested parties (assumes one mailing)
• Develop/ maintain project mailing list
• Design portable displays
® Website
Al 4 1 2 - Public Meetings
Public meetings /open houses will be organized and facilitated Assist in developing
feedback forms and other materials that may be needed to capture public input
• Organize /facilitate two public meetings /open houses In Lake Oswego and
Tigard
• Develop meeting materials /feedback forms
H\JOEL_K\TIGARD\PSC amendment 1\1_0 Amendment 1 -Scope-Final doc
City of Lake Oswego and the City of Tigard
Joint Water Supply System Analysis
Amendment 1 Scope of Work
January 3, 2007
Page 5
0 Summarize meeting results/ public Input for the project team and policymakers
Al 4 1 3 - Media Relations
Support Lake Oswego and Tigard Public Works department heads that have primary
media outreach responsibility for the project The support tasks are as follows
• Support project spokesperson(s)
• Draft media releases
0 Support media briefings (to be conducted by City staff)
0 Monitor news coverage
Al 4 1 4 -Website(s)
Develop and post timely Information on the Cities' websites
• Provide website content, Including such things as project overview, schedule,
general project Information, opportunities for public Involvement, announcing
meetings and events Provide downloadable copies of technical studies, means
for feedback, and offer ways for stakeholders to contact project team members
Al 4 1 5 - Strategic Communications
Provide advice to the Cities of Lake Oswego and Tigard on strategic communications,
Including the following
0 Messaging
0 Review project communiques
0 Advice to project team
Al 4 1 6 - Documentation
The results of strategic outreach and communications will be documented, and
highlights shared with the project team and Lake Oswego and Tigard policymakers
This subtask Includes one additional meeting with staff of the Cities and a presentation
to a Joint City Council Meeting to provide a summary of public Input obtained as part of
this work
H\JOEL_K\TIGARD\PSC amendment 1\1-0 Amendment 1 -Scope-Final doc
City of Lake Oswego and the City of Tigard
Joint Water Supply System Analysis
Amendment 1 Scope of Work
January 3, 2007
Page 6
It is assumed that up to two maps or similar graphics will be produced by the as part of
this effort for use in presentations and public communications It is further assumed that
printing, distribution and web hosting will be providing by the Cities
TASK 5— CONDUCT STAFF AND JOINT CITY COUNCIL WORKSHOPS
The following additional work has been requested as part of this task
A1.5.1. Support for Additional Individual Council Meetings
Provide support in the preparation and facilitation of individual meetings with the City
Councils of the City of Tigard, the City of Lake Oswego, and the Intergovernmental
Water Board Develop presentations, meeting handouts, and meeting summaries for
each council meeting, as needed The results Of the financial rate impact forecasts will
be presented at one council meeting each for Lake Oswego, Tigard and the
Intergovernmental Water Board In addition, one project briefing will be held with the
West Linn City Council
A1.5.2. Support for Additional City Staff Workshop
Provide support for one additional meeting of the Cities' staffs Objectives of this
additional meeting will include review and comment on water rights and conservation
draft deliverables, review and comment on the additional supply alternatives, and
preparation for the additional point City Council meeting Develop presentations, meeting
handouts, and meeting summary , as required
A1.5.3. Support for Additional Joint City Council Meeting
Provide support In the preparation and facilitation of a third point meeting of the City
Councils of the City of Tigard and the City of Lake Oswego and the Intergovernmental
Water Board Develop presentations, meeting handouts, and meeting summaries for the
meeting, as required
TASK 6— EVALUATE ORGANIZATIONAL &GOVERNANCE OPTIONS
The following additional work has been requested as part of this task
H\JOEL_K\TIGARD\PSC amendment 1\1-0 Amendment 1 -Scope-Final doc
City of Lake Oswego and the City of Tigard
Joint Water Supply System Analysis
Amendment 1 Scope of Work
January 3, 2007
Page 7
A1.6.1. Development of Matrix of Governance Issues and Alternatives
To further refine and clarify the governance issues and alternatives for the Cities, a
matrix of the options will be developed This matrix will identify topics and associated
options for governance, asset ownership, system management, voting rights, system
expansion, buy-out and terms of withdrawal, dispute resolution, capital buy-in, and
addition of future partners For each option, relative advantages and limitations will be
identified This task also includes one additional meeting with the City Attorneys from
Lake Oswego and Tigard to review the matrix and identify the preferred alternatives
TASK 7— CONDUCT FINANCIAL EVALUATION
The following additional work has been requested as part of this task
A1.7.1. Update and Integration of Tigard Water Supply Options
The original project scope of work related to a financial and economic analysis'focused
on a cost comparison of various water supply options To further support evaluation and
decision-making, the City of Tigard wishes to compare these findings to the results of a
separate analysis addressing other regional supply options This scope of work provides
task elements to update that separate analysis by applying a consistent set of
assumptions, and to incorporate and document those findings in project documentation
The work conducted for a regional consortium of water service providers benchmarked
several supply scenarios for Tigard This study has now revised demand forecasts and
created additional alternate scenarios requiring multiple sources to meet Tigard's
projected needs This task will update analyses of regional supply costs as alternatives
to, and supplements to, the Lake Oswego supply Included in this effort are the following
tasks
• Update existing supply cost analyses based on a revised Tigard water demand
forecast Coordinate with the City of Tigard to validate revisions to assumptions
• Develop additional supply cost analyses addressing demands in excess of
supply available from Lake Oswego
H\JOEL_K\TIGARD\PSC amendment 1\1_0 Amendment 1 -Scope-Final doc
City of Lake Oswego and the City of Tigard
Joint Water Supply System Analysis
Amendment 1 Scope of Work
January 3, 2007
Page 8
o Develop additional summary materials to address this broader perspective on
supply costs for Tigard
o Participate in one project review session specifically related to Tigard's broader
supply cost issues
A1.7.2. Develop Rate Impact Forecasts
The Cities of Lake Oswego and Tigard wish to evaluate potential rate impacts related to
the proposed water supply scenarios This scope of work provides task elements to
develop updated rate forecasts by incorporating supply costs into a water utility rate
forecast model In each case, FCS Group has previously developed such a forecast
model, which will be updated and used as a platform for the rate analysis
In order to reasonably forecast rates, related water System Development Charges
(SDCs) also need to be considered Since this supply evaluation does not consider all
system water investments and improvements, an "incremental" analysis is proposed
Under this scope of work, supply system capital costs for each scenario will be used to
develop unit costs per gallon of demand It will be assumed that SDC revenues will be
consistent with that unit cost and annual demand growth These revenues will be
considered an offset against capital costs, including related debt service The net
remaining costs will be considered to be supported by rates, thus leading to a rate
impact determination It should be noted that this analysis will not result in a proposed
revision to either City's water SDC, a work product that is more extensive in its content
and one that would require further and more detailed analytical and process elements
than proposed here
This supplemental scope includes the following subtasks
Al 7 2 1 — Develop Lake Oswego Rate Impact Forecast
This task will develop a current version of the City of Lake Oswego's water revenue
requirements model based on current levels of revenues and expenses The
incremental capital and operating costs of each supply scenario will be incorporated into
H\JOEL_K\TIGARD\PSC amendment 1\1-0 Amendment 1 -Scope-Final doc
City of Lake Oswego and the City of Tigard
Joint Water Supply System Analysis
Amendment 1 'Scope of Work
January 3, 2007
Page 9
the forecast to determine rate impacts Four supply scenarios will be developed in this
fashion The scenarios include alternatives scenario 2 (stand alone), 3 (senior right), 4
(senior and junior right), and new scenario 5 (senior and junior right with interim Tigard
supply of Portland water to Lake Oswego)
The City of Lake Oswego will provide necessary budget data, non-supply capital
improvement plans, and operations and maintenance (O&M) cost,breakdowns as
requested to support the development of this analysis, based on a data request
C Update the City's water rate forecast(revenue requirement) model with current
budget and system planning information, including the Capital Improvement Plan
(CIP) The operating and maintenance budget will be structured to segregate
supply and treatment costs from other expenses, in order to introduce differential
costs for each supply scenario.
• Develop a unit capital cost to project an estimated SDC revenue stream
attributable to each of four supply scenarios
c Develop a water rate forecast for each of the four supply scenarios (2-5) The
forecast will portray total annual revenue requirements, projected annual
percentage rate increases and total revenue requirements Based on preliminary
findings, rate smoothing features will be considered and incorporated as
appropriate to mitigate mayor rate impacts
C Document the rate forecast findings in the form of a technical memorandum, and
develop appropriate summary materials to present comparative findings
Al 7 2 2 — Develop Tigard Rate Impact Forecast
This task will apply a current version of the City of Tigard's water revenue requirements
model based on current levels of revenues and expenses The incremental capital and
operating costs of each supply scenario will be incorporated Into the forecast to
determine rate impacts Four supply scenarios will be developed in this fashion The
scenarios include alternatives scenario 2 (stand alone), 3 (senior right), 4 (senior and
junior right), and new scenario 5 (senior and junior right with interim Tigard supply of
Portland water to Lake Oswego)
H\JOEL_K\TIGARD\PSC amendment 1\1_0 Amendment 1 -Scope-Final doc
City of Lake Oswego and the City of Tigard
Joint Water Supply System Analysis
Amendment 1 Scope of Work
January 3, 2007
Page 10
The City of Tigard will provide necessary budget data, non-supply capital improvement
plans, and O&M cost breakdowns as requested to support the development of this
analysis
® Update the City's water rate forecast(revenue requirement) model as needed
with current budget and system planning information, including the CIP As
needed, the operating and maintenance budget will be refined to fully segregate
supply and treatment costs from other expenses, in order to introduce differential
costs for each supply scenario
• Develop a unit capital cost to project an estimated SDC revenue stream
attributable to each of four supply scenarios
o Develop a water rate forecast for each of the four supply scenarios (2-5) The
forecast will portray total annual revenue requirements, projected annual
percentage rate increases and total revenue requirements Based on preliminary
findings, rate smoothing features will be considered and incorporated as
appropriate to mitigate major rate impacts
o Document the rate forecast findings in the form of a technical memorandum and
develop appropriate summary materials to present comparative findings
TASK 8— Prepare Final Report
The following additional work has been requested as part of this task
Al 8.1. Expand Scope of Final Report
The amended scope tasks, described above, will require a significant modification to the
development of the Final Report The additional white papers, technical memorandums,
and meeting summaries describing the regulations, water rights, strategic outreach,
financial evaluations, and additional Council meetings will be summarized and included
in the Final Report of this Joint Water Supply System Analysis A decision matrix will be
generated to reflect a subjective evaluation of supply options against the values and
principles and public input identified as part of Task 4
i-i\JOEL_K\TIGARD\PSC amendment 1\1-0 Amendment 1 -Scope-Final doc
City of Lake Oswego and the City of Tigard
Joint Water Supply System Analysis
Amendment 1 Scope of Work
January 3, 2007
Page 11
A1.8.2. Project Management and Administration of Amended Services
The original completion date for the Joint Water Supply System Analysis was scheduled
for December 2006 However, the scope amendments described above result in a delay
of approximately four months, with a new final completion date scheduled for April 2007
This task includes associated project management and administration to meet the
extended project deadline
H\JOEL_K\TIGARD\PSC amendment 1\1-0 Amendment 1 -Scope-Final doc
Attachment 2
car®LL® City of Lake Oswego and Tigard Water Service Area
e n 6 $ n e e r Is Joint Water Supply System Analysis
Professional Services Fee&Rate Schedule
Updated Project Hours and Costs As Amended
1/3/2007(revised 3/9/07)
ORIGINAL BUDGET AMENDMENT 1 TOTAL BUDGET AS AMENDED
Original Amended
Amendment 1 Amendment i TOTAL Amended Total Amended Total
Task Original Carollo Subtotal Original Task Relmbursables and Lake Oswego Tigard Cost Relmbursables Amended total las
Task Description Carollo Labor SubconzuHant Amendment 1 Carollo Labor Subconsuhant
Number Labor Budget Subconsunant Budget Budget Budget Other Direct Charges Task Budget Cost Share Share Budget Budget and Other Direct Budget
Budget Charges
1 Evaluate Water Supply Systems(Facilities 240 84 324
Demands Scenarios) $ 29 760 $ 4 000 $ 33 760 $ 10 400 $ $ 50 $ 10 450 $ 8 273 $ 2 177 $ 40 160 $ 4 000 $ 50 $144210
2 Evaluate Facility Alternatives(Intake 400 75 475
Treatment Transmission Wheeling) $ 50 960 $ $ 50 960 $ 9 842 $ $ $ 9 842 $ 5 244 $ 4 598 $ 60 602 $ $
3 Evaluate Regulatory Permitting and Water 8 52 60
Rights $ 1 456 $ 17 800 $ 19 256 $ 5 848 $ $ 100 $ 5 948 $ 2 974 $ 2 974 $ 7 304 $ 17 800 $ 100
4 Conduct Strategic Outreach and 72 36 108
Communiciations $ 9 776 $ 18 000 $ 27 776 $ 4 128 $ 15 400 $ 1 590 $ 21 118 $ 10 559 $ 10 559 $ 13 904 $ 33 400 $ 1 590 $ 48 894
5 Conduct City Council and City StaffWorkshops 140 88 228
$ 18 320 $ 7 480 $ 25 800 $ 12 584 $ 10 000 $ 1 150 $ 23 734 $ 11 867 $ 11 867 $ 30 904 $ 17 480 $ 1 150 $ 49 534
6 Evaluate Organizational Structures and 68 12 80
Governance Options $ 11 056 $ 4 440 $ 15 496 $ 1 784 $ 3 500 $ 350 $ 5 634 $ 2 817 $ 2 817 $ 12 840 $ 7 940 $ 350 $ 21 130
7 Conduct Financial Evaluation 8 24 32
$ 1 456 $ 26 400 $ 27 856 $ 3 312 $ 32 120 $ 3 212 $ 38 644 $ 16 407 $ 22 237 $ 4 768 $ 58 520 $ 3 212 $ 66 500
8 Prepare Final Report 136 56 192
$ 15 152 8,340 23,492 $ 7 880 2 500 400 10,780 5,390 5,390 $ 23 032 10,840 400 1 1 34,27
Total 1072 421 1 499
$ 137 936 $ 86 460 $ 224 396 S 55-7-7 8 $ 63 520 $ 6 852 $ 126 150 $ 63 531 $ 62 619 $ 193 714 $ 149 980 $ 6 852 $ 3505461
TOTAL Consultant Budget $ 350,546
CITY OF TIGARD, OREGON
TIGARD CITY COUNCIL
RESOLUTION NO. 07 I
A RESOLUTION AUTHORIZING AMENDMENT NO. 1 TO THE
INTERGOVERNMENTAL AGREEMENT BETWEEN T1-1E CITY OF TIGARD AND THE
CITY OF LAKE OSWEGO FOR JOINT FUNDING OF A WATER SUPPLY SYSTEM PLAN
WHEREAS, to explore the feasibility of a possible water partnership, the Cities of Tigard and Lake Oswego
entered into an intergovernmental agreement to jointly fund a Water Supply System Plan in March,2006; and
W[-IFEREAS,Carollo Engineers,P.C.was retained as the consultant to provide engineering services for the Joint
Water Supply System Plan;and
WHEREAS, the Cities of Tigard and Lake Oswego have determined the need for additional services and,
pursuant to that need, an amended Scope of Work (Exhibit 1, to the Water Supply Plan Joint Funding
Agreement Amendment No. 1)has been developed;and
WHEREAS,the Cities of Tigard and Lake Oswego mutually agree with the amended Scope of Work and fees
as proposed by the consultant for this additional worm;and
WHEREAS,the Cities of Tigard and Lake Oswego have agreed to share the cost of any additional services.
NOW,THEREFORE,BE IT RESOLVED by the Tigard City Council that:
SECTION 1: Amendment No. 1 to the Water Supply Plan Joint Funding Agreement(Exhibit A)is approved.
SECTION 2: The City of Tigard's proportionate share of the additional services contained in Amendment
No. 1 is$62,619.
SECTION 3: This resolution is effective immediately upon passage.
PASSED: This J day of. 2007.
Mayor City of Tigard
ATTEST:
t
City Recorder-City of Tigard dCertifed to be a tare copy f the original on file at city of
Tigar C all.
y
City Kecor er, City of Tigard Date
RESOLUTION N0.07- -;� L)
Page 1
RESOLUTION 07-10
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF LAKE OSWEGO AUTHORIZING
THE MAYOR TO SIGN A FIRST AMENDMENT TO THE INTERGOVERNMENTAL AGREEMENT
FOR JOINT FUNDING OF A WATER SUPPLY SYSTEM PLAN FOR THE CITY OF LAKE
OSWEGO AND THE CITY OF TIGARD
WHEREAS,the City of Lake Oswego (hereinafter,Lake Oswego) and the City of Tigard(hereinafter,
Tigard)hereinafter collectively referred to as"the parties" entered into an intergovernmental agreement to
jointly fund a study of the benefits and costs of forming a Joint water supply partnership, and
WHEREAS,the parties pursuant to a competitive selection process mutually agreed to retain Carollo
Engineers,P C (hereinafter,"consultant")to provide engineering services for the j omt water supply study
and equally share the costs of this study, and
WHEREAS,Lake Oswego pursuant to the intergovernmental agreement is to act as the paying agent and
make all payments to consultant as such consultant costs are invoiced monthly for services performed,
and
WHEREAS,pursuant to the intergovernmental agreement Tigard is invoiced monthly by Lake Oswego
for its share of monthly consultant invoices paid by Lake Oswego, and
WHEREAS,the parties have determined the need for the consultant to provide additional engineering
services not previously authorized and pursuant to that need have requested and received a proposal from
consultant to provide such additional services, and
WHEREAS,the parties mutually agree with the scope and fees as proposed by the consultant for this
additional work and to share the costs in the following proportion Lake Oswego $63,531 and Tigard
$62,619
NOW,THEREFORE,BE IT RESOLVED that the City Council of the City of Lake Oswego authorizes
the Mayor to sign a first amendment to the intergovernmental agreement for Joint funding of a water
supply system plan for the City of Lake Oswego and the City of Tigard,attached as Exhibit `A'
Considered and enacted by the City Council of the City of Lake Oswego at a special meeting held on the
20'h day of February,2006
AYES McPeak, Turchi, Grozni.k, Hennagin, Johnson
NOES None
ABSTAIN None
EXCUSED Mayor Hammerstad, Jordan
AbAie/livh"a4'AW Ma
Ellie McPeak, Council President
ATTEST &�10
Robyn Chn tie, City Recorder
APPROVED AS TO FORM
David Powell, City Attorney
Attachment Exhibit 'A'—Water Supply Joint Funding Agreement Amendment No 1
<4 coroLLo City of Lake Oswego and Tigard Water Service Area
• n • I n • • r s Joint Water Supply System Analysis
Professional Services Fee&Rate Schedule
Updated Project Hours and Costs As Amended
1/3107
ORIGINAL BUDGET AMENDMENT 1 - TOTAL BUDGET AS AMENDED
Original Amendment 1 Amendment 1 TOTAL Amended Total Amended Total Amended
Task Original Carollo Subtotal Original Task Reimbursables and Lake Oswego Tigard Cost Reimbu rsables Amended Total Tas
Number Task Description Labor Budget Subconsuttant Budget Carollo Labor Subconsuttant Amendment 1 Carollo Labor Subconsuttant
Budget Budget Other Direct Charges Task Budget Cost Share Share Budget Budget and Other Direct Budget
Budget Charges
Evaluate Water Supply Systems(Facilities, 240 84 324
1 Demands,Scenarios 29 760 $ 4,000 $ 33.760 S 10,400 § $ 50 $ 10,450 $ 8.273 $ 2,177 $ 40,160 S 4,000 $ 50 $ 44.160
$ ,
Evaluate Facility Alternatives(Intake, 400 75 475
2 Treatment,Transmission,Wheeling) $ 50,960 $ $ 50,960 $ 9.842 $ - $ $ 9.842 $ 5,244 S 4,598 s 60.802 $ $ $ 60.802
Evaluate Regulatory,Permitting,and Water 8 52 60
3 Rights $ 1,456 S 17.800 $ 19.256 $ 5,848 $ S 100 s 54948 $ 2,974 $ 2.974 S 71304 S 17,800 S 100 $ 25,104
4 Conduct Strategic Outreach and 72 36 108
Communiciations $ 9,776 $ 18,000 $ 27.776 $ 4,125 $ 15,400 $ 1,590 $ 21,118 $ 10,559 1 s 10,559 $ 13.904 $ 334D0 $ 1.590 E 47,304
5 Conduct City Council and City Staff Workshops 140 BB 228
$ 18320 $ 7,480 $ 25,8D0 $ 12584 $ 10,000 $ 1,150 $ 23,734 $ 11.867 $ 11,867 $ 30,904 $ 17,480 3 1,150 $ 48384
6 Evaluate Organizational Structures and 68 12 6D
Governance Options $ 11,056 S 4,440 s 15,496 $ 1,784 $ 3,500 $ 350 $ 5634 $ 2,817 $ 2.817 $ 12.840 S 74940 $ 350 $ 20,780
6 24 32
7 Conduct Financial Evaluation
$ 11456 3 26,400 $ 27856 $ 7,312 $ 32,120 $ 3,212 $ 36.644 $ 16.407 $ 22,237 $ 41768 $ 58,520 $ 3.212 $ 67,288
136 56 192
8 Prepare Final Report
$ 15,152 8,340 $ 23.492 $ 7,880 2 500 400 $ 10 780 $ 5.390 3 5,390 $ 23,032 $ 10 860 $ 400 S 33.872
Total 1072 427 1.499
$ 137,936 $ 86,460 S 224,396 $ 55,778 $ 63,520 $ 6.852 $ 126,150 $ 63.531 $ 62.619 $ 193,714 $ 149,980 $ 6,852 $ 347.694
TOTAL Consultant Budget S 343,694
C
' This a ement is executed in triplicate.
INTERGOVERNMENTAL AGREEMENT
FOR
JOINT FUNDING
OFA
WATER SUPPLY SYSTEM PLAN
FOR THE
CITY OF LAKE OSWEGO AND THE CITY OF TIGARD
This ORS 190 Intergovernmental Agreement is entered into by the following parties: the City of
Lake Oswego, an Oregon Municipal Corporation, (hereinafter"Lake Oswego"), and the City of
Tigard, an Oregon Municipal corporation, (hereinafter"Tigard"),hereinafter referred to
collectively as the"parties". The parties have agreed to enter into this Intergovernmental
Agreement pursuant to ORS 190.003 — 190.110, which authorizes units of local government to
enter into such agreements.
RECITALS
WHEREAS,pursuant to the terms of a water sales agreement executed in 1983, the City of Lake
Oswego has supplied surplus water to the City of Tigard, and
WHEREAS, since 1983 the parties have mutually benefited from this water supply relationship,
and
WHEREAS, in the past the parties have jointly and individually funded and completed
engineering studies and water master plans that have identified the mutual benefits of continuing
the existing water supply relationship and jointly developing a long term water,supply
partnership, and
WHERAS, Tigard desires to partner in the development of a long term source of new water
supply for its customers and desires to secure an equity position in such a new water supply, and
Lake Oswego is willing to consider a partnership in the development of any new water rights or
facilities,which partnership may include shared ownership, and
WHEREAS, Oregon Administrative Rules Chapter 690,Division 315 "Water Rights Permit
Extensions"adopted on November 22,2005,require municipal water supply agencies with
undeveloped water rights to demonstrate to the satisfaction of the State water resources
department, their ability to beneficially use undeveloped water or risk losing such rights, and
WHEREAS,the City of Tigard commissioned a study entitled"Water Supply Feasibility
Project", which was completed and dated September 2005, and
WHEREAS,that study concluded that it was feasible for Lake;Oswego to supply water to Tigard
on a.long term basis and that partnering with the City of Tigard to develop Lake Oswego's
undeveloped water rights could achieve many benefits.including more efficient use of the water
resource, improved economy of water supply,protection of existing permitted water rights,
improved water supply reliability, and more effective joint response to regulatory challenges, and
1
WHEREAS, the parties have identified the need to conduct a more comprehensive study of the
costs and timing of jointly developing Lake Oswego's currently undeveloped water rights and
'that time is of the essence in completing this study:
NOW THEREFORE, the parties agree as follows:
SECTION 1 —Obligations of the Parties
1. The parties agree to jointly fund'an engineering study that will be comprehensive in
scope and that will complete the various tasks as outlined in the Scope of Work attached
herein as Exhibit"A".
2. Lake Oswego will prepare the necessary documents to solicit and procure the services of
an engineering consulting firm for the study
3. The parties will jointly participate in the review/evaluation and selection process for the
engineering consultant
4. Once an engineering consultant has been selected, Lake Oswego will contract with and
undertake the day to day management of the work of the selected consultant
5. The parties will jointly participate in the provision of all documentation requested by
consultant and necessary for the completion of the Scope of Work
6. The parties will, as required by the Scope of Work,jointly review and comment on all
memoranda,draft reports and other documentation developed by the consultant in the
conduct of the work
7. The staff of each city will be responsible to communicate all relevant information to their
councils as to the progress, status and recommendations of the study. Each party agrees
to facilitate the work of the other in this regard as may be requested by each of the other
during the conduct of the work
Section 2—Allocation of Study Costs and Payment
1. The City of Lake Oswego will be the paying agent for the parties.
2. Amendments to the approved Scope of Work may be made by mutual agreement of the
parties.
3. The costs of any such amendments approved by the parties will be allocated to each party
equally unless mutually agreed otherwise
4. The City of Lake Oswego will make all payments due the consultant pursuant to the
terms of the contract executed between Lake Oswego and consultant. Tigard will
reimburse Lake Oswego for one half of the expenditures. Lake Oswego will invoice
Tigard monthly coinciding with the work=in-progress invoicing submitted by the
consultant. Payments shall be made to the City of Lake Oswego Finance Department,
P.O. 369 Lake Oswego, Oregon 97034. Any amount unpaid after thirty(30) days shall
accrue interest at the rate of nine percent(9%)per annum until paid.
2
SECTION 3 —Ownership of Work Products
1. Work products generated by consultant pursuant to the Scope of Work will be jointly
owned by the parties
2. At the completion of the study, Lake Oswego will provide Tigard with five copies of the
final report'in hard copy and electronic format
SECTION 4—Dispute Resolution
If a dispute arises between the parties regarding this Agreement, the parties shall take the
following steps:
Step One (Negotiation)
Upon written notice provided by one party to the other of a dispute regarding this
Agreement, the parties shall first attempt to resolve the dispute through negotiation. The
City Manager or another person designated by each of the disputing parties will negotiate
on behalf of each entity. If the dispute is resolved at this step, the resolution shall be
reduced to writing and signed by each party.
Step Two (Mediation)
If the dispute cannot be resolved at Step One within thirty(30) days of the date of
mailing of the written notice of the dispute, the parties shall attempt to resolve the dispute
through mediation. If the parties cannot agree on a mediator,they shall request a list of
five(5)mediators from the Presiding Judge of Clackamas County Circuit Court. The
parties will attempt to mutually agree on a mediator from the list provided, but if they
cannot agree, the mediator will be selected by the Presiding Judge of Clackamas County
Circuit Court. The cost of mediator shall be borne equally between the parties, but each
party shall otherwise be responsible for its own costs and fees therefore. If the issue is
resolved at this step, the resolution shall be reduced to writing and.signed by each party.
Step Three(Arbitration)
If the parties are unsuccessful at Steps One and Two,the dispute shall be resolved by
binding arbitration proceedings pursuant to ORS 36.600 et seq. The parties shall follow
the same process as in Step.Two for the selection of the arbitrator. The prevailing party
in Step Three shall be entitled to reasonable attorney fees and posts which have been
incurred during the Step Three process, as determined and awarded by the arbitrator. In
addition, in the event of a petition to the court to for judicial relief related to the
arbitration, such as a petition to seek confirmation, vacation, modification or correction
of an arbitration award, or in the event of judicial action to enforce an arbitration award,
the prevailing party shall.be entitled to recover from-the other party, in addition to costs
and disbursements provided by statute; any sum which a.court, including any appellate
court, may adjudge reasonable as attorney's fees. In the event the prevailing party in the
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ATTEST:
By:
Robyn liristie; City Recorder
City of Tigard,
by and through its city officials
By:
Cr 'g Dirksen,Mayor APPROVED AS TO FORM
jirfR�amis,-'G�tyAtt'o�mey
ATT
By
6thyWAeAey, City Recorder
5
arbitration or related judicial action is represented by"in-house"counsel, the prevailing
party shall,nevertheless be entitled to recover reasonable attorney fees based upon the
reasonable time incurred and the attorney fee rates and charges reasonably and generally
accepted in the metropolitan Portland, Oregon,area.for the type of legal services
performed.
SECTION 5 -Amendments
1. The terms of this agreement may be amended by mutual agreement of the parties. Any
amendments shall be in writing, shall refer specifically to this agreement, and shall be
executed by both parties.
SECTION 6—Notice
1. Written Notice Addresses. All written notices required under this agreement shall be sent
by first:class mail to:
City of Lake Oswego: City Manager
City of Lake Oswego
P.O. Box 369 Lake Oswego,Oregon 97034
City of Tigard: City Manager
City of Tigard
13125 SW Hall Blvd., Tigard, Oregon 97223
IN WITNESS WHEREOF, the Parties have set their hands and affixed their seals as of the date
and year hereinabove written.
Lake Oswego has acted in this matter pursuant to Resolution No. 0(0-0/ adopted by the City
Council on the day of MOC6 12006.
-4 /-.nD7-ron!
Tigard has acted in this matter pursuant to Reselatiort N& adopted by its City
Council on the 'Z�day of 2006.
City of Lake Oswego,
by and through its city officials
By. jL
Judie Hammerstad, Mayor APPROVED AS TO FORM
David Powell, City Attorney
4
Exhibit A
��O4 LAKE ps�f
OREGON
REQUEST FOR PROPOSALS
TO PROVIDE PROFESSIONAL ENGINEERING SERVICES
FOR
AN ANALYSIS OF A JOINT WATER SUPPLY SYSTEM
FOR THE
CITIES OF LAKE OSWEGO AND TIGARD
The City of Lake Oswego, Oregon has selected your firm to submit a proposal for provision of
professional engineering services related to an analysis of a joint water supply system for the
Cities of Lake Oswego and Tigard. In general, this analysis will require a comprehensive and'in-
depth review, analysis and update of previous planning and engineering studies as regards:
o Current and forecasted water demands of both City's through"build-out";
o Options available to meet the combined build-out water demands of each City assuming
the preferred source of supply is the Clackamas River;
o Condition assessment and valuations of existing water utility infrastructure used and.
useful in supply water for the two cities;
o Water rights and water availability;
o Requirements for augmenting, improving and replacing existing utility infrastructure to
provide desired levels of service for build-out water system demands as well as current
and future drinking water regulations
o Environmental and land use permitting requirements necessary for the construction of
new water infrastructure to supply, treat and convey build-out water demands
o Financing strategies and water rate analyses
EXISTING SYSTEM DESCRIPTION
Surface water from the Clackamas River is withdrawn near the town of Gladstone, Oregon and
pumped via the City's raw water intake and pumping facility through a 27-inch diameter pipeline
crossing underneath the Willamette River to the City's treatment plant located just north of Mary
S. Young State Parkin the City of West Linn. The City has'permits to appropriate up to 38
MGD from this source in addition to a permit to appropriate up to 3.87 MGD from the
Willamette River. 32.3 MGD of the City's Clackamas source is authorized pursuant to a permit
Request for Proposal - 1
with a priority date of March 14, 1967. This date is important as it precedes the priority date of
the States in-stream water right. 16.1 MGD of this "senior"permit has been certificated. The
remaining 22 MGD of Clackamas water permitted for municipal use will need to be developed in
order to meet the majority of future water demands for both cities.
The City's water treatment plant (WTP) was constructed in 1967 with an original treatment
capacity of 10 MGD. An expansion to the plant in 1980 provided an additional 6 MGD of
capacity for a current total of 16 MGD. Water treatment operations and processes include
prechlorination, coagulant addition and in-line mixing, sedimentation, dual-media filtration,post-
chlorination and pH adjustment.. Disinfection is accomplished using liquid sodium hypochlorite,
lime and carbon dioxide are used for alkalinity and pH adjustment, PAC is added for seasonal
taste and odor control and polymers are used as coagulant and filter aids. Filter backwash that is
not recycled is wasted to a series of four(4) concrete lagoons where supernatant is decanted to
promote solar drying of alum sludge. The dried sludge is trucked off-site to a landfill.
The existing treatment plant is sited within an existing residential neighborhood and currently
occupies property totaling 6.05 acres. In the early 1990's,the City acquired property contiguous
to the south property line of the plant adding an additional 3.30 acres of land area. Of the 9.35
acres currently under City ownership,plat restrictions-effectively preclude use of the recently
acquired 3.30 acres until such time as 75% of the property owners in the plat agree to amend the
plat covenants to allow other than single family residential dwellings.
Treated water is pumped from the plant through about 37,000 feet of 24-inch diameter steel and
ductile iron transmission mains to the City's 4 MG Waluga reservoir. This reservoir serves as
the starting point for parallel 16 and 24-inch transmission mains that provide water to the City of
Tigard via its Bonita Road pump and metering station.
SCOPE OF SERVICES REQUESTED
The City desires that the bulk of the effort described in the tasks below be completed by August
31, 2006. The order of the tasks shown below is not meant to imply a serial approach to the
conduct of the work nor do they reflect all possible tasks or analyses that may need to be
conducted to achieve a thorough understanding of the permitting, design, financing, governance
and construction related issues and costs a project of this scope might produce. The Cities desire
that the level of analysis be sufficiently rigorous to provide the technical staffs and City Councils
information and cost projections that could allow each agency to initiate discussion of a cooperative
agreement to implement the recommendations of this study effort, should they so choose.
To that end, Consultants are encouraged to include within their proposals any scope items or
tasks they deem to have been omitted in this RFP, and that they believe are necessary to
successfully complete this work. At a minimum, engineering and planning tasks will include:
A. Evaluate existing water supply system - This evaluation will include the following sub-
tasks:
1. Site visits to existing facilities e.g., intake facility,,water treatment plant, Waluga
Reservoir and Bonita Road pump station
Request for Proposal -2
2. Interviews with Lake Oswego plant personnel
3. Review of existing reports, studies and master plans. These include:
o "Water System Study for the City of Lake Oswego",November 1974,C112M HILL
o "Tigard,Water System Study",January 1992, James M. Montgomery
o "Final Report for Evaluation of Water Service With and Without Tigard",July 1994, CH2M
HILL
o "Water Supply Plan Update"for City of Tigard, August 1994,Murray, Smith&Assoc., Inc.
o "Water Treatment Plant Facilities.Plan for the City of Lake Oswego",March 1997, Carollo
Engineers,PC
o "Pilot Study for Treatment of Water from the Clackamas River",Final Report March 1997, .
Black&Veatch/CH2M Hill.
o "Clackamas Basin Water Treatment and Supply Options Study", January 1998,Black&
Veatch; C112M HILL; McKeever/Morris, Inc.
o "Concept Overview and Decision Guidance Document for Water Supply Options",February
2000,Murray, Smith&Assoc.,Inc.
o "Regional Transmission and Storage Strategy", July 2000,Montgomery Watson, Inc.
o . "Water Supply Master Plan Update for City of Lake Oswego",January 2001, Montgomery
Watson Harza,Inc.
o "Biological Assessment for the City of Lake Oswego Clackamas River Water Intake
Modifications",February 2002,MWH,Inc.
o "Cathodic Protection of Raw and Finished Water Transmission Mains",February 2003,
Cascade Corrosion Consulting Services,Inc.
o "Clackamas River Intake, Structural Evaluation and Finite Element Analysis", September
2005,MWH,Inc.
o "Water Supply Feasibility Project for the City of Tigard", September 2005, CH2M HILL,
Inc.
o "City of Lake Oswego Finished Water,Pumping Surge Control System Review",February
2005,Murray, Smith&Associates,.Inc.
4. Compilation and review of existing raw water quality data, treatment plant performance
data from plant database files and other sources.
5. Review of City of West Linn Development Codes, City of Lake Oswego Development
Code, City of Gladstone Development Code,Uniform Building Code, Uniform Fire Code
and other pertinent regulatory documents.
6. Review of existing record'drawings for construction of the City's intake, treatment plant,
transmission mains, etc.
7. Conduct an engineering appraisal:of the existing system including all facilities currently
in use to supply surplus water to the City of Tigard.
Deliverable: Prepare and deliver six (6) copies of a technical memorandum summarizing the
salient information gleaned during the conduct of the above tasks and that relate to and
facilitate the conduct of the remaining tasks requested in this scope of work including those
additional tasks as may be proposed by the consultant and included in the requested scope of
services.
Request for,Proposal - 3
B.Review, evaluate and update existing water demand forecasts-Collect and compile
population and water demand data from available local and regional sources to understand
current water demand behaviors and forecast future demands for each City. Where appropriate
and as may be authorized by each City use new demand data for subsequent planning and
engineering tasks.
C. Evaluate water treatment alternatives—Based upon the conduct of the above tasks, identify
and evaluate the range of water treatment technologies and processes that could be implemented
to expand present treatment capacity and meet current and,pending regulatory water quality
requirements under two capacity scenarios, i.e., 32 MGD and 38 MGD. Identify and evaluate the
full range of planning, permitting, design, constructability and operations and maintenance issues
associated with each feasible treatment alternative. The effort expended for this task should be
sufficiently rigorous to allow the development of budget level estimates of capital and O&M
costs and an understanding of operations staffing and skill level needs.
D. Evaluate river intake alternatives—Use the information gained in the above tasks to evaluate.
alternatives for the City's river intake facility. Conduct the following sub-tasks.
✓ Hydraulically model and analyze the existing intake facility to determine maximum
sustained pumping capacity with current wet-well geometry. Use historical stream.flow
records or other sources of information to establish minimum river levels for worst case
analysis purposes
✓ Identify deficiencies in the existing intake facility relative to plans to expand pumping
capacity up to 32 MGD. Determine budget level costs associated with upgrades to
achieve 32 MGD pumping capacity
✓ Evaluate the full range of planning,permitting, design and construction issues associated
with constructing a new intake facility capable of diverting and pumping between 32 and
38 MGD at or very near the current intake site. Develop budget level costs for anew
intake facility
E. Evaluate transmission system alternatives—Evaluate the costs to augment existing
transmission capacity with parallel pipe lines against the costs for complete replacement of the
existing transmission mains. Identify a preferred alternative for meeting potential capacity needs
of up to 38 MGD for raw water piping and up to 46 MGD for finished water transmission piping.
Conduct routing analyses and constructability reviews to determine preferred routes and to
facilitate evaluation of land use and regulatory permitting in subsequent tasks.
F. Land use and regulatory permitting—Evaluate the full range of land use and regulatory
permitting requirements for tasks B., C., D and E. Sub-tasks will include:
✓ Meeting or interviewing staff from regulatory agencies at an appropriate stage in this
study effort to facilitate their understanding of the genesis of the project, its intent and
possible schedule. Agencies include but are not limited to ACOE, DEQ, DSL, NOAA
Fisheries, ODFW, USFW, Oregon Health Department, Cities of Gladstone, West Linn
and Lake Oswego, Clackamas County, Oregon State Marine Board, Oregon State Parks,
ODOT region 2A and others as may be appropriate
Request for Proposal-4
✓ Identifying costs associated with securing the necessary land use and regulatory approvals
as well as costs for conducting specific studies or assessments that can reasonably be
assumed to be required as part of the permit acquisition process. Such additional studies
or assessments might include Biological Assessments,Hydrologic,or hydraulic analysis;
geotechnical reconnaissance and reporting, attendance at public meetings, preparing land
use applications,water rights transfers, etc.
Deliverable: Prepare and submit six (6) copies of a technical memorandum documenting the
findings, conclusions and recommendations developed at the completion of tasks B, C, D, E and
F. Provide a table of contents and tabs for the various sections of the memorandum. Format the
memorandum for ease of use and understanding by non-technical stakeholders.
G. Conduct financial analysis—Using the information developed through completing the above
tasks, conduct a thorough financial analysis of the capital and operating costs for the preferred
alternatives for source of supply,water treatment and transmission systems. Subtasks will
include:
✓ Valuations of the depreciated replacement or"book value" of existing capital that would
remain in use for a joint water supply system
✓ Compilation of budget level capital costs associated with preferred alternatives identified
in the above tasks
✓ Development of operating and maintenance costs for preferred alternatives over a 207year
. period using a range of discount rates
✓ Identifying alternate scenarios for allocating existing and new capital and O&M costs to
Lake Oswego and Tigard based upon each agencies funding capacities, constraints and
forecasted rate of water demand growth through build out
✓ Identifying the rate implications of each allocation scenario on each agency
✓ Identifying financing options available for funding capital costs
H.Evaluate Organizational Structures—This task will require the consultant to research and
identify Oregon statutory and administrative rules governing the creation of new governmental
bodies and to identify and discuss the pros and cons of each possible forming mechanism. The
general structure, authority and operating characteristics of each possible governmental body
should be described and discussed. Potential administrative or operational challenges should be
vetted for each option identified.
I. Strategic outreach and communications plan—Prepare a proposed outline and schedule of
activities critical to a successful outreach and communications plan in support of a possible joint
water supply agency between Lake Oswego and Tigard. This plan should at a minimum include
discussion of the following:
Identifying stakeholders and developing templates for stakeholder specific messages
✓ Strategies for controlling the flow and content of information
✓ Means and methods to engender trust
✓ Developing the "message"
Request for Proposal - 5
Deliverable: Prepare and submit six (6) copies of a final report combining all technical
memoranda and task findings developed through the completion of all preceding tasks. The
report shall be submitted in a three-ring binder, with tabbed sections and an executive summary.
Printing shall be double-sided. Figures and tables shall use colored text or graphics where
appropriate to improve readibilty and understanding.
J. Tasks or Support Provided by City of Lake Oswego/Tigard Staff
1. Provide the consultant copies of all available, relevant utility"as-built" plans,
topographical maps, reports, studies etc.,related to the existing and relevant components of
water utility infrastructure.
2. Provide the consultant with a copy of the City's hydraulic model (MWSoft H2O Net)
including input data files.
3. Provide the consultant with access to each agencies rate models for rate forecasting as
needed.
4. Timely review and feedback on all technical memoranda,preliminary reports and
findings developed by the consultant-in the conduct of this study.,
PROPOSAL REQUIREMENTS
Consultants are encouraged to provide clear, concise proposals that contain only the information
required to respond to this proposal and the Requested Scope of Services. Each proposal shall
include the following information:
1. A detailed description of the consultant's approach to each major task element of the
project. This description should include a discussion on how essential personnel
assigned to any particulartask element will benefit the overall objectives of the project.
The description should also include specific examples of recent relevant work which
best demonstrates the consultant's qualifications to accomplish the objectives of each
task element for the benefit of the project
2. Based upon the preceding Scope of Services,provide a detailed project schedule, which
identifies critical paths and milestones for major task elements and the overall project.
Show interrelationships between tasks and key points where progress is dependant upon
client actions
3. Discuss in detail strategies your firm (team) would employ in an effort to secure permits
from Federal/State/local regulatory agencies as required. Identify any unique talents,
experience or insights that you feel increase the likelihood of-success in this regard
4. Discuss in detail your approach to developing a collaborative process that would
include,stakeholders in the communities of Lake Oswego and Tigard
5. Explain why the cities of Lake Oswego and Tigard would benefit from your services on
this project
Request for Proposal - 6
r
SUBMISSION OF PROPOSALS
Submit six (6) copies of the written technical proposal in a sealed envelope to the City of Lake
Oswego Engineering Division at City Hall.until 4:00 PM Pacific Standard Time on April 12,
2006. Proposals shall be addressed to:
Joel B. Komarek,P.E., City Engineer
"Proposal for an Analysis of a Joint Water Supply System—Lake Oswego and Tigard"
City of Lake Oswego
380 A Avenue
Lake Oswego, Oregon 97034
(503) 635-0270
EVALUATION OF PROPOSALS
The proposal selection committee will review and evaluate all technical proposals received based
upon the criteria discussed below. Proposals received after the close of the proposal period will
be considered non-responsive and will be returned unopened. Each evaluation criterion has been
assigned points based on its perceived value to the services requested.
Technical Proposal (100 point maximum)
A. Firm Qualifications: Past performance of the firm providing services based
upon scopes of work similar to that requested herein. Current workload and
capacity to commit qualified staff for the duration of this study effort. .(35
points).
B. Project Manager and Key Staff Qualifications: Specific experience of the
proposed Project Manager and key staff in successfully completing similar
studies and investigations. Discuss unique expertise and skills of staff that
will benefit the project. Discuss recent examples of how the proposed Project
Manager and key staff used such unique expertise and skills to deliver a work
product of exemplary quality under tight schedules. (30 points).
C. Project Management Plan: Describe the management plan proposed for the
conduct of the work requested herein. Key points may include the availability
of key personnel immediately and throughout the project, ability to control
project schedule and cost and internal quality control/quality assurance
procedures. (30 points).
D. Experience working with the City of Lake Oswego and Tigard. The City
desires to complete the bulk of this study effort by August 31, 2006. The
success of this study effort will depend in part on the consultant's experience
and knowledge of current water rights issues on the Clackamas River, the
utility systems of Lake Oswego and.Tigard,Federal,State and local land use
codes and the local political climate. In recognition of this, points will be
Request for Proposal - 7
1 '
awarded to proposing firms who have conducted engineering and planning
studies for Lake Oswego and Tigard. (5 points).
The selection committee will review all conforming technical proposals received in response to
this RFP, and based upon the above scoring develop a short list of three (3) firms. These three
firms may be invited to oral interviews, anticipated to be held April 20, 2006, if it is the
consensus of the committee that interviews are needed to better ascertain qualifications or the
consultant's understanding of the project requirements. However, the committee reserves the
right to forego oral interviews and enter into contract negotiations with the top-ranked consultant
firm,if in the committee's opinion there is a clear distinction in qualifications and project
understanding between the top-ranked proposal and the remaining two.
Contract Negotiations
The City will enter into contract negotiations with the top-ranked firm to confirm project
understandings, scope,project deliverables and fee. Should the City and the top ranked firm be
unable to successfully negotiate a contract, negotiations with the second ranked firm will be
initiated and so on until a contract is successfully negotiated between the City and one of the top
three ranked firms.
CONSULTANT SELECTION SCHEDULE
Item Date
Requests for Proposals March 17, 2006
Proposals due from Consultants April 12 2006
Consultant interviews (tentative) April 20, 2006
Select consultant April 24, 2006
Complete final scope and fee negotiations April,26, 2006
Award Consultant contract May 2, 2006
ADMINISTRATIVE INFORMATION
Joel Komarek is the City's Project Manager for this project. Please contact'Joel at 503.697.6588
with any inquiries regarding this RFP.
The selected firm will be expected to execute a professional services agreement with the City
containing the City's standard contract language and requirements concerning General Liability
and Professional Errors and Omissions insurance.
Attachments: City of Lake Oswego Professional Services Agreement
RIJOEL_KITIGARDIRFP_LO-Tigard supply plan study v71 15 2005.doc
Request for Proposal - 8