Resolution No. 08-75 CITY OF TIGARD, OREGON
TIGARD CITY COUNCIL
RESOLUTION NO. 0$- e
A RESOLUTION APPROVING THE FIRST AMENDMENT TO TIIE INTERGOVERNMENTAL
AGREEMENT REGARDING WATER SUPPLE'` FACILITIES, DESIGN, CONSTRUCTION, AND
OPERATION WITH THE CITY OF LAKE OSWEGO AND AUTHORIZING THE MAYOR TO
EXECUTE THE AMENDMENT
WHEREAS, in August 2008 the cities of Tigard and Labe Oswego entered into a water partnership known as
the Intergovernmental Agreement Regarding Water Supply Facilities,Design,Construction,and Operation;and
WHEREAS,when the agreement was executed, appraisals of real property involved in the partnership had not
been completed.,so T° `d's exact buy-in cosh were not finalized;and
WHEREAS, the appraisals have now been completed and an egrutable appraisal methodology established;and.
WHEREAS,the cost for Tigard to buy-in to Lake Oswego's existing infrastructure is $ ,820,557;and
WHEREAS,Lake Oswego has agreed to finance Tigard's buy-in costs undervery favorable terms and at a rate
that is considerably less than the City would pay through a commercial lender.
NOW,THEREFORE,BE IT RESOLVED by the Tigard City Council that:
SECTI0N 1: The Tigard City Council approves the First Amendment to the Intergoverntrtent--1 Agreement
Regarding Water Supply Facilities,, Design, Construction, and Operation Mbit A) and
authorizes the Mayor to execute the amendment: '
SECTION t This resolution is effective immediately upon passage.
PASSED: This � day of 2008.
Mayor-City of Tigard
ATTEST:
City Recorder:-City of Tigard
RESOLUTION NO. 08 7
Page 1
Exhibit A
FIRST AMENDMENT NDM[ENT TE GO +NTAL
AG +I'EENT 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 day of , 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 Fater 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 farther 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 anlow-it 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 PANTIES AGREE TO EXECUTE THIS FIRST
AMENDMENT AS FOLLOWS:
Section 1. Amendment of Exhibits l 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 (21 E24BD 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 surn 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 Ownershi
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 fi-om 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 I
and the contributing partner shall receive a credit for the asset value. If
the Initial Expansion is not constructed, Lake Oswego shall refund the
an-iount 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 docurnent
required by Lake Oswego to convey any interest Tigard may have in Lake-
Oswego
akeOswego 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, pennitting 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 Osweuo'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'`008 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, areement. In all other respects, the Agreement dated
August 6, 2008, is in frill force and effect except its may be specifically atriended by this
First Amendment.
IN WITNESS WHEREOF the Parties have dated and signed this Agreement.
CITY OF LAKE OSWEGO CITY OF TIGARD
Mayor Mayor
Dated Dated
Attest Attest
City Recorder City Recorder
Dated Dated
City Attorney City Attorney
Page-3 FIRST AMENDMENT T4 INTERGOVERNMENTAL AGREEMENT REGARDING WATER
SUPPLYFACILITIES,DESIGN, CONSTRUC 1ON AND OPERATION
1 iN!arom N t.ly na.Lake 0eve9c inch allnan.e:!}
2 Rcv58a�az::Intnka toot allncataa3
3 aero v. .eno-.s<aa ton
4 Hot.-T':astaaat 1'1 nn[,t.and
5 ltncer Trai-t pE.ant: 5 ruacsscna s 64uaA.enr (ane ailocat:adz
6«enloMed T osicn M.A. Inat e11nenea41
7 wki ge.geearuol e: r,nad la n rvair Pr-pni-ny)
8..-alv6.a Naen-.ro_r: ae-1. n 5 eq'd tnac..o,llnaatn�3.1
9.aanica Parep NL.n¢Son lent e3:1-cedl
10 Cnopntnz Syaeaox/aoft-
15 nuhP raj r*net
Exhibit 1
Existing Real Property,Supply Facility Components and Valuation
Cortant Year 'tOgtl Assumed Gacalation 616
Ma 24110 ENR CICi 8140:An ust 2800 ENR cot
'.lull -.: _..
Acqulsnlon Aequlsitlan Cri9lnai :2008 Today Anqulal6on Useful Lire cap-inflon
Allocation Assaf Onscrl.Ilan D.A.. Amourrl 6NRCCI CCi Amount In este ameunt Vsluc:Todn
.-.-
Water Traalmool plant Land 1,155.:, 0,362
4 :'>:Ptbnt `.0+'1 # $ $.3"707;; $ 006,078 Land $ $ 606,676
Suh Total. S: 83.,797 $ 605,676 $ $ 006;976
'Rmv Walgr Tran.smLssl8il 1269.: 8;362
3 ::RawWalorTiantnumMan Sr60119o`S $ : 8'30,137 5 3,1168,073 '160.:$ 1,510.962 S 2,372,060
3 P411allne E$spn5gnts 61.2011969 $ 2:,000: 5 144.060 16D;S 50:537 $ 88.430
Sub Taber $ 612,937 5. 4,013,640 $ 1.,573,120 S. 2,460,,521
plstdbutian Storage
7 R ak Property .fl726M680 S 11237 9,362 :$ Land:: # 5
VJ a b{r.9mVa;r .3(3611993 $, 1,y01,+�7 : 4,W .0,352 $ 2,635;3.10 too 5 650,035 5 1,970.505
Bub Total $ 1,281,427 $: 2,6.35,340 S 6S0;835 5 1,970.,605
Commuter SvslendS2 Mre
10 SCADA System tipflrade SFd471801`b.. 160,12.'04,63h, 8,362 $ 312:854 ::20 S 265,671 S 46,083
10 S...S 6afroove WwrQa 61'6011966 S '`33,400 6,056 0,262 S. 46,233 :20.;S 20.505 S 25,420
Sub Total 5. 214,222 $ 358,75T 1 266,478 $ 72,317
Ganarai Plant
1t tlt v 51801992 S .17,W0 :: 3.926:: 8262 $. 37.164 20:.$. 37,164 S
11 '.:.Va fides 601998 $ 24,600 :' 4.295 8,262 $ 45,7211 `:20 5 40,720 :5 -
it :..:VehhMPs 5,03971999,$ 282500 0,059.. 0,352. S. 28,242 ::'.26:.5 12.,731 $ 15,581.
Sub Total $ 81,500 $ 112.1.82 $ 56;622 S 15,551
L'#Ntd A Idiiaurx's JWy 2000 OW(tend QN1y with upwind 0JjuM,u0 l par pnrwi by amondmenl):
7 °:Waluga"41 71760 ;',1978 $ $ 1359,855;'.. Lefts 'S $ 1,350,505.
7l46o0coanendr.TLo008low i1 .$ U3,000 $ 1.826,018'<. Land 5 $ i,a28l318
7 iVacaiti Parre1.666acat Tolon 12098 It $ 342,491 Laea $ 5 342,401
4 4260 KAnftgaa Way`7086 low $ t : 2,343,796 Lood 5. - $. 2,343,706
4 <WTPPrQPwty;TL40I :1076 $ S 262,015 Lund :$ - 5. 262,015.
4 '424 '200 `.s .$ BAM 4$262,1$41 1.5x1 ':' $ - (5702.166)
443 W1DFTT,.1380 z $ 1 :. ($378.344)'. Land $ - (5378,344)
4 '.A$4 .,,.�$#±T6A4W:: 4040 $ : 110,088 :: ($376,6441 Laval :.3 (5378:344)
4 : rp7-a&4-et. tgot.-154&. 460P $ IflLm f$149,045 Lard S • (5149,64.5}
Clackatnae River Intake&Pump.Staila
':Claekamax
Alm snake Land :701667 $ 10,450 1,074 1 250,6,00 Lord:: S S 260,000
sanea m 913134069 S 121.960 1,200 0,302 S.. .003,700 60:S. :528,457 S 201,323
8 equ mord 8131}{1609 S 50,.026 1m'... 8,362 5 .354,908 40:$ 320"D :.$. 11.373
PtpByry and vataes filaonoso S 20,330 1,280', 8.362 S 173,093 :.:60 $. 07,076 $ :&6,967
:E1aarlea4J&CB'HVAC &+3411669 S 10,100 :' 1,289:. 8;352 S 60,002 :40 5' 65;307. $ 1,075
Meese Upprodta :..1680 S I 131,000 f. 6,5351 8,302: 5 167;547. ''.60 $. 78.198. ..5 09.35.0
I'Lonos :1000 5 40,000 3Z7 8,352. $ 103,310 :40 $ 72,331 $ 30.900
PaterA No 4 :2002 S 152,833 6,538: 8,352. S 196,750 ::40:.S. 20,513: $ 107.238
Intake Fah Seaaans -2002 $ 1,352,608 6,538: a,3352.. $ 1,720;654 20 S 510,9a8 $ 1.210.980'.
lalfbee and Vales ::1000 $ 10,000 3,237 f,352 $ 25,933 60 5 t2.055 $ 13,777
:.Paenieas.and HVAC ,.'1000 $ 21,000 :: 3,237 8,352: 'S .$4,248 40 S 37,674. :S 1$275.
Walar Tr 11m nl Planl
Ste Wank a3t1fiF60 5 185,915 1,2.39::. 0,362: S 1,027,303. 60 S 607;805 $. 357,557
;Carml,ue and 6 s 6130tt17Et) S 478,730 11208 81302: S. 3,167.212 so $ 2,054;700 $ 1,106,424
Pumps sornfl969 $ 4,197 1,269: 1,362. 5 27,856 :,.40;.S 26,864 S 891
'Sledirkal Equipment SWIS60 $ : 125,031 : 1,265 0,302 5 079.016 40 S 009,060 S 20,745
Pistol and WNW 073at1869 $ 191,065 1,209 0.362 $ 4.204401 80 S 921,912 :S 342,588
Elazutca%I&C,HVAC 6rims69 5 101,595 1,205 8,302 5.. t,264.481 40'.5 ./.,232,869 S 31,612
Flow Media-and Undelebauts &XVIS68 1,269: .8,382. .5 ;:40 S - $ -
Chemicsl.4dd#6on 6+3018569 1,269; .8,362. $. - 40':$ • S: -
:Ga&We5 a*(YIvr8 1,269'.. 8,362 5 - :.6o S S
;SaUdiomubulng Fategles 07304969 1,268: .8,362 5 - ;.80 5: $
':Sttaae6aflasga 8736?1989 $ 11,893 : 11269: :8,362 5: 79,027' 120:$ 70,027 S
Enpinearing 8(39{1068 1.2219 0,3025 60 5 5
Expaitlan 'lose $ 80,221 : 3,237 0,362 5 207,231 68 S 95,705 S 110,523
SBA Want 1680 S 510,000 5,020 .8,392 5 720,375.. 60 s 120,003: S 6O7,313'.
;Expansion .:1608 5 :?32,224 3,237 8.362.. 3 800.003 08 S 401,765 5 459,695
:SelamleflAA/Coaa ;2000 $ 44492 6,221. 8,302 5 070;050 66 $ 89,341 S 500,710:.
'on :.1088 $ 86,3$1 '. 3,237 a,362 $.. 223,170. ,.60 S 104.146 S: 119,024
Pump.and Equipment,. :1089 $ 507,920 6,059 8,362 5.. 7001905 ,40::3 157.722 S 543.203.
11900 $' 67,879 31237 0,362 5- 175:349 60':.$ 01,029 $ 93,510'
;htachanicei :':2001 S 64i,12S 6,343 0,392. 5. 045,159 40 $ 147,910 $ 697,208.
Espansien 1060 S '.: 387,006 ': 3,237 8,362 5- 924;563 68 S 431,463:. S. 403.1x'
Espa.
18ab $ 178,954 3,237" &362 5 462,284 : 66 $. 215,732 S 246,55:6.
Erecuelm .,.1005 S 86,247. 6.068 01362 3: 96:427 :40 S 20,571 S. 70:056
E1totr#cal 81natavmarnatian: :2001 $ 868,5'-4 6,343,E 0,292 5 746,540. 40 $ 531.168 S 018,370
':Sspaxsston 1050'S 83,923 1237: 0,362 S 216,765. go S 101,171 S. 115,624
:NSlem801nr Aura6Wa#k .2001 5 416,856, : 6,343'. a,38a2. '5 549,592 40 $. 60,177 :i 451405.
.iladurn Hypachlart#e System .:1968 5 282,763 3,620 :8,362 5 390,445 ::40 $ 09,601 5. 299,554
:Uma Satm9rm.ad Spasm. 1600'5 1,000,155 5,020 8,362 5 1.412.723 ::.40 $ 353,101 $: 1,059,542
C,02 savorl)F'aed Syatan 1::1808 6 230,357 :. 8,020; 0,352 $: 330.070 40 5 04,170 $ 252,509
Alum or uega road Systam 1068'S: 64800. 5,620 01352 5 730;455 40.$ 194.614 $ 553,841
Clear Vann Eagle ISM 5 107,272 5,622 8;302 5 159,585 40 $ 47.875 S ti 1,709.
iS 7t g Lagoon; 0;1567 5 1,084,510 61082( 0,362 5 1.400.739 40 5 336,766. $ 1,159,972
F'"- loan $ 45,684 8,237; 13.342 $ 117,692 60 $ 55,049. $ 62,913
:.En6ineenng ,.:1050 $ 31t,4W 51020: 8,362. $ 419,037 00:5 73,323 S 305,614
Englilaetinif 1569.0 i20,0d6 5.055; 0,3$2 S 165,011 80 S 24.042 $ 140,776
:Enguteeung :2000 3� 126,653 6,221 0,362 S 170,242. 60 '$ 22,696 :$. t47,543:
;Enein@nr3p0 , 2001 1 ZP7,000w 6,343 0,362 $ 437,077 :,::40 $. 51,002 $ 385,615
$.. 0;731,805 -S. 11704.604
Finished waterTraasmiu.5lo fl
244nag FlniaaedWator MOA 913011967 $ 473,456 1,269::. 0,362 5.. 3,119,610 ..960..$ 1:216.726 S. 1,903.004
:L'7TPTmnamfa6k#ll Siam FI3071CNl7 S =2,815 1.269.. ..6,362 5. 280,029 :.i!!8 $ 109,52=1 $ x7#.300
Men Stwri,mn Mtn.in"BlaS 613011970$ 534,142 1,381 0,262 5. 3,234,247: 108..$ 1,228.01$ $ 7.009.233
;Upper Cor,4700 Mem 241nan NOOlin 8/30fi98S�$ 575,39a 4,185 8,362 5: 1,146,955 :106,:$ 20300 $. 093,159:.
,.calhgft Flpt4dp#15ottom:: 4H7e'060 $ 484,697 0,22'"#. .8,362 5: 653,391. 40.S 13078 $ 622,713..
.Sub Total &: 24,325,904. $. 38,086,415 S 13,821.751 $ 35.099,557
Catatalalad JAIA3 Gurrnn4
AaaglsinonYAlon 2003 alis Dews.[nlla S Vnh+a
TOTALASSETS >$ 36,578,997 $ 45,633,040 $ 16,535,004 $ 41,001,130
EXHIBIT
DETERMINATION OF TIGARD BUY-IN
Net Tigard
Original Cost Reproduction Allocation Tigard Share
Asset Tax Map Tax Lot Clackamas Co.Deed Cost No
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 S 10,450 $ 260,000 14/38 S 95,789
Computer System/Soft-ware $ 214,222 S 72,311 14/38 $ 26,641
Finisbed Water Transmission $ 2,111,711 $ 5,440,227 0,00% $ -
General Plant S 61,500 S 15,561 14/38 $ 5,733
Raw Water Transmission $ 612,137 S 2,460,521 14/38 $ 906,508
Waluga Reservoir $ 1,281,427 $ 1,960,196 0,00% $ -
Waluga Reservoir:Land
Reservoir Property 2 IE 07 AD 03100 Doe 72-06414 n1a $ 342,491 14/38 $ 126,181
WalugaRes#l* 2 1E 07AD 00700 Doe 76-36977 n/a S 1,359,585 14/38 S 500,900
4800 Carmen Dr* 2 IE 07AD 00900 Doc 92-063461 $ 323,300 S 913,309 14/38 S 336,482
Vacant Parcel*' 2 1E 07AD 01000 Doe 92-063461 $ 323,300 S 913,309 14/38 $ 336,482
Water Treatment Plant $ 9,731,005 S 11,704,894 0.00%
Water Treatment Plant Land
4260 Kenthorpe Way-parcel 1 2 IE 24BD 00300 13k 688,Pg 581 n/a $ 2,343,796 14/38 S 863,504
4260 Kenthorpe Way-parcel 2* 2 1E 24BD 00401 Doc 79-35248 n/a $ 262,815 14138 $ 96,827
1!22 _4#456pip— 8l.fl".".""ilgHl#", ''..,.,t== J MUSIX'U" sM W"41, ";94 4V-27 54>
=9an *3#5"699 15 8###### 481957952
.94 494L�_ _
�Mg A*441 0572 4-- e-R"7
Totals less 25106-108190 17,087,785 31,169,368 $ 2,820,558
"Net nproduction cost for these propcilics am based an an appraisal conducted by Integra Realty Resources(July 2008). erectly Liquidation Values for pattelsuot stricken were adjusted upward by amendment)
Allocation%based on 14 mgd of IR rnud capacity allocated to Tigard.
Net Reproduction Cost includes escalation by FNR less depreciation.
EXHIBIT -7-
ALLOCATION OF SYSTEM IMPROVEMENT COSTS TO THE PARTIES
Cost of Lake 0sweg4 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 rngd Expansion n/a 100% n/a 0.00% $ -
Raw Water Intake and $ 4,440,000 24/38 $ 2,804,210 14/38 $ 1,635,789
Pump Station
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 1.0/2.5 $ 1,604,000 1.5/2.5 $ 2,406,000
Bonita Road Pumping
Station $ 1,700,000 0.00% $ - 100.00% $ 1,700,000
I I
Total Costs $ 128,740,000 1 42.54% $ 54,772,366 57,46% $ 73,967,634
Project costs arc presented in 2006 dollars,Actual cost will depend on project start and completion dales.
Second(6 mgd)expansion is currently assigned to Lake Oswcro. Contract provides for potential reallocation by agreement.