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City Council Packet - 06/24/1993 w.., , CITY OF TIGARD OREGON :,rt4XYy'rn 46~,+,, b . ~ f~l".#i J ,R` Fl { ~..1•, a>i./: i~ >yokiQ`-. .~',~i rr ~&,`>k q AGENDA 'y;~C•,+^.<: ,':c.Q.{f}5 j.. S:'.;i2: fE.:.~J/~i{• T/ y . 0110 :?:?l$...:!i>1....fz>rv::>::. i.:.>.:#:.f!i+i:.:,~ ir. '::>.rAf ~:x:..:•`f",:~''>Uc>i:.y+f,:> ' of . . tl z • w' :x NOTE - REVISED MEETING LOCATION 1. SPECIAL MEETING (7 PM) 1.1 Call to Order 1.2 Roll Call A special meeting has been called, by common consent of the Tigard City Council, for the purposes listed below: 2. EXECUTIVE SESSION: The Tigard City Council will go into Executive Session under the provisions of ORS 192.660 (1) (h) to discuss current and pending litigation issues. 3. COUNCIL DISCUSSION WITH REPRESENTATIVES FROM THE CITY OF ICING CITY AND THE CITY OF DURHAM ON THE INTERIM GOVERNMENTAL AGREEMENT FOR CREATION OF A JOINT WATER AGENCY • City Administrator 4. CONSIDERATION OF INTERIM GOVERNMENTAL AGREEMENT FOR CREATION OF A JOINT WATER AGENCY - ORDINANCE NO. 93- 0 City Administrator 5. ADJOURNMENT ~vsf~ TS~.rc~ COUNCIL AGENDA - JUNE 24, 1993 - PAGE 1 IAA(.( (da.3(~c3 3 ~ p• m . Council Agenda Item T I G A R D C I T Y C O U N C I L SPECIAL MEETING MINUTES - JUNE 24, 1993 • Meeting was called to order at 7:08 p.m. by Mayor Edwards. 1. ROLL CALL Council Present: Mayor Jerry Edwards; Councilors Judy Fessler, Wendi Conover Hawley, Paul Hunt, and John Schwartz. Staff Present: Patrick Reilly, City Administrator; Liz Newton, Community Relations Coordinator; Tim Ramis, Legal Counsel; and John Acker, Associate Planner. Executive Session convened at 7:15. 2. EXECUTIVE SESSION: The Tigard City Council went into Executive session under the provisions of ORS 192.660 (1) (h) to discuss current and pending litigation issues. Executive session adjourned at 8:14 p.m. Special Meeting reconvened at 8:16 p.m. 3. CONSIDERATION OF REQUEST TO AFFIRM TIGARD WATER DISTRICT ADMINISTRATOR'S CONTRACT Mayor Edwards stated that the Council had discussed the Water District's request to affirm the District Administrator's Employment contract in Executive Session and that Council could not accept the contract as written. Mayor further explained that the City's Legal Counsel had attempted to renegotiate the contract with the District's Administrator and that negotiations were refused. The Mayor asked Legal Council to summarize the issue. Tim Ramis summarized the request contained in correspondence form the Water District. Essentially, the contract with the Administrator of the District requires that the cities of Tigard, King City, and Durham, as successor public bodies party to a 190 agreement with the District, affirm the Administrator's contract prior to the effective date of the Joint Water Agency (July 1, 1993). If the Contract is not affirmed, it is terminated. The two points of concern are; that the contract is perpetual except at the discretion of the Administrator and; if the contract is terminated, the Administrator is entitled to a full year of severance pay. CITY COUNCIL MEETING MINUTES - June 24, 1993 - PAGE 1 Motion by Councilor Hunt, seconded by Councilor Fessler, not to affirm the Tigard Water District Administrator's Employment contract. The motion was approved by a unanimous vote of Council, 5-0. (Mayor Edwards and Councilors Fessler, Hawley, Hunt, and Schwartz voted "yes.") Councilor Hawley explained that the Administrator's Agreement was unacceptable to her because, in her opinion, public money could be better spent and also there is no term to the agreement, with no opportunity to renegotiate. Councilor Schwartz stressed that, in his opinion, one year of severance pay is excessive. More important, the perpetual term of the contract prohibits the governing body from entering into renegotiations unless the Administrator is agreeable. Councilor Fessler expressed her concurrence with statements made by Councilors Hawley and Schwartz. 4. CONSIDERATION OF INTERIM GOVERNMENTAL AGREEMENT FOR CREATION OF A JOINT WATER AGENCY - ORDINANCE NO. 93 - 16 Mayor announced adjustment in agenda order, agenda item #4 will be considered before item #3. Legal Counsel read the ordinance by title. Councilor Scwartz explained that the agreement provides for interim governance of the water supply system and affects customers previously served by the Tigard Water District in the cities of Tigard, Durham, King City and unincorporated Washington County. Legal Counsel clarified that Paragraph 9 of the agreement regarding Employee Benefits and Personnel does not apply to the current Administrator of the Tigard Water District. An amendment reflecting that interpretation is not necessary. Legal Counsel for the Tigard Water District informed City's Legal Counsel that the District will provide a letter acknowledging the interpretation. ORDINANCE NO. 93-16 AN ORDINANCE OF THE CITY COUNCIL, CITY OF TIGARD, OREGON, RATIFYING THE CREATION OF A JOINT WATER AGENCY AS SPECIFIED IN THE INTERIM INTERGOVERNMENTAL AGREEMENT APPROVED BY THE CITY COUNCIL ON JUNE 24, 1993 AND DECLARING AN EMERGENCY. CITY COUNCIL MEETING MINUTES - June 24, 1993 - PAGE 2 Motion by Councilor Schwartz, seconded by Councilor Hunt, to adopt Ordinance No. 93-16. The motion passed unanimously, (5-0). (Mayor Edwards, Councilors Fessler, Hunt, Hawley, and Schwartz voted "yes.") 5. COUNCIL DISCUSSION WITH REPRESENTATIVES FROM THE CITY OF KING CITY AND THE CITY OF DURHAM ON THE INTERIM GOVERNMENTAL AGREEMENT FOR CREATION OF A JOINT WATER AGENCY. Mayor Edwards invited the representatives from King City and Durham City Councils, and Bev Froude from the unincorporated area to the table to participate in the discussion. Councilor Hunt stated that he had suggested and requested a meeting to see where the Council wants to go regarding distribution of water. He emphasized that the views he would present are his personal views and have not been discussed or approved by the other members of Council. Councilor Hunt stressed that any criticisms he offered are not intended to reflect personally on members of the Water District Board. Councilor Hunt made remarks on his position about how the City of Tigard should proceed regarding the City of Tigard establishing a department to handle water distribution. He now supports the creation of a department because of substantial savings to the taxpayer. (See handout dated 6/24/93 on file with Council packet.) Mayor Edwards related some of the history over the last two years regarding water service delivery, including discussions by the Blue Ribbon Task Force. He noted that it was important to him when, embarking upon the joint water agency, to consider the best interests of the people and employees within the entire structure. Other important considerations are efficiency, cost, and source. He stated that he would need more information on the impacts on the City's budget and staffing before he could support the City establishing a water department. Councilor Hawley questioned whether the Joint Water Board could create the same efficiencies raised by Councilor Hunt. City Administrator Reilly answered that it was possible to a degree, but it would be more difficult. Legal Counsel concurred, based on his experience with both 190 agencies and municipalities with water departments. Councilor Hawley agrees that certain efficiencies would occur if water service was a department of the City. She noted that she was involved in discussions about the issue as a member of the Mayor's Blue Ribbon Task Force and that there were very logical reasons for pursuing this course. She concluded that she saw no compelling reason to change direction at this time. CITY COUNCIL MEETING MINUTES - June 24, 1993 - PAGE 3 Councilor Schwartz noted that the previous City Council recognized that the City could provide water service less expensively, as a department of the City. The previous _ Council had decided to pursue the 190 arrangement to keep the district intact, and to include the cities of Durham and King City. Robert Tydeman, Durham City Councilor, noted if water service was provided out of a Department in the City of Tigard, that Durham would have no choice but to contract with the City of Tigard for water. He also questioned how realistic the amount of estimated savings to taxpayers. Lynda Jenkins, King City Mayor, stated that her preference would have been to consider providing water service through a department of the City of Tigard as an alternative from the beginning of the process. Her concern is for the citizens she represents and what will benefit them over the long term. Councilor Fessler commented that she supports giving the Joint Water Agency the opportunity to work through the issues. She expressed frustration that the process is moving so slowly. Councilor Hawley stated, for the record, that she does not see the Joint Water Agency as a stepping stone to something else. There was discussion and general agreement that the employees of the Water District should not have their job duties impacted by the change in governance. Bev Froude, 12200 SW Bull Mountain Road, Tigard Oregon, 97224, commented that she believed that everyone was working toward one goal. She is a little discouraged that we are not farther along in the process but that it is important to move to stage two. She is opposed to changing direction. John Greene, King City Councilor, asked if the estimated savings anticipated by providing water through a city department would be enough to offset the 10% rate increase approved by the district. He also questioned if water revenue could be a detour around Measure 5; if revenues collected for water service could be transferred to other funds if water service was a city department. Legal Counsel responded that fund transfers of fees collected for water service to other accounts is prohibited by law. Barbara Stilson, King City Council President commented that three cities, regardless of the size, have more clout than one city, regardless of the size and the joint water agency should proceed on course for six months. CITY COUNCIL MEETING MINUTES - June 24, 1993 - PAGE 4 j I ' i f Consensus of the group was to proceed with the Joint Water Agency under the terms of the 190 agreement. 6. ADJOURNMENT: 9:35 p.m. i Attest: Elizabe h Ne o ,JDeputy C y Recorder Mayor, ity o Tigard Date: f t h:\recorder\ccm\ccm0624.93 CITY COUNCIL MEETING MINUTES - June 24, 1993 - PAGE 5 . From: FINANCE/CATHY Subject: SPECIAL COUNCIL MEETING To: CATHY klo: •#EVERYONE ce: : 23 Jun 93 11:45:06 THERE WILL BE A SPECIAL COUNCIL MEETING THURSDAY, JUNE 24, 1993, 7 PM IN THE TOWN HALL AND TOWN HALL CONFERENCE ROOM. IF ANYONE HAS QUESTIONS ABOUT THE MEETING, PLEASE HAVE THEM CONTACT ME, LIZ OR JO. EXTRA AGENDAS ARE IN THE LOBBY. THANKS, CATHY IN ON From:. Self <CATHY> To: #EVERYONE Subject: CORRECTION ` e: 23 Jun 93 18:39:07 BECAUSE THE TOWN HALL IS SCHEDULED FOR ANOTHER USE THURSDAY EVENING, JUNE 24, THE SPECIAL COUNCIL MEETING HAS BEEN MOVED TO THE SENIOR CENTER, 8815 SW OIMARA STREET (7 P.M.)... REVISED AGENDAS (WITH NEW MEETING PLACE) ARE IN THE LOBBY. THANKS, CATHY ( CITY OF TIGARD, OREGON AFFIDAVIT OF NOTIFICATION In the matter of the proposed -5,02` a I L oLL yi c < yo? ~ a _ (p l a U lc?3 STATE OF OREGON fln-e-eA 'l p let C 02 County of Washington )SS 40 bg City of Tigard ) I, CG1,-r,Q,r! he hil , being first duly sworn, on oath, depose and say: That I notified the following persons bphone or personal contact of the Notice of Special Meeting for the Council Meeting of !_P l a~~ 3 , a copy of said written notice being hereto attached and by reference made a part hereof on the r day of K13-- CONTACT METHOD: PHONE PERSONAL DATE TIME Tigard Times Reporter at 684-0360 Name: Donna. SGhrrmid* x Co~a31G3 a~ 30 pm. Cpfsy - Fg34 Oregonian Reporter at 292.8964 ~or 639.9U7 Name--Rob-in 1-[^(.tAvj.j_ X a'05 prin. King City egal Courie at 639-5414 /llvtr--; A ISa Posr6d i 11 G 1~1 444V CL Name: 01k4-54e Cd-oars or0~r.~0. e G' Nat t ma-in E+rA_+,C.P, 2 j Z) A (0/D3143 -mow, . ono v n e- "a L S LL s -2w, seh~ •t wv2 c0~~ Subscribed and sworn to before me this day of ~ , 195' 3 U OFFJ,^IAL 5~AL M. JOANN HAYES NOTARY PUBLIC-OREGON Notary P b 'c for Oregon l COMMISSION NO.005513 fly COMMISSION EXPIRES MAY 5. 1995 My Commission Expires: I t IogiMcathy,aflnot { CITY OF TIGARD, OREGON AFFIDAVIT OF POSTING In the Matter of the Proposed STATE OF OREGON ) County of Washington ) ss. City of Tigard ) I, 4~ijl iOAAW/~ 1A begin first duly sworn, on oath, depose and say: That I posted in the following public and conspicuous places, a copy of Ordinance Number (s) which were adopted at the Council Meeting dated L copy(s) of said ordinance(s) being hereto attached and by reference made a part hereof, on the day of 1. Tigard Civic Center, 13125 SW Hall Blvd., Tigard, Oregon 2. West One Bank, 12260 SW Main Street, Tigard, Oregon 3. Safeway Store, Tigard Plaza, SW Hall Blvd., Tigard, Oregon 4. Albertson's Store, Corner of Pacific Hwy. (State Hwy. 99) and SW Durham Road, Tigard, Oregon i Subscribed and sworn to before me this . G day of 19 L(.b2.Q 1,~• OFFICIAL SEAL CONNIE MARTIN NOTARY PUBLIC . OREGON Notary Public for Oregon COMMISSION No. M5877 MY COMMISSION EXPIRES JUNE 4,1996 My Commission Expires: Iogin\jo\affpost ;j CITY OF TIGARD, OREGON ORDINANCE NO. 93- /p AN ORDINANCE OF THE CITY COUNCIL, CITY OF TIGARD, OREGON, RATIFYING THE CREATION OF A JOINT WATER AGENCY AS SPECIFIED IN THE INTERIM INTERGOVERNMENTAL AGREEMENT APPROVED BY THE CITY COUNCIL ON JUNE 24, 1993 AND DECLARING AN EMERGENCY WHEREAS, the Tigard City Council, at a Special City Council meeting held June 24, 1993, approved an Interim Intergovernmental Agreement (Agreement) between the Tigard Water District, City of Durham, City of King City and the City of Tigard; and WHEREAS, the effective date of said Agreement is July 1, 1993; and WHEREAS, the Agreement specifies that the Tigard City Council as party to said Agreement must ratify the creation of the Agency prior to the effective date by Ordinance. THE CITY OF TIGARD ORDAINS AS FOLLOWS: SECTION 1: Conditions of Page 5, Section 11 of said Agreement are fulfilled by the attachment of said Agreement to this Ordinance, marked "Exhibit All and, by reference, is incorporated herein. SECTION 2: Said Agreement declares the intent of the City of Tigard to create the Agency; specifies the effective date of said Agreement; sets forth the public purposes for which { the Agency is created; and describes the powers, duties and functions of the Agency. SECTION 3: An emergency is hereby declared to exist inasmuch as it is necessary for the health, safety, and welfare of the City that this ordinance be enacted as soon as possible, therefore, this ordinance shall become effective upon its signing by the appropriate authority. PASSED: By (/M0AD vote of all Council members present fter being read by number and title only, this day of , 1993. Eliz h , eput City Recorder APPROVED: This day of , 1993. rald R. wards, Mayor App oved as o f tQ: nen r, 2 - 4A A- Ci i Attorney Date: h:\login\ by\iga.wtr ORDINANCE No.-93- /1( Page 1 E~ehl INTERIM INTERGOVERNMENTAL AGREEMENT f FOR CREATION OF A JOINT WATER AGENCY ` BETWEEN: TIGARD WATER DISTRICT, (the "District") OREGON .AND: CITY OF TIGARD, OREGON ("Tigard") AND: CITY OF DURHAM, OREGON ("Durham") AND: CITY OF KING CITY, OREGON ("King City") Recitals: A. The District is a domestic water supply district existing under ORS 264. The District provides domestic water service to residences and business located in Tigard, Durham, King City and certain unincorporated areas of Washington County. B. Tigard, Durham and King City (collectively, the "Cities") have enacted ordinances pursuant to ORS 222, effective July 1, 1993, withdrawing their respective territories from the District (the "Withdrawal"). C. Tigard, Durham, King City and the District are currently evaluating the most efficient long-term structure for providing domestic water service and wish to continue this evaluation after July 1, 1993. 'Pending completion of this evaluation, Tigard, Durham, King City and the District desire to provide an interim form of governance for the provision of water service. D. To provide interim governance of the water supply system, Tigard, Durham, King City, and the District (individually, a "Party" or collectively, the "Parties") desire to form a joint water agency (the "Agency") pursuant to ORS 190.003 et sect and.this Intergovernmental Agreement ("Agreement"), to provide domestic water service for a period of six months, effective July 1, 1993, to businesses and residences currently.served by the District and to ensure that such businesses and residences receive equitable service regardless of where they are located. Agreements: The parties therefore agree as follows: INTERGOVERNMENTAL AGREEMENT - PAGE 1 f:\79\790026\2\intr90v9.agt 6/19/93 2 3:00am z wc~ 1. Purpose. The purpose of the Agency is to deliver supplies of ( domestic water to residences and businesses within the boundaries of the Agency. 2. Term. The term of the Agreement shall be July 1, 1993 through December 31, 1993, unless sooner terminated by the unanimous agreement of the Parties. This Agreement may *be renewed by unanimous agreement of the parties. Further, the parties agree that they shall produce a draft final agreement within 60 days of the effective date of this Agreement. 3. Boundaries. The initial boundaries pf the Agency shall be the same as the boundaries of the District existing on June 30, 1993. 4. Governance. A. Composition of Board of Directors. The Agency shall be governed by a seven (7) member Board of Directors (the "Board") appointed by, responsible to and acting on behalf of Tigard, Durham, King City and the District. Each of the Parties shall appoint the following number of directors to the Board: Tigard 4 Directors Durham 1 Director King City 1 Director District 1 Director The directors may be private citizens, elected officials or appointed officials of the Party making the appointment. Each director shall serve at the pleasure of the Party appointing that director. No more than two of the appointments made by Tigard shall be appointed officials of the City of Tigard. Two of the Directors appointed by Tigard shall be selected from the members of the Board of the District serving as of June 15, 1993. The Board shall have a Chair and a Vice-Chair who shall be selected by a vote of the members of the Board in accordance with subsection C. of this section. B. Terms of the Directors. The directors shall serve a term from July 1, 1993 through December 31, 1993. C. Quorum/Votes. A quorum of the Board shall be five (5) directors. All actions of the Board shall require five votes. D. Powers of the Board of Directors. On behalf of the Agency the Board shall have all powers, rights and duties relating to the Purpose of the Agency that are vested by law in each of the Parties to this Agreement, and their officers and agencies. The Board shall also have the power to adopt all rules necessary to carry out the powers and duties of the Agency under this Agreement. INTERGOVERNMENTAL AGREEMENT - PAGE 2 f:\79\790026\2\intrgov9.a9t 6/18/93 a 3:00am 5. Asset Ownershin/Water Rates/Revenues. A. Generally. If, during, the term of this Agreement, any assets (both real and personal property) of the District are received by Tigard, Durham and King City from the District as a result of the Withdrawal, those assets shall'be contributed to and utilized by the Agency for Agency operations. The District shall also contribute its property to the Agency for Agency operations. B. Division of Assets. Each Party acknowledges the rights of the other Parties to a division of assets pursuant to ORS 222.540. The Parties desire to avoid such a division and agree not to seek such a division during the term of this Agreement. C. Use of Assets/Revenues for Non-Water Purposes. The assets and revenues of the Agency shall not be used for non-water related purposes. • (i) Revenues may not be utilized for the general fund purposes of any Party to this Agreement. . Water rate payers shall not be required by the Agency or any Party to this Agreement to pay a franchise fee. or other assessment. (ii) The restriction set forth in this section shall be sufficiently flexible to permit consolidation of some functions, (e.g. functions related to water and sewer service) to achieve efficiencies. D. Uniform Rates. The rates charged by the Agency for providing water service to residences and businesses shall be uniform within the boundaries of the Agency. Notwithstanding the foregoing, the Agency may impose higher rates for providing water service to residences and businesses when the cost of providing such service is greater due to unusual circumstances, including but not limited-to additional costs to pump water uphill to reach customers. Any higher rates imposed for providing water service shall be limited to covering the actual additional costs of providing such service. E. Use and Location of Assets. The assets of the Agency shall be used to ensure a uniform level and quality of service for all residences and businesses within the boundaries of the Agency. Consistent with sound operating practices, all newly acquired fixed assets of the Agency shall be equitably located. within the boundaries of each of the Parties. Notwithstanding the foregoing, asses shall be placed in the location which will produce the greatest efficiency and highest quality of service for the residences and businesses served by the Agency. Furthermore, nothing in this Agreement shall preclude placing the Agency's fixed 'assets in a location outside the boundaries of the Agency, provided INTERGOVERNMENTAL AGREEMENT PAGE 3 f:\79%79002612\intrgov9.agt • 6/18/93 2 3:00am that such a location results in greater efficiency and quality of service than any other location within the boundaries of the Agency. 6. Agency Budget. The expenses and revenues of the Agency shall be budgeted and accounted for as provided by Local Budget Law. 7. ' Apportionment of Debt. The debts, liabilities and obligations of *the Agency incurred during the term of this Agreement shall be, jointly and severally, the debts, liabilities and obligations of the Parties to this Agreement. 8. Indebtedness of the District. A. Changes in Tax Coordination. The Withdrawal of the Cities results,in changes in tax coordination with respect'to the outstanding general obligation indebtedness and the liabilities of the District. The-Parties shall within 90 days of the effective date of this Agreement determine their respective share of the indebtedness and liabilities and shall reach agreement among themselves and with the Washington County Assessor for continued payments on such indebtedness and liabilities. B. The Parties have previously determined that assumption of their respective portions of the District's outstanding bonded indebtedness will not bring the total of their individual obligations above any Constitutional or statutory debt limitation applicable to such Parties. 9. Employee .Benefits/ Personnel. All employees of the District shall become employees of the Agency. The Agency shall accept such employees with all existing benefits and salary, including, but not limited to, health, retirement, disability insurance, wages, vacation and compensatory time. Nothing in this subsection is intended to limit the Agency's authority to alter benefits or salary except as such authority is otherwise limited by this Agreement or by the provisions of ORS 236.605 to 236.650. If, during the term of this Agreement, the Agency proposes to lay off transferred employees of the District, such employees shall be entitled to a minimum of six (6) months advance written notice before the effective date of the layoff. 10. Expenditures. The Parties acknowledge that the withdrawals by _ Tigard, King City and Durham will significantly impact the operations of the District. During the term of this Agreement, the Parties desire to maintain the District as a viable unit of government. Accordingly, the Parties agree that the Agency will fund all reasonable and necessary expenses of the District and shall provide such staff assistance as is reasonably necessary. INTERGOVERNMENTAL AGREEMENT - PAGE 4 f:\79\790026\2Vntrgov9.agt 6/18/93 2 3:00am i 11. Ordinance Ratifying this Agreement. Prior to the effective t date of this Agreement, each of the Parties shall enact an ordinance ratifying the creation of the Agency. The ordinance shall declare that it is the intent of the governing body of the Party enacting the ordinance to create the Agency. by this Agreement; specify the effective date of this Agreement; set forth the public purposes for which the Agency is created; and describe the powers, duties and functions of the Agency. Not later than thirty (30) days after the effective date of this Agreement the Parties shall file with the Secretary of State copies of the ordinances together with a statement containing the name of the Agency, the Parties to this Agreement, the purpose of this Agreement and the effective date of this Agreement. 12. Effective Date. The effective date of this Agreement is July 1, 1993. DATED this day of , 19 TIGARD WATER DISTRICT, OREGON By: Attest: CITY OF TIGARD, OREGON By: Attest: CITY OF DURHAM, OREGON By: Attest: CITY OF KING CITY, OREGON By: Attest: INTERGOVERNMENTAL AGREEMENT - PAGE 5 f:\79\790026\2\intrgov9.agt 6/18/93 al 3:00am Tigard City Council meeting 6/24/93 This meeting was called at my suggestion and request and I have therefore volunteered to start the discussion. The views I will be expressing are my personal views and are meant for a starting point for discussion not only for the Tigard City Council but also with the other affected agencies. I feel Tigard City Council has reacting not acting on water board policies. Bad relations has developed between the Tigard Water Board and the city of Tigard. I believe much of this is due to an honest difference of opinion. Although some of my remarks may seen critical of the Tigard Water Board members this is not my intent. I have no question that Tigard Water board members'are as dedicated and their intentions are as good as those of the city council. I do disagree with many decisions and actions of the Tigard Water Board. I am sure they do not agree with many things the Tigard City Council does. I believe it is time to forget what has happened and concentrate on where we want to go and how we get there. I was not on the city council when the original discussion of the water district was initiated. Shortly after I came on the city council there was limited discussion of: r 1. a joint water district 2. Tigard forming a city department to distribute water within the city. I believe, mostly for political reasons and the appearance of a "Power Grab", negotiations have proceeded on the premises there would be a joint water district. In my opinion many of the decisions that have been made have been the results of actions of the Tigard Water Board has made. I have changed my thinking of how the City of Tigard should proceed. If my thinking and suggestions are considered by the council, they will directly affect Durham, King City, and the unincorporated area. This is why the Tigard City Council has invited member of these agencies to participate in this discussion. Originally I was opposed to the city of Tigard establishing a department to handle distribution of water within the city. My primary objection was the way this action may be viewed by the residents. As negotiations have proceeded actions the Tigard Water Board have taken has caused me to look more closely at the two possibly choices. It is now my opinion that the savings the taxpayer will receive if a water department is formed is substantial and would out weigh any adverse views. 2 Following are some of the area's where I feel savings could be made. Keep in mind it is the same tax payer paying the city tax as is paying water charges. 1. It is possible the Administrator's position could become a part of a public utility director's area of responsibility and substantially reduce cost. 2. The payroll, which is now being "farmed out" could be done on the city computer with little or no cost. 3. The accounting department could be reduced substantially since there financial statement would merge with the city. 4. Equipment repairs and service would be combine. 5. Consideration could be made to use the facilities on Canterberry to a much greater degree and possibly dispose of other facilities. 6. The new facilities on Burnham could be used to a much greater advantage. 7. By having an audit of a single agency a savings of approximately $9,000.00 a year would be realized. 8. Rolling stock and equipment could be consolidated and save money. Pat has estimated a saving of approximately $200,000 a year could be realized. Let me switch gears and cover some concerns I am sure King City, Durham, and the unincorporated areas must be feeling. I can well understand how they may be thinking "here we go with Tigard starting to take over". I believe as an elected council we must act in the best interest of our residents. In my opinion this is to form a water department. Where does this leave King City, Durham, and the!,Inincorporated areas? It would appear to me they have three options. 1. They can form a joint water district of their share of the distribution. 2. They can for departments. 3. They can enter into a negotiated agreement with the City of Tigard for the City of Tigard to be the water provider. I would envision this with them leasing their part of the assets leased to Tigard for say $1.00 a year thus avoiding a distribution of assets and yet them retaining ownership in the assets. With this approach the water rates could remain the same for all being served. Consideration of an advisory 3 board with representation from each agency could be established. This board would have no jurisdiction over day to day operations. Their roll would be in rate determination, water provider negotiations, etc.. Again let me stress that this presentation is my thinking and not necessarily the thinking of the council. I have reviewed certain aspect of this with Pat to make sure my facts are correct. I hope in my attempt to present what I feel are facts that have to be considered and have not been concerned about playing politics I have not been overly blunt. I was concerned that negotiations are not going the direction I believe they should and that if we are to discuss them it should be in a open forum with all parties being involved. C