Resolution No. 12-36 CITY OF TIGARD, OREGON
TIGARD CITY COUNCIL
RESOLUTION NO. 12-3Lp
A RESOLUTION AUTHORIZING THE MAYOR TO EXECUTE AN INTERGOVERNMENTAL
COOPERATIVE AGREEMENT REGARDING AN EMERGENCY WATER SUPPLY(INTERTIE)
WHEREAS, Lake Oswego's water system is connected to the water systems of the South Fork Water Board
and West Linn via an interne, and under an emergency water supply agreement, these three entities have
supplied water to one another during emergencies;and
WHEREAS,the cities of Lake Oswego and Tigard entered into a water partnership agreement whereby the two
cities would work together to develop a new water system that will meet both communities' future water needs;
and
WHEREAS,under the water partnership agreement,Tigard obtained an ownership interest in the intertie used
to provide emergency water;and
WHEREAS,as an owner in the intertie,Tigard needs to be included in the emergency water supply agreement;
and
WHEREAS,water partnership plans include an expansion of Lake Oswego's existing water treatment plant in
West Linn, and the West Linn Planning Commission suggested the emergency water supply agreement be
updated;and
WHEREAS,an emergency water supply agreement has been developed and is attached as Exhibit A.
NOW,THEREFORE,BE IT RESOLVED by the Tigard City Council that:
SECTION 1: On behalf of the Tigard City Council,the mayor is authorized to execute the emergency water
supply agreement, entitled the Intergovernmental Cwpera6x Agreement for Water System Interne
between the South Fork Water Board, the City of Lake Oswego, the City of West Linn, and the City of
Tigard(Exhibit A).
SECTION 2: This resolution is effective immediately upon passage.
�Ik"
PASSED: This day o hti 2012.
11 -City of Tigard
undL aeSMMat
ATTEST:
W
City Recorder-City of Tigard
RESOLUTION NO. 12-
Page 1
Exhibit A
INTERGOVERNMENTAL
COOPERATIVE AGREEMENT
FOR
WATER SYSTEM INTERTIE
BETWEEN THE
SOUTH FORK WATER BOARD,THE CITY OF LAKE OSWEGO,THE CITY OF WEST LINN,
AND THE CITY OF TIGARD
This Agreement is made and entered into by and between the South Fork Water Board, an
intergovernmental entity created pursuant to ORS Chapter 190, serving as a water supply agency and
jointly owned and operated by the Cities of Oregon City and West Linn, hereinafter referred to as
"Board," and the City of Lake Oswego, an Oregon municipal corporation, hereinafter referred to as "Lake
Oswego," and the City of West Linn, an Oregon municipal corporation, hereinafter referred to as "West
Linn," and the City of Tigard, an Oregon Municipal Corporation, hereinafter referred to as "Tigard", all
hereinafter collectively referred to as the "Parties."
RECITALS
The Parties agree upon the following recitals:
1. WHEREAS, the Parties acknowledge that the Board, Lake Oswego, and West Linn entered into an
intergovernmental cooperative agreement in 1984 to provide for the construction, operation
and maintenance of an emergency water system intertie between the water supply system of
the Board and West Linn and the water supply system of Lake Oswego; and
2. WHEREAS, the facilities as described in the 1984 agreement, which are located near the
intersection of Old River Road and Kenthorpe Way in West Linn, were constructed and the
intertie became operable in that same year, and
3. WHEREAS, the intertie has been utilized periodically since 1984 during emergencies to provide
emergency water supply between the Board, Lake Oswego, and West Linn; and
4. WHEREAS,the planning for the 1984 intertie contemplated future construction of an intertie
water pump station in the vicinity of original intertie; and
5. WHEREAS, West Linn has constructed the previously contemplated pump station on Old River
Road near its intersection with Kenthorpe Way; and
6. WHEREAS, the intertie pump station and appurtenant facilities provide benefit to all of the
Parties to this agreement; and
7. WHEREAS, the Board, Lake Oswego, and West Linn contributed to the cost of the pump station
and appurtenant facilities; and
8. WHEREAS, Lake Oswego and Tigard have entered into an intergovernmental cooperative
agreement that conveys an ownership interest in existing water supply facilities necessary to
supply emergency water to West Linn and Board, and provides for construction of new water
1
supply facilities including an expanded water treatment plant and raw and finished water
pipelines to supply their respective long term water needs; and
9. WHEREAS,the changes in ownership, anticipated facilities expansion, and water allocation
formulas called for in the intergovernmental agreement between Lake Oswego and Tigard
necessitate amendment of the existing water system intertie agreement; and
10. WHEREAS,through expansion of Lake Oswego's existing water supply system to its ultimate
treatment capacity of 38 million gallons per day(mgd), Lake Oswego and Tigard can continue to
provide West Linn and Board with redundant water supply facilities and a reliable source of
emergency water supply sufficient to meet West Linn's average day demand of 4 mgd through
at least 2041; and
11. WHEREAS,the Parties agree that other options for West Linn to provide its citizens with a
redundant and reliable water supply system for emergency water supply needs are significantly
more expensive and therefore agree it is in the best interests of their respective communities to
work together in good faith to address critical, local water infrastructure needs in a coordinated
and collaborative manner for mutual benefit;and
12. WHEREAS, provided that expansion of Lake Oswego's existing water supply system occurs,West
Linn ratepayers will avoid $11.6 million in water system capital construction needs, and each
Party will realize other benefits including mitigating environmental impacts from duplicative
infrastructure projects,flexibility in system operations for emergency and non-emergency
events, and economies not otherwise achieved through individual actions; and
13. WHEREAS,the Parties acknowledge that by entering into this Agreement the public health,
safety and welfare of their citizens are protected and enhanced in a fiscally responsible manner;
and
14. WHEREAS,the Parties acknowledge that they have authority to execute this cooperative
intergovernmental agreement pursuant to the terms of their respective municipal charters and
pursuant to ORS 190.010;
NOW THEREFORE, in consideration of the mutual covenants and agreements contained herein, it is
agreed by and between the Parties hereto as follows:
1. "Water Supply Facilities" Defined.As used herein,the term "water supply facilities" means river
intake, raw and finished pumping facilities, water treatment facilities,water storage facilities,
and all other infrastructure used in conjunction with the appropriation, treatment, storage or
transmission of the Parties'water.
2. "Emergency Condition" Defined.An "emergency condition" is an occurrence created by a failure
of the water supply facilities of the Board, Lake Oswego,West Linn,or Tigard, or the occurrence
2
of an event which jeopardizes the Parties'water quality,whereby insufficient supply to any of
the water customers of the Parties could threaten the health or safety of those customers.Such
failure includes failure or interruption in the operation of river intakes, raw and finished water
pumping facilities, water treatment facilities, raw and finished water pipelines, reservoirs, and
appurtenant facilities. Emergency conditions shall not include situations involving loss of water
pressure or diminution in water volume in a water distribution system during periods of high
demand if the system remains in a normal operational mode, and shall not include scheduled
repairs or maintenance or reductions in water availability due to regulatory action.
3. Utilization of Water Intertie.The water system intertie may be utilized by the mutual consent of
the executive officers of each of the Parties,or their designees. Decisions regarding the use of
the intertie may be reviewed by the city councils of each of the Parties at the discretion of each
city council.
4. Location and Description of Water System Intertie.The location of the water system intertie is in
the vicinity of the intersection of Kenthorpe and Old River Road in West Linn.The intersection
connection that was established and constructed in 1984 under the above-referenced prior
agreement consists of an 18-inch intertie main approximately 800 feet in length and related
appurtenance that are located on Old River Road between Mapleton Drive and Kenthorpe Way.
This pipeline connects West Linn's 18-inch diameter transmission main located on Highway 43
to Lake Oswego's 24-inch diameter transmission main located at the intersection of Kenthorpe
Way and Old River Road. In 2000,West Linn constructed an intertie booster pump station on
property located on the west side of Old River Road between Kenthorpe and Mapleton Drive.
The property is located between Old River Road and Highway 43.The pump station connects to,
and utilizes,the 18-inch intertie main on Old River Road.The pump station allows the intertie to
be used on a continuous and automatically controlled basis in both directions of supply, i.e.
Board and West Linn to Lake Oswego and Lake Oswego and Tigard to West Linn and Board.The
pump station includes flow, pressure control, metering and telemetry facilities, and a
connection for providing emergency power supply.The pump station, along with the facilities
and appurtenances associated with it, as well as the facilities previously constructed in 1984,
constitute the water system intertie that is the subject of this agreement.
5. Modifications to Water System Intertie.West Linn, as the project owner, undertook and
completed the water system intertie pump station project. West Linn has maintained accurate
cost accounting records relating to the project.The Board agreed to contribute$100,000.00 to
the project cost, which shall be payable in accordance with a payment schedule not to exceed
two years. Lake Oswego agreed to contribute to the project a sum equal to 500 of the project
cost of the facilities that benefit Lake Oswego, but not to exceed $65,000.00.These facilities are
defined as the piping,valves,vaults, metering, instrumentation and control systems, and
appurtenant facilities that are used to provide water supply to Lake Oswego from West Linn and
the Board.The estimated project cost of these facilities which benefit Lake Oswego is$130,000.
"Project Cost" as used in this paragraph is defined as the final construction cost of the facilities
plus the prorated share of the engineering costs for project which include pre-design, design,
bidding and award, construction management, permits and approvals,operation and
maintenance manuals, and intertie operating plan. Project costs do not include property
acquisition costs,contractor claims, litigation costs or other extraordinary costs related to the
project. Upon completion of the project,West Linn will provide documentation to Lake Oswego
for the project costs incurred. Lake Oswego agrees to pay West Linn its contribution toward the
3
cost of such facilities in accordance with a payment schedule not to exceed two years from the
date of this agreement.
6. Title to Intertie Facilities.The title to the water system intertie facilities as described above in
Paragraph 4 and the obligation to insure them shall be in the name of West Linn.Title to the
property occupied by the intertie pump station will be in the name of West Linn.
7. Method of Water Supply Through Intertie.Supply to Lake Oswego and Tigard from the Board
and West Linn will be by gravity through the piping, metering,flow and pressure control
facilities associated with the intertie pump station. Supply to West Linn and the Board from Lake
Oswego and Tigard will be accomplished by pumping or gravity from the Lake Oswego-Tigard
water system through the intertie pump station into West Linn's system. Instrumentation,
control and telemetry systems will be installed in the station and the station will be under the
primary control of West Linn. Lake Oswego has installed additional instrumentation, control and
telemetry systems that will provide for pump station status indication and additional control
functions. West Linn will prepare an operating plan for the intertie pump station and
appurtenant facilities and provide copies of same to the Board and Lake Oswego.
8. Quantity of Water to be Supplied. Upon agreement between the Parties to make use of the
intertie pursuant to Paragraph 3 of this Agreement,the supplying water shall endeavor to
supply the maximum feasible quantity of water requested by the receiving Party, and take all
reasonable actions necessary to accomplish the same,so long as such actions are not
detrimental to the operation of the supplying Party's own water system. Provided that Lake
Oswego's supply facilities are expanded to a treatment capacity of 38 million gallons per day,
Lake Oswego and Tigard can provide West Linn and Board with redundant water supply facilities
and a reliable source of emergency water supply sufficient to meet West Linn's average day
demand of 4 mgd through at least 2041.
9. Cost of Water to be Supplied.The Parties agree to pay for all water provided through the intertie
at a rate which is the greater of:
a. The cost,then being paid by West Linn to the Board for wholesale water; or
b. The cost to Lake Oswego and Tigard to produce and deliver water to the inlet side of the
intertie pump station,which in the first year of operation of the expanded treatment
plant is estimated to be$0.95 per 100 cubic feet.
The volume of water delivered shall be measured by the meter installed at the intertie pump
station.The Parties shall have the right at any time to review rates for water supplied and make
such adjustments to the cost of water provided, as they deem necessary and by mutual
agreement of all Parties. In the event it is necessary for a Party supplying water through the
intertie to obtain additional water from a water provider not party to this agreement,the water
rate charged to the Party receiving water under this agreement shall be the water rate charged
to the supplying Party by the non-party water provider.The Parties further agree that water
utilized for periodic testing and exercising of the facilities will be furnished between the Parties
4
without cost. In addition to the rate charged for water,the Parties by mutual agreement reserve
the right to impose wheeling charges.
10. Operation and Maintenance Costs. The Parties agree that West Linn, as the owner of the
intertie facilities, will be responsible for and will pay for the normal day-to-day operation and
maintenance costs of the facilities.
11. Repairs, Renewals, Replacements, Upgrading and Modifications.The Parties agree that West
Linn, as the owner of the intertie facilities, will be responsible for scheduling, contracting for and
implementing any repairs, renewals, replacements, upgrading and modifications that may be
required in the future to maintain or increase the function of the facilities.
a. Cost of Repairs: West Linn shall be responsible for the cost of all repairs, except that
Lake Oswego and Tigard agrees to pay 50%of the cost of any repairs necessary to those
facilities which benefit Lake Oswego and Tigard.Those facilities are defined as the
piping,valves,vaults, metering, instrumentation and control systems, and appurtenant
facilities that are used to provide water to Lake Oswego and Tigard from West Linn and
the Board.
b. Cost of Capital Improvements.The cost of any capital improvements or improvements
which increase the function of the facilities will be shared in an equitable manner, based
upon the benefit to be derived from each Party from each particular period.
12. Access to Water System Intertie Facilities.The Parties and their employees shall have access to
the water system intertie facilities.
13. Agreement Not to Resell Water Without Consent. Except for existing wholesale customers or
existing mutual aid agreements,the Parties agree that they will not resell water supplied under
the terms of this agreement without prior written consent of all Parties.
14. Supersedes Prior Agreement.The Parties agree that this is agreement supersedes and replaces
the prior agreement executed in October and November, 2003.
15. Amendment Provisions.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 the Parties.
16. Termination of Agreement.This agreement shall continue in effect until terminated by any Party
with written notice of such intent to terminate provided to the other Parties. Notice to
terminate must be provided at least 36 months prior to the effective date of termination.
Termination of this agreement shall not affect ownership status of the water system intertie
facilities hereinabove described.
17. Written Notices Addresses.All written notices required under this agreement shall be sent to:
South Fork Water Board: General Manager
South Fork Water Board
5
15962 S. Hunter Avenue
Oregon City, Oregon 97045
City of Lake Oswego: City Manager
City of Lake Oswego
P.O. Box 369
Lake Oswego,Oregon 97034
City of West Linn: City Manager
City of West Linn
22500 Salamo Road
West Linn, Oregon 97068
City of Tigard City Manager
City of Tigard
13125 SW Hall Blvd
Tigard, Oregon 97223
18. Dispute Resolution: If a dispute arises between the parties regarding this Agreement, the
Parties shall attempt to resolve the dispute through the following steps:
Step One (Negotiation)
The Manager or other persons designated by each of the disputing Parties will negotiate on
behalf of the entity they represent.The nature of the dispute shall be reduced to writing and
shall be presented to each Manager, who shall then meet 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 Manager and ratified by their respective Board or Council,which shall then be
binding upon the Parties.
Step Two (Mediation)
If the dispute cannot be resolved within thirty(30) days at Step One,the parties shall submit the
matter to non-binding mediation.The Parties shall attempt to agree on a mediator. If they
cannot agree,the Parties shall request a list of five(5) mediators form the Presiding Judge of the
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, a written determination of such resolution shall be signed by each
Manager and ratified by their respective Board or Council.
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 Chapter 36. The Parties shall follow the same process
6
as in Step Two for the selection of the arbitrator. Upon breach of this agreement, the
nondefaulting Parties shall be entitled to all legal or equitable remedies available, including
injunctive relief, declaratory judgment, specific performance and termination. The prevailing
Party(ies) in Step Three shall be entitled to reasonable attorney fees and costs which have been
incurred during the Step Three process, as may be awarded by the arbitrator.
SIGNATURE PAGE FOLLOWS
7
IN WITNESS WHEREOF, the Parties have set their hands and affixed their seals as of the date and
year hereinabove written.
Board has acted in this matter pursuant to Resolution No. adopted on the
day of 2012.
Lake Oswego has acted in this matter pursuant to Resolution No. adopted on the
day of 2012.
West Linn has acted in this matter pursuant to Resolution No. adopted on the
day of 2012.
Tigard has acted in this matter pursuant to Resolution No. adopted on the
day of 12012.
South Fork Water Board,
by and through its officials APPROVED AS TO FORM
By: By:
Doug Neeley, Vice Chair Chris Crean, Attorney
City of Lake Oswego, APPROVED AS TO FORM
by and through its officials
By: By:
Jack D. Hoffman, Mayor David Powell, City Attorney
Attest:
Catherine Schneider, City Recorder
City of West Linn, APPROVED AS TO FORM
by and through its officials
By: By:
Jon Kovash, Mayor Pam Beery, City Attorney
Attest:
Kathy Mollusky, City Recorder
City of Tigard APPROVED AS TO FORM
by and through its officials
by: By:
Craig Dirksen, Mayor Tim Ramis, Attorney
Attest:
Cathy Wheatley, City Recorder