05/14/2008 - Packet ON •� Completeness Review
for Boards, Commissions
and Committee Records
CITY OF TIGARD
Intergovernmental Water Board
Name of Board,Commission or Committee
Za v
Date of kfeeting
To the best of my knowledge this is the complete meeting packet. I was not the meeting
organizer nor did I attend the meeting;I am simply the employee preparing the paper
record for archiving.This record carne from Greer Gaston's office in the Public Works
Building.
Kristie Peerman
Print Name
Signature
3/;L71r3
Date
Intergovernmental Water Board — Agenda
SERVING TIGARD,KING CITY,DURHAM AND THE UNINCORPORATED AREA
MEETING DATE: Wednesday, May 14, 5:30 p.m.
MEETING LOCATION: Tigard Public Works Building
8777 SW Burnham Street
Tigard, OR 97223
1. Call to Order, Roll Call and Introductions
Call the meeting to order, staff to conduct roll call.
2. Approval of Minutes —March 20 and April 8, 2008
Action: Motion to approve the March 20 and April 8, 2008 minutes.
3. Public Comments
Call for comments from the public.
4. Review of the Lake Oswego/Tigard Intergovernmental Agreement Regarding Water System
Facilities, Design, Construction, and Operation - Dennis Koellermeier
Action: No action required; the Board will be asked to make a formal recommendation on this item
at its June 11, 2008 meeting.
5. Discussion of Additional Tenancy in Common Agreements for Properties within the Tigard
Water Service Area - Commissioners Buehner and Carroll
Action: Direction on how the Board would like to proceed with additional tenancy in common
agreements.
6. Discussion on Rewriting/Revising 1993 Intergovernmental Agreements between Durham
and the City of Tigard, King City and the City of Tigard, and the Tigard Water District and
the City of Tigard - Commissioner Carroll
Action: No action required.
7. Water Supply Update - Mr. Goodrich
8. Informational Items
9. Non-Agenda Items
Call for non-agenda items from Board.
INTERGOVERNMENTAL WATER BOARD AGENDA— MAY 14, 2008
Cityof Tigard 1 13125 SW Hall Blvd.,Tigard,OR 97223 1 503-639-4171 1 www.tigard-or.gov I Page 1 of2
10. Future Agenda Items
■ Make a formal recommendation on the Lake Oswego/Tigard intergovernmental agreement.
■ Presentation by Washington County planning staff regarding Areas 63 and 64.
■ Policy regarding extension of water services outside existing Tigard Water Service Area
boundaries.
■ Review:
- Proposed revisions to the credit for leak policy.
- Proposed revisions to the Billing and Collection of Utility Charges section of the Tigard
Municipal Code.
- The billing insert policy.
11. Next Meeting:
■ June 11, 2008, 5:30 p.m.
Tigard Public Works Building, 8777 SW Burnham Street, Tigard, Oregon
12. Adjournment
Action: Motion for adjournment
Executive Session
The Intergovernmental Water Board may go into Executive Session. If an Executive Session is called to
order, the appropriate ORS citation will be announced identifying the applicable statute. All discussions are
confidential and those present may disclose nothing from the Session. Representatives of the news media
are allowed to attend Executive Sessions, as provided by ORS 192.660(4), but must not disclose any
information discussed. No Executive Session may be held for the purpose of taking any final action or
making any final decision. Executive Sessions are closed to the public.
INTERGOVERNMENTAL WATER BOARD AGENDA—MAY 14, 2008
Cityof Tigard 1 13125 SW Hall Blvd.,Tigard,OR 97223 1 503-639-4171 1 www.dgard-or.gov I Page 2 of2
Sign-in Sheet
Intergovernmental Water Board Meeting
Date: / aj4 Z�, oo 8
Name Do you wish If yes, please give your address
please print to speak to
the Board?
John Q. Public Yes 13125 SW Hall Blvd.
Tigard OR 97223
Intergovernmental Water Board (IWB)
Meeting Minutes
May 14, 2008
Tigard Public Works Building
8777 SW Burnham Street
Tigard, OR 97223
Members Present:
Gretchen Buehner Representing the City of Tigard
Patrick Carroll Representing the City of Durham
Julie Russell Representing the Tigard Water District (Arrived 6:06 p.m.)
Bill Scheiderich Member At-Large (Arrived 5:34 p.m.)
Dick Winn Representing the City of King City
Members Absent: None
Staff Present: Public Works Director Dennis Koellermeier
Water Quality & Supply Supervisor John Goodrich
IWB Recorder Greer Gaston
Note: Agenda items are recorded in the minutes in the order they were
considered. This order varies from the agenda, thus the discrepancy in
numbering.
1. Call to Order, Roll Call and Introductions
Commissioner Carroll called the meeting to order at 5:31 p.m.
2. Approval of Minutes — March 20 and April 8, 2008
Commissioner Buehner motioned to approve the March 20, 2008 minutes;
Commissioner Winn seconded the motion. The minutes were approved by unanimous
vote of the Commissioners present, with Commissioners Buehner, Carroll, and Winn
voting yes.
Commissioner Buehner motioned to approve the April 8, 2008 minutes; Commissioner
Winn seconded the motion. The minutes were approved by unanimous vote, with
Commissioners Buehner, Carroll, and Winn voting yes.
3. Public Comments: None
7. Water Supply Update
Mr. Goodrich reported:
■ There are 262 million gallons of water in aquifer storage and recovery wells. With
the forecast for warmer weather, this source is ready to be brought online.
■ Current demand is 5 million gallons per day.
■ Abandonment of Titan Lane well should be finished by the end of week.
■ Work will begin on the Tigard High School well abandonment on June 17.
Intergovernmental Water Board Minutes May 14,2008
1
■ Paving is taking place on Bull Mountain Road in conjunction with the new
reservoir and transmission line.
■ Mr. Koellermeier offered the Commissioners a tour of the new reservoir.
Commissioners Carroll, Buehner and Winn expressed interest. Mr. Koellermeier
proposed the tour could be conducted following an IWB meeting.
5. Discussion of Additional Tenancy in Common Agreements for Properties
within the Tigard Water Service Area
Mr. Koellermeier provided background on this item. The Board had discussed this topic
previously at its September 12, October 10, and November 28, 2007 meetings. Mr.
Koellermeier suggested all the properties on the "Potential Properties for Tenancy in
Common Agreements" list should be owned as an undivided interest among all the
member jurisdictions (Durham, King City, Tigard, and the Tigard Water District).
Commissioner Carroll asked Commissioners Scheiderich and Buehner to provide their
legal opinions on changing the ownership to tenants in common agreements.
Mr. Koellermeier said all the properties, even those outside Tigard City limits, were
dedicated to the use of the water supply system. The 150th Avenue well site was an
aquifer storage and recovery test site and is now vacant. The property's importance to
the water system will be evaluated during the next master planning process.
Commissioner Carroll said if this property was transferred to a tenancy in common
arrangement and subsequently not needed for the water system, it could be sold and the
proceeds could be placed into the capital improvement fund.
Mr. Koellermeier advised individual tenancy in common agreements will likely be needed
for each property.
Commissioner Buehner motioned that the IWB direct staff to prepare separate
cotenancy agreements and deeds for each of the properties listed with the memo dated
May 6, 2008; Commissioner Winn seconded the motion. The motion was approved by
unanimous vote of the Commissioners present, with Commissioners Buehner, Carroll,
Scheiderich, and Winn voting yes.
6. Discussion on Rewriting/Revising 1993 Intergovernmental Agreements (IGAs)
between Durham and the City of Tigard, King City and the City of Tigard, and
the Tigard Water District and the City of Tigard
Commissioner Carroll referred to notebooks provided to the Commissioners which
contained all of the member jurisdictions' IGAs and subsequent amendments.
Commissioner Carroll suggested each Board member review the agreements and
specifically asked Commissioner Scheiderich to review and identify potential discussion
points related to the agreements. The Commissioners discussed:
■ Reviewing existing agreements to identify discrepancies and ambiguities.
■ Streamlining any future agreement(s).
■ Rewording any future agreement(s) using clear, understandable terms.
■ An addendum addressing the proposed water partnership agreement with Lake
Oswego, acknowledging the City of Tigard as the signing entity.
■ Extending the agreement beyond its current expiration date.
■ Not expanding the service area unless the member jurisdictions agree to do so.
• Combining the three existing, separate IGAs into a single IGA, signed by all
member jurisdictions.
Intergovernmental Water Board Minutes May 14,2008
2
Commissioner Carroll asked the Commissioners to review the existing agreements and
bring back recommendations regarding possible revisions, points of concern and
interest, etc. with the intent being to create one new agreement for all member
jurisdictions.
The Board discussed the fact that it would have to decide whether to supply water to
areas 63 and 64 and how development might be funded. Existing member jurisdictions
do not want to pay for new development.
Note: Commissioner Russell arrived at the meeting at 6:06 p.m.
Mr. Koellermeier added City of Beaverton staff has said they are not interested in
providing water to areas 63 and 64. Areas 63 and 64 are within the City of Tigard's
master planning area, but outside the boundaries of the existing service district.
Note: Commissioner Scheiderich left the meeting at 6:11 p.m.
4. Review of the Lake Oswego/Tigard Intergovernmental Agreement (IGA)
Regarding Water System Facilities, Design, Construction, and Operation
Mr. Koellermeier summarized the major points of the 51-page draft IGA.
■ The IGA is a two party agreement.
■ Tigard and Lake Oswego agree to jointly fund and develop Lake Oswego's water
rights.
■ Some parts of the project will be built to accommodate the full 38 million gallons
per day (mgd), while other parts will be built to 32 mgd and expanded later if
additional supply is needed.
■ Most of Tigard's costs are included in the first phase.
■ Phase 2 would expand the treatment plant from 32 to 38 mgd and construct a
reservoir.
• Lake Oswego is the managing partner through the construction period. They will
handle permits, banking, etc.
■ Water rights proposed to stay in Lake Oswego's name, but are pledged to the
partnership.
■ Management structure includes technical and oversight committees.
■ Tigard's buy-in costs for existing capacity are estimated at $2.7 million. After buy-
in, Tigard will be a co-owner of facilities. Tenancy in common deeds will be
created for facilities and real property that have title.
■ Percentage of ownership will be based on capacity.
• Lake Oswego will supply Tigard with a billing schedule, and Tigard will reimburse
Lake Oswego.
■ Voting issues are described on page 25.
• Curtailment would be shared proportionately.
■ The agreement addresses withdrawal from the partnership, selling assets,
admission of new partners.
■ There is a dispute resolution clause.
■ A performance clause will likely be added to the agreement as an incentive.
Commissioner Winn noted the "Right to Lease" section on page 34 was confusing. He
suggested the section needed refinement.
Intergovernmental Water Board Minutes May 14, 2008
3
Mr. Koellermeier said the IWB will be asked to make a recommendation on the
agreement at their next meeting. If the IWB supports the agreement, then each member
jurisdiction will be asked to consider a resolution of support.
Commissioner Russell inquired about a financing plan. Mr. Koellermeier said upcoming
versions of the agreement will have exhibits detailing Tigard's anticipated costs and
proportionate share of the project. An official financing plan will be created once the
agreement is executed, and the project will be funded by revenue bonds backed by a
series of rate adjustments.
Commissioner Buehner added the City of Tigard Budget Committee supported seven
percent water rate increases over the next four years as recommended by the IWB.
Mr. Koellermeier said the City of Tigard would be responsible for the bonds.
8. Informational Items: None
9. Non-Agenda Items: None
10. Future Agenda Items
■ Make a formal recommendation on the Lake Oswego/Tigard intergovernmental
agreement.
■ Presentation by Washington County planning staff regarding Areas 63 and 64.
■ Policy regarding extension of water services outside existing Tigard Water
Service Area boundaries.
■ Review:
- Proposed revisions to the credit for leak policy.
- Proposed revisions to the Billing and Collection of Utility Charges section of the
Tigard Municipal Code.
- The billing insert policy.
Future agenda items were not discussed.
11. Next Meeting
■ June 11, 2008, 5:30 p.m.
Tigard Public Works Building, 8777 SW Burnham Street, Tigard, Oregon
12.Adjournment
At 6:38 p.m. Commissioner Winn motioned to adjourn the meeting; Commissioner
Buehner seconded the motion. The meeting was adjourned by unanimous vote of the
Commissioners present, with Commissioners Buehner, Carroll, Russell, and Winn voting
yes.
IWB Chair Greer A. Gaston, IWB Recorder
Date:
Intergovernmental Water Board Minutes May 14,2008
4
Agenda Item No.: .�
IWB Meeting Date:
Intergovernmental Water Board (IWB)
Meeting Minutes
March 20, 2008
Tigard City Hall
Red Rock Conference Room
13125 SW Hall Blvd
Tigard, OR 97223
Members Present:
Gretchen Buehner Representing the City of Tigard
Patrick Carroll Representing the City of Durham
Julie Russell Representing the Tigard Water District
Bill Scheiderich Member At-Large
Dick Winn Representing the City of King City
Members Absent: None
Staff Present: Public Works Director Dennis Koellermeier
Water Quality & Supply Supervisor John Goodrich
IWB Recorder Greer Gaston
1. Call to Order, Roll Call and Introductions
Commissioner Carroll called the meeting to order at 5:28 p.m.
2. Approval of Minutes — February 13, 2008
Commissioner Buehner motioned to approve the February 13, 2008 minutes;
Commissioner Winn seconded the motion. The minutes were approved by unanimous
vote, with Commissioners Buehner, Carroll, Russell, Scheiderich and Winn voting yes.
3. Public Comments: None
4. Discussion of the Fourth Amendment to the Joint Funding Agreement for the
Tualatin Basin Water Supply Project
Mr. Koellermeier provided background on this item. Cost estimates for this fiscal year
and next fiscal year were included in packet information. Partners in the project are
trying to arrange funding and are anxious to know if Tigard will continue its participation.
If Tigard does not participate, costs will be distributed among other partners.
Mr. Koellermeier provided the following update on the TBWSP:
■ The governance agreement is nearing completion. This must be in place in order
to accept the title from the federal government. Although some issues still
remain, like the existing power subsidy for the Tualatin Valley Irrigation District,
the agreement appears to be acceptable to most of the partners.
■ Since the Tualatin Valley Water District has signed on, they are trying to
accelerate the project. They want the project to be operational before their
Portland Water Contract expires.
■ There are still many project "unknowns" and cost estimates may be conservative.
Intergovernmental Water Board Minutes March 20,2008
1
■ The partners have asked for Tigard's decision on whether it will remain in the
project by June 1, 2008.
• In anticipation of this decision, cost and other information for the various water
sources was being updated and will be presented at the Board's April 8 meeting.
Commissioner Scheiderich briefed the Board on following TBWSP issues:
• Power Subsidies
The federal government currently provides power subsidies to the Tualatin
Valley Irrigation District. Should title transfer take place, agreements would
require the new owners to honor the existing power subsidies; the partners
would have to subsidize the power costs of the irrigation district.
■ Recouping Existing Investment
Should Tigard withdraw from the partnership, there is no mechanism in place
to recoup money already invested in the project. However, both Tualatin
Valley Water District and Clean Water Services would like to obtain more
than their allocated share of TBWSP water. Commissioner Scheiderich
suggested Tigard should remain in the project until it determines it does not
need the water, at which time it could sell its share back to other partners.
Mr. Koellermeier interjected Tigard had spent about $1 million on the project to date. Of
that $1 million, about $200,000 was used to purchase property and could be recovered.
Clean Water Services has offered to front the $2 million for Forest Grove's portion of the
project, giving the city a buy-back option in the future. Mr. Koellermeier asked Clean
Water Services for a similar arrangement, but he has not received a formal response.
Tigard's comparable cost would be about $80 million.
The financial commitment associated with the fourth amendment would be $3,031,579
over the next year. Mr. Koellermeier estimated Tigard's costs the following year to be
about $4 million.
Mr. Koellermeier said he has approached the other partners about returning the balance
of Tigard's investment in the form of wholesale water when the project is completed. The
partners were not receptive to this idea.
Commissioner Buehner:
■ Said the Board had to spend money in order to "stay at the table" with regard
to the TBWSP and was aware that money invested may not be recouped.
■ Expressed concern over subsidizing the irrigation district.
■ Said the money being discussed for the TBWSP could instead be used to
fund the start up of the Lake Oswego Expansion and Water Partnership.
Mr. Koellermeier said Tigard's share of the TBWSP would be in excess of$200 million,
with the transmission line alone, costing between $50 and $75 million. This cost would
likely be financed over a 30 year period. However, since Tigard will only be able to
obtain 14 million gallons per day, the City will likely need to develop additional water
sources before the financing for the TBWSP is paid off.
Mr. Koellermeier responded to a question about how much further Tigard could proceed
before it was committed to the entire project. Once the partnership begins to actually
build the facility, Tigard would be contractually obligated to fund its share of the entire
Intergovernmental Water Board Minutes March 20,2008
2
project. The fourth amendment will fund completion of the title transfer process and the
start of project design and permitting.
Commissioner Buehner asked staff to find out what Tigard's share of the irrigation
subsidy would be if the project goes forward under local ownership.
Mr. Koellermeier relayed that it now appeared that title transfer would not save the
partnership any money.
The Board discussed the TBWSP in relation to other water options.
Mr. Koellermeier advised that a decision not to participate in the TBWSP will affect the
city's status on the Joint Water Commission. It is possible the city could still receive
water through the TBWSP without being an owner.
Commissioner Buehner expressed her support of the Lake Oswego Expansion and
Water Partnership as opposed to the TBWSP.
The Board discussed the timelines for the Lake Oswego and Tualatin Basin projects,
along with the TBWSP June 1 decision date. If theTBWSP partners don't receive an
answer by then, it will be assumed Tigard is out of the project. The Board will need to
make a decision regarding its participation in the TBWSP at their April 8 meeting.
Commissioner Scheiderich asserted the TBWSP will be built, while other possible water
projects have not been finalized. He advocated continuing with the TBWSP for the time
being.
Commissioner Carroll said that without some other agreement in place for future water,
continuing with the TBWSP basically provided a $3 million "insurance policy" that the
Tigard Water Service Area would have water. He also expressed support for keeping
other long-term water options open.
The Board asked Mr. Koellermeier to get clarification from TBWSP partners on whether
the fourth amendment and the $3 million payment would commit the city to the entire
project, or if it could abandon the project at a later date.
Commissioner Carroll said the $3 million investment in the TBWSP would allow more
time for the city to solidify the agreement on the Lake Oswego Expansion and Water
Partnership.
The Board discussed using its clout as a partner of the TBWSP to move the June 1
decision deadline back.
Commissioner Carroll summarized the Board's discussion by directing Mr. Koellermeier
to find out how long the Board can delay its decision to participate in the TBWSP and
how much money will be required to fund the project while the decision is postponed.
The Board agreed it needed to remain in the TBWSP until the Lake Oswego Expansion
and Water Partnership, or some other water option, is finalized.
Commissioner Buehner relayed that the upcoming intergovernmental agreement (IGA)
between Tigard and Lake Oswego would commit the two cities to the Lake Oswego
Intergovernmental Water Board Minutes March 20,2008
3
Expansion and Water Partnership. Mr. Koellermeier said a summary of the IGA will be
presented at the April 15 meeting.
Mr. Koellermeier confirmed he would investigate delaying the TBWSP decision and the
corresponding cost resulting from such a delay.
5. Discuss Proposed Budget and Community Investment Program
Mr. Koellermeier distributed two handouts which are on file in the IWB record. He
explained the handouts were in draft form and about 85 percent complete.
The handout marked "650" is the annual expenditure budget for water and the other
handout was an overview of Community Investment Program projects related to water.
Mr. Koellermeier summarized the handouts. Expenditures are relatively flat. Future water
rates will be based on these documents. He noted the list of capital improvement
projects is accurate, but the figures were not accurate.
6. Water Supply Update
Mr. Goodrich reported:
■ Aquifer storage and recovery wells are full at 262.9 million gallons.
• Average demand is 4.2 million gallons per day, which is normal for this time of
year.
■ The school district has signed the intergovernmental agreement regarding their
well and this agreement is on the Tigard City Council's March 25 agenda. June
17 is the start date for construction, with a completion date of June 30. License
agreements with the two property owners affected by the proposed work on the
other well on Titan Lane are in draft form. Work can start as soon as the license
agreements are signed and the contract is awarded.
7. Informational Items
■ Update on Tigard Water District/City of Tigard Lawsuit
Mr. Koellermeier distributed a court document which is on file in the IWB record. A judge
dismissed the Tigard Water District's suit against the City of Tigard for administrative
reasons. Tigard Water District has refiled the same suit.
Commissioner Russell provided the Board with a statement from the Tigard Water
District's attorney. The statement is on file in the IWB record.
The Board discussed a handout on reclaimed water from a recent Tigard City Council
meeting. Commissioner Buehner said Clean Water Services may be reevaluating its
position on the use of reclaimed water in downtown Tigard.
8. Non-Agenda Items
Mr. Koellermeier summarized a handout on contaminated water in western national
parks. The handout is on file in the IWB record.
9. Future Agenda Items
• Update on water partnership negotiations with the City of Lake Oswego.
■ Discussion of Water Rates
• Review:
- Proposed revisions to the credit for leak policy.
Intergovernmental Water Board Minutes March 20,2008
4
- Proposed revisions to the Billing and Collection of Utility Charges section of
the Tigard Municipal Code.
- The billing insert policy.
Mr. Koellermeier said a recommendation on water rates would come before the Board at
a future meeting.
10. Next Meetings
■ Special Meeting, April 8, 2008, 5:30 p.m.
Tigard Public Works Building, 8777 SW Burnham Street, Tigard, Oregon
■ Special Joint Meeting with the Tigard City Council, April 8, 2008, 7:30 p.m.
City of Tigard Town Hall, 13125 SW Hall Blvd., Tigard, Oregon
• Special Joint Meeting with the Tigard and Lake Oswego City Councils, April 15,
2008, 7 p.m., Lake Oswego City Hall, 380 A Avenue, Lake Oswego
11. Adjournment
At 7:08 p.m. Commissioner Scheiderich motioned to adjourn the meeting; Commissioner
Winn seconded the motion. The meeting was adjourned by unanimous vote, with
Commissioners Buehner, Carroll, Russell, Scheiderich and Winn voting yes.
IWB Chair Greer A. Gaston, IWB Recorder
Date:
Intergovernmental Water Board Minutes March 20,2008
5
Agenda Item No.: .Z
IWB Meeting Date: 5-/.q OB —_
Intergovernmental Water Board (IWB)
Meeting Minutes
April 8, 2008
Tigard Public Works Building
8777 SW Burnham Street
Tigard, OR 97223
Members Present:
Gretchen Buehner Representing the City of Tigard
Patrick Carroll Representing the City of Durham
Julie Russell Representing the Tigard Water District
Bill Scheiderich Member At-Large (Arrived 5:46 p.m.)
Dick Winn Representing the City of King City
Members Absent: None
Staff Present: Public Works Director Dennis Koellermeier
Water Quality & Supply Supervisor John Goodrich
Financial Operations Manager Roger Dawes
IWB Recorder Greer Gaston
1. Call to Order, Roll Call and Introductions
Commissioner Carroll called the meeting to order at 5:30 p.m.
2. Public Comments: None
3. Richard K. Brown Credit for Leak Request
Mr. Dawes provided background information regarding this credit for leak request.
Commissioner Carroll proposed the Board approve the credit calculated and then split
the difference of the remaining balance with the customer. Commissioner Buehner so
moved; Commissioner Winn seconded the motion. The motion was passed by
unanimous vote, with Commissioners Buehner, Carroll, Russell, and Winn voting yes.
4. Thomas Tang Credit for Leak Request
Mr. Dawes provided background information regarding this credit for leak request. He
described the chronology of contact with the customer. Initial contact was made on
November 16, 2007; the leak was repaired on February 1, 2008. The leak was not
repaired within the required ten days.
Commissioner Carroll proposed the Board not grant the credit. Commissioner Winn so
moved; Commissioner Buehner seconded the motion. The motion was passed by
majority vote, with Commissioners Carroll, Russell, and Winn voting yes and
Commissioner Buehner voting no.
5. Review New Information/Options on the Fourth Amendment to the Joint
Funding Agreement for the Tualatin Basin Water Supply Project (TBWSP)
Intergovernmental Water Board Minutes April 8,2008
1
Mr. Koellermeier summarized his April 1, 2008 memo on the Tualatin Basin Water
Supply Project and gave a PowerPoint presentation on future water sources. The memo
and PowerPoint are on file in the IWB record.
Note: Commissioner Scheiderich arrived at 5:46
The Board discussed the fact that it may loose its representation on the TBWSP should
it withdraw from the project for a year.
The Board discussed which water options offered ownership of infrastructure and water
rights and when system development charges could be used.
Commissioner Scheiderich questioned TBWSP timeline projections. He said the
environmental impact study was long overdue. Other deadlines have not been met. He
reported a master plan update, with new cost information, was also in the works.
Commissioner Buehner requested the Board continue its discussion during its joint
meeting with the Tigard City Council, which immediately followed this meeting.
6. Discussion of Water Rates
Mr. Koellermeier summarized a revised water rate issue paper that had been distributed
to the Board. The paper is on file in the IWB record. The paper will also be presented to
the City of Tigard Budget Committee.
Rate recommendations may need to be increased once a future water source is
identified and development begins. Previous rate increases were discussed.
Commissioner Buehner proposed upping the proposed rate increases to seven percent
for the next four years. She inquired if other Commissioners supported this suggestion.
Board consensus was to up the proposed rate increases to seven percent for the next
four years.
7. Water Supply Update
Mr. Goodrich reported:
■ Average demand is between 4 and 4.3 million gallons per day.
■ Injection is completed at aquifer storage and recovery wells.
■ The city continues to purchase 3 million gallons per day per our Portland
contract.
■ Proper abandonment of the two private wells is progressing.
8. Informational Items: None
9. Non-Agenda Items: None
10. Future Agenda Items
■ Update on water partnership negotiations with the City of Lake Oswego.
■ Review:
- Proposed revisions to the credit for leak policy.
- Proposed revisions to the Billing and Collection of Utility Charges section of
the Tigard Municipal Code.
- The billing insert policy.
Intergovernmental Water Board Minutes April 8,2008
2
At the request of Commissioner Buehner, Commissioner Carroll indicated the Board
should revisit joint tenancy agreements for uncontested properties. Mr. Koellermeier
indicated he would bring the list of properties considered for tenancy in common
agreements back to the Board at its next meeting.
11. Next Meetings
■ Special Joint Meeting with the Tigard and Lake Oswego City Councils, April
15, 2008, 7 p.m.
Lake Oswego City Hall, 380 A Avenue, Lake Oswego
■ May14, 2008, 5:30 p.m.
Tigard Public Works Building, 8777 SW Burnham Street, Tigard, Oregon
12.Adjournment
At 6:27 p.m. Commissioner Winn motioned to adjourn the meeting; Commissioner
Buehner seconded the motion. The meeting was adjourned by unanimous vote, with
Commissioners Buehner, Carroll, Russell, Scheiderich and Winn voting yes.
IWB Chair Greer A. Gaston, IWB Recorder
Date:
Intergovernmental Water Board Minutes April 8,2008
3
Agenda Item No.:
IWB Meeting Date: .5—/4-b8 gft�
INTERGOVERNMENTAL AGREEMENT REGARDING WATER
SYSTEM FACILITIES, DESIGN, CONSTRUCTION, AND
OPERATION
DATED , 2008
BETWEEN
THE CITY OF LAKE OSWEGO
AND
THE CITY OF TIGARD
1:\PW\GREER\Water Partnership\COT-LO Water Partnership IGA 5-5-08 Draft.doe
TABLE OF CONTENTS
i
LIST OF EXHIBITS
ii
kd,
This Intergovernmental Agreement Regarding Water System Facilities, Design,
Construction, And Operation is dated , 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 C000perative Association and Alto Park Water
District (the`Existing Wholesale Customers");
WHEREAS, Lake Oswego has existing water rights, water intake and water
treatment facilities, transmission, storage (hereinafter "Supply Facilities") and
distribution facilities;
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 joint funded a study by Carollo Engineers known as the
Lake Oswego and Tigard Joint Water Supply System Analysis dated , 2006
("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 entities that make up the Agency and to realize upon
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 will 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, and the flexibility for management of water resources for enhanced
costs and operation efficiency, 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. For use in
this Agreement, the book depreciation lives of the System components are
those as set forth in Exhibit J, which exhibit may be updated and revised
by resolution of the Parties.
1.1.3 Capacity — capability from the various components of the System to
produce or deliver water; measured in acre-feet, gallons, gallons per day
or gallons per minute or other comparable measurement and available
based on current operating conditions consistent with generally accepted
engineering and operating practices.
1.l.4 City of Lake Oswego — an Oregon Municipal Corporation in Clackamas
County, Oregon.
1.1.5 City of Tigard— an Oregon municipal corporation in Washington County,
Oregon.
1.1.6 Curtailment Plan — A written plan developed for curtailment of water
service in accordance with OAR Chapter 690 Division 86 rules.
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1.1.7 Demand—the amount of water used or projected to be used by a Party and
imposed on the System to serve a Party's Retail Customers its Existing
Wholesale Customers and ultimate service area measured in acre feet,
gallons, gallons per day, gallons per minute or other appropriate
measurement. The basis for determining Demand may be waived or
modified by the Parties due to unusual circumstances such as a fire,
emergency, etc.
1.1.8 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 for the Seattle area,
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 for the Seattle area, 1913=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*ENRe /ENR') *(1-(Ye-Y°)/BDL))
Where:
DRC=Depreciated Replacement Cost Value.
CC =Construction cost.
ENR'= Engineering News Record Construction Cost Index for the
year of evaluation.
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ENR' = Engineering News Record Construction Cost Index for the
year placed in service.
Y'=Year of evaluation.
Y°=Year placed in service.
BDL= Book Depreciation Life.
1.1.9 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 who are similarly served by Tigard.
1.1.10 Fiscal Year—the time period as defined under ORS 294.311(17).
1.1.11 Local Government Investment Pool (LGIP) — The Oregon State
Treasurer's Local Government Investment Pool, subject to regulatory
oversight by the Oregon Secretary of State and administered by the
Oregon State Treasury.
1.1.12 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).
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1.1.13 Other Assets — those System components which do not directly in and of
themselves provide for jointly used supply, transmission and storage of the
System. The Parties shall determine which System components are
considered Other Assets. The Other Assets, ownership and estimated cost
are more fully described in Exhibit , which exhibit may be updated and
revised by resolution of the Parties.
1.1.14 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 System and the Capacity owned or leased by each Party in the System.
1.1.15 Project — The design, permitting and construction of new and expanded
Supply Facilities, as detailed in the City of Lake Oswego and Tigard
Water Service Area Joint Water Supply System Analysis dated
, 2006 by Carollo Engineers ("Carollo Report") to provide 32
million gallons per day capacity by 2016 (Phase I) with the capability to
expand to 38 million gallons per day (Phase II) by 2025. At the
completion of Phase I, the Lake Oswego allocation would be 18 million
gallons per day and the Tigard allocation would be 14 million gallons per
day. Phase 1I would likely be primarily for the benefit of Lake Oswego.
1.1.16 Rate Base— Depreciated Replacement Cost Value.
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
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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.
1.1.19 Summer Period—May 1 through October 31.
1.1.20 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 from the Clackamas River or its tributaries for use at
the Water Treatment Plant Facilities. The Surface Water Rights are more
fully described in Exhibit , which exhibit may be updated and revised
by resolution of the Parties.
1.1.21 System — the facilities and rights utilized by the Parties identified in the
Carollo Report consisting of Surface Water Rights, Water Treatment Plant
Facilities, Transmission System, Other Assets and other facilities
necessary for treatment and conveyance of potable water to the Parties. A
map of the System components is provided in Exhibit _, which 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 System components.
1.1.22 Transmission Facilities — the raw water intake, transmission line and
pumping facilities between the Clackamas River Intake and the Water
Treatment Plant Facilities and the pumping, storage, and transmission
facilities between the Water Treatment Plant Facilities and the systems of
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Lake Oswego and Tigard as identified in the Carollo Report. The
Transmission Facilities, ownership and their agreed value are more fully
described in Exhibit which, exhibit may be updated and revised by
resolution of the Parties.
1.1.23 Water Treatment Plant Facilities — the pumping stations, treatment plant,
reservoirs and certain transmission facilities, which treat raw water and
produce potable water for transportation by the Transmission Facilities as
identified in the Carollo Report. The Water Treatment Plant Facilities,
ownership, and their agreed value are more fully described in Exhibit ,
which exhibit may be updated and revised by resolution of the Parties.
1.1.24 Winter Period—November 1 through April 30.
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
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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;
(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;
and (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 thereunder.
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ARTICLE II
WARRANTIES 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.
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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 Phase I Project Facilities as
set forth in the Carollo Report. Lake Oswego will 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 subject to its purchasing rules, b) approve change orders not
exceeding ten percent (10%) in aggregate of the original contract amount, c) take
such actions reasonably necessary during an emergency and d) 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.
3.2 Technical Committee
Each Party shall appoint two engineering 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
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and costs. The Technical Committee must review and approve any proposal by
Lake Oswego to retain a project manager.
3.3 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 will review and the individual members
will recommend proposed projects as identified in the Carollo Report and related
matters and budgets or funding prior to the submission to the respective City
Councils. The Managing Agency will be responsible to staff and assist the
Oversight Committee to comply with public meetings law and notice
requirements as necessary.
3.4 Budgeting, Accounting, Audits
Lake Oswego shall prepare a budget for the each Fiscal Year. A draft budget
shall be prepared and distributed to the Technical Committee by March 1" 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 be
approved by each Party by June 30th. If Lake Oswego uses a biennial budget
cycle, the dates above will remain the same for the applicable budget preparation
year and Lake Oswego will update the budget amounts anticipated for the off year
for the benefit of Tigard's budget process.
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Each Party's proportionate share of the expenses of operation and maintenance of
the System, 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 in each Party's individual adopted budget. 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 expenditures and receipts by budget item for each
transaction through the last working day of the preceding quarter.
3.5 Asset Management Program
The Managing Agency will thoroughly inventory all of the assets associated with
the Supply Facilities and Project, including physical facilities and real estate
holdings. Within one year after completion of construction of Phase I Project
Improvements, the Managing Agency will create an asset management program
that describes the current conditions of these facilities, their current value
(replacement cost less depreciation), and repairs and replacements that may be
necessary. The program will include a schedule for repairs and replacement. The
Technical Committee will create policies that guide this repair and replacement as
part of the asset management program and approve the Asset Management
Program. Annually, the inventory will be reviewed for additions and deletions.
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ARTICLE IV
SYSTEM OWNERSHIP
4.1 System Ownership
Upon execution of this Agreement, Tigard shall pay Two Million Dollars
($2,000,000) to Lake Oswego, and the Parties shall each own undivided interests
in the Supply Facilities consisting of the intake, Water Treatment Plant Facilities,
pumping, storage, and the Transmission System, all as set forth on Exhibit
Such ownership shall be a percentage ownership in the System component as set
forth in the exhibits in this Agreement. At the time of execution, the existing
asset shall be valued as shown on Exhibit and the contributing partner will
receive a credit for the asset value. If the Project is not constructed, Lake Oswego
will refund Tigard's initial contribution within 30 days of the decision to abandon
the Project and Tigard shall have no further ownership interest in the Lake
Oswego System.
Tigard's purchase of its percentage share of the system asset shall be by capital
contribution, in kind contribution or payment of design, permitting and
construction costs for the system expansion so that upon completion of the
Project, Tigard's contribution will equal its percentage ownership. Lake
Oswego's percentage shall be determined based on its contributed assets,
financial contribution to the Project and other factors as deemed appropriate.
4.2 Anticipated Ownership
At the conclusion of Phase I Project construction, the Parties anticipated that the
percentage ownership will be allocated as follows:
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Intake and Raw Water Transmission Line
Lake Oswego %
Tigard %
Water Treatment Plant(32 mgd)
Lake Oswego %
Tigard %
Transmission Line(s)
Lake Oswego %
Tigard %
Pump Station(s)
Lake Oswego %
Tigard %
Storage
Lake Oswego %
Tigard %
Land
Lake Oswego %
Tigard %
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ARTICLE V
PROPERTY; CREATION OF TENANCY IN COMMON
5.1 Creation of Common Ownership
Title to all properties upon which Supply Facilities or Project Facilities
are or will be located will remain in the name of Lake Oswego until the
conclusion of the Phase I Project. Within one year following
completion of Phase I construction, Lake Oswego will, by Warranty
Deed, convey to Tigard an undivided _% interest as tenant in
common in the identified Property, on Exhibit , attached hereto and
incorporated by reference. The Parties agree the valuation shall be in
2008 dollars, as set forth on Exhibit _. Properties acquired after the
date of this Agreement will be acquired proportional to ownership
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 for the use and enjoyment of Tigard. Upon transfer, title to the
Property shall be held in the name of each of the Owners in their
respective undivided interest. The Parties agree that except as provided
herein, the Property is dedicated for water supply purposes. The Owners
intend that their relationship, with respect to the Property, be a tenancy in
common. A tenancy in Common Agreement will be executed and
recorded at the time of transfer.
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5.2.2 The Owners' responsibility for all maintenance, insurance and other land
costs, shall be:
5.2.2.1 Until completion of Phase I and transfer of an undivided interest to Tigard,
the 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 proportionately
responsible for all costs related to the Property and shall allocate of all
costs related to the Supply and Project Facilities as they agree.
5.3 Purpose
The Owners 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 and be binding upon all parties having or acquiring any
right, title, interest or estate therein.
5.4 Partition
Following transfer and so long as this Agreement is in effect, no Owner
shall seek 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 Owner.
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ARTICLE VI
DESIGN AND CONSTRUCTION OF SUPPLY FACILITIES
6.1 Preliminary Planning and Design
Tigard and Lake Oswego, by this Agreement, commit to design and
construct the Phase I Supply Facilities, which shall include initially a
32 mgd Water Treatment Plant, intake, transmission, pumping and
storage, according to a plan prepared by Carollo Engineers ("Carollo")
dated , 2006, and to such end, 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 set forth
on Exhibit , attached hereto and incorporated by reference. The
Supply Facilities, including the plant, shall accommodate expansion up to
38 mgd. The general configuration map of the Property attached to the
Agreement as Exhibit will allow the Parties to expand the treatment
plant in the future. Lake Oswego will retain a project team for permitting,
design, and construction management of the Phase I increment of the
Supply Facilities.
6.2 Permit Applications
Lake Oswego, as Project Manager, shall be the lead agency in
negotiating required permits for construction of the Supply Facilities.
6.2.1 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, 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 will be responsible for obtaining necessary land
development permits. The Parties agree that improvements imposed by
the land use permitting body will be a Project cost. Additional amenities
not required by the land use permitting body will be paid for at the sole
expense of the party requesting them. Lake Oswego further agrees to, in
good faith, assist and support Tigard in 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. Lake Oswego shall cooperate with Tigard and
not unreasonably withhold its approval to any permits, plans,
specifications, or detailed drawings which may be required for the
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construction of Tigard only water facilities beyond those described as
Supply Facilities to serve Tigard users.
6.3 Construction
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 Payments. Progress payments, during design and construction,
will be billed monthly by Lake Oswego according to the allocation of
assigned capacity of individual components of the system as set forth on
Exhibit . The total payment of a party will not exceed the allocated
cost of Exhibit unless the governing body of that party has approved
any amendment. Within 30 days of invoice from Lake Oswego, Tigard
will remit the amount due, unless disputed. Any disputed amount shall be
resolved in accordance with the Dispute Resolution Procedures of Article
14 below. However, notwithstanding the foregoing, during construction
no participant dispute will 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 will
expressly reserve all rights regarding the ultimate allocation of costs or
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obligations paid to the contractor which will 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 Partner may perform work with its own forces
and charge the other partner therefore or by contract with
another party. Either decision shall require unanimous consent
of the Parties.
7.1.2 Cost. The costs of operation, maintenance, repair and
replacement shall be allocated between the Parties according to
water usage from the water treatment plant. Operation,
management, repair and replacement costs will be allocated
based upon a rolling average of any Party's water usage over the
previous 12 months applied against the actual costs incurred for
the previous month.
7.2 Property Management.
The Parties agree that the underlying property upon which the Supply
Facilities are constructed shall be operated and managed as follows:
7.2.1 Duties of the Managing Agency. The Managing Agency shall
have the responsibility and authority to perform the following
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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
Lake Oswego and Tigard.
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. Lake Oswego and Tigard
will also obtain or renew a policy of public liability and
property damage insurance with a single limit of not less than
$2,000,000. The policies will name Lake Oswego and Tigard
as insureds.
7.2.1.3 Assessments. To collect and deposit the assessments and other
charges due from Lake Oswego and Tigard 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 will be insufficient to cover future expenses.
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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.
7.2.1.5 Records. To maintain complete and accurate records of all
receipts and expenditures for the Parties.
7.2.1.6 No improvements or fixtures shall be made or attached to the
Property without the prior written consent of the Parties.
Unless approved in writing by the Councils, no Party shall be
compensated for services; however, a Party will be reimbursed
for out-of-pocket expenses.
7.3 Voting on Property Matters
The Councils of each Party must:
7.3.1 Approve any sale, transfer, lease, exchange, or other disposition
of all of the Property or Supply Facilities;
7.3.2 Approve any mortgage, pledge, encumbrance or refinance of the
Property or Supply Facilities;
7.3.3 Approve any expenditure by the Managing Agency in excess of
$10,000.00 unless such expenditure is for normal and recurring
operating expenses, such as the purchase of insurance, or
payment on any debt which is secured by the Property, or is an
emergency payment necessary to avoid injury to person or
property, or is reflected in an approved budget for the Property;
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7.3.4 Approve any decision to burden the Property with additional
easements, licenses, or other encumbrances or use the property
for non-water related purposes.
7.3.5 Approve any decision to alter or improve the Property, to make
any major repairs (such as replacing the roof).
7.3.6 Approve any decision to change the use of the Property, the
operation of the Supply Facilities, or the operator.
7.3.7 To terminate this Agreement.
7.4 Assignments
No party may assign its Participating Interest to another without
unanimous consent of and that such new party shall expressly assume
the assigning Party's rights and obligations under this Agreement and
agrees to be bound by this Agreement.
7.5 Employment Laws
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.
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ARTICLE VIII
SUPPLY FACILITIES
8.1 Use of Supply Facilities
Lake Oswego and Tigard shall each use the Supply Facilities in a manner
consistent with prudent water utility practices and to minimize interference with
each other's use of its respective share of capacity to meet its demand. When the
Project is completed and the Parties are using the Supply Facilities, unless caused
by system operation conditions not caused by the overusing party, any overuse of
10% or greater by either Party than its capacity for two consecutive years or three
out of five years shall be overuse. The overusing party 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, Lake Oswego and Tigard
may agree to expand the Supply Facilities contemplated in Phase II of the Carollo
Report or reduce demand so that overuse will cease to occur.
8.2 Mutual Forecast Submittal
In order to make timely, reasonable and prudent judgments concerning meeting
respective demand for capacity, the need to lease capacity, the ability to lease
capacity, and the term and conditions of any such Lease, Lake Oswego and
Tigard shall each 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 demand, 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
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reasonably anticipated will be agreed to within the ten-year time frame. The
capacity requirement for the Supply Facilities shall consist of the average of five
consecutive days with the highest average peak day demands (mgd) imposed by
Lake Oswego and Tigard, respectively, for the summer period of May 15 to
September 30. Lake Oswego and Tigard 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
Water rights shall remain in the name of Lake Oswego. By execution of the
agreement, Lake Oswego agrees to hold these permits or certificates in trust for
the benefit of Tigard and Lake Oswego. Surface Water Rights shall accrue to the
benefit of all Parties without regard to ownership and any curtailment or reduction
because of shortage shall be equally shared by the partners.
8.4 Water Treatment Plant Facilities
Each Party shall have or obtain Capacity in the Water Treatment Plant Facilities,
to serve the Demand of the Party during the Summer Period and the Winter
Period. The Capacity requirement for Water Treatment Plant Facilities shall
consist of the average of the five (5) consecutive highest peak day Demands
(mgd) imposed on the System by the Party for each Summer Period and Winter
Period. Capacity in the Water Treatment Plant Facilities may be obtained by
purchase of existing Capacity, expansion of the Water Treatment Plant Facilities
and/or leasing of Capacity from another Party.
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8.5 Transmission System
The Parties agree that Capacity of the Transmission System is a dynamic process
depending on the flow rate and the pressure at the points at which water is being
taken from the Transmission System. The Parties agree that duplication of
transmission facilities is expensive and politically sensitive due to disruption of
traffic and land and right of way acquisition requirements. Therefore, the Parties
agree to maximize the use of existing Transmission System for the benefit of the
Parties before construction of new transmission facilities.
The Parties also agree that interim transmission improvements to the Waluga
Pump Station and Waluga Transmission Line will be necessary. To the extent
subsequent improvements to the supply facilities are made which reduce the need
for or otherwise strand these interim improvements, the Parties agree to the
principle of sharing capital costs and operation and maintenance costs to the
extent of benefit of each. The Parties have agreed on flow rates and pressures
and points of diversion for delivery of water from the Transmission System as set
forth in Exhibit , which exhibit may be updated and revised by resolution of
the Agency. To the extent that a Party needs additional Capacity in the
Transmission System, the Parties agree to sell or lease Capacity in the
Transmission System prior to construction of new transmission facilities. When
expansion of the Transmission System is required, the Parties shall use the
procedures as set forth in Article 9.
8.6 Finished Water Storage
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8.6.1 The Parties agree that the System components that store finished water for
all Parties shall be used for System operation and emergencies. 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 the operating conditions as set forth in the
Operations Manual as required under Article 12. To the extent that a Party
cannot meet the requirements as set forth in the Operations Manual, then
the Party shall compensate the other Party as mutually agreed.
8.7 Curtailment
The Parties agree that a condition of any lease of Capacity shall be that the lessee
Party will be provided Capacity to the same extent that Capacity is available to
serve the lessor Party's Demand. The Parties shall adopt consistent Curtailment
Plans and reductions in Demands shall be in accordance with the Curtailment
Plans. Curtailment for shortages and reduced water supplies shall be shared
equally among the parties.
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ARTICLE IX
EXPANSION RIGHTS AND REQUIREMENTS
9.1 Planned System Expansion
The Parties interest to design, permit and construct the supply facilities, as
detailed in the City of Lake Oswego and Tigard Water Service Area Joint Water
Supply System Analysis dated 2006, required by Carollo Engineers
(Carollo Report), the supply facilities as detailed will be increased in such fashion
to provide 32 million gallons per day capacity by 2016 (Phase I) with the
capability to further expand to 38 million gallons per day (Phase 11) by 2025. At
the completion of Phase I, the Lake Oswego allocation would be 18 million
gallons per day and the Tigard allocation would be 14 million gallons per day. It
is anticipated that the Phase 11 increment would primarily be for the benefit of
Lake Oswego.
9.2 Expansion Requirements
The Parties agree that use of the System by the Parties should be accomplished
first by utilizing the Capacity in the System to serve the needs of the Parties. The
System 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. The Phase I improvements are planned to provide
capacity for the Parties' respective demands to 2025. In determining the
appropriate time to begin expansion of the System, the Parties shall consider the
time required to provide for environmental reviews, designs, permits and
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construction.
Therefore, the Parties agree to lease Capacity to another Party as
provided for in Article 10.
9.3 New Surface Water Rights and Expansion
The Parties agree that finding opportunities to acquire new water rights (surface
or ground) is 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
should be acquired jointly in proportion to the Party's ownership interest in the
System. If a Party elects not to participate in the acquisition of additional water,
the other Party may proceed individually.
9.4 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
determination shall take into consideration the Demand requested by the Parties,
the Capacity of the Water Supply Facilities, prudent utility planning standards and
the available Surface Water Rights, and Transmission System owned or capable
of being leased or expanded by the Parties. The moving Party will provide
written notice to the Parties of the intent to expand the Supply Facilities. Such
notice shall include the size of the expansion and estimated cost. The Parties shall
have 90 days from the date of the notice 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
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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.
9.5 Other Assets
For System components, which do not directly in and of themselves, provide for
expansion of the Supply System, 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 harmless from financial obligation.
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ARTICLE X
LEASING
10.1 Leasing
As provided for in Article 8, the Parties shall lease to the other Capacity for
Surface Water Rights, Water Treatment Plant Facilities and the Transmission
System to the extent available according to the planning forecast.
10.2 Purpose
The purpose of this Article is to acknowledge the rights of Lake Oswego and
Tigard to lease from each other the unused portion of their respective 14 mgd and
18 mgd of the total 32 mgd capacity of Phase I of the Supply Facilities 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 Lake Oswego and Tigard from otherwise agreeing
on leasing of supply capacity to each other.
10.3 Right to Lease
Lake Oswego and Tigard will have ownership interests in the project elements of
the Supply Facility equal to each of their participating interest when Phase I
construction is complete. Lake Oswego shall have the right to lease to Tigard and
Tigard to lease from Lake Oswego such unused capacity of its 14 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
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have the right to lease to Lake Oswego and Lake Oswego to lease from Tigard the
unused capacity portion of its 18 mgd capacity as may be determined by Tigard to
be reasonably available 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 System 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 rate equal to the Municipal
Bond Index rate 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
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In any event, Lake Oswego and Tigard agree that if an emergency or water
shortage requires restriction on the deliverable supply of capacity to the lessor,
then the lessor may employ a pro rata restriction of the deliverable supply leased
to the lessee without penalty.
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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 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, costs of debt service, renewals and
replacements and contingencies are paid.
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ARTICLE XII
OPERATIONS MANUAL
12.1 Operations Manual
Not later than 180 days from the date of substantial completion of Phase I, the
Parties shall adopt an Operations Manual for the System, which shall include, but
not be limited to, agreed protocols and methodology to provide for the equitable,
effective and efficient operation of the System in accordance with generally
accepted utility practices regarding the operation, management, capital
improvements, and expansion of all aspects of the System. The Operations
Manual may be updated as required. The Operations Manual will provide that for
a period of two years from its effective date the Parties will use best efforts and
good faith in the operation of the System. The Operations Manual will 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 execution of this Agreement each Party shall appoint
one person to negotiate 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 will a Party have more than one vote in
making a recommendation to the Oversight Committee created under Section
. The Operations Committee shall report to the Oversight Committee not
less often than quarterly.
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ARTICLE XIII
WITHDRAWAL, TERMINATION OF MEMBERSHIP, SALE OF ASSETS
AND DISSOLUTION
13.1 Termination of All Interest
Any Party may elect to terminate its participation in this Agreement and withdraw
from the System 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 option to purchase the terminating 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. Consent by the remaining Party for another local
government party to this Agreement shall not be unreasonably withheld. The
Party may also assign their unpurchased interest to another local government.
Such assignment shall not relieve the Party from its obligations under this
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Agreement. A Party shall make efforts to sell all or part of its interest prior to
making an assignment.
13.2 Partial Termination of Interest
Any Party may elect to terminate and sell less than all of its interest in the System
by giving written notice thereof to the other Party and stating a date for partial
termination which shall not be less than two (2) years from the date of the notice.
If the partially withdrawing Party seeks as part of its action to sell the subject
ownership interest to another local government party, then it must disclose all
material terms and conditions of that proposed sale. The partially withdrawing
Party must disclose to any potential purchaser that sale and purchase of any
interest is expressly subject to the rights of non-selling party hereunder. Upon
receipt of the notice, the remaining Party shall have the right to purchase the
offered interest as provided in Section 13.1. The Party may also assign its
unpurchased interest to another local government. Such assignment shall not
relieve the Party from its obligations under this Agreement. A Party shall make
efforts to sell all or part of its interest prior to making an assignment.
13.3 Sale of Assets
A Party may offer to sell to the other Party its ownership interest in an identified
portion of the System (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 procedure
of Section 13.1 shall be used. The Party may also assign their unpurchased
interest to another government Party. Such assignment shall not relieve the Party
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from its obligations under this Agreement. A Party shall make efforts to sell all or
part of its interest prior to making an assignment.
13.4 Valuation of Interest
The Parties shall meet to agree upon a price within 90 days of the receipt of notice
under Sections 13.1, 13.2, or 13.3. The price shall be fixed by determining the
withdrawing/selling Party's interest in the subject assets using the Depreciated
Replacement Cost Value. Nothing herein shall prevent the Parties from agreeing
upon a price through negotiation and unanimous consent. Sales or assignments to
third parties are not subject to the valuation formula of this Section.
13.5 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 term inating/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, 13.2, or 13.3.
13.6 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
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case of a failure to advance funds, in which case the date shall be 30 days after
receipt of the notice of default.
13.6.1 Opportunity to Cure. If within the applicable period described in Section
13.6 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 applicable period and continues corrective efforts with
reasonable diligence 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 13.6.2.
13.6.2 Rights Upon Default. If the defaulting Party has not cured the default as
provided in Section 13.6.1, it shall have no rights under this Agreement
until the default has been cured. In addition, the non-defaulting Parties
may pursue any other remedy available at law or in equity against the
defaulting Party, including but not limited to, an action for damages or to
expel a member by termination of this Agreement as to that entity.
13.7 Dissolution of the Agreement
This Agreement may be dissolved by mutual agreement. Upon dissolution, the
Parties shall agree on a plan to wind down and dissolve the business affairs.
Unless modified by the plan, the dissolution shall be effective only after all debts
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and obligations are paid or provision for payment is made. Each Party shall
assume a share of the debts and obligations of the Supply Facilities in proportion
to their ownership in the System 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 System in each Party
and execute a post dissolution management agreement. Nothing herein shall
prevent a Party from accepting cash or other consideration in lieu of continued
proportionate ownership in the System. The cost of dissolution shall be treated as
an operation and maintenance expense.
13.8 If Lake Oswego elects to terminate 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.
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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
will 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 the 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 will 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
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determination of such resolution shall be signed by City Manager or other
designated persons, 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 non-binding arbitration under the rules and
processes of U. S. Arbitration and Mediation of Portland, Oregon. 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 will apply.
The decision of the panel shall be non-binding. Nothing herein shall prevent the
Disputing Parties from selecting a single arbitrator by agreement.
Step Four (Legal Action)
After exhaustion of the preceding processes, the Disputing Parties may initiate
litigation in the Circuit Court of the State of Oregon for Clackamas County.
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 PHASE I CONSTRUCTION
15.1 Modification to Agreement
Within three years after completion of Phase I construction, the
Oversight Committee will review all agreements and operations and
negotiate in good faith any agreement modification or the terms and
conditions of a new agreement. The Oversight Committee will
consider:
15.1.1 Modification to 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.
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ARTICLE XVI
NOTICES
Any notice herein required 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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ARTICLE XVII
GENERAL PROVISIONS
17.1 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 System and supersedes all previous agreements
and understandings relating to the System except as provided herein.
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.
17.4 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
enforceability of the remaining provisions contained herein shall not in any way
be affected or 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
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between and among the Parties.
17.6 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 and the like. In the event a
Party claims that performance of its obligations was prevented or 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.
17.8 Consolidation, Merger, 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. Annexation means
annexation of territory outside the current service territory of the Parties
within the Urban Growth Boundary or annexation of territory within the
area defined in the Carollo Report dated , 2006; and transfer of a
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Party's territory to a Water Authority formed by one or more cities, water
districts or both under ORS 450.680 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 by 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 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
covenants, agreements, and warranties, shall be deemed to the extent of such
application to survive the expiration or termination of this agreement.
Page 50—Lake Oswego-Tigard Water System Agreement
1:\PW\GREER\Water Partnership\COT-LO Water Partnership IGA 5-5-08 Draft.doc
17.10 Indemnity
To the extent permitted by law, 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.
IN WITNESS WHEREOF the Parties have dated and signed this Agreement.
CITY OF LAKE OSWEGO CITY OF TIGARD
Mayor Mayor
Dated Dated
Attest
City Recorder City Recorder
Dated Dated
City Attorney City Attorney
Page 51 —Lake Oswego-Tigard Water System Agreement
1:\PW\GREER\Water Partnership\COT-I O Water Partnership IGA 5-5-08 Draft.doc
Agenda Item No.:
IZNB Meeting Date:
City of Tigard
Memorandum
To: Intergovernmental Water Board Commissioners
From: Executive Assistant to Public Works Greer Gaston
Re: Background Materials for Additional Tenancy in Common Agreements
Date: May 6, 2008
At the Board's April 8 meeting, there was request to revisit tenancy in common agreements for
water system real property.
The list of properties considered for tenancy in common agreements is attached. Also included
are minutes from September 12, October 10, and November 28, 2007 summarizing the Board's
previous discussions on the matter.
Potential Properties for Tenancy in Common Agreements
Site Jurisdiction Owner of Effective
Record Date of
Annexation
High Tor Reservoirs and Unincorporated Tigard Water District N/A
Pump Stations
Reservoir No. 4 and Well Unincorporated Tigard Water District N/A
No. 4
150th Avenue Well Site Unincorporated Tigard Water District N/A
Bonita Pump Station City of Tigard N/A N/A
10 Million Gallon City of Tigard Tigard Water District Pre-1984
Reservoir,ASR 2 Well and
Transfer Pump Station Site
Baylor Reservoirs City of Tigard Tigard Water District Pre-1984
Reservoir No. 2 City of Tigard Tigard Water District Pre-1984
Reservoir No. 3 and Well City of Tigard Tigard Water District Dec. 3, 1988
No. 3
132nd Avenue Pump Station City of Tigard Tigard Water District Dec. 3, 1988
Price Property (550 City of Tigard City of Tigard July 9, 1991
Reservoir No. 2 Under
Construction
Menlor Reservoir City of Ti andTi and Water District Nov. 9, 2006
Cach Property (Future 550 City of Tigard City of Tigard Nov. 9, 2006
Reservoir No. 1)
Mr. Jockers addressed the Board's inquiry regarding residential incentives related to
storm water harvesting. He explained CWS's stormwater credit programs are geared
toward development and redevelopment. CWS has no residential downspout
disconnection or rain barrel credit. These programs are typically offered in communities
where stormwater and sanitary systems are combined and are placing a strain on the
sanitary system. Residents in Washington County do not have combined stormwater
and sanitary systems.
It was suggested information could be provided to citizens on their utility bills.
Marland Henderson, 11795 SW Katherine Street, Tigard, asked how CWS water got into
the river. Mr. Jockers replied water was discharged through a diffusion pipe along the
bottom of the river. This is one of four permitted discharges. CWS does not have a
permit to discharge reclaimed water at other locations along the river.
Charles Swift, 12950 SW Pacific Highway, Tigard, said, in his experience, only the
facility where the reclaimed water came from needed to be permitted; if reclaimed water
made its way to the river, this did not need to be permitted. Mr. Jockers said CWS is
operating under a different set of rules.
Mr. Henderson asked what will happen as the community grows and more waste water
is generated. Mr. Jockers responded that the amount of water discharged into the river is
limited by the capacity of the river to assimilate the discharge. He added that the issue of
future discharges will be part of CWS's master planning.
There was also a discussion about the use of recycled water as a water source for
toilets. Mr. Jockers did not know whether a permit would be required for this use; there
would be building code issues. He added that such an idea would require dual plumbing
systems (one for drinking water and one for reclaimed water). He raised the issue of the
cost of the initial investment in infrastructure and how these costs would be distributed.
Ken Henshel, 14530 SW 144th Avenue, asked, with regard to existing homes, if there
were any retrofit systems designed to allow the use of rainwater for toilet flushing. Mr.
Jockers said he didn't know; he suggested this may be a question for DEQ.
Commissioner Buehner said some of the major downtown projects might be on a large
enough scale to qualify as a pilot project to implement some of these water-saving
suggestions.
Mr. Jockers pointed out that reclaimed water was not available year-round.
6. Discussion of Additional Tenancy in Common Agreements for Properties
within the Tigard Water Service Area
The Board recently executed two tenancy in common agreements for the water building
and Canterbury property. Mr. Rager asked the Board if it was interested in creating
additional agreements for other properties.
There was some discussion about which properties were within the City of Tigard.
Commissioner Scheiderich asked staff to research this issue and bring the item back at
a subsequent meeting.
Commissioner Scheiderich explained his interpretation of the 1993 agreements
establishing the IWB. If property is within the City of Tigard, upon withdrawal from the
group, the City succeeds in title to the property. The tenancy in common agreements, on
the other hand, direct that property be dedicated to the water service system and
Intergovernmental Water Board Minutes September 12,2007
3
guarantee that ownership is distributed to the owner jurisdictions. This is why the Board
needs to know which properties are within the City of Tigard and, by default, fall under
the 1993 agreement.
Commissioner Russell made a formal request from the Tigard Water District (TWD)
asking the IWB delay any action on the properties until the legal action regarding the
public meeting notice for the June 25, 2007 TWD meeting is settled. Commissioner
Russell referred to a letter she would provide to the Board.
Note: The letter Commissioner Russell referred to was not produced and,
therefore, is not a part of this record.
In response to Commissioner Scheiderich, Mr. Rager said this was not an urgent matter.
Commissioner Scheiderich directed the issue be brought back to the Board's next
meeting and asked staff to provide a history of when the properties were annexed into
the City of Tigard.
7. Water Supply Options
• Little progress had been made on scheduling committee meetings with the City
of Lake Oswego.
■ Aquifer storage and recovery well # 2 was out of service and the City was
looking into increasing the capacity of the well in conjunction with the repair.
This is not affecting water supply.
• The bid opening for the 550-foot Zone Reservoir#2 and Price Park took place
yesterday. Activity at the site should begin next month and the project will take
about two years to complete. The low bid was about $5.7 million, which was in
line with the engineer's estimate.
8. Informational Items
Mr. Rager referred to Tualatin Project Title Transfer Partnership documents that had
been handed out to the Commissioners. These documents are on file in the IWB
record. Having Clean Water Services (CWS) act on behalf of the Tualatin Basin Water
Supply Project partners would streamline the title transfer project. Approval of the
memorandum of agreement granting CWS the authority to act on Tigard's behalf will go
before the Tigard City Council in the near future.
9. Non-Agenda Items: None
10. Next Meeting - October 10, 2007, 5:30 p.m.
a Tigard Water Building, 8777 SW Burnham Street, Tigard, Oregon
11. Adjournment
Commissioner Scheiderich adjourned the meeting at 6:32 p.m.
Greer A. Gaston, IWB Recorder
Date:
Intergovernmental Water Board Minutes September 12,2007
4
knowledge and expertise needed to plan areas 63 and 64, Commissioner Winn
concurred, saying the advisory committee was composed of staff and technical people.
Commissioner Scheiderich asked for clarification on the committee's assignment.
Water Line Break on Bull Mountain Road
In response to an inquiry from Mr. Henschel (see Public Comments), Mr. Goodrich told
the Board about a water main break that occurred in front of Alberta Rider School. The
water line has been repaired.
5. Discussion of Additional Tenancy in Common Agreements for Properties
within the Tigard Water Service Area -Continued
This item was continued from the Board's September 12, 2007, meeting. Mr. Rager
referred to an updated memo which is on file in the IWB record.
For properties within the City of Tigard, Commissioners Russell and Scheiderich wanted
to know when the properties were annexed into the city. Commissioner Scheiderich
asked for this information so he could determine if the annexation preceded the withdraw
of territory from the Tigard Water District (TWD). He explained that there was a time,
prior to the 1993 intergovernmental agreements, when TWD and City of Tigard
boundaries overlapped. Following the 1993 agreements, state law dictated that when the
City of Tigard withdrew from the TWD, certain assets would be transferred from the
TWD to the city.
Commissioner Winn said he favored treating these properties in the same manner as
other properties by supported tenancy in common agreements.
The Board agreed that the properties in question were dedicated for use as part of the
water supply system.
This item was tabled and will be reconsidered when the annexation information is
available.
6. Discuss Disposition of Property for Burnham Street Improvements
Mr. Goodrich referred to a memo requesting the IWB donate a piece of property for right-
of-way. The property is needed for street widening as part of the City of Tigard Burnham
Street Improvement Project. Mr. Goodrich's memo is on file in the IWB record.
Commissioner Russell indicated she would discuss the issue at the next Tigard Water
District (TWD) meeting and report back to the IWB.
Commissioners Scheiderich, Carroll and Winn said they had no concerns over the right-
of-way donation.
Commissioner Russell asked if the City of Tigard should pay for the right-of-way and the
money be placed in the water fund. Mr. Goodrich pointed out that compensation would
only be for the portion of the property being used as right-of-way. Commissioner
Scheiderich added there would be costs associated with doing an appraisal and the
property may be unbuildable.
Commissioner Scheiderich said the Board would make a decision after the TWD has
considered the matter.
7. Water Supply Options
• There is an upcoming meeting with Lake Oswego on November 17 at 9 a.m.
Intergovernmental Water Board Minutes October 10,2007
3
Intergovernmental Water Board (IWB)
Meeting Minutes
November 28, 2007
Tigard Public Library
2nd Floor Conference Room
13500 SW Hall Blvd.
Tigard, OR 97223
Members Present:
Gretchen Buehner Representing the City of Tigard
Patrick Carroll Representing the City of Durham
Julie Russell Representing the Tigard Water District
Bill Scheiderich Member at Large
Dick Winn Representing the City of King City
Members Absent: None
Staff Present: Public Works Assistant Director Brian Rager
Water Quality & Supply Supervisor John Goodrich
IWB Recorder Greer Gaston
1. Call to Order, Roll Call and Introductions
Commissioner Scheiderich called the meeting to order at 5:36 p.m.
2. Receive and File Minutes from the July 17, 2007, Joint Meeting with Lake
Oswego and Tigard City Councils
Commissioner Buehner motioned to approve the July 17, 2005 minutes; Commissioner
Winn seconded the motion. The minutes were approved by a majority vote, with
Commissioners Buehner, Carroll, Scheiderich, and Winn voting yes. Commissioner
Russell was not at the July 17 meeting and abstained.
3. Approval of Minutes —October 10, 2007
Commissioner Carroll motioned to approve the October 10, 2007 minutes;
Commissioner Winn seconded the motion. The minutes were approved by majority vote,
with Commissioners Carroll, Russell, Scheiderich, and Winn voting yes. Commissioner
Buehner was not at the October 10 meeting and abstained.
4. Public Comments: None
5. Discussion of Additional Tenancy in Common Agreements for Properties
within the Tigard Water Service Area - Continued
This item was continued from the Board's October 10, 2007 meeting. Mr. Koellermeier
summarized the Potential Properties for Tenancy in Common Agreements handout. The
handout included information on annexation and the owner of record for the properties
and is on file in the IWB record.
Intergovernmental Water Board Minutes November 28,2007
1
Commissioner Buehner pointed out that all the annexed properties in which the TWD is
listed as the owner of record, were annexed prior to the 1993 intergovernmental
agreements (IGAs).
Commissioner Russell reported she has been reviewing past TWD minutes. She said,
when the ICAs were being created in 1993, the TWD Board was under the impression
the assets would be frozen and would remain in the ownership of the jurisdiction on the
deed.
Commissioners Carroll and Buehner asserted this was contrary to IGAs. The
Commissioners discussed various legal opinions on the matter. Commissioner Winn
added that the IGAs should govern ownership.
Commissioner Scheiderich inquired about the TWD's opinion regarding TWD owner of
record properties within the City of Tigard. Commissioner Russell responded that the
TWD should remain the owner of record, especially given the pending litigation. She
presented a letter requesting the IWB not consider additional tenancy in common
agreements until the litigation is resolved. The letter is on file in the IWB record.
Commissioner Carroll asserted that the properties in question were purchased from
water revenues, and the majority of these revenues were generated from water
customers the TWD does not currently represent. If the TWD represented 20 percent of
the district, then it only paid for 20 percent of the assets. City of Tigard ratepayers would
have paid for the largest share of each of the properties.
Commissioner Scheiderich verified that all of the properties in question are dedicated to
the use of the water system.
Commissioner Scheiderich said that since the additional tenancy in common
agreements were not time sensitive, the matter should be tabled until the pending
litigation is resolved. He asked for IWB consensus on the matter.
Commissioner Winn stated he did not wish to table the issue and said the -R/VD's actions
were disrupting the IWB's business.
The Commissioners discussed how long it may take to resolve the pending litigation.
Commissioner Buehner said she would agree to set the matter aside as long as it was
acted on within six months.
Commissioner Scheiderich asked for consensus to table the matter for six months or
until the litigation was resolved.
Commissioner Carroll concurred with Commissioner Winn's comments, but said he
would go along with Commissioner Scheiderich's proposal.
Commissioner Russell supported tabling the issue until the litigation is settled.
The majority consensus (Commissioners Carroll, Russell and Scheiderich) was to table
consideration of additional tenancy in common agreements for six months or until the
current litigation between the City of Tigard and the TWD was resolved.
Intergovernmental Water Board Minutes November 28,2007
2
04
Tigard a. .e.r -pic, ure , eg.ins to ' clea.r
City officials are ready to buy into handful -of water from staff of both cities working togeth- its ratepayers of three other options the
_
options, the meeting er to draft a formal agreement over the city tyis exploring.
n
ga partnership with Lake Oswego
resulted in a cau- next month and a half that wills ell out Tigard currently
for Clackamas River water p g y purchases around
tious pledge for full the fine details. 90 percent of its water supply from the
buy-in to the Lake Joel Komarek, the city engineer for city of Portland,which is predominate-
By Darryl Swan Oswego option, Lake Oswego, said it will cost $135 ly fed by the Bull Run River.Expensive
Of TheT,imes called the Lake million to build the infrastructure to habitat restoration projects planned for
Tigard's sometimes murky water Oswego Expansion bring water from the Clackamas River the Bull Run watershed are anticipated
future cleared Tuesday night following a -and Water to both cities. to drive up future water rates, a cost
joint meeting between Tigard and. Lake Partnership. Tigard would shoulder $82 million expected to be passed on to Portland's
Oswego governments on a proposal forDIRKSEN "This is our pre- in costs,reducing Lake Oswego's antic- wholesale water purchasers, such as
both cities to fund new water-feed infra- ferred option, yes," ipated-outlay from $78 million to $53 Tigard and its residents.
structure on the Clackamas River. said' Tigard Mayor million,Komarek said. The Tigard contract with Portland
For Tigard, which has been playing Craig Dirksen at the meeting. Tigard offidials tout the Lake expires in 2016.
something of a poker match between a What follows will be swift action Oswego option as the least expensive to N See WATER,A5
s,
www.tigardtimes.com April 17, 2008 ■ A5
dater: Lake Oswego, has its own timepressures
.
■Continued from Al over its water rights on-the.Clackamas tapping into a proposed Sherwood expan-
Tigard leaders first opened talks with., River, sion line of the Tualatin Valley Water
Lake Oswego in 2006,about the time the Craig Prosser, Tigard city inaosger, District.
full impact of the Bull Run•projects was said. he expects a quick segue into the ■ , .A Portland Water Purchase
sinking in. public hearing process prior to a final Agreement—the option to keep Portland
A strong attraction for Tigard officials agreement with Lake Oswego. as primary supplier. This option factors
to the Lake Oswego option is the promise I personally don't think we need to out to be the highest long-term water rate
of joint ownership in a water-delivery sys• wait until we have all of the wording of for Tigard customers.
tem,'a first for the city. With that owner- that agreement worked out in fine.detail A contract provision with the Tualatin
ship piece, Tigard oity officials say they before we start the public-involvement Basin Water Supply Project was steering
could use dollars collected from new con- process,"Prosser said. Tigard-to make a decision and a $3 mil-
struction within the city to hold down Lake Oswego has its own time pres- lion investment in the Hagg Lake project
ratepayer costs. sures to deal with, including an aged by June, though the city has since been
Under the agreement,Tigard would be water treatment plant and supply line granted a reprieve that allows it to with-
fed 14 million gallons of water daily from struggling to match demand.. hold that commitment while keeping the
Lake Oswego's 38 million gallon daily Other water options considered for option open to later invest in that project
water rights on the Clackamas River. Tigard include: if the other options fold.
While that feed would serve as the city's ■ The Tualatin Basin.Water Supply A handful of local agencies have part-
dominate supply -source, Tigard would , Project — a proposal orchestrated by nered in the project that proposes raising
still have options in place to purchase Clean Water Services to raise the level of Hagg Lake either 25 or 40 feet. Once
water from Portland and to pull from its Hagg Lake near %he eastern foothills of raised, the lake would serve as regional
reservoirs and wells during periods of the coastal mountain range. water feed,serving several municipalities.
high demand and strained supply. , IN The Willamette River Treatment & (Lee van tier foo of the Lake Oswego
Lake Oswego would retain sole control Transmission Project—the possibility of Review contributed to this story.)-
■
iga
rd close
in on water pact
Two cities informally agree to share
water utility using Clackamas River
By LEE VAN DER VOO will cost–$78 million in the next
Staff Reporter decade.
It isn't quite a marriage—not yet. In the exchange,Tigard water users
But Tigard and Lake Oswego are offi- would get ownership rights in a water
cialiy attached. utility,giving officials there the power
Leaders from both cities gave an to control the city's water rates for the
informal thumbs up to a plan to form first time.
4.
a joint water utility at a meeting "1 can't see any doubt that this is in
Tuesday evening, agreeing to expand everybody's best interest," said Lake
Lake Oswego's existing water utility Oswego City Councilor Roger
to accommodate Tigard. Hennagin.
While both communities would "As water becomes a bigger and
jointly own the utility — called the bigger issue for the public, it's going
Lake Oswego Expansion and Water to be more and more important that
Partnership — Lake Oswego would we cooperate within the region."
retain ownership of its water rights That cooperation initially makes
on the Clackamas River. Ratepayers for a steeper price tag than if Lake
from both towns would share in Oswego were to go-it-alone, though
costs. the ratepayers would actually save
Following Tuesday's agreement money through the deal.
will be swift action from both cities, According to Joel Komarek, city
with staff jointly drafting a formal engineer for Lake Oswego,it will cost
agreement over the next 40 days, $135 million to build the infrastruc-
spelling out the details of the deal. ture to bring water from the
Elected officials still must vet the Clackamas River to both Lake
idea in their respective communities Oswego and Tigard.
and they committed to hold publicTigard would shoulder$82 million
hearings once the agreement is in print. in costs, reducing Lake Oswego's
If ratepayers support the idea, rep- anticipated outlay from$78 million to
resentatives from both cities say water $53 million, Komarek said.
customers in Tigard and Lake Oswego The price buys Tigard a stable
would benefit. water supply and a way to get out
According to early terms of the from under the unpredictable cost of
deal, Lake Oswego ratepayers would buying water at wholesale rates from
get a helping hand from Tigard while other cities.
funding needed upfyades to the exist-
ing water utility, which officials say See WATER, Page A6
A6--lake Oswego Review,Lake Oswego,OR,Apfil 17,2008
Water
Continued from page Al
Tigard currently buys about sive conservation program
90 percent of its water from about a year ago to buy the city
Portland, which is predomi- time to expand the water sys-
nately fed' by the Bull Run tem.
River. Expensive habitat About six months ago the
M. restoration projects planned for city hired a full-time employee
the Bull Run watershed are to lead the conservation effort.
anticipated to drive up future But that effort promised
water rates, a cost expected to only to delay, not halt, the
be passed on to Portland's inevitable costs of expanding
wholesale water purchasers, the water delivery system.
such as Tigard and its resi- Now that a partnership with
dents. Tigard looks certain, Lake
The Tigard contract with Oswego officials show no sign
Portland expires in 2016. of tossing out their conserva-
Tigard leaders first opened tion goals. The conservation
talks with Lake Oswego in program still aims to reduce
2006, about the time the full water consumption by half a
impact of the Bull Run projects percent a year to curtail Tystem
was sinking in. demands.
Without Tigard's participa- While those efforts
tion, Lake Oswego's water advance, and utility upgrades
demands were on track to still call for a $53 million
exceed the carrying capacity of investment, the price of water
Xhe utility in 2009. is still likely to creep up for
Thats partly because Lake Lake Oswegans, though bonds
l�swegans use dozens of gallons are also an option.
more water per capita than their Local water customers cur-
heighbors. Owing to the city's rently pay 85 cents per 100
large lots and the number of cubic feet of water, set to
±water fixtures in local tomes, increase three cents in July.
Eater usage here is high. Darryl Swan, reporter for
The Lake Oswego City the Tigard-Tualatin Times, con-
Council launched an aggres- tributed to this story
4 CITIES
CO0
0
N
a Draft of water deal is `win win' for cities Markel
kan i
a Lower rates sake mEach city must still decide fore the agreement will be
- � where to set water rates. Lake ready for public coment.
Oswego and Tigard Oswego officials estimate the Based on feedback, officials
FE would both save money partnership will save their rate- could tweak parts of the agree- S �'WOOd
• for water they Heed pars about$63 million in the ment before final approval.
�' cost of water during the next 25 Officials from both cities said Saturday farm(
By YUXING ZHEN6 yew. they were optimistic an agree- market opens f
THE OREGONUN lake Oswego would be the ment would be reached by late
t
Lake Oswego and Tigard off- ng partner during the June or early July. season on May
u
cials last week presented a draft construction, overseeing ex- "I see no big hurdles in terms By ABBY H1
agreement outlining how the pansion and operations lake of any big problems coming THE OREGOI
• cities can partner to build a Oswego would make the pay- up,"said lake Oswego Council- Tonie Tollen wa
2 $135 million water em to ments, and Tigard would in or Ellie McPeak
a tum pay Lake Oswego. Both first gathering of v,
2 serve residents' long-term Once the final agreement is crafts vendors who
0 needs. city councils would need to ap-
Under the ment Lake Prove new facilities and operat- approved, two committees mer Saturdays in
would be created. One would Town's Veterans
LIA o Oswego could take in 38 mil ing budgets. comprise engineering and op- they often were over
lion gallons of water daily from cilias have long-term erations staffers from each city Devotion to a ca
the Clackamas River starting in water problems. to focus on technical issues. off.
2016 and would sell 14 million Tigard's contract to purchase Another would he an oversight The Sherwood SI
gallons each day to Tigard.Lake water from Portland will expire committee comprising two ket opens its new s
Oswego would retain its water in 2016, and the city needs to elected officials from each city. with citywide ban
rights. tap into Lake Oswego's water
Construction of-the system rights.Lake Oswego needs help new sign on Orego
would cost Lake Oswego an es- to pay for a water system it des- Yuxing"=g:503-294-5117, nearly full roster c
timated $52.1 million and Ti- perately needs. yudngdwng@news.onegonian.cwm Sherwood's center
gard about $80.6 million. The lake o residents' de- bine Street in front
difference is because Tigard will library and City Hal
g mand for water could outstrip
be purchasing about 63 percent the city's supply as soon as next The market —
of the new tem, including TIGARD selling vegetables,1
� g year if no changes in water use goods—
new pipes, pumps and other occur. The city last year and other g
materials. launched a water conservation CONTACTS to 1 pm.every Satu
"It has become clearer and campaign, including hiring a September, except
clearer this is an agreement g g Tb"'ti�►Hat�3-63`r4m the date of the ann�
water conservation coordina- 13125 S.W.Hall Blvd,Tigard 97223 Cruisin
that really makes sense and is a tor. Mnyo.Crak pkkm "We're andir
win-win and will save the rate-
payers
Each Lake Oswego resident craigdCaPtigard-or.gov more, e a fe,
gardpayers in Lake Oswego and Ti- getting
„_ uses on average 170 gallons a 503-718-2476 dors eve ear,"sE
Councilor
money, said Tigard day,compared with 118 gallons Co�lo�: the market directc
Councilor Gretchen Buehner.
If approved, the partnership for each Tigard resident. Sydney Sherwood: of Steele Plants.
would require construction to Under the agreement,excess sydneyc&ti)ard-or.gov Tollen, who se
begin as early as next year on capacity in one city's system Nick Wilson: market's board of
parts of the system, which will can be leased to the other city. nickC)tigard-or.gov members the eal
include a larger intake strut- "The more we can conserve Tom woodruff: that were full of pE
ture, transmission system and and pass onto Tigard,the more tomw@tigard-or.gov not sales.
N treatment plant. Tigard would our ratepayers save," said Lake Gretchen Buehner. "There were five
acquire ownership interest in Oswego Councilor John Turchi. gretchenCtigardvr gov and some of us
the system and land in propor- Officials estimated it could city nwow..Craig Prosser there," said Toiler
tion to its share of the water. take about another month be- craig@tigard-or.gov livestock and mini.
Quality living
room furniture made specifically to your order.
ACTUAL THRU TENON ON THESE PIECES. CHAIRS
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AMISH WORKBENCH11 TROUTDALE, COLUMBIA RIVER HWY 503 664`
City of Tigard
13125 SW Hall Blvd
Tigard, OR 97223 i
Phone: 503-639-4171
FAX TRANSMITTAL
Date May 7, 2008
Number of pages including cover sheet 4
To:
The City of King City (Fax No. 503-639-3771)
R� The City of Durham (Fax No. 503-598-8595)
From: Greer Gaston
Co: City of Tigard
Fax#: 503.684.8840
Ph#: 503.718.2595
SUBJECT: Intergovernmental Water Board Meeting Notice and Agenda
MESSAGE:
Please post the attached notice and agenda for the upcoming meeting of the Intergovernmental Water
Board.
Thank you.
IAENO'FAX.DOT
Intergovernmental
Water Board
Serving Tigard, King City, Durham and Unincorporated Area
MEETING NOTICE
WednesdaY, May14, 2008
5 :30p.m.
Tigard Public Works Building
8777 SW Burnham
Tigard, Oregon 97223
Questions? Contact the City of Tigard at 503.639.4171
Intergovernmental Water Board — Agenda
SERVING TIGARD, KING CITY,DURHAM AND THE UNINCORPORATED AREA
MEETING DATE: Wednesday, May 14, 5:30 p.m.
MEETING LOCATION: Tigard Public Works Building
8777 SW Burnham Street
Tigard, OR 97223
1. Call to Order, Roll Call and Introductions
Call the meeting to order, staff to conduct roll call.
2. Approval of Minutes — March 20 and April 8, 2008
Action: Motion to approve the March 20 and April 8, 2008 minutes.
3. Public Comments
Call for comments from the public.
4. Review of the Lake Oswego/Tigard Intergovernmental Agreement Regarding Water System
Facilities, Design, Construction, and Operation - Dennis Koellermeier
Action: No action required; the Board will be asked to make a formal recommendation on this item
at its June 11, 2008 meeting.
5. Discussion of Additional Tenancy in Common Agreements for Properties within the Tigard
Water Service Area - Commissioners Buehner and Carroll
Action: Direction on how the Board would like to proceed with additional tenancy in common
agreements.
6. Discussion on Rewriting/Revising 1993 Intergovernmental Agreements between Durham
and the City of Tigard, King City and the City of Tigard, and the Tigard Water District and
the City of Tigard - Commissioner Carroll
Action: No action required.
7. Water Supply Update - Mr. Goodrich
8. Informational Items
9. Non-Agenda Items
Call for non-agenda items from Board.
INTERGOVERNMENTAL WATER BOARD AGENDA— MAY 14, 2008
City of Tigard 1 13125 SW Hall Blvd.,Tigard,OR 97223 1 503-639-4171 1 www.tigard-or.gov I Page 1 of2
10. Future Agenda Items
■ Make a formal recommendation on the Lake Oswego/Tigard intergovernmental agreement.
■ Presentation by Washington County planning staff regarding Areas 63 and 64.
■ Policy regarding extension of water services outside existing Tigard Water Service Area
boundaries.
■ Review:
- Proposed revisions to the credit for leak policy.
- Proposed revisions to the Billing and Collection of Utility Charges section of the Tigard
Municipal Code.
- The billing insert policy.
11. Next Meeting:
■ June 11, 2008, 5:30 p.m.
Tigard Public Works Building, 8777 SW Burnham Street,Tigard, Oregon
12. Adjournment
Action: Motion for adjournment
Executive Session
The Intergovernmental Water Board may go into Executive Session. If an Executive Session is called to
order, the appropriate ORS citation will be announced identifying the applicable statute. All discussions are
confidential and those present may disclose nothing from the Session. Representatives of the news media
are allowed to attend Executive Sessions,as provided by ORS 192.660(4), but must not disclose any
information discussed. No Executive Session may be held for the purpose of taking any final action or
making any final decision. Executive Sessions are closed to the public.
INTERGOVERNMENTAL WATER BOARD AGENDA—MAY 149 2008
Cityof Tigard 1 13125 SW Hall Blvd.,Tigard,OR 97223 1 503-639-4171 1 www.dgard-or.gov I Page 2 of2
r-aTE.TIME 70-55/02:Z 16:42
"AX NO. it:AHE 393711
DJRA7I Or•. 00:01:18
PAGE43% 04
RESJL7 OK
MODE STANDARD j
ECM
TPANSMISSION' VERIFICATION REPORT
TIME 75/07/2008 16:35
DATE,TIMP* 05/07 16: 33
F4X N0./NAHE 5035988595
DURATION 00:01:19
PAGE(S) 04
RESULT OK
MODE STANDARD
ECM
I '