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07/11/2007 - Packet
i Completeness Review for Boards C ommissions and Committee Records CITY OF TIGARD Intergovernmental Water Board Name of Board, Commission or Committee —3: l II 20 cD Date of eeting 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 came from Greer Gaston's office in the Public Works Building. Kristie Peerman Print Name eF::�..I�- Signature .3 Z4 Date Intergovernmental Water Board Meeting Serving Tigard, King City, Durham and the Unincorporated Area AGENDA Wednesday, July 11, 2007 City of Tigard Town Hall 5:30 p.m. 13125 SW Hall Blvd. Tigard, OR 97223 1. Call to Order, Roll Call and Introductions Call the meeting to order, staff to take roll call 2. Approval of Minutes -June 13, 2007 Motion from the Board to approve the minutes 3. Public Comments Call for comments from the public 4. Autumn Park Homeowner's Association - Credit for Leak Request-Amanda Bewersdorff 5. Report on the Adoption of Intergovernmental Agreement Amendments —IWB Commissioners 6. Consider a Water Building Lease with the City of Tigard—Dennis Koellermeier Motion to approve the water building lease with the City of Tigard 7. Consider a Recommendation to the Tigard City Council Regarding an Amendment to the Joint Funding Agreement for the Tualatin Basin Water Supply Project(Hagg Lake Dam Raise) - Dennis Koellermeier Motion recommending the City of Tigard approve the third amendment to the Joint Funding Agreement for the IWRM Water Supply Feasibility Study 8. Consider a Recommendation to the Tigard City Council Regarding Participation in an Oregon Water/WastewaterAgency Response Network (ORWARN) Mutual Aid and Assistance Agreement-Dennis Koellermeier Motion recommending the City of Tigard approve the Oregon Water/Wastewater Agency Response Network(ORWARN) Mutual Aid and Assistance Agreement 9. Water Supply Options - Dennis Koellermeier 10. Informational Items-Dennis Koellermeier 11. Non-Agenda Items Call for non-agenda items from Board. 12. Next Meetings - ■ July 17, 2007, 5:30 p.m. -Dinner with Tigard and Lake Oswego City Councilors and Staff 6:30 p.m. -Joint Meeting with the Tigard and Lake Oswego City Councils City of Tigard Town Hall, 13125 SW Hall Blvd., Tigard Oregon Continued ■ August 8, 2007, 5:30 pm Location to be announced 13. Adjournment 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. Questions? Contact the City of Tigard at 503.639.4171 Sign-in Sheet Intergovernmental Water Board Meeting Date: 7- 1 1 - D'f- 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 �?7-2 .� y g' vi. I q ( --- A C� 7y� Intergovernmental Water Board (IWB) Meeting Minutes July 11 , 2007 City of Tigard Town Hall 13125 SW Hall Blvd. Tigard, OR 97223 Members Present: Gretchen Buehner Representing the City of Tigard Julie Russell Representing the Tigard Water District Bill Scheiderich Member at Large Dick Winn Representing the City of King City Members Absent: Patrick Carroll Representing the City of Durham Staff Present: Public Works Director Dennis Koellermeier Water Quality & Supply Supervisor John Goodrich Accounting Supervisor Amanda Bewersdorff 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. Approval of Minutes—June 13, 2007 Commissioner Buehner motioned to approve the June 13, 2007, minutes; Commissioner Winn seconded the motion. The minutes were approved by unanimous vote, with Commissioners Buehner, Russell, Scheiderich, and Winn voting yes. 3. Public Comments: None 4. Autumn Park Homeowners Association - Credit for Leak Request Ms. Bewersdorff provided background information regarding this credit for leak request. Based upon the prescribed process, a credit of$1,486.80 was calculated. Credits exceeding $500 require IWB approval. Commissioner Buehner motioned to approve the adjustment as submitted; Commissioner Winn seconded the motion. The Board briefly discussed the credit for leak policy, and Mr. Koellermeier offered to provide the Board with additional information on this topic. Commissioner Scheiderich requested a report on the matter. The motion was approved by unanimous vote, with Commissioners Buehner, Russell, Scheiderich, and Winn voting yes. Intergovernmental Water Board Minutes July 11,2007 1 5. Report on the Adoption of Intergovernmental Agreement Amendments Commissioner Scheiderich reported the City of Durham had approved the resolution to execute the tenants in common agreements and the bargain and sale deeds, and to amend the 1993 intergovernmental agreement. However, the Durham City Council asked for clarification in the two tenants in common agreements where it states valuation shall be in accordance with the 1994 Economic and Engineering Services (EES) study. Commissioner Scheiderich said the Durham City Council wondered if valuation of a future sale was confined to the dollar value as opposed to the percentage of ownership. He added the value of the assets in 1994 will likely differ from the value of the assets at the time of any action. Mr. Koellermeier referenced a handout containing a section from the EES study. This handout is on file in the IWB record. He called the Board's attention to page 8, "Utility Plant in Service," which detailed the methodology used to determine the value of fixed assets (other than land) based on a depreciation schedule. Since land does not depreciate, it would be appraised at the time of action. Commissioner Scheiderich responded that the City of Durham was not questioning the depreciation of personal property; this value is fixed. It was noted the EES study lists a 33 year depreciation schedule for buildings. Commissioner Winn confirmed that the methodology for calculating the percentage of ownership had not changed. However, based on the application of the methodology, the actual percentage of ownership will fluctuate over time. To address the City of Durham's concern regarding the agreements, Commissioner Scheiderich suggested modifying the reference to the EES study. The modification could indicate the percentage of ownership should be adjusted based on the methodology. Based on Board consensus, Commissioner Scheiderich directed staff to have Tigard's city attorney clarify the tenancy in common agreements by adding language regarding valuation according to the 1994 EES study at the request of the Durham City Council. This could be accomplished by revising the agreements and initialing the changes or as an addendum. Commissioners Buehner and Winn reported the City of Tigard and the City of King City had also adopted the resolution. Commissioner Russell stated that the Tigard Water District (TWD) voted to adopt the resolution as well. She added there was a possible issue regarding public meeting notice and the TWD's decision may be challenged. 6. Consider a Water Building Lease with the City of Tigard Mr. Koellermeier informed the Board two changes had been made to the lease since they last reviewed it. Section 2.2-Escalation was added which requires adjustments in rent at five year intervals. The second change occurred on Exhibit B and under section 2.1-Base Rent and 2.3-Rent Credits where a miscalculation was corrected to reflect the Intergovernmental Water Board Minutes July 11,2007 2 fact that improvements were annualized for a term of eleven and one-half years, instead of twelve and one-half years. This change affected some of the earlier calculations. To address questions on how the rent was determined, Mr. Koellermeier called the Board's attention to a document entitled, "Background Information on Rental Calculations for the Water Building Lease." This handout is on file in the IWB record and describes the process used to determine rental rates. Commissioner Buehner motioned to approve the commercial lease between the IWB and the City of Tigard for the Water Building; Commissioner Winn seconded the motion. Ken Henschel, 14530 SW 144th Avenue, TWD Commissioner-Elect, commented that he thought the TWD had tabled the issue of the lease at its June meeting. Bert Cornick, 14640 SW 141 s`Avenue, Tigard, Oregon, TWD Commissioner-Elect, added that he had not heard the TWD authorize the lease. He raised the issue of due diligence. Mr. Cornick also expressed concern that the City of Tigard had drawn up the lease and that the lease had not been properly reviewed. He questioned Mr. Koellermeier's knowledge in establishing the rental value. Commissioner Russell expressed a desire to review the background information with the TWD. The motion failed, with Commissioners Buehner and Winn voting yes, and Commissioners Russell and Scheiderich voting no. The lease will be considered at the IWB's next meeting. 7. Consider a Recommendation to the Tigard City Council Regarding an Amendment to the Joint Funding Agreement for the Tualatin Basin Water Supply Project (Hagg Lake Dam Raise) Mr. Koellermeier briefed the Board on this item, explaining title transfer work had been added to the project. This addition has driven up the cost and accelerated the schedule. The Board has supported the initial agreement, and a subsequent first amendment. A second amendment to the agreement was withdrawn. In order to remain in the project, the City of Tigard needs to execute the third amendment and continue to pay its share. Commissioner Winn motioned to approve the amendment; Commissioner Buehner seconded the motion. The motion was approved by unanimous vote, with Commissioners Buehner, Russell, Scheiderich, and Winn voting yes. 8. Consider a Recommendation to the Tigard City Council Regarding Participation in an Oregon Water/Wastewater Agency Response Network (ORWARN) Mutual Aid and Assistance Agreement Mr. Koellermeier briefed the Board on this item. He explained an Oregon-based group, ORWARN, was being formed. The group's mission is to promote statewide emergency preparedness, disaster response, and mutual assistance for public and private water/wastewater utilities. The agreement is voluntary and doesn't obligate the Board in Intergovernmental Water Board Minutes July 11,2007 3 any way, but does establish a framework for providing or accepting assistance. Most Portland area agencies have executed the agreement, including the City of Portland. Commissioner Buehner motioned to recommend the City of Tigard enter into the Oregon Water/Wastewater Agency Response Network; Commissioner Winn seconded. The motion was approved by unanimous vote, with Commissioners Buehner, Russell, Scheiderich, and Winn voting yes. 9. Water Supply Options Mr. Goodrich provided the following information: ■ The area is experiencing high temperatures and water consumption has been in the 12 to 13 million gallons per day (mgd) range. ASR 2 is back online. ■ Native groundwater wells are on. • Water sources are as follows: - Per the City of Tigard contract, 6 mgd is coming from the Portland Water Bureau - 1.5 mgd is coming from the Joint Water Commission - 1 mgd is coming from Lake Oswego Commissioner Scheiderich requested a weekly or daily graphic representation of water consumption, by source if available. The Board discussed conservation efforts. Ken Henschel, 14530 SW 144'h Avenue, Tigard Water District Commissioner-Elect, inquired about how water smart rebates were publicized. Mr. Goodrich responded that he would look into it and check on mailing costs. Mr. Koellermeier reported ASR 3 was at depth. Once the design of the casing is completed, production testing will take place. Work should be completed by mid-August. 10. Informational Items Mr. Koellermeier informed the Board the new reservoir is in the land use process. The timeline is to advertise the construction project in August, award the bid in September, and begin the earthwork in October. Mr. Koellermeier gave a brief update on the progress of the water building renovation. 11. Non-Agenda Items: The Board discussed appointing a representative from the IWB to serve on a task force related to the Lake Oswego/Tigard partnership. Commissioner Scheiderich stated the Board would hold off on making this appointment until Commissioner Carroll was in attendance. Mr. Koellermeier said Clean Water Services was working on a response to a citizen request regarding the use of reclaimed water in the downtown area. There are permitting and cost issues to be researched and this issue with come back to the Board at a future meeting. Commissioner Scheiderich inquired about irrigating with creek water. Mr. Koellermeier discussed water rights through the Willamette River Water Coalition (WRWC). The state has given the application a favorable recommendation. Intergovernmental Water Board Minutes July 11,2007 4 WaterWatch, who challenged the application, has withdrawn most of their concerns. The water rights have been consolidated and will ultimately be assigned to the WRWC. Tigard is guaranteed 22 mdg of these water rights. Mr. Koellermeier reported the Tualatin Valley Water District's (TVWD) current preferred water source option is the Joint Water Commission. The TVWD is in the process of reviewing and updating costs. 12. Next Meetings— ■ July 17, 2007 6 p.m. — Dinner with Tigard and Lake Oswego City Councilors and Staff 7 p.m. -Joint Meeting with the Tigard and Lake Oswego City Councils City of Tigard Town Hall, 13125 SW Hall Blvd., Tigard Oregon ■ August 8, 2007, 5:30 pm Location to be announced 13. Adjournment: Commissioner Scheiderich adjourned the meeting at 6:50 p.m. Greer A. Gaston, lWB Recorder Date: Intergovernmental Water Board Minutes July 11,2007 5 Agenda Item No.: IWB Meeting Date: Intergovernmental Water Board (IWB) Meeting Minutes June 13, 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 George Rhine 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 Quality/Supply Supervisor John Goodrich City Attorney Tim Ramis Accounting Supervisor Amanda Bewersdorff 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 Scheiderich called the meeting to order at 5:36 p.m. 2. Approval of Minutes — May 9, 2007 Commissioner Carroll motioned to approve the May 9, 2007, minutes; Commissioner Buehner seconded the motion. The minutes were approved by unanimous vote. Note: The following agenda items were considered together. 4. Novelo Credit for Leak Request 5. Novelo Appeal of Leak Credit Ms. Bewersdorff provided background information regarding this credit for leak request. Based upon the prescribed process, a credit of$650.84 was calculated. Credits exceeding $500, or credits for repairs taking more than ten days, require IWB approval. Ms. Bewersdorff also explained the Novelos were requesting a credit in additional to the $650 mentioned above. Their remaining balance after the credit was $740.82. Ms. Bewersdorff recommended approval of the initial credit, but suggested the Board not approve an additional credit until the Novelos processed the balance of the bill through their insurance company. If denied by the insurance company, the issue could be brought before the Board at a future meeting. Intergovernmental Water Board Minutes June 11,2007 1 I A timeline for payment and processing the insurance claim was discussed. Commissioner Carroll motioned to; ■ Issue the $650 credit ■ Allow the Novelos a maximum of three months to resolve the remaining balance ($740) with their insurance company ■ If required, bring the matter back to the Board Commissioner Buehner seconded the motion. The motion was approved by unanimous vote. 3. Public Comments Marland Henderson, 11795 SW Katherine Street, Tigard, described his background serving on the Water Resource Board and his involvement with the redevelopment of the downtown. Mr. Henderson distributed a handout to the Board. This document is on file in the IWB record. He proposed using reclaimed or recycled water in conjunction with upcoming improvements to Tigard's downtown area. Mr. Henderson proposed the installation of a one-foot transmission pipe for reclaimed water be included in the City of Tigard's Burnham Street improvement project. Eventually this pipe could be connected to a future pipeline which would extend from the Durham treatment plant, along Hall Boulevard, to Burnham Street. Mr. Henderson said the reclaimed water could be used in irrigation and cleaning, as a water supply for toilets, and to enhance the creek. Mr. Henderson asked for the Board's endorsement of his proposal. The Board decided to invite a representative from Clean Water Services to make a presentation at an upcoming meeting in order to obtain information on the capacity, logistics, and feasibility of such a project. Mr. Henderson was invited to the Board's next meeting. Note: The following agenda items were considered together. 6. Discussion of Tenancy in Common Agreements, Amendments to the 1993 Intergovernmental Agreements, and Bargain and Sale Deeds, and a Commercial Lease of the Water Building 7. Consider a Tenancy in Common Agreement for the Water Building 8. Consider a Tenancy in Common Agreement for the Canterbury Property 9. Consider a Commercial Lease with the City of Tigard for the Water Building Mr. Koellermeier provided a brief introduction to this item. He stated the legal documents were intended to implement changes the Board had been discussing for more than two years. Mr. Ramis brought updated packets of materials and provided them to the Board and audience members. The packets contained the following: ■ Resolution (unique to each jurisdiction) ■ Amendment to 1993 Intergovernmental Agreement (IGA),(unique to each jurisdiction) ■ Tenancy in Common Agreement for the Canterbury Property ■ Tenancy in Common Agreement for the Water Building ■ Bargain and Sale Deed for the Water Building Intergovernmental Water Board Minutes June 11,2007 2 ■ Bargain and Sale Deed for the Canterbury Property ■ Water Building Commercial Lease These materials are on file in the IWB record. Mr. Ramis provided introductory comments. He noted the legal documents reflected the Board's input during previous discussions. The concepts addressed in the documents include: ■ Vesting ownership in the IWB member jurisdictions based on a percentage formula and, thereby, resolving ownership questions. This would remove the issue of"other" versus "system" assets. ■ Providing for control of property through tenant in common agreements which would be based on either the majority vote of the four member jurisdictions, or the majority vote of the four member jurisdictions and the member-at-large. ■ Assigning a standard approach to the division of maintenance responsibilities between landlord and tenant with regard to the City of Tigard leasing the water building. Mr. Ramis summarized the documents as follows: Resolution This is the fundamental authority document whereby the governing (unique to each body authorizes its representative to the IWB to take action on the jurisdiction) amendment to the IGA, bargain and sale deeds, and the tenant in common agreements Amendment to the Amends IGAs between the City of Tigard and Durham, King City, IGA and the Tigard Water District (TWD) (unique to each jurisdiction) Key feature: Item 4, page 2 - Three jurisdiction votes are required to sell or purchase real property. The Board requested the member jurisdictions should be listed in this section of the amendment. They also agreed on dividing this section into two paragraphs, one establishing criteria to sell the property, and one establishing a quorum of the Board. Tenancy in Key Features: Common Item 5, page 2 - Ownership Interest Agreement for the This is based on a formula spelled out in the 1993 IGAs. Canterbury Property Commissioner Buehner requested some kind of system be established regarding the reallocation of ownership proportions. This is to take place every 24 months. Commissioner Carroll requested language be added stating ownership proportions would be recalculated at the time of sale. Item 18, page 4 - Restriction's on Sale of Owner's Interest If an Owner sells, the sale must be to one of the other member jurisdictions. Intergovernmental Water Board Minutes June 11,2007 3 Item 19, page 5 - Sale of Park Property Allows the sale upon a vote of three out of the four Owner jurisdictions. The Board discussed item 19's reference to item 11. It requested item 11 reflect proceeds be placed directly into the capital improvement fund and not left to the Board's discretion. The Board also discussed amending the original IGAs, at a later date, to state proceeds be placed in the capital improvement fund. Mr. Ramis stated he would change the language in all the documents based upon the Board's direction on this matter. Item 21, page 5 - Required Vote for Determination Addresses who votes on issues other than the sale of the property The Board discussed what would happen to money deposited in a capital improvement fund should one of the member jurisdictions withdraw. The withdrawing jurisdiction would have a claim on a certain percentage of money in the capital improvement fund. Mr. Ramis responded it would be treated as a provisional withdrawal and if an agreement could not be reached, the matter would be settled by the County Board of Commissioners. The Board concluded further review and revision of the original IGAs will be needed to address this matter. Current practice has been for all five members of the Board, including the member-at-large, to vote on issues other than those related to the sale of property. The Board indicated it wanted to continue this practice and would like item 21 amended accordingly. Mr. Ramis stated he would make this change in both Tenancy in Common Agreements. Mr. Koellermeier said partitioning of the Canterbury property will begin after the legal documents are finalized. Mr. Ramis noted the agreement describes the process for selling the surplus property, but the Board needs to refine details such as the size of the property, what's on the property, etc. Tenancy in Key Features: Common Item 19, page 4 - Right of First Refusal Agreement for the The City of Tigard has the right of first refusal if the majority of the Water Building owners decide to sell the property. Timelines regarding the sale process are specified. Intergovernmental Water Board Minutes June 11,2007 4 Bargain and Sale These reflect the same ownership percentages as the other Deeds for the documents. Water Building and Canterbury Commissioner Buehner asked that the deeds reference the fact Properties that ownership interest was subject to review every two years. Commissioner Carroll requested language regarding recalculation at the time of sale also be added. Water Building Lease between the IWB and the City of Tigard Commercial Lease Key Features: Item 1.1, page 2 - Original Term The term of the lease runs through 2018. Item 1.3, page 2 - Renewal Options There are renewal options for two successive terms of five years each. The Board discussed including a "termination for sale" in the lease, but ultimately it decided such a provision was not needed. Should someone want to purchase the property, they would need to negotiate an acceptable deal with the landlord (owners) and the tenant (City of Tigard). Mr. Ramis asked the IWB Commissioners to take the resolution back to their respective jurisdictions for consideration. Mr. Ramis said he or Mr. Koellermeier could attend these meetings if requested. Mr. Ramis also offered to talk with any member jurisdiction's legal counsel, should they have questions. Note: Commissioner Scheiderich left the meeting at 6:29 p.m. i Mr. Koellermeier described the calculations used in Exhibit B of the lease. Based upon Portland Metropolitan averages for office and warehouse space, the water building should generate $178,891 per year in rent revenue. Water operations currently account for $104,715 of this space. This results in an annual rental balance of$74,175 that is not related to water functions. Mr. Koellermeier noted a 70 percent City of Tigard rent credit, as Tigard has 70 percent ownership in the property. Mr. Koellermeier advised the exhibit provided was not the correct version. He focused on explaining the concept of how the rent was calculated, since some of the figures were not accurate. Building improvements from the walls out, typically the responsibility of the landlord, amounted to $177,379. These improvements were paid for by the City of Tigard out of a non-water fund. Amortized on an annual basis over the terms of the lease, this amount will be credited against the rent owed by the City of Tigard. Commissioner Carroll said the Board had agreed rent from non-water activities was going to be placed in the water budget. He questioned the 70 percent rent credit for the City of Tigard asserting rent should go into the water fund. He stated the City of Tigard Intergovernmental Water Board Minutes June 11,2007 5 should not receive a 70 percent rent credit as listed on the exhibit. The City of Tigard should pay about $60,000 ($74,175 rent minus $14,190 improvement credit) in rent for non-water activities located in the water building. Commissioner Winn suggested the lines related to the City of Tigard ownership credit be removed from the exhibit. The Board concurred the City of Tigard should pay approximately $60,000 in annual rent. Mr. Koellermeier said the exhibit would be changed to reflect the Board's direction. The Board agreed for the City of Tigard to pay an annual rent payment which would be placed in the water fund. This payment would be made in July. Commissioner Carroll requested the payment date be specified in the lease. Note: Commissioner Rhine left the meeting at 6:45 p.m. Commissioner Carroll asked for public comment on this item. Ken Henschel, 14530 SW 144"'Avenue, and Commissioner-Elect for the TWD, said he had received legal advice and advice from the Special Districts Association of Oregon to the effect that an IGA could not be amended without going through a process of public comment, hearings, etc. He expressed concern that the Board should employ a more formal process. Mr. Ramis said he had spoken with the TWD's legal counsel and the TWD counsel could advise Mr. Henschel on the matter. Based on questions from the Commissioners, Mr. Ramis said he was unaware of any statue requiring an extreme and lengthy process. Mr. Henschel referred to the lease spreadsheet and requested background information on the total amount of square footage, the amount of water and non-water square footage, and how the actual calculations were prepared. Mr. Henschel expressed concern that Mr. Koellermeier had researched and determined the rental rates. He suggested this information should have been obtained by an outside, non-biased source. He recommended that since the City of Tigard had prepared the lease, determined rental rates, calculated square footage, and performed the building asset evaluation, the Board should secure an outside opinion to be sure the information was correct. Commissioner Buehner responded there was clear delineation of the building's water and non-water square footage. Mr. Koellermeier said he would furnish the Board with the background information used to establish the rental rates. Mr. Henschel inquired about a sublease. Mr. Ramis responded this was addressed in item 13. Julie Russell, 12662 SW Terraview Drive, and Commissioner-Elect for the TWD, expressed concern about a new voting procedure which was based on the percentage of ownership. Intergovernmental Water Board Minutes June 11,2007 6 Commissioner Carroll responded this language had been removed from the lease. Ms. Russell commented, based on legal opinion, the appropriate procedure to consider an amendment to the IGA would be to: ■ Have owner jurisdiction and legal counsel review ■ Provide public notice ■ Provide for a period for public comment She added the IGA specifically states on page 14, item 15, that any amendment must be approved by governing bodies. Commissioner Carroll responded the governing bodies were being asked to approve the amendments, and the IWB would consider the documents in July following owner jurisdiction approval. He added the Board's actions made the IGAs more fair and equitable documents, documents which represented the interests of the group as a whole. Commissioner Buehner added it was in the group's best interest for revenues to be placed in the water fund as there would be sizable expenses associated with the implementation of the long-term water plan. Ms. Russell stated the timing of this matter was questionable. She urged the Board to follow correct procedures and provide opportunities for public comment. She said the public was concerned and would assume Tigard was trying to do something inappropriate. Several Board members responded they had been working on this matter for more than a year. Bert Cornick, 14604 SW 141st Avenue, and Commissioner-Elect for the TWD, expressed his support for removing Tigard's ownership credit from the lease. Mr. Cornick added that it would behoove the Board to have an outside consultant evaluate the rent to avoid the appearance of any impropriety. He commented commercial brokers could be contacted to provide a letter of opinion. Several Commissioners stated Mr. Koellermeier had researched the rental rates at the Board's request. Mr. Koellermeier offered to provide the Board with the background information used to determine the rates. Mr. Henschel and Mr. Cornick asserted an outside opinion would fall under due diligence. Mr. Cornick continued by saying Mr. Koellermeier was not technically qualified to determine rental rates and these rates may come into question at some later date. Commissioner Carroll asked if the Board wished to revisit its decision to have Mr. Koellermeier determine the rental rates. None of the IWB members expressed an interest in doing so. Commissioner Carroll suggested the TWD Commissioners-Elect, after taking office, could do their own evaluation if they so desired. The TWD representative could present that information to the IWB at their next meeting. 10. Water Supply Options ■ Mr. Goodrich noted there was a recent peak of 12.5 million gallons per day (mgd). Intergovernmental Water Board Minutes June 11,2007 7 ■ Current water suppliers/sources include: - The Joint Water Commission - The City of Lake Oswego - A City-owned groundwater well - The Portland water contract ■ The City of Tigard is not taking any water from ASR wells yet. Injection has ceased for the summer. ■ The prediction is for a normal summer, and the City is well prepared to meet demand. Mr. Koellermeier reported the new ASR well is at a depth of 900-feet and there appears to be more water in this well than was found at this point in the existing 2.5 million gallon well. This well is slated to be operational by 2009. 13. Next Meetings— • June 19, 2007, 6:30 p.m. Joint Meeting with the Tigard City Council Tigard City Hall, 13125 SW Hall Blvd., Tigard Oregon ■ July 11, 2007, 5:30 pm Location to be announced ■ July 17, 2007, 6:30 p.m. Joint Meeting with the Tigard and Lake Oswego City Councils 11. Informational Items Mr. Koellermeier informed the Board that tours of the Barney Reservoir would be offered again this summer. None of the Commissioners expressed an interest in taking the tour. 12. Non-Agenda Items: None 14. Adjournment: At 7:19 p.m. Commissioner Winn motioned to adjourn the meeting; Commissioner Buehner seconded the motion. The motion was approved by unanimous vote. Greer A. Gaston, IWB Recorder Date: Intergovernmental Water Board Minutes June 11,2007 8 Agenda Item No.: IWB Meeting Date: V MEMORANDUM TO: Intergovernmental Water Board FROM: Amanda L. Bexversdorff, Accounting Supervisor YVI RE: Autumn Park Homo,,vners Association Utility Account DATE: June 20,2007 The attached credit for leak request is being forwarded to you for your approval at the next scheduled meeting on July 11,2007. The method used in calculating the amount of the credit is based on existing policy and there are no extenuating circumstances to this particular request. As noted in the request,a leak was discovered in their irrigation system due to a snapped drain valve at the double check valve. The leaf:was repaired on May 1,2007. The read taken on June 6,2007 indicates that the problem at the site has been taken care of. The credit in the amount of$1,486.80 was calculated for the billing period of February 7,2007 to June 6,2007 and requires your Board approval before processing. Please find attached a history of meter consumption and all documentation of the leak being repaired submitted by the customer. The customer has been notified of the next scheduled Intergovernmental Water Board meeting so they may attend if they so desire. J If you have any questions regarding this request,please feel free to call me directly at 503-718-2497. i MAY. 15. 2007 8:49AM STERLING COMM. MGMT, NO. 2568 F', 2 ' I REQUEST FOR.ADJUSTMENT DUE TO A LEAK The City of Tigard has a policy of issuing partial credits for leaks that are repaired in a timely q manner. The city expects leaks to be zepairedwithin ten days of discovery. Credits are based on your average usage for the same period in previous years. This average.is deducted from the total consurripaoa used during the time of the leak. The excess usage is charged at the wholesale rate of water,with the difference between wholesale and resale cast deducted from the utWq account as the Credit for Laak Please describe the specific circumstances of your requmt O/ �—�'— t� , M to c.�! f ILL•h 5 G y7 r r JJ 1L"� jG ADI n 9 /�/� W-tri Dzte leaf-found: -2 '1 Date leak repaired; 2 V 7 Accotmt:#; .4 L;72'--n� Location of Service; —r l�iL1T v,y Ute✓ , � tS" r-- Customer Name: A ` �+' ?` FZ, _ Mailing,Address: Street Address City State Zip Phone DOCUMENTATION YOU MUST SUBMIT COPIES OF PLUMBER'S BILLS AND/OR RECEIPTS FOR PARTS, REQUIRED TO PIX THE LEAK. FOR OFFICE USE ONLY $2.20 U18 W6 32.13 X2.74 - 1.140 = �Q jt ( � RES MUR COtA IND Muicup Previous years usage: 0 g l pC = #periods used be Y3,3LL> A--L- Leak Period Leak orf Mahup J Credit AAwtxnent Total Credit: -o q'D Date Issued: { t` aoo'� Issued Bp�� Utility Billing Account History Report u User Name: amanda City Name: CITY OF TIGARD Printed: 06/20/2007- 4:39:PM Customer Name: AUTUMN PARK TOWNHOMES Owner name: AUTUMN PARK TOWNHOMES Account Status: Active Customer Address: C/O STERLING COMMUNITY MService Address: SW HUNTINGTON &HAWKSB Connect Date: 07/28/2006 Final Date: PO BOX 25469 PORTLAND,OR 97298 Home Plione: (503)246-8806 Ext. Total Acct Balance: 956.44 Business Pbone: ( ) - Ext. Deposits: 0.00 Refunds: 0.00 Customer Number: 037234 001 Reference Number: 1700874 Tran Date Tran Type Amount Description Water Sewer SWM Penalty Mise StrMnt Sery 7 Sery 8 Current Balance By Service 956.44 0.00 0.00 0,00 0.00 0.00 0.00 0.00 06/13/2007 Balance 956.44 956.44 06/13/2007 Billing 956.44 956.44 05/21/2007 Payment -1,794.88 -1,794.88 04/18/2007 Balance 1,794.88 1,794.88 04/18/2007 Billing 1,794.88 1,794.88 03/06/2007 Payment -5.66 -5.66 02/14/2007 Balance 5.66 5.66 02/I4/2007 Billing 5.66 5.66 01/24/2007 Payment -52.24 -52.24 12/13/2006 Balance 52.24 52.24 12/13/2006 Billing 52.24 52.24 11/06/2006 Payment -326.31 -326.31 10/18/2006 Balance 326.31 326.31 10/18/2006 Billing 326.31 326.31 Route Sequence Serial 0017-0874- 16315 Read Date Reading Consumption 06/06/2007 2,715 347 04/11/2007 2,368 653 02/07/2007 1,715 0 12/07/2006 1,715 17 10/12J2006 1,698 124 UB-Account History List( Printed: 06/20/2007- 4:39:PM) Page: I MAY. 15. 2007 8: 49AM STr RL ING COMM. MGMT. NO. 2568 P, 33 Page SHOWPLACE Landscape SeNces Invoice Invoice E Account No. 28906 1030 Date Due Date AUTUMN PARK 05101/07 05/20107 STERLING COMMUNITY MANAGEMENT INC. Invoice Total: P.O.BOX 25469 PORTLAND,OR 97296 $1,200.00 REMIT TO: SHOWPLACE LANDSCAPE SERVICES Services Rendered AVAUTUMN PARK ' SG 130TH&WOODRIDGE TIQARD OR 97223 Service Charge 1.50%Imonth added to overdue accounla. Date Description Amount 05/01/07 -Repelr turf damage,install 5-g M.viburnum @ 10830 SW Huntington ad 05/01/07 —Repair snapped drain valve @ double check valve 135.00 05/01107 Landscape Maintenance Services for Apr ; J I Sub Total: 1,200.00 Tax: 0.00 Invoice Total: $1,200.00 Message: Reach Us 6y E-Mail At: office@showplacelandscape.net Please Reference Invoice#on Remittence. P.O. BOX 746 - WILSONVILLE,OREGON 97070 503/682-6006 - FAX 503/682-0676 ' Fri: its d WaAr b&*,tf 51 f ri 4-s5ef3 ; ba ill-ties SECTION 11 Fj/►&L kq0tLt BASIC INFORMATION Noitmht--r 00 r ' A. INTERGOVERNMENTAL AGREEMENT B(�� Fir►nrn,��.,�d n eer- In arviC.e_%a..) �C . An intergovernmental agreement relative to water service was made between the Tigard Water District (the District), the City of Tigard, the City of Durham and the City of King City in December, 1993. The agreement appears as Appendix A to this report. The agreement includes within its 15 pages: a) Mission Statement rn o b) Term Z c) Intergovernmental Water Board a) a) d) Division of Original District Assets 2t m -0 e) Asset Ownership/Water Rates/Revenue _� C fj Indebtedness m °' g) Services Provided by Tigard (City) _ Q h) Rules and Regulations i) Extension of Services m j) Employee Benefits/Personnel `? a k) Annual Meeting =3 1) Attorneys Fees co m) Applicable Law n) Ratification I ai o) Amendments m o p) Effective Date Of great importance to this project is the section on the Division of Original District Assets, which are divided into two groups. They are defined and divided by the agreement, as quoted next. "4. Division of Original District Assets. A. Pursuant to ORS 222.540(4), the District agrees that the division of assets after withdrawal from the original District by the Cities shall be consistent with the following concepts: (1) Assets include real, personal and intangible property. 'Intangible property' includes but is not limited to: moneys, checks, drafts, deposits, interest, dividends and income. (2) Assets will be divided into two groups: 3 a. System Assets: Assets necessary for the operation of Tigard's water supply system throughout the original District, not including those "other assets" of Tigard. Personal and intangible property are system assets. Water mains, service installations, structures, facilitates, improvements or other property necessary for operation of the City Tigard's water supply system throughout the ` original District are system assets. b. Other Assets: Assets not necessaryfor the operation of the City of Tigard's water supply system throughout the original District. Other assets shall become the property of the jurisdiction in which the asset is located. Water mains, service installations, structures, facilities, improvements or other property not necessary for the operation of the City of Tigard's water supply system throughout the original District are other assets. B. All system assets and other assets shall be pledged by the Cities and the District to Tigard. All system assets and other assets shall be managed by Tigard and shall be utilized by Tigard in order to provide water services to properties, residences and businesses in the original District. C. Should one of the Cities or the District terminate its water service agreement with Tigard, the Cities' and the District's proportionate interest in a system asset shall be determined based upon the following formula: Jurisdiction's Proportionate Interest = (A+B+C)/3 A = Jurisdiction's Percentage of Current Consumption in original District B = Jurisdiction 's Percentage of Current Real Market Value in original District C = Jurisdiction's Percentage of Current Meters in original District The Cities' and the District's proportionate interest in a system asset capital improvement shall be based upon the capital improvement's depreciated value. The depreciated value shall be based upon the useful life of the capital improvement under generally accepted accounting principles using a straight line method of depreciation. " 4 i The Request for Proposals stated that the jurisdictions' proportionate share of the system assets shall be determined by the foregoing formula given in the agreement. Basic data for the formula are given in the following Table II-1: Table II-1 Basic Data Jurisdiction Consumption(') RMVJb) Meters(`) District 284,282ccf $388,224,542 2,091 Tigard 1,347,248 1,460,215,489 8,565 King City 99,110 121,669,954 1,019 Durham 32,537 58,547,786 262 Consumption is 100 cubic feet for fiscal year 1992-93 per SE Washington County Joint Water Agency. (b) Real market value for fiscal year 1993-94 per Washington County Tax Assessor. (0 Total meters as of December 31,1993 per City of Tigard. Application for the apportionment formula yields the percentages given in Table H-2. PP PP Y p 8 TABLE II-2 Proportionate Interests Percentage Proportionate Jurisdiction Consumption RMV Meters Interests TWD 16.12% 19.14% 17.52% 17.59% Tigard 76.41% 71.97% 71.75% 73.38% King City 5.62% 6.00% 2.19% 4.60% Durham 1.85% 2.89% 8.54% 4.43% 100.00% 100.00% 100.00% 100.00% -- j In certain cases, `other assets" are shared by two or three jurisdictions. For instance, Reservoir No. 4 located on Beef Bend Road is used by the District, Tigard and King 5 City. In this case and others comparable to it, the percentage proportionate interests stated in Table II-2 were used to calculate appropriate percentages as given in Table II-3. TABLE U-3 "Other Assets" Percentages for Allocations Jurisdiction's Sharing Percentage to Each Jurisdiction District Tigard King City Durham District, Tigard, King City 18.41% 76.78% 4.81% 0% I District, Tigard 19.34% 80.66% 0% 0% Tigard, Durham 0% 94.31% 0% 5.69% B. AUDITOR'S REPORT Financial data used in this project are derived from "Report on Audit of Financial Statements and Supplementary Data—for the six months ended December 31, 1993" prepared by Southeast Washington County Joint Water Agency for Coopers & Lybrand, independent accountants. The balance sheet is reproduced herein as the next page. 6 i ASSETS Current Assets: Cash and cash equivalents $ 3,711,838 Investments 102,875 Accounts receivable 478,869 Inventory of materials and supplies 110,664 Other current assets 13,006 Total current assets 4,417,252 Deferred compensation investments, designated for deferred compensation benefits 331,059 Utility plant in service, at cost, net of accumulated depreciation 20,872,627 25.620.938 LIABILITIES AND AGENCY EQUITY Current liabilities: Accounts payable $ 129,352 Other accrued liabilities 96,485 Total current liabilities 225,837 Deferred compensation plan liability 331,059 Total liabilities 556,896 Agency equity: I Contributed capital 24,762,704 Retained earnings 301,338 I Total agency equity 25,064,042 2_S_6 0.938 7 The greatest amount of assets is represented by "Utility plant in service, at cost, net of accumulated depreciation." Elements of this asset and their balances are stated in the audit as shown in Table II-4: TABLE II-4 Utility Plant In Service Balances December 31, 1993 Land $ 692,559 Buildings 1,409,745 Improvements other than buildings 24,087,056 Machinery and equipment 1,437,703 27,627,063 Accumulated depreciation (6,7544356) $20872,627 �I "Buildings" includes structures and related improvements other than pump houses, �i reservoirs, meter and value vaults. "Improvements other than buildings" includes all pipelines, associated appurtenances, reservoirs, pumping stations, meter vaults, water N wells and other hydraulic facilities that convey or control the flow of water. The audit includes as a note to the financial statement the following text related to utility plant in service: I "Utility Plant in Service Utility plant in service is stated at cost. Depreciation is computed on assets placed in service, using the straight-line method, over their estimated useful lives as follows: Buildings 33 years Supply and distribution lines 50 years �! Wells, reservoirs and pump stations 10 to 40 years Machinery and equipment 5 to 10 years i 8 i ' Normal maintenance and repairs are charged to operations as incurred. Expenditures for major additions, improvements and replacements are capitalized. Upon disposition of such assets, the accounts are relieved of the related costs and accumulated depreciation and resulting gains or losses are reflected in income. " C. BASIC DATA DEVELOPED BY THE DISTRICT Listed below are data provided b the District and used in this project: P Y P J 1. Base maps of the area(electronic files) 2. Water system map (blueprints, scale 1" =400') 3. Inventory of facilities (Asset Valuation Services' "Fixed Asset Master List by Class.") 4. Water consumption data 5. Water meter data 6. Real market valuation data I, I 9 i 1 Agenda Item No.: to Revised 6/26/07 IWB Meeting Date: '7-11 COMMERCIAL LEASE BETWEEN THE INTERGOVERNMENTAL WATER BOARD AND THE CITY OF TIGARD FOR THE WATER BUILDING Date: , 2007 Between: INTERGOVERNMENTAL WATER BOARD ("Landlord") 8777 SW BURNHAM STREET TIGARD, OR 97223 And: CITY OF TIGARD ("Tenant") 13125 SW HALL BLVD. TIGARD, OR 97223 RECITALS 1. The City of Tigard is leasing the Water Building property from the other entities in the IWB and during the period of the lease will pay rents and also assume responsibility for the maintenance of the property. 2. The Water Building has new Heating, Ventilation and Air Conditioning (HVAC), along with electrical, fire protection, and plumbing improvements. These improvements were paid for by the City of Tigard, although such expenses are most often the responsibility of the property owner. 3. The City of Tigard's expense for the above mentioned systems necessitates and justifies a long term lease in order for the City to recover those expenditures. 4. In further consideration of the City of Tigard's contributions to the Intergovernmental Water Board, the Intergovernmental Agreement, and their investment in the entire cost of the abovementioned systems in the Water Building,the City of Tigard shall retain the First Right of Refusal if the Water Building property is designated as surplus and for sale by the IWB. AGREEMENT Landlord leases to Tenant and Tenant leases from Landlord the following described property(the"Premises") on the terms and conditions stated below: The leased Premises property includes the entire building and common areas including parking and all other improvements located at 8777 SW Burnham Street,Tigard, Oregon, 97223. The Premises are as shown on Exhibit A. Page 1 of 13 IWB/City of Tigard Commercial Lease for the Water Building Section 1. Occupancy 1.1 Original Term. The term of this lease shall commence 2007, and continue through December 31, 2018, unless sooner terminated or renewed as hereinafter provided. 1.2 Possession. Tenant's right to possession and obligations under the lease shall commence on 12 1.3 Renewal Option. If the lease is not in default at the time each option is exercised or at the time the renewal term is to commence, Tenant shall have the option to renew this lease for 2 successive terms of 5 years each, as follows: (1) Each of the renewal terms shall commence on the day following expiration of the preceding term. (2) The option may be exercised by written notice to Landlord given not less than 120 days prior to the last day of the expiring term. The giving of such notice shall be sufficient to make the lease binding for the renewal term without further act of the parties. Landlord and Tenant shall then be bound to take the steps required in connection with the determination of rent as specified below. (3) The terms and conditions of the lease for each renewal term shall be identical with the original term except for rent and except that Tenant will no longer have any option to renew this lease that has been exercised. Rent for a renewal term shall be the greater of (a) the rental during the preceding term or(b) a reasonable market rent. (4) If the parties do not agree on the rent within 90 days after notice of election to renew, the rent shall be determined by a qualified, independent real property appraiser familiar with comparable commercial rental values in the area. The appraiser shall be chosen by Tenant from a list of not fewer than five such individuals submitted by Landlord. If Tenant does not make the choice within five days after submission of the list, Landlord may do so. If Landlord does not submit such a list within 10 days after written request from Tenant to do so, Tenant may name as an arbitrator any individual with such qualifications. Within 30 days after his [her] appointment, the appraiser shall return his [her] decision, which shall be final and binding upon both parties. The cost of the appraisal shall be borne equally by both parties. 1.4 Premises Leased "As Is". Tenant agrees to accept the Premises in the current "as is" condition. Section 2. Rent 2.1 Base Rent. Rent will be calculated as set forth in attached Exhibit B describing rental costs and credits as agreed upon between Landlord and Tenant. As set forth in said Exhibit B, at the commencement of the Lease and through the duration of the initial term, Tenant shall pay Landlord $58,751.63 annually. Page 2 of 13 IWB/City of Tigard Commercial Lease for the Water Building 2.2 Escalation. The base rent provided in Section 1 shall be adjusted in the first month of year 5 and the first month of year 10 of the lease term by a percentage equal to the percentage change in the Consumer Price Index published by the United States Bureau of Labor Statistics of the United States Bureau of Labor, for the corresponding rental term. Comparisons shall be made using the index entitled U S City Average—All Items and Major Group Figures for all Urban Consumers, or the nearest comparable data on changes in the cost of living of such index is no longer published. 2.3 Rent Credits. Tenant has paid $177,379.00 for improvements to the building and shall receive an annual credit of$15,424.26 against the total annual rent of$74,175.89 for said expenses as shown in attached Exhibit B and in Section 2.1 above. If the Lease is terminated before the expense has been fully amortized, Landlord and Tenant shall agree to a method for allocating the remaining unamortized expenses. 2.4 Additional Rent. All taxes, insurance costs, utility charges that Tenant is required to pay by this lease, and any other sum that Tenant is required to pay to Landlord or third parties shall be additional rent. 2.5 Payment of Rent. Rent is due and payable annually in advance on July 15 of each year. Section 3. Use of the Premises 3.1 Permitted Use. The Premises shall be used for municipal government public works offices and related activities, and for no other purpose without the consent of Landlord, which consent shall not be withheld unreasonably. 3.2 Restrictions on Use. In connection with the use of the Premises, Tenant shall: (1) Conform to all applicable laws and regulations of any public authority affecting the premises and the use, and correct at Tenant's own expense any failure of compliance created through Tenant's fault or by reason of Tenant's use,but Tenant shall not be required to make any structural changes to effect such compliance. (2) Refrain from any activity that would make it impossible to insure the Premises against casualty, would increase the insurance rate, or would prevent Landlord from taking advantage of any ruling of the Oregon Insurance Rating Bureau, or its successor, allowing Landlord to obtain reduced premium rates for long-term fire insurance policies, unless Tenant pays the additional cost of the insurance. (3) Refrain from any use that would be reasonably offensive to other tenants or owners or users of neighboring premises or that would tend to create a nuisance or damage the reputation of the premises. (4) Refrain from loading the electrical system or floors beyond the point considered safe by a competent engineer or architect selected by Landlord. Page 3 of 13 IWB/City of Tigard Commercial Lease for the Water Building 3.3 Hazardous Substances. Tenant shall not cause or permit any Hazardous Substance to be spilled, leaked, disposed of, or otherwise released on or under the Premises. Tenant may use or otherwise handle on the Premises only those Hazardous Substances typically used or sold in the prudent and safe operation of the business specified in Section 4.1. Tenant may store such Hazardous Substances on the Premises only in quantities necessary to satisfy Tenant's reasonably anticipated needs. Tenant shall comply with all Environmental Laws and exercise the highest degree of care in the use, handling, and storage of Hazardous Substances and shall take all practicable measures to minimize the quality and toxicity of Hazardous Substances used, handled, or stored on the Premises. Upon the expiration or termination of this Lease, Tenant shall remove all Hazardous Substances from the Premises. The term Environmental Law shall mean any federal, state, or local statute,regulation, or ordinance or any judicial or other governmental order pertaining to the protection of health, safety or the environment. The term Hazardous Substance shall mean any hazardous, toxic, infectious or radioactive substance, waste, and material as defined or listed by any Environmental Law and shall include, without limitation,petroleum oil and its fractions. Section 4. Repairs and Maintenance 4.1 Landlord's Obligations. The following shall be the responsibility of Landlord: (1) Repairs and maintenance of the roof and gutters, exterior walls (including painting), bearing walls, structural members, floor slaps, and foundation. (2) Repair of sidewalks, driveways, curbs, parking areas, and areas used in common by Tenant and Landlord or tenants of other portions of the same building. (3) Repair and maintenance of exterior water, sewage, gas, and electrical services up to the point of entry to the leased Premises. (4) Repair of the heating and air conditioning system other than ordinary maintenance. 4.2 Tenant's Obligations. The following shall be the responsibility of Tenant: (1) Repair of interior walls, ceilings, doors, windows, and related hardware, light fixtures, switches, and wiring and plumbing from the point of entry to the Premises. (2) Any repairs necessitated by the negligence of Tenant, its agents, employees, and invitees, except as provided in Section 7.2 dealing with waiver of subrogation, but including repairs that would otherwise be the responsibility of Landlord under Section 5.1. (3) Ordinary maintenance of the heating and air conditioning system and any repairs necessary because of improper maintenance. Page 4 of 13 IWB/City of Tigard Commercial Lease for the Water Building (4) Any repairs or alterations required under Tenant's obligation to comply with laws and regulations as set forth in Section 4.2(1). (5) All other repairs to the premises which Landlord is not required to make under Section 5.1. 4.3 Landlord's Interference with Tenant. In performing any repairs, replacements, alterations, or other work performed on or around the Premises, Landlord shall not cause unreasonable interference with use of the Premises by Tenant. Tenant shall have not right to an abatement of rent nor any claim against Landlord for any inconvenience or disturbance resulting for Landlord's activities performed in conformance with the requirement of this provision. 4.4 Reimbursement for Repairs Assumed. If either party fails or refuses to make repairs that are required by this Section 5, the other party may make the repairs and charge the actual cost of repairs to the first party. Such expenditures by Landlord shall be reimbursed by Tenant on demand together with interest at the rate of TEN (10%) per annum from the date of expenditure by Landlord. Such expenditures by Tenant may be deducted from rent and other payments subsequently becoming due or, at Tenant's election, collected directly from Landlord. Except in an emergency creating an immediate risk of personal injury or property damage, neither party may perform repairs which are the obligation of the other parry and charge the other party for the resulting expense unless at least 20 days before work is commenced, and the defaulting party is given notice in writing outlining with reasonable particularity the repairs required, and such party fails within that time to initiate such repairs in good faith. 4.5 Inspection of Premises. Landlord shall have the right to inspect the Premises at any reasonable time or times to determine the necessity of repair. Whether or not such inspection is made, the duty of Landlord to make repairs shall not mature until a reasonable time after Landlord has received from Tenant written notice of the repairs that as required. Section 5. Alterations 5.1 Alterations Prohibited. Tenant shall make no improvements or alterations on the Premises of any kind without first obtaining Landlord's written consent. All alterations shall be made in a good and workmanlike manner, and in compliance with applicable laws and building codes. Section 6. Insurance 6.1 Insurance Required. The Tenant as the managing partner of the Landlord will provide insurance as set forth in the December 1993 Intergovernmental Agreement. 6.2 Waiver of Subrogation. Neither party shall be liable to the other(or to the other's successors or assigns) for any loss or damage caused by fire or any of the risks enumerated in a standard fire insurance policy with an extended coverage endorsement, and in the event of insured loss,neither party's insurance company shall have a subrogated claim against the other. This waiver shall be valid only if the insurance policy in question expressly permits waiver of Page 5 of 13 IWB/City of Tigard Commercial Lease for the Water Building i subrogation or if the insurance company agrees in writing that such a waiver will not affect coverage under the policies. Each party agrees to use best efforts to obtain such an agreement from its insurer if the policy does not expressly permit a waiver of subrogation. Section 8. Taxes; Utilities 8.1 Property Taxes. Tenant is a municipal government and statutorily exempt from property taxes, except as may be assessed by appropriate special districts and collected by the county assessor. Tenant shall pay as due all taxes on its personal property located on the Premises, if any. Tenant shall pay as due all real property taxes and special assessments if any, levied against the Premises. As used herein,real property taxes includes any fee or charge relating to the ownership, use, or rental of the Premises, other than taxes on the net income of Landlord or Tenant. 8.2 Special Assessments. If an assessment for a public improvement is made against the Premises, Landlord may elect to cause such assessment to be paid in installments, in which case all of the installments payable with respect to the lease term shall be treated the same as general real property taxes for purposes of Section 8.1. 8.3 Contest of Taxes. Tenant shall be permitted to contest the amount of any tax or assessment as long as such contest is conducted in a manner that does not cause any risk that Landlord's interest in the Premises will be foreclosed for nonpayment. Landlord shall cooperate in any reasonable manner with such contest by Tenant. 8.4 Proration of Taxes. If applicable, Tenant's share of real property taxes and assessments for the years in which this lease commences or terminates shall be prorated based on the portion of the tax year that this lease is in effect. 8.5 New Charges or Fees. If a new charge or fee relating to the ownership or use of the Premises or the receipt of rental therefrom or in lieu of property taxes is assessed or imposed, then, to the extent permitted by law,Tenant shall pay such charge or fee. Tenant, however, shall have no obligation to pay any income,profits, or franchise tax levied on the net income derived by Landlord from this lease. 8.6 Payment of Utilities Charges. Tenant shall pay when due all charges for services and utilities incurred in connection with the use, occupancy, operation, and maintenance of the Premises, including(but not limited to) charges for fuel, water, gas, electricity, sewage disposal, power,refrigeration, air conditioning,telephone, and janitorial services. If any utility services are provided by or through Landlord, charges to Tenant shall be comparable with prevailing rates for comparable services. If the charges are not separately metered or stated, Landlord shall apportion the charges on an equitable basis, and Tenant shall pay its apportioned share on demand. Page 6 of 13 IWB/City of Tigard Commercial Lease for the Water Building Section 9. Damage and Destruction 9.1 Partial Damage. If the Premises are partly damaged and Section 9.2 does not apply, the Premises shall be repaired by Landlord at Landlord's expense. Repairs shall be accomplished with all reasonable dispatch subject to interruptions and delays from labor disputes and matters beyond the control of Landlord and shall be performed in accordance with the provisions of Section 5.3. 9.2 Destruction. If the Premises are destroyed or damaged such that the cost of repair exceeds 50% of the value of the structure before the damage, either party may elect to terminate the lease as of the date of the damage or destruction by notice given to the other in writing not more than 20 days following the date of damage. In such event all rights and obligations of the parties shall cease as of the date of termination, and Tenant shall be entitled to the reimbursement of any prepaid amounts paid by Tenant and attributable to the anticipated term. If neither party elects to terminate, Landlord shall proceed to restore the Premises to substantially the same form as prior to the damage or destruction. Work shall be commenced as soon as reasonably possible and thereafter shall proceed without interruption except for work stoppages on account of labor disputes and matters beyond Landlord's reasonable control. 9.3 Rent Abatement. Rent shall be abated during the repair of any damage to the extent the premises are untenantable, except that there shall be no rent abatement where the damage occurred as the result of the fault of Tenant]. 9.4 Damage Late in Term. If damage or destruction to which Section 9.2 would apply occurs within one year before the end of the then-current term, Tenant may elect to terminate the lease by written notice to Landlord given within 30 days after the date of the damage. Such termination shall have the same effect as termination by Landlord under Section 9.2. Section 11. Liability and Indemnity 11.1 Liens. (1) Except with respect to activities for which Landlord is responsible, Tenant shall pay as due all claims for work done on and for services rendered or material furnished to the Premises, and shall keep the Premises free from any liens. If Tenant fails to pay any such claims or to discharge any lien, Landlord may do so and collect the cost as additional rent. Any amount so added shall bear interest at the rate of 10 % per annum from the date expended by Landlord and shall be payable on demand. Such action by Landlord shall not constitute a waiver of any right or remedy which Landlord may have on account of Tenant's default. (2) Tenant may withhold payment of any claim in connection with a good- faith dispute over the obligation to pay, as long as Landlord's property interests are not jeopardized. If a lien is filed as a result of nonpayment, Tenant shall, within 10 days after knowledge of the filing, secure the discharge of the lien or deposit with Landlord cash or sufficient corporate surety bond or other surety satisfactory to Landlord in an amount sufficient Page 7 of 13 IWB/City of Tigard Commercial Lease for the Water Building to discharge the lien plus any costs, attorney fees, and other charges that could accrue as a result of a foreclosure or sale under the lien. 11.2 Indemnification. Tenant shall indemnify and defend Landlord, and Landlord shall indemnify Tenant, from any claim, loss, or liability arising out of or related to any [negligent] activity of Tenant on the Premises or any condition of the Premises in the possession or under the control of Tenant including any such claim, loss, or liability that may be caused or contributed to in whole or in part by Landlord's own negligence or failure to effect any repair or maintenance required by this lease. Landlord shall have no liability to Tenant for any injury, loss, or damage caused by third parties, or by any condition of the Premises. 11.3 Liability Insurance. The Tenant as the managing partner of the Landlord will provide insurance as set forth in the December 1993 Intergovernmental Agreement. Section 12. Quiet Enjoyment; Mortgage Priority 12.1. Landlord's Warranty. Landlord warrants that it is the owner of the Premises and has the right to lease them free of all encumbrances. Landlord will defend Tenant's right to quiet enjoyment of the Premises from the lawful claims of all persons during the lease term. 12.3 Estoppel Certificate. Either parry will, within 30 days after notice from the other, execute and deliver to the other party a certificate stating whether or not this lease has been modified and is in full force and effect and specifying any modifications or alleged breaches by the other party. The certificate shall also state the amount of monthly base rent, the dates to which rent has been paid in advance, and the amount of any security deposit or prepaid rent. Failure to deliver the certificate within the specified time shall be conclusive upon the party from whom the certificate was required that the lease is in full force and effect and has not been modified except as represented in the notice requesting the certificate. Section 13. Assignment and Subletting No part of the Premises may be assigned,mortgaged, or subleased, nor may a right of use of any portion of the property be conferred on any third person by any other means, without the prior written consent of Landlord. This provision shall apply to all transfers by operation of law. Landlord may in its sole and arbitrary discretion not unreasonably withhold or condition such consent. Section 14. Default The following shall be events of default: 14.1 Default in Rent. Failure of Tenant to pay any rent or other charges within 10 days after written notice that it is due. 14.2 Default in Other Covenants. Failure of Tenant to comply with any term or condition or fulfill any obligation of the lease(other than the payment of rent or other charges) within 15 days Page 8 of 13 IWB/City of Tigard Commercial Lease for the Water Building after written notice by Landlord specifying the nature of the default with reasonable particularity. If the default is of such a nature that it cannot be completely remedied within the FIFTEEN (15) day period, this provision shall be complied with if Tenant begins correction of the default within the 15 day period and thereafter proceeds with reasonable diligence and in good faith to effect the remedy as soon as practicable. 14.3 Insolvency. Insolvency of Tenant; an assignment by Tenant for the benefit of creditors; the filing by Tenant of a voluntary petition in bankruptcy; an adjudication that Tenant is bankrupt or the appointment of a receiver of the properties of Tenant; the filing of any involuntary petition of bankruptcy and failure of Tenant to secure a dismissal of the petition within 30 days after filing; attachment of or the levying of execution on the leasehold interest and failure of Tenant to secure discharge of the attachment or release of the levy of execution within 10 days shall constitute a default. If Tenant consists of two or more individuals or business entities, the events of default specified in this Section 14.3 shall apply to each individual unless within 10 days after an event of default occurs, the remaining individuals produce evidence satisfactory to Landlord that they have unconditionally acquired the interest of the one causing the default. If the lease has been assigned, the events of default so specified shall apply only with respect to the one then exercising the rights of Tenant under the lease. 14.4 Abandonment. Failure of Tenant for 30 days or more to occupy the Premises for one or more of the purposes permitted under this lease, unless such failure is excused under other provisions of this lease. Section 15. Remedies for Default 15.1 Termination. In the event of a default the lease may be terminated at the option of Landlord by written notice to Tenant. Whether or not the lease is terminated by the election of Landlord or otherwise, Landlord shall be entitled to recover damages from Tenant of the default, and Landlord may reenter, take possession of the premises, and remove any persons or property by legal action or by self-help with the use of reasonable force and without liability for damages and without having accepted a surrender. 15.2 Reletting. Following reentry or abandonment, Landlord may relet the Premises and in that connection may make any suitable alterations or refurbish the Premises, or both, or change the character or use of the Premises,but Landlord shall not be required to relet for any use or purpose other than that specified in the lease or which Landlord may reasonably consider injurious to the Premises, or to any tenant that Landlord may reasonably consider objectionable. Landlord may relet all or part of the Premises, alone or in conjunction with other properties, for a term longer or shorter than the term of this lease,upon any reasonable terms and conditions, including the granting of some rent-free occupancy or other rent concession. 15.3 Damages. In the event of termination or retaking of possession following default, Landlord shall be entitled to recover immediately,without waiting until the due date of any future rent or until the date fixed for expiration of the lease term, the following amounts as damages: Page 9 of 13 IWB/City of Tigard Commercial Lease for the Water Building (1) The loss of rental from the date of default until a new tenant is, or with the exercise of reasonable efforts could have been, secured and paying out. (2) The reasonable costs of reentry and reletting including without limitation the cost of any cleanup, refurbishing, removal of Tenant's property and fixtures, costs incurred under Section 15.5, or any other expense occasioned by Tenant's default including but not limited to, any remodeling or repair costs, attorney fees, court costs, broker commissions, and advertising costs. (3) Any excess of the value of the rent and all of Tenant's other obligations under this lease over the reasonable expected return from the premises for the period commencing on the earlier of the date of trial or the date the premises are relet, and continuing through the end of the term. The present value of future amounts will be computed using a discount rate equal to the prime loan rate of major Oregon banks in effect on the date of trial. 15.4 Right to Sue More Than Once. Landlord may sue periodically to recover damages during the period corresponding to the remainder of the lease term, and no action for damages shall bar a later action for damages subsequently accruing. 15.5 Landlord's Right to Cure Defaults. If Tenant fails to perform any obligation under this lease, Landlord shall have the option to do so after 30 days written notice to Tenant. All of Landlord's expenditures to correct the default shall be reimbursed by Tenant on demand with interest at the rate of 10 %per annum from the date of expenditure by Landlord. Such action by Landlord shall not waive any other remedies available to Landlord because of the default. 15.6 Remedies Cumulative. The foregoing remedies shall be in addition to and shall not exclude any other remedy available to Landlord under applicable law. Section 16. Surrender at Expiration 16.1 Condition of Premises. Upon expiration of the lease term or earlier termination on account of default, Tenant shall deliver all keys to Landlord and surrender the Premises in first- class condition and broom clean. Alterations constructed by Tenant with permission from Landlord shall not be removed or restored to the original condition unless the terms of permission for the alteration so require. Depreciation and wear from ordinary use for the purpose for which the Premises are leased shall be excepted but repairs for which Tenant is responsible shall be completed to the latest practical date prior to such surrender. Tenant's obligations under this section shall be subordinate to the provisions of Section 9 relating to destruction. 16.2 Fixtures (1) All fixtures placed upon the Premises during the term, other than Tenant's trade fixtures, shall, at Landlord's option, become the property of Landlord. If Landlord so elects, Tenant shall remove any or all fixtures that would otherwise remain the property of Landlord, and shall repair any physical damage resulting from the removal. If Tenant fails to Page 10 of 13 IWB/City of Tigard Commercial Lease for the Water Building remove such fixtures, Landlord may do so and charge the cost to Tenant with interest at the legal rate from the date of expenditure. (2) Prior to expiration or other termination of the lease term Tenant shall remove all furnishings, furniture, and trade fixtures that remain its property. If Tenant fails to do so, this shall be an abandonment of the property, and Landlord may retain the property and all rights of Tenant with respect to it shall cease or, by notice in writing given to Tenant within 30 days after removal was required, Landlord may elect to hold Tenant to its obligation of removal. If Landlord elects to require Tenant to remove, Landlord may effect a removal and place the property in pubic storage for Tenant's account. Tenant shall be liable to Landlord for the cost of removal, transportation to storage, and storage, with interest at the legal rate on all such expenses from the date of expenditure by Landlord. 16.3 Holdover (1) If Tenant does not vacate the Premises at the time required, Landlord shall have the option to treat Tenant as a tenant from month to month, subject to all of the provisions of this lease except the provisions for term and renewal, to eject Tenant from the Premises and recover damages caused by wrongful holdover. Failure of Tenant to remove fixtures, furniture, furnishings, or trade fixtures that Tenant is required to remove under this lease shall constitute a failure to vacate to which this section shall apply if the property not removed will substantially interfere with occupancy of the Premises by another tenant or with occupancy by Landlord for any purpose including preparation for a new tenant. (2) If a month-to-month tenancy results from a holdover by Tenant under this Section 16.3, the tenancy shall be terminable at the end of any monthly rental period on written notice from Landlord given not less than? days prior to the termination date which shall be specified in the notice. Tenant waives any notice that would otherwise be provided by law with respect to a month-to-month tenancy. Section 17. Miscellaneous 17.1 Nonwaiver. Waiver by either party of strict performance of any provision of this lease shall not be a waiver of or prejudice the party's right to require strict performance of the same provision in the future or of any other provision. 17.2 Attorney Fees. If suit or action is instituted in connection with any controversy arising out of this lease, the prevailing party shall be entitled to recover in addition to costs such sum as the court may adjudge reasonable as attorney fees at trial, on petition for review, and on appeal. 17.3 Notices. Any notice required or permitted under this lease shall be given when actually delivered or 48 hours after deposited in United States mail as certified mail addressed to the address first given in this lease or to such other address as may be specified from time to time by either of the parties in writing. Page 11 of 13 IWB/City of Tigard Commercial Lease for the Water Building 17.4 Succession Subject to the above-stated limitations on transfer of Tenant's interest, this lease shall be binding on and inure to the benefit of the parties and their respective successors and assigns. 17.5 Recordation. This lease shall not be recorded without the written consent of Landlord. 17.6 Entry for Inspection. With at least 24 hours prior notice to Tenant, Landlord shall have the right to enter upon the Premises to determine Tenant's compliance with this lease, to make necessary repairs to the building or to the Premises, or to show the Premises to any prospective tenant or purchaser, and in addition shall have the right, at any time during the last two months of the term of this lease, to place and maintain upon the Premises notices for leasing or selling the Premises. 17.7 Interest on Rent and Other Charges. Any rent or other payment required of Tenant by this lease shall, if not paid within 20 days after it is due, bear interest at the rate of TEN (10 %) per annum (but not in any event at a rate grater than the maximum rate of interest permitted by law) from the due date until paid. In addition, if Tenant fails to make any rent or other payment required by this lease to be paid to Landlord within 20 days after it is due, Landlord may elect to impose a late charge of$25.00 payment to reimburse Landlord for the costs of collecting the overdue payment. Tenant shall pay the late charge upon demand by Landlord. Landlord may levy and collect a late charge in addition to all other remedies available for Tenant's default, and collection of a late charge shall not waive the breach caused by the late payment. 17.8 Proration of Rent. In the event of commencement or termination of this lease at a time other than the beginning or end of one of the specified rental periods, then the rent shall be prorated as of the date of commencement or termination and in the event of termination for reasons other than default, all prepaid rent shall be refunded to Tenant or paid on its account. 17.9 Time of Essence. Time is of the essence of the performance of each of Tenants obligations under this lease. 17.10 Oregon Tort Claims Act. Subject to the limitations of liability for public bodies set forth in the Oregon Tort Claims Act, (ORS 30.260 to 30.300) the Intergovernmental Water Board members shall hold harmless and indemnify each other and their Councilors, employees, agents and volunteers against all claims, damages, losses and expenses (including all attorney fees and costs) arising out of or resulting from the District's performance of this agreement when the loss or claim is attributable to the acts or omissions of the Districts, their Commissioners, employees, agents and volunteers. Section 18. Arbitration 18.1 Disputes to Be Arbitrated. If any dispute arises between the parties as to a matter which this lease says should be arbitrated, or as to any other question involving apportionment or valuation, either party may request arbitration and appointment as an arbitrator an independent real estate appraiser having knowledge of valuation of rental properties comparable to the premises. The other party shall also choose an arbitrator with such qualifications, and the two Page 12 of 13 IWB/City of Tigard Commercial Lease for the Water Building arbitrators shall choose a third. If the choice of the second or third arbitrator is not made within 10 days of choosing the prior arbitrator, then either party may apply to the presiding judge of the judicial district where the premises are located to appoint the required arbitrator. 18.2 Procedure for Arbitration. The arbitrator shall proceed according to the Oregon statutes governing arbitration, and the award of the arbitrators shall have the effect therein provided. The arbitration shall take place in the county where the leased premises are located. Costs of the arbitration shall be shared equally by the parties, but each party shall pay its own attorney fees incurred in connection with the arbitration. Section 19. Right of First Refusal No Owner/Landlord of the Property shall sell or transfer the Owner's/Landlords undivided interest in the Property except as set forth herein in this Water Building Lease. In the event that three(3) out of four(4) of the representative jurisdiction Owners vote to sell the Water Building Property, the City of Tigard shall have the Right of First Refusal. Within 30 days of notification to Tenant that the Property will be sold, Tenant shall notify Owner of the intent to exercise the right to purchase the Property. Within 30 days of Tenant's notification to Landlord, the City of Tigard shall determine the Water Building Property improvement value as set forth in the System Assets and Liabilities Final Report (Section II, Utility Plant in Service)prepared by Economic and Engineering Services, Inc. dated November 1994, and order an appraisal of the land to be performed by an appraisal company highly experienced in valuation of land similar to the Property and agreed upon by seller and purchaser. Within 30 days of receiving the determination of value of the Property, the sale shall be closed. LANDLORD: Intergovernmental Water Board Member Jurisdictions CITY OF TIGARD CITY OF DURHAM CITY OF KING CITY TIGARD WATER DISTRICT TENANT: CITY OF TIGARD Page 13 of 13 IWB/City of Tigard Commercial Lease for the Water Building i I I EXHIBIT A TO LEASE, LEASED BUILDING AND PARKING PREMISES FLJy UdG AIS 4"x;L mY ,X 11.4 e i Yr r1'r • Yr4� YV ' I V'Yf:Vx I I W{ Parking (not to scale) I EXHIBIT B TO LEASE _ CITY OF TIGARD WATER BUILDING LEASE: RENTAL STRUCTURE Estimated Annual Rent Revenues and Credits Total Rent From City of Tigard (COT) $178,891.20 Water Services Rent Portion $104,715.31 COT Rent Other Than Water Services $74,175.89 Total annual COT Credit for Owner improvements, annualized $15,424.26 Total Annual Rent from COT after Credits $58,751.63 Rent data is from D. Koellermeier 3112/07 Office Building Asset Evaluation:Future Use Allocation City of Tigard Cost and Rental Credits For Renovation of HVAC, Fire,Plumbing and Electrical Systems COT Cost to be Reimbursed by IWB for HVAC, Fire, Electrical and Plumbing Renovation/Upgrade $177,379.00 Annualized for term of lease, 11.5 years, $15,424.26 Puly 1, 2007, until Dec 31, 2018 BSubmitted at �,Iu Meeting Date: As aItem o Background Information on Rental Calculations for the Water Building Lease Tigard Water Service Area (TWSA) Office Building Asset Evaluation : Future Use Allocation DKK, 3/12/07 Sq. Ft. Allocated Percentage of Rental by Sq. Ft. Sq. Ft. Reallocation Income and Division/ Without Without of Common Common Area Common Percentage of Rental Percentage of Common Common Areas to Allocation by Area Description Areas Total Sq. Ft. Income Sq. Ft. Areas Areas Divisions Division Common Areas Employee Shared Area 3,670 23.56% $ 66,060.00 Admin. Staff 986 6.33% $ 17,748.00 Fleet 2,469 15.85% $ 11,851.20 Public Auditorium 1,603 10.29% $ 28,854.00 $ 124,513.20 56.03% Water 905 5.81% $ 16,290.00 Water Equipment Bays 3,132 20.11% $ 15,033.60 $ 31,323.60 25.92% 4,037 58.94% $ 73,391.71 $ 104,715.31 Parks/Facilities 374 2.40% $ 6,732.00 $ 6,732.00 2.40% 374 5.46% $ 6,799.23 $ 13,531.23 Storm 175 1.12% $ 3,150.00 Storm Equipment Bay 1,044 6.70% $ 5,011.20 $ 8,161.20 7.83% 1,219 17.80% $ 22,161.13 $ 30,322.33 Sanitary 175 1.12% $ 3,150.00 Sanitary Equipment Bay 1,044 6.70% $ 5,011.20 $ 8,161.20 7.83% 1,219 17.80% $ 22,161.13 $ 30,322.33 Total: 15,577 100.00% $ 178,891.20 100.00% 6,849 100.00% $ 124,513.20 $ 178,891.20 Rental Rates(per sq.ft.): Commercial @ $18.00 annually Source: Pacific Security Capital Fourth Quarter Overview, 2006 Shop/Bays @ $ 0.40 monthly Source: Grubb& Ellis Industrial Market Trends, Fourth Quarter, 2006 - � 2000 � �Z1 yZS �) / 23-2- lI 438z 22- 7� �� �euL%t ro _ - -3/ 7 4_ _ J/ 176 _ - 27 J7 �7G Zg - i 2 3 Z- 7-2 7Z r 7737P 7 7Jr7 1 i ATTACHMENT D CITY OF TIGARD INVITATION TO BID FIRST TIER SUBCONTRACTOR DISCLOSURE FORM PROJECT NAME:r__"�l 649D Rid aATER FLP4 RZxA,9VR7(6g/ BID #: BID CLOSING: Date:-3—'?- 1)7 Time: Z'..PZ This form must be submitted at the location specified in the Imitation to Bid on the advertised bid closing date and widen two working hours after the advertised bid closing time. List below the name of each subcontractor that will be furnishing labor or will be furnishing labor and materials in connection with the public improvement and that is required to be disclosed,the category of work that the subcontractor will be performing and the dollar value of the subcontract. Enter "None" if there are no subcontractors that need to be disclosed. (Attach additional sheets if they are needea). 1 NAME DOLLAR VALUE CATEGORY OF WORK 3) 6;uF�r vLb LF $ 93, 5�z) Z3 44 VP+C 4) 1. 15 $ Failure to submit this form by the disclosure deadline will result in a nonresponsive bid. A nonresponsive bid will not be considered for award. Form submitted by(Bidder's name): G- L pnlS dt. Akc Contact Individual: Rye5 Phone ITB—Tigard Public Works,Water Building Renovation Page 16 Close—Tuesday,March 8,2007,2:00 PM FB002 3/5/2007 2 : 24 : 54 PM PAGE 5/017 J,'ax box-vrwi ATTACHMENT A CITY OF TIGARD TIGARD PUBLIC WORKS WATER BUILDING RENOVATION BID FORM The Bidder,whose legal signature binding the Bidder to the bid prices indicated on these pages,hereby bids as follows: Base Bid $ +>59 Bid Alternate No. 1 $ 3-24-7.oc� (Reuse existing entrance doors) Bid Alternate No. 2 $ ZOt •�U� (Delete Louver Blinds) Bid Alternate No. 3 (Delete sprinkler head replacement) Bidders SjUnature Print Corporate Name of Bidding Firm- Centrex Construction, Inc. Print Bidder Rep. Name and Title: Jim Severson, President Bidder Representative Signature The following schedule of hid prices is for owner's reference only. This pricing will not be used in determining bid award. Minor discrepancies between this pricing and bid noted_ above or r Attachment `D' will not constitute a non-responsive bid. N-_ .�r+:^:.:H r�cb,+r.. as�.,;.�• a;;. ,; :;•..:., :• „•a;:. :,:a`.;tisk•:..:;.ti,. +..'::a1 ••'G.-;'.nom......': '.:;:;.. :`roti i\ ;{•.•.,....;n 2'e .• a:atr u,•.i:'.t+'}:,`.i.`.`>3,.i;:;}:;:;u}.,eat-v.:t,`2':2+�s,.;'.::.:.e�C'•`h•::+t • :.w<..�;•;:; ....., K�%----------'i2?xi::•c.;ay`:, ����� ti�••, NO �,• :;;�\,}ti,.c;>?ir;���r,+r}��.r;,��,��2 ti Y2���,+44:v ti�m+.;,•";,: VISION 01 GENERAL r-RE UIREMEN IS IVISION 02 EXISTING CONDITIONS # IVISION 05 METALS # Z DDD IVISION 06 WOOD,PLASTICS AND COMPOSITES # D� IVISION 07 THERMAL AND MOISTURE PROTECTION # ✓��� IVISION 08 DOORSANDWINDOWS IMION 09 FINISHES # 7� ITB—Tigard Public Works,Water Building Renovation Page 11 Close—Tuesday,March 8,2007,2:00 PM FB002 3/5/2007 2 : 24 ; 54 VM VAUh U/U1 i rax t)ervvz- IVISION 10 SPECIALTIES $ 2 3-L IVISION 11 _EQUIPMENT $ H3$-2- IVISION 12 FURNISHINGS $ 2aSv MSION 21 PIRE SUPPRESSION $ O 33 rVISION 22 PLUMBING IVISION 23 HEATING,VENTILATING AND AIR CONDITIONING AC $ IVISION 26 ELECTRICAL VISION 27 COMMUNICATIONS $ IVISION 28 EI_BCTRONIC SAPETY AND SECURTI'Y 3 2 IVISION 32 EXTERIOR IMPROVEMENTS $ Z NOTE-Ifa bid requires mote table space to list nriciW detail Bidder is to submit information on additional QMEofrA&Form. t-_ ITB-Tigard Public Works,Water Building Renovation Page 12 Close-Tuesday,March 8,2007,2:00 PM ATTACHMENT B ACKNOWLEDGMENT OF ADDENDA CITY OF TIGARD, OREGON INVITATION TO BID TIGARD PUBLIC WORKS WATER BUILDING RENOVATION CLOSE:TUESDAY,MARCH 8, 2007,2:00 PM I/WE HAVE RECEIVED THE FOLLOWING ADDENDA: if none received,write `None Received" 1. addendum 1 3. 2 AcIrlpnr]Lm 2 4. i March 8, 2007 Date Signa 'ofProposer President Title Centrex Cons tructioft X--Inc. Corporate Name ITB—Tigard Public Works,Water Building Renovation Page 14 Close Tuesday,March 8,2007,2:00 PM BID BOND Travelers Casualty ani surety Company of America One Tower Square 3PB, Hartford, CT 06183 Bond No. NIA KNOW ALL MEN BY THESE PRESENTS, That we, Centrex Construction, Inc., as Principal, hereinafter called the Principal, and Travelers Casualty and Surety Company of America, of One Tower Square 3PB, Hartford, CT 06183, a corporation duly organized under the laws of the State of Connecticut, as Surety, hereinafter called the Surety, are held and firmly bound unto City of Tigard, as Obligee, hereinafter called the Obligee, in the sum of --Ten Percent of the Total Bid Amount-- Dollars ($--10%--), for the payment of which sum well and truly to be made, the said Principal and the said Surety, bind ourselves, our heirs, executors, administrators, successors and assigns, jointly and severally, firmly by these presents. WHEREAS, the Principal has submitted a bid for Tigard Public Works Water Building Renovation. NOW, THEREFORE, if the Obligee shall accept the bid of the Principal and the Principal shall enter into a Contract with the Obligee in accordance with the terms of such bid, and give such bond or bonds as may be specified in the bidding or Contract Documents with good and sufficient surety for the faithful performance of such Contract and for the prompt payment of labor and material furnished in the prosecution thereof, or in the event of the failure of the Principal to enter such Contract and give such bond or bonds, if the Principal shall pay to the Obligee the difference not to exceed the penalty hereof between the amount specified in said bid and such larger amount for which the Obligee may in good faith contract with another party to perform the Work covered by said bid, then this obligation shall be null and void, otherwise to remain in full force and effect. Signed and sealed this 2nd day of March, 2007. Centrex Construction, Inc. Zf (Seal) By: Witness Principal Travelers Casualty and Surety Company of Amer (Seal) �adowski By:hleen Witness ff6tt P Attorney-in-Fact Printed in cooperation with the American Institute of Architects(AIA)by Travelers Casualty and Surety Company of America. The language in this document conforms exactly to the language used in AIA Document A310, February 1970 edition. S-1869-G(10-00) WARNING:THIS POWER OF ATTORNEY IS INVALID WITHOUT THE RED BORDER TRAVELERS POWER OF ATTORNEY Farmington Casualty Company St.Paul Guardian Insurance Company Fidelity and Guaranty Insurance Company St.Paul Mercury Insurance Company Fidelity and Guaranty Insurance Underwriters,Inc. Travelers Casualty and Surety Company Seaboard Surety Company Travelers Casualty and Surety Company of America St.Paul Fire and Marine Insurance Company United States Fidelity and Guaranty Company Attorney-In Fact No. 218303 Certificate No. 001450339 KNOW ALL MEN BY THESE PRESENTS:That Seaboard Surety Company is a corporation duly organized under the laws of the State of New York,that St.Paul Fire and Marine Insurance Company,St.Paul Guardian Insurance Company and St.Paul Mercury Insurance Company are corporations duly organized under the laws of the State of Minnesota,that Farmington Casualty Company,Travelers Casualty and Surety Company,and Travelers Casualty and Surety Company of America are corporations duly organized under the laws of the State of Connecticut,that United States Fidelity and Guaranty Company is a corporation duly organized under the laws of the State of Maryland,that Fidelity and Guaranty Insurance Company is a corporation duly organized under the laws of the State of Iowa,and that Fidelity and Guaranty Insurance Underwriters,Inc.is a corporation duly organized under the laws of the State of Wisconsin(herein collectively called the"Companies"),and that the Companies do hereby make,constitute and appoint A.G. Sadowski, Derek A. Sadowski, Kathleen M. Sadowski, and Ty Moffett i. of the City of Salem State of OVA their true and lawful Attorneys)-in-Fact, each in their separate capacity if more than one is named above,to sign,execute,seal and ac 10W ledge any and all bonds,recognizances,conditional undertakings and other writings obligatory in the nature thereof on behalf of the Companies in their_iusjness o�ff4traranteeing the fidelity of persons, guaranteeing the performance of contracts and executing or guaranteeing bonds and undertakings required or pe inarta+r ons o��ryceedings allowed by law. Qp 1 N-111110IN WITNESS WHEREOF,the Companies have caused this insr tribe�ygttel�d�r orate seals to be hereto affixed,this 15th y' day of February 2007 G1�1 Farmington Casualty Cq�j��p _ 12 QQ St.Paul Guardian Insuran�Ce Company Fidelity and Guaranty�4rs ranc�`�p paq�vg,�l St.Paul Mercury Insurance Company Fidelity and Guaranty Insui ce'Underwrlters,line- Travelers Casualty and Surety Company Seaboard Surety Company Travelers Casualty and Surety Company of America St.Paul Fire and Marine Insurance Company United States Fidelity and Guaranty Company �A8l.Al .� $IIPFf� '!lR 44 O�1.M.,IN,r i1MfU JAl.1Y AMp 17M t'�� Y,(ti� 1 A� Y 1F I y,:` G9 JP:......,9�y • k ,1T�+ 4,P" �I f a ij�'o � 1977 NC011roR1tto 927 k�" ��°Rroeeif''� =��M°wrfl n : twtrt�0ito.'t a tuRrrORD, �seo"'a"m �y ti� i *� � �FpF NEYI� '�F�r,c� �fS.AM�a •1p„":„'tea Air PA � . r' � b`' State of Connecticut By: City of Hartford ss. /Georg9lsjThompson,trti ce President On this the 15th day of February 2007 before me personally appeared George W. Thompson, who acknowledged himself to be the Senior Vice President of Farmington Casualty Company, Fidelity and Guaranty Insurance Company,Fidelity and Guaranty Insurance Underwriters, Inc.,Seaboard Surety Company,SL Paul Fire and Marine Insurance Company,St.Paul Guardian Insurance Company,St.Paul Mercury Insurance Company,Travelers Casualty and Surety Company,Travelers Casualty and Surety Company of America,and United States Fidelity and Guaranty Company, and that he, as such, being authorized so to do,executed the foregoing instrument for the purposes therein contained by signing on behalf of the corporations by himself as a duly authorized officer. In Witness Whereof,I hereunto set my hand and official seal. TAPP My Commission expires the 30th day of June,2011. * '60110G yt Marie C.Tetreault,Notary Public �tiNEC'CF'$ 58440-8-06 Printed In U.S.A. WARNING:THIS POWER OF ATTORNEY IS INVALID WITHOUT THE RED BORDER ATTACHMENT C BID CERTIFICATIONS Non-discrimination Clause The Contractor agrees not to discriminate against any client, employee or applicant for employment or for services, because of race, color,religion, sex, national origin,handicap or age with regard to,but not limited to, the following employment upgrading, demotion or transfer; recruitment or recruitment advertising; layoffs or tertnination; rates of ply or other forms of compensation; selection for training rendition of services. It is further understood that any contractor who is in violation of this clause shall be barred from receiving awards of any purchase order or contract from the City, unless a satisfactory showing is made that discriminatory practices have terminated and that a recurrence of such acts is unlikely. Agreed by: Jim Severson y Firm Name: Centrex Construction, Inc. I Address: 8250 SW Hunziker Rd. Tigard, OR 97223 Resident Certificate Please Check One: © Resident Vendor:Vendor has paid unemployment taxes and income taxes in this state during the last twelve calendar months immediately preceding the submission of this proposal. Or ❑ Non-resident Vendor:Vendor does not qualify under requirement stated above. (Please specify your state of residence: 1 Officer's signature: Type or print officer's name: James Severson ITB—Tigard Public Works,Water Building Renovation Page 15 Close—Tuesdav,March 8,2007,2:00 PM CENTREX CONSTRUCTION I N C O R P O R A T E D March 8, 2007 To Whom It May Concern: Centrex Construction, Inc. is an Oregon Corporation registered since 1985, specializing in commercial and industrial in both new and remodel construction. Centrex Construction agrees to meet conditions set forth in ORS 279C.840 and ORS 279C.845 pertaining to prevailing wages on this project. Existing Centrex Construction drug testing program shall remain in place for the duration of this contract. - Ja6ies Severson, President Centrex Construction 8250 S.W.HUNZIKER RD. ■ TIGARD, OREGON 97223-5060 0 TELEPHONE(503)684-0443 ■ FAX(503)620-6692 c CENTREX CONSTRUCTION I N C O R P O R A T E D March 8, 2007 Centrex Construction, Inc. References ) Columbia County Transitional Housing City of St. Helens $750,000 Completed Sept. 2006 Southend Airpark Hangar Juliet Westwood Development Corp. $1,700,000 Completed March 2005 City of Tigard City Hall and Permit Center Remodel City of Tigard $1,120,000 Completed Feb. 2005 8250 S.W.HUNZIKER RD. ■ TIGARD,OREGON 97223.5060 0 TELEPHONE(503)684-0443 ■ FAX(503)620-6692 Office Market Trends Portland Grubb . Ellis Research QuarterFirst 00 Grubb&Ellis® Market Takes a Breather Property Solutions Worldwide Executive Summary The overall Portland economy started slow, reflecting seasonal trends, but was back to modest growth by February. Unemployment has dropped to 5.1 percent and job growth registered a year-over-year increase of 2.1 percent in the metro area. The Portland office market also got off to a slow start in 2007, an indication of seasonal fluctuations in deal activity rather than a reversal of the market's improving trend. The market sustained a loss in net absorption of 152,000 square feet, pushing vacancy rates up to 12.5 percent. Despite this loss, rental Contents rates continue to climb in response to the tightening office market and increased competition for space. Just 148,000 square feet of new construction was added Executive Summary. . . . . . .1 to the market but there has been an increase in the construction pipeline with over Overview . . . . . . . . . . . . . . .2 1.1 million square feet currently under construction. Forecast. . . . . . . . . . . . . . . .2 The CBD office market will become tighter as the year progresses, more due Opportunities & Challenges 3 to a lack of new supply than particularly robust demand. Nonetheless, expect rental rates in the CBD to spike this year, ending the year over$26.00,while the Market Snapshot . . . . . . . . .4 best Class A+ space is already being marketed at rates between $28-$30.00 full service. The Washington Square/Kruse Way submarket has felt the repercussions of the sub-prime mortgage fallout with vacancy up again this quarter. Deals in the market and current leasing velocity suggest that this trend will not last long and the market is expected to be a strong performer in 2007. Portland Office Market Trends is a newsletter published quarterly by 20% 13.9 13.3 12.7 12.5 12.4 11.9 11.9 11.7 12.5 Grubb&Ellis Company.To obtain additional copies or other Grubb&Ellis publications, please contact: 18% Patricia K.Raicht Client Services Manager 16% E-mail:patdcia.raicht@grubb-ellis.com Grubb&Ellis Company 14% 1120 NW Couch Street,Suite 350 Portland,Oregon 97209 12% Phone:503.241.1155 Fax:503.241.0306 Internet:www.grubb-ellis.com 10% 1Q/05 2Q/05 3Q/05 4Q/05 1Q/06 20/06 3Q/06 4Q/06 1Q/07 ®2007 Grubb&Ellis Company Office Vacancy Rate* 'All Classes of Space ffice Market Trends First Quarter / , While net absorption took a Overview hit this quarter, deal velocity The Portland economy started the year out slowly, reflecting and current deals in the typical seasonal trends, but returned to job growth in February. market indicate that this is Unemployment stands at 5.1 percent, this is down from 5.4 percent a seasonal blip, and not an in February of 2006, and metro area employers added jobs reflecting indication of a trend for the an annualized growth rate of 2.1 percent. The State is faring office market. similarly with statewide unemployment now standing at 5.3 percent, down slightly from the previous year, and job growth has rebounded in February contributing to a 2.0 percent year over year growth rate. Much like the economy, the commercial real estate markets tend to CBD Class A Rental see a surge in activity at the end of the year, followed by a slower and Vacancy Rates period in the beginning of the year. Portland's office market took a 18% $26 breather in the first quarter. The market registered a net absorption $24.31 25 16 24 loss of 152,000 square feet, pushing overall vacancy rates up to 14 23 12.5 percent. The losses were felt across many of the submarkets, 22 °' 12 21 � with the largest submarkets seeing the greatest losses. While net 10 20 absorption took a hit this quarter, deal velocity and current deals in 1s � B 18 the market indicate that this is a seasonal blip, and not an indication 6 6.4% 17 of a trend for the office market. 16 4 15 10/05 1n/06 10/07 Rental rates have risen again this quarter, driven primarily by the Vacancy 9a Rental Rales$ CBD and Washington Square/Kruse Way submarkets, with overall Class A asking rates up 2 percent in the first quarter, going from $23.60 to $24.15. Construction activity has also increased with Washington Square/Kruse Way total office under construction jumping from 877,000 square feet Class A in the fourth quarter of last year to over 1.1 million square feet 18% $27 currently underway. $25,50 26 16 25 14 24 Forecast r12 23 Despite the seasonal setback, Portland's Central Business District 10 10.5i 21 continues to be the tightest major submarket. Class A vacancy 20 stands at 6.4 percent and there are limited options for any tenant 6 19 1a looking for more than 30,000 square feet. The CBD market will 6 17 tighten as the year progresses, due more to a limited supply than 4 10/05 10/06 101/0716 particularly robust demand. Companies are increasingly expecting more from their employees and are doing more with less. The hyper- Vacancy% Rental Rales$ expansions of the late 1990's and early 2000 are gone, having been replaced, after several years of stagnation, by stable, sustainable organic growth. With a conservative estimate of net absorption (based on an average of the previous 10 years) vacancy is expected 0 2007 Grubb&Ellis Company 2 Office Market Trends First Quarter 2007 to drop below 5 percent by the end of 2007 and be at an all time low Tenants throt.rghout the of less than 4 percent in 2008. Rental rates have already begun to metro area will meed to spike, jumping from $23.80 to $24.31, in the first quarter. This repre- prepare,, themse1vus for a sents an annualized increase of 8 percent and indicates that Class r1onv 177arket reality A tenants will be facing average rental rates of over $26.00 by the end of 2007. The best space, Class A+, is already being marketed at rates from $28-$30 full service. Construction talk has increased significantly but no major CBD tower has yet to break ground. Rather, a number of smaller infill, redevel- opment or mixed-use projects have broken ground or are on the Area Sublease Space verge of breaking ground, helping to meet the needs of CBD tenants. in Square Feet These projects include: The Lovejoy, 12th & Washington, Block 90 1.6 MIL and 809 NW Flanders, 1.4 1.2 Opportunities and Challenges 1.0 The Washington Square/Kruse Way submarket suffered additional 0.8 625,048 losses this quarter, much of it due to the continuing fallout from the 0.6 0.4 mortgage industry shakeup. These losses, coupled with the quiet 0.2 period resulting from the Shorenstein purchase of the Equity Office 0 Properties portfolio from Blackstone, led to a slowdown in activity in 10105 10/06 10/07 the submarket. It remains to be seen what additional losses may be coming from the sub-prime mortgage industry meltdown, but deals in the pipeline indicate that the Kruse Way submarket will continue to be a strong performer in 2007. Deals already announced include. Oregon State Bar at 55,426 SF, Oregon Medical Association, at 34,905 SF, and American Family Insurance, at 42,801 SF. Office Under Construction in Square Feet Tenants should brace themselves for sticker shock when they try to 1.4 renew in the Kruse Way submarket. It has been reported that rents in 1.2 1,102,593 the area are so fluid that lease rates on proposals for the same space 1'0 can increase from one month to the next and concessions have been 0.8 0.6 gone for some time. 0.4 0.2 Tenants throughout the metro area will need to prepare themselves 0 for a new market reality. The best spaces have multiple tenants 1 Q/05 1 Q/06 1 Q/07 competing for them. Where in the past a tenant could take their time in reviewing their options and selecting a space, the current market environment requires tenants to act fast if they want to secure a particular space and be prepared to go out of pocket for a portion of the tenant improvement buildout. 0 2007 Grubb&Ellis Company 3 Office Market Snapshot Portland First Quarter 2007 By Submarket Total(1) Vacant (2) Net Absorption Under Const.(3) Asking Rent (4) (All Classes) SF SF Vacant% Current Year To Date SF Class A Class B CBD 17,144,421 1,631,072 0,5% (66,809) (66,809) 289,343 $24.31 $18.55 CBD Total 17,144,421 1,631,072 9.5% (66,809) (66,809) 289,343 $24.31 $18.55 Portland Suburbs Clackarnas/Sunnyslde 1,268,595 120,166 9,5% 51,307 51,397 18,000 $24.62 $19.50 ColumbiaComidor 538,455 111,163 206% 17,286 17,286 $20.00 $16.77 Eastside 1,657,555 187,088 11.3% 5,397 5,397 208,264 $23.36 $16,55 Johns Landing/Barbur Blvd 1,625,853 215,323 13.2% (23,062) (23,062) $25.30 $19.60 Lloyd District 2;403,011 244,263 10.2% (6,090) (6,090) $24.59 $14,63 Nodhwest 1,641,301 114,713 7.0% (2,923) (2,923) 16,400 - $18.58 Sunset Corridor 3,793,056 848,328 .22.4% 6,311 6,311 - $21.21 $18.13 SW/Beaverton/Sylvan 2,788,321 497,237 178% (38,489) (38,489) 158,400 $23.79 $17.03 TualatinNAlsonville 1,215,408 330,357 27.2% (32,814) (32,814) 34,000 $24.74 $20.47 Washington Sg1Kruse Way 5,577,114 557,072 10.0% (89,025) (89,025) 248,186 $25.50 $19.06 Portland Suburban Total 22,509,569 3,225,710 14.3% (112,012) (112,012) 683,250 $24.16 $18.04 Clark County Suburbs Camas/Washougal 94,876 - - 0 - - - Cascade Park 1,886,587 200,088 10.6% (53,837) (53,837) 10,000 $23.66 $19.92 CBDfWeslVancouver 1,753,118 188,295 10,7% 4,326 4,326 120,000 $23.57 $18.36 Clark County Outlying 17,475 9,572 54.8% (2.755) (2,755) - $24.00 Hazel Dell/Salmon Creek 577,472 80,401 13.9% 0 $21,50 $19.95 Orchards 243,033 30,800 12.7% 21.300 21,300 - $14.69 Sl.Johns/Cenlral Vancouver 566,442 149,612 26.4% (2,965) (2,985) $22.95 $17.06 Vancouver Mall 690,217 164,969 23.9% 60,028 60,028 $21.66 $20.05 Clark County Suburban Total 5,829,220 823,737 14.1% 26,077 26,077 130,000 $22.92 $19.03 Suburban Total 28,338,789 4,049,447 14.3% (85,935) (85,935) 813,250 $23.99 $18.21 Totals 45,483,210 5,680,519 12.5% (152,744) (152,744) 1,102,593 $24.13 $18.30 By Class Available for Sublease (All Submarkels) CBD Suburban Class 23,278,145 2,545,762 10.9% (122,200) (122,200) 665,466 126,227 326,075 Class 15,181,910 2,034,996 134% 8,726 8,726 417,107 1,855 159,826 Class 7,023,155 1,099.759 15.7% (39,270) (39,270) 11,065 - Totals 45,483,210 5,680,519 12.5% (152,744) (152,744) 1,102,593 139,147 485,901 (1)Inventory includes multi-tenant and single tenant buildings with at least 10,000 sq.ft. (2)Vacant space includes both vacant direct and vacant sublease space. (3)Space under construction includes speculative and build-to-suit for lease projects. (4)Asking rates are per square foot per year full service.Rales for each building are weighted by the amount of available space in the building. Grubb&Ellis statistics are audited annually and may result in revisions to previously reported quarterly and final year-end figures. For more information on the Portland Office Market, contact one of our specialists: David C.Squire,SIOR Thomas A.Remley,SIOR Irfan Tahir Jake Lancaster Michelle Franceschi Managing Director Senior Vice President Investment Associate Office Specialist Office Specialist Executive Vice President 503-972-5512 503-972-5509 503-972-5511 503-972-5523 503-972-5505 Julie Bennett Eric Haskins Matt Adams Bradford H.Fletcher,SIOR Donn M.Sullivan,SIOR Office Specialist Senior Associate Office Specialist Managing Director Senior Vice President 503-972-5506 503-972-5503 503-972-5543 Executive Vice President 503-972-5522 Brandon Frank David HIII Jeff Snyder 503-972-5500 Senior Associate Vice President Office Specialist 503-972-5504 503-972-5510 503-972-5502 GrubbnElhsr O Grubb&Ellis Company ' Someme of of the data in this report has been gathered from third party sources and has not been independently vented Property Solutions Worldwide by Grubb&Ellis Grubb&Ellis makes no warranties or representations as to the completeness or accuracy thereof. Industrial Market Trends Portland Grubb & Ellis Research First Quarter 11 Grubbc0lis. Market Pushes On Property Solutions Worldwide Executive Summary While the overall economy in Oregon got off to a slow start in 2007, growth predictions remain stable for the year. Job growth has exceeded population growth, pushing unemployment rates down. Issues to look out for include the slowing housing market, modest manufacturing job growth and the wild-cards of energy prices and interest rates. These issues could be just a bump in the road, or could portend an end to this long economic expansion. The Portland industrial market pushes on, despite cooling economic news. Contents Vacancy rates have dropped to ten-year lows, net absorption is strong Executive Summary. . . . . . .1 and construction is picking up steam. Asking rental rates are rising for both shell and flex space. Speculative construction is surging, with almost Overview . . . . . . . . . . . . . . .2 700,000 square feet of speculative space delivered to the market in the Forecast. . . . . . . . . . . . . . . .2 first quarter and another 1 million square feet in the pipeline. Opportunities & Challenges 3 The Sunset Corridor had a solid quarter, spurred on by the SolarWorld Market Snapshot . . . . . . . . .4 deal, which took over 400,000 square feet off the market. That submarket has seen vacancy drop substantially, with overall vacancy now standing at 6.6 percent and R&D/Flex vacancy down 250 basis points. 12% 8.8 8.0 7.1 6.6 7.4 7.4 6.9 6.3 6.1 11% Portland Office Market Trends is a newsletter published quarterly by 10% Grubb&Ellis Company.To obtain additional copies or other Grubb&Ellis publications, 9% please contact: 8% Patricia K.Raicht Client Services Manager 7% E-mail:patdda.raichtogrubtsellis.com 6% Grubb&Ellis Company 1120 NW Couch St.,Suite 350 5% Portland,Oregon 97209 Phone:503.241.1155 4% Fax:503.241.0306 10/05 2Q/05 3Q/05 4Q/05 1Q/06 2Q/06 3Q/06 40/06 1Q/07 Internet:www.grubb-ellis.com Industrial Vacancy Rate* 0 2007 Grubb&Ellis Company *AI/Product Types Industrial Market Trends First ""� uarter 2007 Overview The Portland metro area economy got off to a slow start in 2007 but growth The Portland industrial predictions remain stable for the year. Unemployment levels remain near market continues to five-year lows, despite monthly fluctuations, and job growth has continued demonstl ate strength on a modest but stable path. With 2006 metro area job growth revised up with vacancy dropping to 3.2 percent, and population growth for 2006 coming in at 1.9 percent, the to a ten-year low of 6.1 metro area's economy ended on solid footing. There are warning signs on percent. the horizon however, which may signal a slight slowing in the rate of this economic expansion or may be a sign of the end of the cycle. Areas of concern remain the modest job growth in the manufacturing sector and the housing sector slowdown. Fuel prices are also an area of concern, as are interest rates. Current estimates call for a metro area job growth rate of 2 Industrial Vacancy percent for 2007, which will keep the economy on a steady path. 16.0 14.0/ The Portland industrial market continues to demonstrate strength with 12.0% vacancy dropping to a ten-year low of 6.1 percent. Net absorption,while not 1o.o^i record-setting, was solid at just over 1 million square feet, and the market 8.0% 6.0% saw over 750,000 square feet of new product delivered to the market. As 4.0% expected, rental rates are inching up across the board, with overall shell 2.0% rates ending the quarter up $0.01 to$0.38 and flex rates up $0.05 to$0.79 o.o% per square foot triple net. Activity was brisk this quarter and there continues 1Q105 10106 10/07 to be a host of larger users circling the market. MNF/WHSlDIST R&D FLEX Construction season is moving into full gear and developers are responding with a slew of new speculative projects underway. Construction had been Industrial Supply and Demand dominated by owner/user and build-to-suit projects but there has been a shift in the market with speculative construction now dominating activity. Over 1.6 MIL 750,000 square feet of new product was delivered to the market in the first 1.4 quarter,just 66,000 of which was not speculative. Construction is happening 1.2 throughout the metro area with projects in almost all submarkets. A signif- 1.0 icant amount of activity is occurring in the NE/Columbia Corridor submarket, 08 along 1-5 South and in the Rivergate area. 0.6 0.4 Forecast 0.2 The Sunset Corridor posted a strong quarter driven by a newcomer to the 0.0 10105 10106 10107 market. SolarWorld AG purchased the 400,000 square-foot former Komatsu Silicon America facility and has begun retrofitting the property into the largest New Construction Net Absorption solar factory in North America. This transaction took this long-vacant facility off the market and led to a significant drop in overall vacancy in the Sunset Corridor. The market now stands at 6.6 percent vacant overall and R&D/ Flex vacancy is just 6.9 percent. Other Class A Flex transactions in 0 2007 Grubb&Ellis Company 2 Industrial -t Trends First Quarter11 the Sunset Corridor helped to push Class A Flex vacancy in that submarket down from 21.6 percent last quarter to 19.1 percent. Landlords in this market have reason to be optimistic as it looks like the worst is well behind them and Tenants seeking state- the market is moving toward equilibrium. Some of the larger transactions in of-the-art facilities have the Sunset Corridor included the following: not been put Off by higher rental rates anti Planar—61,000 SF—Techpointe Commons owners have held firm Nike—43,000 SF—Woodside Corporate Park on these new projects. Nvidia—22,000 SF—AmberGlen McKenzie Books—21,000 SF— Beaverton Creek I The Columbia Corridor remains one of the tightest submarkets in the metro area with overall vacancy at just 5 percent and average asking rates now Weighted Average Rental Rates over$0.40. Deals in the pipeline indicate that the submarket will post a strong year in 2007 and construction has begun on a number of new specu- $0.60 lative projects. Development in the NE/Columbia Corridor is pushing east to Fairview, Gresham and Troutdale, as all the closer-in prime sites get absorbed. 0.60 70 The Reynolds Industrial site, a 700-acre parcel of land north of the Troutdale Airport, will likely be the centerpiece to future development in the area. rt 0.40 Opportunities and Challenges 0.20 As the market continues to tighten, land values have begun to rebound to 10105 ,Q,os ,Q/07 pre-recession levels. Well-located, entitled and serviced sites are becoming Shell Rates Flex Rates increasingly rare and developers are competing with users to secure the best sites. As rental rates increase, with the best space in the premier markets now asking over$0.42 per square foot on the shell and a $0.75 per square foot surcharge, speculative development now pencils. This is evident in the growing number of speculative projects currently underway and in the pipeline in the Columbia Corridor and along 1-5 South. Developers are paying $5.00- $7.00 per square foot for land but owner/users are still willing to pay more for sites if they have a need. It will remain a challenge for developers to find sites that work, either economically or locationally. The crop of new speculative industrial buildings currently under construction will offer tenants something they have not had in quite some time, a choice. Tenants seeking state-of-the-art facilities have not been put off by higher rental rates and owners have held firm on these new projects. Shell rates will start in the$0.40 range and surcharges begin at$0.70. Expect these rental rates to continue their climb, as construction and development costs remain high and competition for space remains stiff. m 2007 Grubb&Ellis Company 3 Industrial Market Snapshot Portland First Quarter 2007 By Submarket Total(1) Vacant (2) Net Absorption Under Const.(3) Asking Rent (4) (All Property Types) SF SF Vacant% Current Year To Date SF WH1Dist R&D/Flex 217 Corridor/Beaverton 8,576,062 940,419 11.0% 111,59D 111,590 - $0.44 $0.88 Clark County 13,749,6D7 546,974 4.0% 43,997 43,997 355,271 $0.41 $1.03 Close-in SE 4,493,177 266,932 5.9% (91,211) (91,211) $0.34 $0.92 GreshamfOuter SE 1,777,255 112,000 6.3% (38,070) (38,070) - $0.34 $0.75 1-5 South Corridor 17,502,917 804,575 4.6% 52,490 52,490 287,005 C$O. $0.72 Milwaukie/Clackamas 13,206,219 1,228,091 9.3% 7,650 7,650 27,000 $0.53 NE/Columbia Corridor 25,102,285 1,256,157 5.0% 98,677 98,677 525,574 $0.40 $0.56 Northwest 7,978,093 86,915 1.1% 173,757 173,757 - $0.46 $1.00 Rivergate 12,297,951 1,287,730 10.5% 139,994 139,994 40,000 $0.33 $0.64 Sunset Corrldor 23,231,621 1,528,447 6.6% 449,860 449,860 10,000 $0.50 $0.85 Swan Island/Close-in NE 6,015,500 89,991 1.5% 82,220 82,220 - $0.74 - Totals 133,930,687 8,148,231 6.1% 1,030,954 1,030,954 1,244,850 $0.38 $0.80 By Property Type Askintl Rent (All Submarkets) R&D/Flex 32,720,801 2,405,009 7.4% 710,033 710,033 95,929 $0.80 Warehouse/Distdbution 101,209,886 5,743,222 5.7% 320,921 320,921 1,148,921 $0.38 Totals 133,930,687 8,148,231 6.1% 1,030,954 1,030,954 1,244,850 $0.49 (1)Inventory includes multi-tenant and,tenant buildings and owner-occupied with at least 10,000 sq.ft. (2)Vacant space includes both vacant direct and vacant sublease space. (3)Space under construction includes speculative,owner and build-to-suit for lease projects. (4)Asking rates are per square fool per year triple net.Rates for each building are weighted by the amount of available space in the building. Grubb&Ellis statistics are audited annually and may result in revisions to previously reported quarterly and final year-end figures. For more information on the Portland Industrial Market, contact one of our specialists: Bradford H. Fletcher,SIOR Joe Sugura Irfan Tahir Jeff Snyder Managing Director,Executive VP Vice President Investment Associate Associate 503-972-5500 503-972-5520 503-972-5509 503-972-5502 David C.Squire,SIOR David Hill Mike Newman Tyler Shells Managing Director,Executive VP Vice President Industrial Associate Associate 503-972-5505 503-972-5510 503-972-5517 503-972-5525 Tamara Garlett Associate 503-972-5545 Grubb&Ellis. 02007 Grubb&Ellis Company ' Some of the data in this report has been gathered from third party sources and has not been independently verified Property Solutions Worldwide by Grubb&Ellis.Grubb&Ellis makes no warranties or representations as to the completeness or accuracy thereof. Commercial Real Estate Terminology Page 1 of 5 Home Advertise Site Guide to G 0 .Com (There Corporate herica finds Real (stale Help M Register Back Search` Commercial Real Estate Terminology Real Estate FAQs Real Estate Forms Clirk.•Hcrc'T nwrtic��c1 _-.._..___.---------- ...... ---._rnm 1-r dh—k-Ari,t,,v(;nn:ilc: Absolute Net - Lease requiring tenant to pay in addition to base rent all costs associated with the operation, repair and maintenance of the building, all real estate taxes, and utilities including repair and maintenance of the building's stricture and roof. Often the tenant is directly responsible both for all such costs and for the active handling of the items themselves. Distinguished from Triple Net(see below) by tenant's responsibility for maintenance and repair of the building structure and roof. ADA - Americans With Disabilities Act passed by Congress in 1994 with intent to provide persons with disabilities accommodations and access equal to or similar to that of the general public. Additional Rent - Any amounts due under a lease that are in addition to base rent. Most common form is operating expense increases. Agency - Any relationship in which one party (agent) acts for or represents another (principal) under the authority of the latter. Agency involving real property should be in writing,such as listings,trusts, powers of attorney, etc. 9 Y 9 P Allowance - A set dollar amount provided by the Landlord under a lease to be used by the Tenant for a specific purpose. Examples Include allowances for tenant improvements, moving expenses design fees, etc. If the expense exceeds the allowance amount, such excess is the Tenant's responsibility. If the expense is less than the allowance, the savings are retained by the Landlord unless their agreement specifies otherwise. Alternative Workspace - Term embodies numerous concepts related to utilization of space including telecommuting, hotelling, office sharing and open office plans. Amortization - Payment of debt in regular, periodic installments of principal and interest, as opposed to interest only payments. May also be used in a lease where the landlord incurs costs for additional tenant improvements which are effectively treated as a debt and repaid by tenant over the term of the lease. Assignment - A transfer to another of any property, real or personal, or any rights or estates in said property. Common assignments are of leases, mortgages,deeds of trust,but the general term encompasses all transfers of title. Base Building - The existing shell condition of a building prior to the installation of tenant improvements. This condition varies from building to building, landlord to landlord, and generally involves the level of finish above the ceiling grid. Base Rent - A specific amount used either as a minimum rent in a lease (retail) which uses a percentage of sales or overage for additional rent or sets a base onto which Is added expenses and taxes in a net lease or increases in those items in a fully serviced lease. Base Year - The 12 month period upon which a direct expense escalation of rent is based. Typically the calendar year the lease commences. BOMA - Building Owners and Managers Association. BOMA publishes the definition of rentable and useable area, which is used to determine the square footage leased in most commercial office buildings. CAM Charges - Common Area Maintenance charges. Those charges levied on or the expenses Incurred in maintaining the common areas of a building. Churn - Moving people from one workspace to another within the leased premises. Usually involves relocation of furniture, phones,and the like and can be very expensive and time consuming. A high churn rate is to be avoided. Circulation - Those areas (hallways, corridors, etc.) in an office space that are used to travel between offices, cubicles and the like. Commencement Date - The date on which a lease begins. This is typically but not always the day on which the tenant takes possession of the leased space, which usually occurs upon substantial completion of the tenant improvements. (See occupancy Date). 6/15/?007 Commercial Real Estate Terminology Page 2 of 5 Class - Class is usually used in conjuction with an office property and refers to the quality of property. Class definitions fall with the following guidelines. Class A+: Landmark quality, highrise building with prime central business district locatation (the best of the Class A buildings). Class A: Generally 100,000 sf or larger (five or more floors), concrete and steel construction, built. since J' 1980, business/support amenities, strong identifiable location/access. Class B: Renovated and in good locations. Newer buildin C are smaller in size, wood frame construction, and/or in non-prime location, ass Ider, unrenovatec of any size in average to fair condition. Common Area - Common area is the area used in common by the tenants of an office building, Common area includes building and elevator lobbies, restrooms and the corridor leading from an elevator lobby to a tenant space. Contingent Fees- Fees to be paid only in the event of a future occurrence. Examples include: Attorneys(especially in negligence cases) paid based on winning the suit and collecting damages; and a broker's commission paid only upon closing the sale of a piece of property. Certificate of Occupancy (COO) •- A statement issued by a local government verifying that a newly constructed building is in compliance with all codes and may be occupied, Demised Area - The walled off and secured area of a leased space, separated from spaces leased to others (by a "demising" wall). Also measured as useable area. Discount Rate-The rate of interest used in a present value analysis representing the"time value of money Effective Rent -The average per square foot rent paid by the tenant over the term of a lease. Takes into account only free rent and stepped rents. Does not include allowances,space pockets,free parking and other similar landlord concessions. Effective Useable Area - Excludes those areas within the Useable Space(see below)that the tenant pays rent on but effectively cannot use such as columns and sharply angled spaces. Equivalent Level Rate (ELR) - The ELR Is the flat rate per square foot that, If paid each year in nominal dollars, will equal the same total present value as a proposed lease's variable cash flows. The ELR is calculated by discounting all cash flows to a net present value per square foot and then amortizing this lump sum amount evenly over the term of the lease on a cost per square foot basis. Escalation - A clause in a lease providing for an increased rental at a future time. May be accomplished by several types of clauses, such as: (1) fixed increases -- a clause which calls for a definite, periodic rental increase; (2) cost of living -- a clause which ties the rent to a government cost of living index, with periodic adjustments as the index changes; (3)direct expense-- the rent adjusted according to changes in the expenses of the property paid by the lessor, such as tax increases, increased maintenance costs, etc. Estoppel Certificate -An instrument which itself prevents individuals from later asserting facts different from those contained in the document. Often required by the buyer of an office building. The tenant and landlord both sign the estoppel certificate, confirming the lease and pertinent facts thereto.Thereafter, neither party may make claims to the contrary. Exclusive Listing - Any property where the owner has signed an agreement with a real estate broker to lease and/or sell their property. That broker has an "exclusive listing"on the owner's property. Expansion Option - A right granted by the landlord to the tenant whereby the tenant has the option(s) to add more space to its premises pursuant to the terms of the option(s). Expense Stop - A fixed amount (typically per square foot) in a lease where the tenant is responsible for all building operating expenses and taxes in excess of said amount, Extension Option -An agreed continuation of occupancy under the same conditions, as opposed to a renewal, which implies new terms or conditions. In a lease, it is a right granted by the landlord to the tenant whereby the tenant has the option to extend the lease for an ad. Fair Market Rent - The rent which would be normally agreed upon by a willing landlord and tenant in an "arm's length transaction"for a specific property at a given time, even though the actual rent may be different. In a lease,the term "fair market rent" is defined in a number of different ways and Is subject to extensive negotiation and Interpretation, Free Rent - A concession granted by a landlord to a tenant whereby the tenant is excused from paying rent for a stated period during the lease term. Fully Serviced Lease - A lease in which the stated rent Includes the operating expenses and taxes for the building. Same as Gross Lease. Opposite of Net Lease. Gross Lease - A lease in which the stated rent includes the operating expenses of the building. Same as Fully Serviced Lease. Opposite of Net Lease. Gross Up -An adjustment made to operating expenses to account for the occupancy level in a building. When operating expenses are "grossed up", it means that the building's variable expenses have been adjusted upwards to the level that those expenses would be incurred if the building was fully occupied(typically 95%). Ground Lease - A lease of land only, (either vacant or exclusive of any buildings on it). Usually a net lease on a long term basis (30 years+). Ground rent should not be charged back to the tenant as an operating expense. Hotelling - An alternative workspace concept where rather than having an assigned exclusive workspace, an employee accesses one space, perhaps being one of many such spaces in common with others on an as needed basis, and otherwise works outside of 6/15/9007 Commercial Real Estate Terminology Page 3 of 5 the office. Hoteiling - (Another usage is what those members of an office relocation committee are entitled to after going through a relocation or office redesign, making use of a commercial shelter offering food, lodging, etc.; preferably in some warm spot like Hawaii.) HVAC- Heating, Ventilation, Air Conditioning. A general term encompassing any system designed to heat and cool a building in its entirety, as opposed to a space heater. Landlord (Lessor) -The party(usually the owner)who gives the lease (right to possession)in return for a consideration (rent). Lease Term -The specific period of time in which the Landlord grants to the tenant the right to possession of real estate. Lessee(Tenant) -The party to whom a lease(the right to possession)is given in return for a consideration (rent). Lessor(Landlord) -The party(usually the owner)who gives the lease(right to possession)in return for a consideration (rent). Letter of Intent-There are potentially multiple uses of this term. Generally a written statement that two parties to a prospective transaction (buyer/seller or lessor/lessee) intend to proceed to a final agreement in good faith on stated principal business terms of the deal to be entered into. This meaning applies when executed by both parties. Alternatively such a document may be signed only by one party and is then an indication of a willingness to enter into agreement on the stated terms and conditions. To avoid legal issues regarding offer and acceptance and thus formation of a binding contract, care should be taken to include a clause stating that there is not a specific offer and no intent to be a legally binding obligation. However, an obligation to continue to negotiate in good faith to conclusion can be created. Listing Agent- The real estate agent hired by the property owner to lease a property on their behalf. The agent obtains a listing agreement, which calls for that agent to act on the owner's behalf as a fiduciary in leasing the property. Load Factor- In a lease, the load factor is the multiplier to a tenant's useable space that accounts for the tenant's proportionate share of the common area (restrooms, elevator lobby, mechanical rooms, etc.). The load factor is usually expressed as a percentage and ranges from a low of 5%for a full tenant to as high as 15%for a multi-tenant.floor. Subtracting one (1) from the quotient of the rentable area divided by the useable area yields the Load Factor. At times confused with the "loss factor" which is the total rentable are of the full floor less the useable area divided by the rentable area. (If a full floor broken up into multiple tenancies has a useable area of 18,000 s.f. and a rentable area of 20,000 s.f.,the load factor is 11.1%and the loss factor is 10%. Master Lease - A lease controlling subsequent leases. May cover more property than subsequent leases. For example: "A" leases an office building, containing ten offices, to "B". "B"subsequently subleases the ten offices individually. The ten subleases from "B" as sublessor are controlled by the lease from"A"to"B" (master lease). Net Lease -(See also"Triple Net").Today this generally indicates a lease in which the stated rent excludes the insurance, utilities, operating expenses and real estate taxes for the building. The tenant is then responsible for the payment of these costs either directly or as additional rent. Opposite of Gross or Fully Serviced Lease. Net Present Value (NPV) -The calculation of NPV takes into account both the netting of cost and benefits and the time value of money.See Present Value. Net Rentable Area - (Same as Rentable Area).The area (square footage)for which rent can be charged. Generally it is the gross area of the full floor less the area of all vertical penetrations(elevator shafts, stairwells, mechanical shafts etc.) Rentable area can be measured in many ways, but the most common measurement for office buildings is according to BOMA standards. Net Rentable area includes the tenant's premises plus an allocation of the common area directly benefiting the tenant, such as restrooms, common corridors, mechanical and janitor's rooms and the elevator lobby on the tenant's floor. Nondisturbance - So long as lease is not in default, Its rights to occupancy under the lease will not be disturbed by the lessor or it's successors or assigns. Occupancy Cost - Any cost or charge incurred by a tenant pursuant to its lease, such as rent, operating expense increases, parking charges, moving expenses, remodeling costs,etc. Occupancy Date - Unless specifically stated otherwise in the lease, it is the date on which the tenant takes possession of its leased premises. (See also"Commencement Date"). Open Listing - Any property that is leased directly by the owner. Sometimes, the owner will employ an in-house leasing agent. Typically, these are called open listings, where the owner will pay a full commission to any broker who brings a tenant to the property. Operating Expenses -The cost of operating an office building, such as janitorial, management fees, utilities, and similar day to day expenses, as well as taxes, Insurance, and a reserve for replacement of items which periodically wear out. Should not include capital expenses such as roof replacement nor expenses associated with the production of income such as leasing commissions and legal fees. Owner's Representative-An agent who is an advocate for the owner and/or landlord. Pass Throughs -An increase in operating expenses over the base year amount that is billed to the tenant as additional rent. See escalation. Premises - Typically the entire rentable area leased by lessee. Sometimes used to designate solely the useable area leased by lessee,i.e, that for which the lessee has exclusive occupancy as opposed to the common areas. rfm (/1,;1?nn7 Commercial Real Estate Terminology Page 4 of 5 Present Value - The present value is the amount that must be invested now to produce the known future value. For any sum invested at a given interest rate, the amount one would receive at the end of the period can be determined by taking the investment times one (1) plus the interest rate of the period to the power of the period. For example, if $10 is invested in an interest rate of 1.0% for one year, the investment would grow to $1.1. at the end of the year. It follows, then, that $11. one year from now is worth$1.0 today; that is$10 is the present value of$11. Reasonable Consent - A standard applied in a lease (most often in a sublease clause) which limits the landlord's ability to withhold consent in its sole discretion. If a reasonable person would give consent to an action given the circumstances, so must the landlord. Renewal Option - The right of a tenant to renew (extend the term of) a lease for a stated period of time at a rent to be determined(i.e.9.5%of"fair market rent"). Rent - Consideration paid for the occupancy and use of real property. Also a general term covering any consideration (not only money). Rentable Area -The(square footage)for which rent can be charged. Generally it is the gross area of the full floor less the area of all vertical penetrations(elevator shafts, stairwells, mechanical shafts etc.) Rentable area can be measured in many ways, but the most common measurement for office buildings is according to BOMA standards. Rental Rate - The amount of Rent paid for the occupancy and use of real property. Typically stated on a per square foot per month or per year basis. Request For Proposal (RFP) - A document typically issued by a tenant's agent to an owner(s) of real property, inviting the owner(s) to submit a proposal to the tenant for the leasing of a vacant space. The RFP sets forth the specific areas of concern to the tenant, such as the space in question, the lease term, expansion and renewal options, rental rate, and tenant improvements and other allowances to be provided by the owner. Right of First Offer or First Opportunity -A right, usually given by an owner to a tenant, which gives the tenant a first chance to buy the property or lease a portion of the property if the owner decides to sell or lease. Unlike under a Right of First Refusal,the owner is not required to have a legitimate offer which the tenant can then match or refuse. If the tenant refuses to make an offer or if the parties cannot agree on terms,the property can then be sold or leased to a third party. Right of First Refusal -A right, usually given by an owner to a tenant, which gives the tenant a first chance to buy the property or lease a portion of the property if the owner decides to sell or lease. The owner must have a legitimate offer which the tenant can match or refuse. If the tenant refuses, the property can then be sold or leased to the offeror. Right of Offset-A specific clause in a lease where the tenant has the right to deduct from the rent certain costs which are due to the tenant from the landlord. Included may be the costs incurred by tenant to cure defaults of the landlord, after notice and failure by landlord to cure the defaults.These are called "self help". Space Planning -Term is often loosely used. Most often it is the planning of the layout of the interior space of a building to meet the needs of the user. Can also include detailed interior design and preparation of construction drawings. Space planning and Interior design only need not be licensed architects. preparation of construction drawings for permit have to be prepared by architects licensed in the jurisdiction. Space Pocket - A portion of a leased premises that is set aside to accommodate future growth on the part of the tenant. The space pocket is typically fully improved at the commencement of the lease and no rent is due on the pocketed area until the earlier of"actual use"or a specified future date. Sublease -A lease, under which the lessor Is the lessee of a prior lease of the same property. The sublease may be different In terms from the original lease, but cannot contain a greater property interest. Example: "A" leases to "B" for five years. "B" may sublease to"C"for three years, but not for six years. (Rent can be greater or less than that in the prior lease.) Subordination -To make subject or junior to. Substantial Completion -Generally used in reference to the construction of tenant improvements(TIs). The tenant's premises is typically deemed to be substantially completed when all of the Tis for the premises have been completed in accordance with plans and specifications previously approved by the tenant. Sometimes used to define the commencement date of a lease. Tenant (Lessee) - A holder of an interest in property for a specific term under a lease or other rental agreement (generally a right to occupancy and use). Tenant Improvements (TI's) - Improvements to land or buildings to meet the needs of tenants. May be new improvements or remodeling, and be paid for by the landlord, tenant or part by each. Tenant Representative - An agent who is an advocate for the tenant. The relationship is most often the product of a signed representation agreement. Triple Net- A lease requiring the tenant to pay in addition to a fixed rental, the expenses of the property leases, such as taxes, insurance, maintenance, utilities, cleaning etc.The terms"net net","net net net", "triple net", and other such repetitions are used. Turnkey - Referring to an owner making a property ready for a tenant to begin business by having the tenant furnish only furniture, phone and inventory, if any.Turnkey tenant improvements are provided at the landlord's expense according to plans and specifications previously agreed upon by the parties. Unlike an allowance where the tenant pays for costs in excess of the allowance amount,the landlord bears the risk of construction in a turnkey situation. Commercial Real Estate Terminology Page 5 of 5 Value Engineering - Process by which costs can be decreased or benefits can be added to an undertaking or project through redesign, prioritization or other similar actions. Useable Area -The secured area(square footage)occupied exclusively by tenant within a tenant's leased space.The useable area times the load factor for common area results in rentable area on which rent is charged. Useable area can be measured in many ways, but the most common measurement for office buildings is according to BOMA standards. Virtual Office - An office that moves with the person. Typically used in a sales organization where the salespeople are given portable computers, modems, and cellular phones in return for having their offices taken away. Vertical Transportation - Elevators, stairs or escalators moving people or freight between floors in a building. Work Letter - Specifications for tenant improvements usually attached to a lease and/or letter of intent. The work letter provides the basis for working drawings and contractor pricing and may allocate costs between the parties. Also establishes critical dates for approval of drawings and processes. Working Drawings - Drawings prepared by a licensed architect and used by contractors in the construction of tenant improvements. Shows all architectural detail such as electric, plumbing, partitions, etc. Back to prior Page (30t)��C'. Search Web 4) OfficeSpace.com Dubai Commercial Property Fund Commercial Property Business Bay,first offices to open with 10% Business Loan Repaid Using Your Company's pa,3 year guaranteed rent Future Credit Card Sales. ShotucaseProperties .. .. .. .........—,-r.......................... I Region: Select Region Advanced Search Olells Fargo Plaza-Tacoma,WA Space Type: Select Type Move Guide Hayden Island Plaza-Portland,OR Office Space Coupons Oenvr CeMerpoint II-Denver,CO Sq.Ft.: Select Sq.Ft. Real Estate FAQs Real Estate North Pacific Plaza-Portland,OR Terminology Resource Guide Reed Hartman Park-Blue Ash,OH „- O 1995-2007 Commercial Space Online,Inc.All rights reserved. Home Tenants Agents Vendors About Us Disclaimer Contact Us 6/1 V9007 r Y � l INTEGRATED REAL ESTATE SOLUTIONS` r • „ � • 4101M 4• x ,'4�.;.,-`,• A .x .fit,..., .z.,s-„s.. �, _S...c'�-.....Y '* .. _ r _.., . _.. 5 '`as.. ?-_,�45�.. • The performance of Portland's retail market from - ... ...• of a statistical standpoint, is often determined by the amount of new space that comes onto the market. Retailers remain interested in new construction. This bodes well for the coming year, as the amount of retail space under construction increased each quarter of 2006. At present, there is over two million square feet of retail space in the pipeline, of which only 35 percent ' is available. Absorption Portland's overall retail vacancy rate remained relatively stable Although net absorption in Portland's retail market declined in during 2006,closing the year at 5.6 percent. The average asking each of the four quarters of 2006,it remained positive. Total net rental rate was$16.23 per square foot,NNN,continuing the absorption for the year met our forecast,totalling 1.15 million general upward trend of the last two years. square feet. Submarket vacancy rates followed absorption,with the Sunset Washington County in Oregon and Clark County in Washington are Corridor and Vancouver realizing significant declines in vacancy. the two fastest-growing counties in the Portland metropolitan area. • The Sunset Corridor vacancy rate declined from 4.5 percent to 3.7 Thus,it is not surprising that,of Portland's retail submarkets,the percent over the fourth quarter,with the majority of the activity Sunset Corridor and Vancouver saw the highest levels of absorption occurring in the Tanasbourne area. Vancouver saw its vacancy during the final three months of the year. This trend is likely to rate fall from 6.2 percent to 5.6 percent. icontinue,as much of the retail space currently under construction is in these areas. Portland,with its relatively low level of retail space per capita, continues to attract new tenants to the market as well as i There are a number of risks facing the economy,including a hard additional locations from existing retailers. Although construction landing in the housing market,rising energy costs,and the usual completions slated for 2007 bring the potential for increased possibilities of a stock market correction or a sharp decline in the dollar. Although these could impact the local retail market,we vacancy rates,it is more likely that continued retail interest will expect net absorption for 2007 to greatly exceed that of 2006. lead to stable vacancy during the year. We expect the overall Absorption from construction completions at Cascade Station, retail vacancy rate to remain in the range of 5.5 percent for 2007. Nyberg Woods,and Eastgate Plaza alone will likely equal 75 percent of the 2006 total. Rental Rates vs.Vacancy Rates at. Absorption Trends Sib�6 •us I 31R,fA r. Spilt):w.�._.._.__...__......, �v..�.,..__ ..._.. _.....�.....,.. yys�t S134i! Six Epp MOD ;9t BpQ $$4M Opp suatr 200 S Ia 6b i9• su.30 s A3 .�m.. _� •__�...._.. .,__._._.-----�......ri .YUD ,,.. _. . ... vocomy Rate g Awatol Rots ./� . tf� .� �.} ,q v1r�6,y X46. '4,11,,{4tc,y� 1 e' 1 • 1 •'1 e INTFGRA TFL) REAL ESTATE SOLUTIONS'" �,� • �• -• • �. ��. Fourth Quarter 2006 Submarket Statistics SUBMARKET INVENTORY AVAILABLE VACANCY NET ABSORPTION AVERAGE (SF) (SF) RATE (SF) ASKING RATE(NNN) CBD/Northwest 6,676,339 270,534 4.1% 20,030 $17.80 Eastside 12,721,454 921,912 7.2% (12,641) $15.38 Gresham 6,630,415 615,189 9.3% 18,525 $14.53 Southeast 7,632,457 323,703 4.2% 10,193 $15.02 Southwest 6,445,128 388,768 6.0% (22,769) $16.59 Sunset Corridor 13,421,357 501,276 3.7% 108,492 $18.07 Vancouver 11,120,506 619,952 5.6% 73,700 $17.40 Portland Metro Totals/Avgs. 64,647,656 3,641,334 5.6% 195,530 $16.23 ACTIVITY Save-A-Lot,a nationwide chain owned by SuperValu,opened two stores in September. In November,it announced plans to open a store Portland has emerged as a viable market for many retailers, in the Hazel Dell area of Vancouver. The retailer,which also opened a as population growth has continued and constraints on commercial growth have left the market relatively distribution center in Portland,expects to eventually grow to 100 stores in underserved. Gymboree Outlet,BCBG Max Azria,and Yves the Northwest region. Delorme opened their first Oregon locations at the Woodburn Company Stores in the final months of 2006. Golfsmith will Wickes Furniture,based in Illinois,has agreed to occupy a new 42,500 open its first two Oregon stores in new projects at Nyberg square foot store at Cornell Sunset Center in Beaverton. In addition to a Woods and Cascade Station. Numerous other restaurants distribution center,the retailer operates stores in Tigard,Delta Park and and retailers have recently been attracted to Oregon. Clackamas. Portland also continues to attract new concepts from retailers. In addition to Costco Home,which will open at Macy's has closed its downtown location as renovations continue on the Cascade Station,and Williams-Sonoma Home,currently open site,which has been renamed Meier&Frank Square. When completed, in Northwest Portland,Pottery Barn will be testing its new the Macy's will occupy the basement level and five stories of retail space, Portland Bed and Bath concept in Portland,also in the trendy Northwest area. The concept had previously been a catalog on top of which will sit a 332-room Starwood Luxury Collection Hotel,to and e-commerce play. be called The Nines,developed by Sage Hospitality Resources. Macy's is set to re-open in late 2007,while the hotel plans for a Summer 2008 grand opening. About Pacific Security Caplial Nike announced that it is looking for a new space for Niketown, Pacific Security Capital(PSC)is a vertically integrated real estate indicating that it will vacate the downtown location it has occupied for 16 services company offering advisory services,asset and property years. However,in good news for downtown Portland,a Nike spokesman management,development services,capital markets solutions, indicated that the new location will likely be in the Central City. landlord/tenant representation and investment sales.Our mission is to add value to client initiatives at every level of the real estate Chipotle Mexican Grill opened a new location in Vancouver in November cycle.Corporate headquarters are located in Beaverton,Oregon with of 2006,bringing its Portland area total to seven restaurants. The offices in Washington and California. Denver-based chain entered the market in February 1004. Other Mexican restaurant chains expanding in the market include Bajio and for further information,please contact Corine Nussmeier,Emily Matzo or Muchas Gracias. Rebecca Gardner at 503-670.9300. Agenda Item No.: I IWB Meeting Date: MEMORANDUM A • TO: Intergovernmental Water Board Commissioners FROM: Public Works Director Dennis Koellermeier A/ RE: Amendment to the Joint Funding Agreement for the Tualatin Basin Water Supply Project DATE: June 29, 2007 Attached for your review, and possible recommendation to the City of Tigard, is a proposed amendment to the Joint Funding Agreement for the Tualatin Basin Water Supply Project. One of the major drivers for this amendment is the addition of the Title Transfer Project. In April of this year,the IWB passed Resolution No. 07-01 supporting the investigation of a title transfer from the Bureau of Reclamation to local ownership. This amendment authorizes payment of up to $217,445 to complete additional tasks related to the Draft Planning Report/Environmental Impact Study and to fund the Title Transfer Project. The Tigard Water Service Area (TWSA) has participated in the Tualatin Basin Water Supply Project since 2001; $820,003 has been spent to date. Clean Water Services manages the project, and fellow partners include Tualatin Valley Water District, and the Cities of Hillsboro, Beaverton, and Forest Grove. Failure to support this amendment would cause the other partners to assume we have withdrawn from the project, and our water allotment would be reallocated. I estimate we will be in a position to decide whether to continue or voluntarily withdraw from this partnership sometime this fall. Given our somewhat uncertain status regarding the project, the partners have assured me that if we withdraw, our costs would be frozen at that point.We would not be held financially responsible for work completed after our involvement in the project has ceased. Based upon these facts, I propose the IWB recommend the City of Tigard approve the third amendment to the Joint Funding Agreement for the Tualatin Basin Water Supply Project. THIRD AMENDMENT TO JOINT FUNDING AGREEMENT FOR IWRM WATER SUPPLY FEASIBILITY STUDY (AKA AS TUALATIN BASIN WATER SUPPLY PROJECT) This Amendment, dated , 2007 is between Clean Water Services (District), formerly known as Unified Sewerage Agency, a county service district formed by authority of ORS 451, the Tualatin Valley Water District, a domestic water district formed by authority of ORS 264 and the cities of Hillsboro, Beaverton, Forest Grove and Tigard, all municipal corporations of the State of Oregon (Partners) and amends the parties' Joint Funding Agreement—IWRM Water Supply Feasibility Study dated June 20, 2001 as amended by the First Amendment dated November 14,2002, and the Second Amendment dated December 4, 2003 (collectively, JFA). RECITALS 1. The Partners previously entered into the JFA under which the Partners agreed to jointly fund a study of the feasibility of alternative approaches to increase the water supply and evaluate the"no action alternative." 2. The Partners now wish to amend the JFA to fund additional tasks to complete the Tualatin Basin Water Supply Project Draft Planning Report/Environmental Impact Statement, and Title Transfer Project (collectively, Project). The Water Supply Feasibility Study was completed in March 2004. 3. The Partners also wish to amend the JFA to address the acquisition and disposition of Project assets upon termination of the JFA or termination of any Partner's participation in the JFA secured during the development of the Project. TERMS AND CONDITIONS 1. Section 2 of the JFA is hereby deleted in its entirety and replaced with the following: 912. Cost Share Each party's share of the cost of the Project shall be proportional to the party's projected share of the additional water supply as of the date of this agreement, assuming 50,600 acre-feet of additional supply. The cost share for each party shall be equal to the percentage indicated in Exhibit B attached hereto and incorporated herein." 2. Pursuant to Section 4 of the JFA, the cities of Cornelius,Banks,North Plains, Sherwood and Tualatin voluntarily terminated their rights and obligations under the JFA. Other Partners have assumed their rights and obligations as identified in Exhibit B. Page 1 of 5 Third Amendment to Joint Funding Agreement for Water Supply Project Version updated—5-8-07 i 3. From the effective date of this Amendment, each Partner shall compensate District for its share of the cost of the Project as provided in Exhibit B attached hereto and incorporated herein. A revised payment schedule with reallocation of each Partner's share is included in Exhibit B. Total payment to District for compensation for services provided during fiscal year 2007-2008 shall not exceed $1.33 million. 4.The first sentence of Section 4 of the HA is hereby deleted and replaced with the following: "Except as otherwise indicated in this Section,no party may terminate its rights and obligations under this Agreement until the Project is completed or a total of$5,797,400 has been expended, whichever occurs first." 5. Exhibit A of the JFA is hereby replaced with Exhibit A attached hereto and incorporated herein. 6. The previous Amendments to the JFA included funding for future real property purchases and other capital assets. 7. The purpose of this agreement is to enable the Partners to acquire real property, easements and other real property interests necessary for the Project (collectively,Property). The Partners grant District the authority to acquire Property necessary for the Project and to sign any documents on behalf of the Partners to purchase the Property. Any real property acquired shall be owned by the Partners as tenants in common. 8. Section 4 of the JFA established the conditions which must be met for any Partner to voluntarily terminate its rights and obligations. If any funding Partner terminates its rights and obligations under the JFA, it shall, upon the sale or transfer of any interest in the Project property, receive a share equal to the lesser of the following: a) the amount that the terminating Partner paid to purchase the Project property less that Partner's prorata share of all expenses incurred with respect to the Property including but not limited to costs of repairs, maintenance, debt service, all real and personal property taxes, governmental or other assessments levied against the Project property, title insurance premium,real estate commission, escrow fee, appraisal fee, recording fees and any other expenses incurred in connection with the sale or acquisition of the Project property (the foregoing expenses shall be referred to collectively as Expenses)or b)the amount of the terminating Partner's prorata share of the actual purchase price of the Project property less that Partner's prorata share of Expenses. The terminating Partner shall deliver to the nonterminating Partners a duly executed statutory warranty deed conveying the terminating Partner's interest in the Project property to the nonterminating Partners, or any other Partner that the nonterminating Partners may designate, free and clear of all liens and encumbrances except those existing as of the date such Partner terminated its interest in the JFA. 9. If the Project property is not sold or transferred within three years of the voluntary termination of any Partner,the nonterminating Partners shall purchase the terminating Partner's interest in the Project property in an amount equal to each nonterminating Partner's share as identified in the JFA. The nonterminating Partners shall have the Project property appraised and shall pay the terminating Partner the lesser of the following: a)the amount that the terminating Partner paid to purchase the Project property less that Partner's prorata share of all expenses incurred with respect Page 2 of 5 Third Amendment to Joint Funding Agreement for Water Supply Project Venion updated—5-9-9) to the Property including but not limited to costs of repairs, maintenance, debt service, all real and personal property taxes, governmental or other assessments levied against the Project property and the prorata share of the appraisal fee (collectively, Costs)or b) the amount of the terminating Partner's prorata share of the actual appraised value of the Project property less that Partner's prorata share of Costs. The terminating Partner shall deliver to the nonterminating Partners a duly executed statutory warranty deed conveying the terminating Partner's interest in the Project property to the nonterminating Partners, or any other Partner that the nonterminating Partners may designate, free and clear of all liens and encumbrances except those existing as of the date such Partner terminated its interest in the JFA. 10. If the Partners decide to terminate the JFA, they shall have the Project property appraised and list it for sale. Each Partner shall receive its prorata share of the actual purchase price of the Project property less such Partner's prorata share of Expenses. No terminating Partner shall be reimbursed for any other Project costs incurred before termination. 11. This Amendment shall be effective upon signing of all parties. 12. Except as amended herein, the JFA shall remain in full force and effect. The above is hereby agreed to by the Partners and executed by the duly authorized representatives below: CLEAN WATER SERVICES APPROVED AS TO FORM By: District General Counsel Date: TUALATIN VALLEY WATER DISTRICT APPROVED AS TO FORM By: Attorney Date: CITY OF HILLSBORO APPROVED AS TO FORM By: Attorney Date: Page 3 of S Third Amendment to Joint Funding Agreement for Water Supply Project Version up&ed-5-8-07� CITY OF BEAVERTON APPROVED AS TO FORM By: Attorney Date: CITY OF FOREST GROVE APPROVED AS TO FORM By: Attorney Date: CITY OF TIGARD APPROVED AS TO FORM By: Attorney Date: Page 4 of 5 Third Amendment to Joint Funding Agreement for Water Supply Project version updated-5-5-0= Exhibit A SCOPE OF WORK AND PROJECT ELEMENTS TUALA TIN BASIN WA TER SUPPL Y PROJECT The following is a review of the various phases and project elements: Water Supply Project— Completion of Draft Planning Report/Environmental Impact Statement (PR/DEIS) 1. Complete Draft PR/EIS for public review and distribution. 2. Coordinate with Bureau of Reclamation on existing operations ESA consultation. 3. Prepare Biological Assessment and Fish and Wildlife Coordination Act reports for Water Supply Project consultations. Title Transfer Project-Draft Environmental Assessment Review(EA)for Title Transfer Process 1. Develop Draft EA for Title Transfer Additional Combined Projects Elements The following are additional Project elements handled with separate contracts or agreements: 1. Governmental and Public Affairs— Consultant contracts to continue efforts to secure federal funding assistance, and community support at local,regional and national levels. Additional resources will be developed based on a comprehensive public affairs strategy. 2. Bureau of Reclamation (BOR)Pacific Northwest Regional Office and Technical and Engineering Services a. Comprehensive Facilities Review—Inspect and assess condition of Reclamation Facilities. Develop the recommended improvements and cost estimates for the improvements. b. Biological Resources Coordination—Coordinate of existing operations consultation with EIS and permitting requirements. Determine environmental and associated mitigation elements, such as wetlands, fish and wildlife mitigation areas implementation. 3. Governance Structure Development and Contract Negotiations for Title Transfer Project a. Conduct a governance structure development process with local agencies to establish an organization(s)to accept the rights and responsibilities of the transferred Reclamation Facilities. A contractor will assist with development, negotiations and preparation of the various contractual and intergovernmental agreements with the Partners. The contractual elements will include operations, management and administration of the transferred facilities. Page 5 of 5 Third Amendment to Joint Funding Agreement for Water Supply Project Vasion updated—5-B-07 4. Land Survey and Easement investigation a. Conduct a land survey,title search and related real estate activities to determine the status of the Reclamation lands and interests for the potential title transfer project. These services may include surveying, appraisals, document research and environmental assessments for the various elements of the Title Transfer Project. Continued coordination with Reclamation Lands Resources staff on review of lands acquisition needs and requirements. 5. Clean Water Services Project Management—Continued project management and staff support for the Water Supply and Title Transfer Projects. 6. Miscellaneous expenses—The tasks and elements of the Project not currently provided for in the above listed items. i Page 6 of 5 Third Amendment to Joint Funding Agreement for Water Supply Project Version updated-5-N-07 Tualatin Basin Water Supply Project and Tualatin Project Title Transfer Payment Schedule for Title Transfer and WSP Draft Environmental Impact Statement Phase For FY07-08 -WSP -JFA 3rd amendment Project Manager-Tom VanderPlaat Date 5/4/07 EXHIBIT B PAYMENT SCHEDULE (Based on reallocation and Percentage Share) Water % Share Total FY07-08 I FY07-08 FY07-08 FY07-08 FY07-08 Allocations Costs Qtr1 Qtr 2 Qtr 3 Qtr 4 Total Jul-Sep Oct-Dec Jan- Mar Apr-Jun Ac -ft MGD 100.0% 20.0% 30.0% 30.0% 20.0% 100.0% Water Quality" Clean Water Services 9,320 25.31 17.62% $234,334 $46,867 $70,300 $70,300 $46,867 $234,334 M&I "' City of Ti and 8,649 15.7 16.35% $217,445 1 $43,489 $65,234 $65,234 $43,489 $217,445 TVWD"" 23,091 41.8 43.65% $580,558 $116,112 $174,167 $174,167 $116,112 $580,558 City of Hillsboro 9,656 17.5 18.25% $242,770 $48,554 $72,831 $72,831 $48,554 $242,770 City of Beaverton 1,763 3.2 3.33% $44,333 $8,867 $13,300 $13,300 $8,867 $44,333 City of Forest GrOVE 420 0.8 0.79% $10,560 $2,112 $3,168 $3,168 $2,112 $10,560 Total M&I 43,579 78.9 82.38% $1,095,666 1 $219,133 $328,700 $328,700 $219,133 $1,095,666 Sub Total 52,900 104.2 100.00% $1,330,000 $266,000 $399,000 $399,000 $266,000 $1,330,000 WQ(exisiting) 12,618 22.8 M&I (existing w/LOC) 14,000 25.3 'Inactive(Dead)Storage Irrigation 27,022 " CWS demands based on 120 day season Fish and Wildlife "" M&I Demands based on 180 day season Recreation' 6,900 ""Note- Sherwood Shares transferred to TVWD (2000 af) Hydro power Flood Management Note:The Cities of North Plains, Cornelius and Banks elected not to sign the Joint Funding Agreement(JFA)-2nd amendment. Total (active storage) 106,540 Cities of North Plains and Cornelius shares were transferred to Total Storage 113,440 $1,330,000 City of Hillsboro City of Banks shares were allocated proportionally to all Partners under the Joint Funding Agreement- Second Amendment. Cities of Tualatin and Sherwood have decided not sign the JFA-3rd amendment and their shares will be allocated to TVWD. The Worksheets will be reviewed following the release of the WSP draft PR/EIS SCOGGINS DAM FEASIBILITY STUDY Joint Water Commission FY Budget Expenditures 07/08 $400,000 n/a 06/07 $430,000 $0 05/06 $389,490 $0 04/05 $389,490 $389,490 03/04 $230,929 $239,536 02/03 $80,000 $163,416 01/02 $0 $27,561 Total 1 $1,519,909 $820 003 Agenda Item No.: 8 IWB Meeting Date: MEMORANDUM TO: Intergovernmental Water Board Commissioners FROM: Public Works Director Dennis Koellermeier A/ RE: Participation in an Oregon Water/Wastewater Agency Response Network (ORWARN) Mutual Aid and Assistance Agreement DATE: June 29, 2007 Attached for the Board's review are documents describing a new water-related mutual aid agreement developed for Oregon-based utilities. This agreement is completely voluntary and addresses the coordination of response activities and the sharing of resources during an emergency. The agreement also spells out general administrative functions and helps define what the requesting or assisting agencies are committing to, prior to an actual call for assistance. Most of our regional utility partners are electing to join this group. I suggest we follow suit and recommend the City of Tigard enter into the ORWARN Mutual Aid and Assistance Agreement. Why Should My Agency Join ORWARN? ORWARN Interim F�o- 7 • Increased planning and coordination. Board and Outreach R • d access to specializedresources. • A single agreement provides access to all Mike Gotterba,Chaiman member utilities statewide. City of Salem Oregon • Expedites arrival of aid 503-588-6347 maotterbaL&.61yof salem.net • Is consistent with the National Incident ate rMa stewate r Management System(NIMS). Mike Stuhr,Vice Chair Portland Water Bureau• Reduces administrative conffict. g e n cy 503-823-1517 • Agreement contains indemnification and mstuhrLtvwater.ci.portland.onus worker's comp provisions to protect e s p o n s e participating utilities,and provisions for Kevin Hanway,Secretary reimbursement of costs,as needed. City of Hillsboro Water etwo rk • Provides list ofemffgency , , , - 503-615-6585 resources. kevinha(teci.hillsboro.or.us • Response to any incident is voluntary. Utilities Helping Utilities Neil Kennedy,Outreach Coordinator _ Tualatin Valley Water District oll RVA 503-848-3049 OR Mission: neilkL6tvwd.org Watch for our new Web site: Promote statewide emergency preparedness, disaster response, and www.orwarn.org mutual assistance for public and private water/wastewater utilities. OR I 11 An ounce of prevention is worth a pound of cure. -Benjamin Franklin ago 7 1 • i r r r r � � ' • � r r 17iOR A I Events such as 9/11, the 1994 Northridge The"Utilities Helping Utilities"concept is about equipment, materials, or services. Member earthquake,the 1996 Oregon flood,and more creating an opportunity to enhance water and utilities may request mutual-aid deployment of recently,Hurricane Katrina in 2005 identified a wastewater utility resiliency in response to disasters emergency support to restore critical operations need for water and wastewater utilities to create during the response and recovery phases. at the affected water/wastewater utility.Member intra-state mutual aid and assistance programs Emergencies transcend political jurisdictional agencies are never obligated to respond. because: boundaries,and multi-utility coordination is essential • Utilities require for protecting lives and property and for facilitating specialized the efficient use of available assets,both public and resources to - € private.sustain ORWARN is designed to provide quick and operations. professional assistance in any situation that - J_ • Government '- - overwhelms the capabilities ofa water or wastewater response agencies and other critical utility. No formal { infiastructurerely onwater supplies. declaration of ; emergency is • Utilities must provide their own support needed, and until state and federal resources are - - assistance can _ available. - take the form of • Large events impact regional areas,making A ,r - personnel , assistance from nearby utilities impractical. • Disasters impact utility employees and WARN Initiative Encouraged B y: their families,creating greater need for American Water Works Association National Association of Water Companies relief. Association of Metropolitan Water Agencies Oregon Department of Environmental Quality • Agreements must be established pre- Association of State Drinking Water Administrators Oregon Department of Human Services event for federal reimbursement. Association of State and Interstate Water Pollution Control Adminiatrators Oregon Office of Emergency Management • Promoting mutual aid/assistance meets National Rural Water Association U.S. Environmental Protection Agency FY06 Department of Homeland Security requirements National Association of Clean Water Agencies Water Environment Federation A 41 Mutual AI* d and Assistance Agr m nt March 00 OR I/A RIS Oregon Water/WastewaterAgenryBesoil se Network MUTUAL AID AND ASSISTANCE AGREEMENT FOR THE PROVISION OF EMERGENCY SERVICES RELATED TO WATER AND WASTEWATER UTILITIES This Mutual Aid and Assistance Agreement ("Agreement') establishes a Mutual Aid Assistance Program among signatories to this Agreement, and contains procedures and standards for a water and wastewater utility Mutual Aid and Assistance Program. AGREEMENT This Agreement is entered into by the Members and Associate Members, that have, by executing this Agreement, manifested their intent to enter into a Mutual Aid and Assistance Program. A list of all Members and Associate Members is attached as Exhibit A and shall be revised when a new Member or Associate Member is added to this Agreement. ARTICLE I. PURPOSE Recognizing that emergencies may require assistance in the form of personnel, equipment, and supplies from outside the area of impact, the Members and Associate Members hereby establish a Mutual Aid and Assistance Program. Through the Mutual Aid and Assistance Program, Members and Associate Members may, in their discretion, coordinate response activities and share resources during emergencies. This Agreement sets forth the procedures and standards for the administration of the Mutual Aid and Assistance Program. ARTICLE II. DEFINITIONS A. Associate Member Any municipal corporation, quasi-municipal corporation, service district, political subdivision or private utility company which has less than 1000 service connections that participates in the Mutual Aid and Assistance Program by executing this Agreement. B. Authorized Official Employees or officers of a Member or Associate Member that are authorized to: (1) request assistance; (2) offer assistance; (3) refuse to offer assistance or (4) withdraw assistance under this Agreement. Page 1 of 12 Final Version Mutual Aid and Assistance Agreement C. Confidential Information Any document shared with any signatory of this Agreement that is marked confidential, including but not limited to any map, report, notes, papers, opinion, or e-mail which relates to the system vulnerabilities of a Member or Associate Member. D. Emergency Any human caused or natural event or circumstance causing, or imminently threatening to cause, loss of life, injury to person or property, human suffering or financial loss, and includes, but is not limited to, fire, explosion, flood, severe weather, drought, earthquake, volcanic activity, spills or releases of oil or hazardous material as defined in ORS 466.605, contamination, utility or transportation emergencies, disease, blight, infestation, civil disturbance, riot, intentional acts, sabotage and war that is, or could reasonably be believed to be beyond the control of the services, personnel, equipment, and facilities of a Member or Associate Member. E. Member Any municipal corporation, quasi-municipal corporation, department or agency of a municipal corporation, department or agency of a quasi-municipal corporation, service district, political subdivision or private utility company that has a minimum of 1000 service connections that participates in the Mutual Aid and Assistance Program by executing this Agreement. If any municipal corporation, quasi-municipal corporation, department or agency of a municipal corporation, department or agency of a quasi-municipal corporation, service district, political subdivision or private utility company has separate water and wastewater operations, each one, if contracting separately, shall be deemed to be a Member for purposes of this Agreement if it has a minimum of 1000 service connections. F. National Incident Management System (NIMS) A national, standardized approach to incident management and response that sets uniform processes and procedures for emergency response operations. G. Non-Responding Member A Member or Associate Member that does not provide assistance during a Period of Assistance under the Mutual Aid and Assistance Program. H. Period of Assistance A period of time during which a Responding Member assists a Requesting Member. The period commences when personnel, equipment, or supplies depart from a Responding Member's facility and ends when the Responding Member no longer supplies personnel, equipment, supplies or services to the Requesting Member. I. Requesting Member A Member or Associate Member that requests assistance under the Mutual Aid and Assistance Program. Page 2 of 12 Final Version Mutual Aid and Assistance Agreement be directed to the Authorized Official of the participating Member or Associate Member. The Governing Board shall develop specific protocols for requesting aid in bylaws, as amended from time to time. B. Response to a Request for Assistance: After a Member or Associate Member receives a request for assistance, the Authorized Official evaluates whether resources are available to respond to the request for assistance. Following the evaluation, the Authorized Official shall inform, as soon as possible, the Requesting Member whether it has the resources to respond. If the Member or Associate Member is willing and able to provide assistance, in its sole discretion, the Member or Associate member shall inform the Requesting Member about the type of available resources and the approximate arrival time of such assistance. C. Discretion of Responding Member's Authorized Official: Execution of this Agreement does not create any duty to respond to a request for assistance. When a Member or Associate Member receives a request for assistance, the Authorized Official shall have sole and absolute discretion as to whether or not to respond to the request, and the availability of resources to be used in such response. All Authorized Official's decisions on the availability of resources shall be final unless overridden by the Member or Associate Member's governing body. ARTICLE V. RESPONDING MEMBER PERSONNEL A. National Incident Management System: When providing assistance under this Agreement, the Requesting Member and Responding Member will use the organizational principles set forth in the National Incident Management System. B. Control: Responding Member personnel shall remain under the direction and control of the Responding Member. The Requesting Member's Authorized Official shall coordinate response activities with the designated supervisor(s) of the Responding Member(s). Whenever practical, Responding Member personnel must be self sufficient for up to 72 hours. C. Food and Shelter: When possible, the Requesting Member shall supply reasonable food and shelter for Responding Member personnel. If the Requesting Member does not provide food and shelter for responding personnel, the Responding Member's designated supervisor is authorized to secure the resources reasonably necessary to meet the needs of its personnel. Except as provided for below, the cost for such resources must not exceed the State per diem rates for that area. To the extent Food and Shelter costs exceed the State per diem rates for the area, Responding Member must demonstrate that the additional costs were reasonable and necessary under the circumstances. Page 4 of 12 Final Version Mutual Aid and Assistance Agreement Unless otherwise agreed to in writing, the Requesting Member remains responsible for reimbursing the Responding Member for all reasonable and necessary costs associated with providing food and shelter, if such resources are not provided. D. Communication: The Requesting Member shall provide Responding Member personnel with radio equipment as available, or radio frequency information to program existing radio equipment, in order to facilitate communications with local responders and utility personnel. E. Licenses and Permits: To the extent permitted by law, Responding Member personnel who hold valid licenses, certificates, or permits evidencing professional, mechanical, or other skills shall be allowed to carry out activities and tasks relevant and related to their respective credentials during the specified Period of Assistance. F. Right to Withdraw: The Responding Member's Authorized Official retains the right to withdraw some or all of its resources at any for any reason in the Responding Member's sole and absolute discretion. Responding Member(s) shall have no liability from a decision to withdraw. Notice of intention to withdraw must be communicated to the Requesting Member's Authorized Official as soon as is practicable under the circumstances. ARTICLE VI COST REIMBURSEMENT A. Cost Reimbursement: Unless otherwise mutually agreed by the Requesting Member and the Responding Member, the Requesting Member shall reimburse the Responding Member for each of the following categories of costs incurred while providing aid and assistance during the Period of Assistance. B. Personnel Costs: Responding Member personnel costs shall be the amount to be paid for work performed by the Responding Member's personnel during a Period of Assistance under the terms and conditions of the Responding Member's individual employment contracts with such personnel. The Responding Member's designated supervisor(s) shall keep accurate records of work performed by personnel during the Period of Assistance. Requesting Member reimbursement to the Responding Member shall include all personnel costs incurred by the Responding Member, including, but not limited to, salaries or hourly wages, costs for fringe benefits, and indirect costs. C. Costs of Equipment: The Requesting Member shall reimburse the Responding Member for the use of equipment during a Period of Assistance, Page 5 of 12 Final Version Mutual Aid and Assistance Agreement J. Responding Member A Member or Associate Member that responds to a request for assistance under the Mutual Aid and Assistance Program. ARTICLE III. ADMINISTRATION A. A Governing Board shall be established to organize and maintain the Mutual Aid and Assistance Program. The Governing Board shall be elected by ballot by a majority vote of the Members of this Agreement. Each Member shall have one vote. Only Members shall be eligible to serve on the Governing Board. B. The Governing Board shall consist of 5 Members. The Governing Board will elect the following officers: a Chair; a Vice Chair; and a Secretary. The term of all board members shall be 2 years, except that in the first year the Agreement is in effect, the term of the Vice Chair and other board members shall be 1 year. A quorum shall be a majority of the members of the Governing Board. C. The Governing Board shall meet at least twice each year, at a meeting place designated by the Governing Board. The Governing Board may make, establish and alter rules and regulations for its procedure consistent with generally recognized principles of parliamentary procedure. The Governing Board shall have the power to carry out the purposes of this Agreement, including but not limited to the power to: adopt bylaws; develop specific procedures and protocol for requesting assistance; develop specific procedures and protocol for responding to a request for assistance; organize meetings; operate a website; disseminate information; create informational brochures; create subcommittees; maintain membership lists; maintain equipment and supply inventory lists; and deal with membership issues. ARTICLE IV. REQUESTS FOR ASSISTANCE A. Member and Associate Member Responsibility: Members and Associate Members shall designate Authorized Official(s); provide contact information including emergency 24-hour contact information; and maintain resource information made available by the utility for mutual aid and assistance response. Such information shall be updated annually or when changes occur and provided to the Governing Board. In the event of an Emergency, a Member's or Associate Member's Authorized Official may request mutual aid and assistance from a participating Member or Associate Member. Requests for assistance can be made orally or in writing. When made orally, the request for personnel, equipment, and supplies shall be provided in writing as soon as practicable. Requests for assistance shall Page 3 of 12 Final Version Mutual Aid and Assistance Agreement including, but not limited to, reasonable rental rates, all fuel, lubrication, maintenance, transportation, and loading/unloading of loaned equipment. All equipment shall be returned to the Responding Member as soon as is practicable and reasonable under the circumstances. Generally, rates for equipment use will be based on the Federal Emergency Management Agency's (FEMA) Schedule of Equipment Rates. If a Responding Member uses rates different from those in the FEMA Schedule of Equipment Rates, the Responding Member must provide such rates orally or in writing to the Requesting Member prior to supplying equipment. Mutual agreement on which rates are used must be reached in writing prior to dispatch of the equipment. Reimbursement for equipment not referenced on the FEMA Schedule of Equipment Rates must be developed based on actual recovery of costs. In the event loaned equipment is damaged while being dispatched to Requesting Member, or while used during a Period of Assistance, and such damage is not due to negligence or intentional acts of the Responding Member, Requesting Member shall reimburse Responding Member for the reasonable cost of repairing such damaged equipment. If the damaged equipment cannot be repaired, then Requesting Member shall reimburse Responding Member for the reasonable cost of replacing such damaged equipment with equipment that is of equivalent age, condition and of at least equal capability. If Responding Member must lease a piece of equipment while its equipment is being repaired, Requesting Member shall reimburse Responding Member for such rental costs. D. Costs of Materials and Supplies: The Requesting Member must reimburse the Responding Member in kind or at actual replacement cost, plus handling charges, for Responding Member's use of expendable or non- returnable supplies during the Period of Assistance. The Responding Member must not charge direct fees or rental charges to the Requesting Member for supplies and reusable items that are returned to the Responding Member in a clean, damage-free condition. Reusable supplies that are returned to the Responding Member with damage shall be treated as expendable supplies or non-returnable for purposes of cost reimbursement. E. Payment Period: The Responding Member must provide an itemized bill to the Requesting Member for all expenses incurred by the Responding Member in providing assistance under this Agreement, not later than ninety (90) days following the end of the Period of Assistance. The Responding Member may request additional periods of time within which to submit the itemized bill, and Requesting Member shall not unreasonably withhold consent to such request. The Requesting Member shall pay the bill in full on or before the forty-fifth (45th) day following the billing date. The Requesting Member may request additional periods of time within which to pay the itemized bill, and Responding Member shall not unreasonably withhold consent to such request, provided, however, that all payment shall occur not later than one-year after the date a final itemized bill is submitted to the Requesting Member. Page 6 of 12 Final Version Mutual Aid and Assistance Agreement F. Records: Each Responding Member and their duly authorized representatives shall have access to a Requesting Member's books, documents, notes, reports, papers and records which are directly pertinent to this Agreement for the purposes of reviewing the accuracy of a cost bill or making a financial, maintenance or regulatory audit. Each Requesting Member and their duly authorized representatives shall have access to a Responding Member's books, documents, notes, reports, papers and records which are directly pertinent to this Agreement for the purposes of reviewing the accuracy of a cost bill or making a financial, maintenance or regulatory audit. Such records shall be maintained for at least three (3) years or longer where required by law. ARTICLE VII. DISPUTES If a dispute arises between Members and/or Associate Members under this Agreement, the disputing Members and/or Associate Members shall first attempt to resolve the dispute by negotiation, followed by mediation and finally by filing an action in a court of competent jurisdiction. Step One: The disputing Members and/or Associate Members shall authorize a person ("Authorized Official") to negotiate on their behalf. If the dispute is resolved at this step, there shall be a written determination of such resolution, signed the disputing Members or Associate Members' Authorized Official and ratified by each governing body, if required. Step One will be completed when notice is delivered in writing to all disputing Members and/or Associate Members. Step Two: If the dispute cannot be resolved within fifteen (15) business days at Step One, the disputing Members and/or Associate Members shall submit the matter to mediation. The disputing Members and/or Associate Members shall attempt to agree on a mediator. If they cannot agree, the disputing Members and/or Associate Members shall request a list of five (5) mediators from an entity or firm providing mediation services. The disputing Members and/or Associate Members will mutually agree on a mediator from the list provided. If the disputing Members and/or Associate Members cannot mutually agree upon a mediator, the disputing Members and/or Associate Members shall alternatively strike one name from the list until one mediator remains. The remaining mediator shall be the mediator for the dispute. Any Page 7 of 12 Final Version Mutual Aid and Assistance Agreement common costs of mediation shall be borne equally by the disputing Members and/or Associate Members who shall each bear their own costs and fees. If the issue is resolved at this step, a written determination of such resolution shall be signed by each Authorized Official and ratified by their respective governing bodies, if necessary. Step Three: If the disputing Members and/or Associate Members are unsuccessful at Steps One and Two, the dispute shall be resolved by a State of Oregon court of competent jurisdiction. Venue shall be in the jurisdiction of the Responding Member, subject to statutory limitations. ARTICLE VIII. DUTY OF REQUESTING MEMBERS AND ASSOCIATE MEMBERS TO INDEMNIFY Subject to the Oregon Constitution, the limits imposed under the Oregon Tort Claims Act, and laws of the state of Oregon applicable to local governments, the Requesting Member shall assume the defense of, fully indemnify, save and hold harmless, the Responding Member, its officers, agents and employees, from all claims, suits, actions, loss, damage, injury, and liability of every kind, nature, and description, directly or indirectly arising from Responding Member's work during a specified Period of Assistance, except for claims arising out of the willful misconduct or gross negligence of Responding Member, its officers, agents and employees. ARTICLE IX. SIGNATORY INDEMNIFICATION To the extent not addressed in Article VIII, and subject to the Oregon Constitution and limits imposed under the Oregon Tort Claims Act, a Requesting Member shall have a duty to defend, indemnify, save and hold harmless all Non- Responding Members, their officers, agents and employees from any liability, claim, demand, action, or proceeding of whatever kind or nature arising out of a Period of Assistance. ARTICLE X. WORKER'S COMPENSATION CLAIMS Each Responding Member shall provide worker's compensation benefits and administering worker's compensation for its own personnel. Page 8 of 12 Final Version Mutual Aid and Assistance Agreement ARTICLE XI. NOTICE A Member or Associate Member that becomes aware of a claim or suit that in any way, directly or indirectly, contingently or otherwise, affects or might affect other Members or Associate Members of this Agreement shall provide prompt and timely notice to the Members and Associate Members that may be affected by the suit or claim. Each Member and Associate Member reserves the right to participate in the defense of such claims or suits as necessary to protect its own interests. ARTICLE XII INSURANCE Members and Associate Members of this Agreement shall maintain an appropriate insurance policy or maintain a self-insurance program that covers activities that it may undertake by virtue of membership in the Mutual Aid and Assistance Program. ARTICLE XIII CONFIDENTIAL INFORMATION To the extent provided by law, any Member or Associate Member shall maintain in the strictest confidence and shall take all reasonable steps necessary to prevent the disclosure of any Confidential Information disclosed under this Agreement. If any Member, Associate Member, third party or other entity requests or demands, by subpoena or otherwise, that a Member or Associate Member disclose any Confidential Information disclosed under this Agreement, the Member or Associate Member shall immediately notify the owner of the Confidential Information and shall take all reasonable steps necessary to prevent the disclosure of any Confidential Information by asserting all applicable rights and privileges with respect to such information and shall cooperate fully in any judicial or administrative proceeding relating thereto. ARTICLE XIV. EFFECTIVE DATE AND PROCESS TO ADD NEW MEMBERS This Agreement shall be effective after two (2) or more entities' authorized representatives execute the Agreement. Membership shall become effective upon executing this Agreement. A list of all Members and Associate Members shall be maintained by the Governing board and is available upon request from a Governing Board. Page 9 of 12 Final Version Mutual Aid and Assistance Agreement ARTICLE XV. TERM Unless restricted by Oregon statutes, municipal Charters and corporate Charters, the term of this Agreement shall be for 5 years and shall be automatically renewed for additional terms of five years each, unless terminated by Majority vote of the Governing Board. Termination of this Agreement shall in no way affect a Requesting Member's duty to reimburse a Responding Member for cost incurred during a Period of Assistance, or for any other costs voluntarily incurred during the withdrawing Member's or Associate Member's membership, which duty shall survive such termination. ARTICLE XVI. WITHDRAWAL A Member or Associate Member may withdraw from this Agreement by providing written notice of its intent to withdraw to the Governing Board. Withdrawal takes effect 60 days after the Governing Board receives notice. Withdrawal from this Agreement shall in no way affect a Requesting Member's duty to reimburse a Responding Member for cost incurred during a Period of Assistance, which duty shall survive such withdrawal. ARTICLE XVII. MODIFICATION No provision of this Agreement may be modified, altered, or rescinded by individual Members or Associate Members to the Agreement. Modifications (except Modifications to Article III and Article XVII) require a majority vote of the Members of the Governing Board (3) or a majority vote of the Members of this Agreement. Modifications to Article III and Article XVII require a majority vote of the Members to this Agreement. Approved modifications take effect 60 days after the date upon which notice is sent to the Members and Associate Members, except that the addition of a new Member becomes effective upon execution of this Agreement. ARTICLE XVIII. NO THIRD PARTY BENEFICIARIES The signatories to this Agreement are the only parties to this Agreement and are the only parties entitled to enforce its terms. Nothing in this Agreement gives, is intended to give, or shall be construed to give or provide, any benefit or right, Page 10 of 12 Final Version Mutual Aid and Assistance Agreement whether directly, indirectly or otherwise, to third persons unless such third persons are individually identified by name herein and expressly described as intended beneficiaries of the terms of this Agreement. ARTICLE XIX. WAIVER No provision of this Agreement may be waived except in writing by the Member or Associate Member waiving compliance. No waiver of any provision of this Agreement shall constitute waiver of any other provision, whether similar or not, nor shall any one waiver constitute a continuing waiver. Failure to enforce any provision of this Agreement shall not operate as a waiver of such provision or of any other provision. ARTICLE XX. SEVERABILITY The parties agree that if any term or provision of this Agreement is declared by a court of competent jurisdiction to be illegal or in conflict with any law, the validity of the remaining terms and provisions shall not be affected, and the rights and obligations of the parties shall be construed and enforced as if the Agreement did not contain the particular term or provision held to be invalid. ARTICLE XXI. EXECUTION IN COUNTERPARTS This Agreement may be executed in counterparts, each of which shall be an original, and all of which shall constitute but one and the same instrument. Page 11 of 12 Final Version Mutual Aid and Assistance Agreement IN WITNESS WHEREOF, an authorized representative of a Member or Associate Member has duly executed this Mutual Aid and Assistance Agreement as of the date referenced below. An ORWARN representative will acknowledge receipt of the Mutual Aid and Assistance Agreement and return a copy to the Member or Associate Member. MEMBER OR ASSOCIATE MEMBER APPROVED AS TO FORM: By: Date: Title: Print Name ORWARN ACKNOWLEDGMENT By: Date: Title: Print Name Page 12 of 12 Final Version Mutual Aid and Assistance Agreement City of Tigard 41 13125 SW Hall Blvd. - Tigard, OR 97223 Phone: 503-639-4171 FAX T13,NSM=AL Date June 29, 2007 Number of pages including cover sheet 4 To,,,/: }( The City of King City(Fax No.503-639-3771) j(The City of Durham(Fax No. 503-598-8595) From: Greer Gaston Co: Qi T of Tigard Fax #: 503.684.8840 Ph #: 503.718.2592 SUBJECT: h tergovenmxntal Water Board Meering Notice and Agenda MESSAGE.- Please ESSAGE:Please post the attached notice and agenda for the upcoming meeting of the Intergovernmental Water Board Thank you. 1:1ENG%FAX.DOT Intergovernmental Water Board Serving Tigard, King City, Durham and Unincorporated Area MEETING NOTICE Wednesday, July 11 , 2007 5:30 p.m. City of Tigard Town Hall 13125 SW Hall Blvd. Tigard, Oregon Questions? Contac the City of Tigard at 503.639.4171 Intergovernmental Water Board Meeting Serving Tigard, King City, Durham and the Unincorporated Area AGENDA Wednesday, July 11, 2007 City of Tigard Town Hall 5:30 p.m. 13125 SW Hall Blvd. Tigard, OR 97223 1. Call to Order, Roll Call and Introductions Call the meeting to order, staff to take roll call 2. Approval of Minutes -June 13, 2007 Motion from the Board to approve the minutes 3. Public Comments Call for comments from the public 4. Autumn Park Homeowner's Association - Credit for Leak Request-Amanda Bewersdorff 5. Report on the Adoption of Intergovernmental Agreement Amendments - IWB Commissioners 6. Consider a Water Building Lease with the City of Tigard-Dennis Koellermeier Motion to approve the water building lease with the City of Tigard 7. Consider a Recommendation to the Tigard City Council Regarding an Amendment to the Joint Funding Agreement for the Tualatin Basin Water Supply Project(Hagg Lake Dam Raise) - Dennis Koellermeier Motion recommending the City of Tigard approve the third amendment to the Joint Funding Agreement for the IWRM Water Supply Feasibility Study 8. Consider a Recommendation to the Tigard City Council Regarding Participation in an Oregon Water/Wastewater Agency Response Network (ORWARN) Mutual Aid and Assistance Agreement- Dennis Koellermeier Motion recommending the City of Tigard approve the Oregon Water/Wastewater Agency Response Network (ORWARN) Mutual Aid and Assistance Agreement 9. Water Supply Options - Dennis Koellermeier 10. Informational Items -Dennis Koellermeier 11. Non-Agenda Items Call for non-agenda items from Board. 12. Next Meetings - ■ July 17, 2007, 5:30 p.m. - Dinner with Tigard and Lake Oswego City Councilors and Staff 6:30 p.m. -Joint Meeting with the Tigard and Lake Oswego City Councils City of Tigard Town Hall, 13125 SW Hall Blvd., Tigard Oregon Continued • August 8, 2007, 5:30 pm Location to be announced 13. Adjournment 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. Questions? Contact the City of Tigard at 503.639.4171 hp officejet 4200 series 4215 Personal Printer/Fax/Copier/Scanner Log for City of Tigard PW 5036848840 6/30/2007 12 : 05RM Last Transaction Date Time Type Identification Duration Pages Result 06/30 12: 04a Fax Sent 5036393771 1 : 25 4 OK h LaserJet 3380 � � � � �J [hp3p Tigard PW Annex I ; „ „ e „ t 5037182401 Jul-2-2007 12:03 Fax Activity Log Job Date Time Type Identification Duration Pages Result 706 6/19/2007 13:05:31 Receive 5034396073 1:14 3 OK 707 6/20/2007 05:33:05 Receive 0:42 1 OK 708 6/20/2007 13:46:06 Receive 0:39 0 No Fax Detected 709 6/20/2007 14:07:58 Receive 0:39 0 No Fax Detected 710 6/20/2007 14:33:53 Receive 2066249305 0:20 1 OK 711 6/20/2007 15:04:30 Receive 9094768553 0:55 1 OK 712 6/20/2007 15:06:51 Send 12066249305 0:36 1 OK 713 6/21/2007 13:33:31 Receive 503 692 2024 0:22 2 OK 714 6/22/2007 06:41:19 Receive abcs 1:11 1 OK 715 6/24/2007 07:01:26 Receive 2:57 1 OK 716 6/25/2007 07:09:01 Receive 503 248 6353 1:17 2 OK 717 6/25/2007 08:36:48 Receive 0:38 0 No Fax Detected 718 6/25/2007 13:42:04 Receive 1:11 2 Comm Error 244 719 6/25/2007 13:44:17 Receive 1:04 0 No Fax Detected 720 6/25/2007 13:46:15 Receive 0:00 0 Power Fail 721 6/25/2007 14:11:57 Send 5036231682 0:00 0 Busy 722 6/25/2007 14:13:23 Send 15036231682 1:48 5 OK 723 6/25/2007 14:15:18 Send 5036231682 0:00 0 Busy 724 6/25/2007 14:21:03 Send 5036231682 0:00 0 Busy 725 6/25/2007 14:26:48 Send 5036231682 0:11 0 Stop 726 6/25/2007 14:27:41 Send 15036231682 1:48 5 OK 727 6/26/2007 06:56:46 Receive 503 692 2024 0:23 2 OK 728 6/26/2007 13:00:34 Receive 503 842 8983 1:09 2 OK 729 6/26/2007 15:49:29 Receive 0:34 1 OK 730 6/27/2007 15:17:04 Receive 5033613047 1:07 2 OK 731 6/28/2007 08:58:33 Receive 0:38 0 No Fax Detected 732 6/28/2007 15:59:23 Send 5036396795 1:12 3 OK 733 6/29/2007 09:40:15 Receive 2066249305 0:22 1 OK 734 6/29/2007 14:49:36 Receive 1:17 4 OK 735 7/ 2/2007 08:38:51 Send 5035478001 0:35 2 OK 736 7/ 2/2007 08:42:36 Send 5033563118 0:34 1 OK 737 7/ 2/2007 09:14:39 Send 15037389433 0:00 0 Busy 738 7/ 2/2007 09:16:29 Send 15037389433 0:32 0 Stop 739 7/ 2/2007 09:18:44 Send 915037387692 0:00 0 Busy 740 7/ 2/2007 09:20:08 Send 915037387692 0:00 0 Busy 741 7/ 2/2007 09:25:31 Send 915037387692 0:00 0 Busy 742 7/ 2/2007 09:30:55 Send 915037387692 0:00 0 Busy 743 7/ 2/2007 09:36:18 Send 915037387692 0:00 0 Busy 744 7/ 2/2007 09:41:41 Send 915037387692 0:00 0 Busy 745 7/ 2/2007 11:42:23 Send 5035988595 2:56 4 OK