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11/12/2009 - Packet Completeness Review for Boards, Commissions and Committee Records CITY OF TIGARD Intergovernmental Water Board Naive of Board, Commission or Committee Date of Meeting 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 1 Signature IV�Z,Ii Date Intergovernmental Water Board — Agenda SERVING TIGARD,KING CITY,DURHAM AND THE UNINCORPORATED AREA MEETING DATE: Thursday, November 12, 2009 5:30 p.m. MEETING LOCATION: Tigard Public Works Building 8777 SW Burnham Street Tigard, OR 97223 1. Call to Order, Roll Call and Introductions Call the meeting to order, staff to conduct roll call. 2. Approval of Minutes— September 9,2009 Action: Motion to approve the September 9, 2009 minutes. 3. Public Comments Call for comments from the public. 4. Water Supply Update -John Goodrich 5. Presentation of Draft 1993 Intergovernmental Agreements between Durham and the City of Tigard, King City and the City of Tigard, and the Tigard Water District and the City of Tigard - Commissioner Scheiderich Action: No action required. 6. Informational Items • Update from Commissioner Buehner on Lake Oswego/City of Tigard Oversight Committee activities. • Term Expiration for Commissioners Carroll and Scheiderich • Burnham Street Update 7. Non-Agenda Items Call for non-agenda items from the Board. 8. Future Agenda Items Schedule Date Item To Be Announced Consider an Anchor Easement with PGE Company on the Public Works Building Property To Be Announced Additional Tenancy in Common Agreements for Properties within the Tigard Water Service Area. 9. Next Meeting: ■December 9, 2009 at 5:30 p.m. Tigard Public Works Building, 8777 SW Burnham Street, Tigard, Oregon INTERGOVERNMENTAL WATER BOARD AGENDA— NOVEMBER 12, 2009 City of Tigard 13125 SW Hall Blvd.,Tigard, OR 97223 503-639-4171 www.tigard-or.gov I Page 1 of2 11. Adjournment Action: Motion for adjournment. Executive Session The Intergovernmental Water Board may go into Executive Session. If an Executive Session is called to order, the appropriate ORS citation will be announced identifying the applicable statute. All discussions are confidential and those present may disclose nothing from the Session. Representatives of the news media are allowed to attend Executive Sessions, as provided by ORS 192.660(4), but must not disclose any information discussed. No Executive Session may be held for the purpose of taking any final action or making any final decision. Executive Sessions are closed to the public. INTERGOVERNMENTAL WATER BOARD AGENDA—NOVEMBER 12, 2009 Cityof Tigard 1 13125 SW Hall Blvd.,Tigard,OR 97223 1 503-639-4171 1 www.dgard-or.gov I Page 2 oft Intergovernmental Water Board (IWB) Meeting Minutes November 12, 2009 Tigard Public Works Building 8777 SW Burnham Street Tigard, OR 97223 Members Present: Gretchen Buehner Representing the City of Tigard Patrick Carroll Representing the City of Durham Ken Henschel Representing the Tigard Water District Dick Winn Representing the City of King City Bill Scheiderich Member At-Large Members Absent: None Staff Present: Public Works Director Dennis Koellermeier Utility Division Manager John Goodrich IWB Recorder Kathy Mollusky 1. Call to Order, Roll Call and Introductions Commissioner Carroll called the meeting to order at 5:32 p.m. 2. Approval of Minutes — September 9, 2009 Commissioner Buehner motioned to approve the September 9, 2009 minutes; Commissioner Winn seconded the motion. The minutes were approved by unanimous vote of the Commissioners present, with Commissioners Buehner, Carroll, Henschel, Scheiderich and Winn voting yes. Commissioner Henschel would like the November 12, 2009, minutes to reflect he changed his vote to yes on item 6 - Discussion of Possible Methodologies to Calculate Ownership Interest from the September 9, 2009 meeting. 3. Public Comments: None 4. Water Supply Update Mr. Goodrich reported we are currently running 3.9 to 4.1 million gallons per day. We have not yet started injection in our ASR program; we are waiting to see what is happening with Portland Water Bureau as far as turbidity. This week we have been showing 0.55 to 0.6 turbidity, which is below our curb so we may start injection as soon as next week. The rain has filled Bull Mountain Reservoir 18 feet, which helps reduce turbidity. We do not want to inject water into the aquifer with high turbidity because it could clog the aquifer. Intergovernmental Water Board Minutes November 12,2009 1 5. Discussion of Draft 1993 Intergovernmental Agreements between Durham and the City of Tigard, King City and the City of Tigard, and the Tigard Water District and the City of Tigard —Commissioner Scheiderich Note: The Board skipped to Item 6, finished the rest of the items, then returned to Item 5. Page 1, Opening Paragraph - The opening paragraph intent is to state that what exists is a wholesale water provider agreement between City of Tigard (COT) and everyone else. This is not purely a wholesale water provider contract, especially with the ownership of assets, which is not typically in a wholesale water agreement. There are carryovers from the past agreement whereby share of ownership was granted in exchange for everyone joining. Page 1, Recitals - Recitals show what the intent of the agreement were if any legal disagreement were to occur. It is a bit of prior history that includes the incentive, that everyone will have a share of the assets. This agreement is unique. It differs from state law regarding wholesale water supply agreements. It is important to show why we made the agreement the way we did. • This agreement gives all parties a shared interest in all assets no matter where the assets are located. If it were a pure wholesale provider agreement, there would not be any ownership of assets across political boundaries. Any political act that takes territory out of one boundary and puts it in a different boundary just divides the assets in the ground. This agreement describes the system assets that would have to stay with COT if another city withdrew. At dissolution, the parties could go to the division of assets. Without paying anything, the withdrawing party would get the local distribution lines, not transmission lines. For instance, if someone withdrew and did not assign a successor, Tigard would identify the 72" line as a major water supply line and say it belongs to COT because it is necessary to the operations. A 6" line running down a street in a particular City would not be a COT line, COT would have no use for them. • This agreement values other assets worth as zero. This is unique to this agreement. The standard for valuing personal property (everything but real estate) is usually replacement cost less depreciation. Modern agreements typically use the Joint Water Commission standard when valuing pipeline which is the cost to replace, age, useful life, and current worth. All parties pledge all assets, wherever they are located, to use for the common water system. • COT shall determine all rates and charges. COT is adopting the capital improvement plan and issuing revenue bonds. If the agreement said we should have consensus or use a veto approach, this would cause havoc on the issuing department. Commissioner Carroll states the IWB is more aggressive in raising rates than COT, so this is a non- issue. IWB is an advisory board that influences COT. The Council historically passed the IWB recommendations. If a city thought COT was getting too expensive, they could withdrawal. • Commissioner Henschel inquired if a city could enact System Development Charges (SDCs) outside their jurisdiction. Commissioner Scheiderich states the contract recognizes that the water service provider, COT, runs the capital improvement plan and spends the money. The IGA delegates the right to collect SDCs to COT. Everyone Intergovernmental Water Board Minutes November 12,2009 2 pays the same charges, called meter connection fees. COT collects the fee when someone connects to the water service. Commissioner Scheiderich will make statement stronger and clearer that the parties are delegating this responsibility to COT. • Each city has appointed someone to the IWB to make decisions on their behalf. The agreement delegates all revenue bond financing decisions to Tigard. The federal law says if COT becomes aware of something that happens to affect their ability to pay back bonds, they must disclose it. It would be problematic to go a different avenue, like having revenue bonds issued by individual parties. They would be issued privately based on each city's credit worthiness. Each city would have to gather signatures and refer to a vote. That is at least a 90-day process. COT cannot pledge assets, only cash. Commissioner Scheiderich will cross-reference that COT can pledge all revenue except the 1% each city receives. • The served party shall consider any request regarding condemnation by COT. Cities will declare we need the property, but COT must supply attorneys, appraisers, etc. Host government cannot unreasonably withhold consent, which means a judge will decide if the two parties cannot agree. Cities do not want to condemn property. Page 2, Item 2, Term — Keep the same five-year notice to terminate agreement. Tigard cannot initiate a withdrawal or termination since they are the provider. The agreement should say Tigard and all the other parties. • Five years make sense now, but in the future if there is debt and someone leaves before the debt is retired, there may be a 15-year hole of debt without the anticipated revenue. In termination, we could say to follow the model of state law regarding assets and liabilities. When a city withdrawals, the debt must be paid off, either annually or in a lump sum. That becomes a debt against assets, a line item on a calculation sheet. COT will have to run this by the Bond Council to see if they are happy with this approach or if they want to have some guarantee of cash flow. Commissioner Henschel inquired if COT would raise rates to cover the bond if this were not available. The interest rate would be raised if it were not secure. Another problem with this approach would be fairness. If the system was built big enough for everyone and someone terminates, the rest of the cities would have to pay for something bigger than they need. • If something goes wrong in this agreement, the cities have 30-days notice to fix what is wrong or COT may terminate the agreement. Upon request, COT agrees in good faith to negotiate a replacement wholesale water provider. Basically, the cities can be a partner or a client of Tigard. Page 2, Item 3, Intergovernmental Water Board —The IWB shall decide the process by which it seeks a member-at-large. The member-at-large representative shall reside in the district area. • A member representing a city shall hold a current elected office of that city and must reside in the service area, rather than be an appointed official. Alternate members have the same qualifications as regular members. • After three unexcused absences, the IWB, by majority vote, may ask the Public Works Director or the Chairman to call the city requesting another member. They will inform Intergovernmental Water Board Minutes November 12,2009 3 the city that decisions are being made and they are not being represented. An absence is considered unexcused if the member does not notify the Public Works Director or his assistant. • According to the Tigard Water District (TWD), their Board cannot delegate the authority to vote. Both the TWD and Mr. Koellermeier will have their respective legal council look into whether TWD can vote without going back to their Board. • Everyone agrees they require an agenda, minutes, and notification needs to get out to the press 72-hours in advance. • IWB members are elected every year. Members may elect other officers if they so desire. • All matters requiring a vote shall be enacted by an affirmative vote of three members present and voting. Affirmative votes count, abstains do not count; however, they still count as a quorum. No vote shall be taken on a matter requiring a vote without a quorum present. • IWB meetings shall be scheduled monthly. COT staff supports IWB meetings; COT staff does not support TWD meetings. • Annually, COT will hold a public meeting during one of the IWB workshop meetings, inviting Councils from each city to attend. • Uniform rates - the only difference of rates allowed is different levels of use for residential, commercial or high elevation surcharges. An advisory vote is required on the following: o proposed annual budget o policy and rules for curtailing consumption on billing methods o customer account management including meter reading contracts o unlisted capital improvement projects o COT's issuance of municipal revenue bonds for water system and o any and all rules and regulations including water consumption for use of water • Mandatory votes are binding on Tigard by the parties, member-at-large vote is not binding. Mandatory votes are required on the following: o expanding service area service outside of existing service area and service by a wholesale contract o municipal revenue bonds for new service area o contractor partnership with new water provider except a mutual aid or emergency situation o valuation of a separate party's ownership share o sale or purchase of real property and proposal to mortgage part of the system o assignment sale or conveyance that will transfer another party's rights to any other person Intergovernmental Water Board Minutes November 12,2009 4 • The IWB will finish going through the entire IGA, then will submit the IGA to their respective legal councils. Commissioner Scheiderich will fix things discussed tonight and send out the changes made within a week. February is the target date for each respective city's lawyer's comments to be complete. The IWB will have a joint meeting with Tigard City Council to address any questions or concerns. Tigard's workshop meetings are the 3rd Tuesday of the month. The IWB stopped the discussion and will continue next month starting with (7) Ownership. 6. Informational Items a. Update from Commissioner Buehner on Lake Oswego/City of Tigard Oversight Committee activities. • Commissioner Buehner reported the Lake Oswego/City of Tigard Oversight Committee found someone they want to be the contract program manager, but it formally has to go to the Lake Oswego Council. The Council is going through a very detailed analysis of the proposals. The proposals came in with different numbers and assumptions, but all should be onboard within a month. The award of the contract needs to go to the Lake Oswego Council, which is scheduled this month, COT just pays the bill. • The contractor, Brown and Caldwell, should be in place to get started around December 1. The necessary staff has been hired and they have finished the discovery process of the case. It is appropriate for someone to file a summary judgment motion. Those will be happening through the end of December. The Administrative Law Judge will rule on those motions by the end of January. Mr. Koellermeier thinks the hearing date will be scheduled in early March. b. Term Expiration for Commissioners Carroll and Scheiderich • Commissioner Scheiderich will not run again for the member-at-large position. Commissioner Carroll asked Commissioner Scheiderich if he would be willing to moderate the discussion regarding the IGA until it is completed. The IWB will take applications for a new member-at-large, but it is only to the IWB's benefit to keep Commissioner Scheiderich until we get all the details worked out and complete the final draft. Commissioner Scheiderich agreed to remain with a three-month maximum extension. Commissioner Carroll feels it will be completed by then. • Commissioner Carroll is resigning from Durham City Council the first part of the year. His intent is to have the Council reappoint him until the agreement is signed. Then he will resign and Durham City Council will appoint a replacement for him. Commissioner Carroll will request his proposed replacement attend IWB meetings for few months prior to his resignation for a smoother transition. • Mr. Koellermeier inquired if the Board would like us to start advertising for the member- at-large position while keeping Commissioner Scheiderich on as a consultant. The Board wants COT to start advertising for the position using the COT volunteer process, the website, putting notices in each jurisdictions newspapers, the Tigard Times and the Oregonian. Intergovernmental Water Board Minutes November 12,2009 5 c. Burnham Street Update Mr. Koellermeier informed the Board that the COT has finally started the major construction project, which will rebuild Burnham Street end to end. It will significantly widen and make the street pedestrian friendly. This is part of the catalyst project for the downtown project and is anticipated to be an18-month construction project. The orange fence is a visual boundary, the contractor has one side and the property owner has the other. 7. Non-Agenda Items: Tualatin Valley Water District (TVWD) and COT Water Service Boundaries • COT has been in negotiations with TVWD about adjusting boundaries. Mr. Goodrich stated that in 1973, TWD and Metzger had boundary changes occur because some customers wanted higher water pressure, wanted to be on Portland water, or did not want to be on Clackamas water. Through an agreement, they changed isolated valves and adjusted customer billing, but did not change boundaries due to a revenue bond they were collecting at that time. Since then, the bonds have been paid. • Tigard approached TVWD regarding the housekeeping that should take place regarding property annexed in the COT. The area is by Hunziker Road down 72nd to Sequoia Parkway. COT serves this area that is currently in TVWD boundary area. • On November 17, Mr. Koellermeier is meeting with City Council to discuss if they want to move forward. If Council does, there will be a public notice. Unfortunately, the only way to complete this is to do a formal withdrawal of territory. There will be a public hearing on December 8 and hopefully the City Council will hear comments and will adopt the ordinance. COT bills these customers already. • There is a little area, called Rolling Hills, which will remain in TVWD territory. COT would have to do more than we are currently doing to serve this area because TVWD supplies water to this area and they are not willing to give up this portion. TVWD is sending a letter to the customers in the Rolling Hills area informing them they may hear of a boundary change in their area, but it does not affect them. • COT is legally withdrawing territory from TVWD putting it into COT. Approximately 435 customers are being withdrawn. Nothing is changing for the customers. • COT does not serve anything past Hwy 1-5. Mr. Koellermeier originally suggested Highway 217 as a physical boundary, however, TVWD does not want to go there cooperatively since we would be taking revenue away and we have no reason to start a non-cooperative withdrawal. This area is within the COT boundary, TVWD serves the northern 1/3 of Tigard. There is a legal precedence (House Bill 122)for a hostile takeover. If customers are in the city boundaries and the city can supply water, they can do a hostile takeover and serve the area. COT has not looked at this area; we would have to do a cost/benefit analysis. We have a reservoir on Baylor that could serve the area. Part of a hostile withdrawal process is taking over assets so Titan reservoir, etc. would go to COT. COT is not interested in pursuing a hostile takeover. 8. Future Agenda Items • PGE is driven by PGE's timeline. • We are continuing to work on the Tenancy-In-Common agreements (doing survey work, getting property descriptions) and checking legal description. The Board returned to Item 5. Intergovernmental Water Board Minutes November 12,2009 6 r 9. Next Meeting: ■ December 9, 2009 at 5:30 p.m. Tigard Public Works Building, 8777 SW Burnham Street, Tigard, Oregon 10. Adjournment At 7:17 p.m., Commissioner Winn motioned to adjourn the meeting; Commissioner Carroll seconded the motion. The meeting was adjourned by unanimous vote of the Commissioners present, with Commissioners Buehner, Carroll, Henschel, Scheiderich and Winn voting yes. I B Chair Kathy Mollusky, IWB Recorder Date: - y Intergovernmental Water Board Minutes November 12,2009 7 Agenda Item No.: o� IWB Meeting Date: fJyoe mbe r ta,aeX�'r Intergovernmental Water Board (IWB) Meeting Minutes September 9, 2009 Tigard Public Works Building 8777 SW Burnham Street Tigard, OR 97223 Members Present: Gretchen Buehner Representing the City of Tigard Patrick Carroll Representing the City of Durham Ken Henschel Representing the Tigard Water District Dick Winn Representing the City of King City Members Absent: Bill Scheiderich Member At-Large Staff Present: Public Works Director Dennis Koellermeier Utility Division Manager John Goodrich IWB Recorder Kathy Mollusky 1. Call to Order, Roll Call and Introductions Commissioner Carroll called the meeting to order at 5:32 p.m. 2. Approval of Minutes —July 8, 2009 Commissioner Buehner motioned to approve the July 8, 2009 minutes; Commissioner Winn seconded the motion. The minutes were approved by unanimous vote of the Commissioners present, with Commissioners Buehner, Carroll, Henschel and Winn voting yes. 3. Public Comments: None 4. Know H2O Newsletter Mr. Goodrich introduced the new quarterly newsletter. It was mailed to all residents in the Tigard Water Service Area (26,500 households). He said the newsletter was developed in-house by several creative City of Tigard staff members. The Commissioners liked the newsletter. Commissioner Buehner especially liked the easy to read, non-technical language. The newsletter will be posted on the City of Tigard website in Spanish as soon as the translation is complete. Mr. Koellermeier is very happy with the newsletter. It accomplishes what the City wanted to do, to have a vehicle to communicate water related issues simultaneously to all the users. Intergovernmental Water Board Minutes September 9,2009 1 5. Water Supply Update Mr. Goodrich reported: • The rain that occurred over the three-day weekend drove sales from 8 million gallons per day (mgd) to 6 mgd. He anticipates an increase as the weather warms up. • The aquifer storage and recovery well (ASR) was shut off because it is not needed. 143 million gallons were used throughout the summer. The Tigard Water Service Area has a 96-day supply left in the ASR for emergency use. • During the heat wave, 12.7 mgd were used. The record of 14 mgd was set in 2002. Average peak day use has historically been 13.6 to 13.8 mgd so we have seen a reduction in use. Rain has a bigger impact reducing use than heat has with increasing use. • The water system is functioning as expected: pumping systems are all online and operating normally. 6. Discussion of Possible Methodologies to Calculate Ownership Interest. This item was continued from the Board's July 8, 2009 meeting. • Mr. Koellermeier summarized Mr. Goodrich's memo. The City used four different methodologies to calculate ownership interest. There are two things driving this issue: o The Tenancy-In-Common (TIC) agreements require us to recalculate ownership biannually, due this year. o How assets are dealt with in the intergovernmental agreement (IGA) rewrite. • Getting population numbers requires substantial estimating. Durham and King City are easy; PSU can provide the population numbers. However, population is not tracked at the district level for the TWD, and the area represented by Tigard does not correspond with city boundaries. These issues make population difficult to ascertain for Tigard and the Tigard Water District. As a starting point, population was required in the original methodology. When the Tigard Water Service Area was formed, it was not known how the formula would be utilized. It may have been required if there were a need to bond. The member jurisdictions are not expected to bond under the current or future IGA. • AWWA industry standard uses the meter equivalency model. It assumes a residential meter has a unit value of one. Bigger meters have some multiplier of one. This information is recoverable daily from the City of Tigard's billing system. Every account has a meter size and is tracked by jurisdiction. The calculations the City of Tigard completed were to verify the accuracy of this method compared to other methods. No matter what method is selected, the numbers are close. There is only a 2-1/2 percent difference between any of the methods. • Mr. Koellermeier stated meter equivalency is methodology to use for a few reasons: 1) Tests out mathematically. 2) Easy, accurate number to obtain whether needed for withdrawal, the TIC agreement, or any other purpose. 3) It is adopted and recognized by AWWA. • The current TIC requires us to recalculate population every two years. Mr. Koellermeier feels there is no value in this. The IWB can adopt the new Intergovernmental Water Board Minutes September 9,2009 2 methodology and run the meter equivalency report. This would negate the population issue. • If the IWB decided to move forward with meter equivalency, the TIC agreement would likely need to be amended and new deeds recorded. The IWB may also want to remove the requirement that ownership interest be updated every two years. This new methodology will be used in existing TIC agreements, the new IGA, and any future documents. Commissioner Scheiderich can incorporate meter equivalency methodology and audit process language into the new IGA. • Commissioner Scheiderich is supposed to have the draft IGA done for October meeting. Commissioner Carroll is pressing him to get as close to finished project in four weeks as he can and to email advanced copies to IWB members. Commissioner Carroll would like to set up a special meeting or extend the November meeting to get the new IGA completed around the first of the year. He would like each member jurisdiction's legal counsel to have an opportunity to review and comment on the new IGA before then. He suggested each member jurisdiction schedule this with their governing body and attorney. Commissioner Winn made a motion recommending we use meter equivalency method for division of assets and any other applicable situations. Commissioner Buehner seconded the motion. The motion was approved with Commissioners Buehner, Carroll, and Winn voting yes. Commissioner Henschel abstained. 7. Informational Items: Update from Commissioner Buehner on Lake Oswego/City of Tigard Oversight Committee activities. Commissioner Buehner had nothing to report; a meeting will be scheduled in the next week or so. Mr. Koellermeier reported on the two processes going on: (1) legal front and (2) project front. 1) On legal front, Tigard and its co-defendants (the team) are participating in the discovery process. WaterWatch requested copies of the team's information. Some discovery requests were challenged; these will be resolved in the next couple of weeks. From a policy position, South Fork feels they have a senior claim to the water, and all other issues are immaterial. WaterWatch is on the other side of the policy saying the protected species are more important than the old state law; water must be kept in the stream. The team is stationed in middle. We have worked with the state and different agencies and can live with the settlement. The Administrative Judge assigned to the case has a reputation of looking for common ground and getting to the middle of an issue. This helps the team define its position as reasonable. 2) On the project side, the team is half way through the selection process of finding a Program Manager. We have done the Statement of Qualification and are requesting proposals from three firms. The final selection will be made and that firm will be operational before the year is out. • The hearing will occur around February and then the appeal process will begin. The legal issues are expected to be resolved early in 2011. This is not delaying the project. The problem is how much capital money should be put at risk, spent at the front end of design? The legal will be resolved in time to make a decision Intergovernmental Water Board Minutes September 9,2009 3 about negotiating an agreement with Portland. The problem is construction and whether the Tigard-Lake Oswego water partnership projects can be built before Tigard's water contract with Portland expires. • The legal process will not stop the permitting process. The team needs to get a permit for land use in West Linn. In-water permits will be difficult to obtain for all agencies that use the Clackamas River, The Corps of Engineers rules need to be complied with when tunneling under the Willamette River. Endangered species are in both rivers, which is a challenge. It has to be demonstrated that endangered species are not being killed. Over the next six months, more details will be available, such as the schedule, cash burn model, and a more detailed approach to permitting. • Mr. Koellermeier hopes Tigard can self-finance the build-out for one more year. A grant was acquired that paid for half of the $5 million pump station so Tigard can use that money, around $2 to $2.5 million. The other half of the grant is a low interest forgivable loan, which means we are self financing at a very low rate, 3 percent, rather than going to the commercial market. Very few agencies in State of Oregon received the money. All revenue is bond-based, so no vote was required. 8. Non-Agenda Items: None 9. Future Agenda Items Future agenda items were not discussed. 10. Next Meeting: • October 14, 2009 at 5:30 p.m. Tigard Public Works Building, 8777 SW Burnham Street, Tigard, Oregon 11. Adjournment At 6:36 p.m. Commissioner Winn motioned to adjourn the meeting; Commissioner Henschel seconded the motion. The meeting was adjourned by unanimous vote of the Commissioners present, with Commissioners Buehner, Carroll, Henschel, and Winn voting yes. IWB Chair Kathy Mollusky, IWB Recorder Date: Intergovernmental Water Board Minutes September 9,2009 4 Agenda Item No.: S IWB Meeting Date: V%�tnber 1a,2j�09 AMENDED AND RESTATED INTERGOVERNMENTAL AGREEMENT BETWEEN DURHAM, KING CITY AND THE TIGARD WATER DISTRICT AND THE CITY OF TIGARD FOR WATER SUPPLY This Agreement is made and entered into under authority of Chapter 190, Oregon Revised Statutes, by and between the cities of Durham and King City and the Tigard Water District, an ORS Chapter district ("District") and the City of Tigard ("Tigard"), all Oregon municipal corporations ("the parties"), in Washington County, Oregon. This Agreement is an amendment and restatement of those individual intergovernmental agreements entered between Tigard and each of the other two other cities and the District in or about 1993. This Agreement shall be effective as of the date that all parties have signed. RECITALS: A. The three cities withdrew the areas included within their boundaries from the political boundary of the District effective July 1, 1993. In consideration of their separate contracts with Tigard for the operation and maintenance of a water supply to serve all four parties, Tigard granted to Durham, King City and the Tigard Water District (collectively, the "parties served") an equitable interest in those assets (described as "system assets" in those contracts) located within the combined service area. Water supply, storage and distribution facilities ("system assets") were not divided between the cities and the District as provided for by ORS 222.540 and instead, all such assets wherever located were pledged to the use of the City of Tigard for the operation and maintenance of a single water supply, storage and distribution system to serve all four parties. All parties now desire to clarify the method to determine the value of those assets and the parties' equitable ownership interest in same and to establish the methods for valuation of both real and personal property. B. The parties intend that Tigard continue to provide and manage a water supply system serving all parties for the duration of this Agreement including use of assets and facilities not within the combined service area that are owned by Tigard and other entities that are not parties to this Agreement. C. The parties desire to clarify the role of the Intergovernmental Water Board ("IWB") as to those matters where its actions are advisory to Tigard or are binding on Tigard. In consideration of those premises as generally recited the Parties now AGREE: 1. Purpose and Scope. Tigard shall continue to furnish and maintain a domestic water supply, storage and distribution system serving all parties to this Agreement. All parties pledge the use and benefit of all assets of that system, wherever located whether inside or outside the parties combined service area, as they now exist and hereafter are constructed or accrue, for the duration of this Agreement as to each party served. Each party's equitable interest in any and all system assets located within the combined service area shall be deemed held as an undivided common interest until the party terminates this Agreement or until the Agreement is dissolved. Tigard shall enact rates and charges including systems development or connection charges with the advice of the IWB and as limited by state law in such amounts as are necessary to maintain the system for the benefit of all parties. Any and all such rates and charges shall be applied evenly to all customers in similar rate classes throughout the area now served by the system and each party agrees to enforce those rates and charges without exception within that party's political boundary. Tigard shall enter into all contracts necessary or desirable to operate the system in its own name whether or not any such contract is subject to IWB approval. Tigard shall issue and make provisions for repayment of any and all municipal bonds issued to finance capital improvements to the system and may pledge any and all system revenues for repayment of such bonds. Tigard shall prepare and issue all statements and filings necessary to issue such bonds and shall make all continuing disclosures regarding the bonds as may be required by state and federal law. A served party may not issue or contract for any debt that is to be secured by any assets that are necessary to operate or maintain the water supply system. A served party shall consider any request by Tigard to exercise powers of eminent domain if needed to acquire property within that party's political boundary for use for the water supply system. A party shall not unreasonably withhold its consent to such a request. A party may condition its exercise of such authority on Tigard's agreement to pay all attorney fees and costs incurred in any such proceedings. 2. Term of Agreement. The term of this Agreement shall be perpetual. Any served party may terminate this agreement as between that party and Tigard by delivering written notice to Tigard not less than 5 years prior so as to allow Tigard to reconfigure the supply, storage and distribution system serving the remaining parties to accommodate any division of assets that may result from such termination. Tigard may terminate this Agreement as to any served party only for cause and only after Tigard has served written notice to that party of that party's default as to a material term of this Agreement and has allowed that party not less than X days to cure that default. On a party's continued default Tigard may serve written notice of termination to that party not less than 5 years prior so as t0 allow that party to arrange for a replacement water source and supply system with Tigard or with another supplier. Tigard and the terminating party may mutually agree to a different date of termination. 3. Intergovernmental Water Board. The Intergovernmental Water Board (IWB) is continued. The IWB shall consist of five members, with one member to be appointed by each of the four parties to serve at the pleasure of the appointing party and the fifth "at large" member to be appointed by a majority vote of the other members to represent the interest of the general public. The IWB shall decide the process by which it seeks candidates for and appoints the member at large. A member representing a party shall hold a current elective office for that Party and shall be deemed to be authorized to bind that party to that member's affirmative vote on any issue voted on by the IWB. Each party may appoint an alternate IWB member who may take the place of the regular member who is absent at any IWB meeting. An alternate member shall have the same qualifications as the regular member. A person appointed to fill a vacancy shall serve the term of the position that was vacated. The IWB by majority vote may declare a position to be vacant for that member's unexcused absence for more than X consecutive IWB meetings and shall notify the party of any such declared vacancy. 4. Term Of IWB Membership. An IWB member shall continue to occupy the same position on the IWB from and after the adoption of this Agreement for the duration of that member's term. Each IWB position including the Member at Large shall have a term of two years that begins on January 1 and expires on December 31 of the second year of each term. There is no limit on the number of terms that any person may serve in any position. Notwithstanding that the term of a position has expired, the Member occupying that position may continue to serve on the Board until a successor is appointed. 5. Conduct of IWB Meetings. The IWB shall meet regularly and shall conduct all meetings according to Oregon public meetings law. At its first meeting in every calendar year the IWB shall elect a chairperson for the ensuing calendar year and may elect other officers, all of whom who shall have such powers and duties as assigned by the IWB. The Chair shall set the agenda for each meeting. A quorum of the IWB shall be three (3) members and no vote shall be taken on any matter requiring a vote without a quorum. All matters requiring a vote shall be enacted by affirmative vote of at least three (3) parties present and voting except where this Agreement provides a different voting requirement. Tigard shall designate a sufficient number of employees to provide staff support to the IWB during and between meetings. Tigard employees shall serve at the pleasure of Tigard and shall have no voting privileges. Tigard shall provide adequate facilities and equipment for use for all IWB meetings. Tigard shall provide for at least one meeting to be held annually between and among the Tigard City Council and the governing bodies of the served parties. 6. Jurisdiction of IWB. The IWB shall hear and, by majority vote of the members shall make recommendations in an advisory capacity to the Tigard City Council on the following issues: a) Uniform rates to be charged to all water system customers throughout the system, including connection charges, with different rates to be allowed only for different classes of use (e.g., residential, commercial, industrial, irrigation, high elevation surcharge) and all rates and charges to be limited to the costs of service; b) Operation and maintenance issues referred to the IWB by Tigard or that a majority of the IWB raise on the IWB's own motion: c) The proposed annual budget for the parties' water supply system; d) Policies and rules for curtailing water consumption in the same manner throughout the service area in cases of emergency: e) Billing methods and customer account management, including any contracts with third parties for meter reading; f) Capital improvements not listed or scheduled in a capital improvements plan that is adopted as part of Tigard's annual budget for the system; g) Tigard's proposed issuance of municipal revenue bonds to be used to finance water system capital improvements or to refinance existing water system revenue bonds; h) Any and all rules and regulations issued by Tigard as to the use of the water system. The IWB shall hear and by majority vote of the parties shall decide the following issues, as to which the IWB's decision shall be final and binding on Tigard: i) Service to any area or to any wholesale customer that is located outside the parties' combined service area as it exists as of the date of this Agreement, and service by wholesale contract to a once-served party who has terminated this Agreement; j) The issuance of municipal revenue bonds to finance capital improvements to serve any new service area or new extra-territorial customer; k) A contract or partnership with a water provider other than a mutual aid or similar emergency supply agreement; 1) The valuation of a served party's ownership share(s) of system assets as it is regularly recalculated from time to time and as calculated at the time of a party's termination of this Agreement, as further provided in this Agreement; m) The sale or purchase of any real property used or proposed for use in the water system, and the terms of any such sale or purchase; n) Tigard's proposed issuance of any debt other than municipal revenue bonds for capital improvements for the water system serving the exising service area, for which repayment is secured by a lien or other encumbrance on system assets. o) The assignment, sale or other conveyance or transfer of any party's rights or liabilities under this Agreement to any person or entity other than another party. In all cases where an action taken by the IWB shall be final and binding on Tigard, no party shall unreasonably withhold its consent to such action. 6. Ownership and Valuation of Assets. In consideration of the 1994 agreement with Tigard for a water supply system, each of the parties owns an equitable, undivided common share of all capital improvements and real property used in the system that are located within the parties' combined service area, not including those improvements to be constructed by Lake Oswego and Tigard under that certain contract between those cities entered in or about [date] that will be located outside the service area described in this Agreement. A party's equitable share of a system asset, whether real or personal property, shall be calculated using cumulative meter equivalency values. Tigard shall recalculate every two years in the course of Tigard's annual budget process for that year and will recalculate the parties' shares on any party's termination or on dissolution of this Agreement. The parties' shared interests in any system asset that is real property and that Tigard uses in part for purposes other than operation of the water system shall be shown by lease agreements between the parties and Tigard and recorded in county deed records. The parties ownership shares of any property subject to a lease agreement with Tigard shall be set out in the lease agreement and any change in those shares (after recalculation as provided for herein) shall be set out by amendment to the lease agreement. The value of a system asset shall be calculated by one method for assets that are personal property and another method for real property. An asset that is personal property shall have that asset's depreciated value over its useful life using straight line depreciation as are set out in the "Tigard Water District System Assets and Liabilities Final Report" of November 1994 , Section Il. 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. An asset that is real property shall be valued by an independent appraisal at such time as the property or a portion of same is assigned, sold or otherwise conveyed and at the time of any party's termination or the dissolution of this Agreement. The proceeds of any sale or other conveyance of any portion or all of a system asset that is real property shall be allocated to each party according to its current ownership share and shall be held in trust for that party until the party directs the disposition of same. Alternative: Proceeds to be applied towards any capital improvements to the water system that are located within the service area [or wherever located]. Tigard shall maintain all system assets and shall recommend to the IWB the disposition of any asset that is or becomes surplus to the needs of the water supply system. Tigard shall adequately insure all system assets against all risks of loss. Tigard shall prepare and maintain a current list of all system assets including but not limited to intake facilities, treatment plants, transmission lines and storage and pumping facilities showing the general location relative to major streets and political boundaries, the original date in service and the original cost to acquire or to construct the asset. A list of such facilities that is current as of the date of this Agreement is attached as Exhibit X to this Agreement and incorporated by this reference. Tigard on any served party's request shall calculate the value of that party's ownership share of a system asset for that party's use in its annual budget as may be required by GASB rules. For the duration of this Agreement each party shall be entitled to dispose of X percent of the revenue collected from customers within that party's boundary by written direction to Tigard. A party may direct Tigard to hold such revenue in a segregated fund in trust for that party pending the party's further direction on the disposition of that revenue. Tigard shall make the same public meeting space(s) that are used for IWB meetings available to any party on request free of charge on reasonable advance notice for that party's occasional use for a public meeting whether or not related to the water system. 7. Division of Assets on Termination or Dissolution. Upon termination of this Agreement, the parties shall divide assets using the procedures set out in ORS 222.540 for partial withdrawals of territory from a water district upon annexation to a city. Revenues generated by operation of the water supply system shall not be subject to distribution or accounting on a served party's termination and shall not be subject to an equitable- or other claim by that party. A terminating party may offer to convey its ownership share of system assets to Tigard and may waive its rights to a division of assets as provided in this Agreement in consideration of a wholesale contract for water supply between the terminating party and Tigard. Any such contract is subject to IWB review and approval as provided for herein. If the asset is not essential to the operation of such jurisdictions' water system, Tigard may terminate such jurisdiction's rights in the system asset capital improvement by payment of a sum equal to the Jurisdiction's Proportionate Interest in the depreciated value of such system asset. Tigard shall have the first right of refusal to purchase a served party's share of a system asset on that party's termination of this Agreement or on the parties' decision to sell all or a portion of a system asset, on the same terms and conditions as offered to any other person or entity. The offer to purchase and Tigard's exercise of its rights as to that offer shall be on the same terms as in that certain lease agreement between the served parties and Tigard for the property commonly known as 8777 Burnham Street, Tigard, Washington County, Oregon. 8. Accounting and Records. Tigard shall account for the operation and maintenance of the water system as an enterprise fund using generally accepted accounting principles applicable to utility enterprises for the recording and identifying of all revenues and expenditures. The IWB may review and make recommendations on the means and methods of such accounting from time to time. Tigard shall respond in the normal course of business to all requests for public records by persons who are not parties and shall defend the other parties and hold them harmless from any and all claims or legal actions made or filed by the person making the records request. Tigard shall make all financial records relating to the supply system available to any party for inspection and copying on reasonable advance notice and during Tigard's ordinary business hours. Tigard shall present the proposed annual budget for the water system to the IWB for its consideration and recommendation(s) prior to Tigard's adoption of that budget. Tigard shalll provide a copy of each year-end financial audit of its accounts to any party upon that party's request. 9. Annexation and Changes to Service Area. The parties' combined service area as it exists on the effective date of this Agreement is shown, with relation to the parties' political boundaries, on Exhibit X to this Agreement, attached and incorporated by this reference. An annexation of new territory to any party's political boundary and annexation-related changes to political boundary between any of the parties shall be subject to the process for boundary changes set out in Metro Code and in state law. The determination of what party or what other entity shall be the water supply provider for the area to be annexed shall be decided by that process. Each party to this Agreement reserves all of the rights granted by Metro Code and state law to appear and be heard in those proceedings. Any of the served parties may enter an urban services provider agreement with Tigard as to the water supply provider within all or a portion of that served party's political boundary by the process set out in state law for such urban service provider agreements. 10. Amendment. No amendment to this Agreement, including a substitution of any exhibit to this Agreement with a different version of same shall be effective unless in a writing signed and dated by all parties and shall not be effective before the date last signed. Agenda Item No.: U IWB Meeting Date: tJovevw\-� tom, INTERGOVERNMENTAL WATER BOARD (IWB) COMMISSIONER AT-LARGE MEMBER VOLUNTEER POSITION DESCRIPTION (2-year term) IWB Background: The Tigard Water Service Area (TWSA) includes the cities of Durham, King City, two-thirds of Tigard and unincorporated areas of Washington County to the south and west of Tigard. The latter area is represented by the Tigard Water District. The City of Tigard is the water provider for the TWSA and entities within this partnership are represented by the Intergovernmental Water Board (IWB). Collectively, the Board represents almost 60,000 water customers. P=ose: The IWB's role is to make recommendations to the Tigard City Council on drinking water issues. Currently, the Board is actively involved in developing and evaluating future water sources. Members: The IWB consists of five members. Each jurisdiction (Durham,King City,Tigard, and the Tigard Water District) is represented by a member, and one member is appointed at-large. The at-large member is selected by a majority vote of the other members. Knowledge. Skills and Abilities: Applicants need to be available and willing to attend IWB meetings. IWB Commissioners receive packets of information to review before meetings. Commissioners should expect to spend between 3 and 15 hours a month preparing for and attending meetings. A basic knowledge of water system operations and an awareness of regional water sources/issues, along with prior experience as a member of a board or committee is desirable. Meeting Frequency and Location: The IWB generally meets on the second Wednesday of the month at 5:30 p.m. in the Tigard Public Works Building, 8777 SW Burnham Street, Tigard, Oregon. IWB members also participate in joint meetings with the Tigard City Council and other jurisdictions on an as-needed basis, typically two or three times a year. I" Commissioners may be asked to serve as liaisons to other boards and committees and to attend additional meetings. To AppbL Interested individuals who would like to be considered for the at-large position must complete and submit an application by 5 p.m., Monday,November 30, 2009. For more information, or to obtain an application, contact Tigard Public Works Director Dennis Koellermeier at 503-718-2596 or dennis@tigard-or.gov. Applications can be mailed to: Applications can be delivered to: Dennis Koellermeier Dennis Koellermeier City of Tigard City of Tigard Public Works Building 13125 SW Hall Blvd. 8777 SW Burnham St. Tigard, OR 97223 Tigard, OR 97223 C City of Tigard November 13,2009 Mr. Roland Signett City Administrator City of Durham 17160 SW Upper Boones Ferry Rd. Durham OR 97281-3483 Dear Mr. Signett: Patrick Carroll has served as Durham's representative to the Intergovernmental Water Board (IWB). Mr. Carroll's term expires on December 31,2009, so the City of Durham now needs to appoint a representative for the next two-year term.Representatives to the IWB are appointed by their respective governing bodies, so I would appreciate it if you would present this to your City Council as soon as possible. Please notify me of your Council's selection. According to the 1993 Intergovernmental Agreement, Mr. Carroll can continue to serve on the Board until a representative is appointed.There are no term limits associated with these positions; representatives may be reappointed to successive terms. The IWB typically meets on the second Wednesday of each month, at 5:30 p.m.,in the auditorium of the Tigard Public Works Building,8777 SW Burnham Street,Tigard. Should you have any questions,you can reach me at 503-718-2594 or kathym@tigard-or.gov. Sincerely, Kathy Mollusky Executive Assistant c: Mr. Patrick Carroll 13125 SW Hall Blvd. • Tigard, Oregon 97223 • 503.639.4171 TTY Relay: 503.684.2772 0 www.tigard-or.gov City of Tigard 13125 SW Hall Blvd. Tigard, OR 97223 i Phone: 903-639-4171 TIGARD FAx TRANSMITTAL Date November 4, 2009 Number of pages including cover sheet 3 To: ❑ The City of King City (Fax No. 503-639-3771) ❑ The City of Durham (Fax No. 503-598-8595) From: Kathy Mollusky Co: City of Tigard Fax #: 503-684-8840 Ph #: 503-718-2594 SUBJECT: Intergovernmental Water Board Meeting Notice and Agenda MESSAGE: Please post the attached agenda for the upcoming meeting of the Intergovernmental Water Board. Thank you. I.�ENGWAX.DOT I Intergovernmental Water Board — Agenda SERVING TIGARD,KING CITY,DURHAM AND THE UNINCORPORATED AREA MEETING DATE: Thursday, November 12, 2009 5:30 p.m. MEETING LOCATION: Tigard Public Works Building 8777 SW Burnham Street Tigard, OR 97223 1. Call to Order, Roll Call and Introductions Call the meeting to order, staff to conduct roll call. 2. Approval of Minutes— September 9,2009 Action: Motion to approve the September 9, 2009 minutes. 3. Public Comments Call for comments from the public. 4. Water Supply Update -John Goodrich 5. Presentation of Draft 1993 Intergovernmental Agreements between Durham and the City of Tigard, King City and the City of Tigard, and the Tigard Water District and the City of Tigard - Commissioner Scheiderich Action: No action required. 6. Informational Items • Update from Commissioner Buehner on Lake Oswego/City of Tigard Oversight Committee activities. • Term Expiration for Commissioners Carroll and Scheiderich • Burnham Street Update 7. Non-Agenda Items Call for non-agenda items from the Board. 8. Future Agenda Items Schedule Date Item To Be Announced Consider an Anchor Easement with PGE Company on the Public Works Building Property To Be Announced Additional Tenancy in Common Agreements for Properties within the Tigard Water Service Area. 9. Next Meeting: ■December 9, 2009 at 5:30 p.m. Tigard Public Works Building, 8777 SW Burnham Street,Tigard, Oregon INTERGOVERNMENTAL WATER BOARD AGENDA — NOVEMBER 12, 2009 City of Tigard 1 13125 SW Hall Blvd.,Tigard,OR 97223 1 503-639-4171 1 www.tigard-or.gov I Page 1 oft 3 11. Adjournment Action: Motion for adjournment. Executive Session The Intergovernmental Water Board may go into Executive Session. If an Executive Session is called to order, the appropriate ORS citation will be announced identifying the applicable statute. All discussions are confidential and those present may disclose nothing from the Session. Representatives of the news media are allowed to attend Executive Sessions, as provided by ORS 192.660(4), but must not disclose any information discussed. No Executive Session may be held for the purpose of taking any final action or making any final decision. Executive Sessions are closed to the public. INTERGOVERNMENTAL WATER BOARD AGENDA-NOVEMBER 12, 2009 City of Tigard 1 13125 SW Hall Blvd.,Tigard,OR 97223 1 503-639-4171 1 www.tigard-or.gov I Page 2 oft Ii. Adjournment Action: Motion for adjournment. Executive Session The Intergovernmental Water Board may go into Executive Session. If an Executive Session is called to order, the appropriate ORS citation will be announced identifying the applicable statute. All discussions are confidential and those present may disclose nothing from the Session. Representatives of the news media are allowed to attend Executive Sessions, as provided by ORS 192.660(4), but must not disclose any information discussed. No Executive Session may be held for the purpose of taking any final action or making any final decision. Executive Sessions are closed to the public. INTERGOVERNMENTAL WATER BOARD AGENDA—NOVEMBER 12, 2009 City of Tigard 1 13125 SW Hall Blvd.,Tigard,OR 97223 1 503-639-4171 1 www.tigard-or.gov I Page 2 of2 ti Intergovernmental Water Board — Agenda SERVING TIGARD,KING CITY,DURHAM AND THE UNINCORPORATED AREA MEETING DATE: Thursday, November 12, 2009 5:30 p.m. MEETING LOCATION: Tigard Public Works Building 8777 SW Burnham Street Tigard, OR-97223 1. Call to Order, Roll Call and Introductions Call the meeting to order, staff to conduct roll call. 2. Approval of Minutes — September 9, 2009 Action: Motion to approve the September 9, 2009 minutes. 3. Public Comments Call for comments from the public. 4. Water Supply Update -John Goodrich 5. Presentation of Draft 1993 Intergovernmental Agreements between Durham and the City of Tigard, King City and the City of Tigard, and the Tigard Water District and the City of Tigard - Commissioner Scheiderich Action: No action required. 6. Informational Items • Update from Commissioner Buehner on Lake Oswego/City of Tigard Oversight Committee activities. • Term Expiration for Commissioners Carroll and Scheiderich • Burnham Street Update 7. Non-Agenda Items Call for non-agenda items from the Board. 8. Future Agenda Items Schedule Date Item To Be Announced Consider an Anchor Easement with PGE Company on the Public Works Building Property To Be Announced Additional Tenancy in Common Agreements for Properties within the Tigard Water Service Area. 9. Next Meeting: ■December 9, 2009 at 5:30 p.m. Tigard Public Works Building, 8777 SW Burnham Street,Tigard, Oregon INTERGOVERNMENTAL WATER BOARD AGENDA— NOVEMBER 12, 2009 City of Tigard 1 13125 SW Hall Blvd.,Tigard, OR 97223 1 503-639-4171 www.tigard-or.gov I Page 1 oft hp officejet 4200 series 4215 Personal Printer/Fax/Copier/Scanner Log for City of Tigard PW 5036848840 11 /4/2009 5 : 22PM Last Transaction Date Time Type Identification Duration Pages Result 11 /04 05: 22p Fax Sent 5036393771 0: 49 3 OK hp officejet 4200 series 4215 Personal Printer/Fax/Copier/Scanner Log for City of Tigard PW 5036848840 11/4/2009 5 : 24PM Last Transaction Date Time Type Identification Duration Pages Result 11/04 05: 23p Fax Sent 5035988595 0: 35 3 OK