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12/09/2009 - Packet Completeness Review for Boards Commissions and Committee Records CITY OF TIGARD Intergovernmental Water Board Name of Board, Commission or Committee bs,c-e" A e-r- / 1 Lx) 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 Signature 5Y/,/, Date Intergovernmental Water Board — Agenda SERVING TIGARD, KING CITY,DURHAM AND THE UNINCORPORATED AREA MEETING DATE: Wednesday, December 9, 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 —November 12, 2009 Action: Motion to approve the November 12, 2009 minutes. 3. Public Comments Call for comments from the public. 4. Water Supply Update -John Goodrich 5. Credit for Water Leak - Dennis Koellermeier Action: Motion to award credit for leak to Fought& Company. 6. Informational Items • Update from Commissioner Buehner on Lake Oswego/City of Tigard Oversight Committee activities. • Advertisement submitted for member-at-large position. 7. Non-Agenda Items Call for non-agenda items from the Board. 8. 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. 9. 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. INTERGOVERNMENTAL WATER BOARD AGENDA— DECEMBER 9, 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 10. Next Meeting: ■January 13, 2010 at 5:30 p.m. Tigard Public Works Building, 8777 SW Burnham Street,Tigard, Oregon 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—DECEMBER 9, 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 Intergovernmental Water Board (IWB) Meeting Minutes December 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 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 5:36 p.m. 2. Approval of Minutes — November 12, 2009 Commissioner Buehner motioned to approve the November 12, 2009 minutes; Commissioner Henschel seconded the motion. The minutes were approved by unanimous vote of the Commissioners present, with Commissioners Buehner, Carroll, Henschel, Scheiderich and Winn voting yes. 3. Public Comments: None 4. Water Supply Update Mr. Goodrich reported that ASR injection started December 1. Currently, the rate of injection is at 1,100 gallons per minute into ASR 2. This will continue until it is full, then injection into ASR 1 will begin. Water demand is currently averaging 4 to 4.2 million gallons per day. On Saturday, November 27, around 1:00 p.m. a boil water event occurred. Portland Water Bureau (PWB) released this information to the media around 5:00 p.m. During this four-hour time period, there was some confusion on PWB's part, which resulted in citizens in the City of Tigard (COT) being informed to boil water until staff could verify that Tigard's system was not affected. Once verified, staff changed the message. COT also posted the information on the website Monday morning. COT staff is speaking with PWB about the missteps that happened. Unfortunately, this occurred on a four-day weekend when PWB customer service staff and the state were on furlough. The message has to be approved by the state before being released to the public and the media. Intergovernmental Water Board Minutes December 9,2009 1 PWB lifted the boil water notice Sunday evening. PWB has spent a week trying to determine what the cause was. They isolated and drained the affected reservoir, but have not found anything that specifically points to the contamination. They think ducks might have caused it. A boil water notice is not something any water district wants to do. COT is making sure all the communication tools are in place to notify people if it is ever needed. When there is a positive sample, then an additional three samples must be taken. One upstream, one downstream, and one where the original sample was taken. Those samples take 24-hours to run. For PWB, the one upstream and one downstream came back negative. The resample in the same place came back positive. Under state law, PWB has 24-hours to notify the public of the boil water notice. Commissioner Henschel inquired as to how many hours pass before the first indication and public notification occurs. Mr. Goodrich responded between 24- to 48-hours. Mr. Koellermeier clarified that PWB followed the letter of law exactly. COT has discussed what we would do differently. An option COT has is our reverse 911 system that can dial every customer in the system. The state still has to approve the message before we send it out. A suburb just cannot get a message out as well as the City of Portland. Portland dominates the media so suburbs have had to create other methods. The timing would not change; staff still has to go through the test and retest process, but COT's methods of getting the message out to people is more efficient. Commissioner Henschel inquired as to what the downside would be of notifying people even if the first sample turns out to be a false positive. It is common to have the first test positive. Sometimes it is the process of taking the water sample that is contaminated, not the water. For instance, the sampler touches the end of the bottle or the bottle was contaminated during processing. That is why the system is has a two-step approach in verifying results in the system. The reason it was confusing for everyone was the initial message that stated everything west of the Willamette River was affected. Mr. Koellermeier did not want to trust the media for information; he wanted verification from PWB. It was around 6:00 p.m. before we could verify TWSA was not receiving water from the problem reservoir and we asked the media to change the message to clarify which specific areas west of the Willamette River were affected. Mr. Carroll inquired as to how many water districts PWB supplies. Mr. Koellermeier thinks 17 or 18 separate districts. Portland guidelines state they are supposed to be in constant contact with the districts. The Public Information Officer at the time was a laboratory supervisor who may not have known the protocol for communicating with the wholesalers. Commissioners Buehner and Carroll requested that Mr. Koellermeier send a letter to Randy Leonard, Portland Water Board Commissioner regarding their handling of the situation. The board stated that Portland should be told they have to notify all the wholesale providers. Commissioner Carroll stated it is unacceptable that COT was not notified as per the agreement. Mr. Koellermeier agreed that PWB let their customers down. He suspects we will fix these issues. We will not change protocol at the state level for dealing with first notification versus second notification because there is a lot of science behind this we have not discussed tonight. It is appropriate for the IWB to express displeasure with how PWB treated the wholesalers through lack of information. Commissioner Carroll wants COT notified within hours of potential problem so we can make decisions, like to turn the water off. Mr. Koellermeier stated that in this Intergovernmental Water Board Minutes December 9,2009 2 case, with this particular problem, if we were contaminated that contamination would already be throughout the system. In different instances, we do have the capacity to isolate one supply from another. We are probably one of the few wholesalers that have that luxury to change the source of supply. Commissioner Buehner asked if it would be appropriate for PWB to give the 18 districts a heads up so everybody was ready if the second positive came in. Mr. Goodrich said PWB is looking at changing their protocol to provide notice to the wholesalers regarding this type of event. They have only had 14 since 1990, which works out to less than one per year. One per year for a system their size indicates a fairly clean system. They take around 200 samples per month. It is very easy to contaminate the bottle with a bib nozzle, sampler's thumb, etc. Commissioner Winn wants COT to notify the IWB as soon as they know of a situation. Mr. Koellermeier could have activated our CodeRed phone system, but by then the media began clarifying the message regarding areas of impact. He did not call IWB members because the media message was being disseminated properly at that point. Mr. Koellermeier stated that we could change that procedure, if necessary. 5. Credit for Water Leak Mr. Koellermeier stated that the IWB recently passed a policy to allow COT staff to issue credit for water leaks. However, this is imbedded in COT ordinance, which has not been changed at the council level yet. These policies and code changes have not been put on the agenda because staff wanted to put through all the policy issues at one time. Commissioner Buehner motioned to approve credit Commissioner Scheiderich second the motion. The credit for the water leak was approved by unanimous vote of the Commissioners present, with Commissioners Buehner, Carroll, Henschel, Scheiderich and Winn voting yes. 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 has not met since IWB's last meeting. b. Advertisement Submitted for Member-at-Large Position A copy of the advertisement is in the IWB package. It is in the newspapers, on our website, etc. Commissioner Scheiderich would like applicants to come to our January meeting so we could ask them a few questions and they could introduce themselves. He would like to do this in open session. Depending on the number of applicants, it can occur in one meeting or two meetings. 7. Non-Agenda Items • Commissioner Scheiderich inquired about the status of buying into the Sherwood pipeline. Mr. Koellermeier is waiting to hear from the City of Sherwood. Both the City of Tualatin and COT have budgeted for this purchase. The first offer was to buy an option to exercise later. If it was not exercised, the down payment would be lost. The City of Sherwood asked if we wanted to abandon the Lake Oswego operation and go in full with them. Mr. Koellermeier informed them we were not willing to do that at this time. Clark Balfour is drafting an agreement to make us partners through the Willamette River Water Coalition. Mr. Koellermeier expects to have something for the IWB in three months. Intergovernmental Water Board Minutes December 9,2009 3 • Commissioner Buehner requested an update on Haag Lake. The IWB decided not to do the Haag Lake project and the costs keep going up. It has been in the paper that the Lake Oswego project costs are going up. Mr. Koellermeier stated that the scope of the Lake Oswego project did not change and there is no new information on costs. The 2006 estimate was escalated through the construction period out to 2016. A 6% multiplier was used, which is a 60% increase if you add 10 years to that initial number. The scope of the Haag Lake project has changed substantially. The existing dam is seismically deficient according to the seismic evaluation. This is a federal government issue. They have three options: (1) spend money fixing the dam, (2) put money in for new dam, or (3) lower the water in the lake to mitigate the potential issue. The technical solution that works best for the project is to have the federal government contribute to a new dam downstream from the existing dam. This has pushed the project costs to above $1 billion. It is not yet determined how much of that cost will be federal obligation and when the cash will start flowing to pay for the project, which will cause the project to cost more. The participation of the federal government is outside of the timeline the partners have been working towards to fix the issue so the IWB's decision was a good one. • Mr. Koellermeier answered the question posed last week regarding TWD board members needing ratification of issues from their board before they can contribute to a vote here at the IWB. The legal opinion is that this is a TWD decision made by their board. State law does not impose it. It is a decision to be made between the parties, if they want TWD to amend their operating rules. TWD is taking COT's legal opinion back to their board to make a decision. 8. 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 The Board wanted to review the changes from last month prior to continuing with the agreement. Page 2, Paragraph 1 B — It was made clearer that the Parties are delegating legal complexities, such as the ability to adopt the system development charges, to Tigard. Page 2, Paragraph 1 C — It was pointed out that all revenues are pledged to Tigard, except those shares of system revenues that are allocated to each Party's control and disposition under Section 7E of the Agreement. Page 2, Paragraph 2B —Tigard may terminate this Agreement after 30-days notice of default. This is standard language. Page 3, Paragraph 2C —This restates that if a Party terminates, Tigard will try to negotiate a wholesale water agreement contract. This does not obligate Tigard to provide water, just obligates the City to try to negotiate a contract. Page 3, Paragraph 3 —This was changed to say the member-at-large must reside in the service area. Further down it says the member representing the Party shall be authorized to act on behalf of that Party. The IWB, by majority vote, may declare a member's position to be vacant with three unexcused absences. Intergovernmental Water Board Minutes December 9,2009 4 Page 3, Paragraph 5A— Clarified that the IWB shall schedule regular meetings. Page 3, Paragraph 5B - Tigard shall budget and provide staff support for the IWB. Page 4, Paragraph 5C — One public meeting is to be held annually with the governing bodies of the served Parties and Tigard City Council. Page 4, Paragraph 6A—Will be numbered correctly, there are no additional changes. Majority vote is the majority of all five members present. Page 4, Paragraph 6B —The majority vote of the parties shall be final and binding on Tigard. Page 4, Paragraph 6B(1) — If COT wanted to provide water service to a new wholesale customer, this should require a majority vote of the Parties. Serving new members could risk the integrity of the system. A wholesale customer means territory, a city or district, not an individual customer. Commissioner Buehner inquired if the agreement should have different provisions for Areas 63 and 64 that are already included in our long-term plan to serve. The Board did not feel separate provisions were necessary. Mr. Koellermeier is concerned the new Agreement language removes the tenant that we are under no obligation to serve outside of the boundary. The concern with this language is that IWB can force Tigard to serve outside of the current boundary. This would be contrary to the current City policies. The revision agreement at this time states that the IWB must vote on a proposal from Tigard to supply water outside of the area. Commissioner Scheiderich will clarify the wording to state that the Board must ratify a proposal by Tigard to supply water to an area outside the existing area. Page 4, Paragraph 6B(3) — Changed the word "supply" to "source". The Lake Oswego agreement is binding on Tigard, but it was not imposed by the IWB. This agreement says that if the IWB wanted to invest in Sherwood and COT did not want to, the IWB could not vote to make it happen. Page 5, Paragraph 7(A) —All the Parties own all the assets. The state law on annexation reads that assets that are of no use to the city withdrawing just go away. This Agreement does not differentiate between system assets versus other assets. The Parties pledge all assets until withdrawal. On termination, the Parties decide what assets in the ground are unique to the service area and divide off the rest of the system. Other assets follow state law. Page 5, Paragraph 7B— Commissioner Scheiderich will reword the last sentence. If ownership shares change from time to time, it does not matter until termination. We will bring ownership shares current at time of termination only. Page 5, Paragraph 7C — If it is not real estate, it is a straight-line depreciation. Real property shall be valued by an independent appraisal. Page 5, Paragraph 7D —The IWB does not have consensus concerning when real estate is sold. Should all proceeds go into the Capital Improvement fund or to each city to dispose of as they wish? TWD needs to relook at this; they thought it referred to termination. Intergovernmental Water Board Minutes December 9,2009 5 Page 6, Paragraph 7E — General accounting standards require every city to put a value of pipeline in the annual budget. If we agree to this agreement, all property — existing and new - needs to re-deeded. The pipeline from Lake Oswego is listed as part of Lake Oswego/Tigard agreement; it is removed from the Parties here. The agreement specifically states that the asset is a part of the partnership, the agreement with Lake Oswego would have to be amended to change. Commissioner Carroll inquired as to why would this asset not be everyone's since everyone pays for it. There are several ways to finance this agreement. The decision was made that it should be self-supported by revenues. The existing Agreement did not allow a revenue bond sale by anyone but Tigard. Commissioner Carroll wants the assets converted to system assets as they are paid off. We take title as system paid off, ownership as we get benefit from it. In 2016, that which has property will be re-titled to say Tigard and Lake Oswego has some percent ownership. The IWB should have their percentage ownership of Tigard's piece. Assets have value when they are half paid off. At some point those assets revert to system assets. Mr. Koellermeier stated that if that is the pleasure of group, put it in the Agreement. Lake Oswego pipe is the only system asset not in here. Mr. Koellermeier does not know how Tigard City Council will react to this. Page 6, Paragraph 7F—The IWB does not agree on this issue. Tigard wants to treat everyone the same. The IWB will revisit this issue at the next meeting. Page 6, Paragraph 7G —Tigard shall make the auditorium meeting space available at no cost to the Parties whether or not the meeting is related to the water system. The IWB stopped the discussion and will continue next month starting with (8) Division of Assets on Termination or Dissolution. 9. 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. • Approve Water System Master Plan. 10. Next Meeting: ■ January 13, 2010 at 5:30 p.m. Tigard Public Works Building, 8777 SW Burnham Street, Tigard, Oregon 10. Adjournment At 7:25 p.m., Commissioner Winn motioned to adjourn the meeting; Commissioner Buehner seconded the motion. The meeting was adjourned by unanimous vote of the Commissioners present, with Commissioners Buehner, Carroll, Henschel, Scheiderich and Winn voting yes. IVVB Chair Kathy Mollusky, IWB R corder Date: ) I \ I I l Intergovernmental Water Board Minutes December 9,2009 6 Agenda Item No.: IWB Meeting Date: 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 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. IWB Chair Kathy Mollusky, IWB Recorder Date: Intergovernmental Water Board Minutes November 12,2009 7 Agenda Item No.: S IWB Nleeting Date: c 1 l:•'` 1� e -Arl I Qt W., INC. RECEIVED SEP 1 8 2009 CREDIT FOR LEAK ADJUST eMETr h_Cont_ The City of Tigard has a policy of issuing partial credits for leaks f at a`—re Pepaixe m a timely V manner. The city expects leaks to be repaired within 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 consumption 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 cost deducted from the utility account as the Credit for Leak Please describe the specific circumstances of your request: Yov4�t s' G°y 1 ! 1Fc n /�� I© f �1� f i4 0✓ S t Cc (LC�YI Date leak found: �Ll Date leak repaired: Account#: 04-5)530-2) —P Location of Service:_ _Z'� J`~S X60 72 i' / . Customer Name: re,da,6 �o Mailing Address: O. 6!�!)4 2 3 75`9 `"9 o r ore Street address City State Zip Phone —0 DOCUMENTATION YOU MUST SUBMIT COPIES OF PLUMBER'S BILLS AND/OR .RECEIPTS FOR PARTS, REQUIRED TO FIX THE LEAK. ----------------------------------------------------------------------------------------------------------------------------------- l FOR OFFICE USE ONLY $2.51 $2.49 2.93 $2.43 $3.13 - $1.22 = $ [ r !-7 I f RES MUR CO IND IRR Markup Previous years usage: ?� l t-l� t,3 Lt - _ -1 Q- 46" #periods used x $ Average Leak Period Leak ccf Markup Credit Adjustment Total Credit:$)do ry Date Issued: t l _ Issued By� VOICE NUMBER CCB#49418 VVA Lic#APOLL DR 995MP Northeast 503-252-5693 DATE WORK MACHINE USED WARRANTY Southeast 503-239-8801 ORDER# 81 _AUG. YES NO 1 SERVICEMAN&VAN#^ � '�� f f _ �! _100 A/R ScEREVERSEFOR�ERMS Gresham 503-667-5797 _300 `MINI JET PER lo Westside 503-292-659 o covER_o 1, Cr-c( DRAIN AND Milwaukee 503-654-8026 CUS7bMER P.O:NO. ACCESS ON.LINE — _ 1085 _BIG JET PRIOR PROBLEMS ROOTER SERVICE,INC. Lake Oswego 503-636-1276 _C/O _ON ACCT —CAMERA_OTHER HOW LONG AGO?_ 2208 NW Birdsdale Ste.#8 Vancouver 360-695-0871 . _TRAP _NO CHARGE _LOCATOR-700 SAME PROBLEM? Gresham,OR 97030-3544 Fax 503-669-9568" _OTHER YES_ NO BILLTt?. JOB;NAMEi'> _: _BATH TUB —LAUNDRY LINE _ RAIN DRAIN NAME: - NAME �' r J -- _BATH SINK _UTILITY SINK _ MAIN LINE - ; � SHOWERFLOOR DRAIN 'iPARKING LOT DRAIN ADDRESS: J CITY: i .t ,,`r'}' L"ZIP: CITY .�/L: i;t j•; ZIP: c /TOILET URINAL f� i/ . �' � ,OTHER lf -KITCHEN SINK GREASE TRAP rV rC '� PHONE: PHONE. 1'!_ %� +1 0' "�: � ( � i i j..{ l: _Ki 10-7 �`. c� f r 10-8 'S l r: c '3 AMOUN7 >. AUTHORIZE THE WORK TO BE DONE.I COMPLETELY r p i UNDERSTAND ALLTHETERMS AND CONDITIONS ic AND AGREE TO PAY THE AMOUNT STATED BELOW f + / WHEN THE JOB 1S COMP I A', " - SIGNATURE ADDITIONAL WORK$ X i-� �`��('� ' �-�..� >l�� /��1�£.'�-I' r�`•'i�/ /.� r' �%_C, .�,,Cfj(j��. l � INITIALS ACTUAL TOTAL DAMAGP.DONE?YES_NO_ 1 f'. ¢� ' ' ( g �' fF CLEAN-UP _EXCELLENT GOOD _ POOR . 1A G1 lv­ SIGNATURE r 10, '� - 1 "ri' ,c. k•/l,� ..{• -`l. '� f".�i.,i..f (.`ff .., �''� U. L JL. LABOR t �.p C PARTS SUBTOTAL T s GUSTOMER'SIAUTHORIZEDAQENT 'SIGNATURE PLEASE PAY FROM-THIS INVOICEk • .:;" I agree"to pay a twenty-five dollar , - service charge on all returned checks.. �- REC A ACCOUNTSEIV,:BLE•.G.OP�` Agenda Item No.: W IWB Meeting Date: -C1%- q ra City of Tigard NPress Release December 4,2009 13125 SW Hall Boulevard I Tigard,Oregon 97223 Phone: 503-639-4171 For Immediate Release Contact: Dennis Koellermeier Public Works Director City of Tigard 503-718-2596 dennis(Da,tigard-or.gov Volunteer Position on the Intergovernmental Water Board The Intergovernmental Water Board (IWB) represents over 60,000 water customers from Durham, King City, two-thirds of Tigard and unincorporated Washington County. The board makes recommendations on drinking water issues and is currently focused on developing and evaluating future water sources. The IWB consists of five members. Each jurisdiction is represented by one member, and one member is appointed at-large. The at-large member is selected by a majority vote of the other members. The IWB is seeking a volunteer to fill the at-large member position. The at-large member will serve a two-year term and must be available for IWB meetings held on the second Wednesday of the month at 5:30 p.m.Attendance at other meetings may also be required. A complete position description is available at www.jigard-or.gov/volunteer. Interested individuals are encouraged to complete and submit an application by 5:00 p.m.,Monday, December 28, 2009. For more information,or to obtain an application,contact Tigard Public Works Director Dennis Koellermeier at 503-718-2596 or dennisntigard-or.gov. Page 1 of 1 FAX TO: O TIGARD TIMES 0 OREGONIAN O REGAL COURIER I:%PWIGREERIIWBIPRESS_REL EASE_WITH-BLACK_LOGO.DOC 0 CITY WEB PAGE 13 OTHER: Agenda Item No.: IWB Meeting Date: AMENDED AND RESTATED INTERGOVERNMENTAL AGREEMENT BETWEEN DURHAM, KING CITY AND THE TIGARD WATER DISTRICT AND THE CITY OF TIGARD FOR WATER SUPPLY 2"d Draft 12/9/09-New Matter in Bold Italic- 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 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 (all Parties other than Tigard being the "Parties served'I 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. 1A. 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 Tigard Water Supply Agreement 2nd Draft 12/9/09 Page 1 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. 1 B. All other Parties delegate to Tigard the authority to enact water system 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. 1C. 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 except those shares of system revenues that are allocated to each other Party's control and disposition under Section 7E of this Agreement.. 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. 1 D. 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. 2A. The term of this Agreement shall be perpetual. Any served Party may terminate this agreement as between that Party and all other Parties by delivering written notice to the other Parties not less than 5 years prior so as to allow the Parties to reconfigure the supply, storage and distribution system serving the remaining Parties to accommodate any division of assets that may result from such termination. 2B. 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 30 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 to allow that Party to arrange Tigard Water Supply Agreement 2nd Draft 12/9/09 Page 2 for a replacement water source and supply system with Tigard or with another supplier. 2C. Tigard agrees to negotiate in good faith a wholesale water supply contract with a terminating Party on that Party's request. 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 who resides in the service area 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 act on behalf of 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. 5A. The IWB shall schedule regular meetings 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) members present and voting except where this Agreement provides a different voting requirement. 5B. 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 Water Supply Agreement 2"d Draft 1219109 Page 3 Tigard and shall have no voting privileges. Tigard shall provide adequate facilities and equipment for use for all IWB meetings. 5C. Tigard shall provide for at least one public meeting to be held annually between and among the Tigard City Council and the governing bodies of the served Parties on matters relating to the water supply system. 6. Jurisdiction of IWB. 6A. The IWB shall hear and by majority vote of the members may advise the Tigard City Council on the following issues: 1) 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; 2) Operation and maintenance issues referred to the IWB by Tigard or that a majority of the IWB raise on the IWB's own motion: 3) 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: 4) Billing methods and customer account management, including any contracts with third Parties for meter reading; 5) Capital improvements not listed or scheduled in a capital improvements plan that is adopted as part of Tigard's annual budget for the system; 6) 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; 7) Any and all rules and regulations issued by Tigard as to the use of the water system. 66. 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: 1) 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; 2) The issuance of municipal revenue bonds to finance capital improvements to serve any new service area or new extra-territorial customer; 3) A contract or partnership with a water source other than a mutual aid or similar emergency supply agreement; 4) 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; 5) 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; 6) 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 Tigard Water Supply Agreement 2"d Draft 12/9/09 Page 4 repayment is secured by a lien or other encumbrance on system assets. 7) 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. 6C. In all cases where an action taken by the lWB shall be advisory to Tigard the City of Tigard shall address and consider the Board's recommendation when taking action or a position on the matter. In all cases where an action by the IWB is final and binding on Tigard, no Party shall unreasonably withhold its consent to such action. 7. Ownership and Valuation of Assets. 7A. 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. 7113. 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. 7C. 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 II. 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. 7D. 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 Tigard Water Supply Agreement 2"d Draft 12/9/09 Page 5 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]. 7E. 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. 7F. 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. 7G.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. 8. Division of Assets on Termination or Dissolution. 8A. Upon termination of this Agreement, the Parties shall divide assets using the same procedures as are set out in ORS 222.540 for partial withdrawals of territory from a water district upon annexation to a city. Add provisions for assumption of debt by terminating party allocated to area withdrawn from the service area. 8B. 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. 8C. 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 Tigard Water Supply Agreement 2"d Draft 12/9/09 Page 6 by payment of a sum equal to the Jurisdiction's Proportionate Interest in the depreciated value of such system asset. 8D. 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, 9. Accounting and Records. 9A. 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. 9113. 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. 9C. 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. 10. 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. Tigard Water Supply Agreement 2"d Draft 12/9/09 Page 7 11. 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. 12. Severability. If any portion of this Agreement is for any reason held to be invalid or unconstitutional by a court of competent jurisdiction, all remaining portions of this Agreement shall remain in effect until this Agreement is terminated or expired. After any declaration of invalidity or unconstitutionality of a portion of this Franchise, any Party may demand that one or more other Parties meet to discuss amending the terms of this Agreement to conform to the original intent of the Parties. If the Parties are unable to agree on a revised agreement within ninety (90) days after such a court decision is final and binding, any Party whose rights and obligations are affected by the decision shall have cause to terminate this Agreement by delivering one hundred and eighty (180) days notice to the other Party. Tigard Water Supply Agreement 2"d Draft 1219109 Page 8 JORDAN SCHRADERPC ATTORNEYS AT L A W Jordan Schrader Ramis PC Phone: (503)598-7070 PO Box 230669 Toll Free: (888)598-7070 Portland OR 97281 Fax: (503)598-7373 w w w.j ordanschrader.c o m LEGAL MEMORANDUM TO: Dennis Koellermeier FROM: Cynthia L. Phillips DATE: December 9, 2009 RE: Voting Issues for Representatives of the Intergovernmental Water Board I have been asked to determine whether a representative to the Intergovernmental Water Board ("IWB") from the Tigard Water District ("TWD") is precluded from being able to vote independently; that is: they are required to take issues back to their Board,have the TWD Board deliberate on the issue, and then return to the IWB and vote consistently with the decision of the majority of the TWD board. My research shows that, as a voting member of the IWB, the representatives from the jurisdictions have the ability to vote on all matters before the IWB, so long as the issue is not one which requires a decision by the governing body. In other words,the representatives which make up the IWB are able to vote on most issues before the IWB without first ascertaining the majority opinion of the underlying governing body. While it is generally true that a member of a public body cannot bind the public body to a decision unless the matter is voted on by a quorum in a public meeting(see, for example, the admonition on page 1 of the Tigard Water District General Qualifications, Duties and Responsibilities of Board Commissioners, dated February of 1990, which says "Board members should [r]ecognize that an individual member has no legal status to act for the Board outside an official meeting,"appointed delegates have the ability to represent the public body appointing them to such position by voting on matters properly before the board to which they were appointed. In 1993, the TWD elected to "share authority for decision-making regarding the long-term water supply and capital improvement planning to serve present and future water customers of the original District"by approving an Intergovernmental Agreement creating the IWB ("IGA"). The Mission Statement of the IGA recites that the Parties, which includes the TWD, "commit to working together to provide all of the residents and undeveloped property in the original district with a clean, economical water supply. The Parties further commit to working together and with other agencies and jurisdictions in a cooperative effort to plan for the future long-term water supply needs of the area." To effectuate this Mission Statement, the IGA creates the 1 50014-36791 Memo IWB 0pinionVan11219/2009 IWB. The IWB consists of one member each from Tigard, Durham, King City, the District and an at large member. The IWB is charged with the responsibility to make recommendations to the City of Tigard with respect to nine separate items involved with water service and has the ability to grant variances as provided in Section 3 F of the IGA. Clearly, the representatives, being members of the Board of the IWB, have the ability to make decisions. In appointing a representative, the TWD has delegated to its representative the ability to perform the functions of a member of the IWB, to wit: making decisions on matters delegated to the IWB by the IGA. This conclusion is further underscored by the fact that there are some decisions which must be made by the governing bodies of the various jurisdictions. For instance, "the capital improvement program has to be approved by the governing bodies of at least one less than the number of jurisdictions holding an ownership interest in the water system," See section 5 D (1)(b) of the IGA. See also, the provision that long term water supply contracts must be approved by the governing bodies and the provision that amendment of the IGA must be approved by the governing bodies of the City of Tigard and the TWD, in sections 5 E and 15, respectively. If decisions of the IWB could only be made by the governing bodies of the Parties, the IGA would so state. 2 50014-36792 Memo IWB OpinionUmII2/9/2009 City of Tigard 13125 SW Hall Blvd. Tigard, OR 97223 0i Phone: 503-639-4171 TIGARD FAX TRANSMITTAL Date December 4, 2009 Number of pages including cover sheet 3 To:: 15 The City of King City(Fax No. 503-639-3771) dThe 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 Agenda MESSAGE: Please post the attached agenda for the upcoming meeting of the Intergovernmental Water Board. Thank you. hENGTAKDOT hp officejet 4200 series 4215 Personal Printer/Fax/Copier/Scanner Log for City of Tigard PW 5036848840 12!4!2009 12: 33PM Last Transaction Date Time Type Identification Duration Pages Result 12/04 12: 32p Fax Sent 5036393771 0 : 52 3 OK hp J office 'et 4200 series 4215 Personal Printer/Fax/Co ier/Scanner P Log ,for. City of Tigard PW 5036848840 12/4/2009 12: 34PM Last Transaction Date Time Type Identification Duration Pages Result 12/04 12: 33p Fax Sent 5035988595 0: 35 3 OK