Resolution No. 18-19 CITY OF TIGARD, OREGON
TIGARD CITY COUNCIL
RESOLUTION NO. 18- �1
A RESOLUTION ADOPTING AN AGREEMENT FOR TEMPORARY WATER SUPPLY BETWEEN
THE TUALATIN VALLEY WATER DISTRICT, THE CITY OF HILLSBORO AND THE CITY OF
TIGARD.
WHEREAS,ORS 190 authorizes units of local government to enter into intergovernmental agreements for the
performance of any or all functions and activities that a Party to the Agreement has the authority to perform;
and
WHEREAS,Tualatin Valley Water District (TVWD) and Hillsboro have agreed to construct the Roy Rogers
Road Waterline Project from the Urban Growth Boundary approximately 2,600 feet north of Southwest Beef
Bend Road to Southwest Scholls Ferry Road (Project), which will be part of the Willamette Water Supply
System (WWSS) providing municipal drinking water from the Willamette River to their respective water
systems;and
WHEREAS,the Project will be built as part of Washington County's Roy Rogers Road Project for roadway and
waterline improvements,which will commence on Southwest Roy Rogers Road approximately 2,600-ft north
of Southwest Beef Bend Road to the intersection of Southwest Scholls Ferry Road;and
WHEREAS,the Project is a section of the WWSS transmission pipeline from Wilsonville to TVWD and
Hillsboro,which will be constructed,yet not placed into service until approximately 2026,when construction of
the remainder of the WWSS components are completed;and
WHEREAS, the Project will need a temporary potable water connection between the Project and Tigard's
water system for the purposes of testing and maintaining the Project;and
WHEREAS, the temporary potable water connection will no longer be needed by TVWD and Hillsboro once
construction of the WWSS is complete and the WWSS begins water service to TVWD and Hillsboro;and
WHEREAS, Tigard may wish to construct additional improvements to make a permanent emergency
connection to the WWSS with a flow capacity of five (5) million gallons per day (MGD),which will require a
separate agreement between the Parties prior to use;and
WHEREAS, Tigard will review utility and development plans to ensure utilities accommodate the Project in
Tigard's right of way and allow for connection to Tigard's water system.
NOW,THEREFORE,BE IT RESOLVED by the Tigard City Council that:
SECTION 1: City Council approves the agreement for temporary water supply between the Tualatin
Valley Water District,the City of Hillsboro,and the City of Tigard,in substantially the form
attached hereto as Exhibit"A."
SECTION This resolution is effective immediately upon passage.
RESOLUTION NO. 18-j
Page 1
PASSED:, This+4day of 24,&i 2018.
UV4
Mayor ity of Tigard
ATTEST:
City Recorder-City of Tigard
RESOLUTION NO. 18- J
Page 2
INTERGOVERNMENTAL AGREEMENT
BETWEEN
TUALATIN VALLEY WATER DISTRICT, THE CITY OF HILLSBORO,
AND THE CITY OF TIGARD
FOR TEMPORARY WATER SUPPLY
This Intergovernmental Agreement(Agreement) is entered into between the Tualatin Valley Water
District, a domestic water supply district organized under ORS Chapter 264 (TVWD),the City of Hillsboro,
an Oregon municipal corporation (Hillsboro),and the City of Tigard,an Oregon municipal corporation
(Tigard),each also referred to as"Party"or collectively as "Parties."
RECITALS
A. WHEREAS, ORS 190 authorizes units of local government to enter into intergovernmental
agreements for the performance of any or all functions and activities that a Party to the Agreement
has the authority to perform;and
B. WHEREAS,TVWD and Hillsboro have agreed to construct the Roy Rogers Road Waterline Project
from the Urban Growth Boundary approximately 2,600-ft north of Southwest Beef Bend Road to
Southwest Scholls Ferry Road (Project),which will be part of the Willamette Water Supply System
(WWSS) providing municipal drinking water from the Willamette River to their respective water
systems; and
C. WHEREAS,the Project will be built as part of Washington County's Roy Rogers Road Project(Road
Project)for roadway and waterline improvements,which will commence on Southwest Roy Rogers
Road approximately 2,600-ft north of Southwest Beef Bend Road to the intersection of Southwest
Scholls Ferry Road;and
D. WHEREAS,the Project is a section of the WWSS transmission pipeline from Wilsonville to TVWD and
Hillsboro,which will be constructed,yet not placed into service until approximately 2026,when
construction of the remainder of the WWSS components are completed; and
E. WHEREAS,the Project will need a temporary potable water connection between the Project and
Tigard's water system for the purposes of testing and maintaining the Project;and
F. WHEREAS,the temporary potable water connection will no longer be needed by TVWD and
Hillsboro once construction of the WWSS is complete and the WWSS begins water service to TVWD
and Hillsboro;and
G. WHEREAS,Tigard may wish to construct additional improvements to make a permanent emergency
connection to the WWSS with a flow capacity of five (5) million gallons per day(MGD),which will
require a separate agreement between the Parties prior to use; and
H. WHEREAS,Tigard will review utility and development plans to ensure utilities accommodate the
Project in Tigard's right of way and allow for connection to Tigard's water system;and
Page 1 of 10
I. WHEREAS,TVWD, as the Managing Agency of the WWSS Project, is responsible for receiving
payments from Tigard for upsizing and paying Tigard invoices for pipeline construction water use.
AGREEMENT
NOW,THEREFORE, in consideration of the terms, conditions, and covenants set forth below, and the
Recitals which are incorporated into this Agreement as if fully set forth herein,the Parties agree as
follows:
ARTICLE 1 - Project Description
1.1. The Parties agree that TVWD and Hillsboro may design and construct a temporary six-
inch connection between the Tigard water distribution system and the Project within
the City of Tigard at such location as the Parties mutually agree, shown on Exhibit A. The
point of connection shall be in a public right of way and the Parties agree that Tigard,
TVWD, and Hillsboro shall have full and complete access at all times to operate and
maintain the valves,vaults, and appurtenances.The TVWD and Hillsboro design will
provide for a future permanent emergency connection with a capacity of 5 million
gallons per day(MGD) near Friendly Lane so that Tigard can obtain future emergency
water supply for its water system from the Project.The size of the emergency
connection is anticipated to be 12-inch diameter to provide the desired 5 MGD flow
capacity.
1.2. In accordance with the allocation of costs and Tigard's portion to be paid under Article
2.1.5 below,TVWD and Hillsboro will include in their design the following improvements
as part of the Project:
1.2.1. An emergency connection at the Project which will connect to Tigard's 18-inch
transmission line at a mutually agreeable location near Friendly Lane.
1.2.2. One temporary connection will be made between the Project and Tigard's
system using 12-inch piping,fittings, isolation valves, a six-inch back flow device,
and six-inch flow meter for the purposes of filling and testing the pipeline, as
shown in Exhibit A.
ARTICLE 2 - Cost
2.1. The cost allocation of this portion of the Project will be determined according to the
percentage split as shown in Exhibit B and as described in 2.1.4 below,the total cost of
which will be finalized once construction is complete. Generally,the cost of this portion
of the Project will be determined as follows:
2.1.1. TVWD and Hillsboro will be solely responsible for all costs to design, construct,
operate, maintain, repair, and replace one temporary connection for testing and
maintenance of the Project until the entire WWSS is completed and water is
produced and delivered from the WWSS.
2.1.2. Tigard will be solely responsible for all costs to upsize the temporary connection
for the purpose of a future 5 MGD permanent emergency connection near
Friendly Lane.
Page 2 of 10
2.1.3. The design of the 5 MGD permanent emergency connection shall be compatible
with and provide for interoperability so that TVWD and Hillsboro may use the
temporary connection as described in this Agreement, including filling,testing,
and maintaining the Project.The TVWD and Hillsboro design consultant has
provided an engineer's estimate to construct the six-inch temporary connection
to periodically draw testing and maintenance water from Tigard for use in
sections of the WWSS,which is "Cost A."The design consultant has provided an
engineer's estimate for the additional cost of upsizing the temporary six-inch
connection to a full 12-inch connection compatible with the future 5 MGD
permanent emergency connection,the cost of which includes the cost of the
meter and control vaults,which is "Cost B." Future costs for designing and
constructing the full 5 MGD permanent emergency connection will be the sole
responsibility of Tigard and shall be included as part of a future Emergency
Water Supply IGA.
2.1.4. The proportion of Cost A attributable to the temporary connection to Cost B
(i.e., Cost A divided by[Cost A+Cost B] x 100=Cost A percentage) results in
68% of the cost of the connection to be covered by TVWD and Hillsboro.The
remaining proportion (32%)will be covered by Tigard.The total cost to be paid
by Tigard will be the percentage set forth in this paragraph and will be based on
the final amount paid to the contractor for the work performed (including
original bid amount,construction change orders, and associated construction
administration costs).The cost split and anticipated cost to each party is shown
in Exhibit B.
2.1.5. TVWD and Hillsboro will bid the work described in Article 1 to establish the
construction cost of that work. If Tigard successfully negotiates an agreement
for a future emergency connection,Tigard will be responsible for the full cost of
additional design, management,and construction of the full build-out of the
emergency connection.
2.1.6. Tigard will be billed its percentage allocation for any and all costs to upsize the
temporary connection (32%of the total cost of the connection) as costs are
billed by the designer and contractor to TVWD. The total cost to upsize the
temporary connection for the work described in Article 1 includes design,
construction costs, construction contract change orders, plus any associated
administration costs with the work, as set forth in Article 2.1.4. Payment will be
due and payable to TVWD within thirty(30)days of the invoice.
2.1.7. TVWD and Hillsboro will notify Tigard of any potential construction contract
change orders that may affect Tigard's cost for the connection construction at
the earliest possible time after TVWD and Hillsboro receive notice from
Washington County.TVWD and Hillsboro will endeavor to avoid or minimize
change order requests from Washington County that affect Tigard. If Tigard
does not approve the change order that increases Tigard's cost,the Parties
recognize that Washington County, in its sole discretion or with approval by
TVWD and Hillsboro, may still approve the change order and, in such case,
TVWD and Hillsboro will be responsible to pay the change order amount,
provided, however,that TVWD and Hillsboro may seek contribution from Tigard
Page 3 of 10
for Tigard's proportional share (32% of contract change orders and associated
construction administration costs), and the Parties reserve all rights as to
responsibility for payment and agree to resolve the matter through dispute
resolution.
ARTICLE 3 - System Connections and Operation Protocols
3.1. Following construction, each Party shall appoint a representative to coordinate the use,
operation,maintenance, repair, and replacement of the connection and valves
according to prudent utility practices.
3.2. The TVWD/Hillsboro temporary connection installed as part of the Project construction
will include two installed 12-inch isolation valves,a six-inch flow meter, and a six-inch
approved backflow prevention device that will connect to the Tigard system. Both
isolation valves will remain closed to the Tigard system except for those periods when
water from Tigard will be used to test and maintain the Project and WWSS.
3.3. The Parties will be responsible for and maintain control of separate valves,vaults,and
appurtenances, including all costs associated therewith as defined here. Responsibility
will be as shown in Exhibit A with the piping from the WWSS main pipeline to the meter
vault,and the valve separating the two vaults being the joint responsibility of TVWD and
Hillsboro.The remaining portion from that valve,through and including the pressure
regulating/control valve and vault to the point of connection with Tigard's system will
be the responsibility of Tigard.
3.4. All Parties agree to maintain their portion of the connection in good working order so
that they are available to be put in service when a water draw is needed.
3.5. The TVWD and Hillsboro representative will develop a schedule for Project water
requirements and provide it to the Tigard representative for review and approval so
Tigard will have sufficient notice (minimum 48 hours)of when TVWD and Hillsboro will
need to draw water from the Tigard system. The project schedule should be updated
and provided to Tigard on a weekly basis during the project construction period.
3.6. The flow from the Tigard system shall be limited to no more than 700 gallons per minute
without prior authorization from Tigard, and Tigard will maintain control and operate all
valves which are part of the Tigard system.Tigard requires 48-hours' notification for the
operation of valves.
ARTICLE 4- Term
4.1. The term of this Agreement and use of water by TVWD and Hillsboro shall continue until
construction of the WWSS is complete and begins potable water delivery service to
TWVD and Hillsboro,which is anticipated to occur in 2026.This Agreement shall
automatically terminate when both: (a)the WWSS is complete; and (b)the WWSS
begins potable water delivery service to TVWD and Hillsboro. Upon termination under
this section,and if Tigard does not wish to have the permanent emergency connection
as described in this Agreement,then TVWD and Hillsboro will remove the temporary
connection and cost splits for the removal of the connection will be as defined in 2.1.4.
Page 4 of 10
ARTICLE 5 - Future Tigard Agreement
5.1. This Agreement confers no rights or privileges upon Tigard to the WWSS,to the Project,
or to any water through or from the WWSS. If Tigard desires a permanent 5 MGD
emergency connection to the WWSS,then Tigard must negotiate and seek approval for
a separate agreement regarding construction, connection, metering, and use of WWSS
water for the permanent emergency connection.TVWD and Hillsboro will not provide
WWSS water to Tigard in the absence of such an agreement.The permanent emergency
connection shall be the sole cost responsibility of Tigard, including any and all costs of
making the conversion to a permanent connection, including, but not limited to,a
seismic valve, electrical,SCADA,flow control devices,and a meter to measure usage.
ARTICLE 6- Construction Coordination
6.1. The design and construction of the items in this Agreement will be conducted as part of
the Project and the Road Project.The Parties will coordinate with each other during the
design and construction to provide for minimal inconvenience to each other.The Parties
will each conduct review and approval of construction submittals at no charge to the
other Parties.TVWD and Hillsboro will coordinate with Tigard on the inspection of the
facilities associated with the connection.
ARTICLE 7 - Fiscal and Operational Impacts and Use of Water
7.1. The Parties agree to work together to determine how best to provide the water to fulfill
the need to test and maintain the sections of the Project. When temporary water is
required ("water draw"),TVWD and Hillsboro will notify Tigard (48-hour notification)to
coordinate the timing, method, and conditions for drawing water into the WWSS from
Tigard.The water will be sold by Tigard to TVWD and Hillsboro as outlined in Article 8.
The Parties agree that they will hold harmless and indemnify each other from adverse
fiscal or operational impacts as a direct result of this Agreement.
ARTICLE 8 - Cost of Water and Payment
8.1. Following the sale by Tigard after a water draw under this agreement,Tigard will read
the meter and determine the quantity supplied.
8.1.1. Tigard will sell water to TVWD and Hillsboro, and the cost of the water shall be
charged for the actual water used at the Tier One residential rate or a rate that
is at or below the approved residential customer class rate adopted by Tigard.
Recognizing the temporary and sporadic nature of the need,there will be no
system delivery charge, system development charge,connection fee,or other
fixed charge associated with this use.
8.1.2. The cost of water, as determined under Article 8.1.1,will be billed by Tigard to
TVWD and Hillsboro and payable within thirty(30)days of invoice.
ARTICLE 9 - Indemnity
9.1. Each Party agrees to indemnify and hold harmless the other Party(ies), its officers,
employees,and agents from and against all claims,demands, and causes of actions and
suits of any kind or nature for personal injury, death,or damage to property on account
of or arising out of services performed or the omissions of services, or in any way
Page 5 of 10
resulting from the negligent or wrongful acts or omissions of the indemnifying Party and
its officers,employees, and agents. To the extent applicable,the above indemnification
is subject to and shall not exceed the limits of liability of the Oregon Tort Claims Act
(ORS 30.260 through 30.300). Notwithstanding the foregoing,each Party shall be solely
responsible for any contract claims, delay damages, permit compliance, permit
violations, or similar items to the extent arising from or caused by the action or inaction
of the Party under this Agreement.
ARTICLE 10 - General Provisions
10.1. Notices.Any notices regarding operation, maintenance, repair, replacement, breach,
termination,or other issues shall be deemed sufficient if deposited in the United States
Mail, First Class, postage prepaid, addressed to the Parties as follows:
To TVWD: To Hillsboro:
Tualatin Valley Water District City of Hillsboro
Attn: Chief Executive Officer Attn:Water Director
1850 SW 170th Avenue 150 East Main Street
Beaverton, OR 97003 Hillsboro,OR 97123
To Tigard:
City of Tigard
Attn: City Manager
13125 SW Hall Blvd.
Tigard, OR 97223
10.2. Dispute Resolution.The Parties hereby agree that resolution of any and all disputes
arising out of the terms of this Agreement or interpretation thereof shall follow a
prescribed process beginning with negotiation and subsequently moving to mediation,
provided the dispute remains unresolved. If the interests of TVWD and Hillsboro are
aligned on a dispute with Tigard,TVWD and Hillsboro shall be deemed a single Party for
purposes of dispute resolution. If a dispute arises between the Parties regarding this
Agreement,the Panties shall follow the dispute resolution provisions below:
10.2.1. Written Notice.A written notice regarding the dispute (Dispute Notice)shall be
sent to the other Parties.
10.2.2. Negotiations. Within thirty(30) days following receipt of the Dispute Notice,the
Parties to the dispute ("Disputing Parties") shall each assign a representative to
participate in good faith negotiations for a period not to exceed sixty(60) days
after appointment of the representatives.
10.2.3. Mediation. If,after the sixty(60)day period of negotiation (or a period not to
exceed ninety(90)days following the receipt date of the Dispute Notice),the
dispute(s) cannot be resolved,the Disputing Parties agree to submit the matter
to non-binding mediation.The Disputing Parties shall attempt to agree on a
mediator in a period not to exceed one hundred twenty(120)days following the
receipt date of the Dispute Notice and proceed accordingly.
Page 6 of 10
10.2.4. Litigation. If the Parties cannot agree on a mediator within the allocated time,
or if the mediator cannot resolve the dispute(s)within one hundred eighty(180)
days following the receipt date of the Dispute Notice,either of the Disputing
Parties may file suit in a court of competent jurisdiction. Each of the Disputing
Parties shall bear its own attorneys'fees and expert witness fees at all stages of
the dispute resolution process, including at trial or in any appeals. In addition,
nothing shall prevent the Disputing Parties from waiving any of the dispute
resolution steps by mutual consent.
10.3. Default.The failure of a Party to perform any duty imposed upon it by this Agreement
shall constitute a default.
10.3.1. Notice of Default.The non-defaulting Party shall have the right to give the
defaulting Party a written notice of default,which shall describe the default in
reasonable detail and state the day by which the default must be cured,which
date shall be at least ten (10) days after receipt of the notice of default.
10.3.2. Rights Upon Default. Recognizing time is of the essence, a defaulting Party shall
have ten (10) days to cure a default,following written notice thereof, unless
cure within such ten (10) day period is not reasonably possible; in that case,the
period to cure the default shall be extended to thirty(30)days,or such other
time that the non-defaulting Party is willing to agree to,provided that the
defaulting Party has diligently begun to work, in good faith,to cure the default
within the original prescribed ten (10) day period. In addition,the non-
defaulting Party may pursue any other remedy available at law or in equity
against the defaulting Party,subject to the dispute resolution procedures set
forth in Article 10.2.
10.4. Termination.Any Party may terminate this Agreement under any of the following
conditions:
10.4.1. For breach of a material term of this Agreement,after written notice under
Section 10.3.1 and failure to cure under Section 10.3.2.
10.4.2. By mutual written agreement of all Parties to terminate for convenience.
10.5. Excused Performance. No party shall be deemed to be in default where delays or
default is due to war, insurrection, strikes,walkouts, riots,floods, drought,earthquakes,
fires,casualties,acts of God,governmental restrictions imposed or mandated by
governmental entities other than the parties,acts of conflicting state or federal laws or
regulations, new or supplementary environmental regulation, litigation or similar bases
for excused performance that are not within the reasonable control of the Party to be
excused.
10.6. Effective Date.This Agreement is effective on the last date signed by the Parties below
and remains in effect until terminated as provided herein.
10.7. Integration.This Agreement, including all exhibits attached hereto,contains the entire
and integrated agreement between the Parties and supersedes all prior written or oral
discussions, representations,or agreements. In case of conflict among these documents,
the provisions of this Agreement shall control.
Page 7 of 10
10.8. Assignment/Additional Parties.TVWD and Hillsboro may create further
Intergovernmental Agreement(s) between them as well as with other municipal water
suppliers that may own or use the Project and the WWSS. Tigard agrees to assignment
of the rights,obligations, and covenants of this Agreement to include those municipal
water suppliers individually, along with TVWD and Hillsboro,or to assign rights,
obligations, and covenants of this Agreement to a successor intergovernmental entity
formed by TVWD and Hillsboro under ORS Chapter 190.
10.9. Adherence to Law.The Parties shall adhere to all applicable federal,state,and local
laws.Any certificates, licenses, or permits that are required by law to be obtained or
maintained in order to perform any work described in this Agreement shall be obtained
and maintained throughout the term of this Agreement.
10.10. Governing Law.This Agreement is governed by the laws of the State of Oregon.Venue
for any litigation shall be in Washington County,Oregon.
10.11. Nonwaiver. Failure by any Party at any time to require performance by any other Party
of any of the provisions of this Agreement shall in no way affect the Party's rights
hereunder to enforce the same, nor shall any waiver by the Party of the breach hereof
be held to be a waiver of any succeeding breach or a waiver of this nonwaiver clause.
10.12. Severability. In case any one or more of the provisions contained in this Agreement shall
be judicially deemed invalid, illegal, or unenforceable in any respect,the validity,
legality, and enforceability of the remaining provisions contained herein shall not in any
way be affected or impaired thereby.
10.13. Amendment.The terms of this Agreement may be amended or supplemented by
mutual agreement of the Parties.Any amendment or supplement shall be in writing,
shall refer specifically to this Agreement,and shall be executed by the Parties.
10.14. Survival Terms and Conditions.The provisions of this Agreement shall survive their
termination to the full extent necessary for their enforcement and the protection of the
Party in whose favor they run.
10.15. Time of the Essence.Time is expressly made of the essence in the performance of this
Agreement.
10.16. Number,Gender,and Captions. In construing this Agreement, it is understood that, if
the context so requires,the singular pronoun shall be taken to mean and include the
plural,the masculine,the feminine,and the neuter, and that,generally, all grammatical
changes shall be made,assumed, and implied to individuals and/or corporations and
partnerships.All captions and paragraph headings used herein are intended solely for
convenience of reference and shall in no way limit any of the provisions of this
Agreement.
10.17. Good Faith and Cooperation.The Parties agree and represent to each other good faith,
cooperation, and due diligence in the performance of all obligations of the Parties
pursuant to this Agreement.
10.18. Interpretation.This Agreement shall be deemed and construed to have been prepared
mutually by each Party, and it shall be expressly agreed that any uncertainty or
ambiguity existing therein shall not be construed against any Party.
Page 8 of 10
10.19. Counterparts.This Agreement may be signed in one or more counterparts,each of
which shall be deemed an original and,when taken together,shall constitute one and
the same agreement.
10.20. Authority. Each person signing on behalf of a Party hereby warrants actual authority to
bind his/her respective Party.
10.21. Access to Books, Records,and Accounting.TVWD and Hillsboro shall maintain books,
records,and reports regarding the connection to the Project showing all income,
receipts,expenses,and costs.These records shall be maintained for a period of three (3)
years following final completion of the Project.All such books, records, and reports may
be examined,and copies made by Tigard staff at reasonable times upon reasonable
notice.
10.22. No Third-Party Beneficiary. Nothing in this Agreement shall be construed to create any
duty to, any standard of care with reference to, or any liability to any person not a Panty
to this Agreement.There shall be no express or implied third-party beneficiary of this
Agreement. No entity or person, other than the Parties, shall have the right to enforce
any right under this Agreement.
Page 9 of 10
IN WITNESS WHEREOF, the Parties hereto have set their hands as of the day and year
hereinafter written.
CITY OF TIGARD, OREGON TUALATIN VALLEY WATER DISTRICT
By CHIEF EXECUTIVE OFFICER
Date Date
Approved as to Form Approved as to Form
CITY OF HILLSBORO, OREGON
By
Date
Approved as to Form
Page 10 of 10
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